German and European German and European Development Cooperation Development Cooperation

ZEFa PhD Course ZEFa PhD Course Uwe HOLTZ, November 29, 2006Uwe HOLTZ, November 29, 2006

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Development - a key political task of the 21st Development - a key political task of the 21st century.century.

Development cooperation in the narrow and in Development cooperation in the narrow and in the broader sensethe broader sense

Development cooperation from outside may Development cooperation from outside may influence in a positive way the endeavours of influence in a positive way the endeavours of developing and transition countries to improve developing and transition countries to improve the living conditions of their populations.the living conditions of their populations.

Germany and the European Union - major Germany and the European Union - major players players in the development process. in the development process.

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DevelopmentDevelopment

No single definition universally accepted No single definition universally accepted

> Values, political convictions, scientific > Values, political convictions, scientific findings, practical experiencesfindings, practical experiences

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The Challenge to the South. The Report of the South Commission, Oxford 1990The Challenge to the South. The Report of the South Commission, Oxford 1990

Development isDevelopment is

a process which enables human beings to realize their a process which enables human beings to realize their potential, build self‑confidence, and lead lives of dignity potential, build self‑confidence, and lead lives of dignity and fulfilment. and fulfilment.

It is a process which frees people from the fear of want It is a process which frees people from the fear of want and exploitation. and exploitation.

It is a movement away from political, economic, or social It is a movement away from political, economic, or social oppression. oppression.

Through development, political independence acquires its Through development, political independence acquires its true significance. true significance.

And it is a process of growth, a movement essentially And it is a process of growth, a movement essentially springing from within the society that is developing. springing from within the society that is developing.

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Willy Brandt, 1980Willy Brandt, 1980

„„While hunger rules peace cannot prevail. While hunger rules peace cannot prevail.

He who wants to ban war must also ban mass He who wants to ban war must also ban mass poverty.“poverty.“

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Holtz:Holtz: Development means the satisfaction of basic human needs and the realisation of human rights. It must be sustainable.

Brundtland Commission, “Our Common Future”, 1988:Brundtland Commission, “Our Common Future”, 1988: The term “sustainable development” is defined as “…development that meets the needs of the present

without compromising the ability of future generations to meet their needs.”

UNCED Rio 1992 > Agenda 21; WSSD Jo’burg 2002

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DevelopmentDevelopment The concept of "development" cuts across many The concept of "development" cuts across many

dimensions and levels. dimensions and levels.

Development should be understood as a process Development should be understood as a process influenced by many actors. influenced by many actors.

Societies are always changing. Some improve, Societies are always changing. Some improve, while others fail. Development theories aim at while others fail. Development theories aim at explaining both processes. explaining both processes.

Development cooperation/aid means the donor‘s Development cooperation/aid means the donor‘s assistance to developing countries. assistance to developing countries.

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Official Development Assistance / CooperationOfficial Development Assistance / Cooperation

DC in the form of project, programme or budget aid DC in the form of project, programme or budget aid (+ debt relief)(+ debt relief)

ODA = grants or loans to countries and territories ODA = grants or loans to countries and territories according to the DAC List of Aid Recipients according to the DAC List of Aid Recipients (developing countries) and to multilateral institutions: (developing countries) and to multilateral institutions:

(a) undertaken by the official sector; (a) undertaken by the official sector;

(b) with promotion of economic development and (b) with promotion of economic development and welfare as the main objective (# military); welfare as the main objective (# military);

(c) at concessional financial terms (if a loan, having a (c) at concessional financial terms (if a loan, having a grant element of at least 25 per cent). grant element of at least 25 per cent).

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ODA / GNI Ratio = ODA as % of GNIODA / GNI Ratio = ODA as % of GNI

0.7% aid goal: The international goal for rich countries to devote 0.7% of their gross national income (previously: GDP) to official development assistance. 2005: 0,33 %

Gross National Income comprises the total value of goods and services produced within a country (i.e. its Gross Domestic Product), together with its income received from other countries, less similar payments made to other countries.

GNI - a little bit higher than the GDP

ODA/GNI ratio (2003): 1,2 % (SSA 6,1 %)

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The Millennium Declaration (2000) is “The Millennium Declaration (2000) is “a landmark a landmark document for a new century” (UN Secretary General document for a new century” (UN Secretary General Kofi A. Annan).Kofi A. Annan).

The eight Millennium Development Goals / MDGs The eight Millennium Development Goals / MDGs (2001) could serve (2001) could serve as a benchmark by which as a benchmark by which development efforts and successes can be measured.development efforts and successes can be measured.

Both documents, reinforced in 2005, form the frame Both documents, reinforced in 2005, form the frame of referenceof reference for the own efforts of developing for the own efforts of developing countries as well as for German and European countries as well as for German and European development policy.development policy.

