Development and Cooperation - EuropeAid Increasing the impact of EU Development Policy - An Agenda for Change – Nicoletta Merlo EuropeAid - Development and Cooperation European Commission

Development and Cooperation - EuropeAid A fast changing international context  Graduation: increased standards of living, 25 countries recently moved from category (LICs to LMICs or from LMICs to UMICs)  New actors : private sector, private foundations, emerging donors, local authorities;  Population growth : world population to reach 9.3bn by 2050; Africa fastest-growing continent  3 global crises: food prices, oil/energy prices volatility, economic and financial crisis  Economic downturn & budget constraints  ‘Arab spring’: importance of good governance and democracy, employment and growth, security-development nexus brought into sharper focus  Regional vulnerabilities & crises: Horn of Africa (drought/famine)  Strong growth but weak effect on poverty reduction – ref African Economic Outlook Report: : 5-6% real GDP /slowdown %– rebound - projection 5.8% in 2012

Development and Cooperation - EuropeAid Reflecting on the future of EU development policy Green Paper on “EU development policy in support of inclusive growth and sustainable development – Increasing the impact of EU development policy”- In parallel with: Green Paper on “The future of EU budget support to third countries” Public consultation on “What funding for EU external action after 2013?” - preparing the next Multiannual Financial Framework

Development and Cooperation - EuropeAid Policy priorities  The MDGs as a global development framework for measuring results  Good governance, democracy, human rights  Foundations for inclusive growth (e.g. social protection, health & education)  Drivers for growth and job creation (e.g. business environment, regional integration)  Sectors with strong multiplier impact and contributing to environmental protection + climate change prevention/adaptation : sustainable agriculture and efficient renewable energy

Development and Cooperation - EuropeAid Main principles Concentration : focus on maximum 3 sectors Differentiation : –Target resources where they are needed and where they have greatest impact  Allocation of EU development assistance according to partner countries' needs, capacities, commitments and performance, as well as the potential EU impact  Supporting development in the Neighbourhood and Sub-Saharan Africa, as well as in fragile countries –Need for other types of cooperation and new partnerships with more advanced developing countries  Diversify aid modalities and develop other types of cooperation (e.g. loan-grant blending, technical coop, twinnings, etc.)  Development partnership based on mutual interests with emerging economies and strategic partners Joint programming

Development and Cooperation - EuropeAid Civil society and local authorities in the Agenda for Change Importance of civil society organisations (CSOs) and local authorities (LAs) reaffirmed. The EU should «work more closely » with these actors (part 1) Focus on human rights, democracy and good governance –Political and policy dialogue with all stakeholders –In cases where a country loosen its commitment to human rights and democracy, strengthened cooperation with Non State Actors/LAs Dialogue with civil society and local authorities : built on results of the structured dialogue (for instance, importance of supporting an organised local civil society, finding ways to mobilising LA ’ s expertise … ). Role of CSOs and LA in inclusive growth, agriculture and energy : there is a role to play for CSOs and LAs in promoting innovative models/practises (forging new type of partnerships promoting decent work, corporate social responsibility … ), watchdog role concerning sustainability of processes … Policy Coherence for Development: advocacy role of CSOs and LAs needed to reinforce PCD at European level. Budget Support : monitoring role (See with A2 presentation)

Development and Cooperation - EuropeAid What next? Guiding principles to be progressively reflected in:  remainder of the current programming cycles & future programming documents  proposals regarding the architecture, legislation and programming of future financial instruments for external action Council Conclusions foreseen in first half 2012

Development and Cooperation - EuropeAid Thank you. Questions? Comments?