EN

|| EUROPEAN COMMISSION

Brussels, 19.4.2011

SEC(2011) 504 final

COMMISSION STAFF WORKING DOCUMENT

EU Accountability Report 2011 on Financing for Development Review of progress of the EU and its Member States Accompanying document to the COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Enhancing EU Accountability on Financing for Development towards the EU Official Development Assistance Peer Review VOL V

{COM(2011) 218 final} {SEC(2011) 500 final} {SEC(2011) 501 final} {SEC(2011) 502 final} {SEC(2011) 503 final} {SEC(2011) 505 final}

Annex 7 Donor Profiles

AUSTRIA

AT A GLANCE

POLICY FRAMEWORK

Austria's development cooperation is based on the Federal Act on Development Cooperation of 2002 (amended in 2003) and the current Three Year Programme on Austrian Development Policy 2009-2011, which is focussed on the MDGs and aid effectiveness. The Federal Ministry for European and International Affairs is responsible for development policy, Austria's Development Agency (ADA) and the Austrian Development Bank (OeEB) for aid implementation. The introduction of a five year budget cycle (2009-2013) has made overall aid flows more predictable[1]. The Federal Financial Framework Act 2010–2013 sets the financial parameters for medium-term ODA levels[2].

I. INCREASING FINANCIAL RESOURCES FOR DEVELOPMENT AND GLOBAL CHALLENGES

1. IMPROVING DOMESTIC RESOURCE MOBILISATION

- Support to reform programmes for capacity development of customs, judiciary and tax administrations in developing countries: Austria provides aid in these fields to EU candidate countries, EU Neighbourhood Policy countries (through EU Twinning projects on customs and tax administration) and ACP countries administrations (support to: Customs, Semi-autonomous Revenue Authorities and Ministries of Finance).

- Support to promote good governance in tax matters: Yes

- Bilateral Tax Information Exchange Agreements and Double Taxation Conventions since 2010: (i) Double Taxation Conventions signed with Bosnia and Herzegovina, Hong Kong, Libya, Serbia, and Qatar; (ii) under negotiation with Argentina, Bahamas, Cayman Islands, Chile, Isle of Man, Iceland, Jersey, Guernsey, Sri Lanka, Tajikistan, and Turkmenistan

- State of ratification of/adherence to international conventions/initiatives on tax issues:

· United Nations Convention against Corruption (Merida): Yes

· OECD Convention on Combating Bribery of Foreign Officials

in International Business Transactions: Yes

· Stolen Assets Recovery initiative (STAR): No

· Extractive Industry Transparency Initiative (EITI): No

· IMF Regional Technical Assistance Centres: Yes

· International Tax Dialogue: Yes

· International Tax Compact: No

· African Tax Administration Forum (ATAF): No

· Centro Inter-Americano de Administraciones Tributarias (CIAT): No

· IMF Topical Trust Fund on Tax policy and administration: No

2. SCALING UP ODA

ODA individual commitments /gap to agreed targets (total ODA, Africa, LDCs)

- According to its present estimates (until 2014) Austria is set to miss the 2015 0.7% ODA/ GNI target by a wide margin and will – on current forecasts – even remain below the EU collective ODA/GNI target of 0.39% in 2006 set by EU leaders in Barcelona .

- In 2010, Austria spent EUR 905 million as ODA (preliminary), 0.32% of its GNI. This was a slight recovery on 2009, when fewer debt relief measures reduced ODA volume, but it remains 0.11 percentage points below the 2008 ratio.

- Debt relief made up 50% of Austria’s ODA during the period 2005 - 2007 and more than 40% in 2008, which is higher than any other DAC member. With the decline in debt relief, Austria must sharply increase its aid to meet its agreed 2015 target.

Source: OECD/ DAC data for 1995 – 2010; Commission simulation based on information provided by EU Member States or based on agreed EU commitments for 2015. ODA in current prices.

Austria Share of debt relief in ODA volumes

Source: OECD/DAC data

- "Realistic, verifiable actions for meeting individual ODA commitments until 2015" taken in 2010: Although the Council of Ministers confirmed the ODA goals in November 2010, Austria projects ODA levels substantially below the 2005 – 2010 average.

- No measure taken nor planned to contribute to the EU27 target to channel at least 50% of EU collective ODA increase to Africa.

- Austria will reach the target of 0.15%-0.20% ODA/GNI to LDCs by 2010 and onwards.

3. SUPPORT FOR / USE OF INNOVATIVE SOURCES AND MECHANISMS OF FINANCING DEVELOPMENT

- Austria intends to step up efforts for innovative financing mechanisms with significant revenue generation potential, with a view to ensuring predictable financing for sustainable development. Austria's budget for fiscal year 2011 does not allocate revenues from an agreed increase of the tax for private foundations to development cooperation. However, the concept of earmarking these revenues for development cooperation might be discussed again during the next budget negotiations.

- Austria did not use innovative financing mechanisms for development, but introduced an airline ticket tax (from January 2011) without earmarking its revenues for development.

4. LEVERAGING PRIVATE FLOWS FOR DEVELOPMENT

- Support to private investment in developing countries:

Foreign Direct Investment

Source: OECD/ DAC

- Financial tools to support private investment

· Investment guarantees: Yes

· Improvement of the overall banking system: No

· Microfinance/ access to financial services: Yes

· Risk management initiatives: No

· Blending: Yes

· Private public partnerships: Yes

· Business and investment climate: Yes

· Investment facilities: Yes

· Export credits: No

- Austria promotes the adoption of internationally agreed principles and standards on Corporate Social and Environmental Responsibility by European companies. ADA offers Business Partnerships to Austrian/European companies on a co-financing basis. CSR oriented activities play a particular role in this type of projects. Health, education and compliance with social and ecological standards are the most frequent topics. One typical example is the hepatitis vaccination programme of OMV, the leading Austrian oil and gas corporation. The project, implemented in Pakistan, focuses on vaccination and medical education and is part of a comprehensive development programme including water and infrastructure.

- No new initiatives were started in 2010 to include social and environmental clauses in ODA-financed public procurement.

- Austria did not implement solutions internally or in cooperation with third countries to overcome barriers to migrants and their families' access to financial services.

5. AID FOR TRADE

Source: OECD CRS Database (latest update)

6. REDUCING THE DEBT BURDEN OF DEVELOPING COUNTRIES

- Austria delivered on its HIPC/ MDRI commitments (including vis-à-vis IDA/ AfDB)

- Actions/steps taken in 2010 to help restore and preserve debt sustainability in low-income countries: contribution to DeMFLIC (Debt Management Facilitation for Low Income Countries) a World Bank Multi-Donor Trust Fund.

- Austria favours reform of the international architecture for restructuring of sovereign debts in order to deal with potential future cases of debt distress in low-income countries (through the Paris Club with a role for International Financial Institutions).

- No specific intervention to prevent aggressive litigation against HIPCs (in particular to prevent the actions of "vulture funds").

II. IMPROVED EFFECTIVENESS OF SUPPORT TO DEVELOPING COUNTRIES

7. MORE EFFECTIVE EU AID

- On Ownership. In 2010, Austria supported ownership through consultations and coordination with partner countries and through partner capacity development.

- On Conditionality. In 2010, Austria progressed by harmonising conditionalities with other donors.

- On Transparency and Predictability. Austria publicly discloses information on aid volumes through the Austrian Development Agency (ADA) web site.

- On Alignment. Austria partially integrated the principles of the Code of Conduct on Complementarity and Division of Labour in its development strategy.

- On Harmonisation. In 2010, ADA was authorised to manage EU funds. Delegated cooperation agreements with the European Commission and other Member States can now be concluded where appropriate.

- On Mutual Accountability. Austria established a joint framework for monitoring joint commitments with some of its priority countries (i.e. Bhutan, Burkina Faso, Ethiopia, Mozambique, Nicaragua and Uganda).

- On Managing for Development Results. Austria provides capacity building support for this.

8. SUPPORTING BETTER GLOBAL GOVERNANCE

- Position on improving the voice of the EU and its Member States within International Financial Institutions. Austria supports a single EU Chair for the IMF in order for the EU27 to speak with one voice. In the case of Multilateral Development Banks, the rationale for a single constituency is considered less evident, but could be a long-term goal. A consolidation process requires fair terms of representation of smaller countries and efficient coordination mechanisms, including better EU coordination on MDB boards, among the EU27 capitals and common positions in the subcommittee on IMF matters—“SCIMF”— of the Economic and Financial Committee, or equivalent forum on WB/MDBs issues. These discussions should precede deliberations and decision making at G8/G20 level.

- Austria favours stronger Brussels based coordination on issues related to the World Bank and MDBs.

BELGIUM

AT A GLANCE

POLICY FRAMEWORK

The strategic framework that guides Belgian development co-operation actors includes the 1999 Law on International Cooperation, laws governing specific actors of Belgian development cooperation, various royal decrees, strategies of actors related to the federal level, and separate strategies by federated entities. Belgium’s development cooperation has gained new momentum over the last two years, driven by international commitments and a process of self-reflection. New policies have been issued, aid management reforms have advanced, and a new law on development cooperation has been prepared in 2010 in parallel with the government’s programme for 2008-2011.

I. INCREASING FINANCIAL RESOURCES FOR DEVELOPMENT AND GLOBAL CHALLENGES

1. IMPROVING DOMESTIC RESOURCE MOBILISATION

- Support to reform programmes for capacity development of customs, judiciary and tax administrations in developing countries: Belgium provides aid in these fields to ACP country administrations (support to: Semi-autonomous Revenue Authorities and Ministries of Finance).

- Support to promote good governance in tax matters: Yes

- Bilateral Tax Information Exchange Agreements and Double Taxation Conventions since 2010: (i) Double Taxation Conventions signed [3] with Anguilla, Congo, Czech Republic, Dominican Republic, Granada, Japan, Korea, Macedonia, Malta, Montserrat, Rwanda, ; (ii) under negotiation [4] with Barbados, Botswana, Colombia, Israel, Panama, Poland, Uruguay, (iii) planned with India, South Korea, Kyrgyzstan, Netherlands, Serbia, Turkmenistan

- State of ratification of/adherence to international conventions/initiatives on tax issues:

· United Nations Convention against Corruption (Merida): Yes

· OECD Convention on Combating Bribery of Foreign Officials in International Business Transactions: Yes

· Stolen Assets Recovery initiative (STAR): No

· Extractive Industry Transparency Initiative (EITI): Yes

· IMF Regional Technical Assistance Centres: NC

· International Tax Dialogue: NC

· International Tax Compact: NC

· African Tax Administration Forum (ATAF): NC

· Centro Inter-Americano de Administraciones Tributarias (CIAT): NC

· IMF Topical Trust Fund on Tax policy and administration: NC

2. SCALING UP ODA

ODA Individual commitments and gap to target

– Belgium planned to meet the 0.7% target by 2010, but remained below it, reaching ODA level of 0.64% of GNI by spending EUR 2265 million (preliminary). Belgium has a legally binding commitment to the 0.7% target for 2010 and beyond.