The World Bank, the IMF and other UN institutions, The World Bank, the IMF and other UN institutions, “donors”, civil society organisations and the private “donors”, civil society organisations and the private sector are encouraged to contribute to the realisation sector are encouraged to contribute to the realisation of the MDGsof the MDGs

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Appeal to all PhD StudentsAppeal to all PhD Students

ZEF’s mission is ZEF’s mission is

1. to give scientific support to the 1. to give scientific support to the implementation of Agenda 21,implementation of Agenda 21,

2. to contribute to a sustainable 2. to contribute to a sustainable development which ensures a life in development which ensures a life in human dignity for everyone.human dignity for everyone.

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References - Germany References - Germany Internet: Internet: http://www.http://www.bmzbmz.de/en/index.html.de/en/index.html (BMZ / German (BMZ / German

Development Ministry)Development Ministry) The Federal Government (ed.): Partners for the Future – The Federal Government (ed.): Partners for the Future –

German Development Policy in the 21st Century, Berlin German Development Policy in the 21st Century, Berlin 2003.2003.

BMZ (ed.): The German Government's 12th Development BMZ (ed.): The German Government's 12th Development Policy Report, Bonn 2005 Policy Report, Bonn 2005

Franz NuschelerFranz Nuscheler: Lern- und Arbeitsbuch Entwicklungs-: Lern- und Arbeitsbuch Entwicklungs-politik (Development Policy Textbook and Manual), 5th politik (Development Policy Textbook and Manual), 5th completely rev. ed., Bonn 2004.completely rev. ed., Bonn 2004.

Jürgen H. Wolff: Jürgen H. Wolff: Development assistance. A helpful Development assistance. A helpful business? – An attempt to stake stock, Münster 2005.business? – An attempt to stake stock, Münster 2005.

OECD/DAC:OECD/DAC: Peer Review of Germany’s development co- Peer Review of Germany’s development co-operation policy, Paris 2006. operation policy, Paris 2006.

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The development policy The development policy of the Federal Republic of Germanyof the Federal Republic of Germany

An independent area of German foreign policy An independent area of German foreign policy (“(“Development policy is a distinct component of our overall German foreign policy” – Coalition Agreement Nov 2005)

Formulated and executed by the Formulated and executed by the Federal Federal Ministry for Economic Cooperation and Ministry for Economic Cooperation and DevelopmentDevelopment (with the corresponding (with the corresponding Bundestag Committee as parliamentary Bundestag Committee as parliamentary counterpart) counterpart)

Carried out by implementing organisationsCarried out by implementing organisations

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The Agreement of the Great Coalition:The Agreement of the Great Coalition: The aims of future government activities in the field

of development cooperation will be: 1. contributing to reduce poverty worldwide, 2. safeguarding peace and preventing conflicts, 3. protecting the environment and preserving the

natural resource base, 4. promoting democracy, the rule of law and good

governance, gender equality and human rights,5. shaping globalisation in a just way. To this end, we will create conditions at interna-

tional and national level which allow globally sustainable development.

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Africa will continue to be a priority area of German development policy; other regions, too, will be able to count on Germany as a reliable partner.

The Coalition Agreement makes it clear that the new government will stand by the commitment made in the spring, to increase funding for development cooperation to 0.7% of gross national income by 2015. (0.33% by 2006, 0.51% by 2010).

Development policy concerns will continue to be taken account of in the field of agricultural, economic, foreign and security policy.

The reforms of European development policy and of the multilateral institutions will continue.

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Specific challenges – interestsSpecific challenges – interests

International terrorismInternational terrorism Civil wars Civil wars Failing, weak states Failing, weak states Environmental damages, climate change, soil Environmental damages, climate change, soil

erosionerosion Inequalities created by globalisation and social Inequalities created by globalisation and social

dumping dumping

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German development cooperation German development cooperation

Orientations: Orientations:

> internationally agreed goals > internationally agreed goals

> the Millennium Declaration and the 8 MDGs > the Millennium Declaration and the 8 MDGs (Programme of Action 2015)

> the Monterrey Consensus > the Monterrey Consensus

> the Johannesburg Plan of Implementation> the Johannesburg Plan of Implementation

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of actionof action

international level

partner country level

Germany, Europe and other industrialized countries

Three levelsThree levels

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Multilateral cooperation Multilateral cooperation

40-50% of German ODA> EU, World Bank/IDA, UN, Regional Banks40-50% of German ODA> EU, World Bank/IDA, UN, Regional Banks

Multilateral cooperation is needed to help Multilateral cooperation is needed to help solve the increasingly urgent global solve the increasingly urgent global development problems:development problems:

in particular poverty (PRSPs), HIV/AIDS, in particular poverty (PRSPs), HIV/AIDS, climate change, the threat to biodiversity, climate change, the threat to biodiversity, desertification, unstable financial markets.desertification, unstable financial markets.

