This document is an excerpt from the EUR-Lex website
Document 52012DC0444
REPORT FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT Annual Report 2012 on the European Union's Development and external assistance policies and their implementation in 2011
REPORT FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT Annual Report 2012 on the European Union's Development and external assistance policies and their implementation in 2011
REPORT FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT Annual Report 2012 on the European Union's Development and external assistance policies and their implementation in 2011
/* COM/2012/0444 final */
REPORT FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT Annual Report 2012 on the European Union's Development and external assistance policies and their implementation in 2011 /* COM/2012/0444 final */
REPORT FROM THE COMMISSION TO THE
COUNCIL AND THE EUROPEAN PARLIAMENT Annual Report 2012 on the European Union's
Development and external assistance policies and their implementation in 2011 RISING TO NEW CHALLENGES 2011 was a year of responding to new challenges and finding
new solutions to existing ones. The Arab Spring – people-led movements in the EU's
southern neighbourhood – led to calls for greater democracy and social justice.
As the situation evolved across the Arab world, initial EU humanitarian support
and civil protection measures were followed up with specific strategies and
assistance tailored to those countries, supporting sustainable reforms and
inclusive economic development. In Sub-Saharan Africa, a package of support from
the EU greeted the world's newest state, South Sudan. As the world’s biggest aid donor, providing over 50% of
the world's Official Development Assistance (ODA), the EU and its Member States affirmed their long-term commitment to poverty alleviation. A Communication
on "Increasing the impact of EU development cooperation – an Agenda for
Change"[1]
– highlighted support for reducing poverty, democracy, good governance,
sustainable and inclusive growth and the need to deliver aid to where it is
most needed and where it can have the greatest impact. This had particular
resonance given the difficult economic climate in the Eurozone. The biggest
development event on the global calendar – the High Level Forum in Busan, South Korea, in November 2011 – also stressed enhanced effectiveness and
co-ordination and the use of delivering aid through national ‘country systems’.
The future approach to EU budget support to third countries[2] – one of the EU’s most
important tools to give aid more impact and deliver improved results – accompanied
the Agenda for Change. The new proposals for financing external aid and
development, part of the Multiannual Financial Framework (2014-2020), were published
in December 2011, outlining spending plans for the new priorities. Agenda for change – modernising EU development policy The two building blocks of the Agenda for Change are on
the one hand human rights, democracy and good governance and on the other sustainable
and inclusive growth. This sustainable and inclusive growth will be stimulated
through promoting social inclusion and human development, decent work, business
and regional integration, sustainable agriculture, energy supply and access to
energy. A differentiated approach is proposed. This means that under the EU's next
Multiannual Financial Framework, some countries – notably among those who are
now donors in their own right – will receive less or no aid, and will be
offered alternative forms of cooperation. This new approach will mean that the
EU will be much better placed to promote and defend its core values and stand
by its international commitments to its neighbours, particularly those on a
path to joining the EU and those undergoing transition, as well as the poorest
and most vulnerable globally. Other features of the new policy are improved donor
coordination, in particular EU Member States, to avoid duplication and ensure greater
coherence and impact. The EU will prioritise sectors with a high impact on
poverty reduction such as governance, social protection, health, education,
employment, agriculture and energy. In future, bilateral aid to countries will
go to no more than three sectors[3].
Innovative tools such as the blending of grants and loans and the inclusion of
the private sector are also part of the updated policy. In the context of the revision of European Investment
Bank external mandate, the Commission is studying the possible establishment of
an EU platform for cooperation and development with a view to optimising the mechanisms
for blending in the external regions[4].
