Table of Contents

1..... Chapter 1 - Delivering on commitments.. 4

1.1. EU response to world developments in 2013. 4

1.2. Leading the way in development policy. 6

1.2.1. A more strategic approach: implementing the ‘Agenda for Change’ 7

1.2.2. Responding to global challenges and supporting long-term reforms 9

1.2.3. Making a difference: new instruments and aid modalities. 11

1.3. Keeping long-term promises. 14

1.3.1. Progress in achieving the Millennium Development Goals (MDGs) and preparation of the post-MDG framework. 14

1.3.2. Focusing on poverty. 17

1.3.3. Financing for development 19

1.3.4. Policy Coherence for Development and some/selected related policies 20

1.3.5. Strengthening human rights and good governance. 22

1.3.6. Mainstreaming of cross-cutting issues. 23

1.3.7. Cooperation with non-state actors and local authorities. 26

1.3.8. The role of the private sector. 27

1.4. Better and more effective aid. 27

1.4.1. Aid effectiveness and joint programming.. 27

1.4.2. Cooperation with the donor community. 29

1.4.3. Cooperation with international organisations. 29

1.5. Outlook 2014. 32

2..... Chapter 2 - Implementation: geographic overview... 33

2.1. European Neighbourhood and the Middle East 34

2.1.1. European Neighbourhood and Russia. 34

2.1.2. Middle East 46

2.2. Africa and all African, Caribbean and Pacific states (ACP) programmes. 50

2.2.1. Africa-EU Strategic Partnership.. 50

2.2.2. Sub-Saharan Africa. 51

2.2.3. South Africa. 63

2.2.4. Intra-ACP programmes. 65

2.3. Latin America and the Caribbean.. 67

2.3.1. Latin America. 67

2.3.2. Caribbean.. 76

2.4. Asia, Central Asia and the Pacific. 81

2.4.1. Asia. 81

2.4.2. Central Asia. 89

2.4.3. Pacific. 96

2.5. Overseas Countries and Territories (OCTs) 101

3..... Chapter 3 - Implementation: thematic overview... 104

3.1. The thematic programmes. 104

3.1.1. Investing in people. 104

3.1.2. Non-state actors and local authorities in development 106

3.1.3. Migration and asylum... 108

3.1.4. Environment and sustainable management of natural resources including energy. 109

3.1.5. Food security. 112

INTRODUCTION

The European Union (EU) and its Member States as a whole continued to be the largest donor of official development assistance (ODA) during 2013. It collectively provided EUR 56.5 billion which amounted to 52% of the total global ODA during the year. In 2013 the EU committed EUR 14.86 billion on external assistance.

The EU modernised its development cooperation policy by implementing the 'Agenda for Change'[1] e.g. within the development aid programming exercise 2014-2020. As a result the EU will focus its support on countries that are most in need and concentrate activities on maximum 3 sectors per country.The EU will also make increased use of innovative financial instruments and joint programming with EU Member States and other donors.

Progress has been made in the implementation of actions included in the EU Action Plan on Human Rights and Democracy. The EU has continued to actively support civil society organisations and specific human rights dialogues were held with over 20 countries. The EU deployed Election Observation Missions (for example in Kenya, Pakistan and Mali) to supported democracy and democratisation.

Within its Common Security and Defence Policy (CSDP) the EU launched two new missions, the EU Training mission in Mali and EU Border Assistant Mission in Libya. In total, the EU deployed more than 7 000 civilian and military personnel in 2013, in 12 civilian missions and four military operations.

As one of the world's leading humanitarian donors, the EU – its institutions and Member States – has throughout 2013 responded with determination to natural disasters, armed conflicts and protracted crises. The relief assistance provided by the European Commission alone amounted to over €1.3 billion and was implemented in more than 90 countries.

International cooperation is vital in the ever more challenging humanitarian landscape. Embracing the motto ‘Acting together for those in need’, the EU through the Commission is chairing the OCHA Donor Support Group (ODSG) in the period from July 2013 to July 2014. This is an important mechanism for humanitarian donor consultation on the activities of the United Nations’ Office for Coordination of Humanitarian affairs (OCHA).

As a staunch supporter of multilateralism, the EU continued to work towards strengthening the United Nations (UN). The EU continued to focus on the promotion of international peace and security, sustainable development and human rights, democracy and the rule of law, as well as on the improvement of the effectiveness of the UN.

Within the framework on the UN General Assembly (UNGA) the EU contributed actively to several High Level Meetings with an impact on development, notably the Millennium Development Goals (MDGs) Special Event, the High level meeting on Disabilities and Development, the first meeting of the High Level Political Forum (HLPF) of Sustainable Development agreed at Rio+20, and the High Level Meeting on Migration and Development.

In view of the MDGs and reflecting on the post 2015 scenario, the European Commission released ‘A decent life for all: ending poverty and giving the world a sustainable future’[2]. The paper is advocating for a single overarching post 2015 framework bringing together development (MDG process) and environmental (Rio +20 process including the elaboration of Sustainable Development Goals) concerns.

