Sumario: Speech by EU Commissioner Michel: Setting a new course in co-operation between Europe and Africa (Gaborone, Botswana, 25 February 2006)
Speech by EU Commissioner for Development and Humanitarian Aid, Louis Michel, at the 2006 Regional Programming Seminar in Gaborone, Botswana.
Excellencies, Ministers,
EDF National and Regional Authorizing Officers,
Representatives of the National Authorizing Officers,
Ambassadors of the Members States of the European Union
Other distinguished guests
Ladies and Gentlemen,
Friends,
I am very pleased to be participating alongside with you today in this second regional ACP programming seminar for the 10th EDF.
This new programming exercise and the present Gaborone seminar set a new course in cooperation between Europe and ACP countries, especially on the African continent and more precisely here in the southern African region.
I. New policy initiatives
2005 has been a crucial year for Development. The European Union has been at the forefront of important international initiatives and has played a leading role by taking ambitious new commitments for the future. I am particularly happy to see that development is back at the heart of EU's external action as a result of our joint efforts.
The MDG Package: doing more, better and faster
Our first initiative was the MDG Package: doing more, better and faster.
More … In June 2005, the European Council pledged new ODA targets. We have decided to increase ODA to 0.56 % of EU GNI by 2010 and to 0.7 % by 2015). We have also decided that half of the additional resources that these increases in ODA will bring shall go to Africa.
If Member States deliver on these commitments, this means an additional 23 billion euros per year for Africa by 2015. That is good news.
But we also need to do better and faster…
That is why the MDG Package also recalls EU commitments in the area of aid effectiveness. This is crucial, as more aid will not be productive unless we can work more efficiently as donors.
In this respect, the Commission is preparing an EU Action Plan for aid effectiveness, which would include existing initiatives such as the Donor Atlas, national Road Maps for better coordination and steps towards joint programming.
The European Consensus
In December, the EU adopted, at the highest political level, a new Development Policy Statement which for the first time in history commits the whole Union, meaning the Community and Member States not only as members of the Council, but also as bilateral donors. The new Declaration - namely the European Consensus on development - defines objectives, values, principles and aid modalities that the EU will put at the service of poverty eradication and of the attainment of the MDGs. The European
Consensus provides a solid base for increasing coherence, coordination and aid effectiveness.
The new strategy for Africa
Also in December 2005, the European Council adopted a new Strategy for Africa, which is in fact more than a Strategy - it is a vision.
For the first time, we have one coherent, long-term framework for the relations between Europe as a whole and Africa as a whole, based on common priorities.
I am particularly pleased to stress that this strategy has been prepared in partnership with the African Union and a number of regional organisations, including SADC and I wish to thank you all for this accomplishment and your constructive and rich contributions to the debate.
Why did we need a new EU Strategy for Africa? First and foremost because there was a need to clarify the fundamental basics, or let us say the very essence, of Europe's relations with Africa. There was a need to reflect the new realities of the continent and in particular the new momentum in pan-African governance with the birth of NEPAD and the African Union.
Three key principles - partnership, ownership and dialogue - needed to replace the sense of guilt or charity that had perhaps driven Europe's relationship with Africa in the past.
Against this background, the Strategy rests on three pillars:
The support and strengthening of policies contributing to peace, security and good governance.
The strengthening of all policies enabling the emergence of the sustainable economic growth required to meet the MDGs. (trade, private sector development, interconnectivity)
The promotion and support of further investment in areas directly connected to achieving the Millennium Development Goals (health and education sectors, hygiene and employment conditions)
In 2006, we would like to set in motion plans for a new Infrastructure Partnership and a Euro-Africa Business Forum, which would develop an Action plan to revitalise the private sector.
II. The programming exercise
Today, our common challenge is to consolidate, strengthen and implement this vision.
The programming exercise for EDF 10 needs to be guided by these objectives and allocate resources to national programmes in the sectors concerned.
General principles of the programming exercise
Before going on to discuss some other general aspects of the new programming cycle I would like to recall that 2006 is also the year of the End of Term Reviews of the 9th EDF programmes which will take place in parallel to the 10th EDF programming. This will allow us to seek for synergy between the two processes in that the outcome of the ETR can be fed into, and provide value added for, 10th EDF programming.
As regards programming itself, the major challenge facing us is how to define the most relevant response strategy for the sustainable development of each of your countries and the region as a whole given the different realities at stake. The principal objective is the reduction and eventually the eradication of poverty in particular by achieving the Millennium Development Goals.
Countries and regions retain the prime responsibility for their development. Their strategies as expressed in the 'Poverty Reduction Strategy Documents' or in other national development strategies, provide the basis for the Community response strategy.
We must also ensure that the quality of the aid is improved, that the delivery of aid is more efficient and that its impact is more important and sustainable.
This can be achieved if there is more and better cooperation and coordination among donors. Increased coordination and harmonisation as well as a better division of labour will lead to better complementarity of our interventions and a reduction in transaction costs. A reduction in donor missions and demands for uncoordinated programming documentation and procedures will also reduce the burden on your ministries and agencies.
