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ITUC Conference on “Development is Social Justice –Trade Unions for Decent Work”13-14 October 2009

Koos RichelleDirector GeneralEuropeAid Cooperation OfficeRunö, Stockholm, 13 October 2009

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1The EU development aid context

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EC response: the policy framework

• 2000 UN 8 Millennium Development Goals, fixing poverty reduction objectives for 2015

• 2005 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.

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EU & EC aid implementation

EU the largest donor in the world• 27 + 1 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

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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)

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Official Development Assistance Percentage of Gross National Income:

actual 2008, forecast 2010, objective 2015

0

0,2

0,4

0,6

0,8

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Spain UK

Fin

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Fran

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Gre

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Italy

Cyp

rus

Slo

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thu

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vRep

Est

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2010

20082015

Source: OECD DAC where available. EC data base on MS information to the EC or the DAC for 2008. EU DAC Average: 0.42% in 2008 compared with 0.38% in 2007

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2Towards delivering more & better aid

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Paid out in 2008: €7 billionRecord year for project implementation

EDF

Budget

0

1

2

3

4

5

6

7

8

'02 '03 '04 '05 '06 '07' '08 '09

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Geographic distribution of funds - 2008

EuropeAid spending per region, ODA and OA, ACP including South Africa and Bananas

In M€

Africa, Caribbean,

Pacific: 3443M 60%

Latin America: 310M 5%

Asia: 673M 11%

Neighbourhood east: 318M

5%

Neighbourhood south: 1137M

19%

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Distribution of funds by horizontal programme - 2008

Thematic programme

s*: 690M 76%

Democracy & human

rights: 112M12%

Stability instrument:

34M 4%

Nuclear safety: 75M

8%

2008, payments per thematic programme, in M€

* Thematic programmes include: non-state actors & local authorities, investing in people, gender, environment, migration and food security

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3More means than only aid…

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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;

EuropeAidEU 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);

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• 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

EuropeAidEU’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.

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EuropeAidEC aid to promote decent work

• € 1.9 billion support to DW related programmes over 1999-2010 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.;

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4Role of Civil Society & Social Partners

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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

EuropeAidCSOs 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).

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EuropeAidSocial 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;

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EuropeAidSocial 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

aspects21

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5Challenges & Priorities for the EC

EuropeAidChallenges & 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;

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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

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• 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

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• 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

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THANK YOU!