Energy
generates poverty reduction Energy is important
for poverty reduction – to meet basic human needs such as cooking,
health, housing, communication and decent employment. It is also an
income-generator, creating business opportunities. With around €2 billion of grants allocated to the energy
sector in developing countries over the last seven years, the EU is a leader in
empowering the world. EU
instruments such as the ACP-EU energy facility, the Africa-EU renewable energy programme
and the EU-Africa Infrastructure Trust Fund have been used to fund individual projects
across the African continent. The Commission wants to drive funding levels for
the sector up by incorporating the private sector and development banks in
future projects. The European Commissioner for Development is part of a high-level
group on sustainable Energy for All set up by UN Secretary General Ban Ki-Moon
which is seeking to mobilise funds from all sectors of society to fuel
energy-related programmes. Energy is also a core sector of the Agenda for
Change. Budget support – a vector for change The Communication on the new approach to
EU budget support, published in tandem with the proposals for the Agenda
for Change in October 2011, sharpened the use of this development tool as a
vector for change. Budget support is an aid modality which involves dialogue,
financial transfers to the national treasury account of the partner country,
performance assessment and capacity development, based on partnership and
mutual accountability. The new approach should enable greater differentiation
of budget support operations allowing the EU to respond better to the
political, economic, and social context of the partner country. The EU will put
more emphasis on mutual accountability and shared commitment to human rights,
democracy and rule of law as well as on transparency and oversight of the
budget. A new financial framework The Commission's June 2011 proposals for the
Multiannual Financial Framework (MFF) for the period
2014-2020 were based on the proposals for a “Budget for Europe 2020”[5] which highlighted the areas
where the EU could play an important role in an increasingly globalised world. The
EU remains committed to pursuing the MDGs and achieving the target of Official
Development Assistance (ODA) of 0.7% of Gross National Income (GNI) by 2015. To
help achieve these targets, the stepping up of financing for external action
within the budget from €56.8 billion to €70 billion and an increased roll-out
of innovative financial instruments (such as loans, guarantees, equity and
risk-sharing instruments) aimed at catalysing private investment and
strengthening institutions in recipient countries has been proposed. It has
also been proposed that the European Development Fund (EDF) for 79 African,
Caribbean and Pacific (ACP) states should be increased from €23 billion for six
years to €30.3 billion for seven years (in 2011 prices) and continue to be financed
directly by the EU Member States. Joined up decision-making 2011 was the first year of operation of the new
European External Action Service (EEAS) under the authority of the High
Representative of the Union for Foreign Affairs and Security Policy (HR). In
2011, the EEAS notably worked with Commission services on a joint response to
the crises in Libya and Tunisia and the drafting on proposals on the new Multiannual
Financial Framework. The global network of 140 EU Delegations carry out
political, diplomatic and policy work for the EU and provide support to Member
States through such activities as shared reporting. As some national diplomatic
services scale back their resources to concentrate on other priorities, the
added value of the EU Delegations is in ensuring that the EU is properly
represented throughout the world. This is not about replacing national
diplomatic services, but rather a more cost-effective and efficient use of
resources and strengthening the global role of the EU. The Arab Spring – responding to southern neighbours In March 2011, the EU confirmed its support
to help people in the southern Mediterranean achieve greater respect for human
rights, more democracy and a better life. It offered “A partnership for
democracy and shared prosperity” to southern neighbours in the context of
the European Neighbourhood Policy (ENP). This is based on an incentive-based
approach, supporting partners that are committed to reforms and establishing a
closer link between the policy approach and financial assistance programme.
This led to the reorientation of €600 million in the southern Neighbourhood
towards the objectives laid down in the partnership: democratic transformation;
a partnership with people and civil society, and sustainable and inclusive growth. An additional €1 billion from the EU budget
is being made available to ENP partner countries to support the implementation
of the new May 2011 Joint Communication “A new response to a changing
neighbourhood”. The largest part of these additional resources (€670
million) will be channelled through two umbrella programmes: SPRING (Support for Partnership Reform and Inclusive Growth) in the southern Neighbourhood (€540 million for 2011-13) and EaPIC
(Eastern Partnership Integration and Cooperation) in the eastern Neighbourhood
(€130 million for the period 2012-13). The rest of the additional funding has
mostly been allocated to higher education programmes (Tempus, Erasmus Mundus,
etc.) and support to civil society organisations and non-state actors. A Civil Society facility was set up to build its capacity in both
the EU’s Eastern and Southern neighbourhood to promote reform and increase
public accountability, with a budget of €26.4 million for 2011. Another
programme, ‘Investment Security in the Mediterranean
Region (ISMED)’ was also prepared to respond to the momentous events of the
Arab Spring. Around the globe To strengthen its ties around the globe in 2011, the EU used and
deepened its full range of existing co-operation and trade and association agreements
and specialised instruments. The independence of South Sudan in July 2011 led to the opening of a
new EU Delegation in Juba, South Sudan. EU Member States and the Commission