It plays an active part in shaping global It plays an active part in shaping global structures (global governance).structures (global governance).

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Germany's commitment within multinational Germany's commitment within multinational institutions goes beyond the development-institutions goes beyond the development-policy dimension, in the narrow sense. policy dimension, in the narrow sense.

Peace, security, worldwide stability and Peace, security, worldwide stability and growth, placing international relations on a growth, placing international relations on a sound legal basis and the realisation of sound legal basis and the realisation of universal values are objectives and interests of universal values are objectives and interests of the German government. the German government.

Since unification (1990) Germany has taken a Since unification (1990) Germany has taken a high-profile role within multilateral high-profile role within multilateral institutions and plays an active part in shaping institutions and plays an active part in shaping global structures.global structures.

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Bilateral official development cooperation Bilateral official development cooperation 50-60 % of German ODA > to more than 100 developing countries 50-60 % of German ODA > to more than 100 developing countries (from LLDCs to ‘anchor countries’)(from LLDCs to ‘anchor countries’) and to dev. countries related activities and to dev. countries related activities

The cooperation measures agreed upon in the The cooperation measures agreed upon in the government-to-government agreements form one government-to-government agreements form one pillar of German development cooperation with pillar of German development cooperation with partner countries. partner countries.

The second pillar consists of the activities proposed The second pillar consists of the activities proposed by non-governmental organisations and carried out in by non-governmental organisations and carried out in the partner countriesthe partner countries

The German Länder/States and municipalities are The German Länder/States and municipalities are supporting the German DC efforts by own supporting the German DC efforts by own contributions.contributions.

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On the basis of economic, social, ecological and (geo-) political On the basis of economic, social, ecological and (geo-) political objectives and interests the BMZ selects objectives and interests the BMZ selects

-- 65 partner countries for comprehensive cooperation -- 65 partner countries for comprehensive cooperation (Afghanistan, China, India, (Afghanistan, China, India, IndonesiaIndonesia, , CambodiaCambodia, , VietnamVietnam; Cameroon, Egypt, G; Cameroon, Egypt, Ghanahana, , KenyaKenya, , Mali, Morocco, Namibia, Rwanda, South Africa, Tanzania; Algeria, Morocco, Jordan, Yemen; Mali, Morocco, Namibia, Rwanda, South Africa, Tanzania; Algeria, Morocco, Jordan, Yemen;

Bolivia, Brazil, Cuba, Costa Rica, El Salvador, Nicaragua, Peru; Turkey)Bolivia, Brazil, Cuba, Costa Rica, El Salvador, Nicaragua, Peru; Turkey)

-- 9 potential partner countries -- 9 potential partner countries (Sierra Leone, Zimbabwe, Iran, Haiti)(Sierra Leone, Zimbabwe, Iran, Haiti)

-- 18 transform/transition countries -- 18 transform/transition countries (Georgia, Kazakhstan, Uzbekistan, (Georgia, Kazakhstan, Uzbekistan, Tajikistan, Tajikistan, Ukraine, Albania, Serbia, MacedoniaUkraine, Albania, Serbia, Macedonia))

The internal framework conditions are taken into account, as are the The internal framework conditions are taken into account, as are the country's own efforts in the field of developmentcountry's own efforts in the field of development

There is no consistent conditionalisation (political conditionality) There is no consistent conditionalisation (political conditionality)

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The BMZ-formulated rationale and objectives for German development policy constitute the basis for the aid channelling organisations

Kreditanstalt für Wiederaufbau (KfW – Frankfurt/Main) - the KfW development bank is the German institution responsible for FC.

DEG (Köln/Cologne), a subsidiary of KfW banking group - its aim is to promote growth in developing and transition countries through private sector development.

GTZ - Deutsche Gesellschaft für technische Zusammenarbeit (Eschborn, Frankfurt) is the TC channelling organisation.

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The German Development Service (DED - Bonn) operates as a personnel cooperation service within the scope of the German government’s TC activities. It seconds human resources, but does not implement any projects of its own; i.e. it assigns experts on demand from partner countries to institutions and organisations in these countries. On top of this, DED also promotes local organisations through grants.> Civil Peace Service

InWEnt GmbH – German Capacity Building International (Bonn) is a public-benefit organisation for international human resources development, upgrading and dialogue. InWEnt implements upgrading measures to prepare experts for development cooperation. Furthermore, it also organises upgrading programmes for partner experts.

