# EUR-Lex - 52012DC0492 - EN

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# 52012DC0492

**COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS The roots of democracy and sustainable development: Europe's engagement with Civil Society in external relations /* COM/2012/0492 final */**

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TABLE OF CONTENTS

1........... BACKGROUND.......................................................................................................... 3

1.1........ The importance of Civil Society....................................................................................... 3

1.2........ What the EU means by CSOs......................................................................................... 3

1.3........ A changing landscape..................................................................................................... 3

2........... A RENEWED EU RESPONSE..................................................................................... 4

3........... PROMOTING AN ENABLING
ENVIRONMENT..................................................... 5

4........... A STRONG FOCUS AT COUNTRY LEVEL.............................................................. 6

4.1........ Inclusive policy-making for
better governance.................................................................. 7

4.2........ Domestic transparency and
accountability........................................................................ 7

4.3........ Social services: partnerships for
better quality.................................................................. 8

4.4........ CSOs' work for inclusive and
sustainable growth............................................................. 9

4.5........ EU roadmaps for engagement with
CSOs....................................................................... 9

5........... CSOs IN REGIONAL AND GLOBAL
SETTINGS................................................... 10

6........... SHAPING EU SUPPORT........................................................................................... 10

6.1........ Capacity development in the
spotlight............................................................................ 10

6.2........ Funding adapted to local needs..................................................................................... 11

7........... CONCLUSIONS........................................................................................................ 11

COMMUNICATION FROM THE COMMISSION TO
THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL
COMMITTEE AND THE COMMITTEE OF THE REGIONS

The roots of democracy and sustainable
development: Europe's engagement with Civil Society in external relations

1.           BACKGROUND

1.1.        The
importance of Civil Society

An empowered civil
society is a crucial component of any democratic system and is an asset in
itself. It represents and fosters pluralism and can contribute to more
effective policies, equitable and sustainable development and inclusive growth.
It is an important player in fostering peace and in conflict resolution. By articulating
citizens' concerns, civil society organisations (CSOs) are active in the public
arena, engaging in initiatives to further participatory democracy. They embody
a growing demand for transparent and accountable governance.

While states carry the primary
responsibility for development and democratic governance, synergies between
states and CSOs can help overcome challenges of poverty, widening inequalities,
social exclusion and unsustainable development. CSOs' participation in policy
processes is key to ensuring inclusive and effective policies. CSOs therefore
contribute to building more accountable and legitimate states, leading to
enhanced social cohesion and more open and deeper democracies.

1.2.        What
the EU means by CSOs

The concept of "CSOs" embraces a
wide range of actors with different roles and mandates. Definitions vary over
time and across institutions and countries. The EU considers CSOs to include
all non-State, not-for-profit structures[1], non-partisan
and non –violent, through which people organise to pursue shared objectives and
ideals, whether political, cultural, social or
economic. Operating from the local to the national, regional and
international levels, they comprise urban and rural, formal and informal organisations.
The EU values CSOs' diversity
and specificities; it engages with accountable and
transparent CSOs which share its commitment to social progress and to the
fundamental values of peace, freedom, equal rights and human dignity.

1.3.        A
changing landscape

The last decade has
witnessed contrasting developments. CSOs are now widely recognised as
development actors in their own right. They have increased in number and
respond to new social bases, building coalitions at all levels. CSOs stand out
thanks to their capacity to reach out to, empower, represent and defend vulnerable
and socially excluded groups, and trigger social innovation. Against this
background, governments in several countries have strengthened their engagement
with CSOs.

Yet the relationship
between states and CSOs is often delicate. A limited tradition of dialogue
still prevails in many countries and far too often the space for civil society remains
narrow or is shrinking, with severe restrictions applied. In many contexts, CSOs focused on human rights and advocacy,
including women’s organisations, face limitations in their opportunities to work
and to secure funding.

On their side, CSOs
may face challenges of representativeness, transparency, internal governance
and capacity, dependency on international donors as well as competition over
resources, exacerbated by the economic crisis. Furthermore, new and more fluid
forms of citizens and youth actions are on the rise: the "Arab
Spring" and the "Occupy" movements highlight the potential of
social and cultural movements as agents for change. The space and
opportunities opened up by the Internet and the social media are also playing a
substantial role in driving this change.