– Debt relief makes up a particularly high share of Belgium’s ODA increase. This share, however, is expected to decline in 2011 and Belgium needs to make sure to sustain the 0.7% target in the medium and long term.[5]

Source: OECD/ DAC data for 1995 – 2010; Commission simulation based on information provided by EU Member States or based on agreed EU commitments for 2010 and 2015. ODA in current prices.

Belgium Share of debt relief in ODA volumes

Source: OECD/DAC data for 2002-2010

- "Realistic, verifiable actions for meeting individual ODA commitments until 2015" taken in 2010: The official directorate of Development and Cooperation is currently drafting a mid-term budget plan to ensure required new ODA will be available to maintain ODA/GNI around 0.7% after 2010.

- 50% of new resources for bi-lateral Belgian development cooperation in 2010 and 2011 went to African partner countries, mostly in Sub-Saharan Africa

- Will you reach the target of 0.15%-0.20% ODA/GNI to LDCs by 2010 and onwards: Already achieved

3. Support for/ use of innovative sources and mechanisms of financing development

- Belgium did not use innovative financing mechanisms for development except net receipts from the Belgian Lottery “which should be regarded as innovative financing”.

- Belgium intends to step up efforts for innovative financing mechanisms with significant revenue generation potential. Belgium is ready to implement a Currency Transactions Tax (CTT) if consensus is reached at Euro-level. A law in this regard was voted in parliament in 2004.

4. LEVERAGING PRIVATE FLOWS FOR DEVELOPMENT

Support to private investment in developing countries:

Foreign Direct Investment

Source: OECD/ DAC

Financial tools to support private investment

· Investment guarantees: Yes

· Improvement of the overall banking system: Yes

· Microfinance/ access to financial services: Yes

· Risk management initiatives: No

· Blending: Yes

· Private public partnerships: No

· Business and investment climate: Yes

· Investment facilities: No

· Export credits: Yes

– Belgium promotes the adoption of internationally agreed principles and standards on Corporate Social and Environmental Responsibility by European companies. The Belgian Development Cooperation supports several activities within the framework of Fair Trade: the Trade for Development Centre within the Belgian Technical Cooperation (BTC) and several NGOs (Max Havelaar, Oxfam Wereldwinkels, Oxfam Magasins du Monde, etc.). The Belgian Development Cooperation organised a seminar on corporate governance together with the World Bank at the beginning of December 2010

– Belgium supports the Kimberley process and the FAO Code of Conduct for Responsible Fisheries

– No new initiatives were started in 2010 to include social and environmental clauses in ODA-financed public procurement (the Belgian law on public procurement of 24 December 1993 has not changed during 2010)

– Belgium implemented the "General Principles for International Remittances Services" agreed by the Committee on Payments and Settlements Systems (CPSS). Meanwhile, Belgium has robust and reliable data concerning the amounts and destination of remittances from Belgium.

5. AID FOR TRADE

Belgium AfT Commitments (in EUR thousands)

Source: OECD CRS Database (latest update)

6. REDUCING THE DEBT BURDEN OF DEVELOPING COUNTRIES

- Belgium delivered on its HIPC/ MDRI commitments (including vis-à-vis IDA/ AfDB) without delay.

- Actions/steps taken in 2010 to help restore and preserve debt sustainability in low-income countries: financially supporting the World Bank Debt Management Facility and also participating in the African Legal Support Facility.

- Belgium does not favour reform of the international architecture for restructuring of sovereign debts

- Specific interventions to prevent aggressive litigation against HIPCs (in particular to prevent the actions of "vulture funds"): Yes. On April 6, 2008, Belgium passed a bill to prevent the seizure or transfer of public funds for international cooperation, in particular related to the methods of the Vulture Funds.

II. IMPROVED EFFECTIVENESS OF SUPPORT TO DEVELOPING COUNTRIES

7. MORE EFFECTIVE EU AID

- On Ownership. In 2010, Belgium supported ownership through consultations and coordination with partner countries, through guidance and incentives for staff in partner countries, and through partner capacity development.

- On Conditionality. In 2010, Belgium progressed by harmonising conditionalities with other donors.

- On Transparency and Predictability. Belgium publicly discloses information on aid volumes through the Belgium Development Cooperation web site[6] and through the websites of field offices.

- On Alignment. Belgium partially integrated the principles of the Code of Conduct on Complementarity and Division of Labour in its development strategy.

- On Harmonisation. Belgium signed a general arrangement on delegated cooperation with the Netherlands in 2011.

- On Mutual Accountability. Belgium established a joint framework for monitoring joint commitments with some of its priority countries (i.e. Mozambique, Tanzania, Uganda).

- On Managing for Development Results. Belgium provides capacity building support for this.

8. SUPPORTING BETTER GLOBAL GOVERNANCE

- Position on improving the voice of the EU and its Member States within International Financial Institutions. Belgium supports a single EU Chair at the IMF in order for the EU27 to speak with one voice. Notably in the IMF, preferably by a single seat for the euro area. As for the MDBs, this can best be done by an informal coordination mechanism among Executive Directors (e.g. World Bank), and, for important matters, among representatives from the capitals (e.g. Voice reforms, Development Committee).

- Belgium does not favour stronger Brussels based coordination on issues related to the World Bank and MDBs.

BULGARIA

POLICY FRAMEWORK

Bulgaria’s international development cooperation activities are guided by the ‘Concept on the Policy of Bulgaria for participation in the international development cooperation’ adopted by the Council of Ministers (2007). The Ministry of Foreign Affairs manages Bulgaria’s development cooperation activities. The Ministry of Finance plays a role in ODA programming and planning and determines the selection of financial mechanisms and instruments. Bulgaria has stated that it will strive to reach the ODA targets set for the newly acceded Member States at 0.17% of GNI in 2010 and 0.33% of GNI in 2015, depending on its economic status and possibilities.[7] A bilateral development strategy is awaiting adoption.[8]

I. INCREASING FINANCIAL RESOURCES FOR DEVELOPMENT AND GLOBAL CHALLENGES

1. IMPROVING DOMESTIC RESOURCE MOBILISATION

- Support to reform programmes for capacity development of custom, judiciary and tax administrations in developing countries: Bulgaria provides support to the General Department of National Taxation of Mongolia in the field of taxation and collection of mandatory social security contributions, including laws, regulations, manuals and training materials.

- Promotes the principles of good governance in tax matter: Yes

- New Bilateral Tax Information Exchange Agreements and Double Taxation Conventions of 2010: i) Agreements under negotiation: Venezuela; ii) Agreements planned: Yemen.

- Support/ratification of/adherence to international conventions/initiatives on tax issues:

· IMF Regional Technical Assistance Centres: Yes

· International Tax Dialogue: Yes

· International Tax Compact: Yes

· African Tax Administration Forum (ATAF): Yes

· Centro Inter-Americano de Administraciones Tributarias (CIAT): Yes

· IMF Topical Trust Fund on Tax policy and administration: Yes

· United Nations Convention against Corruption (Merida): Yes

· OECD Convention on Combating Bribery of Foreign Officials in International Business Transactions: Yes

· Stolen Assets Recovery initiative (STAR): No

· Extractive Industry Transparency Initiative (EITI): No

2. SCALING UP ODA

ODA individual commitments/gap to agreed targets

- Bulgaria spent EUR 31 million on ODA in 2010 (preliminary), a nominal 250% increase compared to 2009 (partly due to improved ODA reporting); this corresponds to 0.09% ODA/ GNI, compared to 0.04% in 2009.

- Share of debt relief in ODA: N/A

Source: OECD/ DAC data for 1995 – 2010; Commission simulation based on information provided by EU Member States or based on agreed EU commitments for 2010 and 2015. ODA in current prices.

- "Realistic, verifiable actions for meeting your individual ODA commitments until 2015" taken in 2010: The multi-annual indicative timetable/minimum aid level commitment will be established after the adoption of the Ordinance of the Council of Ministers on the objectives, principles and mechanisms of participation of the Republic of Bulgaria in international development cooperation and a medium-term programme.

- Have you taken or do you plan to take measures to ensure that at least 50% of EU collective aid increases of ODA resources are channelled to Africa? N/A

- Bulgaria will not reach the target of 0.15%-0.20% ODA/GNI to LDCs by 2010

3. SUPPORT FOR/ USE OF INNOVATIVE SOURCES AND MECHANISMS OF FINANCING DEVELOPMENT

- Bulgaria has not implemented any innovative financing sources and mechanisms and has no plan to step up efforts in the area.

4. LEVERAGING PRIVATE FLOWS FOR DEVELOPMENT

Support to private investment in developing countries:

- Financial tools to support private investment:

· Investment guarantees: No

· Improvement of the overall banking system: No

· Microfinance/ access to financial services: No

· Risk management initiatives: No

· Blending: No

· Private public partnerships: No

· Business and investment climate: No

· Investment facilities: No

· Export credits: No

- Promoting Corporate Social and Environmental Responsibility: N/A

- New initiatives in relation to including social and environmental clauses in ODA-financed public procurements: N/A

- Bulgaria has implemented the "General Principles for International Remittances Services" agreed by the Committee on Payments and Settlements Systems (CPSS).

5. AID FOR TRADE

Bulgaria AfT Commitments (in EUR thousands)

Source: OECD CRS Database (latest update)

6. REDUCING THE DEBT BURDEN OF DEVELOPING COUNTRIES

- Bulgaria has delivered on its commitments to the HIPC and MDRI initiatives, including commitments towards IDA and the African Development Bank

- Bulgaria sees no need for reform of the international architecture for the restructuring of sovereign debts.

- Bulgaria has not planned any specific measure to prevent aggressive litigation against HIPCs.

II. IMPROVED EFFECTIVENESS OF SUPPORT TO DEVELOPING COUNTRIES

7. MORE EFFECTIVE EU AID

- On Ownership. N/A

- On Conditionality. N/A.

- On Transparency and Predictability. N/A.

- On Alignment. Bulgaria has not integrated the principles of the Code of Conduct on Complementarity and Division of Labour in strategies, staff guidance and programming processes/guidelines.

- On Harmonisation. Bulgaria has no arrangements in place for delegated cooperation.

- On Mutual Accountability. Bulgaria has not established joint frameworks for monitoring joint commitments.

- On Managing for Development Results. Bulgaria does not provide capacity support for Managing for Development Results.

8. SUPPORTING BETTER GLOBAL GOVERNANCE

- Bulgaria believes there are reasonable assumptions for an enhanced level of agreement among EU member states on major issues of common interest on the agenda of the IMF, the World Bank, and other MDB-s. It should be taken in account, though, that each EU member state is a separate shareholder in the respective IFI with its inherent rights and obligations.