The Commission is ready to do all it can to assist in this regard - and we in Europe have already taken the important first step through the European Consensus referred to above. We are encouraging our Member States to join in the preparation of joint analyses and we are open to undertaking joint programming with them, and indeed with other donors who so wish.
Regional Integration
This is perhaps an appropriate moment for me to refer to my concerns about the number of regional organisations. The problem is not so much the membership of different organisations but the fact that these organisations have different - even conflicting - agendas and timetables for regional integration generally and in particular for the establishment of Free Trade Areas, Customs Unions etc. This causes a problem for your countries individually in terms of the ownership of the various different
policy options.
Support for regional integration and trade, in anticipation of the EPA negotiations, was already a concentration area in the 9th EDF Regional Indicative Programmes with SADC and with the four organisations making up what we call the ESA (Eastern and Southern Africa) configuration. Under the 10th EDF we wish to concentrate even more on supporting the EPA process. And this is where I am confronted with a major dilemma. Should the Commission tailor its 10th EDF Regional Indicative Programmes to
the two configurations currently negotiating EPAs (i.e. with the seven member SADC group and the 16 member ESA group)? How then do we cover other areas of cooperation in support of other aspects of the organisations policy such as peace and security, the fight against HIV/AIDS, food security etc? We need to address this issue seriously and come up with a decision in due time.
Fundamental aspects of our development policy
I would now like to stress certain aspects that for us are fundamental to our new development policy and which must systematically become part of our programmes of work.
Governance is a central element that must guide our programming dialogues.
Good governance is linked intimately to the processes of democratisation. The progressive consolidation of the links between civil society and the political parties, who represent the interests and aspirations of their citizens, will strengthen these processes and contribute to the objective of good governance.
The risks of violent conflict and recurrent crises remain high. Insecurity and violent conflicts are among the most serious obstacles to the attainment of the Millennium Development Goals. That is why we will continue and indeed intensify our efforts in conflict prevention and in addressing problems linked to state fragility.
Security Sector Reforms must also be paid attention as part of governance programmes and are not necessarily to be limited to post conflict situations when the priority is the demobilisation of former combatants.
Another area of concern is that of natural resources including petroleum and mining. The revenues from such activities must become an important tool in the combat to reduce poverty, for sustainable development, good governance and conflict prevention. The programming dialogue can contribute to greater transparency in the management of natural resources. It can facilitate the efforts of countries where corrective measures need to be undertaken. The EITI Initiative (Extractive Industries
Transparency Initiative) is a model and an approach that must be encouraged and supported.
As I mentioned earlier, the civil society has a role to play. That is why it must also be given the opportunity to participate in the programming process along with governmental and other official actors. Europe's cooperation with the ACP is based on partnership but it must be a partnership where all interested groups have the opportunity to express and debate their points of view.
I would like to say a few words about budget support. I am well aware of the many potential advantages that this form of aid offers to both donors and beneficiaries. I sincerely hope that we can increase the proportion of or aid provided in this way.
However, budgetary support cannot just be provided any which way or in any circumstances
We will examine attentively the quality of public finances and the efforts that are undertaken. We will look very closely at the results of policies in terms of providing concrete improvements in the living conditions of the population. And we will pay close attention to the IMF's evaluations of a country's macro economic performance.
The quality of public finances, the existence of a policy in favour of poverty reduction, and the existence of a satisfactory macro economic framework will continue to constitute the eligibility criteria for deciding whether or not to provide budget support.
We are, of course, willing to provide you with support to assist you in carrying out the necessary reforms. We are ready to listen to the preoccupations of governments but also to those of civil society including their concerns about corruption. We will also listen to other donors so as to facilitate coordination and harmonisation.
Where there may be cases of serious difficulties I will become personally involved in informing you so as to find, in a constructive way, the means to overcome them. But it must also be quite clear that we are willing to take the time that may be necessary to have the required conditions met, to reduce budgetary support, and even, in the most serious cases, to stop it completely, if the performances are not up to scratch.
The initial baseline allocation of the indicative programmes that will be indicated to each of you may be increased by an incitative allocation that will be determined in function of performance in the areas of governance, a demonstrable good performance in absorbing our aid, as well as your commitments to political, economic and social reforms as determined during the programming dialogue.
Trade is another element that must guide our programming dialogues.
While trade is an indispensable instrument for growth and poverty reduction, we all know that trade reforms do not automatically lead to sustainable and equitable development. That is why the EU remains committed to the development dimension of the Doha Agenda.
We are pleased that the main achievement of the Hong Kong Ministerial conference was the acceptance by other developed countries to follow the EU some of the way in granting Duty Free/ Quota Free to products originating in LDCs. However, there still remain quite a number of other things to do on development, notably as regards Aid for Trade and countering the effects of preference erosion.