2.           A
RENEWED EU RESPONSE

In light of this
context, the Commission proposes an enhanced and more strategic approach in its
engagement with local CSOs covering all regions, including developing, neighbourhood
and enlargement countries. Due consideration will be given to
country-specificities, particularly in highly volatile political contexts.

The EU gives value to a
dynamic, pluralistic and competent civil society and recognizes the importance
of constructive relations between states and CSOs. Therefore the emphasis of
the EU policy will be on CSOs' engagement to build stronger democratic
processes and accountability systems and to achieve better development outcomes[2].

This Communication puts
forward three priorities for EU support:

·
To enhance efforts to
promote a conducive environment for CSOs in partner countries.

·
To promote a meaningful
and structured participation of CSOs in domestic policies of partner countries,
in the EU programming cycle and in international processes.

·
To increase local CSOs'
capacity to perform their roles as independent development actors more effectively.

At the operational
level, while the principles of
concentration and differentiation[3]
will be taken into account, a more strategic engagement with CSOs will be
mainstreamed in all instruments and programmes and in all sectors of
cooperation.

The EU will support the
implementation of the provisions of this Communication also through its
political and policy dialogues with partner countries.

The elaboration of EU
roadmaps for engagement with CSOs[4]
at country level should activate and ensure structured dialogue and strategic
cooperation, increasing consistency and impact of EU actions.

The new policy is based
on the results of the worldwide “Structured
Dialogue on the involvement of CSOs and Local Authorities in EU development
cooperation” [5](2010 – 2011). The initiative allowed for a thorough revision of the
multifaceted partnership with CSOs – spanning from policy and strategic aspects
to operational and funding issues. It resulted in a shared vision on a more
ambitious and coherent EU engagement with CSOs.

Additionally, this Communication further
develops the provisions relating to CSOs contained in the new Agenda for
Change[6]
and takes account of the renewed European
Neighbourhood Policy[7],
the recent Enlargement strategies[8]
and statements on EU Budget support to Third Countries[9], together with international
commitments under the 2011 Busan Partnership on Effective Development
Cooperation[10].
It also integrates the results of the online consultation on "Civil
Society Organisations in development cooperation"[11].

3.           PROMOTING
AN ENABLING ENVIRONMENT

The ability of CSOs to
participate in different domains of public life depends on a set of
pre-conditions commonly referred to as the "CSO enabling
environment", for which different actors carry responsibility.

To operate, CSOs need a
functioning democratic legal and judicial system – giving them the de jure
and de facto right to associate and secure funding, coupled with freedom
of expression, access to information and participation in public life. The
primary responsibility to ensure these basic conditions lies with the state.

Yet many countries lack
favourable legal and regulatory frameworks to guarantee CSOs the right to
operate independently and free from unwarranted interference. In some countries
governments fail to recognise the role of CSOs. As a result, CSOs often face restrictions
regarding the legal and policy frameworks within which they work, attempts to
discredit or criminalise them, constraints on access to funds, intimidation and
even physical harassment, detention and violent attacks.

In this context, the
international community, the EU included, has a duty to advocate for a space to
operate for both CSOs and individuals. The EU should lead by example, creating
peer pressure through diplomacy and political dialogue with governments and by publicly
raising human rights concerns.

The EU has been at the
forefront of developing stronger standards and mechanisms for the promotion and
protection of human rights at the United Nations, the Council of Europe and the
OSCE. The EU will strengthen its efforts to monitor legislation, regulations
and operational issues which may affect CSOs, in accordance with international
commitments. In parallel, the EU will promote CSO-led initiatives and support
international arrangements to promote and monitor an enabling environment for
CSOs[12].

The EU will continue to
take action and measures in countries where the government fails to recognise
civil society with consequences of human rights violations. When countries
loosen their commitment to human rights and fundamental values, the EU can
suspend cooperation with national authorities and strengthen its support to local
populations through CSOs.