The EU has at its disposal many external relations policies and tools that span diplomatic, security, defence, financial, trade, development and humanitarian aid, as well as the external dimension of EU internal policies to deliver the end result that Member States and the international community seek. This is the EU’s main strength as an international actor.

In December 2013, the European Commission and the High Representative for Foreign Affairs and Security Policy adopted a Joint Communication on the EU’s Comprehensive Approach to external conflict and crises[3] with a view to further increasing its efforts to make its global action more coordinated, coherent and effective, drawing on the full range of its instruments and resources.

EU Children of Peace: Echoing the Nobel Prize into the future

Children are among the most vulnerable victims of conflict. Following the receipt of the 2012 Nobel Peace Prize for its achievements in peace on the European continent, the EU decided to dedicate the prize money to help girls and boys around the world who are deprived of the opportunity to grow up in peace. In Colombia, children benefit from a project that prevents child recruitment by armed groups. In South Sudan the funds are used to help children begin new lives following years of conflict. In Pakistan, the EU Nobel Prize initiative supports education and protection to children displaced by conflict. Altogether, over 28 000 girls and boys benefit from this initiative. In November 2013, the EU confirmed its decision to continue the ‘Children of Peace Initiative’ by announcing additional funds for new projects in 2014.

1. Chapter 1 - Delivering on commitments

1.1. EU response to world developments in 2013

During 2013 the EU continued to be fully engaged in efforts to support its partner countries in poverty reduction and sustainable development, as well as facilitate political and economic transition.

The EU’s policy priorities towards Africa on the political and security side, that is promoting peace, democracy and stability, were increasingly balanced with efforts on the economic and global front in areas such as trade, investment and climate change.

Since the outbreak of new violence in late 2012 in Central African Republic (CAR), the EU has been at the forefront of international efforts to address humanitarian needs, stabilize the situation and restore a more stable government in the country. Commissioner Georgieva has visited the country twice in 2013. In mid-August the European Commission adopted a EUR 10 million stabilization programme in response to the post-coup crisis under the Instrument for Stability (IfS). The EU also granted EUR 50 million to the African-led International Support Mission in CAR (MISCA or AFISM-CAR).

The EU has been a long-time partner to Somalia, with more than EUR 1.2 billion provided since 2008 to support the Somali people’s basic needs and improve security in the country. In September 2013, the land mark EU-Somalia Conference in Brussels endorsed a New Deal Compact for Somalia, and raised additional EUR 1.8 billion (of which EU contributions amounted to EUR 650 million) to implement the most pressing priorities for rebuilding the Somali State during the period 2013-2016.

The International Donors Conference to help rebuild Mali, co-organised by the EU in May 2013, mobilised EUR 3.25 billion and deliberated on regional aspects with the conviction that Mali's development will contribute to the development and security of its neighbours and of the African continent.

Budget support in fragile situations: State-building contracts in Mali and Ivory Coast

A State Building Contract worth EUR 225 million for Mali was signed in May 2013 as part of the EUR 523.9 million aid package announced by the European Commission at the International Donor Conference, ‘Together for a New Mali’. This budget support helps the government to ensure the provision of basic services and restore the rule of law for the country’s whole population.

The State Building Contract for Ivory Coast worth EUR 115 million is a key component of the general EU strategy aimed at stabilising the country, restoring the State’s authority and promoting inclusive growth. The most tangible results achieved so far include: the proper functioning of all Courts of First Instance in the country, in which civil and criminal hearings take place, and the proper functioning of 90 % of police stations in the country.

The EU has invested in building political relations with the African Union, ECOWAS (Economic Community of West African States), SADC (South African Development Community) as well as closer economic ties with EAC (East African Community). It has been engaged in finding solutions to political problems in countries under Article 96 of the Cotonou Agreement (Guinea, Guinea-Bissau, Madagascar, Zimbabwe); it has also sent election observation missions to Kenya, Mali and Guinea Conakry; electoral expert missions to Djibouti, Mauritania, Rwanda and Guinea Bissau; and has provided assistance to electoral processes in Libya, Tunisia, Mali, Zimbabwe, the Democratic Republic of the Congo (DRC), Burkina Faso, Madagascar, Kenya, Sierra Leone, Malawi, Zambia, Comoros, as well as to the Southern Africa Development Community Election Support Network (SADC-ESN) to prevent electoral violence in Southern African Countries. The EU and Eastern and Southern Africa (ESA consisting of Zimbabwe and the Indian Ocean nations of Mauritius, Madagascar and Seychelles) took steps to ensure the implementation of the Economic Partnership Agreement (EPA) in 2013. In addition negotiations continued with other sub-Saharan African regions marked by two visits by Trade Commissioner Karel de Gucht.