agreed to improve co-ordination and coherence of aid by jointly programming
€800 million of funds in a single strategy document 2011-2013, focussing on
health, education, rural development, promoting rule of law and improving
access to water and sanitation. Out of this, €200 million came from the EDF. Events in North Africa also had both short and potentially
longer-term impacts on that region’s southern neighbours, particularly in the
Sahel and neighbouring countries. Through its Instrument for Stability (IfS),
the EU responded to requests for immediate support to stabilisation efforts in
this region, including by addressing the livelihood and related needs of
returning migrants (particularly from Libya) and others. The EU's ‘Strategy for
Security and Development in the Sahel’ addressed the longer-term security and
development impacts on the region. An initial €150 million package of
support was divided between Mali, Mauritania and Niger for development and
governance activities, including the strengthening of respective justice
systems. The region continues to face multiple and intertwined challenges:
extreme poverty, the effects of climate change, frequent food crises, rapid
population growth, fragile governance, corruption, unresolved internal
tensions, the risk of violent extremism and radicalisation, illicit trafficking
and terrorist-linked security threats. Food crises in the Horn of Africa proved to be one of the largest
emerging challenges in the region in 2011. The EU provided additional funds to
Ethiopia (€13.75 million), Djibouti, (about €4.5 million), and Somalia (€25
million). A new strategic framework for the Horn of Africa was agreed in
November 2011 including the appointment of the first-ever EU Representative for
the Horn, his initial brief focussing on Somalia and the region’s rampant
piracy. The EU also topped up its support to Côte d’Ivoire, granting the
country €125 million to help the new authorities under President Alassane
Ouattara restore political and economic stability. Progress was also made on
implementing the second action plan of the Joint Africa-EU Strategy (JAES) and
its eight thematic Partnerships. The Africa-EU Platform for dialogue on
governance and human rights put forward proposals on natural resources
governance in conflict and post-conflict situations, backing recent EU measures
on more transparency of the activities of European extractive and forestry industries
in Africa. There was a strong focus on the EU’s eastern neighbours in 2011 for
whom the EU is viewed as a partner, a catalyst for reform and a magnet of economic
opportunity. At the second Eastern Partnership summit in Warsaw on 29-30 September
2011, the EU and its eastern neighbours renewed commitments with the EU
pledging additional resources of up to €130 million for 2012-2013 for partners
committed to reforms. An international conference
organised by Ukraine marking the 25th anniversary of the Chernobyl nuclear
accident resulted in the earmarking of a further €550 million for the programme
to erect a new safe confinement structure and protect the population and
environment from the damaged Chernobyl Unit 4 shelter. The EU pledged an
additional €110 million under its Instrument for Nuclear Safety Cooperation. For Central Asia, the EU is seen as a close
political ally and trusted partner on whom they can rely on in the challenging
transition process on which they have embarked, at the same time as offering
economic opportunities. At the EU/Central Asia foreign ministers’ meeting in
Tashkent on 7 April 2011, the two partners renewed their commitment to the
objectives and implementation of the EU/Central Asia Strategy, with resources
for the period 2012-2013 aimed at crucial political and socio-economic reforms.
The EU-Latin America/Caribbean (LAC) Madrid
summit held in May 2010 signalled stronger political relations with the LAC
region. The first ever region-to-region Association Agreement was concluded
with Central America and a multi-party trade agreement was initiated with
Colombia and Peru. Headway was made too on negotiations between the EU and the
South American common market organisation, MERCOSUR, on an association
agreement. 2011 also saw the opening of the EU-LAC foundation’s headquarters in
Hamburg, Germany, inaugurated in November 2011. The EU also intensified its relations with the Association of
Southeast Asian Nations (ASEAN) and strengthened bilateral ties with the bloc’s
ten members through the negotiation and implementation of bilateral partnership
and cooperation agreements (PCAs) and free trade agreements (FTAs). One highly
successful EU-funded project for the whole of the Asian region is SWITCH Asia,
a multi-pronged programme which is promoting sustainable production and
consumption, funding a series of small projects stretching across the continent.
It is contributing to poverty reduction and improved quality of life (Millennium
Development Goals (MDGs) 1 and 7) at the same time as promoting the green
economy. In the Caribbean, there was follow-up to
significant number of initiatives launched in 2010. A final draft of the
EU-Caribbean Joint Strategy, under discussion at the EU-CARIFORUM Summit in
2010, was prepared for institutional processing and it is expected to be
unveiled during 2012. The implementation of the EU-CARIFORUM Economic Partnership
Agreement (EPA) moved ahead. The long-awaited Caribbean Infrastructure Trust
Fund was approved by the EDF committee in the form of a Caribbean Investment
Facility to be launched in 2012. Climate change is the single greatest threat to the Pacific region
and is challenging its ability to reach the MDGs. As a follow-up to the
EU-Pacific Initiative on climate change launched in December 2010, the EU
Commissioner for development met with Pacific ministers in a high level
regional conference (Vanuatu, March 2011) which led to a strengthened
commitment to high-impact development co-operation aimed at addressing climate
change, reducing poverty, promoting human rights, democracy and gender equality
as well as achieving all the MDGs. A Joint
Communication on 'Towards a renewed EU Pacific development partnership', is
expected to be presented by the Commission and the High Representative in 2012.
