Sumario: February 13, 2002: Commission calls for increased aid to developing countries (Brussels)
In a Communication to Council adopted today, the European Commission calls on EU Member States to substantially increase their financial aid to developing countries. The report, prepared by the Commission as a contribution to the UN International Conference on Financing for Development that takes place in Monterrey, Mexico, from 18-22 March, also contains recommendations on how to enhance the quality and effectiveness of aid and how to address concerns relating to global public goods.
Additionally, the report proposes initiatives in the area of technical assistance to help developing countries. European Commissioner for Development and Humanitarian Affairs, Poul Nielson, added: "The present crisis will have an impact on economic development world-wide and it will be once again the poorest who will pay the highest price. We must counter this tendency. In this context, the Conference on Financing for Development represents a key opportunity for the international community to
enter into a new global deal on the assumption that a safer world for all will only be possible if there is a strong signal on the renewed commitment to the fight against poverty. Together with successful implementation of the Doha Development Round, it should form the basis of a 'Global Deal' at the World Summit on Sustainable Development in Johannesburg in September."
On 8 November 2001, the Development Council asked the Commission to draft a report within the framework of the preparations in view of the International Conference on Financing for Development that will be held in Monterrey, Mexico from 18-22 March under the auspices of the UN. The Conference will discuss how to finance development in order to achieve the internationally agreed Millennium Development Goals(1) to be met by 2015. The resulting "Communication on the International Conference on
Financing for Development" analyses the trends in Member States development policy and recommends a substantial increase in Official Development Assistance (ODA) over the next few years in order to meet the internationally agreed UN Millennium Development Goals, of which the costs are estimated to require a rapid doubling of ODA.
ODA flows peaked in the 1990s and since then have not followed the rapid growth of GNPs in industrialized countries, at least as a percentage of GNP. In 2000, the volume of ODA to developing countries from members of the Development Assistance Committee of the OECD fell to its lowest level ever, from $56 billion in 1999 to $53 billion in 2000.
The EU and its Member States have reaffirmed several times their commitment to reaching the UN target of 0.7% of GNP, most recently at the European Summits in Göteborg and Laeken. However to date, EU Member States provide an average of 0.33% GNP in ODA (data of 2000) and only four EU countries have met the target of 0.7% GNP: Denmark (1.06), the Netherlands (0.82), Sweden (0.81), and Luxembourg (0.7). While this is above the average for donor countries globally (0.22%/ of GNP) it falls short of
the target necessary to reach the Millennium Development Goals.
The report shows that if by 2006 at the latest, those EU Member States below the 0.7% target reach at least the current EU average of 0.33%, the EU average would rise to approximately 0.39%. In the Commission's view this should be considered as an intermediate target towards reaching the 0.7% final target.
The report also stresses the importance of improving the quality and efficiency of aid by harmonizing policies and procedures and by fully untying all bilateral aid amongst the 15 Member States vis-à-vis their partners in the developing world. The report recommends that the EU continues to work towards the harmonization of operational policies and procedures in and between multilateral and bilateral agencies. This should eventually contribute to a decrease in the transaction costs of
international ODA. Closely linked to aid effectiveness is untying. The EU is engaged in an effective implementation of the OECD/DAC recommendation on the untying of aid to LDCs, and will work on the possibilities of extending untied aid in areas not covered by the recommendation itself.
On global public goods (GPGs), the report suggests that the EU could agree to a participatory process designed to lead to the identification of relevant GPGs. The EU should also make efforts to find innovative sources of financing for the provision of such GPGs, on the basis of the principle of additionality in order to avoid the diversion of existing ODA flows from traditional development assistance.
1)These include eradicating extreme poverty and hunger, achieving universal primary education, promoting gender equality and empowering women, reducing child mortality, improving maternal health, combating HIV/AIDS malaria and other diseases, ensuring environmental sustainability and developing a global partnership for development.
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