The EU has been involved in addressing the deepening polarisation in Egypt. EU assistance to Egypt has been reviewed following the difficult situation in the country and the outbreaks of violence following the ousting of President Mohammed Morsi. As mandated by the Foreign Affairs Council in August, EU assistance has focused on the socioeconomic sector benefiting people most in need, and in favour of support to civil society. The EU will observe the upcoming electoral cycle that starts with the referendum of the Constitution in January 2014.

On 24 June 2013, the High Representative and the Commission issued a joint communication proposing the main elements of a comprehensive EU approach to the Syria crisis. It also included an additional financial package of €400 million for 2013 to cover priority needs of affected population in Syria and the region.

Syria continued to be embroiled in an armed conflict that causes a humanitarian catastrophe impacting on the stability of neighbouring countries, in particular Lebanon and Jordan. The EU has played an important role in maintaining political dialogue with stakeholders to bring about a political settlement in Syria, and took an active role in the preparations for the peace conference in Syria (Geneva II). In 2013, the EU decided to modify its sanctions regime to the benefit of the Syrian population and the Syrian opposition while maintaining the pressure on the regime itself. The EU has actively supported the implementation of the United Nations Security Council (UNSC) resolution 2118 on the elimination of chemical weapons in Syria and has provided material support to the UN / Organisation for the Prohibition of Chemical Weapons (OPCW) mission. The EU and its Member States remain the largest donors of humanitarian assistance (over EUR two billion) for the people affected by the conflict.

The EU has actively supported the implementation of the United Nations Security Council resolution 2118/13 and the Organisation for the Prohibition of Chemical Weapons (OPCW) Executive Council decisions on the elimination of chemical weapons in Syria and has provided contribution in kind (armoured cars, technical assistance amounting to close to 5 million EUR) to the Joint OPCW-UN Mission and a financial contribution of 12 million EUR to the Special Trust Fund through the IfS. In 2013 the EU and its Member States remained the largest donors of humanitarian assistance (over EUR 2 billion) for people affected by the Syrian conflict. It is estimated that about half of the beneficiaries of the Commission's humanitarian assistance are children.

The EU continued to encourage and support the on-going transition in Myanmar/Burma in 2013. The Joint Statement of President Van Rompuy, President Barroso and President U Thein Sein, issued during the Myanmar President’s visit to Brussels, marked an important milestone in EU-Myanmar relations by establishing a vision to build a lasting partnership and contribute to plans for democratisation, national reconciliation and economic liberalisation. The EU Comprehensive Framework for Myanmar sets out the EU and Member States’ goals and priorities towards building a lasting partnership and promoting closer engagement with the country. It is a collective effort involving actions by EU Member States and EU institutions to support peace, democracy, development and trade.

The EU worked closely with Pakistan in order to support the on-going reform of the electoral cycle in the country. An EU Electoral Observation Mission, led by Chief Observer Michael Gahler MEP, was established in the country for Pakistan’s general elections in May 2013. The outcome of these historic elections were welcomed by the Council as marking a strengthening of democracy through the first ever successful handover from one civilian government to another in the country.

The Council conclusions of June reaffirmed the long-term commitment of the EU and its Member States to support Afghanistan during transition and the decade of transformation. The Council prolonged the mandate of the European Union Police Mission in Afghanistan (EUPOL AFGHANISTAN) in support of civilian policing and the rule of law until 31 December 2014. In 2013, the EU committed EUR 196.5 million to support local development and governance, credible and transparent elections, Afghanistan regional cooperation with its neighbours, the development of agriculture, and the police.

The EU is the world's largest donor for food and nutrition security and agricultural development, providing at least EUR one billion for food and nutrition security each year (not including emergency food aid in response to crises). EU support is aimed at fighting under-nutrition, increasing food availability and improving access to food for people who are at risk of hunger. In March 2013, a Communication ‘Enhancing Maternal and Child Nutrition in External Assistance[4]’ was adopted by the Commission, and endorsed by the Council in May. A key element of the Communication is the commitment to support partner countries to reduce stunting in children under five years old by at least 7 million in 2025. A Nutrition Action Plan describing the steps to be taken to attain this target is expected to be finalised by the first half of 2014.

1.2. Leading the way in development policy

1.2.1. A more strategic approach: implementing the ‘Agenda for Change’

The Foreign Affairs Council (FAC) in May 2012 endorsed the Communication ‘Increasing the Impact of EU Development Policy: An Agenda for Change’ which sets out a number of strategic measures that aim to further increase the impact of EU development policy on poverty reduction and improving results with respect to the MDGs.

To this end, the Agenda for Change proposes a series of major changes in the way EU assistance is delivered. These include, amongst others, a differentiated approach to ensure that grant aid is directed where it is most needed and can have the greatest impact in terms of poverty reduction; a focus on a maximum of three sectors per country; a priority focus on the areas of support for good governance, democracy and human rights, and inclusive and sustainable growth; greater use of innovative financing mechanisms; improved policy coherence and increased coordination and joint actions with Member States. More detail on this aspect is available in chapter 1, part 4.

