Strategy 2011

Development Cooperation: a French Vision

Directorate-General of Global Affairs, Development and Partnerships Framework Document Directorate-General OF GLOBAL AFFAIRS, Development and Partnerships

Development Cooperation: a French Vision

Framework Document

Évaluation réalisée par : Pluricité Nicolas Subileau Alix de Saint-Albin Michel Hoffert

Synthèse du rapport (français et russe)

Rapport remis en décembre 2009

Ministry of Foreign and European Affairs Contents Remerciements Ce document n’aurait pas pu voir le jour sans la participation active et les contributions des diverses directions du ministère des Affaires étrangères et européennes (MAEE), du ministère de l’Économie, de l’Industrie et de l’Emploi (MINEIE), de l’Agence française de développement (AFD), du ministère de l’Immigration, de l’Intégration, de l’Identité nationale et du Développement solidaire (MIIIDS), du ministère de l’Intérieur, de l’Outre-Mer et des Collectivités territoriales (MIOMCT), du ministère de l’, de l’Alimentation et de la Pêche (MAAP), du ministère de l’Écologie, de l’Énergie, du Développement durable et de la Mer (MEEDEM), du ministère de la Défense et du Secrétariat général aux affaires européennes (SGAE). Le document a également bénéficié de consultations avec la société civile. La maquette de ce document a été préparée par le Pôle politique européenne de développement de la Direction générale de la mondialisation, du développement et des partenariats qui a organisé les réunions de consultation. Ont ainsi participé à titres divers aux débats, à la rédaction ou à la relecture de ce document :

Pour le MAEE : Éric Adam, Laurent Amar, Delphine Babin-Pelliard, Jacques Biau, Laure Bourdarot, Matthieu Boussichas, Mathilde Bouyé, Jocelyne Caballero, Pauline Chabbert, Delphine Clerc-Touré, Franz Coïdan, Jean Constantinesco, Paul Coustère, Emmanuelle d’Achon, Laurent Delahousse, Catherine Disparti, Benoît Faivre-Dupaigre, Falilou Fall, Emmanuelle Gallet, Christophe Gigaudaut, Myriam Gourrin, Camille Grousselas, Yves Gueymard, Laetitia Haton, Pierre Jaudoin, Philippe Lacoste, Matthias Lange, Élise Launay-Rencki, Jean-Luc Lavaud, Jennifer Le Duff, Dominique Le Masne, Romain Louvet, Alberto Martelli, Marc Mertillo, Laurence Pais, Isabelle Perot, François Ponge, Pierre Pougnaud, Béatrice Ravanel, Irchad Razaaly, Jérôme Rivière, Guillaume Robert, Matthieu Robin, Roland Sourd, Nicholas Suran, Giovanna Tattolo, Serge Tomasi, Alain Van Hamme, Florence Veber, Caroline Vinot, Lionel Vignacq.

Pour l’AFD et les autres ministères : Jean-Marc Bellot, Quentin Bérinchy, Nicolas Beriot, Nicolas Caudal, Grégoire Chauvière Le Drian, Anne Crozat, Jean-René Cuzon, le colonel Éric Fournier, Françoise Georgin, Émilie Gravier, Thomas Groh, Damien Hendrick, Cécile Liev-Müller, Virginie Lucas, Nicole Martin, André Pouilles-Duplaix, Mylène Testut, Mailys Tisseau, Françoise Tysseire, Alexander Von Kapp-Herr, Claude Warin.

Pour Coordination Sud : Gipsy Beley, Aurélie Gal-Régniez, Philippe Jahshan, Cécile Mabilotte, Robert Toubon.

All rights of adaptation, translation and reproduction by any processes, including the photocopy and the microfilm, reserved for any .

Photos on cover : AFD, CampusFrance, CICR/G. Primagotama, Fotolia/Galline, Fotolia/T. Müller, MAEE/F. de la Mure, UN/F. Noy et Union européenne. Execution : Elisabeth Esloduc Printing : Centre Impression © Ministère des Affaires étrangères et européennes, 2011 Contents

Preface...... 4 Executive summary...... 5 A changing world: tailoring development cooperation policy ...... 9 Steering globalisation: four strategic challenges for cooperation policy ...... 13 1) Contributing to shared and sustainable growth ...... 13 2) Fighting against poverty and reducing inequality ...... 15 3) Preserving global public goods ...... 18 4) Promoting stability and the rule of law as factors of development ...... 19 A global approach to development: mobilising multiple levers and promoting policy coherence ...... 21 1) From aid to the overall financing of development ...... 21 2) Enhancing policy coherence...... 24 3) Strengthening the complementarity of bilateral, European and multilateral action ...... 27 4) Fostering democratic governance, promoting laws and standards ...... 32 5) Encouraging the production and exchange of knowledge and culture ...... 35 Implementing differentiated partnerships: maximising the impact of ’s actions ...... 38 1) : supporting growth and achievement of the MDGs ...... 38 2) Mediterranean: sustainable development with prospects for ...... 42 3) Emerging countries: managing global balances ...... 45 4) Countries in crisis: bolstering stability...... 47 The emergence of global policies ...... 50 A duty: evaluation and accountability ...... 51 Appendices ...... 54 Appendix I – The institutional organisation of development cooperation ...... 54 Appendix II – Cooperation policy reference documents ...... 55 Appendix III – The budget for development cooperation policy...... 57 Appendix IV – Official Development Assistance in figures ...... 59 Appendix V – Structure and destination of France’s ODA ...... 61 Appendix VI – Targeted distribution of French bilateral aid by differentiated partnership ...... 63 Appendix VII – The ’s International Development Association (IDA) ...... 63 Appendix VIII – Global Fund to Fight AIDS, and Malaria (GFATM) ...... 63 Appendix IX – Summary of recent evaluations of French cooperation ...... 64 Appendix X – Bibliography and Internet resources...... 64 Acronyms and abbreviations ...... 66 Notes ...... 68

Development Cooperation: a French Vision 3 Ministry of Foreign and European Affairs - DGM PrEface

➔ I am delighted to make this framework on the overarching global challenges such as document on France’s cooperation and controlling global warming, protecting biodiversity, development policy available to our public and containing major pandemics, safeguarding all private partners. It is a single-document summary cultures, and so on. of French cooperation strategy, its geographic This document is, of course, only a step but it and sectoral priorities, and the financial and nonetheless constitutes real headway. For our resources that France is devoting to this parliamentarians, our local authorities and our area. We now have a forward-looking and external partners, it offers a clear roadmap of transparent framework that puts French action France’s external cooperation policy. for cooperation into perspective. I wish therefore to extend my thanks to all our To respond to the challenge of sustainable partners that took part in its preparation, notably globalisation and guarantee the major balances of the non-governmental organisations, companies our planet over the long run, French cooperation and the French Development Agency. We can strategy focuses on four overarching objectives: be jointly proud of the means and resources that foster sustainable and equitable growth for France is devoting to development financing. the poorest populations; combat poverty and inequality; preserve global public goods; and ensure global stability and the rule of law. In its search for comprehensive responses, Minister responsible for Cooperation France is working with all the resources at its attached to the ministre d’État, disposal. It is one of the few countries in the Minister of Foreign and European Affairs world to use not only the traditional tools of official development assistance but also long-term financial instruments, as well as an expanding December 2010 array of innovative financing mechanisms. This document also translates the French ambition to define zones that are of common interest to North and South. The African and Mediterranean priority is reaffirmed – although our cooperation policy remains open to all of the Asian and Latin American countries – as well as our determination to maintain a substantial fraction of our assistance in bilateral mode, in addition to multilateral assistance. We are also scaling up our aid to the humanitarian and social sectors, specifically education and health, backed by classic concessional tools such as grants and subsidised loans; next, we place greater focus on actions to promote growth and employment through our loan instruments. Finally, the cornerstone of our action with emerging countries is our undertaking to take

Development Cooperation: a French Vision 4 Ministry of Foreign and European Affairs - DGM Executive Summary

Steering globalisation France is contributing to this ambition for sustainable and human globalisation ➔ Over the last two decades globalisation has through its development cooperation policy, gone hand in hand with major economic in partnership with all the countries concerned. progress. Hundreds of millions of women and It fully integrates this project into a Community men have thus managed to rise out of poverty in thrust, in line with France’s vision of a European India and China, as well as in the rest of , in Union set to become a global political player on Africa and in Latin America. the international stage. Yet at the same time, inequalities between countries and between individuals within countries have increased. New sources of crises and Taking account of the world’s tensions are emerging, to which the responses growing complexity of the international community have shown their limits. security is still not guaranteed for a ➔ The setting for French cooperation is one billion human beings. Global economic growth is marked by fast-paced and far-reaaching taking directions that do not ensure the planet’s change. The economic paths of developing major balances: this is now a well-evidenced fact countries are diversifying with increasing as far as the environment is concerned, and the speed: the challenges and needs of the emer- recent crisis has shown that it also holds true for ging and least developed countries differ radi- finance. cally and require differentiated partnerships. The G-8 no longer has the exclusivity of global Worldwide, it is becoming clear that the leadership, and the growing role of the G-20 benefits of globalisation are coming up confirms the need to redefine rules of amore against a lack of governance and collective collective nature and to establish more balanced action. relations with the major emerging countries Aspirations for a more equitable growth and others. The growing interdependence of respectful of individual rights, and societies worldwide means that it is now global public goods call for the implementation imperative to reach a consensus on global of global policies. These policies need to balances. give meaningful direction to this ongoing The players in cooperation are becoming globalisation in order to maximise its benefits increasingly diverse with the emergence of — also for developing countries —, more new donor countries (emerging countries, effectively manage the upheavals it causes oil-producing countries), the proliferation of and make sure that it will not lead humanity multilateral players such as vertical funds, the into an impasse. rise of private financing through foundations and Interdependence is concomitant with glo­ NGOs, and the expansion of local government balisation and it requires political will to cooperation. The Member States of the OECD transform this interdependence into active Development Assistance Committee (DAC) solidarity. This is the real meaning of the shift no longer enjoy a monopoly over aid and thus from development assistance to global co- need to redefine working arrangements that responsibility. integrate these new players. At the same time,

Development Cooperation: a French Vision 5 Ministry of Foreign and European Affairs - DGM the diversification of societies in developing the ways and means of extending these countries means that governments are no longer achievements and making them sustainable the sole partners in the development dialogue are still to be found. The MDGs also serve and have now been joined by local authorities, as a reminder of the importance of human businesses and associative bodies: new forms capital accumulation in the development of partnership are needed to accompany this process as, in the objectives for international diversity. cooperation, they give a central place to individual welfare and rights. Meeting these goals will make it possible to act on A renewed cooperation policy migration, which all too often penalises the to meet four overarching countries of origin (brain drain) and proves harrowing for the people concerned, to the challenges point even of making their integration in the ➔ France’s determination to strive for fairer host countries more difficult; globalisation more respectful of individual ■ preservation of global public goods: rights means that it must move from a today, the collective challenges include development assistance policy, which implies managing , biodiversity an asymmetrical donor-beneficiary relationship, loss and the spread of infectious diseases, over to a policy of cooperation with developing as well as improving financial stability. countries, so as to take up four complementary At present, these issues are not tackled challenges: adequately either by the markets, since the ■ sustainable shared growth: growth related benefits are not «appropriable», or remains a key driver of social progress, by governments, as the benefits cannot especially in the developing countries. The be confined within national . For challenge raised is one of promoting qua- this type of good, what is required from lity growth that creates jobs, is based on a the international community are innovative fair balance between physical, human and solutions in the areas of governance and natural capital and does not result in social financing; or ecological dumping. Cooperation thus ■ stability and the rule of law to guarantee needs to foster a convergence of econo- freedom and the protection of individuals, mic, social and environmental standards to and also to underpin long-term economic guarantee the planet’s future, help improve and social development in the countries the living standards of populations in deve- concerned. Crises can in fact swiftly cancel loping countries, preserve the economic out the fruit of several decades of human fabric of those countries that already have and financial investment in development. a good social and environmental standards These stakes dovetail with the interest of and enable each individual to build their life the international community, since crisis in their own ; situations and the areas of lawlessness ■ the fight against poverty and inequality: these engender are also fertile ground for helping that sixth of humanity – for the large-scale trafficking and terrorism. most part women – who still live in extreme poverty to break out of the poverty trap and then preventing those who have recently Mobilising all available means escaped from falling back in remain fundamental challenges. The Millennium ➔ Finding global responses requires a global Development Goals (MDGs) have helped approach to financing development. mobilise the international community towards Official Development Assistance (ODA), with a ensuring universal access to a set of core total USD 120 billion in 2009, represents no social services: nutrition, education, health more than 0.2% of the world’s income. This only care, , , decent goes to highlight the challenge of mobilising housing. There have been great strides much greater resources for development in forward, fuelled mainly by the countries’ the form of developing countries’ own-source own economic growth, but also with support tax revenues, as well as private, local and from the international community. Yet, international investment.

Development Cooperation: a French Vision 6 Ministry of Foreign and European Affairs - DGM Even so, today ODA remains indispensible. In The choice for differentiated the first place, for the poorest countries, ODA supplements the financing of key government partnerships policies in contexts where a potential for ➔ France’s cooperation policy integrates a mobilising fiscal resources or funds from the universal perspective, and thus contributes financial markets is still absent. And then, more to building global policies through its action in broadly, because ODA serves as a catalyst international fora, such as the , for infrastructure financing and for support to the Bretton Woods Institutions, the G-8 and private sector development, subsidiarily and in G-20, and by its participation in a broad array synergy with the other sources of funding. of vertical funds that provide an overall response However, the magnitude and nature of the to sectoral issues. needs for solidarity-based transfers and for Nonetheless, the challenges addressed by the preservation of global public goods imply a French cooperation are given differing degrees change in the scale of public financing and a of focus from one partner country to another. To stepping-up of dedicated international resources. reflect these differences and its own capacities Herein lies the importance of innovative and priorities, France will respond to these financing and notably the need for those challenges by forging partnerships that are activities that gain most from globalisation to differentiated in line with the objectives pursued participate in financing development. and the resources mobilised. It will concentrate The coherence of public policies in the its cooperation action on two priority regions, European setting should make it possible to sub-Saharan Africa and the Mediterranean develop win-win solutions (and reduce possible Basin, supplemented by interventions in two contradictions) between development policies categories of country, crisis-affected countries and other government policies, including those and emerging countries. concerning France’s Overseas Communities. Sub-Saharan Africa is the priority for French This policy coherence will more effectively cooperation policy, first, because of its geographic highlight the value of development as a factor and cultural – notably linguistic – proximity, and that helps to achieve other objectives, particularly also on account of the magnitude of the issues in the areas of and immigration. common to the region as a whole. French Support for democratic governance and cooperation support will mobilise all bi- and promotion of the rule of law and standards multilateral instruments, focusing grant funding are essential if development policies are to on fourteen priority poor countries, mainly from be effective at country level, where they help the group of Least Developed Countries (LDCs). reinforce the legitimacy and effectiveness of France will also encourage the multilateral official action. Similarly, at international level, institutions of which it is a member to scale up France will contribute to an international legal their action in this region. order that respects and promotes human rights The Mediterranean is of key importance and gender equality and addresses the social for and France, as is evidenced by and human dimension of globalisation. France’s involvement in the Union for the Not least, France deems the production Mediterranean. The challenges there are also and exchange of knowledge, as well as hefty: the United Nations estimates that in the circulation of ideas and creativity to be twenty years an additional 60 million young essential levers of change. In a people will need employment, and therefore that is also a , these are the training, and 75 million new urban dwellers critical factors for competitiveness and growth. will need housing, all this within a fragile They also encourage through intercultural environment that is on Europe’s doorstep. Since discussions and dialogue a shared awareness most of these countries are middle-income and the emergence of cooperative solutions. countries, French public financial support will International cooperation, particularly at a come primarily in the form of loans (except for cultural level, embodies a vision of international the Palestinian Territories), supplemented by relations based on this intercultural dialogue cultural, scientific and technical exchanges. and on a rejection of what is dubbed the clash French cooperation will operate within the of civilisations. framework of the European Neighbourhood

Development Cooperation: a French Vision 7 Ministry of Foreign and European Affairs - DGM Policy (ENP) and in close concert with ENP ■ Sub-Saharan Africa: instruments. • over 60% of the Government’s budgetary effort to the whole of the area, Fragile and crisis countries, particularly in the • over 50% of grants to the 14 priority poor Sahel, the Middle East and Afghanistan, will be countries, given particular attention. Crisis prevention will be promoted whenever possible and, should a ■ Mediterranean: 20% of the Government’s crisis break out, special emphasis will be laid budgetary effort; on coordinating the different actions: between civil society and the military, between state ■ Crisis countries: 10% of grants (crisis and and non-governmental players, and between post-crisis management, excluding preven- the humanitarian assistance phase and tive action); reconstruction. Flexible instruments will be used, chiefly in the form of grants and operable over ■ Emerging countries: no more than 10% of the long run. France will support Europe’s major the Government’s budgetary effort. crisis response role, and notably concerning In other countries and regions, French presence peacekeeping operations carried out by African will mainly be through its participation in European countries. and multilateral instruments, at a limited bilateral It is in the emerging countries of systemic budget cost. importance, more than elsewhere, that the notion of «assistance» should be surpassed: it is more a matter of cooperating with these countries to Dialogue and transparency jointly find solutions to common challenges by promoting job-creation and environment-friendly ➔ Finally, cooperation policy, and the growth, and associating them with international policymaking process, will be underpinned cooperation that supports the poorest countries. by a proactive approach that ensures the This cooperation, which mobilises an array transparency of resources and the detailed of French actors at limited budgetary cost, is measurement of results and impacts. On this key to strengthening dialogue and preparing basis, an enhanced dialogue will be pursued together international negotiations on common with stakeholders in France and partner countries concerns. concerning the priorities of cooperation policy and the modalities for its implementation.

Financial arrangements to match differentiated partnerships ➔ These four differentiated types of partnership will serve as a reference for allocating the bilateral resources that France earmarks for its development cooperation policy. They will also determine France’s positions regarding the use of the European and multilateral instruments to which it contributes. Depending on the case, the targets for this allocation may involve grants or the wider window of the Government’s financial effort, including the cost to the Government of low-interest loans included under Official Development Assistance1. Indicatively, for the 2011-2013 budget triennium, the targets for each differentiated partnership are defined as follows:

Development Cooperation: a French Vision 8 Ministry of Foreign and European Affairs - DGM A changing Tailoring development world cooperation policy

1.1 International cooperation has undergone a From the outset, development good number of changes: from its beginnings as aid for the reconstruction of Europe in cooperation has pursued the the wake of the War, then twofold objective of solidarity its renewal in the form of development and influence assistance after colonised countries gained their independence, and finally, at the turn of 1.5  dates back to the , the millennium, as a consensus around the with the introduction of the Marshall Plan goal of reducing poverty. following the Second World War. After its war effort to save Europe, the 1.2 A further transformation, no less momentous, of America mobilised substantial funds, is now necessary in order to take into account reaching up to 2% of US GDP annually, to a new world of widespread interdependence, rebuild the continent and anchor it firmly the ultimate perspective being the crafting of within the Western camp. It was also during global public policies able to meet the main the post-war period that the main multilateral challenges of globalisation. institutions for development assistance 1.3 Today, the world’s demographic, economic were founded, within a new architecture and political map differs radically from what it of world governance centred on the United still was at the fall of the Berlin Wall in 1989. Nations and the Bretton Woods Institutions. Globalisation is breaking down the traditional 1.6 After the colonies gained their independence, divide between domestic and foreign policy. the containment of Soviet influence became This has gone hand in glove with an increase for the Western nations a powerful engine in wealth and well-being in all regions of the that spurred development cooperation with world, and the moral imperatives of solidarity the former colonies. and justice are accompanied by the growing awareness of a common destiny, be it in terms 1.7 The fall of the Berlin Wall in 1989 and the of economic growth, employment, security, collapse of the Soviet Union gave way flee- health, human mobility or the environment. tingly to an illusion of triumph for the market economy and of spontaneous convergence 1.4 This document redefines the objectives of of national economies. A single paradigm, France’s development cooperation policy, known as the Washington Consensus, came which serves the interests of France and its to prevail over development policy. Official closest partners, as well as a general inte- aid flows, which some had thought would rest that transcends borders and which the benefit from the «peace dividends», declined international community has a shared duty to even though the number of aid recipients was address. rising to support those countries that were transitioning to a market economy. 1.8 Whereas some emerging nations marked up impressive economic growth, the African countries found themselves facing a massive debt crisis. The handling of this debt sparked off the debate about this model of

Development Cooperation: a French Vision 9 Ministry of Foreign and European Affairs - DGM development. The Asian and Latin American the members of the OECD Development crises of the late 1990s and the major Assistance Committee (DAC). They also financial crisis that began in 2008, although serve as a yardstick for measuring the of different ilks, amplified the critiques raised results of the development cooperation and helped challenge the idea that free policies in force during the early years of market forces would spontaneously bring the new millennium. about convergence between economies for the good of all. 1.9 At the same time, development policies Globalisation means rethinking placed renewed focus on human and natural new pathways to growth capital. A series of conferences held under the auspices of the United Nations, from 1.11 The upheavals caused by globalisation the Rio Summit in 1992 to the Millennium call for a radical shift in public policies. Summit in September 2000, enabled a Although remains the consensus to emerge on common values and priority of development cooperation policies, objectives, as expressed in the Millennium their objectives also need to integrate new Development Goals. challenges, be it the enhancement of global public goods, the regulation of globalisation or crisis prevention and management.

