EU Commission proposes Code of Conduct for improved division of labour between EU Donors

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Cutting red tape, putting the money where it is needed most, pooling aid, dividing the job in order to deliver more aid, better and faster. These are the objectives of a new and voluntary Code of Conduct for the division of labour in EU Development Policy proposed by the Commission today. The Code of Conduct will contain ten principles for a better division of labour among EU donors in developing countries. The Commission proposes, for example, that EU donors limit their involvement in a partner country to the two sectors in which they have the best comparative advantage. This principle can make one Member State delegate responsibility for carrying out its aid programme in a particular area to another Member State who is better placed to do so.

The voluntary code of conduct for the division of labour in EU development policy also sets-out guidelines to ensure a global and more even presence of the European Union in the developing world. Today, too many donors focus on success countries, such as Vietnam, leaving aside too often fragile countries, such as the Central African Republic. It is therefore proposed that all EU donors dedicate at least part of their aid budget to "under funded" or neglected countries.

The overall aim of the new code of conduct is to make EU development policy more efficient capable of effectively improving the living conditions of the world's poorest. It is developed on the basis of best practice examples from the field. Its purpose is not to limit the role of Member States; it is meant to capitalise on their longstanding experience and know-how in the areas they know best.

Louis Michel, European Commissioner for Development and Humanitarian Aid said: "Aid must help, it must not become a burden. We must cut red tape and divide tasks better inside the EU. The Code of Conduct the Commission proposes today is based on best practice, it will put the money where it is needed most and it will put it in a way that it can act most effectively to end poverty."

The European Union is the largest donor for development aid, making available in 2005 more than half of all public aid or more than approximately €50 billion worldwide. Moreover, the EU decided to double our development aid by 2010, increasing it by €35 billion per year. As the first indications show, the EU is on track to meet this target and will meet with brio the first intermediate target -0.39% ODA/GNI- in 2006.

But more money is not enough. What development countries rightly demand today is better and faster aid, less red tape and a more effective coordination of donors' activities. In Tanzania, for instance, there are over 600 projects in the field of health care, most of them to combat HIV/AIDS. In Kenya, medicines are purchased simultaneously by 20 donors through 13 different procurement bodies. An effective division of labour between EU donors triggered by a voluntary code of conduct will put an end to this type of occurrence. It will do away with unnecessary red tape and help use the money better where it is needed most.

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• Development Aid: EU Commission calls for more predictable and more effective aid (4/4/2007)
• Central African Republic: EU Commission launches major programme to support governance and opening up of the country (7/3/2007)
• «La gouvernance est une exigence démocratique" - discours de Commissaire Michel (7/3/2007)
• Development cooperation: priority to the Millennium Goals (1/12/2006)
• The EU meets the entire African continent in Tripoli to launch a partnership on migration and development (20/11/2006)
• Speech by EU Commission President Barroso: EU Development Days (15/11/2006)