CYPRUS

POLICY FRAMEWORK

Cyprus development assistance is guided by the Μedium-Term Strategy for Official Development Assistance 2006-2010.[9] Cypriot assistance is directed to 5 programme countries where Cyprus will undertake to implement more comprehensive schemes of assistance and to 14 project countries where Cypriot aid is delivered in the form of small scale individual projects. Sectoral priorities are infrastructure development, social and services sectors and the environment. Cyprus development activities are labeled CyprusAid.[10] The highest decision making body is the Coordination Body headed by the Minister of Foreign Affairs and membership from the Minister of Finance and the Permanent Secretary of the Planning Bureau. The Planning Bureau has policy preparation, administrative and implementation functions for the decisions.

I. INCREASING FINANCIAL RESOURCES FOR DEVELOPMENT AND GLOBAL CHALLENGES

1. IMPROVING DOMESTIC RESOURCE MOBILISATION

- Cyprus does not provide support to reform programmes for capacity development of custom, judiciary and tax administrations in developing countries

- Promotes the principles of good governance in tax matter: No

- New Double Taxation Conventions of 2010:

- State of ratification of/ adherence to international conventions/ initiatives on tax issues:

· IMF Regional Technical Assistance Centres: No

· International Tax Dialogue: No

· International Tax Compact: No

· African Tax Administration Forum (ATAF): No

· Centro Inter-Americano de Administraciones Tributarias (CIAT): No

· IMF Topical Trust Fund on Tax policy and administration: No

· OECD Global Forum on Transparency and Exchange of Information on Tax Purposes: Yes

· International Organization of Tax Administrations (IOTA): Yes

· Commonwealth Association of Tax Administrators (CATA): Yes

· United Nations Convention against Corruption (Merida): Yes

· OECD Convention on Combating Bribery of Foreign Officials in International Business Transactions: No

· Stolen Assets Recovery initiative (STAR): No

· Extractive Industry Transparency Initiative (EITI): No

2. SCALING UP ODA

ODA individual commitments/gap to agreed targets

- Cyprus spent EUR 34 million on ODA in 2010 (preliminary), i.e. 20% of its GNI and met the 2010 0.17% ODA/GNI target. This was a nominal increase by 5% compared to 2009. Additional efforts are needed in comparison to other government expenditure projects to reach the 2015 0.33% ODA/GNI target.

- Share of debt relief in ODA during the period 2004 – 2009: N/A

Source: OECD/ DAC data for 1995 – 2010; Commission simulation based on information provided by EU Member States or based on agreed EU commitments for 2010 and 2015. ODA in current prices.

- "Realistic, verifiable actions for meeting your individual ODA commitments until 2015" taken in 2010: None.

- Cyprus is committed to ensure that the majority of Cypriot ODA goes to Africa. Almost 50% of Cypriot programme countries are countries of the African region. Given that increases in the volume of bilateral assistance are distributed evenly between the programme countries, this implies that at least 50% of the aid increases in bilateral assistance will be channelled to Africa.

- Almost 50% of Cypriot bilateral assistance is provided to LDCs.

3. SUPPORT FOR/ USE OF INNOVATIVE SOURCES AND MECHANISMS OF FINANCING DEVELOPMENT

- Cyprus supports UNITAD (medical drug financing through innovative sources) with EUR 0.4 million, but has no intention to step up efforts in the area of innovative financing mechanisms.

4. LEVERAGING PRIVATE FLOWS FOR DEVELOPMENT

Support to private investment in developing countries:

- Financial tools to support private investment:

· Investment guarantees: No

· Improvement of the overall banking system: No

· Microfinance/ access to financial services: No

· Risk management initiatives: No

· Blending: No

· Private public partnerships: No

· Business and investment climate: Yes

· Investment facilities: No

· Export credits: No

· Scholarship on managerial and financial matters: Yes

- Cyprus does not promote the adoption of internationally agreed principles and standards on Corporate Social and Environmental Responsibility by European companies.

- Cyprus does not support the Kimberley process and the FAO Code of Conduct for Responsible Fisheries.

- New initiatives in relation to including social and environmental clauses in ODA-financed public procurements: None

- Cyprus has no current plans to implement solutions internally or in cooperation with third countries to overcome barriers to migrants and their families' access to financial services. Cyprus’ development and migration policies are currently not interconnected.

- Cyprus does have robust and reliable data concerning the amounts and destination of remittances from the country.

- Cyprus has not implemented the General Principles for International Remittances Services" agreed by the Committee on Payments and Settlements Systems (CPSS)

5. AID FOR TRADE

No information available on Cyprus’ commitments for Aid for Trade

6. REDUCING THE DEBT BURDEN OF DEVELOPING COUNTRIES

- Cyprus has delivered on its commitments to the HIPC and MDRI initiatives, including commitments towards IDA and the African Development Bank.

- Cyprus sees no need for reform of the international architecture for the restructuring of sovereign debts.

- Cyprus has not planned specific interventions to prevent aggressive litigation against HIPCs.

II. IMPROVED EFFECTIVENESS OF SUPPORT TO DEVELOPING COUNTRIES

7. MORE EFFECTIVE EU AID

- On Ownership. Cyprus supported country ownership in 2010 through consultation and coordination with partner countries.

- On Conditionality. Cyprus has carried out the following actions on conditionalities in 2010: harmonisation with other donors.

- On Transparency and Predictability. Cyprus publicly discloses information on aid volume on a website.

- On Alignment. Cyprus has integrated the principles of the Code of Conduct on Complementarity and Division of Labour in strategies, staff guidance and programming processes/guidelines.

- On Harmonisation. Cyprus has arrangements in place for delegated cooperation. In fact, all projects funded by Cyprus Aid are implemented through delegated cooperation. There is a mechanism in place to track cases of delegated cooperation.

- On Mutual Accountability. Cyprus has not established a joint framework for monitoring joint commitments in priority countries.

- On Managing for Development Results. Cyprus does not provide capacity support for Managing for Development Results.

8. SUPPORTING BETTER GLOBAL GOVERNANCE

- Cyprus believes that the EU27 should speak with one voice in the IMF, World Bank and the main multilateral development banks' governing bodies. The EU Member-State holding the EU Presidency should communicate the EU position on behalf of all members after an intra EU preparatory meeting.

- Cyprus support stronger Brussels based coordination on issues related to the World Bank and MDB's.

CZECH REPUBLIC

POLICY FRAMEWORK

The Principles for Providing Foreign Aid, the Bill on Foreign Development Cooperation and humanitarian aid and the objectives contained in the Concept of the International Development of the Czech Republic 2008-2012 illustrate the extent to which the Czech Republic recognises development co-operation as a policy area in its own right.[11]

In the past ten years, the Czech Republic introduced a number of major changes in the concept and organisation of development cooperation, aimed at increasing the efficiency of aid provided to partner countries and adapting it to the changing international environment. A turning point was the Czech Republic's accession to the European Union that is the world's leading provider of external assistance. The Czech Development Agency (CzDA) is an implementing body of the Czech Development Cooperation primarily focused on design and execution of bilateral development projects. CzDA has been in operation since January 1, 2008 and was re-established by the Law on Development Cooperation and Humanitarian Assistance on July 1, 2010. [12] Since 2010, the agency reports to the Ministry of Foreign Affairs in charge of coordination of Czech ODA[13].

I. INCREASING FINANCIAL RESOURCES FOR DEVELOPMENT AND GLOBAL CHALLENGES

1. IMPROVING DOMESTIC RESOURCE MOBILISATION

- Support to reform programmes for capacity development of customs, judiciary and tax administrations in developing countries: Czech Republic provides aid in these fields to EU Neighbourhood Policy countries (support to: Tax Administration and Ministry of Finance through projects on administration of customs duties, customs control customs).

- Support to promote good governance in tax matters: Yes

- Bilateral Tax Information Exchange Agreements and Double Taxation Conventions since 2010: (i) Double Taxation Conventions signed with Isle Of Man, Guernsey, British Virgin Islands, Bosnia And Herzegovina; (iia) DTC under negotiation with Jersey, Bermuda, San Marino, China, Hong Kong, Barbados, Denmark, (iib) Protocol to the DTC under negotiation with Serbia, Belgium, Belarus; (iii) planned with Cayman Islands, Seychelles.

- State of ratification of/adherence to international conventions/initiatives on tax issues:

· United Nations Convention against Corruption (Merida): No

· OECD Convention on Combating Bribery of Foreign Officials

· in International Business Transactions: Yes

· Stolen Assets Recovery initiative (STAR): No

· Extractive Industry Transparency Initiative (EITI): No

· IMF Regional Technical Assistance Centres: No

· International Tax Dialogue: No

· International Tax Compact: No

· African Tax Administration Forum (ATAF): No

· Centro Inter-Americano de Administraciones Tributarias (CIAT): No

· IMF Topical Trust Fund on Tax policy and administration: No

2. SCALING UP ODA

– In 2010 the Czech Republic spent EUR 169 million (preliminary), i.e.0.12% of its GNI, the same level as in 2009 and short of the 0.17% target.

– Share of debt relief in ODA: N/A

ODA Individual commitments and gap to target

Source: OECD/ DAC data for 1995 – 2010; Commission simulation based on information provided by EU Member States or based on agreed EU commitments for 2010 and 2015. ODA in current prices.

Czech Republic - Share of debt relief in ODA volumes

Source: OECD/DAC data for 2002-2010

- "Realistic, verifiable actions for meeting individual ODA commitments until 2015" taken in 2010: Czech Republic established a multi-annual indicative timetable/minimum aid level commitment, approved by the national government.

- No measures taken nor planned to contribute to the EU27 target to channel at least 50% of EU collective ODA increase to Africa.

- Czech Republic will not reach the target of 0.15%-0.20% ODA/GNI to LDCs by 2010

3. SUPPORT FOR/ USE OF INNOVATIVE SOURCES AND MECHANISMS OF FINANCING DEVELOPMENT

- Czech Republic does not intend to step up efforts for innovative financing mechanisms with significant revenue generation potential

- Czech Republic did not use innovative financing mechanisms for development

4. LEVERAGING PRIVATE FLOWS FOR DEVELOPMENT

Support to private investment in developing countries:

- Financial tools to support private investment

· Investment guarantees: Yes

· Improvement of the overall banking system: No

· Microfinance/ access to financial services: Yes

· Risk management initiatives: No

· Blending: No

· Private public partnerships: No

· Business and investment climate: No

· Investment facilities: Yes

· Export credits: Yes

- Czech Republic promotes the adoption of internationally agreed principles and standards on Corporate Social and Environmental Responsibility by European companies. Ministry of Foreign Affairs conducts dialogue with some major Czech corporations about global and international cooperation issues. Private sector representatives are also associate members of the Czech Council for Development Cooperation.

