EuropeAid 1 ITUC Conference on “Development is Social Justice – Trade Unions for Decent Work” October 2009 Koos Richelle Director General EuropeAid Cooperation Office Runö, Stockholm, 13 October 2009

EuropeAid 2 1 The EU development aid context

EuropeAid 3 EC response: the policy framework 2000 UN 8 Millennium Development Goals, fixing poverty reduction objectives for OECD Paris Declaration, 60 recipients and 50 donors on aid effectiveness 2005 European Consensus, the EU development policy, tying Member States and Commission 2007 EU Code on Division of Labour 2008 Accra High Level Forum on aid effectiveness 2008 Doha Conference on financing for development.

EuropeAid 4 EU & EC aid implementation EU the largest donor in the world donors together responsible for 60% of all development aid (2008: 48,6 billion) USA provides 22% European Commission on its own: Second largest donor of humanitarian aid Third largest donor of development aid (11%, after USA and Germany) Present in aprox. 140 countries Based on OECD/DAC preliminary figures 2009

EuropeAid 5 The EC and the external aid budget 2008 Commission budget inside EU: €124 bn (91%) External aid: €12.8 bn (9%) EuropeAid EDF fund: €4.8 bn (37%) EuropeAid Budget: €4.6 bn (37%) Non-EuropeAid Budget: €3.3 bn (26%) EuropeAid implements external assistance. This excludes pre-accession aid, humanitarian aid, and Common Foreign and Security Policy (CFSP) aid. EC total budget includes European Development Fund (EDF). NB – 2008 provisional figures (April 09)

EuropeAid 6 Official Development Assistance Percentage of Gross National Income: actual 2008, forecast 2010, objective Source: OECD DAC where available. EC data base on MS information to the EC or the DAC for EU DAC Average: 0.42% in 2008 compared with 0.38% in 2007

EuropeAid 7 2 Towards delivering more & better aid

EuropeAid 8 Paid out in 2008: €7 billion Record year for project implementation EDF Budget

EuropeAid 9 Geographic distribution of funds EuropeAid spending per region, ODA and OA, ACP including South Africa and Bananas

EuropeAid 10 Distribution of funds by horizontal programme * Thematic programmes include: non-state actors & local authorities, investing in people, gender, environment, migration and food security

EuropeAid 11 3 More means than only aid…

EuropeAid 12 Trade and remittances EU’s import in 2008 from Developing Countries amounts to € 890 billion and from Least Developed Countries to € 25 billion; Recorded remittances of migrant labour force amounted to $380 billion in 2008 worldwide; Unrecorded remittances adds up additional 50% to recorded remittances (WB source); Home countries would benefit both from ‘Brain Gain’ and conversion of remittances into productive businesses;

EuropeAid EU trade policies for development EU’s Aid for Trade Strategy (2007) with a pro- poor focus of the assistance (€3,109 million/2007) ‘Classical’ Trade Related Assistance (€1,005 million / 2007) Improve developing countries' integration into the world trading system with a comprehensive view to poverty reduction; Generalised System of Preferences (GSP) trade agreements, reduced tariffs (GSP+ is conditioned on adoption of core labour standards); 13

EuropeAid 14 Governance in the European Consensus on Development, EC Communication, 2006 Governance is a priority in donors’ development policies and aid; Capacity building to support democratisation processes, accountability, transparency, etc. in partner countries; Enhancing ownership and dialogue with economic and social actors; Democratic & Good Governance

EuropeAid EU’s added value - protecting the vulnerable Increased need for greater attention in development cooperation towards the systems of Solidarity Social protection & safety nets Social dialogue The EU has an added value and vast experience to give inspirations to our partners in these fields. 15

EuropeAid EC aid to promote decent work € 1.9 billion support to DW related programmes over via bilateral and thematic aid programmes; (Investing in People) Support provided to the development and implementation of home-grown sector-wide reforms in partner countries; EC supported reforms cover social protection systems, safety nets, skills development /vocational training systems, employment services, etc.; 16

EuropeAid 17 4 Role of Civil Society & Social Partners

EuropeAid 18 Accra Action Plan 2008 ► agenda extended to the civil society organisations (CSOs) o CSOs are invited to examine how they can contribute to the Aid Effectiveness, reflecting on their specific added-value in development cooperation; o Working towards an “enabling environment” for CSOs; Role of the CSOs

EuropeAid CSOs initiatives in the « post-Accra » Open Forum on CSO Development Effectiveness International CSO-driven process to define a global development effectiveness framework applicable to civil society organisations. Better Aid: International CSO-driven process to contribute to the effective implementation of the Paris Declaration and AAA: monitoring of donors, watchdog, etc. Activities: Organisation of national & regional CSO consultations; Global Assembly in 2010 and 2011 to finalise consensus building in view of the 4th High Level Forum (Seoul 2011). 19

EuropeAid Social partners in development co-operation Distinguished role of social partners in the Acquis Communitaire of the EU as part of democratic governance; Social partners have strong influence on formulation of policy reforms; (see also Corporate Social Responsibility) Representation, credibility and legitimacy of the social partners are essential for effective and efficient social dialogue and thus for the acceptability of policy reforms & their implementation; 20

EuropeAid Social partners in development co-operation EC development assistance in partner countries covers inter alia the following aspects: Improved effectiveness of regulations, state administration, public finance systems and public services to promote decent work related measures; Promote social dialogue in direct and indirect manner (e.g. VET systems) and also within the frame of improved governance and rule of law; Provision of capacity building to social partners; Need for reinforcement of support and for increased demand from partner governments to support DW aspects 21

EuropeAid 22 5 Challenges & Priorities for the EC

EuropeAid Challenges & Priorities Challenges in the DW context: Empowerment of social partners to be able to fulfil their roles in sector policy design; Open up space for social and private sector actors/partners to participate in sector reform dialogues; EC supported Sector Programmes in partner countries to be considered as an entry points for developing social dialogue; 23

EuropeAid 24 Challenges & Priorities Aid effectiveness Deliver on the Accra Agenda for Action: use country systems: channel 50% of aid to public sector through country system in-country division of labour: implement now untying aid: elaborate plans to further untie aid conditionality: agree conditions based on national development strategies predictability: 3-5 yr forward info on expenditure transparency: regular public disclosure

EuropeAid Challenges & Priorities Better orientation towards results Positioning of development cooperation towards the new External Action Service (EAS) EU Budget revision 2014 – 2020 Define position towards Middle Income Countries 25

EuropeAid Challenges & Priorities Policy Coherence: need for coherence at EC level Contribution to Climate Change agenda Observe status of 0.7% contributions by MS Overview the implementation of EU policies on 2015 MDGs Relevance of ODA concept

EuropeAid 27 THANK YOU!