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Non-governmental cooperationNGOs get some 500 mio. € p.a.– own funds ( private donations) amount to 1 bio. €

VENRO, the Association of German development non-governmental organisations (Bonn), is the umbrella organisation of 100 independent and church related NGOs working in the fields of development cooperation, emergency assistance, development education, and advocacy.

Some VENRO-members (BMZ / EU grants + donations):- German Agro Action (DWHH - Bonn)- The protestant Church Development Service (EED - Bonn)- Misereor, part of the Catholic Central Agency

for Development Aid (KZE - Aachen)

PS: The Centre for International Cooperation (CIC) in the Bonn region has taken on shape. More than 150 organisations have set up their headquarters in Bonn.

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Political foundations:

The political foundations promote institutions and social groups in developing and transition countries:

1. Konrad Adenauer Foundation (KAS),

2. Friedrich Ebert Foundation (FES),

3. Friedrich Naumann Foundation (FNS),

4. Hans Seidel Foundation (HSS),

5. Heinrich Böll Foundation (HBS)

6. Rosa Luxemburg Foundation (RLS)

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EvaluationsEvaluations Self-evaluations and independent evaluations are Self-evaluations and independent evaluations are

systematic assessments of ongoing or completed aid systematic assessments of ongoing or completed aid activities, their design, implementation and results, activities, their design, implementation and results, including impacts. including impacts.

The results are of high importance:The results are of high importance: - They enable the BMZ, parliament and the public to - They enable the BMZ, parliament and the public to look at the past: what has been achieved for the people look at the past: what has been achieved for the people of Africa, Asia, Latin America and Eastern Europe? of Africa, Asia, Latin America and Eastern Europe? - They help the BMZ, development partners and the - They help the BMZ, development partners and the implementing organisations to look ahead: how can implementing organisations to look ahead: how can German development cooperation be improved and German development cooperation be improved and continue to respond well to challenges in future?continue to respond well to challenges in future?

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DAC DAC CriteriaCriteria for Evaluating Development Assistance for Evaluating Development Assistance

1.1. Relevance: Relevance: Doing the right thing.Doing the right thing. The extent to which the aid activity The extent to which the aid activity is suited to the priorities and policies of the target group, recipient and donor.is suited to the priorities and policies of the target group, recipient and donor.

2.2. Effectiveness: Effectiveness: Achieving the objectivesAchieving the objectives. . A measure of the extent to A measure of the extent to which an aid activity attains its objectives.which an aid activity attains its objectives.

3.3. Impact: Impact: Achieving the expected results and the ovearching Achieving the expected results and the ovearching objectives. objectives. The positive and negative changes produced by a development The positive and negative changes produced by a development

intervention, directly or indirectly, intended or unintended.intervention, directly or indirectly, intended or unintended.

4.4. Efficiency: Efficiency: Realising cost-effectivenessRealising cost-effectiveness. . Efficiency measures the Efficiency measures the

outputs in relation to the inputs.outputs in relation to the inputs.

5.5. Sustainability: Sustainability: Ensuring durability.Ensuring durability. Sustainability is concerned with Sustainability is concerned with measuring whether the benefits of an activity are likely to continue after donor measuring whether the benefits of an activity are likely to continue after donor funding has been withdrawn. funding has been withdrawn.

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German development cooperation achieved German development cooperation achieved good, mixed resultsgood, mixed results

Most of the projects and programmes are Most of the projects and programmes are successful successful (KfW Evaluation Report 2006 – 177 projects in 57 (KfW Evaluation Report 2006 – 177 projects in 57 countries / financing volume of EUR 6.3 bio: 71 % of the projects)countries / financing volume of EUR 6.3 bio: 71 % of the projects)

About one fifth did not reach the expected results About one fifth did not reach the expected results (KfW: 17 % slightly insufficient despite having positive impacts; 12 (KfW: 17 % slightly insufficient despite having positive impacts; 12 % insufficient) % insufficient)

In some cases a total failure In some cases a total failure (KfW: 1 project)(KfW: 1 project)

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Evaluation TC – GTZEvaluation TC – GTZPricewaterhouseCoopers/PwC 2003 – a major international accounting and consulting firmPricewaterhouseCoopers/PwC 2003 – a major international accounting and consulting firm

Main findings of the report for July 2002 until July 2003:Main findings of the report for July 2002 until July 2003:

67 of the 100 evaluated projects will reach the targets.

11 “risk”-projects will have great difficulties to reach the targets due to insufficient partner efforts and to worsened framework conditions.

Complaints: The indicators for the project objectives are too vague; in one third of all projects a clear judgement is not possible.

The GTZ learned the lessons stemming from the evaluations, but the necessary process of correction often took too much time.

