EC Development Cooperation General Overview

Bernard San Emeterio Cordero , DG DEVCO, Unit 02 Belgian Trade Agency Seminar on public procurement opportunities 1 April 2015 European Year for Development

2015 Table of Contents

• I – Why development cooperation policy?

• II – Who are we?

• III – How do we deliver aid?

• V – Current and future challenges

• VI – Stay in touch

3 Why a development cooperation policy?

4 Public opinion

85% 69% 67% think it is important to agree that tackling believe that help people in poverty in development aid developing countries developing countries should increase also has a positive influence on EU citizens

Source: Eurobarometer January 2015 - THE EUROPEAN YEAR FOR DEVELOPMENT – CITIZENS’ VIEWS ON DEVELOPMENT, COOPERATION AND AID REPORT A win-win solution

Aid stimulates inclusive growth in developing countries and boosts trade with Europe

Issues that affect us all can be tackled in advance and save money

The EU has an added value: acting as one makes financial sense and can save money

EU contribution to the MDGs (1-4) Who are we?

8 The Lisbon Treaty - Art. 208

• Eradicate poverty • "Union development cooperation policy shall have as its primary objective the reduction and, in the long term, the eradication of poverty."

• Achieve policy coherence "The Union shall take account of the objectives of development cooperation in the policies that it implements which are likely to affect developing countries." 9

EU the largest donor in the world

• 28 Member States and the Commission together responsible for more than 52.8% of all development aid

• The European Institutions are the third largest donors of development aid

USA 23,4 Other 52,8 Donors 23,8 EU + MS

10 The EC and the external aid budget 2013

External aid: 14,862 M€ (9.7%)

DEVCO External action: 5,793 M€ (39%)

EDF: 4,784 M€ (32%) Outside DEVCO External action: 4,284 M€ (29%)

Commission budget inside EU: 137,639 M€ (90.3%)

EDF included in total budget. Outside DEVCO external action budget”: IPA, PI, IcSP short term, CFSP, MFA, Humanitarian assistance… The external action Commissioners

Federica Mogherini High Representative International / Vice President EC Cooperation and Development

Johannes Hahn Christos Stylianides Cecilia Malmström Neighbourhood and Humanitarian aid Trade Enlargement and crisis Negotiations management 12 DG DEVCO - Tasks

 Responsible for defining development policy in an international cooperation context  Responsible for implementing external aid programmes cross the world  Responsible for translating policies into practical aid actions and for developing new ways of aid delivery  Responsible for the steps of aid delivery: programming (together with EEAS), identification, feasibility, financial decisions and controls, tendering, contracting, monitoring and evaluation

1313 DG DEVCO - Organisation • Head Quarters • - EU Development Policy and International Cooperation Directorate (A) • - 2 Thematic Directorates (B and C) • - 4 Geographic Directorates (D, E, G and H) • - Directorate Resources (R) • - 8 horizontal Units, TF OCTs, and Outreach in development principal adviser

• EU Delegations 14 How do we deliver aid? MFF - Adoption of the new External Financing Instruments (2014-2020)

• New External Financing Instruments (ENI, IPA, DCI, EIDHR, IcSP, PI, CIR) in place since March 2014 • 16.1% lower than proposed initially by the Commission in 2011 • EFIs under the Budget represents 6.1% of total MFF (9% if EDF is included) • New global funding (2014-2020) merely remains at the level of the former MFF (2007-2013) 16 Heading IV Instruments

Instrument for Democracy & Human Rights

Instrument contributing for Stability and Peace

Instrument for Nuclear Safety

EDF Greenland Development European Pre-Accession Partnership Instrument Cooperation Neighbourhood Instrument Instrument (outside budget) Instrument Instrument

DCI Thematic Program Global Public Goods

DCI Thematic Program Civil Society Organisations & Local Authorities

DCI Pan-African Program

Common Implementing Regulation

Other instruments HUMA, CFSP, MACRO, EVHAC, CPFI, GUARANTEE FUND, AGENCIES, MARGIN 17 Envelopes in current prices 2014-2020

Pre-accession Instrument 11,699 M€ European Neighbourhood Instrument 15,433 M€ Development Cooperation Instrument 19,662 M€ Partnership Instrument (ex ICI and ICI+) 955 M€ Instrument contributing to Stability and Peace (ex-IfS) 2,339 M€ CFSP 2,339 M€ European Instrument for Democracy & Human Rights 1,333 M€ Instrument for Nuclear Safety Cooperation 225 M€ Humanitarian Aid 6,622 M€ Others (MFA, Guarantee Fund, Civil protection, etc...) 3,372 M€ Margin 2,285 M€ Outside budget: 11th European Development Fund 30,506 M€ 18 Geographical coverage

Eastern Europe

Asia

Mediterranean Caribbean

Latin America

Africa

Asia

Latin America Pacific

European Neighbourhood and Partnership Instruments (ENPI) South Africa Development Cooperation Instrument (DCI)

European Development Fund (EDF) Geographical distribution of funds in 2013* (commitments in M€) Latin America and 739 M€ Caribean Asia, Central Asia, Middle East, Gulf and 1000 M€ Pacific 3642 M€ Neighbourhood