- Czech Republic supports the Kimberley process and the FAO Code of Conduct for Responsible Fisheries

- New initiatives in 2010 to include social and environmental clauses in ODA-financed public procurement: Measures according to paragraph 44 of the Public Procurement Law

- Czech Republic did not implement solutions internally or in cooperation with third countries to overcome barriers to migrants and their families' access to financial services. However, the competent authorities of the Czech Republic closely cooperate with the World Bank in the matter of International Remittance Service.

5. AID FOR TRADE

Czech Republic, AfT Commitments (in EUR thousands)

Source: OECD CRS Database (latest update)

6. REDUCING THE DEBT BURDEN OF DEVELOPING COUNTRIES

- Czech Republic delivered on its HIPC/ MDRI commitments (including vis-à-vis IDA/ AfDB) without delay.

- Actions/steps taken in 2010 to help restore and preserve debt sustainability in low-income countries: Through the application of the OECD Principles and Guidelines to Promote Sustainable Lending Practices in the Provision of Official Export Credits to LICs.

- Czech Republic does not favour reform of the international architecture for restructuring of sovereign debts

- No specific intervention to prevent aggressive litigation against HIPCs (in particular to prevent the actions of "vulture funds").

II. IMPROVED EFFECTIVENESS OF SUPPORT TO DEVELOPING COUNTRIES

7. MORE EFFECTIVE EU AID

- On Ownership. In 2010 and beginning 2011, development cooperation programming process with priority (programme) countries is under way.

- On Conditionality. In 2010, Czech Republic progressed by harmonising conditionalities with other donors and by reducing the number of conditionalities.

- On Transparency and Predictability. Czech Republic publicly discloses information on aid volumes through the Czech development Agency (CzDA) web site.

- On Alignment. Czech Republic partially integrated the principles of the Code of Conduct on Complementarity and Division of Labour in its development strategy.

- On Harmonisation. No arrangement in place on delegated cooperation.

- On Mutual Accountability. No joint framework for monitoring joint commitments.

- On Managing for Development Results. Czech Republic does not provide capacity building support for this.

8. SUPPORTING BETTER GLOBAL GOVERNANCE

- Position on improving the voice of the EU and its Member States within International Financial Institutions. Czech Republic supports a single EU Chair for the IMF in order for the EU27 to speak with one voice. For instance, to coordinate EU27 positions on key policy issues.

- Czech Republic does not favour stronger Brussels based coordination on issues related to the World Bank and MDBs.

DENMARK

AT A GLANCE

POLICY FRAMEWORK

The Danish parliament adopted a new development policy in June 2010.[14] The Government presents to parliament every year its plan and priorities for Danish development assistance for the coming five year period.[15] The priorities of Denmark's development cooperation for years 2011-2015 are concentration on fewer countries (from 26 to 15 partner countries) and five priority sectors – i) freedom, democracy and human rights, ii) growth and employment, iii) gender equality, iv) stability and fragility, and 5) environment and climate. During 2011-2013 Denmark will maintain the same level of ODA in Danish krone, which implies a decrease of the ODA/GNI ratio when GNI grows. The annual budget for development cooperation is determined by the Government’s Finance Act.[16] Administration of development assistance is the responsibility of the Ministry of Foreign Affairs.

I. INCREASING FINANCIAL RESOURCES FOR DEVELOPMENT AND GLOBAL CHALLENGES

1. IMPROVING DOMESTIC RESOURCE MOBILISATION

- Support to reform programmes for capacity development of custom, judiciary and tax administrations in developing countries: Denmark provides support to developing countries' tax policy and administration (semi-autonomous revenue authorities and ministries of finance) in Asia and ACP countries.

- Promotes the principles of good governance in tax matter: Yes

- New Bilateral Tax Information Exchange Agreements and Double Taxation Conventions of 2010: None

- State of ratification of/ adherence to international conventions/ initiatives on tax issues:

· IMF Regional Technical Assistance Centres: No

· International Tax Dialogue: No

· International Tax Compact: No

· African Tax Administration Forum (ATAF): No

· Centro Inter-Americano de Administraciones Tributarias (CIAT): No

· IMF Topical Trust Fund on Tax policy and administration: No

· United Nations Convention against Corruption (Merida): Yes

· OECD Convention on Combating Bribery of Foreign Officials in International Business Transactions: Yes

· Stolen Assets Recovery initiative (STAR): No

· Extractive Industry Transparency Initiative (EITI): Yes

2. SCALING UP ODA

ODA individual commitments/gap to agreed targets

- Denmark has since many year exceeded the EU 2015 0.7% ODA/GNI target. The Government will maintain Danish development assistance at the level of DKK 15.2 billion annually over the period 2011-2013. Denmark spent EUR 2164 million on ODA in 2010 (preliminary), i.e. 0.90% in 2010 compared to 0.88% in 2009. This was an increase by 4.3% in real terms compared to 2009.

- Debt relief made up only 3% of Danish ODA during the period 2004 - 2009

Source: OECD/ DAC data for 1995 – 2010; Commission simulation based on information provided by EU Member States or based on agreed EU commitments for 2010 and 2015. ODA in current prices.

Denmark - Share of debt relief in ODA volumes

Source: OECD/DAC data for 2002-2010

- "Realistic, verifiable actions for meeting your individual ODA commitments until 2015" taken in 2010: The Danish government is committed to the 0.7% target. It expects the level of ODA/GNI to be 0.84% in 2011. [17]

- Denmark is committed to ensure that the majority of Danish ODA goes to Africa.

- Denmark will continue to exceed the target of 0.15%-0.20% ODA/GNI to LDCs from 2010 onwards.

3. SUPPORT FOR/ USE OF INNOVATIVE SOURCES AND MECHANISMS OF FINANCING DEVELOPMENT

- Denmark has not implemented any innovative financing sources and mechanisms and has no plan to step up efforts in the area.

4. LEVERAGING PRIVATE FLOWS FOR DEVELOPMENT

Support to private investment in developing countries: Foreign Direct Investment

Source: OECD/ DAC

- Financial tools to support private investment:

· Investment guarantees: Yes

· Improvement of the overall banking system: No

· Microfinance/ access to financial services: Yes

· Risk management initiatives: No

· Blending: No

· Private public partnerships: Yes

· Business and investment climate: Yes

· Investment facilities: Yes

· Export credits: Yes

- Denmark promotes the adoption of internationally agreed principles and standards on Corporate Social and Environmental Responsibility by European companies. See Box.

Box Innovative Partnerships for Development (IPD) Programme: The IPD Programme offers financial and advisory support to partnerships between Danish companies and companies, organisations or public institutions in developing countries. The programme sets out to promote better working and living conditions for employees, their families, the community and society at large by advancing strategic CSR and socially responsible innovation. Partnerships must be within the framework of the Global Compact and the MDGs and must be long-term sustainable. Partnership proposals are measured against six development impact criteria to ensure adequate development impact. The maximum support provided under the B2B Programme is DKK5 million (approx. EUR 670.000) to each partnership project.

– Denmark is a long-term donor to the UN Global Compact.

– New initiatives in relation to including social and environmental clauses in ODA-financed public procurements: N.A.

– Denmark has current no plans to implement solutions internally or in cooperation with third countries to overcome barriers to migrants and their families' access to financial services. However, Denmark awaits the World Bank’s upcoming study on migration, remittances and diaspora in Africa and EU recommendations which are expected in 2011.

5. AID FOR TRADE

Denmark, AfT Commitments (in EUR thousands)

Source: OECD CRS Database (latest update)

6. REDUCING THE DEBT BURDEN OF DEVELOPING COUNTRIES

- Denmark has delivered on its commitments to the HIPC and MDRI initiatives, including commitments towards IDA and the African Development Bank

- In addition, Denmark has provided DKK9 million to the cancellation of Haiti´s multilateral debt.

- Denmark sees no need for reform of the international architecture for the restructuring of sovereign debts. However, Denmark believes that non-Paris Club creditors need to be involved in future restructuring and cancellation of LIC debt.

- No specific interventions to prevent aggressive litigation against HIPCs have been taken.

II. IMPROVED EFFECTIVENESS OF SUPPORT TO DEVELOPING COUNTRIES

7. MORE EFFECTIVE EU AID

- On Ownership. Denmark supported country ownership in 2010 through consultation and coordination with partner countries and by supporting partner capacity development.

- On Conditionality. Denmark has carried out the following actions on conditionalities in 2010: harmonisation with other donors and making conditionalities public.

- On Transparency and Predictability. Denmark publicly discloses information on aid volume on central and field office websites.

- On Alignment. Denmark has integrated the principles of the Code of Conduct on Complementarity and Division of Labour in strategies, staff guidance and programming processes/guidelines.

- On Harmonisation. Denmark has arrangements in place for delegated cooperation. Denmark was approved to administer EC funds in the indirect centralised management mode, i.e. delegated cooperation in 2010. Denmark subscribes to the Nordic Plus principles for delegated cooperation, where Nordic Plus countries have agreed to mutually approve each other as potential partners for delegated co-operation arrangements. There is no mechanism in place at headquarters level to track cases of delegated cooperation.

- On Mutual Accountability. Denmark has established a joint framework for monitoring joint commitments in priority countries.

- On Managing for Development Results. Denmark provides capacity support for Managing for Development Results.

8. SUPPORTING BETTER GLOBAL GOVERNANCE

- Denmark believes that the EU27 should speak with one voice in the IMF, World Bank, the main multilateral development banks' governing bodies and the G20.

ESTONIA

POLICY FRAMEWORK

Estonian Development Cooperation started in 1997, with budget allocation since 1998. Estonian objectives and priorities for development co-operation policy are outlined in the "Principles of Estonian Development Cooperation” approved by the Riigikogu (Parliament) in January 2003 as a successor of the previous policy document "Principles of Development Cooperation for the Years 1999-2000”.

The Ministry of Foreign Affairs[18] is responsible both for programming and for implementation of the development cooperation policy. Other governmental agencies implement specific projects in the scope of their competence. In January 2011, the Estonian Government approved Strategy for Estonian development cooperation and humanitarian aid for 2011-2015 and the implementation plan of the development plan for the years 2011-2012[19]. Detailed information on Estonia's bilateral development cooperation activities is available on the dedicated Ministry of Foreign Affairs website[20].

I. INCREASING FINANCIAL RESOURCES FOR DEVELOPMENT AND GLOBAL CHALLENGES

1. IMPROVING DOMESTIC RESOURCE MOBILISATION

- Support to reform programmes for capacity development of customs, judiciary and tax administrations in developing countries: Estonia provides aid in these fields EU Neighbourhood Policy countries (support to: Tax Administrations and Ministries of Finance).