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Peer Reviews of DAC Members – Germany 2005Peer Reviews of DAC Members – Germany 2005

Since the 2001 DAC Peer Review, the process of Since the 2001 DAC Peer Review, the process of change in Germany’s approach to development co-change in Germany’s approach to development co-operation has gained momentum enabling it to adapt to operation has gained momentum enabling it to adapt to the evolving international context regarding the evolving international context regarding development policy and practice, while at the same development policy and practice, while at the same time taking into consideration DAC recommendations. time taking into consideration DAC recommendations.

Like most other donors, Germany has committed to Like most other donors, Germany has committed to increase its Official Development Assistance (ODA) in increase its Official Development Assistance (ODA) in support of the Millennium Development Goals (MDGs) support of the Millennium Development Goals (MDGs) and to improve the quality of aid in line with the 2005 and to improve the quality of aid in line with the 2005 Paris Declaration on Aid Effectiveness. Paris Declaration on Aid Effectiveness.

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RecommendationsRecommendations1.1. Greater efforts towards a consistent approach of the Greater efforts towards a consistent approach of the

poverty reductionpoverty reduction agenda agenda

2.2. Streamlining the institutional settingStreamlining the institutional setting and the multi- and the multi-organisational German dev. cooperation system (by organisational German dev. cooperation system (by abolishing the increasingly artificial distinction between abolishing the increasingly artificial distinction between financial and technical co-operation)financial and technical co-operation)

3.3. Ensure a Ensure a better public understandingbetter public understanding of development of development issues (the fulfilment of international commitments will issues (the fulfilment of international commitments will require broad-based support within the government and require broad-based support within the government and civil society, building on political foundations, church-civil society, building on political foundations, church-based organisations and NGOs)based organisations and NGOs)

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1.1. Adoption of an Adoption of an ODA growth ODA growth implementation planimplementation plan

2.2. Enhancing the Enhancing the coherence coherence for development for development by a clearer and more operational BMZ by a clearer and more operational BMZ policy statement policy statement

3.3. Need for an Need for an integrated approach of integrated approach of humanitarian policyhumanitarian policy providing guidance on providing guidance on civil-military relations, disaster risk civil-military relations, disaster risk reduction, environmental and social aspectsreduction, environmental and social aspects

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One year of development policy under the One year of development policy under the Great Coalition Great Coalition

according to BMZ Minister Heidemarie Wieczorek-Zeulaccording to BMZ Minister Heidemarie Wieczorek-Zeul

A) Poverty reduction: Giving new hope to A) Poverty reduction: Giving new hope to many people many people

- Microfinance- Microfinance- Promoting women in the private sector - Promoting women in the private sector - Public-private partnerships- Public-private partnerships- Contributions to fairer world trade - Contributions to fairer world trade - HIV/AIDS: production of generic drugs - HIV/AIDS: production of generic drugs

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B) Successful reconstruction under difficult B) Successful reconstruction under difficult circumstances circumstances

- Prospects and hope for the people of Afghanistan - Prospects and hope for the people of Afghanistan

C) Quick emergency assistance for people in crisis C) Quick emergency assistance for people in crisis situations situations

- Middle East: Quick assistance for Lebanese civilians - Middle East: Quick assistance for Lebanese civilians - Comprehensive assistance for earthquake survivors in - Comprehensive assistance for earthquake survivors in

Kashmir region Kashmir region

D) Efforts for peace and democracy D) Efforts for peace and democracy - Congo: Democratization process in the public eye - Congo: Democratization process in the public eye - Caucasus Initiative: Achieving peace through regional - Caucasus Initiative: Achieving peace through regional

cooperation cooperation

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E) Protecting the environment and stopping E) Protecting the environment and stopping climate change climate change

- Acceleration of German efforts for renewable - Acceleration of German efforts for renewable energy energy

- Successful establishment of sustainable energy - Successful establishment of sustainable energy path at World Bank and development banks path at World Bank and development banks

F) More financing for developmentF) More financing for development

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EUEU http://http://europaeuropa..eueu..intint//commcomm/development/index_en./development/index_en.htmhtm (European (European

Community’s Development) Community’s Development) European CommissionEuropean Commission: Annual report 2006 on the European : Annual report 2006 on the European

Community’s development po licy and the implementation of Community’s development po licy and the implementation of external assistance in 2005, Luxemburg 2006. external assistance in 2005, Luxemburg 2006.

http://www.http://www.euforiceuforic.org.org (platform for information, (platform for information, communication, and debate on Europe's development communication, and debate on Europe's development cooperation)cooperation)

U. Holtz:U. Holtz: Partnership for the 21st Century - A Preliminary Partnership for the 21st Century - A Preliminary Assessment of the EU-ACP Agreement, in: D+C (Development Assessment of the EU-ACP Agreement, in: D+C (Development and Cooperation) 2/2000, p. 8-12.and Cooperation) 2/2000, p. 8-12.