After the Jasmine Revolution in Tunisia, a support programme for economic recovery was made available to the Government on condition that it adopted a new law on freedom of association. This law amended conditions used by the previous regime to control this freedom.

In its cooperation with
partner governments, the EU will seek to scale up public authorities' capacity
to work constructively with civil society, increasing trust and competencies to
build up dialogue and opportunities for partnerships. The EU will continue to
offer advice and support in strengthening democratic institutions and reforms, also
by improving the capacity of policy makers and civil servants to work with
CSOs.

The EU sees an
essential role for independent media, including social media. They contribute
to an open society based on dialogue, cultural diversity and critical
reflection, and increase the accountability of both governments and CSOs.

Indirectly, CSOs also
have a role to play, particularly in ensuring their independence from the
State, their representativeness and internal governance, transparency and accountability.
As development actors, CSOs share the responsibility to demonstrate the results
of their actions, in particular to their constituencies. Various
self-regulatory initiatives are gaining international recognition, such as the Istanbul
CSOs Development Effectiveness Principles and other actor-specific charters
of accountability or national codes of conduct. The EU encourages further
efforts in this area.

4.           A
STRONG FOCUS AT COUNTRY LEVEL

The contribution of local
CSOs as partners in dialogue and in oversight will be at the heart of future EU
engagement. The EU believes in the value of CSOs' participation in domestic
policies, and is committed to promoting it.

Support to CSOs as
service providers, which in the past was particularly sustained by the EU, will
be fine-tuned. Wherever possible, it should be framed in collaborative multi-actor
partnerships coordinated with national authorities, with the long term
objective of promoting more accountable, effective and sustainable systems at
the service of populations. In
addition, CSOs’ initiatives can be supported when addressing issues that do not
receive adequate consideration within national policies but are key to social
progress and reflect human rights concerns as well as sustainable development issues.

Furthermore, initiatives and innovations for promoting equitable
and sustainable growth put forward by CSOs will also be supported.

Countries in context of
fragility, in crisis or in post conflict situation deserve a specific approach.
The EU recognises an essential role for CSOs in the peace and security agenda,
particularly in conflict prevention, peace-building and state-building.

The EU has been at the
forefront of promoting CSOs participation in EU programming phases. This
approach has been progressively embraced, notably in the African, Caribbean and Pacific countries, following the Cotonou Agreement provisions in this regard.
Further efforts should be made to consolidate the practice in all regions.

4.1.        Inclusive
policy-making for better governance

Civil society
participation in public policy processes and in policy dialogues leads to inclusive
and effective policies, if conjugated with adequate allocation of resources and
sound management. CSOs participation is a key factor in devising policies that
meet people's needs. Governments can benefit from the constructive
participation of CSOs in the development, implementation and monitoring of
national strategies, at all levels. The political will of public authorities to
engage is crucial and the EU will encourage actions to progress in this
direction.

The EU will invest more
in promoting, supporting and monitoring effective mechanisms for
result-oriented dialogues, emphasising their multi-stakeholder dimension.
National or sectoral policy dialogues should include all concerned actors, such
as CSOs and the private sector where relevant, and partner governments, local
authorities, parliaments and other national institutions.

To be meaningful,
dialogue must be timely, predictable and transparent. In turn, for a policy
process to be credible, CSOs must be independent, representative and competent.

Supported by a multi-donor pooled funding mechanism co-funded by the EU, CSOs in Ghana actively contribute to the Public Interest and Accountability Committee which monitors and reports on oil and gas revenues, which are of increasing importance. Through consultations, proposals and presentations to the relevant Parliamentary Committee, CSOs have been successful in influencing the drafting of important energy legislation. They are now monitoring implementation, raising awareness and calling the government to account over possible infringements.

Dialogue schemes are specific
to each country, to the sector, and to the actors involved. For example, trade
unions' and employers' organisations work are intrinsically linked to independent
social dialogue, including with national authorities on policies affecting the
labour market.

At the local level,
dialogue mechanisms between CSOs and local authorities should be promoted, as
they guarantee useful entry points for policy input in decentralised contexts.
This enhances the responsiveness of national policies to local realities. CSOs
can also help mobilise local resources and social capital, share information
and bring marginalised groups into play, thus helping improve local governance
and territorial cohesion.

