(Brussels 14/05/2012) Fewer countries will receive EU aid in the future, with EU member states endorsing a new plan to shift bilateral aid away from many middle income countries and open up the private sector to development aid funds. The agreement was made by national government ministers at a Foreign Affairs Council today in Brussels.
CONCORD, the European confederation of Relief and Development NGOs, is deeply concerned about the insufficient level of time and attention given to crucial issues, such as the future of EU development policy, which is only one of the topics on the three-hour meeting agenda today, the first meeting of EU development ministers this year.
Private sector opened up to EU aid funds The EU says it will work to provide ‘an enabling business environment’ as part of its aid reforms. “This agreement does not provide enough clarity on what kind of private sector will benefit from public money. Will it be local firms in developing countries or foreign multinationals who get access to funds? EU countries need to make sure they don’t divert essential aid support away from those most in need,’ says Olivier Consolo, Director of CONCORD.
Targeting aid at poor countries or poor people?
The EU says ‘resources should be targeted at countries most in need’. “Aid should be targeted to the poorest people. Poverty doesn’t have nationality. The EU plans to cut aid already in 2 years' time to many countries, such as Peru, where inequality is still a major problem and people are not able to access the benefits of growth. This is not the right way to tackle poverty within the EU's new development policy,” says Laura Sullivan, Head of European Advocacy at ActionAid, a member of CONCORD.
Aid commitments on 0.7% still priority EU states reaffirmed their commitments to give 0.7% GNI to aid by 2015. “While EU member states are reaffirming their commitments to meet the UN aid targets, many are still far off track. Current projections suggest that total EU aid will stagnate between 2010 and 2015 at 0.44% of GNI. Those that are off-track need turn these words into action by publishing annual aid targets, recognising the vital role that aid plays in supporting millions of the world’s poor,” says Ben Jackson, Chief Executive of Bond, the UK NGO network, a member of CONCORD.
Impact of other EU policies on development recognized Separate Council conclusions were adopted on the Policy Coherence for Development principle. “We welcome the bold move from EU member states to recognize that many EU policies can have harmful impacts on the developing world. This now has to manifest itself in action around policies impacting on developing countries, such as the review of the common agricultural policy,” says Olivier Consolo, Director of CONCORD.