Poul Nielsons statusrapport, som fremlægges for Europa-parlamentets Udviklingskomite den 7. oktober
Progress against commissioner Nielsons commitments to the European Parliament in 1999 – A summary of a report prepared under the guidance of Commissioner Nielsons Cabinet
Foreword
When I became European Commissioner for Development Cooperation and Humanitarian Aid, I assumed responsibility for these policy areas in an organisation with global reach, managing considerable funds, but facing significant administrative and public relations challenges.
I made the commitment to reorient European development policy towards the fight against poverty; to improve coherence, coordination and complementarity; to reform the internal management of European external assistance; and to improve the delivery of humanitarian aid.
Now I look back on an intensive, rewarding and challenging five years. This document is a summary of a report which recalls commitments I gave to the European Parliament in 1999 and sets out progress against them.
I would like to state that all this would not have been possible without the dedication of the Commission services, the support of my fellow Commissioners, the European Parliament, NGOs and the development community at large.
But, of course, a great deal still remains to be done.
We have laid the ground for further important work. The challenges for the next Commission include the need
– to find a suitable resource allocation mechanism for countries not in the Africa-Caribbean-Pacific (ACP) regions;
– to resolve the issue of the budgetisation of the European Development Fund (EDF);
– to coordinate more effectively with EU Member States;
– to work with others to develop a coherent strategy for global development and link better our policies on trade, fisheries, migration, and peace and security;
– to complete the internal reorganisation of the External Relations Directorate Generals to unify the full cooperation cycle; and
– to continue to improve the ability of our system to deliver quality.
signed
Poul Nielson, European Commissioner for Development and Humanitarian Aid
Part one – What has been achieved
“The overriding moral objective of our endeavour is to fight poverty…poverty should be at the centre of our efforts…aid must be reoriented towards internationally agreed objectives” (PN)
During Mr Nielsons tenure as Commissioner, European Community policy priorities were refocused towards the fight against poverty. A key milestone early on was the decision in 2000 to have one overall framework for the EUs partnership with developing countries.
This framework makes it clear that the main objective of EC aid is to reduce and eventually eradicate poverty. Like other donors, the EC is now working to achieve the internationally agreed Millennium Development Goals, which centre on poverty reduction.
“I think it would be good if…we were to share our own discussions with our partner countries more systematically and willingly…It is important that the recipient countries are in control of the process” (PN)
The principle of country ownership is laid down in the Cotonou Agreement. This Commission has completed the first generation of regional and country strategy papers (CSPs), developed in close cooperation with partner governments.
European Community assistance to developing countries increasingly takes the form of budget and sector support for macroeconomic policies.
Budget support is an opportunity to put partner countries in the driving seat. Working within national structures, rather than bypassing them, enhances the impact of Community aid and promotes local ownership and capacity. It also improves donor coordination and complementarity.
High-profile initiatives such as the Water Facility and the African Peace Facility are strong EU responses to partner country requests set out bilaterally, regionally or at major UN conferences.
The Water Facility is a fund of up to 500 million euro to improve access to safe drinking water and basic sanitation for people in ACP countries (EUs samarbejdspartnere i Den 3. Verden, red.) and is a response to a continent-wide African policy priority.
The objectives of the Peace Facility are to: 1) promote African solutions to African crises; 2) increase African solidarity; 3) create the conditions for development.
“International development cooperation…never reached the levels that were promised…Reversing the trend (of falling ODA per cent) is…a shared goal for…the Commission” (PN)
At the European Council meeting in Barcelona in March 2002, the EU pledged to increase its annual ODA effort to 38,5 billion euro or 0,42 per cent of the total EU Gross National Income (GNI – BNI) in 2006. This is 10 billion euro (74 milliarder DKR) more per year in comparison with 2002, and equivalent to a 35 per cent increase. The trend of falling aid volumes in the EU has effectively been reversed.
The Commission presented this EU line at the International Financing for Development Conference in Monterrey later in March and influenced the decisions of other major donors to increase their pledges.
“Our combined influence in international organisations is so great that we have an obligation to make them work better” (PN)
In 1999, the Commission was not seen as a constructive partner in the donor community. Now, the Commission is seriously pursuing coordination and complementarity.
Programming builds explicitly on the Poverty Reduction Strategy Papers (PRSPs) of the partner countries. Framework agreements have been signed with both the UN and the World Bank on EC contributions to trust funds and co-financing.
“Civil societys capacities must be used more intensively in sustainable development…We have to ensure that non-governmental actors are more involved” (PN)
Over the past five years, relations with NGOs have improved considerably. The Cotonou Agreement makes the participatory approach in all levels of co-operation a legally binding obligation for both the EU and the ACP states.
Regular six-monthly meetings have been set up in which the development and humanitarian NGOs meet directly with Commissioner Nielson.
Non-state actors are gradually becoming one of the key partners in EC development policy. Every year some 1,4 billion euro out of a total of 7 billion euro of EC annual ODA (20 per cent) is being managed by or with non-state actors.
Under Commissioner Nielson, a system of open and fair competition for NGO funding has been established. NGOs now compete for funds available by responding to a call for tender. In 1999 and 2000, the Commission established the first ever website and Helpdesk devoted to NGOs.