- Support to promote good governance in tax matters: Yes

- Bilateral Tax Information Exchange Agreements and Double Taxation Conventions since 2010: N/A

- State of ratification of/adherence to international conventions/initiatives on tax issues:

· United Nations Convention against Corruption (Merida): Yes

· OECD Convention on Combating Bribery of Foreign Officials

in International Business Transactions: Yes

· Stolen Assets Recovery initiative (STAR): No

· Extractive Industry Transparency Initiative (EITI): No

· IMF Regional Technical Assistance Centres: No

· International Tax Dialogue: No

· International Tax Compact: No

· African Tax Administration Forum (ATAF): No

· Centro Inter-Americano de Administraciones Tributarias (CIAT): No

· IMF Topical Trust Fund on Tax policy and administration: No

2. SCALING UP ODA

– Estonia's ODA/GNI was 0.10% in 2010, the same as in 2009, with a nominal increase of EUR 1 million to EUR 14 million of ODA (preliminary). This falls short of the 2010 target of 0.17%, which the government has set as the minimum target for 2015.

– Share of debt relief in ODA: N/A

ODA Individual commitments and gap to target

Source: OECD/ DAC data for 1995 – 2010; Commission simulation based on information provided by EU Member States or based on agreed EU commitments for 2010 and 2015. ODA in current prices.

- "Realistic, verifiable actions for meeting individual ODA commitments until 2015" taken in 2010: Estonia is striving for the 0,33% margin by having fixed a minimum level contribution in the 2011-2015 Strategy, which will be subject to yearly updates and possible upward corrections depending on the economic situation.

- No direct measures taken or planned to contribute to the EU27 target to channel at least 50% of EU collective ODA increase to Africa. With the increasing EU support to Africa, indirectly the share of Africa in Estonian ODA will increase as well. From 2011 Estonia also will contribute to the 10th EDF (European Development Fund).

- Estonia will not reach the target of 0.15%-0.20% ODA/GNI to LDCs by 2010 and onwards

3. SUPPORT FOR/ USE OF INNOVATIVE SOURCES AND MECHANISMS OF FINANCING DEVELOPMENT

- Innovative source of financing: ETS auctioning revenues

- Estonia needs to analyse the merits of innovative financing mechanisms with regard to the volume of Estonian aid.

4. LEVERAGING PRIVATE FLOWS FOR DEVELOPMENT

Support to private investment in developing countries:

- Financial tools to support private investment

· Investment guarantees: Yes

· Improvement of the overall banking system: No

· Microfinance/ access to financial services: No

· Risk management initiatives: No

· Blending: Yes

· Private public partnerships: No

· Business and investment climate: Yes

· Investment facilities: No

· Export credits: No

- Estonia does not promote the adoption of internationally agreed principles and standards on Corporate Social and Environmental Responsibility by European companies.

- No new initiatives were started in 2010 to include social and environmental clauses in ODA-financed public procurement.

- Estonia did not implement solutions internally or in cooperation with third countries to overcome barriers to migrants to financial services. The small amount of migrants is the main reason why the flow of funds from migrant workers back to their families in their countries of origin has no dominant role in Estonian remittance market

- Estonia implemented the "General Principles for International Remittances Services" agreed by the Committee on Payments and Settlements Systems (CPSS). No other initiative as Estonia already has a safe and enforceable regulatory environment for the money remittance market (implementation of the PSD in the beginning of 2010 , the Estonian Anti-Money Laundering and Terrorist Financing Prevention Act …)

- Estonia has robust and reliable data concerning the amounts and destination of remittances from Estonia. Furthermore, Estonia adopted the operational definitions, recommendations and best practices on improving the quality and coverage of data on remittances according to the compilation guide drafted by the "Luxembourg Group".

5. AID FOR TRADE

Estonia, AfT Commitments (in EUR thousands)

Source: OECD CRS Database (latest update)

6. REDUCING THE DEBT BURDEN OF DEVELOPING COUNTRIES

- Estonia delivered on its HIPC/ MDRI commitments (including vis-à-vis IDA/ AfDB) without delay

- Actions/steps taken in 2010 to help restore and preserve debt sustainability in low-income countries: increasing our contribution to the IDA by 41.1%.

- Estonia does not favour reform of the international architecture for restructuring of sovereign debts

- No specific intervention to prevent aggressive litigation against HIPCs (in particular to prevent the actions of "vulture funds").

II. IMPROVED EFFECTIVENESS OF SUPPORT TO DEVELOPING COUNTRIES

7. MORE EFFECTIVE EU AID

- On Ownership. In 2010, Estonia supported ownership through consultations and coordination with partner countries, through guidance and incentives for staff in partner countries, and through partner capacity development

- On Conditionality. No Action

- On Transparency and Predictability. Estonia publicly discloses information on aid volumes through the Estonian Development Cooperation web site [21]

- On Alignment. Estonia partially integrated the principles of the Code of Conduct on Complementarity and Division of Labour in its development strategy.

- On Harmonisation. Legal and/or administrative arrangements to ensure delegated cooperation are project based.

- On Mutual Accountability. No joint framework for monitoring joint commitments. Mutual accountability is somewhat covered through the cooperation agreements with the priority target countries since 2011

- On Managing for Development Results. Belgium does not provide capacity building support for this.

8. SUPPORTING BETTER GLOBAL GOVERNANCE

- Position on improving the voice of the EU and its Member States within International Financial Institutions. Estonia supports a single EU Chair for the IMF in order for the EU27 to speak with one voice. Shareholders have sometimes different perspectives to certain issues, so "one voice" would probably be going too far and everything does not need to be intra-EU coordinated. In some areas the EU common statements or position papers are of course useful or even necessary. Generally the EU27 has a well-functioning internal coordination of views on main IMF policy issues; similar coordination could be replicated in other IFIs if current coordination is viewed unsatisfactory in producing a coordinated understanding. As European countries belong to different constituencies at the IMF/WB/other MDBs, the strengthened coordination is the best way to increase the cohesiveness of the EU voice in the IFIs.

- Estonia favours stronger Brussels based coordination on issues related to the World Bank and MDBs.

EUROPEAN COMMISSION

AT A GLANCE

POLICY FRAMEWORK

Since 2006, the "European Consensus on Development"[22] has defined the general framework for the action of the Union and Member States. It highlights the Commission’s dual development role by clarifying its added value in relation to the Member States (its federating role) and by elaborating in its role as a donor. In addition, the Union is particularly committed to honouring the United Nations Millennium Development Goals (MDG), for which the Union has put in place various instruments that will also help reinforce the impact of its action[23]. In January 2011, the European Commission merged EuropeAid and the Directorate-General for Development to create the EuropeAid Development and Cooperation Directorate-General. The goal of the merger is to create a single voice for the EU on development and cooperation issues.

I. INCREASING FINANCIAL RESOURCES FOR DEVELOPMENT AND GLOBAL CHALLENGES

1. IMPROVING DOMESTIC RESOURCE MOBILISATION

- Support to reform programmes for capacity development of customs, judiciary and tax administrations in developing countries: European Commission provides aid in these fields to EU candidate countries, EU Neighbourhood Policy countries, Asia, Latin America and ACP Countries (support to administrations and policy of: Customs, Semi-autonomous Revenue Authorities and Ministries of Finance). In March 2011, the European Parliament adopted two resolutions urging the European Union to impose a financial transaction tax and give more tax-related development assistance to developing countries while combating fraudulent practices and tax evasion[24].

- Support to promote good governance in tax matters: Yes

- Bilateral Tax Information Exchange Agreements and Double Taxation Conventions since 2010: N/A. The specific issue as such is not relevant for the Commission since such bilateral agreements are concluded at Member State level as they fall within Member States' competence. However, it should be noted that the EU does have agreements with five third countries on the taxation of savings income.

- State of ratification of/adherence to international conventions/initiatives on tax issues:

· United Nations Convention against Corruption (Merida): No

· OECD Convention on Combating Bribery of Foreign Officials

in International Business Transactions: No

· Stolen Assets Recovery initiative (STAR): Yes

· Extractive Industry Transparency Initiative (EITI): Yes

· IMF Regional Technical Assistance Centres: Yes

· International Tax Dialogue: Yes

· International Tax Compact: No

· African Tax Administration Forum (ATAF): Yes

· Centro Inter-Americano de Administraciones Tributarias (CIAT): No

· IMF Topical Trust Fund on Tax policy and administration: No

2. SCALING UP ODA

ODA Individual commitments and gap to target

- The EU institutions do not have a specific ODA targets, majority of the funds reported as ODA by the Commission are imputed to Member States.

- The EU institutions spent EUR 9804 million of ODA in 2010, a 0.8% increase in real terms on the 2009 figure of EUR 9654 million.

EU institutions' ODA in nominal terms

Source: OECD/DAC data for 2000-2010

3. SUPPORT FOR/ USE OF INNOVATIVE SOURCES AND MECHANISMS OF FINANCING DEVELOPMENT

- The European Commission intends to step up efforts for innovative financing mechanisms with significant revenue generation potential, with a view to ensuring predictable financing for sustainable development. At the Foreign Affairs Council (Defence & Development) in December 2010, the Council discussed innovative financing sources and mechanisms for development. The Commission stated that it would continue its work on the technical feasibility of such mechanisms and their potential impact.

- The Commission conducted an impact assessment on new financial sector taxes (notably a Financial Transaction Tax and a Financial Activities Tax) which was published on March 2011. Revenues from such taxes could be used to respond to global and European challenges, such as development and the achievement of the MDGs, as well as efforts to tackle climate change

4. LEVERAGING PRIVATE FLOWS FOR DEVELOPMENT

Support to private investment in developing countries:

- Financial tools to support private investment

· Investment guarantees: Yes

· Improvement of the overall banking system: Yes

· Microfinance/ access to financial services: Yes

· Risk management initiatives: Yes

· Blending: Yes

· Private public partnerships: No

· Business and investment climate: Yes

· Investment facilities: Yes

· Export credits: No

- The European Commission promotes the adoption of internationally agreed principles and standards on Corporate Social and Environmental Responsibility by European companies. The Commission intends to continue to promote CSR and other sustainability oriented scheme as a voluntary concept, with an emphasis on dialogue between stakeholders. It promotes international benchmarks for CSR such as the UN MDGs, the ILO tripartite declaration of principles, the OECD guidelines for multinational enterprises, the UN principles for sustainable investment and the UN Global Compact. The EU also aims include sustainable development chapters, with provisions on environment and labour, in all bilateral trade agreements.

- The European Commission supports the Kimberley process and the FAO Code of Conduct for Responsible Fisheries.

- No new initiatives were started in 2010 to include social and environmental clauses in ODA-financed public procurement.

- The European Commission did not implement solutions internally or in cooperation with third countries to overcome barriers to migrants and their families' access to financial services. The Commission is, though, implementing programmes in partner countries with the aim of developing the financial sector (e.g. microfinance, technical assistance on financial sector regulation and supervision) and improving financial literacy in order to familiarise households receiving remittances with banking services.

5. AID FOR TRADE

European Commission, AfT Commitments (in EUR thousands)

Source: OECD CRS Database (latest update)

6. REDUCING THE DEBT BURDEN OF DEVELOPING COUNTRIES

- The European Commission delivered on its HIPC/ MDRI commitments (including vis-à-vis IDA/ AfDB) without delay.

