Speech by EU Commissioner Michel - Development policy of the EU: A common vision to eradicate poverty

Sommaire: Speech by EU Commissioner Michel - Development policy of the EU: A common vision to eradicate poverty (28 November 2005: London)

Speech by Louis MICHEL, European Commissioner for Development and Humanitarian aid, Palace of Westminster, London

The development policy of the European Union: A common vision to eradicate poverty

Lords & Ladies, Honourable Members of Parliament, Ladies & Gentlemen,

After 30 years as a Member of Parliament myself, I am delighted to be back among you in the House of Commons, surrounded by MPs from all over the European Union.

This meeting comes at a most opportune moment. After months of hot debate, last Tuesday, the Council adopted for the first time a common vision for the future of EU Development Policy, a vision to eradicate poverty.

Today I want to share my thoughts with you on the importance of the Council's recent conclusions, both on the European Consensus and on the EU Strategy for Africa.

The European Parliament has played an active and important role in this process. Key resolutions helped advance and enrich the debate. Now we hope that the European Parliament will officially adopt the new Development Policy Statement. This would be an historic step - to have a true tripartite European Consensus on the future of EU Development Policy.

And I cannot stress enough what a breakthrough this is for EU Development Policy. For the first time in 50 years, the Council and the 25 Member States have agreed on a common vision for actions, not just multilaterally, but also bilaterally. At last, we have a common set of values, principles, objectives and means to truly combat poverty.

This new Declaration is bang up-to-date. It reflects the important changes of the last five years. After the crucial Millennium Review Summit, the key aim of this Declaration is a vision of how to meet the Millennium Development Goals. It is adapted to a Europe of 25 Member States. And it addresses the key challenges of security post 9/11 and globalisation.

This European Consensus makes the eradication of poverty the central aim of the European Union. It underlines the need for better coordination between the Member States and the Community to ensure that collectively we support the reform strategies of our ACP partners. And we emphasise the need for greater coherence between the policies of the European Union.

As you know, the Policy Statement has two main parts.

The first part sets out the vision for the Development Policy of the European Union. The key point is that for the first time we have a common vision. After 50 years, we have agreed on common aims. We have committed to common values and principles. And we have a common vision of how to achieve change. In May the Council agreed on a significant increase in the volume of aid - which amounts to an extra €20 billion per year. Now we have agreed to enhance the effectiveness of that aid. And to ensure greater coherence between development policies and other EU policies.

The driving principle is the eradication of poverty. This is the top priority on the international agenda. And in September, all the Heads of State gathered in New York to underline their commitment to achieving the MDGs. Human rights and good governance are central to this aim, as set out in the UN Millennium Declaration.

Let me recall the five key principles which we have agreed are central to an effective common development policy.

First - ownership & partnership.

Second - political dialogue.

Third - civil society.

Fourth - gender equality.

Fifth - addressing state fragility.

Lastly, I would underline the common commitment to turn ambitious vision into effective action. This means delivering more and better aid. And ensuring that other EU policies fully encapsulate development priorities.

The aim of the second part is to show how at the Community level we will put this Development Policy into practice. This is a new vision, updating and replacing the Statement of November 2000.

This sets out a common vision of where the Community has a comparative advantage. Of course, the Commission is not a classic development agency. The Commission is a political body in its own right.

In my view, the Commission's added value is in taking forward the European agenda. As such, we will take initiatives to advance on harmonisation and complementarity.

Of course, the Commission is active in the full gamut of developing countries. This means we work with least-developed countries, with middle income countries and also with fragile states. To do this successfully, we need the possibility to use a wide range of instruments in a broad range of areas.

Let me highlight the main areas we will aim to cover:

trade & regional integration,

environment,

infrastructure and communication technologies, water & energy, rural development and food security, good governance conflict prevention human development, & social cohesion.

Let me immediately reassure the doubters among you. We will fully uphold the principle of concentration of aid. Support in any given country will be limited to a small number of priority areas. But of course, the choice of areas will vary from country to country. And we will only work in areas where we have a real comparative advantage. For example, if the Swedish have particular expertise in education in a given country, the Community will focus on other priorities.

In terms of instruments, I would like to highlight the particular importance of budgetary aid. The Community is widely recognised as being an innovative force in this area. Its approach was commended in a recent evaluation by the British Development Ministry, DfID.

There are clear advantages.

First, it provides a strong leverage in the political dialogue to press governments for human rights and democracy.

It is more predictable.

It also gets round the lack of absorption ability.

It ensures ownership. It promotes reform. And it is a quick and effective aid instrument to manage. Currently, a quarter of our aid to the ACP region takes the form of budget support. I am committed to enhancing this during my time as Commissioner.

Allow me now to turn to Africa. The continent which represents undoubtedly the greatest challenge.

HIV/AIDS threatens to wipe out a generation. Famine is spreading. Water is in desperately short supply. And desertification is encroaching, not receding. In 10 years, we may reach a point of no-return.