The FLEGT (Forest Law Enforcement, Governance and Trade) voluntary partnership agreements are bilateral trade agreements aimed at guaranteeing the legality of timber exported to the EU and supporting developing countries in improving forest governance. FLEGT fosters dialogue among the stakeholders in partner countries, allowing CSOs to actively help pinpoint governance challenges, help develop the necessary regulatory and technical measures, and monitor VPA implementation. In Indonesia, CSOs found that FLEGT empowered them "to be deeply involved instead of feeling dictated to by government and big business."

4.2.        Domestic
transparency and accountability

Poor governance
constrains development. The ability to hold those who govern to account is
crucial for better governance. In democratic systems it is the prime
responsibility of parliaments to hold governments to account; CSOs can also
play a role in boosting domestic accountability at local and national levels
through a free, clear, accessible flow of information. They can contribute to nurturing
respect for the rule of law by monitoring effective implementation of laws and
policies and they can initiate and support anti-corruption efforts.

By analysing and
contributing to budget proposals, monitoring and tracking public revenues and
expenditures, and supporting citizens' budget literacy, CSOs play an important
role in the budget processes, helping to ensure that public resources are used
effectively and efficiently. Linking the budget to the population's priorities,
needs and human rights can increase the impact on poverty reduction and
inclusive growth.

The EU should step up
support to country-led efforts to strengthen domestic accountability systems,
promoting CSOs' role in oversight, alongside parliaments, supreme audit
institutions, public procurement monitoring agencies and the media. The EU will
support CSO capacities to engage effectively in these systems with a long term
perspective, including at local level where a wealth of diverse and innovative approaches
is emerging in the area of "social accountability", including through
the use of new technologies.

In line with the recent
Communication The Future Approach to EU Budget Support to Third Countries
(2011), when using budget support the EU should pay particular attention to
systematically facilitating CSOs' oversight role. The new eligibility criterion
on "transparency and oversight of the budget" will focus on the
timely availability of comprehensive and sound budgetary information with which
CSOs can better hold decision makers to account.

In Morocco the EU provided support to two CSOs, a foundation and a research centre, to enhance the involvement of parliamentarians of different political groups in budgetary processes and reform. Through research and trainings, the CSOs have successfully supported parliamentarians in better understanding budgetary issues, enhancing their involvement in reform of the finance law.

4.3.        Social
services: partnerships for better quality

Ensuring effective
provision of social services - including health, education and social
protection - is the responsibility of governments, whether on central or local
level, depending on the institutional framework of the country. Beyond the provision
of services, states assume responsibility for their oversight, regulation and
quality. They may choose to work through a wide array of organisational
arrangements, from participatory schemes to public-private partnerships.

CSOs play an important
role in service delivery, complementing local and national government provision
and piloting innovative projects. Their capacity to identify needs, address
neglected issues and human rights concerns, and mainstream services to
populations that are socially excluded or out of reach is particularly
important.

The overarching objective of the EU in the
realm of social services is to support the capacity of public authorities to
build sustainable and quality systems for the benefit of population. The EU sees a value in CSOs participation in multi-actor partnerships,
particularly in sectors benefitting from EU bilateral cooperation, as a way of
promoting a coordinated approach in planning and delivering services. This is
relevant also in relation to the emerging role of the private sector in this
field. In the long term, the EU encourages funding mechanisms supporting
local CSOs in service delivery to be progressively integrated in national
systems, underpinned by solid and transparent regulatory frameworks
guaranteeing equity of access. To limit fragmentation and duplications,
coordination should be sought at all levels.

Direct support to CSOs in service delivery could
be provided to ensure disenfranchised groups can
access basic services, or to complement the actions of underperforming
or absent public authorities, particularly in least developed countries. This
is particularly needed in fragile contexts, in conflict and in crisis situations.

In Somaliland[13] the EU and other donors supported two European CSOs to establish a regional veterinary training institution. Through a bottom-up approach and using an innovative learning approach, it has educated a new generation of veterinary professionals to addresses the specific needs of the Somali livestock industry. Despite the fragile context, it is now a well-established tertiary education institution with affiliations with European and African institutions.

