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EC development financing instruments Eero Saue A/2: Aid Effectiveness and Relations with Member States DG Development Together for a better world Development and relations with African,Caribbean and Pacific States Structure 1. EU in the Global Context 2. What are the EC’s external aid instruments 3. Briefly on EC procurement Together for a better world Development and relations with African,Caribbean and Pacific States Political Context • • • • MDGs European Consensus Paris Agenda ODA commitments Together for a better world Development and relations with African,Caribbean and Pacific States EU in the Global Context Global Aid Flows 2008 60 50 83,8 49,468 € billion 40 30 18,031 20 6,49 10 3,275 2,75 2,194 1,397 0,24 Canada Norway Australia Switzerland New Zealand 0 EU 27 US Japan Total aid Source: European Commission and OECD Together for a better world Development and relations with African,Caribbean and Pacific States Breakdown of EU aid EU Bilateral disbursements FI; 1,2% IE; 1,5% PT; 0,6% EL; 0,5% LU; 0,5% EU12; 2,0% AT; 2,0% BE; 2,3% IT; 2,8% DK; 3,1% EC; 22,2% SE; 5,5% ES; 7,8% DE; 15,2% NL; 9,1% FR; 11,1% UK; 12,6% Together for a better world Development and relations with African,Caribbean and Pacific States 2008 EC external aid budget External aid: €12.8 bn (9%) Non-EuropeAid Budget: €3.3 bn (26%) Commission budget inside EU: €124 bn (91%) EuropeAid EDF fund: €4.8 bn (37%) EuropeAid Budget: €4.6 bn (37%) 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) Together for a better world Development and relations with African,Caribbean and Pacific States EC External Aid Instruments Policy driven instruments: ► Instrument for Pre-Accession Assistance (IPA) ► European Neighbourhood and Partnership Instrument (ENPI) ► Development Cooperation Instrument (DCI) ► European Development Fund (EDF) ► Economic Cooperation Instrument (ECI) ► Instrument for Nuclear Safety Cooperation (INSC) ► Human Rights and Democracy Instrument (EIDHR) Crisis response instruments: ► Humanitarian Aid Instrument ► Macro-financial Assistance ► Instrument for Stability Together for a better world Development and relations with African,Caribbean and Pacific States Geography of funds - 2008 In M€ Neighbourhood south: 1137M 19% Neighbourhood east: 318M 5% Africa, Caribbean, Pacific: 3443M 60% Asia: 673M 11% Latin America: 310M 5% EuropeAid spending per region, ACP including South Africa and Bananas Together for a better world Development and relations with African,Caribbean and Pacific States ENPI Scope Country and region specific programmes (95 %) Cross border cooperation (CBC) programmes on the external borders (enhanced by ERDF funding) Region: 17 countries: Mediterranean, Eastern Europe, Russia, Caucasus, Near East Funding 11.8 bln EUR 2007-13, average €1.68 billion per year Examples Palestine, all national envelopes, Eastern Partnership, NIF web http://ec.europa.eu/europeaid/where/neighbourhood/ http://ec.europa.eu/world/enp/ Together for a better world Development and relations with African,Caribbean and Pacific States DCI Geographic programmes Scope: Country specific programmes Funding: Average € 1.4 billion p.a. Regions: Asia Latin America South Africa Central Asia Middle East € ENPI (under thematic) 740 million 380 140 100 70 70,5 Examples: Primary education in India, Colombia, Peace Labs, Institution building in South Africa, development of SMEs in Kazakhstan, rule of law in Iraq Web: http://ec.europa.eu/europeaid/where/ Together for a better world Development and relations with African,Caribbean and Pacific States DCI Thematic programmes Funding Average € 800 million p.a. Region All third countries except industrialised/pre-accession Themes Investing in people € 150 million Environment 120 NSAs / local authorities 230 Food security 240 Migration / asylum 60 Examples: HR development in Fiji, food security in Niger, community dialogue in Lebanon, fight human trafficking web http://ec.europa.eu/europeaid/what/human-social-development Together for a better world Development and relations with African,Caribbean and Pacific States 10th EDF Legal Basis revised Cotonou Agreement: Country and Region specific programmes Thematic programmes Coverage Funding 77 African, Caribbean, Pacific countries, OCTs Total €22.682 billion Average €3.7 billion per year 2008-2013 Period covered web http://ec.europa.eu/europeaid/where/acp/ Together for a better world Development and relations with African,Caribbean and Pacific States The Programming Process Strategy Papers Multi-annual Indicative Programmes Action Programmes ►annual ► Analysis of the situation ► Response strategy ►Priority sectors ► 7 years ► revised at mid-term Together for a better world ►normally attached to Strategy Papers ► set global and per priority allocations ► cover 3 – 4 years ► describe projects identified for financing ► define the budget per project ►lead to EC decision & commitments of funds Development and relations with African,Caribbean and Pacific States EC procurement & grants • Eligibility rules • Financial Regulation • Practical Guide (“PRAG”) http://ec.europa.eu/europeaid/work/procedures/implementation(practical_guide/index_en.htm • EuropeAid funding opportunities http://ec.europa.eu/europeaid/work/funding/index_en.htm Together for a better world Development and relations with African,Caribbean and Pacific States Summary • EU donors = 27+1 • Same objectives, different instruments • United in Diversity, for better impact Together for a better world Development and relations with African,Caribbean and Pacific States