European Commission DG Development EC Response to Food Price Crisis Prague, February 2009 Marc Debois

European Commission DG Development EC Response to Food Price Crisis Two main lines:  Mitigate negative effects on poorest consumers. Assistance can take various forms:  Food assistance  Macro-economic assistance  Safety nets  Encourage agricultural supply response. Assistance a.o.:  Input provision  Supportive physical and institutional structure  Longer term: agricultural sector reforms, research etc.

European Commission DG Development Financial responses to ‘Food Price Crisis’ Several Instruments (short-medium response):  Humanitarian Instrument:  Upfront use of existing budget  Additional allocation of €140 million  FSTP  Re-allocations in 2008 → € 50 million  Allocated to 12 priority countries  10 th EDF, B-envelope  Mobilization of € 200 million  Allocated to 30 ACP countries  Mainly macro-economic response and urban safety nets  Food Facility  € 1 billion

European Commission DG Development Food Facility – Approval Process  18 July – Commission Proposal  4 December EP approval  16 December Council approval  31 December – Publication in OJ

European Commission DG Development Characteristics Food Facility (1) Aim:  rapid and direct response to the volatile food prices in developing countries, addressing primarily the period between emergency aid and long-term development cooperation. Primary objectives:  Encourage a positive supply response of the agricultural sector  Support activities to respond rapidly and directly to mitigate the negative effects of volatile food prices  Strengthen the productive capacities and the governance of the agricultural sector

European Commission DG Development Characteristics Food Facility (2) Eligible Measures:  Measures to improve access to agricultural inputs and services;  Safety net measures;  Other small-scale measures aiming at increasing production based on country needs: microcredit, investment, equipment, infrastructure and storage; as well as vocational training and support to professional groups in the agricultural sector. Eligible Entities:  DCI list of entities  ‘appropriate balance’ between IO/ROs and others

European Commission DG Development Commitment and Payment Appropriations (x € 1000) CommitmentsPayments Total1000

European Commission DG Development Programming (1) Overall Plan:  Coverage:  List of target countries  Indicative allocations  Indication of measures and eligible entities  Target dates:  Sent to DCI Committee 18/2  DCI Committee 3/3  Commission Decision 18/3

European Commission DG Development Programming (2) First set of Measures  Will precede overall plan (agreement EP-Council-Commission)  Coverage:  Measures for value of about € 315 million  23 countries  Only with IOs  Foreseen Timing:  Send to DCI Committee 2/2  DCI Committee meeting 17/2  Commission Decision 5/3

European Commission DG Development Programming (3) Second set of measures  Coverage:  Most of remaining countries  Most of remaining 2009 commitments  Mix of eligible entities  IOs/ROs  NSA + EU national agencies (call)  National Governments (incl. BS)  other  Timing: after overall plan agreement (March)

European Commission DG Development Programming (4) At later stage:  2009 – Some commitments through Regional Organisations  Commitments for 2010 budget (€ 170 million):  January 2010  Will need faster operations → where feasible budget support

European Commission DG Development Implementation (1) – General Aspects  AIDCO Task Force  Support to be concluded by end 2011 (incl. last payments)  Short-term activities  Distinct (first) phase of longer-term activities  Country/region-specific approach, following needs assessments and plans

European Commission DG Development Implementation (2) Monitoring  By implementing agencies  UN HLTF (central + country level)  EC:  Task Force + Delegations  Additional ROM exercise  Special Study 2009 Reporting  Interim Report on measures taken: December 2009  Annual Report on Development Cooperation  Final report – no later than 31 Dec. 2012