SADC underlined the importance of addressing issues related to the strengthening of administrative capacity and supply-side constraints, emphasizing that targeted development assistance would be important. The EC has indicated that the recent signing of the EPA Support Facility in Gaborone is a clear indication of its commitment in this regard. Moreover the EC made it clear that that in terms of trade facilitation and customs cooperation, these are issues that must be addressed within regional
and national indicative programmes to ensure a coherent region wide response.
Regional programming for EDF 10 will be radically different as compared to the past. While, under EDF 9, a link was established between the EPA process, this time the EPA is at the center of joint programming. Ideally in my view therefore, the RIP configurations should correspond to the EPA configurations.
However, in the Southern African region as the situation is complex and there are certain arrangements that I find hard to understand.
I look forward to hearing your views on them.
I would also like to draw your attention to migration, as another element that must guide our programming dialogues.
Migration has only recently emerged as an important theme in North/South relations. The present globalisation process has led to an acceleration of international migratory flows and this will have an increasing impact in terms of development. Annual revenue transfers are three times greater than Official Development Aid (ODA). But unfortunately migration has other less positive side effects: human and children trafficking, illegal migration, refugees, and the brain drain.
Some specific regional issues
Let me now turn to some of the particular issues of the Southern African region.
The first and foremost development obstacle in the region is the HIV/AIDS epidemic: in contrast with the trends of other sub-regions, in Southern Africa the epidemic continues to grow.
The EC will provide its response to HIV/AIDS in Southern Africa within the policy framework of the EU Programme for Action to confront HIV/AIDS, Tuberculosis and Malaria, adopted in 2005. In particular, the EU will focus on four main priority areas at country level, namely strengthening human resource capacity to mitigate brain-drain; investing in equitable social services; collecting and monitoring data on HIV/AIDS; and developing procurement policies and practices for pharmaceutical products
and commodities.
A related problem due to the HIV/AIDS epidemic, is the increasing number of orphans in all of the countries in the SADC region (at present 5 million and expected to double by 2010), which makes them vulnerable to Child trafficking.
The EU is will continue to fight trafficking, and will take specific actions in the coming months to address this issue.
Another specific regional issue is the food security. The main structural causes of these crises, which have exacerbated the vulnerability of a population already in the throes of pervasive and structural poverty, are not only due to adverse weather conditions but also due to the political and economic circumstances in each of the affected countries and their combined impact in a regional context.
The Commission's approach to respond to these crises should not be limited to food aid and corresponding relief measures. It should be enlarged to include more broadly based and longer term developmental aspects, aiming at the progressive eradication of food insecurity as the basic dimension of poverty throughout the Southern African region.
The new EU Strategy on Africa indicates that support to agriculture should be re-launched after a decade of declining investments. In fact, agriculture is the mainstay of rural economy in many African countries and contributes not only to food availability, which cannot be a problem, but to access as prime source of income for the poor.
Within this context and experiences, our short and medium approach should be within the framework of existing EC and SADC policies and tailor-made approaches should be devised for each country, given the extreme diversity of situations in the region.
In the short-term, a particular attention should be paid to vulnerability and the complexity of factors that have contributed to the crisis.
In the medium-term, to respond to the structural causes of crises and prevent their recurrence, analysis and follow-up of the situation should become a permanent process.
Before I conclude I would like to say a few words about SADC as an Organisation as I have followed the major restructuring exercise it recently undertook.
Coming from the European Commission that has also undergone a fundamental programme of reform and restructuring, I am well placed to appreciate the challenges that such an exercise faces.
Such an enterprise can only succeed if all its different components give it their full support. The Secretariat can only perform its new tasks if you - its Members - give it the appropriate means in terms of human and financial resources.
The Commission and, I am convinced, other friends of SADC, are willing to support capacity building for the Secretariat. But we cannot substitute for the efforts that SADC Member States have to make themselves.
I will end here and look forward having the opportunity of deepening these exchanges. Thank you all for your attention.
The Commission has on many occasions raised with the SADC Secretariat and with the SADC troika its concerns about the poor performance of implementation of both the EDF 8 and 9 RIPS. Indeed that is why during the Regional Mid Term Review exercise I took the decision to propose a reduction in SADC's 9th EDF RIP during the Mid Term Review to a level that I believe is manageable within the requirements of the Financial Regulation and ensures that the remaining funds will be decided before the cut
off date of 31 December 2007. I also proposed to transfer responsibility for the road programmes from the RAO to the relevant NAOs. I am pleased to note that you, as our SADC partners, understood that such a decision was necessary given the Secretariat's present limited capacity.
I am also pleased to learn that the Executive Secretary has indicated his willingness, once the Secretariat is fully staffed, to engage with us to carry out an institutional audit with a view to make possible the use of the Contribution Agreement instrument in the future.
The EU Strategy for Africa foresees the launching of a governance initiative in support of the African Peer Review Mechanism (APRM) and to support the efforts of the countries concerned in implementing the reforms that will have been identified by these reviews.
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