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EuropeAid: How EU aid tackles poverty Philippe LoopEuropeAid Cooperation OfficeBrussels, 4th December 2010

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1Why development aid?

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Why development aid?

• 1.4 billion people still live in extreme poverty

• In Africa, a child dies from malaria every 45 seconds

• Globally, nearly a billion people don’t have access to safe drinking water

•½ million mothers die each year in pregnancy or within 7 weeks of giving birth

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Impact of EC development actions

Thanks to EU funds…

…more than 9 million pupils have been enrolled in primary

education since 2004

…more than 31 million people being connected to drinking

water and 9 million to sanitation facilities since 2004

…around 85,000 female students have enrolled in secondary

education, in 10 countries of Sub- Saharan Africa during the past

five years

…over 7200 km of roads, have been built and of more

than 29,000 km of roads have been maintained

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2000 Millennium Development Goals

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10

20

30

40

50

60

70

80

90

100

% o

f g

oa

l GLOBAL PROGRESS ON MDGs

Source: World Bank Global Monitoring Report 2009

Achieved by 2007Needed to be achieved by 2007 to be on track

MDG 1.cHunger

MDG 2Primary

education

MDG 3Genderparity

MDG 4Child

mortality

MDG 5.aMaternalmortality

MDG 7.cMDG 7.c

safe water

MDG 7.cAccess tosanitation

MDG 1.aExtremepoverty

2015 targets

Variation in progress by 2007

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2European Aid in facts & figures

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The EC development aid context – Where do we work?

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Improving lives world-wide

• The EU is committed to eradicating poverty and promoting freedom and security

• The EU's external policy aims to promote the core European values of peace, stability, democracy and prosperity

•We work in partnership to ensure our actions have a real, positive and lasting impact on people's lives

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European Union = biggest donor in the world

The EU is not one donor but 27 MemberStates and the Commission • together responsible for 56% of all

development aid (2009: €48.2 billion)• To compare: USA provides 24% (€20.6 billion)

European Commission on its own:• Second largest donor of development aid

(13%, after USA) • Second largest donor of humanitarian aid• Present in approx. 150 countries

Based on OECD/DAC figures 2009

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Graph 1: Sectoral Breakdown

Commitments 2009 in € million

ODA resources managed by European Commission

1. Social Infrastructures: Education, Health, Water,

Government & Civil Society, Other ; 4 082 M€;

34.7%

3. Production : Agriculture, Forestry & Fishing, Industry, Mining &

Construction, Trade & Tourism; 1 707 M€; 14.5%

9. Other/Unallocated : Admin. Costs, Support to NGOs, Unspecified; 546

M€; 4.6%

6. Action relating to debt; 13 M€; 0.1%

2. Economic Infrastructures & Services : Transport,

Communications, Energy, Other services; 1 243 M€;

10.6%

5. Budget Support, Food Aid, Food Security; 1 298

M€; 11.0%

4. Multisector/Crosscutting : Environment, Other; 1

612 M€; 13.7%

7. Emergency assistance, Reconstruction Relief; 1

262 M€; 10.7%

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EU official development assistance - ODA

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2010

20092015

Source: OECD/DAC for 2009

EC Database for new Member States and 2010 OECD Data

EU ODA % of GNI: actual 2009, forecast 2010, objective 2015

0.33

increase decrease

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3Who we are

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Implementation:EuropeAid (future DEVCO) tasks

•Responsible for implementing external aid programmes across the world

• Aims to deliver development aid in an efficient and effective way

• Responsible for translating policies into practical aid actions and for developing new ways of aid delivery

• Responsible for the steps of aid delivery: identification, feasibility, financial decisions and controls, tendering, contracting, monitoring and evaluation

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Implementation: Delegations

Delegations in countries receiving EC external assistance: approx. 115

Delegations with international organisations (e.g. UN, OECD)

Delegations with pre-accession countries (e.g. Turkey)

Delegations with industrialised countries (e.g. USA, Japan)

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Aid delivery methods

• Projects: series of activities aimed at bringing about clearly

specified objectives within a defined timeframe and a defined

budget. Use of donor or country procedures.

• Sector Policy Support Programme: programmes of the

European Commission designed to support the partner

government’s sector programme. Implemented through sector

budget support (SBS), pooled funding or project approach.

• General budget support: large money transfer to the national

treasury of a partner country in support of a national development

policy. Use of country procedures.

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4Challenges ahead

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Challenges ahead

• Deliver on our promises to the Millennium Development Goals

• Make Aid effectiveness happen

• Focusing on results and high impact aid

• Developing innovative financing instruments

• Facilitation of more inclusive growth and sustainable growth

• Take full advantage of the Lisbon Treaty and the European External Action Service for policy coherence

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THANK YOU!