The recommendations of the Agenda for Change have been integrated into the financial instruments for the period 2014-2020 and the European Development Fund (EDF). The differentiated approach has been applied for bilateral allocations within the context of the Development Cooperation Instrument (DCI)[5] and the EDF. Bilateral aid to most upper middle income countries and certain large emerging economies, which have sufficient domestic resources to address poverty, will now be stopped or significantly reduced and new forms of partnership with these countries will be developed. The differentiation process has been based on the transparent use of internationally recognised indicators reflecting the criteria of needs, commitment, performance, capacity and potential EU impact. The results are encouraging with consequent transfer of resources from upper middle income countries to least developed countries.

The programming exercise on bilateral aid initiated in 2012 has made good progress. The programming documents prepared in close cooperation with partner country governments and EU Member States, and in wide consultation with civil society and private sector, were in an advanced stage at the end of 2013 for many partner countries. Although draft programme documents have not been finalised for each country, based on the preliminary analysis, the key principle of concentrating EU bilateral cooperation in three sectors is being applied, and helping to reduce existing fragmentation.

Further, the proposed sector choices present a strong focus on the two main areas of support defined by the agenda for Change, governance, human rights and the rule of law, and inclusive and sustainable growth. Energy and food security, education and health are now among the priority sectors in most countries to support inclusive and sustainable growth. Public Financial Management (PFM) reforms, justice sector reforms, security sector reforms, state building and democratisation are among the preliminary areas of intervention in support of governance goals.

A major effort has also been made to ensure that programmes complement each other and avoid duplication of interventions at different level of intervention (national, regional and global) and between different EU financial instruments.

In this area the EU and its Member States have also taken steps to improve coordination and joint programming is an important vehicle for change here (see chapter 1 part 4). Clear progress has been made and joint programming will now be taken forward in around 40 partner countries for the period 2014-2020. However continued support and commitment of all partners is essential to sustain the process and ensure continuing success. Within efforts to increase coordination and coherence, the EU and its Member States have made good progress on Policy Coherence for Development (PCD), as reflected in the EU 2013 report on PCD and also recognised by the Organisation for Economic Cooperation and Development (OECD) in its most recent PCD review.

The implementation of a firm commitment to improve reporting on results across all levels, at project and programme level, at country level and at an organisation-wide level, is gaining pace. A Commission Staff Working Document ‘Paving the way for an EU Development and Cooperation Results framework’[6] was issued in December 2013 in which the overall approach and a number of issues relating to the reporting framework that will bring together aggregated information on a number of key development results in one place was set out. This SWD will be followed by the further elaboration of the framework, which is to be adopted in the second half of 2014. This is to enable the Commission to proceed to a first reporting on the basis of this new framework in 2015. At a further stage the framework will need to be further developed to reflect the new international post-2015 development framework that is currently under preparation. Thus, EU aid will be aligned against some clear indicators allowing better monitoring and measurement of results. The results framework will set the overarching goals, as well as the specific outcomes and outputs it contributes to, and it will also show how aid is converted into real results. This effort of including measurable indicators in the programming documents will help to provide solid evidence of how EU aid contributes to partner countries’ development results.

The approach to future EU budget support to third countries was endorsed by the FAC on 14 May 2012 and implemented. For further details see chapter 4 part 2.2.

To further strengthen policies in priority areas, the Commission issued specific communications in 2013 on ´A Decent Life for all: ending poverty and giving the world a sustainable future`, on ´Enhancing Maternal and Child Nutrition in External Assistance: an EU Policy Framework` and on ´Empowering Local Authorities in partner countries for enhanced governance and more effective development outcomes`[7].

EU support for sustainable change in transition societies’

In 2013, the European Commission and the European External Action Service (EEAS) have moved to implement the Joint Communication ‘EU support for sustainable change in transition societies’[8]. In July, the Joint Communication and the Council Conclusions were sent to all EU Delegations for information and to follow up where relevant. The EU offers support to partner countries undergoing transition, both at bilateral and regional level. Given the varying levels of progress in different countries support is tailor-made, bearing in mind each country’s specific political and socioeconomic contexts.

For example, in the southern European Neighbourhood transitions are increasingly complex and multidimensional and require a coordinated mobilisation of a wide range of EU instruments. The EU supports democracy-related reforms in the areas of justice, governance and human rights. Security has become a new area of cooperation as development cannot take firm root in the absence of peace and security. The EU further contributed to short-term security actions as well as to long-term support to develop institutional capacity for Security Service Reform. In addition, the EU further enhanced support to civil society, including support to create a conducive environment for the development of civil society organisations.

At headquarters level, a platform for better sharing knowledge was set up as a new public group on capacity4dev[9] and was made operational for the European Development Days in November 2013. This platform on transition will allow members of the group to find relevant information on EU support for sustainable change. Members of the group will also be allowed to share information on capacity4dev’s blog pages.

