The role of the EU in international cooperation
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1 The role of the EU in international cooperation Hanne Knaepen European Centre for Development Policy Management (ECDPM) Brussels CTB
2 Structure 1. What is ECDPM? 1. EU: development cooperation and foreign policy 2. The future of EU development cooperation - Beyond Aid? Challenges for ECDPM Page 2
3 1. What is ECDPM? Independent think and do tank, working on the EU s relations with Africa, the Carribean and the Pacific (ACP countries); founded in 1986 by Dutch Government What do we do? Practical analysis for ACP and European policy makers Non-partisan facilitation and dialogue Knowledge broker for parties who have an interest and who have expertise in the region Independent advice for institutions such as the EU, the African Union (AU) and the ACP group Financed by 10 EU Member States ECDPM Page 3
4 2. EU: development cooperation and foreign policy ECDPM Page 4
5 2. EU: development cooperation and foreign policy 2.1 Historical background Since 1957, solidarity with (ex-)colonies and overseas territories: birth of the European Development Fund (EDF) Initially: only EU-6 and their (ex-)colonies Later: Group of African, Caribbean and Pacific countries (ACP). Cooperation treaties EU-ACP since 1963 (Yaoundé Lomé Cotonou) EU expansion focus broadens: incl. Asia, Latin- America, Neighbourhood, ECDPM Page 5
6 2.2 EU and the ACP-countries ECDPM Page 6
7 2.3 ODA budget EU and EU Member States: more than 50% of global ODA 2011: 52.8 billion (support of the EU + national budgets of all EU countries together) 2012: 50.6 billion 2013: 56.2 billion 2014: 58.2 billion 2014: 0.42% of EU GDP, still far under the 0.7% target for 2015
8 2.4 ODA budget Total EU budget: 960 billion EUR EU budget decreased with 3.5% compared to period Heading IV Global Europe = 6% of budget (comparable to % )
9 2.5 Difference ODA/GDP among EU Member States Channeled through EU institutions: 9.1 billion in 2011 (17% of total EU ODA)
10 2.6 Which forms of EU development financing? Mainly a mix of: Bilateral equivalent Programme financing (Budget Support) Project financing (thematic or geographic) Multilateral organisations (UN, World Bank, etc.) Humanitarian aid Page 10
11 2.7 Who does what in the EU? (cont.) EU development cooperation is an integral part of EU foreign policy Trade: EU competence 1 vote! Development coop.: Shared competence member states
12 2.8 ODA in 3 African countries (OECD project) ECDPM Page 12
13 2.8 ODA in 3 African countries (cont.) ECDPM Page 13
14 2.8 ODA in 3 African countries (cont.) ECDPM Page 14
15 2.9 Why is the EU engaged in development cooperation? Key foreign policy objectives Political and economic targets Geostrategic interests Natural resources and energy Interrelated global issues, e.g. climate change, migration, terrorism Trade EPAs Africa: 30% of EU export 1/5 import and export of EU with developing countries Historical ties Ex-colonies Bilateral partnerships EU foreign policy and dev. coop. EU as a norm entrepreneur Fundamental normative basis in EU treaties Human rights (e.g. LGBTI) Democracy ECDPM Page 15
16 2.9 Why is the EU engaged in development cooperation? (cont.) Different interests Ethiopia: Donor-darling despite human rights and humanitarian crisis Growing country; regional economic power Military ally in one of Africa s most instable regions Borders with Sudan, South Sudan, Somalia and Eritrea Main seat of African Union (AU) Page 16
17 2.9 Why is the EU engaged in development cooperation? (cont.) Different interests Zimbabwe: sanctions since 2002 (2 years after Cotonou) Only after 10 years put into question ECDPM Page 17
18 3. The future of EU development cooperation - Beyond Aid? Challenges for ECDPM Page 18
19 Challenge #1 A new international context ECDPM Page 19
20 3. The future of EU development cooperation - Beyond Aid? 3.1 A changing international context Financial crisis New key players (BRICS, MINT, etc.) Global agendas (climate, migration, energy, terrorism) Page 20
21 3.1 A changing international context (cont.) Decreasing relevance of Official Development Assistance (ODA) ECDPM Page 21
22 3.1 A changing international context (cont.) 2015: tipping point?? SDGs: currently globally 1.4 trillion USD globally goes to sustainable development. By 2030: need 1.6 until 2.8 trillion USD extra!! ODA globally: billion USD + OECD expects decrease South-South cooperation (VN: tot 19 billion USD) and new players (United Arab Emirates: 1.25% ODA) Private investments (2013: billion USD) + national budgets of developing countries What is needed for success?? More central role of BRICs End of illicit financial flows (Addis Conference, July 2015) ECDPM Page 22
23 3.2 EU gradually modernizing Treaty of Lisbon 2009 First real steps towards an EU foreign policy Strengthening EU profile and visibility in the world: New representatives, new actors, real embassies EU values written down in EU treaty ECDPM Page 23
24 3.2 EU gradually modernizing (cont.) With the Agenda for Change (2011): the EU subscribes to current global trends and realities in development and a vision beyond aid, aimed at increasing effectiveness of EU development assistance : Value for money: differentiation, non-oda leverage Efficiency through better cooperation: 3 Cs (Coordination, Complementarity, Coherence), Division of Labour Preservation of value-driven approach: conditionality, focus on social integration, human development and sustainable growth ECDPM Page 24