- Actions/steps taken in 2010 to help restore and preserve debt sustainability in low-income countries: committing EUR 3 Million for the WB DMF and EUR 3 Million to the UNCTAD DMFAS. Financing agreements should be signed early 2011.

- The European Commission favours reform of the international architecture for restructuring of sovereign debts in order to deal with potential future cases of debt distress in low-income countries (through the Paris Club with a role for International Financial Institutions, and through collective action clauses in debt contracts).

- Specific intervention to prevent aggressive litigation against HIPCs (in particular to prevent the actions of "vulture funds"): The European Commission is considering using the "African Legal Support Facility" to provide ad hoc legal advice, on demand, to countries.

II. IMPROVED EFFECTIVENESS OF SUPPORT TO DEVELOPING COUNTRIES

7. MORE EFFECTIVE EU AID

- On Ownership. In 2010, the European Commission supported ownership through consultations and coordination with partner countries and through partner capacity development.

- On Conditionality. In 2010, the European Commission progressed by harmonising conditionalities with other donors and by reducing the number of conditionalities.

- On Transparency and Predictability. The European Commission publicly discloses information on aid volumes through its Development Cooperation web site [25] and through the website of field offices. Data are also available in the Annual Report on development policies and external assistance which is widely disseminated (to Delegations, national development agencies, Parliaments and ministers, stakeholders, etc.).

- On Alignment. The European Commission partially integrated the principles of the Code of Conduct on Complementarity and Division of Labour in its development strategy.

- On Harmonisation. Guidelines have been developed in December and templates for Delegation and Transfer Agreements have been approved in and further fine tuned the past years.

- On Mutual Accountability. The European Commission established a joint framework for monitoring joint commitments with some of its priority countries. The European Commission is waiting for the Paris Survey outcome to confirm its position.

- On Managing for Development Results. The European Commission provides capacity building support for this.

8. SUPPORTING BETTER GLOBAL GOVERNANCE

- Position on improving the voice of the EU and its Member States within International Financial Institutions. The European Commission is in favour of an EU single seat in the IFIs as a long term ultimate objective to represent the European Union with a single voice. The European Commission have been giving support to this solution for years (as reflected in several official Commission's documents, such as written statements by Commissioners L. Michel and P. Nielson and the Council's conclusions on Monterrey or the report "EMU at 10"). There is work to do to deepen and broaden the coordination between EU Member States, in order to strengthen Europe's voice in the IFIs though a consolidated and less fragmented European representation. However, the Commission warns against rushing into intermediate solutions, and instead favours a package-based approach to such issues.

- The European Commission favours stronger Brussels based coordination on issues related to the World Bank and MDBs.

FINLAND

AT A GLANCE

POLICY FRAMEWORK

Finland’s development co-operation is based on annual state budgets and guiding documents rather than being enshrined in law.[26] The current overarching strategic document is a government resolution on development policy from October 2007.[27] In it the government states that it will ensure that Finland’s ODA reaches 0.51% of GNI in 2010 and 0.7% in 2015. Poverty reduction is the overall objective, but there is no particular sectoral focus. Finland has eight long-term partner countries and five partner countries recovering from violent crises.[28] Finland’s development policy is formulated, planned and implemented by the Ministry for Foreign Affairs.[29]

I. INCREASING FINANCIAL RESOURCES FOR DEVELOPMENT AND GLOBAL CHALLENGES

1. IMPROVING DOMESTIC RESOURCE MOBILISATION

- Support to reform programmes for capacity development of custom, judiciary and tax administrations in developing countries: Finland provides support to developing countries' tax policy and administration to ministries of finance in ACP countries. In addition, support is provided to national governments, audit institutions and civil society organisations to strengthen public financial management.

- Promotes the principles of good governance in tax matter: Yes, in budget support dialogue.

- New Bilateral Tax Information Exchange Agreements and Double Taxation Conventions of 2010: None

- State of ratification of/ adherence to international conventions/ initiatives on tax issues:

· IMF Regional Technical Assistance Centres: No

· International Tax Dialogue: No

· International Tax Compact: No

· African Tax Administration Forum (ATAF): No

· Centro Inter-Americano de Administraciones Tributarias (CIAT): No

· IMF Topical Trust Fund on Tax policy and administration: No

· United Nations Convention against Corruption (Merida): Yes

· OECD Convention on Combating Bribery of Foreign Officials in International Business Transactions: Yes

· Stolen Assets Recovery initiative (STAR): No

· Extractive Industry Transparency Initiative (EITI): Yes

2. SCALING UP ODA

ODA individual commitments/gap to agreed targets

- Finland spent EUR 1008 million on ODA in 2010 (preliminary), a 6.9% increase in real terms compared to 2009,i.e. 0.55% of its GNI, up from 0.54% in 2009.

- Debt relief made up only 3% of Finnish ODA during the period 2004 - 2009

Source: OECD/ DAC data for 1995 – 2010; Commission simulation based on information provided by EU Member States or based on agreed EU commitments for 2010 and 2015. ODA in current prices.

Finland - Share of debt relief in ODA volumes

Source: OECD/DAC data for 2002-2010

- "Realistic, verifiable actions for meeting your individual ODA commitments until 2015" taken in 2010: The Finnish Development Policy Programme, i.e. Government Decision-in-Principle, stated the commitment to ensuring the development cooperation appropriations which will take Finland towards 0.7% GNI set by the UN and that Finland is committed to achieve the target 0.51% in 2010 as established in the European council’s decision. The Ministry for Foreign Affairs has based its forward planning on that commitment. However, the figures indicated above as total ODA are based on the budgetary spending limits for the MFA of Finland exercised development assistance that were set by the Government for the years 2011-2014, adding to it an estimate of the ODA implemented by other ministries. According to the Government decision of the spending limits for 2011-2014 (March 2010) Finland’s ODA will increase up to 0.58% of GNI in 2011. In the Government decision considering the years 2012-2014 a technical assumption is made that the percentage value of 0.58% remains. However, in the Government decision it is stated that Finland is committed to increasing ODA towards the 0.7% target. Finland holds parliamentary elections in April 2011 and the next government will decide on spending limits for 2012-2015. The spending limits will be reviewed during inter-ministerial budget frame negotiations and confirmed through a Government decision in autumn 2011.

- In budgeting at least 50% of Finland’s development aid which is targeted by country or region will be allocated to Africa.

- Finland will meet the target of 0.15%-0.20% ODA/GNI to LDCs by 2010 and onwards.

3. SUPPORT FOR/ USE OF INNOVATIVE SOURCES AND MECHANISMS OF FINANCING DEVELOPMENT

- Finland does not support any innovative financing mechanisms and has no plans to do so.

- However, Finland supports the EU proposal to make a comprehensive assessment of the feasibility of a Financial Activity Tax (FAT) and Financial Transactions Tax (FTT). Finland also recognises that it is essential to study further innovative financing mechanisms in the context of reaching its ODA target, since public aid will not be enough. Finland’s Minister for Foreign Trade and Development set up a Working Group on Financing for Development in April 2010. The WG handed over the report to the Minister in December 2010. The WG gave recommendations for the Finnish Government on how to expand the base of development funding and enhance cooperation among various actors in society.

4. LEVERAGING PRIVATE FLOWS FOR DEVELOPMENT

Support to private investment in developing countries:

Foreign Direct Investment

Source: OECD/ DAC

- Financial tools to support private investment:

· Investment guarantees: Yes

· Improvement of the overall banking system: Yes

· Microfinance/ access to financial services: Yes

· Risk management initiatives: Yes

· Blending: No

· Private public partnerships: Yes

· Business and investment climate: Yes

· Investment facilities: Yes

· Export credits: Yes

- Finland promotes the adoption of internationally agreed principles and standards on Corporate Social and Environmental Responsibility by European companies. Finland promotes CSER principles in its cooperation with the private sector, most notably as eligibility criteria of Finnpartnership. Finland also supports the UN Global Compact with ODA funds to the amount of EUR 200,000 per year (latest contribution in 2010).

- Finland has ratified the agreement of the Kimberley Process and participates in the Kimberley Process as a Member State of the European Union. Finland supports the EITI Multi-Donor Trust Fund to the amount of EUR 1.3 million during 2009–2011

- New initiatives in relation to including social and environmental clauses in ODA-financed public procurements: Social and environmental aspects are included in development of new case management process software within the Ministry for Foreign Affairs.

- Finland has currently no plans to implement solutions internally or in cooperation with third countries to overcome barriers to migrants and their families' access to financial services. The share of remittance services of the overall payment transmission from Finland is minor, the bulk of payments are transferred via banking channels. Furthermore, there are no indications that the current payment services would not satisfy the needs of migrants. Thus, no further action is considered necessary.

- Finland has not implemented the General Principles for International Remittances Services" agreed by the Committee on Payments and Settlements Systems (CPSS).

5. AID FOR TRADE

Finland, AfT Commitments (EUR million)

Source: OECD CRS Database (latest update)

6. REDUCING THE DEBT BURDEN OF DEVELOPING COUNTRIES

- Finland has delivered on its commitments to the HIPC and MDRI initiatives, including commitments towards IDA and the African Development Bank.

- Finland sees no need for reform of the international architecture for the restructuring of sovereign debts.

- Finland has planned no specific interventions to prevent aggressive litigation against HIPCs.

II. IMPROVED EFFECTIVENESS OF SUPPORT TO DEVELOPING COUNTRIES

7. MORE EFFECTIVE EU AID

- On Ownership. Finland supported country ownership in 2010 through consultation and coordination with partner countries, guidance and incentives for staff in partner countries and by supporting partner capacity development.

- On Conditionality. Finland has carried out the following actions on conditionalities in 2010: harmonisation with other donors and making conditionalities public.

- On Transparency and Predictability. Finland publicly discloses information on aid volume on the internet both at headquarters and at the field level. Disclosure of information at country level depends on the existence of an appropriate common database. When such a mechanism exists, data is provided (e.g. public webpage www.odamoz.org.mz in Mozambique, local Ministry homepages in Kenya). The Ministry for Foreign Affairs launched in December 2010 a publication on Finland’s ODA statistics, which serves to provide information to domestic stakeholders on the use of public ODA.

- On Alignment. Finland has partially integrated the principles of the Code of Conduct on Complementarity and Division of Labour in strategies, staff guidance and programming processes/guidelines. The Ministry for Foreign Affairs is currently revising the cooperation manuals and guidelines.

- On Harmonisation. Within the Nordic Plus group, arrangements are in place to enable delegated cooperation. As regards the EC, Finland’s assessment procedure for indirect centralised management was finalised in June 2010, providing a framework for cooperation between the MFA and the EC in this regard. There is a mechanism in place to track cases of delegated cooperation. The following list covers the delegated cooperation arrangements, whereby other donors’ funds are included into MFA/Finland’s ODA budget for 2010:

- On Mutual Accountability. Finland has established a joint framework for monitoring joint commitments in Kenya, Mozambique, Nicaragua, Tanzania and Zambia.