1.2.2. Responding to global challenges and supporting long-term reforms

At least 20 % of the European Union budget for 2014-2020 will be spent on climate-related projects and policies, following the European Parliament's approval in November 2013 of the 2014-2020 EU budget (Multi-annual Financial Framework, MFF). The 20 % commitment triples the current share and could yield as much as EUR 180 billion in climate spending in all major EU policy areas over the seven year period. The EU’s development policy will contribute to achieving the 20 % overall commitment, with an estimated EUR 1.7 billion for climate spending in developing countries in 2014-2015 alone. This is on top of climate finance from individual EU Member States. This budget highlights the EU's role as promoter of clean and competitive low-carbon economy supporting partner countries in their climate-resilient, low carbon development.

International climate negotiations and developing countries

The 19th Conference of Parties of the United Nations Framework Convention on Climate Change (UNFCCC COP) took place in Warsaw, Poland, in November 2013. The conference agreed a time plan for all countries to table their contributions to reducing or limiting greenhouse gas emissions under a new global climate agreement that will be adopted in 2015 and enter into force by 2020 at the latest. Efforts to deepen emission cuts over the rest of this decade will be accelerated, and a mechanism to address 'loss and damage' caused by climate change in vulnerable developing countries be established.

The Warsaw conference agreed to enhance the implementation of a range of measures, including finance to support developing countries, combating tropical deforestation, and transparency in reporting on emissions. The 'Warsaw international mechanism' aims to enhance action and support for loss and damage, improve knowledge and strengthen coordination. Efforts to reduce emissions from deforestation and forest degradation in developing countries (the REDD+ agenda) marked a major step forward with agreement on a package of decisions providing the necessary methodological framework. The 'Warsaw Framework for REDD+' largely completes the 'rulebook' for implementing REDD+.

Addressing the challenges in fragile and conflict-affected countries

Addressing the challenges of fragile and conflict-affected countries is a top priority for the European Union as outlined in the Agenda for Change amongst other policy initiatives. In December 2013, the Joint Communication from the High Representative and the European Commission on the EU's comprehensive approach to external conflict and crises presented proposals for how to strengthen the coherence, comprehensiveness and effectiveness of EU external action, with a particular focus on conflict and crisis situations. In October 2013 two internal joint guidance notes on ‘Addressing conflict prevention, peace-building and security issues under external cooperation instruments’, and the ‘Conflict Analysis in support of EU external action’ were also issued and are contributing to a more conflict sensitive programming approach.

Special attention to fragile contexts was further demonstrated by the adoption of the new budget support guidelines, which offer the possibility to use State-building Contracts in transition countries, the possibility of using flexible procedures in crisis situations, the attention to fragility and crisis affected countries across the various policy documents issued, and training more than 180 people on engagement in fragile and crisis situations during 2013.

Since 2011 November, and the Launch of the ‘New Deal for Engagement in Fragile States’[10], substantial progress has been made in implementing the New Deal provisions at country level and through reforms. Policy dialogue on fragility and conflict has been strengthened with key international and strategic bilateral partners, as the EU is playing an active and role in the International Network on Conflict and Fragility and in the International Dialogue on Peace-building and State-building.

As regards country level implementation, the EU has taken the lead international partner in Somalia, in the Central African Republic (together with France) and has also offered its help to Timor Leste in support of Australia.

In September 2013, the first New Deal Compact was endorsed in Brussels, as a joint engagement of the Federal Government of Somalia and of the donor community on a set of priorities aligned with the five Peace-building and State-building Goals, accompanied by a mechanism for aid architecture and a mutual accountability framework. In Central African Republic the EU is supporting the stabilisation process and is preparing to co-sponsor the New Deal implementation once the situation allows. In Timor Leste EU interventions have strong state-building elements. The EU is a strong supporter of the New Deal also in countries where others have taken up the role of lead donor, such as in Liberia, Sierra Leone and, eventually, South Sudan. For more details please refer to the relevant countries in Chapter two.

The New Deal and its approach, which can be used as a framework also in non-G7+ countries and adapted to the local context, will continue to stay high on the agenda. In the ongoing programming exercise the EU is striving to ensure consistent and congruent links between the focal sectors of EU support and Peace- and State-building goals in the eighteen G7+ countries and beyond as well as aligning with the overall principles of the New Deal framework.

The work to take forward the principles and priorities of the EU's comprehensive approach will further strengthen the security-development nexus and contribute to state-building and peace-building.

Building resilience in crisis prone countries

In 2013, the EU stepped up efforts to build resilience in crisis prone countries. With the May 2013 Council Conclusions, Member States expressed strong support for the Communication of October 2012 ‘The EU Approach to Resilience: Learning from Food Security Crises’[11] that committed the European Commission to building resilience and established that increasing resilience will be a central aim of EU external assistance in countries that face recurrent crises.