4.4.        CSOs'
work for inclusive and sustainable growth

CSOs have increasingly
become active players in the economic realm, with initiatives having an impact
on local economy or by monitoring repercussions of national and international
economic policies. The EU has long supported the "social economy"[14],
which focuses on achieving social impact rather than profit only. Associations
of cooperatives, foundations and NGOs are particularly active in promoting
entrepreneurship and job creations by mobilising grassroots communities,
delivering services and stimulating income generating activities for the poor
and marginalised. In the same vein, in Rio+20 the EU supported references to
CSOs as active players for an inclusive green economy, putting emphasis on the
importance of including both social and environmental factors in stimulating
economic growth.

The EU will support CSO initiatives and partnerships which combine social and
economic ambitions, in sectors such as rural development, food security,
tourism and culture, environment and energy, among others. Particular attention
should be given to job creation and entrepreneurship responsive to community
needs, stimulating local economic growth in an inclusive and sustainable
manner.

In Brazil, the EU supported a local CSO to promote the social and economic inclusion of waste collectors through a Network, providing literacy, vocational and management skills training, environmental education on recycling, and technical assistance (in administration, accounting, marketing, etc.) for their cooperatives. This increases individual incomes, reduces illiteracy, and opens access to social protection. In 2012, this project won the Brazilian National Prize for Millennium Development Goal 1.

The EU will also
support innovative schemes to extend access to financial services to those who are
excluded from traditional banking systems, particularly women.

Attention will also be
given to CSOs work to promote and monitor corporate social responsibility, ethical
and sustainable business models and the decent work agenda, public-private
partnerships, fair trade, and actions aimed at equitable access to natural
resources and land.

4.5.        EU
roadmaps for engagement with CSOs

The EU and the Member States should develop
country roadmaps for engagement with CSOs, to improve the impact,
predictability and visibility of EU actions, ensuring consistency and synergy
throughout the various sectors covered by EU external relations. These roadmaps
are also meant to trigger coordination and sharing of best practices with the Member States and other international actors, including for simplification and
harmonisation of funding requirements.

Roadmaps should be based on a sound understanding
of the CSOs arena and the wider socio-economic context in which they operate[15].
This is a prerequisite for a more strategic engagement of the EU at country
level, particularly if relevant stakeholders have to be identified in order to
establish or facilitate effective and meaningful dialogue schemes.

The roadmaps should identify long term objectives
of EU cooperation with CSOs and encompass dialogue as well as operational
support, identifying appropriate working modalities. This exercise should be
linked to the programming of EU external assistance,
namely bilateral, regional and thematic cooperation. The human rights country strategies
currently being developed by the EU will be an
important reference.

The roadmaps should be
developed taking into account the views of civil society, be regularly updated
and where appropriate, made publicly available and shared with national authorities.

5.           CSOs
IN REGIONAL AND GLOBAL SETTINGS

The last decades have
seen the rise of international activist groups advocating for and promoting
multilateral norms and standards and engaging in global networks and worldwide
campaigns. These cover issues such as trade, global justice, human rights, the
environment, climate change, transparency, global health and effective
development cooperation. The evolution of information and communications
technology has played a key role in the growth and changing role of
transnational networks.

Organisations, networks
and alliances acting at the regional
and global levels will be supported in tackling transnational and global challenges.

The EU will also
support CSOs active at the European and global levels which, in cooperation and
partnership with local CSOs, act to monitor policy coherence for development,
holding the international community to account for delivering on aid commitments
and contribute to the promotion of global citizens’ awareness[16].

At the EU level,
particular attention is given to CSOs dialogue with European institutions. In
addition to existing mechanisms for consultations on policies and programmes the
Commission will set up a consultative multi-stakeholder group allowing CSOs and
relevant development actors to dialogue with the EU institutions on EU
development policies, as well as on the provisions proposed in this
Communication.

6.           SHAPING
EU SUPPORT

6.1.        Capacity
development in the spotlight

In order to increase their
impact, local CSOs must overcome capacity constraints ranging from limitations
in technical management and leadership skills, fundraising, to results
management and issues of internal governance.