The Millennium Development 1.12 Citizens must be able to find their place in this changing world. This means that Goals they need to have access to tools enabling The Millennium Development Goals (MDGs) them to understand and analyse more represent eight objectives that reflect some of clearly international issues and development the most crucial aspects of development, and cooperation policy, and, should they wish, more specifically human development, which to deepen their involvement in international the international community has committed to solidarity. meet by 2015. The MDGs follow on from the 1.13 Development cooperation policy must actions and targets enshrined in the Millennium therefore evolve so as to reconcile both Declaration, adopted by 189 countries and the need for solidarity and the search for signed by 147 heads of State at the Millennium pragmatic responses to a vast array of Summit in September 2000. issues that transcend borders and have in ■ G oal 1 : eradicate extreme poverty and common the fact that they can be addressed hunger. only within an international cooperation ■ G oal 2 : achieve universal primary framework. education. 1.14 Globalisation can be seen in the integration ■ G oal 3 : promote gender equality and of economies, the instant transmission of empower women. information, the acceleration of capital ■ G oal 4 : reduce child mortality. flows and trade in goods and services, ■ G oal 5 : improve maternal health. and the increase in population flows. It is ■ G oal 6 : combat HIV/AIDS, malaria and becoming clearer what impacts nationally other diseases. implemented policies are having beyond ■ G oal 7 : ensure environmental sustainability. national borders. ■ G oal 8 : develop a global partnership for 1.15 The welfare of each individual now depends development. on France’s collective ability to support and Achieving them requires that developing balance growth, regulate capital movements countries set top priority for these goals and the not subject to national rules, prevent international community give them firm support. organised illegal migration, prevent and address regional crises, preserve natural resources and the environment, control the 1.10 The MDGs have been a powerful factor spread of cross- pollution, contain the in reviving ODA, which in 2009 reached spread of transmissible diseases, etc. The a historic high of USD 120 billion from need to develop cooperative strategies or

Development Cooperation: a French Vision 10 Ministry of Foreign and European Affairs - DGM organise the coordination of public policies flows with major political, economic, social is gradually becoming inevitable. and human consequences, even though they account for only a fraction of total 1.16 This change is happening in an economic movements. context of accelerated growth in the emerging economies based on highly market- 1.20 Local-level migration within a country or oriented models. Double-digit growth rates region has always been a sign of human contrast with more sluggish growth in the adaptability. Added to this are movements industrialised countries and certain poor further afield, amplified by economic and countries. Trade, financial and monetary social imbalances and the increasing imbalances are building up and fuelling each fluidity of transport and information. other to the extent that global balances are Whether spontaneous or forced, individual now under threat. In this setting, international or collective, a search for new economic cooperation needs to support and bolster opportunities, better access to social the growth potential of developing countries services and basic freedoms or an escape under conditions conducive to reducing from territories hit by poverty, violence or inequalities and imbalances between and environmental disasters, this migration within countries. constitutes a response to the challenges of development. Understanding and regulating 1.17 It is increasingly clear that the model for these movements, as well as supporting technical and energy growth that facilitated those concerned, represent in this sense the economic expansion of the industrialised an essential cross-cutting challenge for nations and the rapid take-off of the emerging development cooperation policy. countries is not replicable on a global scale, in a world that by 2050 may number ten billion people, according to United Nations estimates2. Simply in terms of the The trajectories of developing consumption of non-renewable resources, countries vary widely a single planet would not suffice. Far from slowing down or evening out development and require differentiated for the greatest number of people, what is partnerships needed is to invent new green and solidarity- 1.21 Another salient fact of this new millennium based growth paths on a worldwide scale. is that the solidarity between developing countries, which found its political expres­ sion at the Bandung Conference, is now These challenges exist against jeopardised by these countries’ rapidly a backdrop of global population diverging economic trajectories. The historic growth and displacement leaders of the G-77 (China, , India, etc.) have become major economic powers, 1.18 Population growth will remain a major a change that is embodied in the transition phenomenon in the decades ahead: the from the G-8 to the G-20. Conversely, other populations of Asia and Latin America are developing countries, often the poorest, find still growing, although their demographic it hard to attract investment, and are torn transition is well underway. This transition, by conflict or weakened by the growth of however, has barely begun in Africa, where illicit trafficking, which is a potential threat to the population is likely to at least double regional and even international stability. before levelling off. By 2050, the population 1.22 The «» category there­ of sub-Saharan Africa will have outstripped fore spans disparate realities. Development that of China or India. cooperation must take account of both the 1.19 The increase in world population is differences between these trajectories, the accompanied by a radical restructuring of specific features of local contexts and the settlement patterns: in each country, there search for global balances. It is no longer are mass movements into urban centres a question of operating with the same tools that now house over half of the world’s across all countries and expecting the same population, as well as international migratory results, but rather clarifying strategic issues,

Development Cooperation: a French Vision 11 Ministry of Foreign and European Affairs - DGM defining specific objectives and adapting that of the OECD countries. A mid- to long- responses. Tailoring cooperation policy run analysis, cyclical factors aside, would to these new issues means taking up the appear to confirm that a virtuous growth challenge of implementing differentiated circle has begun: accelerating economic partnerships. growth is faster than population growth thus resulting in higher , a significant improvement in macro-economic Africa needs specific focus as stability (lower external debt, decelerating inflation, reduced budgetary and external its challenges are compounded deficits), a sharp drop in the number of 1.23 In a world order that is being recomposed, conflicts and the strengthening of democratic Africa is the last region where the question processes. of under-development applies to most of the 1.25 Be it new land of opportunity or a continent continent. Indeed, most of the lowest-ranking of all dangers, Africa is so close to Europe countries on the that the two continents need to accept that are to be found in Africa. they have a shared destiny. Development 1.24 At the same time, the majority of Africa’s cooperation must therefore continue to give national economies have made conside­ Africa a special place given the risks and rable headway. Over the last ten years, opportunities the continent represents for sub-Saharan Africa has posted an average the future. economic growth rate much higher than

Development Cooperation: a French Vision 12 Ministry of Foreign and European Affairs - DGM Steering Four strategic challenges globalisation for cooperation policy

2.1 France’s cooperation policy seeks to respond remains uncompetitive and is typified by to four complementary challenges, which an abundance of micro-enterprises, a critically need to be managed with success, large informal sector and a slowly evolving in the interests of France and its partners: institutional environment. For this reason, support for economic growth requires ■ contribute to shared and sustainable action along several complementary lines: growth; stimulating a business environment conducive ■ fight against poverty and reduce inequality; to private investment; supporting changes to ■ preserve global public goods; institutional and regulatory frameworks and ■ promote stability and the rule of law as labour and employment policy; anticipating factors of development. more effectively shocks and their implications for businesses; encouraging investment of national savings and foreign direct investment; 1) Contributing and contributing to improved tax structures that give to governments the wherewithal to shared and to act and to citizens a sense of fairness. sustainable growth 2.5 International trade is also a crucial deve­ lopment driver and needs to be encouraged Growth and development are both within regional blocks and at global level. At the same time, countries suffering tightly linked structural handicaps should receive assis­ 2.2 The last decade has seen hundreds of tance to manage their integration into world millions rise out of extreme poverty and trade, so that they can maximise the economic gain better access to basic goods and and social benefits: this is one of the aims of services. The exceptional economic growth aid for trade. of countries in Asia, in Latin America and, 2.6 Not least, in a globalised information eco­no­ to a lesser extent, in Africa has largely my, intangible cultural and human investment contributed to this progress. is a continuing challenge to be met by those 2.3 Without economic growth, there is a danger developing countries whose societies are that poverty will increase massively in faced with rapidly changing mentalities and countries facing high population increases. fiercer international competition in these Conversely, global demand is more and areas. more driven by developing countries: development is thus a challenge for sound growth at global level. The conditions for growth need 2.4 The private sector is the main driving rethinking to make it more force behind this growth and contributes sustainable and beneficial to directly to the creation of added value and as many people as possible jobs when backed by a government that guarantees stability. Yet, in a good number 2.7 The way in which growth contributes to of developing countries the private sector development is not confined simply to

Development Cooperation: a French Vision 13 Ministry of Foreign and European Affairs - DGM increases in GDP: the quality of growth, Building human capital its ability to create employment, its impact on welfare and the environment and its is a cornerstone of growth contribution to strengthening States are all 2.11 Education and health are not merely as important as the rhythm of growth. rights, as human capital is also key to 2.8 Growth often goes hand in hand with long-run economic growth and agents’ increasing levels of inequality, which, if not capabilities are vital to improving an kept in check, could imperil its long-term economy’s competitiveness and returns on benefits. Effective economic growth, robust investments. and employment-generating, is likely to 2.12 In education and training, the challenge be undermined by inequalities, at both is one of coordinating progress towards local and global levels. Mechanisms that universal access to basic education and reduce inequalities and protect the most developing vocational training and higher vulnerable thus need to be extended in each education to match changes in the labour country (pro-poor policies, risk reduction, market structure. redistributive fiscal policies). They also constitute one of the fundamental objectives 2.13 Building human capital in developing of international cooperation policy (public countries also depends on health. The and private international solidarity, promotion reduction of maternal and infant mortality, of international rules). Greater focus should a lesser incidence of major pandemics, thus be placed to those segments of the prevention and better treatment of major economy that enable the poorest to gain non-communicable diseases and the access to financial services or reduce their resulting rise in life expectancy all directly risks, such as micro-finance or micro- contribute to human dignity and well-being, insurance. as well as to a more productive working population. 2.9 In line with the Presidential commitment at the International Labour Conference in Geneva on 15th June, 2009, France intends to promote global regulation establishing jointly Balanced territorial agreed-upon rules and standards that set management reinforces the the right to health, labour law, environmental synergy between growth and law and trade law on equal footing. It also development encourages the setting up of a social protection floor and greater corporate social 2.14 Finally, phases of rapid growth are often and environmental responsibility, both for accompanied by spatial imbalances and French enterprises and those in the partner population movements that, if well managed, countries supported through its cooperation then have a major impact on development. arrangements. 2.15  are developing at an extremely fast 2.10 To be sustainable, growth should not pace. Since 2008, they have been home endanger environmental balances. The to more than half the world’s population, prevailing economic model is based on the compared with only 10% in 1900. As hubs exploitation of a natural resource capital of production, innovation and exchange that is being depleted: rapid consumption where new identities are forged, they of non-renewable energies that provide concentrate economic, social and cultural more than 80% of the planet’s needs3, wealth and attract huge numbers of people. deforestation, soil erosion, biodiversity Rapid mass urbanisation therefore plays a loss, etc. Furthermore, the exploitation key role in the modernisation of economic of this capital often results in long-term structures, including those in rural areas. It degradation: local pollution, greenhouse also carries risks: the disintegration of social gas emissions, etc. At present, too many networks, concentrated pollution, urban countries are impoverishing their natural sprawl that encroaches on natural areas, heritage, perhaps irreversibly, to boost their and rapidly increasing levels of poverty and short-term economic growth. inequality.

Development Cooperation: a French Vision 14 Ministry of Foreign and European Affairs - DGM 2.16 The rural world is also a key determinant of December 2007 defined by Africa and of balanced growth. Agriculture plays a the , France and fifty-one particularly important economic and social African countries committed to strengthen role as it represents the livelihood of most the synergies between migration and of the poor and also affects . development strategies and jointly reiterated Agricultural and rural development policies the need to support the development efforts regulate the balances between territories of African States, in order, among other by helping to keep in check urban-rural things, to anticipate these movements. disparities in standards and . These policies also have a major impact on natural resources management, which needs to be improved through agronomic 2) Fighting against models that are more productive, more financially rewarding for producers and more poverty and reducing frugal with natural capital. inequality World poverty is retreating Connecting the countryside but remains unacceptably high to urban markets to reduce 2.18 The world’s per capita has increased by a factor of 2.5 in Rural areas concentrate a larger proportion of fifty years, and since 1980 the fraction of poor households and a higher level of poverty. world population living below the threshold However, rapid urbanisation induces a sharp of economic poverty has been halved. rise in food demand and can thus be a wellspring This success is basically the result of the of opportunity if family farms, which are the widespread adoption of a development mainstay of rural economy, manage to invest model based on market principles. China so as to produce surplus yields, deliver them to is the best example of this shift. But the towns and receive a fair price for their produce. success is also due to aid programmes, The French Development Agency (AFD) particularly in countries where the scarcity of contributes to increasing agricultural supply national resources has made it impossible and rural incomes in various ways: by financing to simultaneously stimulate economic rural feeder roads and irrigation infrastructure, investment and finance citizens’ access to offering adapted solutions to finance farm basic services. production via banks and agri-food businesses that contract family farms, and supporting 2.19 However, this progress is coming up against producers’ professional organisations within each two limits: first, poverty has not been reduced sector. AFD is encouraging the sustainability at the same rate across countries and global of this increased production by supporting land wealth is still very unequally distributed tenure management capacities, price volatility among countries (for example, the Least control and the prevention of health and Developed Countries account for 12% of the environmental crises. It also supports efforts world’s population but only 1.6% of wealth 4 to design and disseminate eco-agriculture production ); second, the basic needs of a techniques and institutions to improve the local significant share of the world’s population and global impacts of arable and livestock are still not met, despite the progress seen farming. over the last twenty years. To take only a few of the Millennium Development Goal targets:

2.17 International migration largely stems from ■ proportionally, underweight children under a poverty that forces individuals to leave five in the world fell from 31% in 1990 to their country: cooperation policies must 26% in 2008, but the 2008 food crisis thus help them to live decently at home. At revealed just how fragile this progress is, the Africa-France Summit in Nice on 1 June with one person in six still suffering from 2010, in line with the Lisbon Action Plan hunger;

Development Cooperation: a French Vision 15 Ministry of Foreign and European Affairs - DGM ■ drinking water has become accessible for 2.21 The MDGs identify a limited number of some 1.6 billion people since 1990, but is simple objectives that can mobilise public still inaccessible to one person in seven in opinion in the countries concerned and the world in 2010; donor countries. The advancement of these objectives can be measured with respect to ■ in basic education, enrolment rates in sub- the populations’ needs. They have helped Saharan Africa have progressed since to spur a massive mobilisation of Official 2000 five times faster than during the 1990s. Development Assistance in the 2000s to However, in 2008, 31 million children in sub- support countries’ own efforts, and they Saharan Africa and 38 million elsewhere remain a key benchmark for mobilising were still not enrolled. development resources. 2.22 Achieving the MDGs depends first and foremost on the ability of States to make For the poorest, the priority them effective, which basically entails a is access to basic services growing economy, as this is the only way and economic activity of ensuring that governments have the resources required to organise the provision 2.20 By adopting the eight Millennium Deve­ of basic services and that citizens have lopment Goals (MDGs) in 2000, the United income-generating jobs enabling them Nations gave a clear reminder that the afford these services. core objective of development policies is to guarantee as many people as possible access to a range of basic services that meet basic human needs and rights. MDGs and the importance Guarantee of secure access to safe drinking of promoting women, key players water and sufficient food, the possibility in development of receiving a minimum level of education and an adequate set of health services If the Millennium Development Goals were all constitute, at the same time, rights to achieved, women would see a substantial which each individual has a legitimate claim improvement in their situation. Leveraging and targets that the international community the multiplier effect of greater gender equality has set itself in the MDGs. and women’s empowerment is an overarching

2010 Multidimensional Poverty Index

Source: Oxford Poverty and Human Development Initiative and UNDP

Development Cooperation: a French Vision 16 Ministry of Foreign and European Affairs - DGM MDG objective, as pointed out in the United Nations Development Programme paper on International Covenant on Economic, accelerating the MDGs («What Will It Take Social and Cultural Rights (ICESCR) To Achieve the MDGs? An International and Optional Protocol Assessment», UNDP). There is in fact a strong The Covenant was adopted by the United linkage between women’s and girl’s education, Nations General Assembly on 16 December economic empowerment and children’s health. 1966 and came into force on 3 January 1976. From a more general perspective, the poverty France ratified it on 4 November 1980. rate declines in countries where relations between men and women are more equitable The ICESCR guarantees men and women and the main victims of under-development are equal rights in economic, social and cultural women. In 2006, the World Bank* estimated that matters and prohibits all forms of discrimination. a further USD 13 billion a year would be needed At the recommendation of the Human Rights to achieve MDG 3 by 2015; and yet today Council, on 10 December 2008 in New York, less than 1% of United Nations’ programmes, the 63rd Session of the United National representing some USD300 million a year, General Assembly adopted by consensus the is allocated to women’s empowerment. The Optional Protocol to the International Covenant creation of the agency UN Women is however on Economic, Social and Cultural Rights a step in the right direction. (ICESCR). The Protocol entitles any person or group of persons who deem that their rights * «The Financial Requirements of Achieving under the Covenant have been violated to Gender Equality and Women’s Empowerment», submit a written complaint to the Committee on Banque mondiale, 2006. Economic, Social and Cultural Rights.

2.23 The multidimensional nature of poverty, Economic and social its linkage with economic and social rights, and the question of capacity building and development in the Least power sharing are now fully recognised, Developed Countries requires as much in the overall approach of poverty a specific approach reduction policies as in how the development processes are actually addressed and 2.26 The Least Developed Countries in particular steered at local level. have a high proportion of their populations living in extreme poverty and lack adequate 2.24 Further thought must be given to the basic internal mechanisms, especially economic, rights of each human being to access, in to meet their population’s needs; for them, their own country, the goods and services without the vital contribution of ODA, it enabling them to live a decent life. The would be almost impossible to invest MDGs appear as a bedrock that needs simultaneously in basic services (health, not only extending towards a universal education and vocational training, water, social minimum but also expanding nutrition) and in the infrastructure to make towards access to energy, civil freedoms them accessible (transport and energy and culture. The quality of the services especially, basic social infrastructure) at a provided needs to be enhanced, as does level commensurate with these needs. the number of people accessing them. Innovative solutions for additional financing 2.27 Most of these countries compound additional must be found to meet this challenge. vulnerabilities: geographic isolation, weak institutional capacities at central or local 2.25 The defence of economic, social and government level, high dependence on cultural rights is fully mainstreamed into this a limited number of productive sectors, approach, which France will support more vulnerability to climatic hazards, etc. The specifically by promoting the International succession of energy, food, economic Covenant on Economic, Social and Cultural and financial crises since 2008 threatens Rights (ICESCR). to undermine the progress achieved and compromises these countries’ efforts to

Development Cooperation: a French Vision 17 Ministry of Foreign and European Affairs - DGM reduce poverty. Stagnating or even falling above. Globalisation has helped to highlight per capita income makes it particularly the preservation of global public goods as a difficult to finance both investment and growing challenge needing to be addressed social expenditure. by all countries, as a number of recent crises have shown.

Developing access to water and sanitation in Epidemic control, regional Access to basic services in areas, which integration and mobilisation are often sidelined by conventional providers, of French expertise raises myriad challenges, including providing in the Indian Ocean drinking water for all social categories—thus Emerging diseases pose a growing threat, as lightening women’s workload—and improving they are linked with the globalisation of trade health by reducing waterborne diseases that and climate change. The island states of the mostly affect young children. Although conditions Indian Ocean are particularly exposed to this are improving in Asia, they remain a cause risk, as the recent outbreak of chikungunya of great concern in Africa, particularly on the has shown. The economic vulnerability of these fringes of cities where housing is dense and countries, which are heavily tourism-dependent, households have few amenities. French action calls for a regionally organised epidemic alert in the water and sanitation sector aims to and response capacity. In 2007, Comoros, improve access to these services, especially France (Reunion Island), Madagascar, in peri-urban areas. For this, it supports the and the set up the Regional Centre development of infrastructure and services for Indian Ocean Health Surveillance and adapted to user needs, so as to ensure that water Research (CRVOI) under the Indian Ocean is available in key public places, such as clinics Commission. This project enables the exchange and schools, and to promote better hygiene of epidemiological information, technical capacity and sanitation practices. All of these initiatives building and the pooling of resources for health dovetail with overall support for governance in emergencies. The network is based on regional this sector. The AFD finances this type of project hubs of expertise: the Institute for notably on the outskirts of Ouagadougou in Surveillance (InVS) laboratory in Reunion Island Burkina Faso and Maputo in Mozambique. and the Pasteur Institute in Madagascar.