Food and nutrition security has traditionally been the initial entry point for resilience. The resilience approach now incorporates fragility, natural hazards and the increasing impact of climate change, often in the context of rapid population growth and increased vulnerability. The Commission’s Resilience Action Plan of June 2013[12] provides the framework for a continuation and scaling up of the EU efforts to build resilience with an expanded geographical scope and operating at different levels: from policy and advocacy to tools and methods. It complements the promising results of the European Commission's resilience-boosting initiatives in the Sahel and the Horn of Africa, namely the ‘Global Alliance for Resilience Initiative’ (AGIR-SAHEL) and the ‘Supporting the Horn of Africa's Resilience’ (SHARE) Initiative. The Resilience Action Plan is also informed by the Global Climate Change Alliance (GCCA), an EU Initiative supporting most vulnerable countries to tackle climate change challenges and resilience (see Chapter three).

AGIR is led by regional organisations, including the Agriculture Commissions of the Economic Community of West Africa (ECOWAS) and the West African Economic and Monetary Union (WAEMU), and the Permanent Inter-State Committee for Drought Control in the Sahel (CILSS). The EU has been mobilising Technical and Financial Partners (TFPs) and other stakeholders, and providing both political and financial support. The EU has committed EUR 1.5 billion to strengthen resilience in West African countries for 2014-2020. The AGIR Regional Roadmap, providing a Regional Guidance Framework, was adopted in Paris on April 2013. Inclusive national dialogues were launched by AGIR’s stakeholders at ministerial level in Abidjan on November 2013 and are expected to lead to the definition of Country Resilience Priorities (CRP-AGIR).

For SHARE, the EU committed EUR six million to the regional project on animal disease surveillance with the Intergovernmental Authority for Development (IGAD) and the African Union-Interafrican Bureau for Animal Resources (AU-IBAR), while EUR two million has been allocated for IGAD capacity building, including regional agricultural and livestock policies.

Future cooperation under the 11th EDF (2014-2020) with the majority of countries in the region will include a focus on agriculture and food security, providing a continuing basis for prolonged support to resilience activities.

In 2013, the EU’s Intra-ACP strategy committed an additional EUR 100 million to put into operation the African Union Commission’s Strategy for Disaster Risk Reduction (DRR) as well as to pursue the goals of the Caribbean Disaster Management Strategy. These initiatives, together with a EUR 20 million allocation to support Safety and Resilience in the Pacific, are now available to the sub-regions, countries and communities in the African, Caribbean and Pacific (ACP) most vulnerable to natural hazards. This further strengthens support launched in 2011 through the ACP-EU Natural Disaster Risk Reduction Programme. These initiatives will also build on the early achievements of a new EU project with the UN Office for Disaster Risk Reduction (UNISDR) to strengthen capacities for unified climate change adaptation (CCA) and DRR in approximately 40 countries in the ACP, Asia and Latin America. This project has received EUR seven million from the Thematic Programme on Environment and Sustainable Management of Natural Resources including Energy (ENRTP).

The resilience approach allows for more effective EU collaborative action, bringing together humanitarian assistance, long-term development cooperation and on-going political engagement. Ultimately, this approach is expected to lead to a reduction in humanitarian needs and more sustainable development gains, addressing food insecurity and disaster risks, particularly those associated with climate hazards.

1.2.3. Making a difference: new instruments and aid modalities

2007-2013: a strong legacy

Over the past few years, the EU and its Member States have provided more than half (56 %) of global aid to developing countries. To highlight a selection of notable achievement, the EU has provided aid to the poorest people in more than 150 countries worldwide notably through the Development and Cooperation Instrument (DCI) which has had a significant impact in Latin America, Asia, Central Asia, the Middle East and South Africa: regions that are home to 70 % of the world's people living on less than USD 1.25 per day.

In our immediate neighbourhood, a number of strategic developments have been successfully achieved with partners to the East and South of the EU’s borders including the deepening of bilateral relationships, the launch of key regional initiatives and active support for democratic transition processes in our Southern Neighbourhood.

The results obtained through the external financing instruments during the last financial period have paved the way for new, improved and adapted tools.

2014-2020: new challenges require new and sufficient targeted resources

The new external financing instruments proposed by the Commission in December 2011 which provide the strategic tools for more effective and flexible action over the period 2014-20 have now been adopted by the Council and the European Parliament and will be implemented from 2014.

In a changing and globalised world that is affected by uncertainty and long term crisis, and where emerging economies like China, India and Brazil are asserting their influence, Europe must stand together and be an active partner in shaping global change. The external financing instruments funded by the EU budget and the European Development Fund will ensure that the EU can speak with a united and stronger voice and promote poverty reduction, democracy, peace solidarity, stability and prosperity, both in our immediate neighbourhood and across the world.