OECD/DAC:OECD/DAC: Peer Review of the European Community, Paris Peer Review of the European Community, Paris 2002. 2002.

ECDPM/ICEI/ODIECDPM/ICEI/ODI: Assessment of the EC Development Policy – : Assessment of the EC Development Policy – DPS study report, Brussels, February 2005.DPS study report, Brussels, February 2005.

Sven Grimm:Sven Grimm: EU Development Cooperation: Rebuilding a tanker EU Development Cooperation: Rebuilding a tanker at seaat sea ( (FES Berlin, Briefing Papers), Berlin, June 2006 FES Berlin, Briefing Papers), Berlin, June 2006 Compulsory for allCompulsory for all

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EU Development CooperationEU Development Cooperation

The European Community - a unique donor > dual role in development:1. bilateral donor 2. co-ordinating framework for European Union (EU) – nowadays 25 – Member States

The European Commission - the executive body, accountable to the European Parliament and the Member States meeting in Council

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EU - a major global actor both economically EU - a major global actor both economically and politically and politically

- Largest trading block in the world taking up 38 % of world exports, - Producing 36 % of the world’s GDP - Financing 50 % of the World’s Foreign Direct Investment- The world’s leading aid donor (55.7 billion USD of worldwide ODA 106.5 bn in 2005 (= 52,35 %).

- influential in global governance institutions such as the WTO where it holds 27 % of the votes on the board and is the main financier of key policies and programmes and the UN where it is also the main financial contributor

- the main trading partner to many developing countries with 47 % of its total imports and around 66% of its agricultural imports coming from the developing world (more than 48 bn euros) in 2003

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DEVELOPMENT COOPERATION - EC Treaty Article 177

1. Community policy in the sphere of development cooperation, which shall be complementary to the policies pursued by the Member States, shall foster:- the sustainable economic and social development of the developing countries, and more particularly the most disadvantaged among them,- the smooth and gradual integration of the developing countries into the world economy,- the campaign against poverty in the developing countries.

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2. Community policy in this area shall contribute to the general objective of developing and consolidating democracy and the rule of law, and to that of respecting human rights and fundamental freedoms.

3. The Community and the Member States shall comply with the commitments and take account of the objectives they have approved in the context of the United Nations and other competent international organisations.

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Article 180

1. The Community and the Member States shall coordinate their policies on development cooperation and shall consult each other on their aid programmes, including in international organisations and during international conferences. They may undertake joint action. Member States shall contribute if necessary to the implementation of Community aid programmes.

2. The Commission may take any useful initiative to promote the coordination referred to in paragraph 1.

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EU-Treaty Article 3

The Union shall in particular ensure the consistency (coherence) of its external activities as a whole in the context of its external relations, security, economic and development policies.

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Implementation Implementation

• the European Commission, Directorate-General for Development;

• EuropeAid co-operation Office (the handling of the entire project cycle, i.e. from project identification to the evaluation, is now fully in the hands of EuropeAid)

• the other external services of the European Commission: ECHO (Humanitarian Aid), DG Relex, DG Trade…

• the EC Delegations around the world;• the 25 EU Member States;• NGOs and the other actors of the European civil

society.

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Echo's mandateEcho's mandateEuropean Community Humanitarian Aid OfficeEuropean Community Humanitarian Aid Office

Since 1992, ECHO has funded humanitarian aid in Since 1992, ECHO has funded humanitarian aid in more than 85 countries. Its grants cover emergency more than 85 countries. Its grants cover emergency aid, food aid and aid to refugees and displaced aid, food aid and aid to refugees and displaced persons worth a total of more than € 500 million per persons worth a total of more than € 500 million per year.year.

The aid is channelled through EC NGOs (60 %), UN The aid is channelled through EC NGOs (60 %), UN (28%), Intern. Organisations (9%) and EC Org/Gov (28%), Intern. Organisations (9%) and EC Org/Gov Org/others (3%). Org/others (3%).

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Regional distribution of aid to developing countries (ODA) in 2005

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Sectoral breakdown of ODA managed by the EC in 2005

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78 ACP States78 ACP States48 in Africa48 in Africa

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15 in the Caribbean ( + Cuba, ACP group member since Dec 2000)15 in the Caribbean ( + Cuba, ACP group member since Dec 2000)

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15 in the Pacific incl. East Timor since 200315 in the Pacific incl. East Timor since 2003

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The new ACP-EU partnership, signed on 23rd of June 2000 in The new ACP-EU partnership, signed on 23rd of June 2000 in Cotonou, Benin, was concluded for a twenty-year period from Cotonou, Benin, was concluded for a twenty-year period from

March 2000 to February 2020. It entered into force on April 1, 2003.March 2000 to February 2020. It entered into force on April 1, 2003.