Sub-Saharan Africa 3632 M€

* Excluding Horizontal programmes, BA lines, Evaluation, ECHO and DEVCO R Support Expenditure 20 Horizontal Programmes in 2013* (commitments in M€)

Democracy and Human Rights: 141

Stability Instrument: 189

Nuclear Safety: 52 Thematic Programmes: 869 Food Facility: 5

* Excluding Geographical programmes, BA Lines, Evaluation, ECHO and DEVCO R Support Expenditure 21 Initial allocations per sector % 2014-2020 All DEVCO Programmes

Infrastructure 6% Health Civil Society 5% Nutrition 7% Growth, Jobs and 7% Private Sector Engagement Education 3% Trade, Markets and 7% Regional Integration 3% Energy Erasmus+ 2% 8% Migration 1% Natural resources / Social protection environment Governance & Human 1% 10% Rights 26% Sustainable Agriculture and Food Security 14%

22 Top recipient countries in 2013 (commitments in €Mio) Country Commitments in €Mio Turkey 900,73 Mali 463,53 Syria 437,64 enlargement Morocco 339,90 development Afghanistan 316,86 neighbourhood Ethiopia 285,34 Palestine 268,69 Kosovo 220,04 Niger 215,30 Ukraine 206,50 23 The project cycle

Programming *

Evaluation Identification Multiannual and Annual Action Programmes require: i. EU MS approval ii. Council/EP scrutiny (Budget only) iii. Commission College decision

Implementation Formulation

Financing

24 * Strategic documents: Multiannual Indicative Programmes Reference documents for programming 1) Alignment based on National Development Plan

2) Joint Programming

3) If none of the above, Country/Regional Strategy

4) Multi-annual Indicative Programme

25 Multi-annual indicative programme (MIP/NIP)

Identification Fiche => Quality Support Group (QSG)

Action Fiche/Annual Action Programme => QSG

MS Committee for agreement

Financing Agreement => implementation=>evaluation

26 Aid delivery methods

Budget support Money transfer to the national treasury of a partner country in support of a national development policy. Use of country procedures. - Good governance & development contracts - Sector reform contracts - State building contracts

Projects - Clearly specified objectives - Defined time period and - Specific and defined budget

Common Implementing Regulation (except EDF) All implementation provisions - i.e. annual programmes, reporting, evaluation, review, etc. – moved into a single common Regulation to avoid discrepancies between instruments, as in the past.

New harmonised procedures common to 4 geographic instruments (DCI, ENI, IPA, and PI) and 3 thematic instruments (IcSP, EIDHR, INSC)

Provisions on implementation significantly simplified (consistency with the review of the Financial Regulation)

Use of innovative financial tools (e.g. blending)

Specific situation of IPA and ENI where the special characteristics of pre-accession and cross-border cooperation will require additional implementing rules and procedures 28

Current and future challenges

Priority 8: A stronger global actor

• Increased combination of national and European tools • Trade policy, development aid, participation in international financial institutions and neighbourhood policy combined • Stronger Europe in security and defense matters • Commissioners Group on External Action • Commissioner for International Cooperation and Development 30

Priorities 2015 - 1

• Development policy

• Post-2015 development framework and Sustainable development goals • Post Cotonou Agreement • Implementing Agenda for Change • Performance based mechanism • Flexible programming – Joint programming • Increase coherence with other services

31 Priorities 2015 - 2

• Operational and implementation

• Leverage efforts: blending, EU Trust Funds reformed budget support policy and domestic revenue mobilisation • EU results framework • European Year for Development

• Geographic and thematic challenges

• Africa • Crisis and fragile states • Gender equality and women empowerment • Migration

32

Commission work programme

• A Global Partnership for poverty eradication and sustainable development after 2015 • Towards better gender equality and women’s empowerment – A new EU gender Action Plan for development cooperation • Green paper: Preparing for a new framework of the EU-ACP relations beyond 2020 • Others: • A European Agenda on Migration • Strategic Framework for the Energy Union

33

Keep in touch

Useful Links

• http://ec.europa.eu/europeaid EuropeAid

• http://www.eeas.europa.eu EEAS

• http://www.dev-practitioners.eu Public Network

• http://www.concordeurope.org Confederation NGOs

• http://www.odi.org.uk Think Tanks • http://die-gdi.de

• http://www.ideas4development.org Blog •

35 EuropeAid Basic Literature

• Annual Report 2014 • http://ec.europa.eu/europeaid/multimedia/publicatio ns/publications/annual-reports/2014_en.htm_en

• MDGs • http://ec.europa.eu/europeaid/what/millenium- development-goals/index_en.htm

• Agenda for Change http://ec.europa.eu/europeaid/news/agenda_for_cha nge_en.htm

• Decision EYD 2015 • http://ec.europa.eu/europeaid/news/documents/eyd 2015-swd_en.pdf 36

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On the Web ec.europa.eu/europeaid/

index_en.htm 37 EYD2015 website

EuropeAid website: http://ec.europa.eu/europeaid/index_en.htm