The future of global public 3) Preserving global goods is strongly linked public goods to development patterns

2.29 The preservation of global public goods The acceleration of can be linked into the development process, globalisation makes preserving whether this is at the level of autonomous global public goods a major access to energy, reducing climate risk by challenge adapting housing structures, developing public transport, preserving rare ecosystems 2.28 Global public goods are public goods whose through local community participation, benefits (or risks, if not well managed) are or providing infrastructures for the early not appropriable (and consequently not diagnosis and care of patients with infectious covered by market mechanisms) and diseases. It is linked to poverty reduction cannot be contained within borders (and because the poorest are often those first consequently not covered by national policy affected by the degradation of public goods either). Climate protection, biodiversity and, conversely, they have greater incentives conservation, the fight against transmissible to invest in their safeguard if a less precarious diseases and financial stability are some existence empowers them to go beyond examples of global public goods as defined short-term approaches. It is often necessary

Development Cooperation: a French Vision 18 Ministry of Foreign and European Affairs - DGM for communities to acquire new skills in on the reduction of greenhouse gas order to implement technical or institutional emissions that threaten the ozone layer, solutions that reconcile development and or the International Health Regulations the preservation of global public goods that improve security without at a local level. Innovation is in itself a penalising trade and human mobility. cooperation objective and its implementation Strengthening corporate social and envi­­ron­ is conducive to development. mental responsibility is also complementary approach for improving standards and practices, as its implementation is more The universal dimension flexible and gradual. of global public goods requires innovative approaches Innovative financing tools 2.30 The cross-border nature of global public for biodiversity conservation goods and the fact that they require collective management, even though they do not One of the main factors limiting the conservation affect all countries to the same degree, of biodiversity is the scarcity of financial resources mean that there is the need both to involve earmarked for environ­mental protection in all public actors (international and regional developing countries. In 2010, the AFD began organisations, national governments, local to introduce financial tools that mainstream authorities) and non-state actors (busi­ environmental issues into economic approaches nesses and civil society) in the search and market mechanisms. It participates in three for sustainable responses and to set up conservation trust funds for Madagascar, the mechanisms to facilitate consensus among Congo Basin and Mozambique. The agency is these stakeholders: also developing methods to offset biodiversity damage, which it aims to apply to large-scale ■ knowledge sharing must foster the mining and infrastructure projects. With these emergence of a common understanding mechanisms, the AFD, while increasing its as to the nature and extent of the issues financial commitment to the sector, is also at stake and the responses that can be contributing to the emergence of endogenous mobilised. This sharing notably requires mechanisms for financing biodiversity. structures that can make such issues more concrete for decision-makers and the general public. They have already been set up for climate matters (IPCC5) and are 4) Promoting stability now under discussion for food security and biodiversity; and the rule of law as

■ targeted financing can have an enabling factors of development role if it can be adapted to a variety of arrangements to maximise impact. It can Legitimate and effective States propose financial mechanisms to fund are crucial to ensure the solutions that are only viable in the long run, use targeted co-financing to channel linkage between security investment or help to put a market value and development on public goods, as was the case with the creation of carbon emissions trading. For 2.31 Sustainable development cannot come global public goods requiring massive, about without the guarantee of the physical long-term expenditure, innovative financing security of goods and people and the can offer sustainable additional sources political and legal stability necessary for of funds; human and . There is a direct linkage between political stability ■ collective regulations, although more complex and development: enabling the State to to craft and implement, yield significant guarantee the security of its population results when based on international fosters a development-friendly environment, consensus, as is the case of the agreement while preventing the marginalisation of

Development Cooperation: a French Vision 19 Ministry of Foreign and European Affairs - DGM parts of the country by offering them better It was only in 2003, that the conflict really development prospects helps give them ended, a full fourteen years after it had begun. lasting stability. Socio-economic indicators then stabilised, but the losses were enormous. At present, Liberia 2.32 Where fragility, instability or conflict situations is classified as an LDC: although it has posted exist, the top priority is thus to reinforce the GDP growth rates of roughly 7% since 2005 State’s legitimacy in its capacity to fulfil the (according to the World Bank), the population is sovereign responsibilities of control over the scarcely better off than it was in 1963. national territory, maintenance of security and the rule of law, exercise of justice and authority at local level. This legitimacy is also grounded on the effective delivery Local conflicts have of basic services both to its population repercussions for (health, education, water supply, sanitation, international security etc.) and to economic players, who are the engines of development ( and 2.35 Crisis prevention means taking account of maintenance of transport infrastructure, four categories of risk that lead to violence energy supply, etc.). and conflict, which moreover may be interlinked: 2.33 The second priority is to strengthen govern­ ment legitimacy and expand the civic ■ community divisions within a national or sphere, whether this involves the methods regional area, and substantial inequalities of appointing leaders, the way power is between social groups that may be the exercised, the independence of the judiciary, flashpoint of violent crises and conflict; the structure of political, social and non- profit organisations, or more broadly, the ■ civil wars, initially confined to one country empowerment of civil society. but which may have a contagion effect on the region; 2.34 Political crises, especially when they lead to violent conflict, impede the development ■ large-scale trafficking (narcotics, weapons, process and may even cause long-term people, etc.) and piracy, which develop setbacks. where governments are unable to control their territory and borders;

■ transnational terrorism: terrorist movements Liberia: four decades of are often fuelled by the frustrations of com- development wiped out munities deprived of any prospects of deve- lopment. These movements set up their by a 14-year civil war bases in lawless areas where government In the 1960s, Liberia enjoyed one of the highest authority is weak or non-existent (failed economic growth rates in the world, largely states). due to the income derived from its many raw 2.36 Building a safer world and reducing tensions materials: diamonds, iron, gold, precious woods, by addressing their structural causes are rubber plantations, etc. Rent-capture by a major stakes for development. French minority, however, became a source of internal cooperation is designed to contribute to tensions that caused a serious deterioration dealing with situations that pose potential of the political and social climate in the 1980s or proven threats to the stability of its and a major civil war from 1989. partners. By doing so, France is contributing Preserved until then by its political stability, to international security and the security of Liberia’s economic situation rapidly declined as French citizens. the country imploded. The conflict destroyed a major part of the country’s infrastructure, and disrupted farming and mining activities. Per capita GDP was halved in the 1980s and halved yet again in the single year of 1990!

Development Cooperation: a French Vision 20 Ministry of Foreign and European Affairs - DGM A global approach to Mobilising multiple levers and promoting policy development coherence

3.4 France intends to promote effective, equi­ 1) From aid table and transparent tax systems and, to the overall financing for this, it will support capacity building for administrations that fight tax evasion and of development abusive tax avoidance.

3.5 3.1 Responding to the challenges of international France will press for greater transparency cooperation requires mobilising substantial from multinational corporations and support volumes of funds, far in excess of traditional the implementation of tax information Official Development Assistance. France’s exchange standards, tailored to the context of approach in this area is based on the Monterrey developing countries. It will seek to promote Consensus, adopted by the United Nations the development of adapted local tax systems in 2002, which recognises the diversity and and capacity building for regional economic complementarity of financing that contributes commissions in the area tax harmonisation. 6 to development, with particular focus on the France’s cooperation strategy in tax matters coherence of development policies and other will serve as a basis for dialogue with its public policies. partners on these questions.

Mobilising local resources, International private flows are a priority for development of mounting importance financing 3.6 Private flows form the bulk of international 3.2 Domestic private investment is a crucial financial flows to developing countries. In deve­lopment driver, which needs to be sup­ 2008, flows of foreign direct investment and ported within a framework of social and migrants’ remittances to developing countries environmental responsibility. This support were respectively 5 times and 2.5 times the includes the institutional and legal environ­ amount of Official Development Assistance, ment for businesses, improvement in while private giving was estimated at services networks, access to information and some USD 40 billion, roughly equivalent new technologies, greater access to financial to the effective disbursements of Official markets, particularly regional ones, and the Development Assistance to developing development of insurance instruments. countries7. 3.3 As the main public source of development 3.7 Development cooperation policy must enable financing that is both predictable and synergy between public and private players sustainable, taxation provides governments so as to encourage the mobilisation of with the means to discharge their sovereign private funds for development. This involves functions and meet their citizenry’s basic facilitating their operations (for example, needs; at the same time, it makes them less promoting lower costs for migrant remittance dependent on development aid or borrowing. transfers and improving practices in this This thereby strengthens the government’s area), reducing risks so as to channel the legitimacy and democratic control over public flows to specific countries (state guarantees) policy. and providing targeted financing to enhance

Development Cooperation: a French Vision 21 Ministry of Foreign and European Affairs - DGM their environmental and social impact (public- strand of intervention and their predicta­ private partnerships). bility. This is the whole purpose of the three-year programming exercise recording appropriations to the «Official Development Migrant remittances Assistance» mission in the national budget. to developing countries These allocations must be shared in a foreseeable manner between the bilateral, Affected by the international economic crisis, European and multilateral strands, with a migrant remittances to developing countries fixed floor for budget resources earmarked were estimated by the World Bank at USD 316 for bilateral action. In addition, to optimise billion in 2009, compared with USD 336 billion the use of government resources allocated in 2008. These are still hefty amounts compared to the «Official Development Assistance» to total ODA from DAC member countries (USD mission, the three-year programming exercise 120 billion in 2009). France supports their use will also comprise allocation principles for development purposes, which is all too governing the differentiated partnerships often hampered by high transfer costs and the defined in this strategy framework document. insufficient maturity of banking networks in the Those countries that have concluded migrants’ home regions. The actions it supports agreements for the concerted management are aimed particularly at: of migratory flows will enjoy preferential

■ lower transfer costs through greater trans- treatment with respect to ODA. parency from the remittances market; 3.10 France’s cooperation system mobilises a broad panoply of instruments for financing ■ more flexible regulations for remittance transfers; development: technical assistance, expe­ rtise and training (aid for trade, aid for ■ incentives to use savings for productive mobilisation of fiscal resources), general development, notably via a joint initiative policy measures (reinforcement of inter­ with the African Development Bank to national tax cooperation, reform of the create new financial products in the representation of developing countries migrants’ countries of origin and, in France, in international financial institutions), a co-development savings account and guarantee instruments that in principle do savings deposit account offering tax not entail financial transfers and, of course, breaks to migrants who invest in productive direct financing: grants, co-financed grants, development projects in their country of medium- and long-term loans, equity origin. financing, etc.

Official aid flows need Leveraging loans while ensuring optimising but are still vital debt sustainability in many situations Loans are a powerful financing tool that can give maximum leverage to budget resources 3.8 Compared to other financial flows, the and support large-scale projects, in service of resources for cooperation policy are limited. economic development and poverty reduction. They should be articulated with other sources France practices a responsible lending of development financing or used subsidiarily, policy compliant with the rules adopted by in such a way as to produce maximum impact the industrialised countries on prudent and for issues of public interest and long-term sustainable debt, particularly in sub-Saharan stakes. Africa. In general, sovereign loans are reserved 3.9 Convinced of the added value of having the for countries whose risk of debt distress is capacity to intervene bilaterally, notably to judged to be low by IMF and World Bank support the development and financing of analyses, and on no account are they granted to public policies, France will adapt its financial countries that have not reached the completion instruments accordingly to guarantee both point of the Heavily Indebted Poor Countries the amount of resources earmarked for this (HIPC) Initiative. The financial conditions are usually concessional and include, where possible,

Development Cooperation: a French Vision 22 Ministry of Foreign and European Affairs - DGM a counter-cyclical component to absorb any 3.15 France supports the upsurge of innovative shocks that may temporarily impair these financing for development, in other words, countries’ repayment capacities. Loans to new, more stable, more predictable financial the non-sovereign sector (such as public flows that are less dependent on the annual undertakings) may be authorised on a case- budgets of DAC member countries and new by-case basis even in countries where the donor countries than traditional aid. These risk of debt distress is judged to be medium or forms of financing provide additional aid high, if the rate of return on the project financed by levying tax on international activities that so justifies and if the debt of the public are subject to little or no tax at a global level, undertaking is dissociated from that of the such as the airline ticket tax and the proposed State. tax on international financial transactions. This type of financing can also benefit from the prospects opened up by market 3.11 Given the magnitude of the needs and the guarantees and mechanisms—advance relative scarcity of government resources, market commitments, government-backed France’s policy gives priority to mechanisms bonds (IFFIm, etc.), auction of carbon such as loans that enable public funds to credits, etc. It can also enhance and fuel the have a leverage effect in middle-income and potential of solidarity contributions from the emerging countries, as well as for specific general public and migrant remittances. economic sectors, particularly private sector 3.16 France has pioneered the recognition of the support. major contribution that innovative financing 3.12 Even within a subsidiarity approach, the use can make to development, in particular of government grants is still necessary for by its action within the Leading Group on targeted intervention in the poorest countries Innovative Financing for Development, and countries in crisis, and for funding whose Permanent Secretariat is provided actions that although not cost-effective by the France. It has committed itself at have major social and environmental the highest level, notably at the United benefits, and which are not covered by Nations MDG Summit in New York in either the markets or private players active September 2010, in favour of a tax on in development cooperation. financial transactions to fund development and combat climate change. It will continue 3.13 There is intense debate on international to make the identification, mobilisation and estimates of the amount of official financing effective use of these financing innovations required for international development. a major thrust of its cooperation policy, Whatever the estimate agreed on, France setting their use for medium- and long-term intends to contribute its fair share. It seems issues as a priority. unlikely, however, that the funding of international solidarity can continue to weigh solely on the budgets of OECD countries, and more specifically that Europe, which The Leading Group on Innovative now accounts for 30% of global GDP, can Financing for Global Health continue to finance 60% of global ODA. Innovative financing emerged following the twofold observation that budget flows for development goals are limited, as are market Innovative financing serving and private flows, and that additional and global public policies more predictable resources need to be found. Developing these flows is the aim of the Leading 3.14 The need to collectively manage a growing Group on Innovative Financing for Development, number of global issues inevitably means which was founded in 2006 and whose that policies common to all countries will Permanent Secretariat is provided by France. be put in place to meet these challenges. In 2010, this forum for strategic thinking and The financing requirements for these global proposals included members from 60 countries, policies are considerable and long-term, and main international organisations (World Bank, call for structural responses. WHO, UNICEF, UNDF, etc.) and NGOs. Three

Development Cooperation: a French Vision 23 Ministry of Foreign and European Affairs - DGM innovative mechanisms have already raised agriculture, bilateral fisheries agreements, more than USD 2.5 billion of extra development social policy and employment, migration, resource and have helped vaccinate over 100 research and innovation, information tech­ million children a year and ensure paediatric nologies, transport and energy. treatment against AIDS for 100,000 children a 3.19 In November 2009, the EU Council opted year: to address five priorities: trade and finance, ■ France’s initiative of a tax on airline tickets, climate change, food security, migration and which helps to fund UNITAID, whose security. This targeted approach, supported mission is to lower the cost of treatment by France, will seek to enhance and exploit for HIV/AIDS, malaria and tuberculosis; the synergies between these sectoral policy areas and development policy. ■ the International Finance Facility for Immunisation (IFFIm), which finances the immunisation and health system strengthening programmes run by the Coherence between trade Global Alliance for Vaccines and and development policies Immunisation (GAVI); and is a priority

■ the Advance Market Commitment (AMC), 3.20 Trade is an engine of economic growth which aims to accelerate the development and it is necessary to support developing of new pneumococcal vaccines by gua­ countries with respect to their policies for a ranteeing funds for future purchases. gradual and soundly based opening up of trade, particularly at intra-regional level. In this area, which is under the responsibility of the European Union, France will press 2) Enhancing policy for a rapid, ambitious, comprehensive and balanced conclusion of the WTO Doha Round coherence and for the avoidance of protectionism. It will work, with an equal concern for balance, Policy coherence is now for the conclusion of the negotiations on the vital due to the progress Economic Partnership Agreements under the Cotonou Agreement. In line with the French of globalisation position on the need for a differentiated 3.17 A number of sectoral policies have a major approach for developing countries, it will impact on the process of development and seek to strengthen the Generalised System growth. Although sometimes complex, the of Preferences by effectively targeting the active quest for synergies and the resolution countries that need it most. Lastly, it will of conflicting objectives must be promoted support the conclusion of bilateral trade in terms both of policy content, including agreements, taking into consideration both partner countries’ policies, and the institutional the impact of these agreements on Europe’s means for policy implementation. economy and the preference erosion they might entail for the poorest countries 3.18 For France, this coherence is to a large already enjoying trade preferences. It is degree affirmed within the framework of also necessary to help countries, especially the European commitments it has helped the poorest, to bear the adjustment costs formulate and which it implements in its of trade liberalisation, both in terms of national policies. The European Consensus assistance to adapt their economies (reform on Development identifies twelve sectoral of labour market, tax system, customs duties, policy areas in which Member States budgets, etc.) and of financing. France will reaffirm their commitment to ensuring also support, via European policy, aid-for- a greater coherence with development trade policies (support for the productive objectives and which de facto cover the sector, infrastructure, capacity building) main coherence-related issues: trade, and trade facilitation (more efficient border environment, climate change, security, procedures).

Development Cooperation: a French Vision 24 Ministry of Foreign and European Affairs - DGM legal migration, combating and managing Aid for trade , and reinforcing the link Aid for trade aims to build partner countries’ between migration and development. The capacity to integrate regional and international implementation of this global approach trade. In 2007, the EU adopted a strategy requires coherence at two levels: first, to raise its assistance to €2 billion a year between migration regulation and deve­ as of 2010, of which €1 billion comes from lopment assistance in the framework of Member States, as part of the pledges made partnerships between the country of origin at the WTO. In France’s case, most of this and the host country and, second, in terms aid is implemented by the AFD through of harmonisation between host countries projects for agriculture, tourism, banking and (national legal regulations on individual infrastructure, and through the Trade Capacity mobility and residence and integration Building Programme (PRCC), a technical policies). The European Pact on Immigration assistance tool for trade. Trade development and Asylum adopted by the European is also supported by cooperation initiatives Council in 2008 encourages partnerships outside the scope of ODA, such as the Cape between home, host and transit countries Town Initiative for economic growth in Africa. to foster synergies between migration and France’s aid-for-trade strategy, approved development8. in 2009, supports the setting up of regional trade policies connected to international markets, as well as the increase of a competitive supply-side capacity. It sets an aid objective Senegal: supporting migrants’ of an annual €850 million from 2010. involvement in co-operative development Under the agreement signed between France The need for a stronger and Senegal on the concerted management linkage between migration of migratory flows, the Support Programme and development for Solidarity Initiatives for Development (PAISD) receives €9 million to co-finance 3.21 Cooperation policy and the regulation of local development projects with migrants migration are tightly interconnected, since and their partners in their regions of origin, to the former aims to help improve the living support Senegalese entrepreneurs established conditions of populations in developing in France with their investment projects in countries, thereby helping to reduce Senegal, to mobilise the highly-qualified migration made necessary by economic, diaspora, to mobilise young people with proven social, political or ecological factors. competencies from the second and third generations of Senegalese nationals living 3.22 Development policy and migration policy in France for voluntary work in development must thus be coordinated so as to benefit solidarity initiatives, and to help reduce the the countries and regions experiencing digital isolation of remote areas. out-migration, with the aim of maximising and sharing the positive effects of migratory Initial results show that the programme enjoys flows between the country of origin and wide ownership (proximity to beneficiaries, the host country. Enhanced coordination prompt implementation, participation of the between development policy and migration beneficiaries, guarantee of transparency of policy also concerns French Overseas financial resources), that the projects selected Communities, particularly as regards are coherent with national development policies implementing cooperative action with their (achievement of the MDGs, links with the neighbouring countries. Poverty Reduction Strategy Paper) and with local development plans, and that many different 3.23 In this respect, France subscribes to the partners are involved (local authorities, NGOs, global approach to migration adopted by public institutions, etc.). the European Union in 2005, comprising three lines of action: promoting mobility and

Development Cooperation: a French Vision 25 Ministry of Foreign and European Affairs - DGM The policy areas impacting climate change by supporting developing countries in their efforts to mitigate and development are increasing adapt to climate change, while at the same with globalisation time fostering innovation and the transfer of clean technologies. 3.24 The list of government sectoral policies that affect development policy lengthens as 3.28 In the area of social policy, France will globalisation spreads. In addition to trade and pursue its objectives of promoting core immigration, France will pay close, but not labour standards, decent employment and exclusive attention, to four other policy areas. the social protection floor both at country level and multilaterally. In this respect, it will 3.25 In the area of financial and investment mobilise the French business community policies, France will support developing on their social and environmental respon­ countries in their efforts to access foreign sibility and support the promotion and investment, technology, know-how and implementation of economic and social knowledge on external markets, as well rights in developing countries and more as private capital. This means improving effective integration of these rights into the investment climate in these countries multilateral programmes. and promoting entrepreneurship. Flanking policies pursued within the framework of support for the Franc Zone and for debt relief as well as trade liberalisation will be Universal Social Protection Floor strengthened. This global initiative is contained in the Global 3.26 As food security and support for the Jobs Pact adopted at the International Labour agricultural sectors that create employment Conference in June 2009. It rests on an innovative and value added are crucial challenges, approach that coordinates actions on supply especially for the poorest countries, France and demand. It is based on a coherent set of will provide support to improve production basic social transfers and basic social services capacities and the functioning of food to which all citizens should have access. They markets, and also develop its support guarantee: actions in those areas of health and safety likely to hamper market access. It will 1. the availability, continuity, and geographic encourage international capacity building and financial access to basic services, such for the poorest countries to enable them as education and vocational training, health, not only to comply with sanitary and phyto- food security, water and sanitation, housing, sanitary standards, but also to be actively employment services… involved in defining them. It will ensure 2. a set of basic social transfers, in cash and that, within the framework of international kind, to provide a minimum income and agreements, the fishing resources of livelihood security for poor and vulnerable developing countries are protected and populations and to facilitate access to basic remain accessible to the local players in services. It includes social transfers for the fisheries sector. France will continue to children, workers with insufficient income seek coherence between European agri­ and older and disabled persons. cultural policy and development objectives (Source: ILO) and will support, within Europe, ongoing reform to sever the tie between agricultural support and production and promote deve­ 3.29 In some cases, cooperation policy with loping countries’ access to EU markets. a region or country may have serious 3.27 In the areas of environment and climate consequences for French overseas commu­ change, France will urge the industrialised nities, particularly for their economy and countries, especially the European Union, to trade, as well as for the management of honour their commitments on greenhouse security and immigration. France will thus gas emission reductions. It will seek to ensure that these communities’ priorities ensure that development policies are are integrated into the cooperation policy adapted to the new constraints created by pursued in their neighbour countries.