Pursuing the external strategic objectives of the Europe 2020 strategy[13], the new instruments translate, into operational terms, the priorities of the Agenda for Change and of the new vision for the European Neighbourhood Policy. Four policy priorities are at stake: enlargement, neighbourhood, cooperation with strategic partners, and development cooperation. With regards to the latter, the overall priority remains to help the poorest in the world and work towards achieving the Millennium Development Goals (MDGs) and contribute to a global agenda for sustainable development post-2015.

Over the period 2014-2020 the total amount in current prices, for the six following external relations instruments is EUR 51.4 billion: Development Cooperation Instrument[14]: EUR 19.6 billion; European Neighbourhood Instrument[15]: EUR 15.4 billion; Instrument for Pre-Accession Assistance (IPA II)[16]: EUR 11.7 billion; Instrument contributing to Stability and Peace[17]: EUR 2.3 billion; European Instrument for Democracy and Human Rights[18]: EUR 1.3 billion; and Partnership Instrument[19]: EUR 0.9 billion.

In addition, the Instrument for Nuclear Safety Cooperation[20] and the Instrument for Greenland[21], both adopted by the Council, will respectively provide EUR 0.22 billion and EUR 0.19 billion from the EU budget.

A further EUR 30.5 billion will be made available for cooperation with African, Caribbean and Pacific countries as well as Overseas Countries and Territories through the 11th European Development Fund, which will remain outside of the EU budget over the next period.

Overall funding for all external instruments including all those mentioned above totals EUR 96.8 billion.

What are the main changes?

The EU will seek to target its resources where they are needed most and where they can have most impact. This more differentiated approach to partnerships and aid allocation driven by the specific country context will be a core principle of the new Development Cooperation Instrument and European Neighbourhood Instrument. With the new Development Cooperation Instrument, the partner countries most in need, in particular the least developed countries, will be given priority.

Compared to the 10th EDF (European Development Fund) the amount of the 11th EDF remains stable. The main areas of change were to insert changes foreseen by the second revision of the Cotonou agreement (such as creation of regional envelopes for unforeseen needs and a new shock absorbing scheme), as well as to align as much as possible the 11th EDF Implementation and Financial Regulations with the other financial instruments of EU development cooperation.

With the new European Neighbourhood Instrument an incentive based approach, which is one of the key aspects of the renewed Neighbourhood policy, will allow the EU to adapt its support for partner countries who are genuinely implementing deep and sustainable democracy, including respect for human rights, and agreed reform objectives.

When it comes to strategic emerging economies, the EU will focus primarily on partnerships in areas of mutual interest and will seek to more effectively promote its own strategic interests.

Differentiation also means a flexible use of implementation methods. Innovative financial instruments such as blending – the combination of grants and loans or equity to enable investments – will help graduating partner countries to tap into capital markets and close financing gaps in the poorest countries.

The EU will have a greater focus on human rights and will provide more support to democracy and good governance, mainly through the new European Instrument for Democracy and Human Rights that will better support the development of thriving civil societies.

The EU will also concentrate external spending in 3 sectors to ensure large-scale impact resulting from sectorial dispersion and aid fragmentation and will aim for donor-recipient mutual accountability in allocating and disbursing funds.

The programming of the DCI, EDF and ENI will ensure that the ‘Agenda for Change’ will be implemented. The key principles set out in the ‘Agenda for Change’ – namely prioritisation, concentration, differentiation and EU coordination – will continue to inform the programming process through the different instruments of the 2014-2020 Multiannual Financial Framework (MFF) and the European Development Fund (EDF).

The European Parliament will be involved in the setting of priorities for EU external cooperation prior to the programming of the external financial instruments. The Commission will conduct an informal strategic dialogue with the European Parliament in the preparation of its programming documents.

Finally, the new instruments will allow more flexibility to further increase the EU’s capacity to respond to unforeseen events and simplified rules and procedures for programming and delivering assistance will be more effective.

1.3. Keeping long-term promises 1.3.1. Progress in achieving the Millennium Development Goals (MDGs) and preparation of the post-MDG framework

Poverty, hunger and nutrition

The global target of halving the number of people living in extreme poverty of the MDGs was met five years ahead of the target completion date of 2015. And yet poverty remains a global issue with 1.2 billion people still living below the poverty line.

Between 2007 and 2012, the employment rate for the global working-age population increased from 60.3 to 61.3 %. In order to promote inclusive growth that enables the poorest to participate in income generation activites, the EU assistance has benefited 8.8 million people and helped to provide 7.7 million people with Technical and Vocational Education between 2004 and 2012.

Enhancing social protection systems worldwide

In 2013 the EU launched a peer-to-peer technical assistance facility (SOCIEUX[22]) seeking to enhance the capacities of partner countries to better design inclusive, effective and sustainable social protection systems and to extend social protection coverage to poor and vulnerable populations.