The Cotonou Agreement The Cotonou Agreement is based on five is based on five interdependent pillars: interdependent pillars:

1.1. an enhanced political dimension, an enhanced political dimension, 2.2. increased participation, increased participation, 3.3. a more strategic approach to cooperation focusing a more strategic approach to cooperation focusing

on poverty reduction, on poverty reduction, 4.4. new economic and trade partnerships,new economic and trade partnerships,5.5. improved development/financial cooperation.improved development/financial cooperation.

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The Cotonou Agreement constitutes the legal The Cotonou Agreement constitutes the legal basis for development aid provided by the basis for development aid provided by the Union to the ACP States via the resources of Union to the ACP States via the resources of the European Development Fund (the European Development Fund (EUR 13.5 EUR 13.5 billion over a period of five years / EDF).billion over a period of five years / EDF).

The institutions of Cotonou are the Council of The institutions of Cotonou are the Council of Ministers, the Committee of Ambassadors and Ministers, the Committee of Ambassadors and the Joint Parliamentary Assemblythe Joint Parliamentary Assembly..

It provides for a revision clause which foresees It provides for a revision clause which foresees that the Agreement is adapted every five years.that the Agreement is adapted every five years.

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Objectives of the Objectives of the ACP-EUACP-EU partnership partnership

1.1. Contributing to sustainable development and Contributing to sustainable development and poverty eradicationpoverty eradication

2.2. Promoting a stable and democratic political Promoting a stable and democratic political environment environment

3.3. Contributing to peace and human security Contributing to peace and human security 4.4. Promoting regional and sub-regional integration and Promoting regional and sub-regional integration and

the gradual integration of the ACP countries into the the gradual integration of the ACP countries into the world economyworld economy

These objectives and the Parties’ international These objectives and the Parties’ international commitments shall be tackled through an integrated commitments shall be tackled through an integrated approach taking account at the same time of the approach taking account at the same time of the political, economic, social, cultural and political, economic, social, cultural and environmental aspects of development. environmental aspects of development.

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Revision of the Cotonou Agreement 2005

cooperation in countering proliferation of weapons of mass destruction and in the fight against terrorism

prevention of mercenary activities possibility to use resources for policies to promote

peace and to manage and settle conflicts, including post-conflict support

inclusion of a reference to the MDGs promotion of the participation of young people in

public life and encouragement of exchanges and interaction between ACP and EU youth organisations

insertion of provisions to facilitate non-state actor access to indicative programme resources

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DAC Peer Review – EC 2002DAC Peer Review – EC 2002 A major success with policy coherence has been

achieved through the “Everything But Arms” initiative, opening access to the EU market to the least developed countries.

In contrast, there are other coherence issues to address in the relations between development policy and the European Community’s internal policies, for example the Common Agricultural Policy and the Common Fisheries Policy.

These cases show how the pursuit of the legitimate interests of the European Community may have potentially adverse consequences for the legitimate development interests of partner countries, despite Treaty obligations to pursue coherence with development policy.

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Recommendations

a) Strengthen the European Community’s comparative advantage in promoting development

b) Promote the sustainability of poverty reduction

c) Improve policy coherence and develop the institutional framework for coherence

d) Strengthen the focus on results and aid effectiveness

e) Improve the implementation of the aid programme with a view to enhancing country ownership

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Evaluation results per sector

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Reality of Aid 2006Reality of Aid 2006

Prior to the DAC Senior Level Meeting in December 2004, NGOs working in the Global Security and Development Network (and many Reality of Aid network members) argued that

“financing assistance in the area of military reform, peacekeeping and peace enforcement operations for already small and overstretched ODA budgets would inevitably be at the expense of the resources required for achieving the Millennium Development Goals (MDGs), sustainable development, social justice and human rights”.

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NGO critics NGO critics

The European Commission is pursuing an aggressive The European Commission is pursuing an aggressive policy in regard to the poorest developing countries.policy in regard to the poorest developing countries.

The commissioners are urging former colonies in The commissioners are urging former colonies in ACP to take extensive steps towards liberalisation to ACP to take extensive steps towards liberalisation to conquer additional markets.conquer additional markets.

These steps will have detrimental consequences and These steps will have detrimental consequences and stabilise authoritarian regimes.stabilise authoritarian regimes.

EU’s main aim is to protect the “fortress Europe” EU’s main aim is to protect the “fortress Europe” from being ‘overflowed’ by illegal immigrants. from being ‘overflowed’ by illegal immigrants.