Development Cooperation: a French Vision 26 Ministry of Foreign and European Affairs - DGM 3.34 Alliances between the players of bilateral 3) Strengthening cooperation around common objectives are the complementarity a path that should be explored for better coordination between the different types of of bilateral, European cooperation. Whether in the form of shared and multilateral action strategic thinking, co-financing or staff exchanges, bilateral coalitions constitute a clear focus for French cooperation. Bilateral cooperation plays a crucial role in cooperation policy Combined bilateral approaches 3.30 Bilateral arrangements are key component Coalitions of bilateral agencies, built around of France’s development cooperation. They a hard core of cooperation between AFD, involve a broad diversity9 of players (state ’s KfW and the European Investment operators, civil society, local authorities, Bank and extended to partners such as ’s foundations, etc.) and dispose of a panoply JICA, are a novel form of multilateralism for of instruments (technical assistance, France. The AFD, KfW and JICA now account subsidised or non-subsidised loans, grants, for 80% of bilateral aid and 20% of total aid budget aid, equity financing and guarantee allocated to the fight against climate change. mechanisms, etc.). 3.31 France’s bilateral system has a comparative advantage in several ways: its flexibility and Non-state players are key responsiveness; its capacity to innovate and players in bilateral cooperation intervene in complex fields due to political decision-making unity; its capacity to form 3.35 The growing influence of non-state players coalitions with a diversity of players; and, (NGOs, migrant associations, local not least, its experience with a full range authorities, foundations, enterprises, trade of technical and financial instruments. On unions, etc.) in terms of the funds they the other hand, if this potential is to come raise, the projects they implement and to fruition, it needs to successfully mobilise their power of advocacy is illustrated by substantial resources in a predictable numerous initiatives in which civil society manner. mobilisation plays a determining role. The international campaigns for debt relief and 3.32 Bilateral development cooperation makes tax transparency are striking examples. it possible to target the geographic and sectoral priorities that are essential from 3.36 As they become more professionalised, France’s point of view. It more effectively non-governmental organisations are playing uses not only its players’ expertise in sectors a significant role in terms of financial trans­ where French know-how is recognised, fers, expertise, capacity building, knowledge such as urban development, water and of local organisations and networking. Of sanitation, agriculture, health, education, particular note are migrant associations, etc., but also their in-depth local knowledge, which offer a mine of specific know-how especially in Africa. The experience and that should be put to more use particularly expertise acquired in bilateral development in co-development projects. To support their cooperation can also usefully inform the actions, the fraction of total ODA channelled action of multilateral donors. through international solidarity organisations will be gradually scaled up to 2%. It already 3.33 France will thus maintain an ambitious accounts for 6% of programmable grants. policy of bilateral cooperation as this helps, through common actions, to further 3.37 More recently, private foundations are ma­ a better understanding of its partners. king it possible for companies to transmit The visibility it affords helps to enhance their know-how without being subject to France’s profile in these countries and market requirements, by funding field encourages French public opinion to buy programmes, as for example, research and in to development cooperation. advocacy actions.

Development Cooperation: a French Vision 27 Ministry of Foreign and European Affairs - DGM 3.38 At a time when decentralisation policy in technology and best practice enabled by many developing countries is charging local these exchanges, which are sources of authorities with greater responsibilities, mutual benefit. their French counterparts are playing a 3.40 Alongside businesses, trade unions and other special role in cooperation—now recognised professional organisations, well experienced by law—through technical and institutional in dealing with their counterparts, contribute capacity building. This decentralised coope­ both to strengthening the social dialogue ration, often stretching over many years, that helps build democratic governance is a novel asset that French deve­lopment and to promoting global compliance with cooperation will continue to encourage and basic social and environmental standards. support. France’s approach of co-managing certain policies and services (vocational training, social welfare, etc.) also holds enormous French Alliance for Cities potential for mutual economic and social and Territorial Development benefits for France and its partners. In 2030, cities in developing countries will be 3.41 French cooperation policy will enhance the home to 4 billion people, 2 billion of whom extraordinary wealth that this diversity of may be living in slums, as against today’s players represents. France will encourage 830 million. The French Alliance for Cities the production and sharing of information and Territorial Development (PFVT), created that fosters mutual understanding between in 2009, aims to provide a more effective players and the emergence of a shared vision response to the challenges of urbanisation. It of development issues. It will pursue efforts brings together all the French players active in to improve communication on the actions it urban cooperation: the State, local authorities, implements and to strengthen consultation professionals, businesses, research and with non-governmental organisations in training bodies, NGOs and qualified individuals. view of formulating and implementing As a multi-stakeholder platform for dialogue development cooperation policy, as well as on urban cooperation, it provides a common preparing major international events in on portal for French expertise in this field and development. fosters common stances so as to facilitate more active participation in international 3.42 In addition, France’s development coope­ debates. In March 2010, it sent a 114-strong ration policy will support development French delegation to the Rio de Janeiro World initiatives undertaken by the different Urban Forum, which gathered together a families of players. It will help them to bolster total 13,700 attendees. The diversity of the capacity building and share instruments delegates’ profiles enabled them to make a and innovative practices, and also evaluate substantive contribution to the discussions. them. It will also set up and consolidate consultative frameworks to ensure ongoing dialogue between the Government and 3.39 Because businesses create wealth and each of the main families of players, as their activities have economic, social, fiscal well as foster multi-player networking and and environmental impacts, they are operational partnerships. key players in development. Their know­ 3.43 In addition to this, millions of citizens in ledge of economic development and France and other OECD countries play an growing awareness of their social and everyday role in international solidarity by environmental responsibilities make them engaging in neighbourhood initiatives and indispensible partners in the drive for making private donations, encouraged by equitable and sustainable development. tax incentives for philanthropy. Cooperation French cooperation policy will encourage policy will seek to bolster this vital link the growth of dynamic relations between between French citizens and development French businesses and their counterparts cooperation actions, be they public or in developing countries, as well as private. oppor­tunities for sharing the know-how,

Development Cooperation: a French Vision 28 Ministry of Foreign and European Affairs - DGM European cooperation cornerstone of this European policy, and of its implementing mechanism, the Code of is the fruit of a novel project Conduct on Complementarity and Division for political integration of Labour in Development Policy (2007). European development cooperation, now 3.44 Convinced of the relevance and value a component of EU foreign policy, must added of European action in favour of enable a more effective organisation of the development, France has chosen to set its synergies between Member State coope­ development cooperation policy within a ration actions by encouraging harmonised European framework. The European Union practices, a and even joint has a special role on the international stage programming exercises. of development cooperation: it strives for a form of political cooperation that reflects 3.48 Although the European Union is deeply fundamental values and basic principles committed to development, its political role is and which is backed by massive mobilisation still not on par with its financial commitment. of funds, as the combined action of Member The setting up of the European External States and European instruments accounted Action Service will make it possible to move for 56% of global ODA in 2009. towards a development policy linked to the EU’s strategic objectives. 3.45 The EU’s action is unlike that of either a Member State or a traditional multilateral 3.49 The negotiations on the EU’s forthcoming player: it is the outcome of a highly financial perspectives should thus serve original project for political integration. as an opportunity to radically modernise The implementation of the Lisbon Treaty, European policy so as to adapt to a changing the updating of the European Consensus world, take into account the diversity of on Development and the negotiations on developing countries, ensure greater the financial perspectives for 2014-2020 complementarity for bilateral actions and all provide opportunities to review this achieve greater leverage effects, notably European-level cooperation framework and by developing loan instruments and mixing endow it with a array of tools commensurate solutions where the nature of the investment with Europe’s international role on the so justifies. world stage. 3.50 France will therefore propose that its part­ 3.46 The European Union marks up considerable ners pursue the Millennium Development assets in the international aid community. Goals through a more integrated approach, The originality of its institutional model particularly with respect to the role of growth makes it the sole multilateral player to and its modalities, and one that mobilises possess instruments for political dialogue, more diversified financing. France will invite economic cooperation and development the EU to strengthen its action in the area assistance, with also the capacity to mobilise of food security. It will invite Member States substantial funds at Commission level. The to take global issues more fully into account responsibility for ensuring policy coherence and, through its instruments, support the (trade, agriculture, fishing, migration, etc.) European Union’s «climate diplomacy». As is located at European level; EU aid also regards the implementation of the Lisbon benefits from a wealth of experience in Treaty, it will propose scaling up Europe’s crisis response capacity and strengthening areas such as budget support, infrastructure the link between security and development in financing and support for democratic fragile contexts, and advocate that the cross- governance and regional integration. cutting objectives of democratic governance 3.47 The challenge lies in articulating the bilateral and regional integration be maintained. It actions of Member States with those of will also propose that the EU place more European instruments in order to make focus on aid to trade, global public goods best use of their experience and know-how and higher growth. At the same time, France and reinforce their collective impact: this is will ensure that the priorities of its Overseas the purpose of the European Consensus Communities neighboured by developing on Development adopted in 2005, the countries are taken into account.

Development Cooperation: a French Vision 29 Ministry of Foreign and European Affairs - DGM 3.51 Within the framework outlined in this docu­ of multilateral sectoral initiatives have also ment, France has drawn up a strategy emerged, generally known as vertical funds for European development policy10 that (Global Fund to Fight AIDS, Tuberculosis presents both the French vision of European and Malaria, Global Alliance for Vaccines aid architecture and its main expectations in and Immunisation, Global Environment the area of European development policy. Facility, etc.). 3.56 Among the comparative advantages of international financial institutions are their Multilateral aid mobilises operational and financial capacities to the resources needed to tackle borrow from markets at highly competitive rates, their catalytic role in mobilising global issues concessional resources from donor coun­ 3.52 In bringing donors together under a tries, their governance structure, which can common development objective, multilateral bring developed and developing countries cooperation provides a framework that together within a framework for operational complements bilateral and European action. decision-making, and their expertise in France’s active participation in multilateral economic and strategic analysis. This institutions gives it a degree of influence mix of skills gives them a prime role in the and significant responsibility with regard international system. Their governance to the evolution of the international system systems mean that they can serve as fora and to the key discussions that define for strategic dialogue with the emerging development assistance. countries, whose contributions and respon­ sibilities within these institutions, and in 3.53 Multilateral cooperation is implemented development cooperation generally, are set through complex arrangements, the key­ to increase. France’s strategy towards the stone of which is the United Nations World Bank11, appended to this document, system. This architecture is characterised formalises the French vision of what role by the pivotal role of international financial the Bank can play role in the international institutions (Bretton Woods Institutions and community’s collective response to the regional development banks), which have challenges of development. been revitalised due to the crisis and internal reform. 3.57 Vertical funds enable France to substan­tially leverage its contributions in certain priority 3.54 The United Nations system is an arena sectors that require action on a global for building recognised legitimacy at inter­ scale, particularly in health, education, food national level with respect to international security and combating climate change. representivity and norms. Through the These global funds foreshadow the UN’s own specialised agencies such as the development of global public policies. They ILO or WHO, and the non-UN institutions also constitute an arena for experimen­ that contribute to defining and enforcing ting with the particularly interesting idea of standards, such as the WTO, this world multi-player governance. order under construction is indispensible insofar as it provides a universal framework 3.58 The multilateral institutions play a decisive for the international community’s efforts financial and intellectual role in many in the area of development and collective fields that are important for development: regulation. The system’s legitimacy also health, education, agriculture, development proves useful when it comes to interventions of private and financial sectors, climate in the field, notably as a response to many change, crisis aid, fragile states, trade, etc. different forms of crisis. This has been evidenced in all geographies that are priority for French development 3.55 In parallel to this system, certain organisa­ cooperation. tions have become reference frameworks for dialogue on specific topics, such as the 3.59 However, the proliferation of multilateral measurement and effectiveness of aid by bodies, with more than 250 international the OECD and the public debt management organisations active in development, is by the . In recent years, a number creating an overlap of competences that

Development Cooperation: a French Vision 30 Ministry of Foreign and European Affairs - DGM may detract from aid effectiveness. France exchanges on the analysis of development will advocate for a rationalisation of the issues and the way their practices are system, promoting synergies between changing. its different components as well as with bilateral cooperation agencies, and better integration of all the international 3.62 France will also use the European level organisations within collective mechanisms as an opportunity to work with other that improve aid effectiveness. bilateral development agencies by setting up partnerships (operational or geared to intellectual output and strategic thinking) The complementary diversity and co-financing actions. of cooperation players and instruments Neighbourhood Investment 3.60 The complementary nature of bilateral, Euro­ pean and multilateral channels strengthens Facility and mutual recognition the capacity of French coope­ration to of procedures intervene in a variety of circumstances. The Neighbourhood Investment Facility (NIF) France’s influence and capacity to promote is a European mechanism enabling EU and its vision of develop­mental priorities are bilateral financial institutions to combine underpinned not only by proactive and their loans with grants sourced from a trust visible bilateral cooperation action but also fund receiving an annual €700 million under by a clear commitment to European and the European Neighbourhood Policy and multilateral institutions. complemented by voluntary direct contributions. 3.61 France’s actions as a member, shareholder NIF funding targets the transport, energy and and partner in multilateral institutions environment sectors, support for SMEs and reinforce each other. This complementarity social sectors, with two-thirds of funding going may translate into mobilising joint financing, to countries in the Southern Neighbourhood. setting up operational partnerships, sharing By giving priority to projects co-financed by expertise, promoting innovative solutions several European institutions, the NIF has been tested bilaterally and carrying out joint a catalyst in the initiative for mutual recognition studies and evaluations. French civil society of procedures between the AFD, the European can also add substantive value to these Development Bank and the German KfW, which institutions through a more active presence, are currently managing a phase of 10 pilot consultative groups, diverse missions, projects co-financed by the NIF. This exercise is conferences, or even as actors in the encouraging the Commission to develop similar governance of international organisations, mechanisms in other geographical areas. such as the Global Fund to Fight AIDS, Tuberculosis and Malaria. 3.63 Not least, France’s contributions to European and multilateral institutions mean that it can Partnership with the Asian participate in international solidarity actions Development Bank (AsDB) in regions and sectors where its bilateral presence is more limited and witness up Since 1997, the and front this regional development. the AFD have co- financed 39 operations in seven countries, with respective commitments 3.64 France will systematically develop strategies of USD 1.9 billion and USD 600 million, making towards international organisations with the AFD the AsDB’s third largest partner after a strategic component relating to the Japan and the World Bank over the period responsibility of the Government as share­ 2001-2007. The two institutions signed a holder or donor and a component on partnership agreement in 2003, renewed in operational synergies relating in this case 2010, and hold regular seminars to give to the responsibility of state operators their experts the opportunity to deepen their (AFD and specialised operators).

Development Cooperation: a French Vision 31 Ministry of Foreign and European Affairs - DGM To be effective, cooperation on their long-run effects on developmental processes. This involves promoting an aid policy must take on board effectiveness approach that allows flexible the increasing diversity of integration of this aid into public policies countries, players and modes and development financing mechanisms in of action order to maximise its impact.

3.65 The community of donors and recipient countries has been working for ten years on a common bedrock of principles to 4) Fostering democratic enhance the effectiveness of cooperation policies. The Paris Declaration on Aid governance, promoting Effectiveness adopted in 2005 identified laws and standards five strategic thrusts: alignment with policy priorities defined by partner countries, Development requires a State coordination of donor countries, harmo­ nisation of procedures, greater mutual with a strategic approach, able accountability and results-based manage­ to invest in the long term while ment. The Accra Agenda for Action (AAA) maintaining social consensus adopted in 2008 identifies an ensemble of actions to accelerate their implementation. 3.69 The simultaneous success of Asian and Latin American countries that opted for different 3.66 The emergence of new public and private economic and development policies shows donors, the increasingly diverse contexts that the development process need not found in developing countries, the growing follow a single recipe. importance of non-state players, the diversification of development cooperation 3.70 Development is first and foremost an instruments and their frequent mix with endogenous process: for a given territory additional sources of financing need to be and population, the pace and quality of mainstreamed into the pursuit of the Paris the process are closely tied to the history, Declaration objectives. structural data and representations that underpin a country’s capacity to establish 3.67 In this area, France will encourage a and develop a social contract bringing differentiated approach to countries so together the population and its government. as to take into account their degree of economic development, aid dependence 3.71 Economic emergence and successful and fragility. It will work to enhance partner integration into the globalisation process countries’ ownership of the operational require a government with a strategic implementation of the aid effectiveness approach, able to define and implement agenda, by supporting monitoring that a growth strategy that maintains a social focuses on the concrete progress achieved consensus, reconcile myriad domestic in each country. It will continue to encourage development challenges, arbitrate between capacity building in developing countries them when necessary, defend national to formulate national policies that can serve interests on the international stage, and as benchmarks for their partners. invest for the long term in physical and human capital while preserving its natural 3.68 France will encourage the shift from an aid and cultural heritage. effectiveness approach to one centred on the effectiveness of development policy, in which external aid is just one modality. Over and above the attention paid to the Development cooperation administrative arrangements for imple­ cannot sidestep governance menting Official Development Assistance, there must be more focus on measuring issues the results of recipient country policies 3.72 The role of cooperation action depends mixing different types of support, as well as primarily therefore on the country-specific

Development Cooperation: a French Vision 32 Ministry of Foreign and European Affairs - DGM context and cannot be reduced to a one- encountered by any outside party, of non- size-fits-all model. The effectiveness of interference in the political and social cooperation actions demands a partnership balance of a sovereign country. approach adapted to the context, based 3.77 The first duty of a cooperation policy isto on equality between partners, a common transparently assert its principled positions analysis of needs and reciprocal contractual on sometimes-sensitive issues and to state commitments. the fundamental values on which it intends 3.73 All the forms of cooperation and develop­ to base its partnership relations. This implies, ment assistance that have disregarded the in respect of basic rights and the protection prime role of endogenous dynamics in of populations and individuals, that the development have failed, including those cooperation dialogue must be both frank in emergency situations or failed states. and respectful of sovereignty. In addition No massive input of foreign funds or magic to the promotion of basic human rights, development formula, which are characte­ristic French cooperation policy on matters of of the history of cooperation, is meaningful governance gives priority to three strategic if local institutions are not respected within thrusts: consolidation of the State, promotion the cooperation relationship. of democratic governance and promotion of gender equality, from local up to regional 3.74 Cooperation policy cannot ignore governance level. issues by retreating into purely technocratic approaches to development. It should not use an unequal balance of power to impose a particular form of governance on its Three functional priorities: partners. Just as importantly, it should avoid State-building, democratic short-circuiting legitimate governmental governance and gender and administrative bodies on the pretext of short-term effectiveness, as this might well equality undermine them. 3.78 France takes action in favour of moder­ 3.75 The variety of cooperation responses to nising the State apparatus, notably governance aside, the real challenge is through cooperation at the legal, judicial, to have a form of cooperation that per se administrative and territorial levels and by strengthens the internal processes and strengthening financial governance: support dynamics within societies, thus contributing for mobilising national resources, preparing to an enhanced institutional legitimacy and and executing budgets, monitoring the effectiveness and thereby to their capacity quality of public finances and reinforcing to steer the development process. oversight institutions. France’s actions are aimed at improving services for citizens and the business environment, notably France sets governance as through the fight against corruption. It also a priority for its cooperation, provides support for convergent policies of devolution and decentralisation pursued while respecting its partners’ by governments. sovereignty 3.79 A process central to development policy is 3.76 France makes the promotion of individual what is termed «democratic» governance, rights, the rule of law and governance a which is based on support for participa­ core strand of its cooperation policy and tory approaches at all territorial levels, considers them to be part and parcel of the from local to global. Going beyond an political dialogue on the formulation and approach to governance that is limited to implementation of development strategies. the sound management of public affairs This priority is grounded on the fact that and fighting corruption—without in any governance is a critical dimension of the way underestimating the importance of political fate of societies and their economic this dimension—, democratic governance emergence. However, support for good involves the principle of ownership. Rather governance comes up against the limits, than seeking to impose universal norms, this

