2.mod1 ae aidco
TRANSCRIPT
EuropeAidIntroduction
Just because you’re doing good, doesn’t mean you’re doing it well.
EuropeAid
“Aid Effectiveness is…?”
EuropeAid
Overview
EuropeAidOverview
What would you do with 50 years and 1.5 trillion euros?
EuropeAid
Helping the poor, to some extent: “a voluntary transfer of resources from one country to another, at least partly given to benefit the recipient country” “acting as a signal of diplomatic approval, strengthening a military ally, acting as a reward for good behaviour desired, to extend cultural influence, or to provide commercial access.”
Helping the poor: “flows of official financing administered with the promotion of the economic development and welfare of developing countries as the main objective.”
Harming the poor: “the billions that have hampered, stifled and retarded Africa’s development.”
Not helping the poor: “when you take money from the poor people in a rich country and give it to the rich people in a poor country.”
EuropeAidA Very Brief History
After the War: What works for Europe…World Bank, IMF, Marshall Plan (‘48-’52: $13bn). Aid to fix the ex-colonies (and maintain influence). Modernise & industrialise…
The Sixties: All we need is industry.State-led. Roads, railways, dams = growth = development but too big and long-term for Gov’s. Plus help the agri sector in the meantime.We’ll be done in a decade. The Seventies: Maybe not… Basic human needs as well as growth. Roads, Schools & hospitals. Oil prices & interest rates = recession = loan payments , commodity prices
Evolution as we learn…or stumbling in the dark?
EuropeAid
The Nineties: It’s the Government, stupidGreed is only good in the private sector. corruption, rule of law, capacity. Aid if you have good policies (Burnside & Dollar). Aid fatigue = volumes
The Noughties: More is Better, Better is Better $50bn by 2010?) MDGs, AE (ownership, budget support), Celebrity Aid, Military Aid.
The Eighties: Greed is good Bring on the market, less Big Government, liberalise don’t subsidise, follow the Asian Tigers. Structural Adjustment in return for a loan to help with your loan. $15bn a year from poor to rich. The lost decade for development?
Today: The Backlash?First on the cuts list, “Africa’s future is up to Africans”, The White Man’s Burden, Why Foreign Aid Isn’t Working, Dead Aid…
EuropeAid
“More than half the people of the world are living in conditions approaching misery…For the first time in history, humanity possesses the knowledge and the skill to relieve the suffering of these people.”
Guess Which Celebrity Said…
US President Harry Truman, 1949
EuropeAidHow Much Are We Talking
About?
EuropeAid
10
Bilateral = 75%, Multilateral = 25%
EC - $13bn (9% of budget)UN – $3.8bnEU - $50bn
Gates - $3bnGlobal Fund - $1.2bn
How Much Are We Talking About?
EuropeAid
UN General Assembly:
Each economically advanced country will progressively increase its official development
assistance to the developing countries and will exert its best efforts to reach a minimum of 0.7% of its gross
national product by the middle of the decade.
1970
EuropeAidDo We Give What We Promised?
By 2010:•$130bn / year
•Aid to sub-Saharan Africa doubled
EuropeAidWho is it Spent On?
EuropeAidWho is it Spent On (EC)?
EuropeAidWho is it Spent On? (EU)
EuropeAidOrphans and Darlings?
Country Income per Person
ODA per Person
Madagascar 320 19
Mozambique 320 43
Guinea 400 12
Tanzania 400 30
Ecuador 3,080 14
Jordan 2,850 64
Historical, political, economic, security…
EuropeAidDoes it Work?
Global GDP per head
Living on < $1 per day
EuropeAidDoes it Work?
Getting by on less than $1 per day…
EuropeAidDoes it Work?
EuropeAidDoes it Work?
Human Development Index
EuropeAid
Gross National Happiness?
Sustainable development Cultural values Natural environment Good governance
EuropeAid
Yes it works! Botswana, Indonesia, Korea, Tanzania…
No it doesn’t!! DRC, Haiti, Papua New Guinea, Somalia…
Let’s ask the economists, does aid lead to growth? Yes, no, maybe. And what about growth & poverty?
It Depends…Policies (Burnside & Dollar), what we do & how, combined effect (direct, policy, institutions & governance, macro-economic stability.
EuropeAidDoes it Work?
Percentage of the world’s population that lives in developing countries: 84
Number of people worldwide who will die today due to poverty: 20,000
Number of children who will die this year from easily preventable diseases: 10,000,000
Number of people without enough to eat today:840,000,000
EuropeAidOverview
“There is no magic bullet. These are just basic problems requiring basic work.” Jeffrey Sachs
EuropeAidWhat are they?2001: 192 UN MS + international organisations agree 8 development goals (not growth!). Aim: halve poverty by
2015.
EuropeAidAre we achieving them?
EuropeAidAre we achieving them?
Some doing well: e.g. Asia (Chinese poor by 200m)Some not doing well: Sub-Saharan Africa.
Growing criticism: arbitrary targets, focus on setting instead of jumping the bar.
Has led to: increased interest in effectiveness of aid & what works on the ground rather than goal-setting.
EuropeAidOverview
“A little less conversation, a little more action please.” Elvis Presley
EuropeAidWhat’s the idea?
EuropeAidWhat’s the idea?
Government Driving
Predictability, Transparency
Results, Accountability
Donors Joined-up
EuropeAidWhat We’re Trying to Get Rid Of
No. of indicators the island of St Vincent has been asked to monitor on HIV/AIDS? 191
No. of donor missions to Ethiopia in 2007?221
Percentage of aid projects that are for less than $1m?80
No. of NGOs working on health in the west coast of Aceh? 22
No. of bank accounts the Mozambique Gov has to have to meet donor requirements? 1,000
Number of aid coordination forums in Senegal? 82
EuropeAidInternational Commitments
2000:
MDGs
2000:
MDGs2002
: F4D
2002:
F4D
2005: PCs2005: PCs
2008: AAA
2008: AAA
2005: G82005: G8
2008:
F4D
2008:
F4D
2008:
MDGs
2008:
MDGs
2003:
Rome
HLF
2003:
Rome
HLF
EuropeAidEU Commitments
2004 – Ad-Hoc Working Party on Harmonisation
2005 – EU Consensus on Development
2006 – More, Better, Faster
2007 – Strategy for Africa
2007 – Code of Conduct on Division of Labour
– Joint Framework for Country Strategies – Financing for Development
2008 – Backbone Strategy on Technical Cooperation
EuropeAidWhat It Means on the Ground
Mozambique - ODAMoz
EuropeAidWhat It Means on the GroundLao PDR – Government-Donor Sector Working Groups
EuropeAidWhat It Means on the Ground
Ethiopia – Division of Labour
EuropeAidWhat It Means on the GroundGeorgia – A Donor Compact
EuropeAidOverview
“If you give a man a fish he will eat for a day. If you teach a man to fish he will always have food. If you teach a woman to fish, the whole family will always have food. And if you just talk about fishing, you’re probably a consultant.”
EuropeAid
IdeasDelivery
Commitments
Technical Cooperation
Division of Labour
The Others
On the Ground & Outside the Box
EuropeAid
Overview
EuropeAid