The EU will reinforce
its support to the capacity development of CSOs, particularly local actors, as
part of a long-term, demand-driven and flexible approach, giving particular
consideration to constituency building and representativeness.

The EU will also
support long-term and equitable
partnerships for capacity development between local and European CSOs. These should be based on local demand, include mentoring and coaching,
peer learning, networking, and building of linkages from the local to the
global level.

6.2.        Funding
adapted to local needs

Tailored funding
constitutes an important component of the EU's engagement with CSOs and should
allow better access for local organisations. The Commission will use an
appropriate mix of funding modalities[17] so as to
best respond to the widest possible range of actors, needs and country contexts
in a flexible, transparent, cost-effective and result focused manner.

In the Western Balkans and Turkey the EU is supporting regional networks of CSOs through Framework Partnership Agreements. This allows for a more flexible, long-term programmatic approach, supporting CSOs to work in partnership to develop and implement strategies for a particular sector while sharing knowledge and experience gained from different country contexts. With a focus on building capacity for analysis, monitoring and advocacy to influence policy reform, CSO partners connect from the regional to the national level and also have the opportunity to pilot small-scale local projects through re-granting to grass-root or other community based organisations.

7.           CONCLUSIONS

In an evolving
international landscape and in consideration of EU external policies, the
proposals put forward in this Communication are meant to boost EU relations
with civil society organisations and adapt them to current and future
challenges. A renewed EU response is proposed with a view to empower primarily
local CSOs in their actions for democratic governance and equitable
development. Acting together, the EU and the Member States are in a unique
position to engage more strategically to achieve greater coherence, consistency
and impact of EU actions.

[1]               They include
membership-based, cause-based and service-oriented CSOs. Among them,
community-based organisations, non-governmental organisations, faith-based
organisations, foundations, research institutions, Gender and LGBT
organisations, cooperatives, professional and business associations, and the
not-for-profit media. Trade unions and employers' organisations, the so-called
social partners, constitute a specific category of CSOs.

[2]               Since
the 1970s the EU has progressively engaged with CSOs through participatory
policy frameworks and support schemes focusing on their participation in EU
programming. This approach was reflected in the last Communication (COM (2002)
598 final) on the participation of Non State Actors in
EC Development Policy.

[3]               As proposed in the new EU
policy for development (the "Agenda for Change"), EU bilateral development cooperation will be
concentrated in a maximum of three sectors in each partner country and
resources will be targeted at the ones most in need, including those in
situations of fragility, and where they can have the greatest development
impact in terms of poverty reduction.

[4]               See section 4.5

[5]               Structured Dialogue: http://ec.europa.eu/europeaid/who/partners/civil-society/structured-dialogue_en.htm

[6]               COM (2011) 637, Council
Conclusions 9316/12

[7]               COM (2011) 303

[8]               COM (2010) 660

[9]               COM (2011) 638, Council
Conclusions 9323/12

[10]             http://www.aideffectiveness.org/busanhlf4/images/stories/hlf4/OUTCOME_DOCUMENT_-_FINAL_EN.pdf

[11]             DEVCO 'Have Your Say' (2012): http://ec.europa.eu/europeaid/how/public-consultations/6405_en.htm

[12]             See also the Busan Partnership
Document referenced in footnote 10.

[13]             This designation is without
prejudice to positions on status.

[14]             See Creating a favourable
climate for social enterprises, key stakeholders in the social economy and
innovation (2012): http://ec.europa.eu/internal_market/social_business/docs/COM2011_682_en.pdf

[15]             Regular and participatory
mappings are recommended, covering the diversity of actors and including
networks and platforms at national/sector levels.

[16]             In Europe, this is strongly
supported by the Commission with a specific actor-based programme on
Development Education and Awareness Raising (DEAR).

[17]             The EU may consider all funding
modalities and approaches allowed by the financial regulations. These include
projects, programme funding, direct award of grants, pool funding, follow-up
grants, core-funding, co-financing, ring fencing, simplified calls and
re-granting.