Development Cooperation: a French Vision 33 Ministry of Foreign and European Affairs - DGM approach proposes to partner societies a lopment. Decentralisation brings decision- targeted range of experience and expertise making processes and public management to help them transform their collective modes closer to citizens and thus encourages of action and thus develop policies adapted the emergence of local democracy. It to the challenges they face. can contribute to adapting socio-eco­ nomic development in domains that 3.80 France’s development cooperation policy are disadvantaged by overly centralised also sets the promotion of the status of approaches. It favours territorial cohesion, women high on its agenda, especially since anchors democracy and helps to reduce this is a powerful engine for development. poverty. Gender equality in access to education, social and health services, employment, land tenure and financial services, but also to governance bodies at all levels, is a pre- France, lead partner in implementing requisite for the political and economic UN-HABITAT’s international enrichment of societies in a world where guidelines on decentralisation and women still make up 60% of the poor, according to United Nations’ estimates. access to basic services for all Rapid urbanisation is leading to a growing urban divide and expanding slums, thus placing local authorities at the forefront of the fight against Support for civil society, poverty and the efforts to achieve the Millennium a necessary complement Development Goals. In 2007 and 2009, France to bilateral dialogue actively supported the adoption by the UN- HABITAT Governing Council of international 3.81 The effectiveness of cooperation policies guidelines on decentralisation and access to basic and actions strongly depends on their res­ services for all: water supply, sanitation, waste ponsiveness to citizens’ needs. Inter-state management, energy, transport, communications, dialogue is naturally the prime framework primary schools, health and public safety. France for government cooperation policy, but has been entrusted with the role of lead partner the population at large must also become for their implementation. This will involve suppor­ increasingly involved. France will thus ting decentralisation processes and inclusive systematically mainstream the participation urban policies in those States that commit to of partner countries’ citizens and civil society applying the guidelines with a view to ensuring into its bilateral actions and promote this at aid coordination. European and multilateral level, whether it is translated by the partner government involving citizens upstream in the framing 3.83 France’s partnerships in this field combine of public policies, or in the management, support for government decentralisation and monitoring and evaluation of the actions devolution policies, support for associations supported. France will also support the of local elected officials, strengthening development of bilateral exchanges, as well local government, mobilising human and as exchanges within international networks financial resources, improving citizens’ of twinned organisations set up by France living conditions and sustainable economic and its partner countries. development. French local authorities play a key role in this process via their decentralised cooperation initiatives. Over 5,000 French Local authorities as partners local authorities have engaged with some in local development 10,000 partner authorities on over 12,000 cooperation projects. Local authorities in 3.82 Local authorities are one of the arenas the French Overseas Communities are where governance is strengthened by the particularly well placed to undertake this decentralisation process, particularly the type of cooperation in their neighbourhood. participatory and democratic side of de­ve­

Development Cooperation: a French Vision 34 Ministry of Foreign and European Affairs - DGM Decentralised development Development cooperation policies, often devised at national level as they entail cooperation partnerships, also need to ensure regional Decentralised development cooperation coherence, which is crucial to greater covers all international cooperation actions effectiveness. undertaken by French local authorities (regions, départements, municipalities and groupings) together with a local authority outside of France. Based on agreements between partners, it may 5) Encouraging take various forms: development assistance, institutional support, joint management of the production and goods and services, cross-border cooperation exchange of knowledge or inter-regional cooperation. At present, nearly 5,000 French local authorities are engaged and culture internationally with some 10,000 partner authorities, in more than 12,000 decentralised 3.87 As key factors for long-term development cooperation projects. In 2008, local authorities and the historic priorities of French coope­ allocated €72 million in ODA to projects in ration policy, the knowledge economy and developing countries, of which nearly 60% in the promotion of cultural diversity will remain sub-Saharan Africa and 15% in North Africa. crucial components of this policy.

The regional level, a necessary Research, higher education step towards globalisation and the promotion 3.84 Regional integration enables more effective of innovation are key management of a number of challenges, to sustainable development including international river basins, 3.88 The rise of global challenges and the need migratory flows, which are principally intra- to find new concerted responses and adapt regional, and major transport and energy them to diverse economic, social and natural infrastructure, more particularly in very environments require major investments geographically fragmented regions. It also in research and innovation. French coope­ helps manage tensions and embryonic ration will support development research conflicts, which are often regional (regional in France and encourage the setting up peace-keeping cooperation). of international partnerships with both 3.85 It offers countries a learning environment emerging countries and countries with still for transition to economic liberalisation by nascent scientific communities, where it creating competition between countries at will support scientific development. It will similar stages of economic development and build partnerships and research networks which is fostered by policy harmonisation. to bolster the international activities of It also gives them greater collective clout i French research institutes specialising n international discussions than they would in development questions, such as the have individually. Inter-Establishment Agency for Research for Development (AIRD), universities and 3.86 Stronger regional coordination contributes to a greater effectiveness of national policies. think tanks. It will encourage European Integrated markets provide economies of and international research programmes scale and encourage private investment. and the integration of developing countries’ Regional integration is also a way of researchers into international scientific improving governance through harmoni­ networks. sed legislation, management of common 3.89 It will encourage the sharing, comparison institutions, pooling of public resources and and compilation of scientific research cost sharing, particularly for infrastructure. on major joint issues such as climate,

Development Cooperation: a French Vision 35 Ministry of Foreign and European Affairs - DGM biodiversity, food security and economic Culture, the neglected pillar regulation, in order to foster consensus positions that facilitate collective solutions of development to these problems. Similarly, it will pursue 3.93 France encourages the development of the work begun by the commission chaired culture, arts and languages as a wealth of by Professors Stiglitz, Sen and Fitoussi12 resources for maintaining cultural diversity, to review the methods used for addressing facilitating dialogue between cultures, and measuring development and wealth. peace and development. In the cultural field, 3.90 In order to encourage innovation in France’s cooperation policy seeks notably developing countries, France will also to support national policymaking designed support them for the adoption of systems to structure and professionalize the cultural that protect intellectual property rights in sectors, and to support recognition of local line with their specific circumstances. Within cultural resources and help artists from the European Union, it will contribute to developing countries to access international finding a fair balance between protection for circuits. French cooperation also actively European industries and the dissemination promotes the in the of technology to developing countries, framework of policies in favour of multilin­ including a special approach for the least gualism, especially in Africa, where French developed countries. Technology transfer, is one of the continent’s languages that assistance for the creation of innovative facilitates integration. businesses and capacity building for public 3.94 France’s action also translates into support authorities in developing countries will also for multilateral initiatives, particularly by be encouraged. UNESCO and the International Organisation 3.91 Access to quality higher education is of La Francophonie, and advocacy for a new necessary to meet not only the needs of external cultural strategy for the European society and the economy with respect Union that more effectively mainstreams to innovation, but also the aspirations of culture into development policy. At bilateral the world’s fast-growing middle class for level, initiatives include the French network upward through education for cultural and linguistic cooperation and skilled employment. Faced with an abroad and its specialist operators, the two increasing social demand that has to adapt pillars of which are the Institut français and to a changing labour market, state higher the Agence pour l’enseignement français à education often suffers from insufficient l’étranger. funding and poor responsiveness, without there being a satisfactory alternative from the private sector. French cooperation will Dissemination of knowledge support the balanced development of public and ideas through a range of and private higher education institutions through partnerships for higher education media guarantees the pluralism and vocational training. It will also support the so vital for development development of university studies abroad, 3.95 Making the world’s vast cultural, scientific mainly through its Francophonie initiatives. and literary wealth accessible to as many 3.92 France will pursue its policy of hosting as possible is a way of preserving existing foreign students in France: each year knowledge, enhancing mutual understanding, 260,000 foreign students receive virtually and envisioning possible futures; it guaran­ free higher education in France. This is an tees pluralism in debate, which is a factor for investment that the Government and some development. France actively encourages local authorities supplement with targeted all forms of dialogue within and between individual support in the form of study grants. societies by supporting the dissemination Within the French cooperation framework, of knowledge: debates, conferences, exhi­ it will also ensure that the mechanism for bi­tions, publications and communication hosting developing country students in geared to the general public, and one-off France places priority on the needs of the cultural events. Cooperation policy will countries of origin. encourage access to free and pluralistic

Development Cooperation: a French Vision 36 Ministry of Foreign and European Affairs - DGM media by supporting the professionalisation managed by the Institut de recherche pour of audiovisual sector. le développement (Research Institute for Development) in the following countries: Burkina Faso, Cameroon, Central African Republic, Chad, Djibouti, Madagascar, Mali, Morocco, Promotion of scientific Senegal and Yemen. It aims to build national and technical culture (PCST) capacities to disseminate scientific culture, in Africa and Madagascar professionalise the players and bring together PCST is promoting more effective dissemination their initiatives, offer them greater visibility and of scientific and technical knowledge in Africa. mobilise decision-makers. From 2004 to 2009, it The project was set up in late 2004 and is supported over 150 projects.

Development Cooperation: a French Vision 37 Ministry of Foreign and European Affairs - DGM Implementing differentiated Maximising the impact partnerships of France’s actions

4.1 Development cooperation is one of the key of this population trend, the number of new assets of France’s international action. labour market entrants will jump from a The missions assigned to development current 17 million annually to 27 million in cooperation vary from one country to another 2030, in a context where employment in line with the challenges they face. This prospects are uncertain. The continuing means that they also differ with respect to increase over the next 40 years in the the strategic objectives pursued and the number of working-age individuals compared partnerships formed. to total population may be an asset if these young people receive suitable training and 4.2 France’s action in the area of development find jobs. cooperation will focus on two priority regions, sub-Saharan Africa and the Mediterranean 4.5 Africa holds vast potential. It possesses region; it will at the same time be rolls out huge reserves of mineral wealth, natural in two categories of country: crisis countries resources and arable land. The majority of and emerging countries. African countries have made rapid economic headway. Capital flows to the continent have 4.3 As a necessary supplement to the differen­ stepped up sharply since the turn of the tiated partnerships, France will pursue its millennium, with considerable investment efforts at international level with a view to in the mining sector, infrastructure, tele­ establishing rules, mechanisms and forms of communications, transport and the agri- collective financing on a global scale. food sector. Wagering that its demographic dynamics will turn into a market dynamics, new investment funds are now seeking returns on the continent higher than those 1) Africa: supporting in industrialised countries, while the new growth and achievement powers, with China in the lead, are investing there heavily and probably for the long of the MDGs term. 4.6 Since the advent of the new millennium, Africa, Europe’s neighbour, Africa has combined three assets: a sharp faces major challenges drop in the number of conflicts; a substantially improved macro-economic environment, 4.4 The last of the world’s regions where notably a lowering of inflation and public is still in progress, debt; and a growth rate that has outstripped sub-Saharan Africa with its present population that of Brazil and India over the 2000-2010 of 850 million will rise to 1.8 billion, or 20% period, and which is now projected to continue of global population, by 2050, according at over 6% until 2015. to United Nations projections—which tops those for China or India at the same date. 4.7 However, Africa is lagging considerably as far The region’s population, now over 60% rural, as the achievement of the MDGs is concerned. is urbanising rapidly with over half set to Poverty is widespread, although unevenly become -dwellers by 2035. Its population distributed: 50% of the region’s population is young, with two-thirds under 25. Because was affected in 2007. The continent’s eco­

Development Cooperation: a French Vision 38 Ministry of Foreign and European Affairs - DGM nomic development is also hampered by 4.10 French cooperation policy in sub-Saharan its geographic fragmentation. Moreover, its Africa also aims to directly promote economic growth generates fewer formal economic growth and job creation. Under sector jobs than in other developing regions. the Cape Town Initiative, France has been working since 2008 to support the private 4.8 To respond to the challenges of these sector: €2.5 billion will be mobilised over constraints and opportunities, French five years to assist 1,900 mainly small and cooperation policy has given top priority medium-sized businesses, with 300,000 to its partnership with Africa to find solutions jobs eventually being created and additional for faster sustainable development. This investor financing of over €8 billion raised. policy comprises two strands: With the same objective, the June 2010 ■ throughout the continent, support for Africa-France Summit saw more than 200 sustainable, job-creating growth, by French and African enterprises commit developing infrastructure and the private to setting up partnerships that comply sector and deepening regional integration; with a charter of common values centred around corporate social and environmental ■ priority allocation of bilateral resources responsibility. with the most attractive concessional rates to support the achievement of the MDGs and strengthen the rule of law in a group of fourteen countries, mainly in the Least Enterprise upgrading programme Developed Country category. in Senegal Since 2003, the AFD has supported the enterprise upgrading programme in Senegal France will strengthen its jointly with the European Commission and partnerships with sub-Saharan the United Nations Industrial Development Africa for sustainable, Organisation (UNIDO). The programme ope­ job-creating growth rates in a setting marked by the cost and uncertainty of local energy supply and 4.9 French cooperation policy seeks to provide a significant impact of industry on the structural responses to the challenges environment, both local (pollution) and global sub-Saharan Africa needs to tackle if it is to (carbon emissions). The programme aims maintain long-run growth and sustainably to step up the competitiveness of targeted reduce poverty. For this, France participates enterprises in Senegal by reducing both their in the financing of investment programmes energy bills and their impact on the environment. in the sectors of infrastructure, urban It is supplemented by a concessional loan development and access to water and to the Senegalese subsidiary of the Société sanitation. According to World Bank esti­ générale (SGBS) geared to refinancing these mates, inadequate infrastructure, especially enterprises’ investments at a highly attractive road transport, telecommunications and rate. electricity, deprives sub-Saharan Africa of 2 percentage points of growth each year. Upgrading this infrastructure would mean 4.11 France will also continue to work to strengthen raising nearly USD 100 billion annually African multilateral institutions: the African over the next ten years. Two-thirds of this Union, African Development Bank, the investment would be financed by African continent’s largest African donor, sub- taxpayers and transport users, with a further regional banks, bodies promoting economic share from foreign direct investment. integration, river basin agencies and other International public donors, however, have regional institutions such as the Organisation an important role to play in meeting these for the Harmonisation of Business Law in needs, whether through direct funding or Africa (OHADA). This support will involve in in the form of guarantees to help raise particular the Euro-African Partnership and private funds. Franc Zone institutions.

Development Cooperation: a French Vision 39 Ministry of Foreign and European Affairs - DGM 4.12 Migration is also a salient factor for the region’s development. Twenty million Improving teaching quality Africans live outside their country of birth, and building management capacities 4 million of whom live outside Africa. There in educational systems is a regular dialogue on migration issues in Burkina Faso between Europe and Africa, grounded on Since 2002, Burkina Faso has run a national their common interest to regulate migratory education development programme to enrol flows by reducing the disparities in their all country’s children in primary school by economic and social development, in line 2015. To that end, under the Education for All - with the Millennium Development Goals. Fast-track Initiative, the country has received Agreements on the concerted management funding on five successive occasions, totalling of migratory flows and co-development are €53 million. These grants, combined with partnership instruments geared to building funding from other partners and the state up competencies in the home countries. budget, have helped finance educational investments and led to a significant rise in the enrolment rate (72% in 2008, compared Funds earmarked for MDG with 46% in 2001). Part of the AFD assistance achievement will go to more specifically targets improved financial 14 priority countries, mainly management, teaching quality and the transfer poor Francophone countries of powers to local authorities. in sub-Saharan Africa

4.13 The meeting on 5 June 2009 of France’s France will mobilise Interministerial Committee for International all its bilateral cooperation Cooperation and Development (CICID) resources for Africa and established a list of fourteen priority poor countries that will benefit from the most encourage heightened concessional aid in view of financing social multilateral mobilisation services and strengthening the State13. 4.15 Bilateral cooperation will adapt to the These countries were selected using a set needs, priorities and capacities of France’s of economic and social criteria, and also partners by drawing on its diverse modes considering the depth of their cultural and of intervention: loans, concessional or linguistic ties with France, and to immigrant otherwise, grants, guarantees, equity communities. financing, technical assistance, scientific 4.14 The fourteen priority poor countries will and academic cooperation. In countries naturally have access to support for that have been hit particularly hard by the bolstering economic development, parti­ debt crisis, innovative financial solutions cularly infrastructure and the private will be mobilised, such as loans where sector. However, considering the particu­ repayments are adapted to fluctuations in larly acute economic and financial export earnings (known as counter-cyclical constraints that hamper their capacity loans). Overall, for the budget triennium to tap into financial markets, France will 2011-2013, sub-Saharan Africa will receive target its most concessional financing over 60% of France’s bilateral aid. (grants and very-low-interest loans) to these countries on promoting the access to basic services for their poor and on improving Niger: helping economies and the status of women. These countries will also have priority support for state capacity societies adapt to climate change building in the area of developing and In the last three decades, Niger has suffered implementing public policy. Overall, for the the effects of persistent drought, which has three-year budget period 2011-2013, the accelerated the degradation of the natural 14 priority poor countries will receive at environment and encroachment of the least 50% of France’s bilateral grants. desert. The availability of surface water for

Development Cooperation: a French Vision 40 Ministry of Foreign and European Affairs - DGM farming is seriously threatened by erosion The AfDB plays a major role in terms of and desertification. In response, the AFD has African ownership, intellectual output and granted €11 million to the Government of Niger policymaking capacity, as well as training for a project to improve rainwater infiltration on for African managers whose development plateaus and in valleys and increase farming will be supported by France’s development and production by developing the cooperation. Badaguichiri river basin. The project will help 4.19 As fifth largest contributor to the World to improve the absorption of CO2 emissions Bank’s International Development Asso­ by protecting and developing 10,000 hectares ciation (IDA), the world’s largest concessional for silvopasture, fixing 25,000 tonnes of CO2 fund, France will also ensure that an by the end of the project. Developing the river increasing share of this fund is earmarked basin also improves soil resilience and reduces for sub-Saharan Africa, with the objective vulnerability to extreme events such as drought. of at least 50% already set for IDA15. It The project thus brings responses for both will advocate in favour of continuing to give better water management in arid areas and Africa priority with respect to the Global the preservation of natural resources, which Fund to Fight AIDS, Tuberculosis and are particularly fragile in Niger due to the harsh Malaria and the other vertical funds to which climate and population pressure. it contributes.

4.16 France will also continue to encourage the numerous initiatives by French and The Franc Zone African civil society that enrich the bilateral The Franc Zone covers three separate cooperation relationship. regions each with its own currency: the eight 4.17 The high level of financing from the EDF West African Member States (Benin, Burkina (European Development Fund) and the Faso, Côte d’Ivoire, Guinea Bissau, Mali, actions of the EIB (European Investment Niger, Senegal and Togo) of the West African Bank) provide a major contribution to Economic and Monetary Union (WAEMU), the cooperation with Africa, particularly with six Central African Member States (Cameroon, respect to trade liberalisation and support Central African Republic, Chad, Congo, Gabon for the productive sector. France will work and ) of the Central African with its partners to adapt these European Economic and Monetary Union (CAEMU), and financial instruments. It will support the Comoros. expansion of EIB activities in the region, This monetary cooperation, whose is working closely with African banks and unique, is based on four founding principles: European bilateral agencies. Increased France’s guarantee of unlimited convertibility, use of loans and mechanisms mixing loans fixed parity between the Franc Zone currencies and grants should make it possible to (CFA francs and the Comoros franc) and the scale up available financing and to reserve euro, free transferability of funds within each grants first and foremost for poverty sub-region and the centralisation of foreign reduction and for support to social sectors, currency reserves. particularly in the poorest countries. The Franc Zone has enabled WAEMU and CAEMU member countries to lay the foundations 4.18 France will support the African Development for regional integration and solidarity, which are Bank, which has refocused its actions vital to increasing their growth potential and on a range of targeted sectoral priorities: bolstering their resilience to external shocks. infrastructure, private sector, governance, Within this framework, France gives financial fragile states and regional integration, thus support to the two sub-regions’ development creating a leverage effect for these priorities; banks, the West African Development Bank geographically, the group’s actions dovetail (WADB) and Central African States Develop­ment with the CICID’s desire to concentrate funding, Bank (CASDB), and each year provides general since the fourteen priority poor countries are budgetary aid to finance regional integration eligible for the AfDB concessional financing projects. The Franc Zone’s regional Unions window, the African Development Fund. have adopted a process of macroeconomic

Development Cooperation: a French Vision 41 Ministry of Foreign and European Affairs - DGM convergence to strengthen the operation of population growth and migration will mean these monetary unions and guarantee the 75 million more city-dwellers by 2030, sustainability of budget policies. mainly in coastal areas. This evolution The France Zone is, not least, a prime forum will pose not only the challenge of scaling for dialogue, with half-yearly meetings of the up what is currently an inadequate level finance ministers of the Member States. of investment, but also a major social and environmental challenge in the receiving areas, thus accentuating the issue of food security. These fast-paced changes are 2) Mediterranean: forcing Europe’s Mediterranean neighbours to make far-reaching and simultaneous sustainable transformations to their economies and development with labour markets, societies and institutions, as well as to their relationship with a fragile prospects for and endangered environment. In this setting, convergence implementing a social protection floor to improve social cohesion, stability and 4.20 As a zone of contact between Europe, Asia sustainable development is of heightened and Africa, between Christianity, Islam and importance. Judaism, the Mediterranean Basin is a 4.22 In this process, Europe is a leading partner sphere of encounter, tension and conflict as for the countries south and east of the well as a strategic gateway. France and its Mediterranean. By taking advantage of neighbouring countries on the southern and geographic and cultural proximity and eastern shores of the Mediterranean have ensuring the sustainable use of fragile woven close ties as a result of this geographic natural resources, the Euro-Mediterranean proximity and the inter-relationship between partnership has all the necessary condi­ these societies, notably due to the presence tions to develop the Mediterranean into in France of large communities from these an attractive economic area that carries countries, to historical migratory flows and benefits for the region’s populations. It must to an extensive Francophone community on strengthen regional integration, particularly either side of the Mediterranean. with respect to productive sectors and financial markets, which remain limited as evidenced by the relative weakness of trade The Mediterranean Basin: and investment flows. four challenges to be met 4.23 It was to give practical shape to this through regional cooperation, special partnership that the Mediterranean notably within the Union for was included in the European Union’s the Mediterranean partnership Neighbourhood Policy. The Barcelona Process, launched in 1995, seeks to 4.21 Despite their proximity, the Mediterranean encou­rage economic convergence, build a Basin countries have followed diverging political partnership and promote cultural trajectories. The income disparities between exchanges. To go a step further, at the the European Union and its neighbours are Paris Conference on 13 July 2008, the high and not easy to reduce. The population President of the Republic launched the level in the European Union has largely Union for the Mediterranean. The Union stabilised, whereas in the countries south and offers a partnership approach between east of the Mediterranean it is still growing: European Union member countries and all the United Nations estimates that over the of the countries bordering the Mediterranean coming twenty years the Mediterranean that develops a practical solidarity-based region from to Morocco will see the mechanism for the States concerned arrival of 60 million young people, including enabling them to address common issues graduates, on the labour market, and that through projects of direct benefit to citizens.