And yet Africa is the continent with the biggest donor presence. Yes, we need more resources. But above all, we need to use them better. We must urgently address the challenges of co-ordination and complementarity.

And we must not lose sight of the political opportunity. Africa has enormous untapped potential. Others, such as Russia, Japan and most notably China are quick to recognise this. China's trade with Africa has grown exponentially from $10 billion in 2000 to over $28 billion in 2004. Africa now supplies a quarter of China's oil.

The Strategy for Africa which the EU has adopted is an ambitious political vision. It sets out a single framework for the long-term development of EU / Africa relations.

One Africa. Africa is a continent of great cultural diversity. But a continent now committed to an ambitious path of political, economic and cultural integration. I am thinking in particular of the enormous strides made by President Konaré with the African Union. He is a man with political vision. The AU and NEPAD merit our whole-hearted support.

One Europe. Europe has shown the way to political & economic integration. Enlargement is clear proof of the value of that vision. But also brings new challenges. Hence, we will work ever harder for greater co-ordination and complementarity.

One objective. Till now, the Community's relations with Africa have been diffused across different sectoral policies - trade, security, development and environment. The Peace Facility is but one example, which shows you cannot separate issues such as security & development. The EU Strategy for Africa gives a political framework to our relations and clearly defines the common objective - achievement of the MDGs.

The EU is the largest donor in the world giving 56% of all ODA. But these two ambitious policy statements show that the EU's leadership is a political one, not just a financial one. Together we can set the international agenda, by promoting our common values and our common principles. This is the real added value of multilateralism.

Reaching this European Consensus was a political precondition for advancing a volontarist vision of development policy. We now have a clear common commitment to enhance coherence, co-ordination and complementarity. And a common platform for greater aid effectiveness. In May, the EU agreed that we must "do more". Now, the EU has also committed to "doing better".

The EU Member States have promised to enhance aid budgets by €20 billion per year. And have promised at least half of that new money to Africa. The Strategy for Africa gives us the strategic framework for putting these promises into practice.

We will do more.

We will do better.

I hope we also will faster… but this mainly depends on the Member States, and more particularly on you, Members of National Parliaments.

Let me address now an often voiced concern. Subsidiarity. The Commission has no ambitions to encroach on the competences of Member States. Each Member State will of course continue to define its own development policies and priorities.

The European Consensus is inspired by the spirit of complementarity. We have agreed a common framework for bilateral and Community policies. With this common vision, we can be more effective in bringing about change. In plain English, the whole is more than the sum of the parts.

What of the next steps? We must now translate these political priorities into actions. We will build on the Strategy for Africa, by setting out a political vision for our relations with the Caribbean and the Pacific. And early next year, we must start the next round of programming in earnest.

I wish to put this common vision, this European Consensus at the heart of the next round of programming for the ACP region. We are working hard to translate these political priorities into workable guidelines for future programming. To put our money, where our mouth is!

I will personally present these principles to all our partners in a series of regional seminars, which the Commission will organise in the first half of next year, to prepare the country and the regional strategy papers. This in order to be fully prepared for the programming phase.

Honourable Members of Parliament,

We have an ambitious agenda ahead of us. The European Consensus and the Africa Strategy set out a challenging vision for the future. Member States have made a strong financial commitment to meet that challenge. And there is agreement that we need to deliver more and better aid.

This commitment to greater harmonisation is also a recognition that we need to look beyond our respective national interests.

This means that we also need to communicate to our citizens why this common agenda is so important. In my first year in office, I have given priority to visiting the national Parliaments of the European Union. You have a vital role to play in promoting this common vision.

I urge you all to play your part. I invite each one of you to take up this challenge in the countries and constituencies that you represent. Together we can make a difference. But we need all EU citizens to support this common effort. And this means we all must communicate why this matters. We must explain the common values that underpin this historic vision. We must justify the common objectives and the common principles to which we are all committed.

Concluding remarks

The 22 of November is an historic date for EU development policy. It marks the commitment of the European Commission and the 25 Member States of the European Union to forge a common vision for EU Development Policy.

In June, the 25 Member States committed to increasing ODA. In 2010, the global increase will reach 20 Billion euros per year.

To use this huge amount efficiently, I think we need a new financial instrument to address the specific needs of Africa.

That is why I have proposed to the Chairman of the European Investment Bank to create - together with the Commission - a special fund dedicated to infrastructures.

That fund will be open to other donors, such as the African Development Bank, the World Bank, Member States, etc.

This is a question of visibility. I see no reason why the whole increase of ODA should go to institutions from outside the EU.

With this fund, and with an operational framework inspired by the regional and national seminars of the first quarter of 2006, I will be able to make concrete proposals to the Member States in order to encourage them or like-minded groups among them to endorse a part of the charges, or / and a part of the projects.

Of course, all this will happen on a voluntary basis.

But I am sure that this will launch an unprecedented dynamic for change in Africa.

Thank you for your attention.

Ref: SP05-314EN
Source UE: Commission Européenne
UN forum:
Date: 28/11/2005

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