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The European Consensus on Development, 2005The European Consensus on Development, 2005 Joint statement of the Council, Parliament and the Commission

Key principlesKey principles central to an effective common central to an effective common development policy striving for poverty eradication in its development policy striving for poverty eradication in its multidimensional aspects and sustainable developmentmultidimensional aspects and sustainable development:

1.1. Ownership & partnership Ownership & partnership

2.2. Political dialogue Political dialogue

3.3. Participation of civil societyParticipation of civil society

4.4. Gender equalityGender equality

5.5. Addressing state fragilityAddressing state fragility Delivering more and better aid Delivering more and better aid (increasing financial resources, (increasing financial resources,

more effective aid, coordination and complementarity)more effective aid, coordination and complementarity)

Policy coherence for developmentPolicy coherence for development

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The Commission will make its contribution to implementing thecommon thematic framework by drawing on the experience and

comparative advantages it has gained in nine areas:

1. Governance, democracy, human rights and support for economic and institutional reforms

2. Trade and regional integration

3. Infrastructure, communications and transport

4. Water and energy

5. Social cohesion and employment

6. Human development

7. Rural development, territorial planning, agriculture and food security

8. Environment and sustainable management of natural resources

9. Conflict prevention and fragile states

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New “scramble“ for Africa New “scramble“ for Africa in the post cold war areain the post cold war area

Security and migration aspects, raw materials, new Security and migration aspects, raw materials, new marketsmarkets

EU interestsEU interests UK, F, D UK, F, D USAUSA ChinaChina

African emerging powers (Egypt, Nigeria, South African emerging powers (Egypt, Nigeria, South Africa …; AU, NEPAD…)Africa …; AU, NEPAD…)

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Progresses and unresolved issuesProgresses and unresolved issuesSven Grimm, 2006Sven Grimm, 2006

European cooperation has improvedEuropean cooperation has improved

1.1. Policy clarificationPolicy clarification (European Consensus on (European Consensus on Development, EU Africa Strategy, Country Strategy Papers)Development, EU Africa Strategy, Country Strategy Papers)

2.2. Better implementationBetter implementation (creation of EuropeAid, (creation of EuropeAid, administrative devolution to Commission’s Delegations in administrative devolution to Commission’s Delegations in partner countries)partner countries)

3.3. The intergovernmental The intergovernmental CFSP gained momentumCFSP gained momentum - - the EU’s capacities as an external actor increased the EU’s capacities as an external actor increased (MEDA programme, African Peace Facility…; driving force (MEDA programme, African Peace Facility…; driving force

in international discussions and fora)in international discussions and fora)

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Unresolved issuesUnresolved issues

1.1. Difficulties in the area of coordination Difficulties in the area of coordination (the 25 Member (the 25 Member States are reluctant to renounce development cooperation and to States are reluctant to renounce development cooperation and to accept the Commission’s coordination)accept the Commission’s coordination)

2.2. Internal administrative fragmentation (fInternal administrative fragmentation (fragmented ragmented geographical responsibilities and a politically divisive geographical responsibilities and a politically divisive

distribution of labour)distribution of labour)

3.3. With respect to trade and free market access many With respect to trade and free market access many barriers still exist barriers still exist (strict rules of origin, technical and sanitary (strict rules of origin, technical and sanitary standards) standards)

4.4. Danger that the share of aid channelled through the EC Danger that the share of aid channelled through the EC will decreasewill decrease

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Making globalisation a positive force Making globalisation a positive force for all of humankind for all of humankind

– the European model? – the European model?

1. Politics: Democracy, human rights and the 1. Politics: Democracy, human rights and the rule of law guiding the political sphere rule of law guiding the political sphere

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2. Economy: The Social Market Economy – an 2. Economy: The Social Market Economy – an order that seeks to combine the freedom of the order that seeks to combine the freedom of the market – the law of supply and demand and of market – the law of supply and demand and of competition between free enterprises – with competition between free enterprises – with the imperative of social balance.the imperative of social balance.

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3. The leading paradigm: sustainable human 3. The leading paradigm: sustainable human development development

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Goals of ZEF’s core research and doctoral programs

1. produce and disseminate sound development research that will help reduce poverty and enhance sustainable development

2. support cooperative research with scholars in developing nations

3. use doctoral studies to build greater capacity for improved policy analysis and policymaking in developed and developing countries

4. disseminate its research results beyond the research community

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Thank you Thank you very much very much

for for your kind your kind attentionattentionZEFa PhD Course ZEFa PhD Course

Uwe HOLTZ, November 29, 2006Uwe HOLTZ, November 29, 2006