6th annual CONCORD report monitoring EU performance on aid quantity and quality. Produced by AidWatch, a pan- European network of aid experts working on aid quantity and quality. Web: aidwatch.concordeurope.org Launch date: 19 May AidWatch Report 2011

2005 was a important year for aid EU Council agreed on aid targets for 2010 and 2015: Paris Declaration on Aid Effectiveness: 16 aid effectiveness targets and indicators agreed for EU150.51%0.7% EU120.17%0.33% EU270.56%0.7%

Aid quantity analysis EU reached only 0.43% ODA/GNI Collective shortfall amounts to nearly €15 billion Only 7 EU member states reached their aid target, while 9 EU member states are above EU targets

Aid inflation (1/2) At least € 5.2 billion (or nearly 10%) of all EU aid is ‘inflated’ or ‘phantom’ aid EU donors continue to report debt relief (€2.5bn), student costs (€1.6bn) and refugee costs (€1.1bn) as aid These items do not represent value for development or a transfer of resources to partner countries

Aid inflation (2/2)

EU aid and climate change financing EU provided €2.35 billion of climate change financing until end 2010 Most EU member states report climate change financing as aid Aid is double-counted for climate change financing and poverty eradication EU needs to find a common positions as to what ‘additionality’ means

Aid quality analysis Democratic ownership Conditionality Consultations with CSOs Transparency Ranking of 25 European donors based on survey and their commitment to transparency Gender Gender Action Plan

2011 needs to see a strong push for aid effectiveness 2010 aid effectiveness targets have not been met Paris and Accra are already delivering significant change Busan-HLF needs to result in an agreement that deepens the Paris and Accra reform commitments EU needs to pro-actively engage ahead of HLF4 and lead by example EU domestic priorities must not outcrowd partner country priorities

Recommendations (1/3) Ensuring that the EU provides genuine resources for development, firmly focused on the eradication of poverty as demanded by Lisbon Treaty by ending inflation of aid budgets with debt cancellation, refugee and student costs; ensuring that climate financing is additional to existing to ODA commitments; and ending the misuse of aid for national security, migration and commercial interests and protect ODA standards from further weakening. Implementing on top of their aid quantity commitments, a financial transaction tax to help finance global public goods such as poverty reduction and climate change.

Recommendations (2/3) Ensuring an ambitious and binding international agreement at the HLF4 that reaffirms and deepens the Paris and Accra commitments and includes clear time-bound targets and an independent and inclusive monitoring of implementation at the international and national levels. Ensuring that, by the upcoming HLF4 in Busan, they deliver timely, comprehensive and comparable aid information that is compatible with emerging best practice as set out in common standard developed by IATI.

Recommendations 3/3 Putting gender equality and women’s empowerment at the centre of development cooperation by supporting the implementation of the EU gender action plan with the financial and human resources, and taking stock of best practices in EU member states. Promoting democratic ownership by Ending the use of economic policy and other sensitive conditions; and Increasing political and financial support to CSOs, Parliaments and oversight bodies, particularly to ensure democratic ownership and broad accountability.

Thank you very much! More: aidwatch.concordeurope.org