- On Managing for Development Results. Finland provides capacity support for Managing for Development Results.

8. SUPPORTING BETTER GLOBAL GOVERNANCE

- Finland does not share the view that EU27 should speak with one voice in the IMF, World Bank and the main multilateral development banks' governing bodies, since the current governance system based on constituency groups, some of which consist of both EU and non-EU countries, does not favour such an objective.

- Finland supports stronger Brussels based coordination on a regular basis on issues related to the World Bank and MDBs.

FRANCE

AT A GLANCE

POLICY FRAMEWORK

Responsibilities and tools are shared among the three main players: The Directorate-General for International Co-operation and Development (DGCID) of the Ministry of Foreign and European Affairs (MAEE), the Directorate-General of the Treasury and Economic Policy (DGTPE) which of the Ministry of Economy, Finance and Employment (MINEFE) and the French Development Agency (AFD), a government agency that reports to these two ministries; in addition there are several entities and co-ordination structures to ensure overall coherence. The DGTPE has institutional responsibility for the multilateral development banks and certain thematic funds, while the MAEE manages funds earmarked for United Nations institutions and health sector funds.

AFD Group’s three-year Business Plan for 2011-2013 is in line with France’s new budget framework, which now presents State missions, including official development assistance (ODA), for a three-year period. This ensures greater visibility for France’s aid. This Business Plan is based on the forecasts of the three-year Finance Law for 2011-2013[30].

The CICID (Comité interministériel de la Coopération internationale et du Développement or French Interministerial Committee for International Cooperation and Development) defines the sector strategic orientations of France’s public economic development assistance policy and geographic priorities. The CICID meeting on June 5th, 2009 voted a set of measures designed to improve French assistance’s effectiveness and targeting in a context marked by the contagion of the global crisis’ effects on countries in development[31].

I. INCREASING FINANCIAL RESOURCES FOR DEVELOPMENT AND GLOBAL CHALLENGES

1. IMPROVING DOMESTIC RESOURCE MOBILISATION

- Support to reform programmes for capacity development of customs, judiciary and tax administrations in developing countries: France provides aid in these fields to EU candidate countries, EU Neighbourhood Policy countries, Asia, Latin America and ACP Countries (support to administrations and policy of: Customs, Semi-autonomous Revenue Authorities and Ministries of Finance).

- Support to promote good governance in tax matters: Yes

- Bilateral Tax Information Exchange Agreements and Double Taxation Conventions since 2010: (i) Double Taxation Conventions signed with Uruguay, Antigua and Barbuda, Grenada, St Kitts et Nevis, St Lucia, Saint-Vincent et Grenadines, Antilles néerlandaises, Cook Islands, Belize, Costa Rica, Dominique, Brunei, Anguilla, Hong Kong ; (ii) under negotiation with Aruba, Liberia, (iii) planned with Philippines, Nauru.

- State of ratification of/adherence to international conventions/initiatives on tax issues:

· United Nations Convention against Corruption (Merida): Yes

· OECD Convention on Combating Bribery of Foreign Officials

in International Business Transactions: Yes

· Stolen Assets Recovery initiative (STAR): Yes

· Extractive Industry Transparency Initiative (EITI): Yes

· IMF Regional Technical Assistance Centres: Yes

· International Tax Dialogue: Yes

· International Tax Compact: Yes

· African Tax Administration Forum (ATAF): Yes

· Centro Inter-Americano de Administraciones Tributarias (CIAT): Yes

· IMF Topical Trust Fund on Tax policy and administration: Yes

2. SCALING UP ODA

ODA Individual commitments and gap to target

- France has increased the share of its GNI dedicated to Official Development Assistance (ODA) from 0.47% of GNI in 2009 to EUR 9751 million (preliminary), i.e. 0.50% in 2010, nearly meeting the EU target.

- Debt relief made up 25% of French ODA during the period 2004 – 2009, the largest debt reduction operations being for Nigeria (2005-2006) and Iraq (2005-2008).

Source: OECD/ DAC data for 1995 – 2010; Commission simulation based on information provided by EU Member States or based on agreed EU commitments for 2010 and 2015. ODA in current prices.

France - Share of debt relief in ODA volumes

Source: OECD/DAC data for 2002-2010

- "Realistic, verifiable actions for meeting your individual ODA commitments until 2015" taken in 2010: None.

- In 2009, ODA (bilateral and multilateral) attributed to Africa has increased and represents 55.8% of total net ODA. France has formally reaffirmed its commitment to Africa, during the meeting of the Interministerial Committee for International Cooperation and Development. The 14 priority countries for the geographic concentration of French Aid are all sub-Saharan countries: these countries will receive 50% of grants allocated to helping to achieve the MDGs (not including interventions in countries emerging from crisis and subsidies).

- France will not meet the target of 0.15%-0.20% ODA/GNI to LDCs by 2010 and onwards, though total French ODA (bilateral and multilateral) for LDCs has increased from 0.11% in 2008 to 0.12% of GNI in 2009 and 0.13% in 2010.

3. SUPPORT FOR/ USE OF INNOVATIVE SOURCES AND MECHANISMS OF FINANCING DEVELOPMENT

– Innovative source of financing: Airline Ticket Tax/contribution, ETS auctioning revenues, International Financing Facility for Immunisation (IFFIm), Advance Market Commitments (AMCs), Debt2Health

– France intends to step up efforts for innovative financing mechanisms with significant revenue generation potential. Among the avenues explored by the Leading Group on Innovative Financing (63 countries and the European Commission), France supports the idea of taxing financial transactions [32]. Next steps: UN, G20 and Europe.

– Further work on innovative financing mechanism: One of the challenges is to distinguish between technical issues and political opportunity. The Leading Group has entrusted a study on activities that have benefited from globalisation in order to determine how such activities can contribute to Development.

4. LEVERAGING PRIVATE FLOWS FOR DEVELOPMENT

Support to private investment in developing countries:

Foreign Direct Investment:

Source: OECD/ DAC

- Financial tools to support private investment

· Investment guarantees: Yes

· Improvement of the overall banking system: Yes

· Microfinance/ access to financial services: Yes

· Risk management initiatives: Yes

· Blending: Yes

· Private public partnerships: Yes

· Business and investment climate: Yes

· Investment facilities: Yes

· Export credits: Yes

- France promotes the adoption of internationally agreed principles and standards on Corporate Social and Environmental Responsibility by European companies. France supports initiatives such as the Global Compact, the recently adopted ISO 26000, or the EITI in the mining industry and mining. France is implementing the OECD guidelines for multinational companies. France promotes the adoption of regional/ sectoral commitments such as the Declaration adopted by African and French companies after the France-Africa Summit of 2010.

- No new initiatives were started in 2010 to include social and environmental clauses in ODA-financed public procurement

- France has implemented solutions internally or in cooperation with third countries to overcome barriers to migrants and their families' access to financial services. Though there are no monitoring indicators for measuring the impact of these solutions on migrants' access to financial services, remittance transfer costs and remittance transfers volumes.

- France implemented the "General Principles for International Remittances Services" agreed by the Committee on Payments and Settlements Systems (CPSS). In the meanwhile, France does not have robust and reliable data concerning the amounts and destination of remittances from France

5. AID FOR TRADE

France, AfT Commitments (in EUR thousands)

Source: OECD CRS Database (latest update)

6. REDUCING THE DEBT BURDEN OF DEVELOPING COUNTRIES

- France delivered on its HIPC/ MDRI commitments (including vis-à-vis IDA/ AfDB) without delay

- Actions/steps taken in 2010 to help restore and preserve debt sustainability in low-income countries: implementing a lending policy that respects existing international commitments to maintain a sustainable medium-term debt of recipient countries (under the Debt Sustainability IMF and the World Bank, Principles and Guidelines OECD on export credit sustainable). France also supports international efforts to improve debt management by Developing Countries (such as the African Legal Support Facility and the DMFAS Programme, UNCTAD)

- France favours reform of the international architecture for restructuring of sovereign debts in order to deal with potential future cases of debt distress in low-income countries (through the Paris Club with a role for International Financial Institutions, and through collective action clauses in debt contracts)

- Specific interventions to prevent aggressive litigation against HIPCs (in particular to prevent the actions of "vulture funds"): No.

II. IMPROVED EFFECTIVENESS OF SUPPORT TO DEVELOPING COUNTRIES

7. MORE EFFECTIVE EU AID

- On Ownership. In 2010, France supported ownership through consultations and coordination with partner countries in particular through the Partnership Framework Document (DCP)

- On Conditionality. In 2010, France progressed by reducing the number of conditionalities.

- On Transparency and Predictability. France publicly discloses information on aid volumes through the site "performance-publique.gouv" providing the citizen all budget documents, including the Policy Document section on French politics for development (inc. ODA forecasts 2011-2013) [33]

- On Alignment. France partially integrated the principles of the Code of Conduct on Complementarity and Division of Labour in its development strategy.

- On Harmonisation. The French Development Agency (AFD) was certified in June 2009 with the European Commission to qualify for management delegations of the European Commission. At the end of November 2010, eleven management delegations were in progress for the benefit of the AFD, for a total of EUR 53,9 million. The funds were disbursed for five of them in a variety of sectors and countries: Mali agriculture, food security in Haiti and Senegal, to support the Economic Partnership Agreements (EPAs) in Senegal…

- On Mutual Accountability. France established a joint framework for monitoring joint commitments.

- On Managing for Development Results. France does not provide capacity building support for this.

8. SUPPORTING BETTER GLOBAL GOVERNANCE

- Position on improving the voice of the EU and its Member States within International Financial Institutions. France does not support a single EU Chair for the IMF in order for the EU27 to speak with one voice.

- France favours stronger Brussels based coordination on issues related to the World Bank and MDBs

GERMANY

AT A GLANCE

POLICY FRAMEWORK

Germany’s development co-operation policy is underpinned by the budgetary procedure (in particular the budget act passed by the Bundestag each year) and the Coalition Agreement that covers each legislative period.[34] The latest Coalition Agreement (2009) defines the following key sectors for German development cooperation: good governance, education and training, health, rural development, protection of the climate, the environment and natural resources, and economic cooperation.[35] The Agreement expresses a willingness to work towards achieving the 0.7% ODA/GNI target. Policy making and oversight of German development cooperation is vested in the Federal Ministry for Economic Co-operation and Development (BMZ), with implementation carried out by a range of different ministries, federal states (Länder), agencies and organisations. The government intends to carry out organisational and structural reforms of the German aid structure, a first step being the consolidation of German technical cooperation organisations[36].