Throughout 2011, the EU continued to take the lead in combating
climate change on a global scale, pushing for progress in international climate
negotiations. It delivered on its commitments to provide fast-start finance and
stepped up its climate diplomacy activities ahead of the UN climate conference
held in Durban, South Africa in November 2011. EU
sources water projects Between 2004
and 2012, 272 projects have been co-financed under the ACP water facility established
by the EU to improve water supply, hygiene and sanitation and water governance
in African, Caribbean and Pacific (ACP) countries. The facility was originally
set up with €700 million funding from the EU and a €12 million grant from the
Spanish government. The wider
European Union Water Initiative (EUWI),
launched in 2002, continues to seek to mobilise resources for water and
sanitation from diverse sources. Since 2004, the EU has already helped more
than 32 million people gain access to improved water supply and more than 9
million people to sanitation facilities. Building on the achievements of the EU
water initiative and the EU-ACP water facility, the EU will continue to support
international cooperation and to promote innovative approaches reinforcing the
link between water and other sectors such as agriculture and energy. In the Agenda
for Change, the Commission stressed that new policies should tackle
inequalities and, in particular, give poor people better access to land, water
and energy without harming the environment. It has committed around €3 billion
overall to activities related to water and sanitation projects between 2003 and
2010. Over this time, EU development assistance to the water and sanitation
sector has almost tripled. Achieving the MDGs The annual report 2011 details how the EU
projects and programmes are individually helping achieve the MDGs across
continents and regions. The EU has mounted programmes and has developed
specific instruments to make the MDGs more attainable, including those goals
which are most lagging behind – child and maternal mortality. In late 2011 the first component of the EU's €1 billion MDG Initiative,
launched in September 2010, was adopted. It
focusses on countries that are most off-track in their MDG targets. The EU food facility is also improving food security and
nutrition. By the end of 2011, this €1 billion EU facility had funded
134 projects implemented by NGOs and EU Member State agencies, 69 projects by
international organisations, three regional projects and ten budget support
measures. The Agenda for Change also places sustainable agriculture, food
security and nutrition high on the EU's development cooperation agenda. With a view to helping countries reach MDG3 on gender
equality, the EU's thematic programme, Investing in People, funded two
major gender equality initiatives during 2011: one on women's social and economic
empowerment, and a new United Nations programme, “Increasing accountability for
financing to gender equality”. Strengthening human rights and good governance In 2011, the EU used its range of external instruments
and policies to promote and protect human rights and good governance and to
combat gender inequality. In December 2011, the Commission and the High Representative
presented a Joint Communication on “Human rights and democracy at the heart of
EU external action – towards a more effective approach”[6]. While reaffirming the EU's
approach on human rights, it aims to tailor the promotion of human rights to
local conditions and envisages ways in which the collective weight of the EU
could be harnessed. Further, under the proposals on the new MFF, the European
Instrument for Democracy and Human Rights, will be strengthened including a
proposal to step up support to civil society worldwide. A sensitive approach to
genital cutting EU cooperation with the United
Nations Children’s Fund (UNICEF) has had considerable success in reducing the
female genital mutilation/cutting and child marriage that affects the lives of
many girls. Implemented by UNICEF,
the programme has received a total of €3 991 000 in EU funding over
the period 2008-2012. Targeting Egypt, Eritrea, Ethiopia, Senegal, Sudan and
India, it has focussed on changing social norms and attitudes through conducting
grass-roots education and discussion in rural communities around the sensitive
issues using the intermediary of respected community leaders. Due to such a sensitive
approach, Senegal is close to becoming the first country to declare the
abandonment of the traditional practice. Looking ahead The Agenda for Change and accompanying proposals on
budget support update the EU’s external and development policies to take on the
challenges of a rapidly changing world. This modernised agenda seeks to focus
development cooperation on support for human rights, democracy, good governance
and inclusive and sustainable growth. Sustainable agriculture, food security,
sustainable energy, boosting the private sectors as a development partner, decent
work and social protection floors are important areas in this context. There is acknowledgement that the EU can improve its
tools to support sustainable change in societies in transition, adapted to and
taking account of their situations and needs. Low income countries are
especially vulnerable to external shocks. To help build resilience against
shocks over time, the 2011 Joint Communications proposed a stronger focus on
domestic revenue mobilisation, strengthened social safety nets, increased
efficiency of public spending, and measures to diversify economies. It will,
however, take time for all the benefits of these policies to be felt. The
Commission will also look at the scope for applying its innovative projects
such as SPRING to other areas of the world. Short-term mechanisms are needed to help developing
countries respond to the economic and financial impact of external shocks.
Building on the experience gained in implementation of the FLEX instrument, the
food facility and Vulnerability-FLEX (V-FLEX) instrument for countries coping
with economic downturn, the Commission is developing additional shock-absorbing
mechanisms. The achievement of the MDGs, and the framework that will come
thereafter, will remain a key issue in 2012 in view of the next UN MDG Review
in 2013. [1] COM(2011) 637 final [2] COM (2011) 638 final [3] with the possible exception of candidate countries
and potential candidates to EU accession funded by the Instrument for
Pre-accession Assistance [4] Decision 1080/2011/EU [5] COM(2011)
500 final [6] http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2011:0886:FIN:EN:PDF