25 Challenge #2 Climate change ECDPM Page 25
26 3.3 The climate change challenge ECDPM Page 26
27 3.3 The climate change challenge (cont.) Post-2015 debate: climate action and financing will take a central position from 2014 onwards: 100 billion USD per year until 2020 ECDPM Page 27
28 3.3 The climate change challenge (cont.) December 2015, COP21: the Paris Agreement was signed by almost 200 countries in Paris ECDPM Page 28
29 3.4 Short history of EU climate policy 1997 Treaty of Amsterdam: sustainable development & integration of environment 2005 Emissions Trading System (ETS) Copenhagen 2009 Conference: the end of success
30 3.5 The EU fails in Copenhagen
31 3.6 New opportunities after Lisbon to make the EU more democratic, more efficient and better able to address global problems, such as climate change, with one voice Goal Lisbon Treaty, 2009 Changes after the Lisbon Treaty: The European Commission receives the legal mandate to represent the EU in international climate debates Main targets of the EU foreign policy: tackling climate change and sustainable development EEAS: foreign climate policy + leader of EU Green Diplomacy Network (2012) 2010: creation of DG Climate Action
32 3.6 New opportunities after Lisbon (cont.) During the subsequent climate conferences, the EU played a stronger role: COP16: bridge builder COP18: EU ambitious but gets a lot of opposition COP17: EU-Africa alliance COP19: EU smaller role
33 3.7 The EU as a climate leader? EU climate diplomacy during COP21: Building bridges: special alliance with ACP countries ECDPM Page 33
34 3.7 The EU as a climate leader? (cont.) BUT many challenges to implement the Paris Agreement ECDPM Page 34
35 3.8 Implementing the Paris Agreement Lots of unanswered questions How to make an agreement legally-binding without a compliance enforcement mechanism? Is the 1.5 degrees target not too unrealistic? How to live in a world with zero emissions by 2050? Trade interests may trump the Paris Agreement? ECDPM Page 35
36 3.8 Implementing the Paris Agreement (cont.) How do you define climate financing and what is fair? Since 2003 only ¼ of climate financing went to Sub-Saharan Africa What is the role of the emerging economies? What is the role of the private sector? ECDPM Page 36
37 3.9 Climate change: EU position and budget Position EU: According to the EU, developing countries should also use their own financial sources EU member states have different definitions of climate financing EU climate financing: : 8% of all projects/programmes in developing countries were climate projects : 7.2 billion euro to fast-start finance : 20% of the entire EU budget to climate (=180 billion euro) ECDPM Page 37
38 3.10 What s next after COP21? Success during COP21 is partly thanks to the EU. What s next? 2030 energy and climate package Cooperation of EU institutions and member states Climate financing Success?
39 Challenge #3 EU-ACP relations ECDPM Page 39
40 3.11 New EU-Africa partnership In practice: start of a new vision on EU-Africa partnership visible (since 2007) 1. Peace and security; 2. Democracy, good governance and human rights; 3. Human development; 4. Sustainable and inclusive development and growth and continental integration; 5. Global and emerging issues. ECDPM Page 40
41 3.12 What with the ACP? ECDPM Page 41
42 3.12 What with the ACP? (cont.) Relevance of the group in international fora? Differentiation Nigeria vs Madagascar vs Small Island States (Vanuatu, Comoren, etc.) Not everyone needs the ACP the same way What holds the group together? New roles for the ACP? Climate? Global Governance? What with the acquis of EU-ACP en Cotonou Co-management!! Human rights and democratisation (Art. 8 en 96) EDF Budgetisation? ECDPM Page 42
43 3.12 What with the ACP? (cont.) Political-institutionally hornet s nest! EEAS-EC EU core countries EU 28 ACP African Union ECDPM 2015: Political economy analysis of ACP ECDPM Page 43
44 3.13 Political and practical challenges Dealing with the hard questions: What is the added value of EU dev. coop.? How much power and financing should be conveyed to the EU? How to make sure other policies (e.g. trade) are coherent with development cooperation? How and when to cooperate with the private sector? ECDPM Page 44
45 Thank you! Page 45
46 Extra info (EU institutions) ECDPM Page 46
47 Who does what in the EU? European Council (the government ) Sets broad strategic guidances and priorities, amends and votes legislative and budgetary reforms European Parliament ( judicial body ) Democratic scrutiny, amends and votes legislative and budgetary proposals European Commission (the bureaucracy and executing body or the ministries ) Initiates policy reforms, develops, monitors and implements policy across 33 Directorates General (DGs) ECDPM Page 47
48 Who does what in the EU? (cont.) European Commission European Parliament Council: -European Council Council of Ministers EU Delegations EEAS 28 Member States
49 Who does what in the EU? (cont.) Commission Juncker President of Eur. Council: Donald Tusk (PL) HRFSP: Federica Mogherini (IT) Trade: Cecilia Malmström (SWE) Development: Neven Mimica (HR) Neighbourhood and European expansion: Johannes Hahn (AT) Humanitarian Affairs: Christos Stylianides (GR) ECDPM Page 49
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