I. INCREASING FINANCIAL RESOURCES FOR DEVELOPMENT AND GLOBAL CHALLENGES

1. IMPROVING DOMESTIC RESOURCE MOBILISATION

- Support to reform programmes for capacity development of custom, judiciary and tax administrations in developing countries: Germany provides support to developing countries' tax policy and administration, tax consultancy, tax procedures, exchange of information, double taxation agreements, tax harmonisation in EU candidate countries, Asia, Latin America and ACP countries. Supported administrations include customs, revenue authorities, ministries of finance and regional fora including the African Tax Administration Forum (ATAF), EAC, ECOWAS, OLACEFS (Organization of Latin American and Caribbean Supreme Audit Institutions), ECLAC (United Nations Economic Commission for Latin America and the Caribbean). In addition, support is provided to national parliaments, governments, audit institutions, civil society organisations and regional organisations to strengthen public financial management.

- Promotes the principles of good governance in tax matter: Yes

- New Bilateral Tax Information Exchange Agreements and Double Taxation Conventions of 2010: Current information concerning TIEAs and DTCs – not only with developing countries – is regularly published in the official German Federal Law Gazette (Bundesgesetzblatt).

- Support to/ratification of/adherence to international conventions/initiatives on tax issues:

· IMF Regional Technical Assistance Centres: Yes

· International Tax Dialogue: Yes

· International Tax Compact: Yes

· African Tax Administration Forum (ATAF): Yes

· Centro Inter-Americano de Administraciones Tributarias (CIAT): Yes

· IMF Topical Trust Fund on Tax policy and administration: Yes

· South-South Sharing of Successful Tax Practices (S4TP): Yes

· United Nations Convention against Corruption (Merida): Yes

· OECD Convention on Combating Bribery of Foreign Officials in International Business Transactions: Yes

· Stolen Assets Recovery initiative (STAR): No

· Extractive Industry Transparency Initiative (EITI): Yes

· OECD Convention on Combating Bribery of Foreign Officials in International Business Transactions: Yes

2. SCALING UP ODA

ODA individual commitments/gap to agreed targets

- Germany is working towards the goal of meeting the 2015 0.7% ODA/GNI target according to the latest Coalition Agreement (2009). spent EUR 9606 million (preliminary), reaching 0.38% in 2010 compared to 0.35% in 2009, a 9.9% increase in real terms compared to 2009.

- Debt relief made up 21% of German ODA during the period 2004 – 2009, fourth highest among Member States.

Source: OECD/ DAC data for 1995 – 2010; Commission simulation based on information provided by EU Member States or based on agreed EU commitments for 2010 and 2015. ODA in current prices.

Germany Share of debt relief in ODA volumes

Source: OECD/DAC data for 2002-2010

- "Realistic, verifiable actions for meeting your individual ODA commitments until 2015" taken in 2010: As part of the budget process for the financial year 2012 and the medium-term financial plan until 2015, the German government will define its intended budgets for development cooperation. Regardless of which the government and parliament will discuss the actual annual budgets 2013-2015 and how to attain the ODA goal in the annual budget processes each year.

- Have you taken or do you plan to take measures to ensure that at least 50% of EU collective aid increases of ODA resources are channelled to Africa? This is a confirmed objective of the German government and is taken into account in the annual allocation of the development cooperation budget.

- It is an objective of the German government to strengthen development cooperation with LDCs, but the ODA share to LDCs depends on the allocation made during the annual budget process.

3. SUPPORT FOR/ USE OF INNOVATIVE SOURCES AND MECHANISMS OF FINANCING DEVELOPMENT

- Germany supports the following innovative financing mechanisms:

· ETS auctioning revenues (EUR 230 million in 2009)

· Debt2Health (EUR 20 million in 2010)

- Germany is open to engaging with IFMs in future. Germany is setting up a new special fund under public law (Sondervermögen “Energie- und Klimafonds”) to finance national and international programmes in the fields of energy efficiency, renewable energies and climate change. The fund is in operation since 2011 onwards, with a smaller amount of funding available from contractually agreed payments by energy utilities. From 2013 onwards, additional revenues from auctioning EU emissions allowances (revenues additional to the level of revenues in 2008 = EUR 915 million; excluding emissions trading in the aviation sector) will be channelled to the special fund. It is expected that hundred million Euros of climate and environment related ODA will be committed annually through this fund from 2013 onwards, subject to parliamentary budget approval. In 2011, EUR 31.5 million will be committed as climate and environment related ODA from this fund.

- Germany is currently considering innovative financing mechanisms that use general budget funds to leverage capital market funds (“blending”) as well as private investors for the benefit of sustainable development.

4. LEVERAGING PRIVATE FLOWS FOR DEVELOPMENT

Support to private investment in developing countries:

Foreign Direct Investment

Source: OECD/ DAC

- Financial tools to support private investment:

· Investment guarantees: Yes

· Improvement of the overall banking system: Yes

· Microfinance/ access to financial services: Yes

· Risk management initiatives: Yes

· Blending: No

· Private public partnerships: Yes

· Business and investment climate: Yes

· Investment facilities: Yes

· Export credits: No

- Germany promotes the adoption of internationally agreed principles and standards on Corporate Social and Environmental Responsibility by European companies. See Box.

Box: German support to Corporate Social and Environmental Responsibility

- Definition of a government CSR Strategy and a CSR Action Plan

- Application of and support to the OECD Guidelines for Multinational Enterprises

- Support to the UN Special Representative for Business and Human Rights, John Ruggie

- Support to the Global Reporting Initiative

- Support to the Business Anti-Corruption Portal

- Technical Cooperation in partner countries concerning the implementation of the UNCAC and the improvement of the framework for CSR.

- Development Partnerships with business companies (develoPPP.de)

- Signatory of the Kimberley process

- New initiatives in relation to including social and environmental clauses in ODA-financed public procurements: None

- Germany has implemented the "General Principles for International Remittances Services" agreed by the Committee on Payments and Settlements Systems (CPSS). In addition, the German government has set up a remittances price comparison website (www.geldtransfair.de) in cooperation with the Frankfurt School of Finance and Management. The objective is the reduction of transfer costs for formal remittances from migrants living in Germany to their countries of origin.

5. AID FOR TRADE

Germany, AfT Commitments (EUR million)

Source: OECD CRS Database (latest update)

6. REDUCING THE DEBT BURDEN OF DEVELOPING COUNTRIES

- Germany has delivered on its commitments to the HIPC and MDRI initiatives, including commitments towards IDA and the African Development Bank.

- Germany would like to see a reform of the international architecture for the restructuring of sovereign debts, based on the Paris Club, IFIs and collective action clauses in debt contracts. The German government supports the creation of a debt workout mechanism and wants to promote any relevant discussions.

- Germany has taken no specific measure to prevent aggressive litigation against HIPCs, but welcomes the activities of the African Legal Support Facility (ALSF).

II. IMPROVED EFFECTIVENESS OF SUPPORT TO DEVELOPING COUNTRIES

7. MORE EFFECTIVE EU AID

- On Ownership. Germany supported country ownership in 2010 through consultation and coordination with partner countries and support to partner capacity development. German development cooperation is based on partner countries’ demands which are expressed in regular bilateral consultations and negotiations.

- On Conditionality. Germany supported harmonisation with other donors in 2010.

- On Transparency and Predictability. Germany publicly discloses information on aid volume on the internet centrally and through some field offices.

- On Alignment. Germany has integrated the principles of the Code of Conduct on Complementarity and Division of Labour in strategies, staff guidance and programming processes/guidelines.

- On Harmonisation. Germany has arrangements in place for delegated cooperation and there is a mechanism in place at headquarters level to track cases of delegated cooperation. Cases of delegated cooperation agreed to in 2010 in table below.

- On Mutual Accountability. Germany has established a joint framework for monitoring joint commitments in Burkina Faso, Ghana, Mali, Malawi, Mozambique, Peru, Zambia, Tanzania and Uganda.

- On Managing for Development Results. Germany provides capacity support for Managing for Development Results.

8. SUPPORTING BETTER GLOBAL GOVERNANCE

- Germany does not share the view that EU27 should speak with one voice in the IMF, World Bank and the main multilateral development banks' governing bodies. Germany believes the EU should speak with one voice according to its responsibilities, such as Art. IV consultations of the EURO AREA; this is ensured through efficient EU coordination within the IMF and the World Bank (regular meetings of all EU Executive Directors (EURIMF meetings)) as well as through close cooperation between the EURIMF and the SCIMF (subcommittee of the EFC) on all relevant EU matters. All other matters outside the responsibility of the EU are represented by each country in its own interest.

- Germany does not support stronger Brussels based coordination on a regular basis on issues related to the World Bank and MDBs.

GREECE

AT A GLANCE

POLICY FRAMEWORK

Greece’s development assistance is guided by five-year Development Cooperation and Assistance Programmes.[37] The financial crisis has caused a fundamental rethink of Greek development activities and a revision of the current five-year programme, which is not yet finalised.[38] The process to achieve international ODA target levels has had to be abandoned.[39] Hellenic Aid, a general directorate within the Ministry of Foreign Affairs, is the coordinating agency of Greek development cooperation. The role of the Ministry of Foreign Affairs in implementation is limited with the bulk of the funds being managed by the Ministry of Economy and Finance for multilateral aid and a larger number of line ministries for bilateral aid.[40]

I. INCREASING FINANCIAL RESOURCES FOR DEVELOPMENT AND GLOBAL CHALLENGES

1. IMPROVING DOMESTIC RESOURCE MOBILISATION

- Greece does not provide support to reform programmes for capacity development of custom, judiciary and tax administrations in developing countries.

- Promotes the principles of good governance in tax matters: N/A

- New Bilateral Tax Information Exchange Agreements and Double Taxation Conventions of 2010: N/A

- State of ratification of/ adherence to international conventions/ initiatives on tax issues: N/A

2. SCALING UP ODA

ODA individual commitments/gap to agreed targets

- Greece spent EUR 378 million on ODA in 2010 (preliminary), corresponding to 0.17% of GNI in 2010, down from 0.19% in 2009. Consequently Greece is far from reaching the 2010 0.51% target.

- No debt relief was included in Greek ODA during the period 2004 – 2009.

Source: OECD/ DAC data for 1995 – 2010; Commission simulation based on information provided by EU Member States or based on agreed EU commitments for 2010 and 2015. ODA in current prices.

Greece - Share of debt relief in ODA volumes

Source: OECD/DAC data for 2002-2010

- "Realistic, verifiable actions for meeting your individual ODA commitments until 2015" taken in 2010: Projected ODA volumes for the years 2011-2015 are not available for the time being since they are pending the 5-year National Development Plan, which is under review because of the financial crisis and budgetary constraints. Greece undertook its international commitments under the supposition that fiscal circumstances would be favourable and would allow for the anticipated significant increase in ODA. However, despite the relevant efforts, the expected increase of ODA proved not to be feasible, due to fiscal restraints. Furthermore, the current international financial crisis had a negative influence on the economic situation of Greece. Consequently, it is not likely that Greece will fulfil its quantitative commitm