Development Cooperation: a French Vision 42 Ministry of Foreign and European Affairs - DGM French cooperation in the With financial support from the Ministry of Immigration, Integration, National Identity Mediterranean has three and Co-Development14, under the agreement distinct priorities for three on the management of migratory flows and groups of countries co-development concluded with Tunisia, the AFD grants €17.8 million to finance 4.24 France’s cooperation policy in the region vocational training centres offering courses pursues three complementary priorities: in construction and public works, welding and support for job-creating growth in the steel construction, and applied aeronautical countries around the Mediterranean with engineering. a view to economic convergence together with support to accompany social change so as to increase cohesion and limit ■ contribute to modernising the productive tensions and conflicts constitute two major sector by supporting the development of challenges for France, Europe and the SMEs, improving the provision of financing southern Mediterranean countries. The and vocational training, the quality of preservation of the Mediterranean Sea is infrastructure, and energy management; the third challenge, as this virtually closed ■ promote agricultural and rural development sea is one of the most polluted in the world contributing to food security; and, according to various climate change scenarios, particularly vulnerable. ■ encourage better management of natural resources, particularly water resources and 4.25 These priorities comprise five concrete coastal areas, and the protection of cultural objectives in line with the initiatives of the heritage. Union for the Mediterranean:

■ encourage the harmonious development Wastewater treatment in Cairo of territories, and in particular support the settlement of new city-dwellers by supporting Cairo, with a population of 12 million, discharges public infrastructure and services; nearly 5 million m3 of wastewater per day. Greater Cairo’s master plan for sanitation provides for ■ support a higher level of human deve­ wastewater treatment in three modern plants lopment via university and cultural in order to cope with the needs of a growing cooperation and the development of circular population. In 2009, AFD granted a €50-million migration; loan to co-finance with the African Development Bank and the Egyptian government an extension to the East Bank treatment plant, Gabal El Asfar, Vocational training in Tunisia costing an estimated €230 million to serve to support growth 1.5 million users. The work will be carried out by a public entity attached to the Ministry of Since 1996, the AFD has supported Tunisia Housing, Utilities and Urban Development, in its policy for upgrading vocational training. which will grant a two-year Build-Operate- This means promoting a skill-based approach, Transfer to an international private operator. alternating study with work experience and The project will prevent the direct discharge partnership between the administration and the of untreated wastewater into the natural professional branches concerned. In practice, environment for the next 10 years. the AFD has set up three successive credit lines for a total of €73 million to support the creation or restructuring of 24 vocational training 4.26 These priorities apply differently to three centres for tourism, agriculture and industry, groups of countries: with an annual flow of 13,000 trainees. The AFD grants loans to finance capital investment ■ France maintains strong ties of proximity and educational engineering and strengthen with the countries of North Africa and has the institutional mechanism. An additional grant made Egypt a major economic and politi- goes to Tunisian professional branches to foster cal partner in the Middle East. It proposes exchanges with their counterparts in France. to these countries, all of which face similar

Development Cooperation: a French Vision 43 Ministry of Foreign and European Affairs - DGM challenges for economic growth and job ■ financing SMEs via investment funds, thus creation, a comprehensive approach that contributing to a broader, more sustainable mobilises a whole range of tools—loans, shareholder base and improved standards grants, and expertise. This cooperation, of governance and risk management; supplemented by consultancy for national ■ recapitalising and consolidating the banking policymaking, aims to make France a key sector, enabling it to respond to the liquidity partner for these countries; squeeze and encourage investment; ■ in the countries of the Middle East, where ■ helping to finance major industrial projects, the geopolitical stakes are high, France encourage investment, boost outsourcing, will target actions on critical issues. The and promote corporate social and envi­ instruments used will be mainly loans ronmental responsibility. and technical assistance, except for the Palestinian Territories, where its interven- The FISEM mainly intervenes through invest­ tions will mostly involve grants; ment funds and «funds of funds», but for major operations it may invest directly. A «venture ■ in Turkey and the Balkans, the cornerstone capital» facility is used to support innovation of cooperation is convergence with the and the development of high-growth businesses European Union in terms of regulatory in sectors with delayed returns on investment. acquis, social and environmental standards and economic competitiveness. 4.28 French cooperation will give a prominent place to knowledge sharing: university Mediterranean cooperation cooperation, vocational training, expertise mainly mobilises financial and consultancy, shared knowledge production, counterpart exchanges under intermediation and knowledge decentralised cooperation and twinning exchange, in close association initiatives, etc. with the European Union 4.29 At European level, France will support a 4.27 The Mediterranean countries are all middle- neighbourhood policy based on ambitious income countries. Bilateral cooperation partnerships in order to foster the creation will thus use a broad range of financial of an area of political stability and econo­mic instruments: chiefly loans with low rates of prosperity. This objective involves in-depth concessionality, guarantees, investment dialogue notably on democratic values funds and public-private partnerships, and, and energy and environmental policies, on occasion, grants in order to remove encouraging the transfer of the acquis bottlenecks, to seed investment dynamics communautaire in these fields. France or to target financing for actions which though will ensure the pursuit of the objective to not cost-effective have a high environmental allocate two-thirds of EU Neighbourhood or social impact. Overall, Mediterranean Policy funding to its southern neighbours, cooperation should mobilise 20% of in line with their population size and the French bilateral development aid for the scale of the economic and social challenges budget triennium 2011-2013. facing them. To determine the appropriate levels of budgetary aid, France will press for each country’s specificities to be taken One response to the crisis: into consideration. the Investment Facility to Support 4.30 As a partner and shareholder, France will the Economic Development support reinforced action in the region by of the Mediterranean (FISEM) the World Bank, which France and other European players have partnered within The FISEM is a product designed to respond the Marseille Centre for Mediterranean to enterprises’ structural requirement for equity Integration. France will also support the financing, which has aggravated by the global actions of international financial institutions crisis. It does this in three main ways: and other donors for large-scale initiatives

Development Cooperation: a French Vision 44 Ministry of Foreign and European Affairs - DGM such as the Mediterranean Solar Plan, 4.34 The exceptional dynamism of the emerging which will receive contributions from the countries thus raises, even more pressingly, World Bank’s Clean Technology Fund. the question of economic development models and their impact on economic, social and environmental balances. 3) Emerging countries: managing global Cooperation with emerging balances countries enables joint preparation of the responses The capacity of emerging to future challenges countries to meet their internal 4.35 French policy for cooperation with emerging challenges impacts on global countries aims to jointly explore the issues development and the daily lives that need addressing so as to create the conditions for sustainable and shared of French citizens economic and social progress. For this, it 4.31 The gap between the economic and social will lay particular emphasis on the social and models of the major industrialised and environmental dimensions of development. emerging countries is narrowing and the In this area, it is pursuing two priority widespread adoption of growth models objectives, through its support for policy poses a major threat to global balances. development and financing: This makes cooperation with the emerging ■ first, encourage these countries to move countries a necessity in order to find towards a growth model that consumes new approaches that reconcile large- fewer natural resources, produces fewer scale economic and social progress with greenhouse gas emissions and is more the overarching constraints of financing, equitable, notably through a strengthening employment and the environment. The of domestic demand and social protection emerging countries are already having a mechanisms; huge impact on global balances, whether in terms of commodities, arable land, trade ■ second, encourage these countries towards dynamics or financial flows and monetary greater involvement in assistance to the issues. poorest countries by participating both in the efforts to mobilise funds for these 4.32 The trajectories of the major emerging countries and in the international debate countries over the next twenty years will on changing practices in this field. have a structural effect on the entire global economy, on access to commodities and 4.36 These two objectives can be achieved only fossil fuels, on the environment, the economy if the emerging countries take them on board and working conditions, international in their own manner, which is the result of security, etc. This means that citizens living their historical and social legacy. in France and the poorest countries are as 4.37 France’s approach to cooperation is one that much concerned as their own citizens. encourages the quest for innovative solutions 4.33 Yet, the emerging countries still up against by mobilising technical and financial expertise major challenges. They need to invest and supporting the joint development of massively to sustain growth and manage exemplary projects that demonstrate the its social and environmental consequences. socio-economic soundness of approaches They need to organise the redistribution of dovetailing growth, greater social impact and wealth so as to maintain social consensus limited environmental impact. By working and territorial balance at a time when with emerging countries on practical solutions economic change and rapid urbanisation to the problems they face, these cooperation are exerting considerable pressure on their initiatives help to build up a relationship of modes of political and social regulation and trust vital to the success of negotiations on vast pockets of poverty still subsist. the overarching global issues.

Development Cooperation: a French Vision 45 Ministry of Foreign and European Affairs - DGM 4.38 In this approach to developing new know- Bilateral cooperation, how and identifying common rules, there is mutual benefit to be gained by comparing third-country cooperation experiences and mixing expertise, whether and strategic dialogue are this be inventing models for sustainable and complementary socially inclusive cities or economic growth paths that are employment-intensive and 4.41 Since it intervenes primarily in countries that have limited impact on natural resources. are of systemic importance at both global and regional level, cooperation with the 4.39 This cooperation broadly leverages, on a emerging countries mostly uses medium- collaborative basis, the know-how of French and long-term loans at low or non-subsidised players: businesses, local authorities, resear­ rates. This assistance is an entry point chers and academia, specialised public for technical cooperation and promoting institutions, etc. expertise, know-how and technology. It may be supplemented in some cases by a technical assistance component and ad Combating climate change hoc matching grants. Overall, cooperation in Indonesia with the emerging countries is likely to mobilise no more than 10% of France’s Indonesia is the world’s third largest emitter bilateral aid for the triennium 2011-2013. of greenhouse gases. Since 2007, the Indonesian government has been working 4.42 In areas such as economic and trade coope­ to step up restrictions on this issue in ration, promotion of sectoral dialogue, support national development policies. The country’s for higher education, scientific and technical commitment was substantially scaled up with cooperation and energy and environmental the presidential announcement in September questions, European cooperation is taking 2009 that it would unilaterally reduce its on a growing importance. France will emissions by at least 26% by 2020 compared encourage the adaptation of Europe’s with the current trend scenario. In 2008, Japan Development Cooperation Instrument in and France, joined by the World Bank in line with the needs of the emerging 2010, decided to grant budgetary aid to countries so as to ensure continuity in the encourage this substantive and innovative partnerships until these become eligible for gesture from an emerging country. The AFD the European Instrument for Industrialised granted three successive loans, transferred Countries. This eligibility should be directly to the state budget, to support its facilitated, particularly for programmes that three-year programme to combat climate do not fall within the scope of development change. It also supplied expertise notably assistance. This evolution implies greater on issues relating to forests and industrial use of loans, private financing and trade energy efficiency. The programme encourages advantages. Nonetheless, grants must still both the endogenous evolution of government be made available, particularly to support policymaking and interministerial cooperation reforms in key sectors. to fight against climate change, at the same 4.43 These cooperation actions are naturally time promoting French know-how. It has been pursued through the international strategic transposed to , Mauritius and Vietnam, discussions, within the framework of the at a total cost of over a billion euro. G-20, the international financial institutions (particularly regional development banks, 4.40 France will also foster the dialogue with in which regional countries have the the emerging countries on policies for majority of votes) and the United Nations, development assistance to the poorest where practical cooperation, knowledge countries and on support for fragile states sharing, greater mutual understanding and crisis countries. The dialogue with these between players and joint action in third new donors should draw on the diversity countries should encourage the emergence of French approaches and know-how to of common stances on major international produce common rules that are primarily in issues. The common development of inno­ the interests of third countries. vative solutions for green and inclusive

Development Cooperation: a French Vision 46 Ministry of Foreign and European Affairs - DGM growth will enable these countries to play a civil societies. This means in particular provi­ constructive role in international fora, such ding support for the economic and social as the international climate negotiations, integration of young cohorts arriving on the without needing to sacrifice their rate of labour market and of migrants leaving the development. countryside for cities, thus reducing the likelihood that they will turn to crime.

Regional cooperation between 4.46 The second key role of cooperation during and immediately after crises is to coordinate French Guiana and Brazil humanitarian assistance, reconstruction French Guiana and the State of Amapá in programmes and the return to development northern Brazil share a 730-km border where assistance so as to avoid gaps in delivering France and Brazil have decided to intensify assistance to vulnerable communities their cooperation actions. The two territories and institutions. Effective articulation of are part of the Guiana Shield and have common the response phases is also crucial for challenges, particularly in the areas of spatial disaster response as seen yet again after planning, forest management and biodiversity the Haiti earthquake in early 2010, as well conservation. The French Global Environment as for displaced communities in need of Facility (FFEM) provides co-financing for resettlement assistance and for the transfer the development of a policy for sustainable of responsibility from the specialist bodies management of forests and biodiversity in the working in displaced-person and State of Amapá. The opening of a bridge over camps to those players whose mission is the Oyapock in late 2010 and the creation of to manage the process of resettling these the Franco-Brazilian centre for Amazonian people in their areas of origin. biodiversity are further evidence of the two 4.47 In every case, France’s involvement is countries’ determination to strengthen regional guided by the principle of not imposing ties through cooperation initiatives. a preconceived framework for action but rather helping societies to establish or restore their own modes of collective action. 4) Countries in crisis: Support and political will from governments is indispensible. For rehabilitation and bolstering stability reconstruction policies, the restoration (or creation) of basic infrastructure goes hand Giving priority to prevention in hand with the revival or creation of the and then to coordinating main public services. any necessary interventions French development 4.44 The priority in fragile countries is to develop cooperation will specifically preventive approaches to avoid the outbreak focus on three regions with a of conflict. The reason is that the immediate human and material cost of crises and the high concentration of poverty, cost of crisis-exit operations, which are long- instability and security risks term responses with uncertain results, often 4.48 Three geographic zones are of particular involving large, complex military forces, are import to France with respect to its disproportionally high compared to the cost contributions to building a more secure of prevention. world as much for the benefit of local 4.45 Preventive approaches are based on populations as for its own security concerns. strengthening the State, as the guarantor These zones stretch along an arc of crisis of the common good, with respect to the from Mauritania to Central Asia via the government’s capacity to listen to its people Horn of Africa and the Middle East, which is and address in the long haul the economic characterised in some places by worryingly and social inequalities that undermine the fragile states, inadequate or insufficiently cohesion of fragile societies. They are also inclusive development, episodic clashes based on promoting robust and diversified and armed conflict.

Development Cooperation: a French Vision 47 Ministry of Foreign and European Affairs - DGM 4.49 The Sahelo-Saharan region suffers from donors’ interventions. Given the political both serious lags in development and a rise situation, municipalities play a key role in in security threats and trafficking that States delivering services to the population. Within are finding hard to tackle. Cooperation action this programme, the AFD concentrates its aims to provide support for the populations action on a limited number of municipalities, by re-establishing basic services and where it finances projects for roads, urban bolstering the government in the exercise of water services and social facilities and where its sovereign missions (police, civil security, decentralised cooperation initiatives by French justice, devolved administrations), and at local authorities are concurrently being rolled the same time by increasing civil participation out. in decision-making processes. It also aims to reduce the causes of tension, and where 4.51 In Afghanistan, French cooperation will security threats become critical, to run continue to implement development actions programmes to strengthen security forces that have a rapid impact on the welfare of (customs, police, army) that are accompanied Afghan communities, particularly in those whenever possible by actions to help rapidly areas where French military personnel are roll out public services in response to local deployed. communities’ needs. These are situations in which the security and development components are closely interlinked or even implemented simultaneously. Rural development in Afghanistan As part of NATO’s security intervention in 4.50 In the Middle East, the strengthening of civil society and local authorities should lead to Afghanistan, France has sent military resources concrete progress and the reestablishment to the Surobi District and Kapisa Province, of social ties. Whether in the Palestinian near the capital, Kabul. This intervention is Territories or Iraq, France’s diplomacy is supplemented by development projects in committed to a political settlement of the the same region. These projects target the regional crises. French cooperation policy development of farming activities and the aims to provide on-the-ground support to delivery of basic services (education and health strengthen socio-economic players and in particular). They are geared to producing democratic institutions. In the Palestinian rapid and positive results for the communities Territories, for example, it supports those living in areas where French military personnel civil society organisations that provide are deployed. citizens with basic services. It also supports local authorities by financing urban 4.52 This focus on three structurally fragile amenities and drinking water supply and zones does not mean that France will not providing management capacity building. In respond to emergencies caused by political addition, it aims to enhance social cohesion or natural crises in other zones. Since crises in countries torn by multiple societal divides and natural disasters usually mobilise a and community tensions, while at the same large number of players, France will act time supporting collective investments that within the coordination frameworks set up directly help to improve the populations’ in each case and will operate to complement material living conditions. other players in those sectors where it has acknowledged competencies. 4.53 F or the budget triennium 2011-2013, Support for strengthening 10% of the bilateral grants of French West Bank municipalities development cooperation will be reserved In the West Bank, France contributes financially for crisis and post-crisis responses to a multi-donor fund designed to finance (excluding therefore the resources invested basic infrastructure, build municipal capacities in countries where the response is of a in technical and financial management and preventive nature). harmonise the conditions of the contributing

Development Cooperation: a French Vision 48 Ministry of Foreign and European Affairs - DGM Successful preventive and ■ finally, any response to a crisis situation depends on appropriate financial tools such crisis management strategies as grants, which are rapidly rolled out and require flexibility and flexible with regard to their purpose and coordination modalities.