“The correct approach should be trade and aid…We must have some kind of coherence between our commitment to poverty reduction strategies and our policies on trade” (PN)
The EU has long recognised that trade can boost the economic growth and productive capacities of poor nations. The EU committed to remove tariffs on all exports from least developed countries – with the sole exception of arms – under a programme launched in 2001, known as “Everything But Arms”.
But market opening alone will not do the trick.
This is why the EUs development strategy also focuses on financial and technical assistance to improve the basic physical and social infrastructures and productive potential of poor nations and to strengthen their administrative and institutional capacities
The EU is combining its trade and aid mix in a new way in the next generation of Economic Partnership Agreements (EPAs) that it is negotiating with the ACP countries.
The idea is to help them integrate with their regional neighbours as a step towards global integration, and to help them build institutional capacities and apply principles of good governance. At the same time, the EU will continue to work to open its markets and remove barriers to exports from the ACP group.
“We need to continue the process of simplifying, rationalising and harmonising our aid management procedures” (PN)
In May 2000 the Commission launched a programme of aid management reform. The fruits of this reform are beginning to bear fruit. The achievements are:
– Establishment of the EuropeAid Cooperation Office to implement programmes;
– Harmonisation of internal procedures and monitoring systems;
– Increase in payments by 47 per cent;
– Decrease in average project implementation time from 4,5 years to 3,75 years;
– Introduction of a common information system to give a real-time financial picture and make EC aid activities DAC-compatible;
– Establishment of Quality Support Groups to check the relevance, sustainability and feasibility of proposed activities;
– Increase in the number of staff working on project implementation to an appropriate level that is still far below that of other donors;
– Establishment of an Evaluation Unit to assure continued improvement;
– Publication of the first three Annual Reports in all EU official languages;
– Launch of the first website devoted to NGOs;
– Establishment of an Internal Audit Unit to ensure compliance with control standards;
– Proposal to enhance Community aid effectiveness through further untying.
“To protect ECHOs budget, freedom of action and core activities, it is necessary to be more careful in drawing a line between what are and what are not core activities…” (PN)
Under Commissioner Nielson, the Humanitarian Aid Office of the European Commission (ECHO) has clarified its core mandate and policy by drawing up a mission statement, setting up annual aid strategy frameworks and developing policy guidelines on how to link relief, rehabilitation and development and on disaster
preparedness.
Commissioner Nielson has been a strong defender of the needs-based, neutral and non-discriminatory status of humanitarian aid. ECHOs support to forgotten crises has been steadily growing, reaching 20 per cent of its budget in 2003.
Part two – Commissioner Nielsons view of the challenges that remain
In the foreword, I highlighted some of the areas in which this Commission has prepared the ground for the next Commission, and where we have not achieved as much as we would have liked.
I see the challenges that the next Commission will need to work towards as:
1. Finding a suitable resource allocation mechanism for countries not in the Africa-Caribbean-Pacific (ACP) regions
The next Commission will need to take forward work on this process. A bigger reserve will be created and it will be possible to adjust allocations to countries and regions outside the framework of mid-term and end-of-term reviews, provided that the usual criteria of needs and performance are applied.
2. Resolving the issue of the budgetisation of the European Development Fund (EDF)
I have argued that maintaining a separate fund – the EDF – for cooperation with ACP countries outside the EU budget and without full control by the European Parliament is an anomaly. The integration of the EDF into the EU budget will lead to political and budgetary normalisation, without putting at risk the achievements of the 45-year long cooperation with ACP countries.
3. Coordinating more effectively with EU Member States
A Commission report on Member States efforts to deliver on their commitments taken in the context of the Financing for Development Conference in Monterrey in 2002 concluded that the EU had still failed to significantly strengthen coordination of its development policies and to harmonise aid procedures. The report outlined a number of concrete recommendations on how to improve the current situation.
4. Working with others to develop a coherent strategy for global development and link better our policies on trade, fisheries, migration, and peace and security
There is a major challenge ahead for the next Commission to identify workable performance indicators to measure progress towards the Millennium Development Goals (MDGs) in time for the UN stocktaking event planned for 2005.
5. Completing the internal reorganisation of the External Relations Directorate Generals to unify the development cooperation cycle
I believe it is in the interests of the Commission and our partners to bring together the full development cooperation project cycle under one roof. Unfortunately this has not yet come about. However, I am pleased that one of the main objectives of the draft Constitutional Treaty is to establish a structure in the External Relations family which ensures better consistency and coherence.
6. Continuing to improve the ability of our system to deliver quality.
We have not made as much progress as we would have wished for in the reform of financial management in the EuropeAid Cooperation Office. There is still room for improvement, particularly in speeding up disbursement.
Final word
I believe that this Commission has laid strong foundations for the continued improvement of EC development assistance and the eradication of poverty. It is essential that work continues in this direction.
The next Commission and the European Parliament Committee on Development and Cooperation have much important work ahead. I wish them both all the best in working towards these goals.
Poul Nielson, European Commissioner for Development and Humanitarian Aid
Yderligere oplysninger hos EU-repræsentationen i Danmark v. Michael Vedsø, tlf. 33 41 40 20