4.54 The success of French cooperation depends 4.55 The European Union is today a foremost on three complementary conditions: player in the financing of conflict prevention and peace building. France will encourage ■ the capacity of French public and private the development of European capacities players to conduct coordinated long-term for analysis and action in fields such as actions is essential. Whether for security security sector reform programmes, law crises or natural disasters, once the emer­ enforcement and police, disarmament pro­ gency humanitarian assistance and stabili­ grammes, demobilisation and re-integration sation is completed, crisis management of ex-combatants. It will encourage the should include a phase of reconstruction European Union to continue its support for and revival of development processes. This the African Peace and Security Architecture phase needs to be prolonged by setting via the African Peace Facility, the main up preventive mechanisms, tools and source of predictable financing for African procedures to limit the consequences of peacekeeping and security operations, such situations; with support for African capacity building (particularly for the African Union) in the ■ effective coordination between widely differing public and private players that area of administrative and financial mana­ mobilise in crisis situations should enable gement of the allocated funds. most needs to be covered collectively. 4.56 France will also ensure that conflict and This requires a structure facilitating the post-conflict states continue to receive ongoing exchange of information, the special treatment from international financial framing and implementation of a response institutions in order to assist reconstruction strategy, the allocation of human and and prevent crises. This could involve, for financial resources and an assessment of example, arrangements allowing post- processes and outcomes in order to improve conflict countries a period of three to six future responses. A core aspect of concerted years during which they are allocated action needs to include the modalities resources via a procedure derogating for cooperation between the civilian and from the requirements of the general military response components; this should performance-based allocation system. be done around common objectives and in compliance with the respective legal frameworks and modes of action;

Development Cooperation: a French Vision 49 Ministry of Foreign and European Affairs - DGM effectiveness of cooperation policies. Trade issues (market access, fewer competitive The ermergence distortions) and migration issues (regulating international mobility, managing brain drains, of global sharper focus on the role of communities) are taking on greater importance due to their impact on the developing countries’ policies economies. 5.5 In this world of interdependence, there is a clear need for collective governance and an overarching approach to development. French development cooperation policy will encourage debate and innovation conducive 5.1 Since the turn of the millennium, development to the emergence of new global public cooperation has undergone a profound change. policies. It is now part of a multilateral framework 5.6 Building on its leading role in international in which common objectives are forged organisations (United Nations, international (Millennium Development Goals, preservation financial institutions, OECD, G-8, G-20) and its of global public goods), common intervention membership of the European Union, France modalities devised (Paris Declaration will encourage a pluralistic debate on the long- commitments on aid effectiveness) and new term stakes for development cooperation response tools developed, as for example both within and among these institutions. As vertical funds like the Global Fund to Fight was the case for the Global Fund to Fight AIDS, Tuberculosis and Malaria or the AIDS, Tuberculosis and Malaria and for Global Environment Fund. Worldwide, it has current initiatives such as the World Water resulted in intensified collective action and Forum, which France will be hosting in 2012, co-financing initiatives to support national, France will promote innovative governance regional or global programmes and policies. solutions that bring together governments 5.2 Development cooperation has also seen a and the representatives from civil society and sharp rise in the number of players, together the private sector that are playing a growing with different ways of operating, which role in international dynamics. raises formidable challenges for coherence 5.7 Through the research France has led, and efficiency. The growing importance of particularly on the measurement of economic large foundations and non-governmental performance and social progress12, and organisations and the arrival of emerging through the participation of French experts countries as donors increase the potential in international scientific themed panels, it cumulative effect of development assistance, will contribute to the international public yet at the same time make its architecture debate, the emergence of a consensus more complex. This means that greater on the different issues, and proposals for cooperation between players, based on sustainable global development. modalities adapted to this complexity, is indispensible. 5.8 As provider of the Permanent Secretariat of the Leading Group on Innovative Financing 5.3 Although Official Development Assistance for Development, France will also pursue its plays a prominent role in financing the action to foster the development of innovative economic development of some countries financing mechanisms enabling global (particularly the least developed countries and issues to be financed by the international conflict and post-crisis countries) and basic community, as for example the airline ticket social services, its long-term effectiveness tax, the International Finance Facility for depends heavily on the decisions relating to Immunisation, more targeted channelling other sectoral policies in the developed and of migrant remittances and the currently emerging countries. debated tax on international financial 5.4 In a globalised world, policy coherence will transactions. increasingly play a determining role for the

Development Cooperation: a French Vision 50 Ministry of Foreign and European Affairs - DGM A duty: evaluation and accountability

A more detailed measurement Measuring the impacts of the development cooperation of cooperation policies is effort is needed to reflect a complex but necessary task

the diversity of needs and 6.3 Measuring the quality of the actions instruments carried out and assessing their results is indispensible. Not only is this a democratic 6.1 The main indicator used at present to measure developed countries’ contribution requirement with respect to Parliament and to development financing is the measure of French citizens, but also to the populations Official Development Assistance (ODA), as and authorities in beneficiary countries. This defined by the OECD Development Assistance analysis of results is also vital to improving Committee and generally expressed as a the relevance and effectiveness of the share of the donor country’s Gross National operations carried out, to heightening the Income15. This synthetic indicator sums accountability of the players tasked with amounts of a widely differing nature and implementing them and to capitalising on does not integrate all the instruments used past experience. for development financing. As a result, it 6.4 Measuring the effects of cooperation does not satisfactorily report either the level policies, however, runs into major difficulties. of financing a partner country will concretely Development assistance is the outcome of receive for the investment it needs, or the complex, closely interlinked national policies, level of budget commitments made by the in which the international community generally donor country, which means that its tax­payers plays but a minor role in terms of shaping and Parliament cannot get a precise picture or financing them. It is thus extremely difficult of the national efforts undertaken. to separate out the different effects of external 6.2 France will consequently seek to enhance aid on the overall evolution of a country’s its capacity to report the French contribution economy or social context, particularly since to development using a more refined the country involved may be largely affected indicator of aid flows. The current indicator by externalities: fluctuating world prices, must undoubtedly be maintained since it international financial or economic crises, the is harmonised at international level and consequences of variations in rainfall, etc. measures the extent to which developed countries honour their commitments. France will seek to promote the complementary Evaluation will take four use of a broader indicator allowing for more complementary routes to a comprehensive reporting of the all the closer monitoring of results contributions to development financing. 6.5 France will strengthen the evaluation of its actions in favour of development, using a mix of instruments:

Development Cooperation: a French Vision 51 Ministry of Foreign and European Affairs - DGM ■ external evaluations of projects, whose in partnership with French and international direct outputs are more readily measurable, scientific teams. So far, ten impact studies are will be systematically conducted on the either completed, underway or in preparation. basis of best practice identified by the Impact evaluations are based on the rigorous OECD. This will contribute to discussion measurement of what effects an intervention on sectoral development and to more has on its beneficiaries’ welfare and on an in- adapted approaches; depth study of the behavioural or contextual mechanisms that led to the changes observed. Rather than measure all of a project’s impacts, Evaluation within they examine those aspects deemed crucial to the French system understanding the effects of the development action. For example, recent studies have The three key players in French cooperation examined the sustainability of health insurance (MAEE, MINEFI and AFD) each have evaluation in Cambodia, the impact of various types of systems that function on a concerted basis. microcredit on rural poverty in Morocco and the They are designed to measure the effective­ factors explaining developmental disparities ness of their bilateral actions and contributions between neighbouring cotton-growing areas in to European and multilateral institutions in Mali and Burkina Faso. Actions are selected for order to better manage intervention moda­ impact measurement on the basis of the dual lities and the channels used to finance objective of producing both development-related French cooperation objectives, to improve the knowledge and operational recommendations functioning of the institutions responsible for concerning the action studied. cooperation through discussions on metho­ dology and the capitalisation of experience, and inform the public and elected officials ■ the cross-analysis of contributing countries’ about the use of public funds and the results cooperation policies (like the OECD DAC achieved by this cooperation policy. The «peer reviews») has proved effective for evaluations are systematically carried out by benchmarking and gathering highly useful external organisations, some of which are assessments of the quality of these policies. from partner countries, in order to build local France will strengthen its participation in capacities in this area of expertise. Most these exchange programmes and encou­ evaluations are available to the public both rage their extension to new public and as publications and websites. From 2007 to private cooperation partners. 2009, the three evaluation units carried out 77 evaluations of countries, sectors, institu­ ■ not least, synthetic indicators of projected tions, instruments and even cooperation and actual results will be developed. A table policy. These central-level evaluations are of indicators will be produced reporting supplemented by decentralised evaluations. the expected effects of programmes funded from bilateral, European and multilateral sources, and providing an assessment ■ an enhanced scientific approach will be of the results once they are completed. systematically used for impact evaluation. The table will be used for simple, explicit France will support the development of work communication on government action. enabling the economic and social effects of cooperation policies to be reported on an objective and quantitative basis and will Informing the public about ODA ensure that these evaluations are used to must lead to accountability draw lessons from the actions it finances. for France’s action

6.6 Public opinion needs to be mobilised in order A scientific approach to the impact to generate new dynamics conducive to development. For this, it is vital that citizens of cooperation policies have greater access to information on For some years now, the AFD has invested developmental issues, strategic choices and in funding and conducting impact evaluations the outcomes of government action in favour

Development Cooperation: a French Vision 52 Ministry of Foreign and European Affairs - DGM of development. In this perspective, initiatives for development education either within a Monde.org – the Home of public framework or at the instigation of civil Development society will receive particular attention. The web portal Monde.org – Maison du déve­ loppement provides development information in French using Web 2.0 technology. It facilitates “Eight times yes!” (Huit fois oui) communication and exchange and the creation of communities, as well as proposing links to campaign other portals and communities. The site compiles In September 2008, the Ministry of Foreign and publishes information from a large number of and European Affairs and the AFD launched partner sites: World Bank, European Commission, an information and awareness campaign on AFD, France Coopération Internationale (FCI), development assistance dubbed «Eight Times OIF, UNDP, IMF, Médiaterre, etc. The beta Yes!» in order to inform the French public, and version was launched in June 2009, and the site especially of schoolchildren, about the eight now contains over 2,000 compiled news items Millennium Development Goals. A website and 2,300 publications. dedicated to the MDGs, www.huitfoisoui.fr, gives a detailed presentation of each MDG, with links to events in France and other 6.7 As in the approach used to prepare this countries, as well as stories of projects relating document, French cooperation decision- to each MDG. It proposes an exhibition display makers will pursue regular dialogue with to schools and local authorities to make civil society representatives and socio- schoolchildren more aware of development professional stakeholders concerning the challenges and international solidarity. In spring priorities and modes of action for interna­tional 2009, the display was offered free of charge cooperation. They will continue to report to to 3,100 schools in Metropolitan France Parliament on the results of Government action, (secondary and primary schools), and over in accordance with the LOLF, integrating the one-third placed their order. A further approach priorities defined in this framework document was made to all junior secondary schools into budget programming, the cross-cutting in Metropolitan France and French schools policy document and performance analyses. abroad, that is 7,119 establishments, to offer In addition, a report on the international the display free of charge. In less than a month, financial institutions will be presented nearly 2,000 schools had ordered it, showing each year. In addition, every two years the the teaching community’s strong interest in the policymakers will submit to Parliament an topic. overview report on the implementation of France’s development cooperation policy. The first report will be presented in 2012.

Development Cooperation: a French Vision 53 Ministry of Foreign and European Affairs - DGM Appendices

coordinating the public players. It is the French Appendix I – The ambassador accredited to the partner country institutional organisation who acts as overall coordinator for the imple­ mentation of cooperation policy in the field. of development Policy implementation mobilises the three cooperation ministries acting as CICID Co-Secretaries and the French Development Agency (AFD) as key ➔ The strategic guidelines for international operator, specialist operators, and the French cooperation and development assistance Global Environment Facility (FFEM). policy are defined by the Interministerial The Directorate-General of Global Affairs, Committee for International Cooperation and Development and Partnerships (DGM) co-leads Development (CICID), chaired by the Prime cooperation policy for the MAEE, which ensures Minister and comprising all the ministers notably the monitoring of the United Nations concerned by development assistance. The system, European cooperation policy and a CICID Secretariat is run jointly by the three number of thematic vertical funds, as well as the ministries more specifically involved in steering formulation and implementation of cooperation and implementing cooperation policy: the policy in the sectors of governance, culture, Ministry of Foreign and European Affairs (MAEE) research and higher education. and the Minister responsible for Cooperation, the Ministry of the Economy, Finance and The Directorate General of the Treasury (DG Industry (MINEFI) and the Ministry of the Interior, Trésor) co-leads cooperation policy for the Overseas France, Local Authorities and MINEFI and is responsible for relations with Immigration14. The CICID brings together as the international financial institutions, questions needed the ministries responsible for Education, relating to debt management (Paris Club Secre­ Higher Education, Research, the Environment, tariat), monetary cooperation with the Franc Agriculture, External Trade, the Budget, the Zone countries, financial cooperation and trade Interior and Defence, and thus has the role of policies (development-related negotiations within ensuring policy coherence. the WTO). It also has specialised cooperation instruments designed for emerging countries The indicative budget programming for resource (FASEP and RPE grants). allocation by country and sector is drawn up at the Strategic Guidance and Programming The International Affairs and Cooperative Conference (COSP) held every year for French Development Department (SAIDS) of the Ministry ODA players under the chairmanship of the of the Interior, Overseas France, Local Authorities Minister responsible for Cooperation. The COSP and Immigration co-leads cooperation policy and also validates partnership framework documents the implementation of co-development projects. (documents prepared jointly with countries The French Development Agency (AFD) is the receiving French development assistance, which principal implementing operator for the deve­ set priority actions in these countries). lopment cooperation policy defined by the The Minister responsible for Cooperation is Government. The AFD has a dual status as the lead minister for French cooperation and, a public agency and a specialised financial as such, has cross-cutting responsibility for institution. Its development assistance mainly

Development Cooperation: a French Vision 54 Ministry of Foreign and European Affairs - DGM translates into loans (concessional or at market ■ the strategy document for the World Bank. rates), subsidies, equity stakes and own-risk guarantees, and into management respon­ sibilities on behalf of the French State or third Sectoral and thematic parties. Its subsidiary Proparco participates in the development of the private sector through strategies equity financing, guarantees and market- ➔ France’s cooperation action operates rate loans. On behalf of the French State, sectorally and thematically via specific, it manages the French Global Environment more detailed strategies, particularly in the Facility, and sits on its steering committee with following sectors: the MAEE, MINEFI, MEDDTL and MESR. The AFD comes under the joint supervision of the ■ education and training; DGM, DG Trésor and the Ministry of the Interior ■ gender; responsible for Co-operative Development, as ■ water and sanitation; well as of the Minister responsible for Overseas ■ health; France. The AFD has a 16-member Board of ■ AIDS control; Directors on which the French Government ■ agriculture and food security; holds six seats. The Government’s positions ■ nutrition; with respect to the AFD are decided by the ■ development of infrastructure in sub- Strategic Steering Committee (COS), headed Saharan Africa; by the Minister responsible for Cooperation, ■ protection of the environment and biodiversity; who also supervises the drafting of a single targets and resources agreement between ■ development of the private sector; the AFD and the French Government. The ■ tax resources in developing countries; implementation of French cooperation policy ■ aid for trade. depends also on a group of specialist state operators. Budget documents ➔ Each autumn, the government presents its Budget Act («projet de loi de finances Appendix II – (PLF)») for the upcoming year, which summa­ Cooperation policy rises in a single programming document all government resources and outlays and deter­ reference documents mines their nature, amount and assignment. It is examined by Parliament and approved within ➔ The Framework Document for Development 70 days of submission. Pursuant to the Cooperation is intended to provide an provisions of the Constitutional Bylaw on Budget overall medium- and long-term framework for Acts, the Budget Act is organised into policy cooperation policy. The policy is described missions that each comprise a set of operationally in documents that specify, within programmes. It is accompanied by annual this framework, guidelines of a budgetary, performance plans and cross-cutting policy geographic or sectoral nature. documents (DPTs). Three programmes in the «Official Development Assistance» mission account for most of the Strategies towards European budget appropriations primarily targeting coope­ and multilateral institutions ration policy, namely: ■ programme 110: economic and financial ➔ The multilateral window of French deve­ aid for development, under the MINEFI; lopment cooperation is based on a set of strategy documents that detail French strategy ■ programme 209: solidarity with developing towards multilateral institutions, including: countries, under the MAEE;

■ the strategy document for European deve- ■ programme 301: co-development and lopment policy; migration, under the Ministry of the Interior,

Development Cooperation: a French Vision 55 Ministry of Foreign and European Affairs - DGM Overseas France, Local Authorities and Partnership Framework Immigration. Documents (DCPs) With a view to the effectiveness of government action and accountability to citizens, to ➔ The document cadre de partenariat Parliament and to the beneficiaries of these (Partnership Framework Document) is the policies, the programmes in a mission are instrument for mapping on a multi-year basis subject to an annual performance analysis. France’s ODA to the 55 member countries of the The annual performance plans are brought Priority Solidarity Zone and has a 5-year together in a single fascicle for each mission timeframe. and present the quantitative objectives to be As a public document signed by both parties and met and an analysis of costs and operators for established on the basis of the partner country’s each programme. Annual performance reports development strategy (Poverty Reduction (RAPs) compare forecasts and execution not Strategy Paper or equivalent), the DCP ensu­ only in budgetary and full-cost terms but also res greater predictability and facilitates more with respect to the objectives, indicators and effective ownership by the partner country of targets contained in the annual performance cooperation actions. plan for that financial year. The DCP engages all public players active in A cross-cutting policy document (document French cooperation, in particular ministries and de politique transversale – DPT): «Politique other public institutions. It determines a limited française en faveur du développement» (France’s range of priorities selected from those sectors policy for development), presents an overall furthering the achievement of the MDGs, which vision of all the programmes that contribute to must cover 80% of total assistance allocated cooperation policy, the coherence of the whole, to the MDGs. This rationale of concentration the comprehensive strategy for performance is geared to improving the effectiveness and improvement and the budgetary resources visibility of France’s action by encouraging a required. The DPT identifies 23 programmes division of labour with other donors. Action reporting to 8 ministries that contribute in whole focused on MDGs is accompanied by cross- or in part to cooperation policy. cutting responses: governance, culture and All these documents are freely accessible to the Francophonie, higher education and scientific general public at: www.performance-publique. research, decentralised and non-governmental gouv.fr cooperation.

Countries that have signed a DCP Algeria Laos Benin Lebanon Burkina Faso Madagascar Burundi Mali Cambodia Mauritania Cameroon Mauritius Cape Verde Morocco Chad Mozambique Comoros Namibia Congo Brazzaville Niger Democratic Republic of the Congo Palestinian Authority Djibouti Senegal Ethiopia South Africa Gabon Tanzania Togo Guinea Tunisia Guinea Bissau Vanuatu Haiti Vietnam Yemen

Development Cooperation: a French Vision 56 Ministry of Foreign and European Affairs - DGM In this way France ensures that its interven­ The resources (55.5%) relating to this cross- tions are coordinated with those of its bilateral cutting policy are concentrated within the and multilateral partners, complying with the interministerial «Official Development Assis­ European Code of Conduct on Complementarity tan­ce» mission, which includes Programme and Division of Labour in Development Policy. 209 («Solidarity with developing countries») run by the MAEE, Programme 110 («Economic and financial aid for development») run by the MINEFI, and, since 2008, Programme 301 Appendix III – The («Co-development and migration») run by the Ministry of the Interior, Overseas France, budget for development Local Authorities and Immigration. If the seven cooperation policy other programmes and missions under their responsibility are included, the three CICID Budgetary breakdown Co-Secretaries together manage more than 80% of the appropriations to the cross-cutting policy. of the French effort in favour of development The rest of the cross-cutting policy is divided between the 10 programmes, whose resources ➔ The main budgetary expenditures involved are only in part earmarked for development in this effort are grouped under France’s actions. These programmes are mostly cross-cutting policy for development, which managed by the Ministry of Higher Education comprises 23 different budgetary programmes and Research. in 2011 (funding appropriations for this policy amount to €6 billion for 2011).

The ODA mission, cross-cutting policy, budgetary and extra-budgetary efforts for cooperation policy

Development Cooperation: a French Vision 57 Ministry of Foreign and European Affairs - DGM To complete the items covered in the cross- How the «ODA» mission relates cutting policy document come the budgetary expenditures «outside the cross-cutting to the DAC ODA indicator policy», which mainly relate to the Overseas ➔ The relationship between the State’s Communities and security issues, such as budgetary effort for development and training for police and gendarmerie personnel ODA as reported to the OECD-DAC is not in developing countries. 0.3% of the budget direct, since the DAC indicator includes extra- for Gendarmerie Nationale Programme 152 is budgetary items. counted as ODA. Four separate ensembles can be distinguished A set of public development-related expenditures which vary in proportion year on year and that are not integrated into the state budget for which indicative forecasts for 2011 are given can also be at least partly recorded as ODA. as recorded in the Budget Act. This is the case, for example, of contributions to the Community budget and local authorities’ ■ the ODA mission resources, directly allo­ budgetary expenditures for development. cated to cooperation policy (35% of total ODA projected for 2011); It should be pointed out that part of the cost to the taxpayer of development cooperation ■ other DPT programmes (28% of total ODA policy is not currently measured as it does not projected for 2011); translate into budget flows: customs exemptions ■ non-DPT public expenditure, notably 12% for goods from the Least Developed Countries, financing for the EU budget; tax deductibility for private giving to develop­ ment, the hidden cost of state guarantees, ■ items with no direct impact on the state etc. budget (loans, decentralised development

From the budget for Official Development Assistance: 2011 projections

Source: cross-cutting policy document «France’s policy for development», PLF 2011.

Development Cooperation: a French Vision 58 Ministry of Foreign and European Affairs - DGM cooperation, debt relief, airline ticket tax) ment and welfare of developing countries amounting to an estimated 24% of total as its main objective; ODA projected for 2011. ■ each transaction must be concessional in character, as defined by the DAC. The DAC List of Aid Recipients is reviewed every Appendix IV – three years and based on per capita Gross Official Development National Income data. Contributions to international institutions may Assistance in figures be reported fully or in part under ODA, depending on the nature of the institution. A standardised definition from the OECD Development Assistance Committee In 2009, France was world’s the second largest donor and ➔ The measurement of Official Develop­ment Assistance is defined by the OECD its ODA/GNI ratio was above Development Assistance Committee16 (DAC). the DAC country average The amounts eligible for inclusion in ODA must meet four criteria: ➔ In 2009, the net global ODA from the 23 DAC member countries reached USD ■ the beneficiaries must be countries or terri- 120 billion. With 10.4% of the total, that is USD tories considered as developing by the DAC 12.6 billion, France is the second largest donor or multilateral development institutions; after the United States and Europe’s largest donor, followed closely by Germany and the ■ the aid must be provided by official agen- . The G-7 countries provide 68% cies, including State and local governments, of ODA as calculated by the DAC. The 15 DAC or by their executing agencies; European Union countries account for 56% of ■ each transaction must be administered ODA. with the promotion of the economic develop­

Net ODA of DAC Member Countries in 2009

Source: OECD.

Development Cooperation: a French Vision 59 Ministry of Foreign and European Affairs - DGM ODA as a percentage of GNI for DAC countries in 2009

Source: OECD.

The largest contributions relatively (ODA as Global ODA and French a percentage of ) are ODA rise after low point from , , , and the , the only countries to in late 1990s have reached ODA contributions in excess of ➔ French ODA is on the rise, both as a 0.7% of their GNI in 2009. French ODA in 2009 percentage of GNI and in total volume, after was 0.47% of its GNI, within the DAC EU-country a low point around 2000. This increase is due average (0.44%) and well above the average partly to debt relief operations, particularly for all DAC members (0.32%) and a fortiori G-7 between 2003 and 2006, but also reflects a countries (0.28%).

Long-term trend of the cooperation effort, France, G-7 and all DAC countries

Source: OECD-DAC.

Development Cooperation: a French Vision 60 Ministry of Foreign and European Affairs - DGM Structure of France’s ODA 1989-2013 1989-2009 data, 2010-2013 estimates

Sources: OECD-DAC to 2009, PFL 2011 thereafter. scaling-up of multilateral and European aid (up The non-programmable fraction of French from 23% to 41% of the total over the period), bilateral aid in 2009 was 26% of its total net while bilateral ODA apart from debt relief has ODA if one includes debt relief (7%), the tended to fall. imputed cost of students (7%), research for development in the donor country (4%), food aid (0.4%), humanitarian aid (0.3%), aid to in the donor country (3%), adminis­ Appendix V – Structure trative costs (4%), aid granted by the donor country’s local authorities (0.8%) and support and destination of for NGOs (0.2%). France’s ODA Breakdown of France’s ODA Sectoral distribution of total net ODA ➔ The €9,048 million reported to the DAC as France’s net ODA in 2009 comprised: ➔ ODA granted to the five priority sectors decided by the CICID on 5 June 2009 ■ € 5,040 million in bilateral ODA, 56% of the (education, health, sustainable development, total; agriculture and food security, and growth) ■ € 2,083 million in European ODA (EDF and accounted in 2008 for 59% of bilateral ODA, EU), 23% of the total; 43% of European ODA and 65% of multilateral ODA, that is 56% of France’s total net ODA. ■ € 1,925 million in multilateral ODA (excl. EDF and EU), 21% of the total. The education sector accounted for 17% of France’s total net ODA, health 10%, agriculture European instruments are the largest benefi­ and food security 7%, sustainable development ciaries of French multilateral aid (23% of total 9% and support for growth 13%. net ODA), followed by international financial institutions (13%) and vertical funds (6%).

Development Cooperation: a French Vision 61 Ministry of Foreign and European Affairs - DGM Bilateral Europe Multilateral TOTAL Net ODA % of net Net ODA % of Net ODA % of multi- Net % of (€m) bilateral (€m) european (€m) laterale ODA total net ODA ODA ODA (€m) ODA TOTAL 4,483 1,753 1,330 7,566 Education 1,177 25% 95 5% 53 3% 1,326 17% of which basic 132 3% 37 2% 22 1% 191 2% education Health 96 2% 96 5% 529 35% 721 10% of which basic 48 1% 52 3% 147 10% 247 3% health Sustainable 523 11% 117 6% 75 5% 715 9% development Agriculture and food 359 8% 105 6% 68 4% 532 7% security Support for 481 10% 336 18% 145 10% 962 13% growth Other sectors 1,847 40% 1,004 54% 459 31% 3,310 41%

Geographic distribution of net This ranking, which includes a number of emerging countries (such as China) and only bilateral ODA five from the list of 14 priority poor countries ➔ Africa is the largest recipient of French (Senegal, Mali, Burkina Faso, Madagascar and ODA, with 58% of net bilateral aid in 2009, Guinea) is due to the relative cost of: all instruments combined, and more specifically ■ tuition fees (for China, Morocco, Tunisia and sub-Saharan Africa (47%). Algeria); The 14 priority poor countries received 12% of ■ loans (in particular for Indonesia, Lebanon, net bilateral ODA in 2009: the CICID objective Turkey, Vietnam and China); of devoting at least 50% of MDG grants to these countries was met, since the percentage stood ■ debt restructuring (for Côte d’Ivoire and at 76% in 2009. Congo). The first 20 recipients of net bilateral ODA between 2007 and 2009 received 48% of France’s total net bilateral ODA.

Main recipients of French net bilateral ODA, average 2007-2009 (€ m, declared to OECD/DAC) 1 Côte d’Ivoire 309 11 Tunisia 109 2 Iraq 260 12 Algeria 96 3 Cameroon 193 13 Mali 89 4 China 167 14 Burkina Faso 79 5 Morocco 148 15 Madagascar 78 6 Turkey 138 16 Egypt 78 7 Senegal 120 17 Guinea 50 8 Lebanon 120 18 Zones under Palestinian admin. 50 9 DR Congo 112 19 Indonesia 48 10 Vietnam 110 20 Brazil 48

Development Cooperation: a French Vision 62 Ministry of Foreign and European Affairs - DGM Appendix VI – Targeted distribution of French bilateral aid by differentiated partnership

Africa Mediterranean Emerging countries Countries in crisis countries (crisis and post-crisis management, excluding prevention SSAa 14 PPCsb Grants Target > 50% 10% Budgetary Target > 60% 20% at most: 10% effort a : Sub-Saharan Africa b : Priority Poor Countries

14 priority poor countries (defined by CICID In Cambodia, a conditional transfer program­ on 5 June 2009): Benin, Burkina Faso, Central me has helped nearly 19,000 children, of African Republic, Chad, Comoros, Democratic which 64% girls, to continue their education, Republic of Congo, Ghana, Guinea, Madagascar, accounting for 14% of girls enrolled in Mali, Mauritania, Niger, Senegal and Togo. This secondary school. list is subject to revision by joint decision of the In ten years the IDA has doubled its aid to supervisory ministers, at the proposal of the fragile and conflict-torn countries, from USD CICID Co-Secretariat. 772 million to USD 1.6 billion a year. In recent years it has contributed to the demobilisation and reintegration of 235,300 ex-combatants, to connecting more than 1.5 million people to Appendix VII – The World major transport networks, providing essential Bank’s International health care and drinking water to more than 6 million people and enrolling 2.4 million children Development in school. Association (IDA)

➔ The IDA is the most concessional arm of the World Bank Group. Appendix VIII – Global The public works programmes it has financed Fund to Fight AIDS, have employed more than 8 million people. At Tuberculosis and least 22 million people gained access to a water supply between 2000 and 2006. In the last Malaria (GFATM) 8 years, nearly 240,000 km of roads have been built. In Mali, the association brought electri­city ➔ The GFATM is a partnership between to 40,000 households, more than 1,000 schools, governments, civil society, the private an equivalent number of companies and more sector and the affected communities, the than 100 clinics. objective of which is to collect and allocate extra resources to prevent and treat the three worst In Bangladesh, 850,000 girls received study pandemics on the planet. grants for the 2008/2009 school year, and 500,000 of the poorest students received a grant Since it was created in 2002, at the initiative of to enable them to return to school. the G-8, it has become a major player in the fight

Development Cooperation: a French Vision 63 Ministry of Foreign and European Affairs - DGM against the three diseases, approving more term objectives and strategy, to be applicable to than USD 19 billion for 572 programmes in all French official assistance players and, second, 144 countries: it provides 17% of the funding to concentrate its aid on a more limited number for HIV/AIDS programmes (UNAIDS, 2010) of countries, particularly LDCs and fragile states. and has become the biggest donor in the fight To this end, the RGPP exercise undertook to against tuberculosis (63% of funding) and concentrate France’s resources geographically malaria (57% of programmes) (Global Fund, by adopting a partnership rationale grounded 2010). In 2010, more than 4 million people are on mutual interest. These recommendations led on antiretroviral treatment (2.5 million as a result to the adoption at the CICID meeting on 5 June of the Global Fund), 105 million counselling 2009 of a country-typology specifying a group sessions and HIV tests have been organised of poor countries having priority in the allocation and 4.5 million orphans have had access to of the most concessional aid resources, and medical services, education and community to the recognition of crisis situations as an care. important component of French cooperation. In this cooperation policy framework document, By 1 January 2010, the Global Fund had four geographic partnerships differentiated by enabled the treatment of 108 million cases of the nature and conditions of intervention are malaria, the distribution of 104 million mosquito defined in line with these decisions. nets, and the treatment of 6 million new cases of infectious tuberculosis. The GFATM’s activity In terms of resources, the evaluations point is estimated to have saved some 5 million lives out that, by providing a three-year budget since 2002. perspective, the Constitutional Bylaw on Budget Acts (LOLF) enhances the predictability of For more details: http://www.theglobalfund.org budget resources earmarked for development cooperation, while emphasising that these resources continue to limit the capacity of French cooperation policy to fulfil all of its Appendix IX – Summary ambitious bilateral, European and multilateral commitments. The evaluations note the novel of recent evaluations of capacity for financial engineering that France French cooperation has developed in order to make the best use of its budget resources, whilst emphasising ➔ This document has been produced on the that the development of its lending activity, in basis of the recommendations of various particular, influences the geographies and the evaluations of French cooperation policy, in focal sectors targeted by French cooperation. particular the OECD-DAC peer review in 2008, Not least, they welcome generally France’s the General Review of Public Policies (RGPP) involvement in promoting innovative sources and the report of the Council for Economic of development financing, but at the same time Analysis (CAE): La France et l’aide publique au emphasise that these sources cannot substitute développement, December 2006. for budgetary commitments and should not exempt France from such commitments. Recognising the richness of French develop­ ment cooperation policy objectives, these evaluations pointed out the lack of a document giving unity to the policy. According to the evaluations, this means that the policy is Appendix X – lacking in clarity, particularly with respect to Bibliography and the objectives pursued, geographic priorities, intervention modalities and the link between Internet resources the bilateral, European and multilateral aid channels. OCDE Echoing the two main critiques of the CAE report, (www..org) the OECD-DAC peer review invited France in 2008 first to draw up a cooperation policy France – Development Assistance Committee framework document that specifies its medium- (DAC) – Peer Review, 2008.

Development Cooperation: a French Vision 64 Ministry of Foreign and European Affairs - DGM National Assembly General Review of Public Policy (www.assemblee-nationale.fr) (www.rgpp.modernisation.gouv.fr) L’aide publique au développement française : RGPP : troisième rapport d’étape, February analyse des contributions multilatérales, 2010. réflexions et propositions pour une plus grande efficacité, Henriette Martinez, Member of Council for Economic Analysis Parliament. Report submitted to the Prime (www.cae.gouv.fr) Minister, François Fillon, and the Minister of State for Cooperation and the Francophonie, La France et l’aide publique au développement, Alain Joyandet, 31 July 2009. Daniel Cohen, Sylviane Guillaumont Jeanneney and Pierre Jacquet. Report No.62 of the Council for Economic Analysis, 2006. (www.senat.fr) Commission on the Measurement Pour une mondialisation maîtrisée : contribution of Economic Performance and Social au projet de document cadre de coopération au Progress développement, Senators and André Vantomme, Senate Foreign Affairs www.stiglitz-sen-fitoussi.fr/fr/index.htm and Defence Commission. Information Paper Report of the Commission (J.E. Stiglitz, A. Sen, No. 566 – 17 June 2010. J. Fitoussi) submitted 14 September 2009.

Ministry of Foreign and European Affairs Agence française de développement (www.diplomatie.gouv.fr) (www.afd.fr) Livre blanc sur la politique étrangère et euro­ Annual report 2009. péenne de la France. conclusion to the work of the White Paper Commission (co-chairs: Alain National Commission for Decentralised Juppé and Louis Schweitzer). Paper submitted Cooperation to the Minister of Foreign and European Affairs, (www.cncd.diplomatie.gouv.fr/frontoffice) Bernard Kouchner, 11 July 2008. The CNCD site also contains an online atlas of Mémorandum de la France sur ses politiques decentralised cooperation. et programmes en matière d’aide publique au développement, 2008. (also available at www. Coordination Sud economie.gouv.fr) (www.coordinationsud.org/APD) Ministry of the Economy, Finance and The Coordination Sud site brings together the Industry analyses and proposals of French international (www.tresor.bercy.gouv.fr) solidarity organisations concerning French and European development assistance policy and Évaluation des dotations de la France au Fonds the effectiveness of their own actions. africain de développement et à la Banque africaine de développement, Directorate General of the Treasury, September 2010. Efficacité de l’interaction des organisations multilatérales dans les pays africains, Directorate General of the Treasury, March 2010. Fact sheets on Official Development Assistance (www.economie.gouv.fr/themes/europe_ international/aide_dev/index.htm and www. tresor.bercy.gouv.fr/directions_services/dgtpe/ aide_developpement.htm)

Development Cooperation: a French Vision 65 Ministry of Foreign and European Affairs - DGM Acronyms and abbreviations

AFD Agence française de développement (French Development Agency) AIRD Agence interétablissement de recherche pour le développement (Inter-Establishment Agency for Research for Development) AMC Advanced Market Commitments APD Aide publique au développement see ODA AfDB African Development Bank AsDB Asian Development Bank CASDB Central African States Development Bank CFA Communauté financière africaine (African Economic Community) Comité interministériel de la coopération internationale et du développement CICID (Interministerial Committee for International Cooperation and Development) CIRAD Centre de coopération internationale en recherche agronomique pour le développement (Centre for International Cooperation in Agronomic Research for Development) COS Comité d’orientation stratégique (Strategic Steering Committee) COSP Conférence d’orientation stratégique et de programmation (Strategic Guidance and Programming Conference) CRVOI Centre de recherche et de veille sur les maladies émergentes dans l’océan Indien (Regional Centre for Indian Ocean Health Surveillance and Research) DAC Development Assistance Committee DCP Document cadre de partenariat (Partnership Framework Document) DG Direction générale (Directorate General) DPT Document de politique transversale (cross-cutting policy document) ECCAS Economic Community of Central African States EDF European Development Fund EIB European Investment Bank EU European Union FASEP Fonds d’étude et d’aide au secteur privé (Private Sector Research and Assistance Fund) FCI France Coopération Internationale (development agency mandated by the MAEE) FFEM Fonds français pour l’environnement mondial (French Global Environment Facility) FISEM Facilité d’investissement de soutien économique à la Méditerranée (Investment Facility to Support the Economic Development of the Mediterranean) GAVI Global Alliance for Vaccines and Immunisation GDP Gross Domestic Product GFATM Global Fund to Fight AIDS, Tuberculosis and Malaria GNI Gross National Income GPG Global Public Good HIPCs Heavily Indebted Poor Countries ICESCR International Covenant on Economic, Social and Cultural Rights

Development Cooperation: a French Vision 66 Ministry of Foreign and European Affairs - DGM IDA International Development Association IFFIm International Finance Facility for Immunisation IFI International Finance Institution IMF International Monetary Fund IPCC Intergovernmental Panel on Climate Change IRD Institut de recherche pour le développement (Research Institute for Development) JICA Japan International Cooperation Agency KfW Kreditanstalt für Wiederaufbau (German development bank) LDCs Least Developed Countries LOLF Loi organique relative aux lois de finances (Constitutional Bylaw on BudgetActs) MAEE Ministère des affaires étrangères et européennes (Ministry of Foreign and European Affairs) MDB Multilateral Development Bank MDGs Millennium Development Goals MEDDTL Ministère de l’Écologie, du Développement durable, des Transports et du Logement (Ministry of Ecology, Sustainable Development, Transport and Housing) MESR Ministère de l’Enseignement supérieur et de la Recherche (Ministry of Higher Education and Research) MINEFI Ministère de l’Économie, des Finances et de l’Industrie (Mininstry of the Economy, Finance and Industry) NATO North Atlantic Treaty Alliance NIF Neighbourhood Investment Facility NGO Non-governmental organisation ODA Official Development Assistance OECD Organisation for Economic Cooperation and Development OHADA Organisation pour l'harmonisation en Afrique du droit des affaires (Organisation for the Harmonisation of Business Law in Africa) OIF Organisation internationale de la Francophonie (International Organisation of La Francophonie) PCST Promotion de la culture scientifique et technique (promotion of scientific and technical culture) PFVT Partenariat français pour la ville et les territoires (French Alliance for Cities and Territorial Development) PRCC Programme de renforcement des capacités commerciales (Trade Capacity Building Programme) RAP Rapport annuel de performances (annual performance report) RGPP Révision générale des politiques publiques (General Review of Public Policies) RPE Réserve pays émergent (Emerging Countries Reserve) SAIDS Service des affaires internationales et du développement solidaire (International Affairs and Cooperative Development Department) SGBS Société générale de banques au Sénégal (Senegalese subsidiary of Société générale) SMEs Small and Medium-sized enterprises UN United Nations UNDP United Nations Development Program UNESCO United Nations Educational, Scientific and Cultural Organisation UNICEF United Nations International Children's Emergency Fund WADB West African Development Bank WAEMU West African Economic and Monetary Union WHO World Health Organisation WTO World Trade Organisation

Development Cooperation: a French Vision 67 Ministry of Foreign and European Affairs - DGM Notes

1. See Appendix VI on the distribution of 11. Idem. grants and budgetary effort by differentiated Report to the President of the Republic partnership. 12. of the Commission on the Measurement 2. World Prospects: The 2009 of Economic Performance and Social Revision (United Nations, Department of Progress («Commission Stiglitz/Sen/ Economic and Social Affairs, Population Fitoussi»), 2009. Division). 13. CICID list, 5 June 2009: Benin, Burkina 3. US - Energy Information Administration. Faso, Central African Republic, Chad, Comoros, Democratic Republic of the World Bank, Data 2008. Estimated wealth 4. Congo, Ghana, Guinea, Madagascar, Mali, production by GDP (purchasing power Mauritania, Niger, Senegal and Togo. This parity). list is subject to revision. Intergovernmental Panel on Climate 5. The competencies of the Ministry of Change (IPCC). 14. Immigration, Integration, National Identity 6. The main sectoral documents are listed in and Cooperative Development were the appendices. transferred to the Ministry of the Interior, Overseas France, Territorial Communities 7. OECD, DAC statistical database, 2008 and Immigration pursuant to the decree of data. 25 November 2010 (Decree No. 2010-1444 8. The concept of co-development underpins of 25 November 2010 on the powers of the the agreements between Member States Ministry of the Interior, Overseas France, and the countries of origin and transit Territorial Communities and Immigration). countries of migration. These agreements See the definition of ODA by OECD-DAC in promote inclusive development actions 15. Appendix IV. that notably enable migrants to take part in the development of their home countries. 16. DAC members since its creation in 1961: In France this approach is managed in , , European Commission, the framework for concluding bilateral France, Germany, , Japan, Netherlands, agreements on the concerted management United Kingdom, United States; : of migration and cooperative development. member since 1961 (except 1974-1990); Norway; 1962; Denmark, 1963; 9. The architecture of France’s development and Sweden, 1965; , 1966; cooperation system, its operators and , 1968; , 1973; instruments are described in a specific , 1975; Ireland, 1985; , 1991; appendix. Luxembourg, 1992; , 1999; South 10. See appendix II for list of strategies. Korea, 2010.

Development Cooperation: a French Vision 68 Ministry of Foreign and European Affairs - DGM This document outlines France’s development cooperation strategy. It offers a medium- term vision of the challenges, priorities and means of action of French Development Cooperation. It aims to provide a clearer view of French development cooperation both for French citizens, who themselves contribute to this cooperation via the budget voted by Parliament, and for France’s international partners, with whom this policy will be conducted. The elaboration of this Framework Document was piloted by the Directorate-General of Global Affairs, Development and Partnerships (DGM) of the Ministry of Foreign and European Affairs (MAEE) and supervised by a steering committee that brought together, in addition to the MAEE, the Ministry of the Economy, Finance and Industry (MINEFI), the Ministry of the Interior, Overseas France, Local Authorities and Immigration, and the French Development Agency (AFD). The document greatly benefited from the input of an advisory panel comprising civil society representatives (corporate sector, NGOs, social partners), the key French public operators concerned, decentralised cooperation players, as well as researchers and qualified individuals. Parliament was also involved in this work, and the committees concerned actively contributed to its preparation (round tables, hearings of representatives from ministerial departments and ministerial hearings, background reports).

Directorate-General of Global Affairs, Development and Partnerships of the French Ministry of Foreign and European Affairs

The missions of the French Ministry of Foreign and European Affairs are: • summarize information on the changing global economy and put it into perspective, prepare decisions on the French government’s foreign policy, • draft France’s foreign policy; • coordinate France’s international relations; • protect French interests abroad and assist French nationals outside France. The creation of the Directorate-General of Global Affairs, Development and Partnerships (DGM) in April 2009, as part of the reform of the Ministry, enables diplomacy to anticipate, identify and respond to the challenges of globalisation more effectively. Confronted with global issues that have a direct impact on the lives of our citizens and multiple actors, the Ministry intends to emphasise the need to tackle global issues, in the firm belief that every major economic, cultural and societal issue calls for collective action with more outward focus, anticipation, interministerial coordination, responsiveness, interdisciplinarity and a resolutely European approach. Brochure printed on ecologically responsible paper.

Directorate for Communication and the Spokesperson’s Office www.diplomatie.gouv.fr