In 2013, the International Community stepped up its efforts to tackle malnutrition and ensure food security. A series of high level events culminated in commitments from donors and partner countries to increase funding to fight hunger and malnutrition. The Scaling Up Nutrition (SUN) movement, of which Commissioner Piebalgs is an active member, was instrumental in raising awareness on nutrition. The EU coupled its policy commitment to support partner countries in reducing stunting of 7 million children by 2025 with the announcement that EUR 3.5 billion will be allocated to this issue between 2014 and 2020.

Education

Progress in primary school enrolment has been remarkable, with the global average net enrolment rate reaching 91 % in 2011. However, large disparities between countries persist. 57 million primary-aged children remain without access to education: the majority of these children are girls.

In the programming period 2007-13, the EU supported education and training in 42 countries as a focal sector with EUR 2.9 billion. EU higher education programmes were supported with EUR 1.3 billion. Between 2004 and 2012, it is estimated that the EU contributed to the enrolement of 13.7 million children in primary education and to the training of 1.2 million teachers.

More inclusive education in Bangladesh

Through the Supporting the Hardest to Reach Children through Basic Education (SHARE) initiative, the EU provides basic education to hard-to-reach children. During its first year in 2010, 137 000 boys and 144 000 girls were enrolled in the programme, almost 5 000 non-formal primary schools were established and 5 600 teachers recruited and trained. By 2018, more than 650 000 children are expected to have completed pre-primary education through this initiative.

A high-level Conference on Education and Development was successfully organised in May 2013 and made an important contribution to the education debate. The Commission remained active in the Global Partnership for Education as well as the Association for the Development of Education in Africa to promote education policy dialogue between African partners and donors.

Culture

Culture continues to be supported as a cross-cutting dimension of human and socioeconomic development, social inclusion, freedom of expression as well as of democratisation and peace building processes. The EU and the Member States are parties to the UNESCO 2005 Convention on the Protection and Promotion of the Diversity of Cultural Expressions and the EU is promoting its ratification beyond the EU through its external policies. In particular in developing countries the European Commission is supporting cultural diversity and the role of civil society in human rights and governance policies. The Commission is also implementing a preparatory action on strengthening the role of culture in external relations, with a focus on Neighbourhood countries and EU strategic partners.

Gender equality

While progress has been made in terms of eliminating gender disparities in education, women’s position in economic, traditional and cultural circles is often weak and their freedom limited.

The EU continues to give special attention to access to education for girls, helping 300 000 female students enrol in secondary education. In addition, almost 13 000 female higher education students have taken part in EU mobility schemes such as Erasmus Mundus.

The EU also works to improve women’s economic and social status by promoting equal rights for women and men and by ensuring that women have control over and access to resources. The EU supports women’s political participation, for example facilitating their contribution in peace and statebuilding processes. As an example, between 2004 and 2012, the EU supported 736 civil society organisations to work on gender equality issues.

Health

There is good progress towards the health-related MDGs with significantly less children and women dying due to preventable causes. Global HIV infections are declining. However, achievements are often not evenly distributed both with countries and across regions.

The EU provided comprehensive health sector support to 42 developing countries during the 2007-2013 period. Thanks to EU support at country level, an additional 18.3 million children were vaccinated against measles between 2004 and 2012. Also, over this period, the EU made it possible for 7.5 million births to be attended by skilled health personnel.

Basic health for all in Afghanistan

Since 2001, the EU has committed EUR 341 million to the health sector in Afghanistan, including a government-led Basic Package of Health Services (BPHS) and an Essential Package of Hospital Services (EPHS). These serve 10 provinces in Afghanistan including some of the most insecure and neglected areas of the country. The number of health facilities supported by the EU in the 10 districts has increased from 292 in 2008 to 406 in 2012; the services they provide reach a total of over 5.2 million people.

The EU supported the International Health Partnership in promoting the harmonisation and alignment of health support to one national health strategy, one health budget and one monitoring framework. It also provides support through international funds such as the financial support given to the Global Fund to Fight AIDS, Malaria and Tuberculosis; Global Polio Eradication Initiative; and the Global Alliance for Vaccines and immunisations.

Environmental sustainability

The EU supports partner countries to manage natural resources sustainably. Between 2004 and 2012, it helped protect 1.9 million km2 of forests and enabled the continued conservation of 1.1 million km2 of protected areas. In 2013, the EU led internationally recognised initiatives on environmental sustainability for example though the Global Climate Change Alliance (GCCA) which supported over 48 programmes in eight regions and the EU Forest Law Enforcement, Governance and Trade (FLEGT) Action Plan

Energy

Around the world about 1.4 billion people have no access to electricity and almost three billion people rely on solid fuels, such as traditional biomass and coal, for cooking and heating. As commitment to the UN’s Sustainable Energy for All initiative, the EU set itself the target of enabling access to sustainable energy for 500 million people by 2030.

In 2013, the EU supported energy generation projects throughout the developing world through its blending facilities. In Sub-Saharan Africa, EUR 400 million has been allocated under the EU-Africa Infrastructure Trust Fund (ITF) to leverage significant investments of EUR 4 to 8 billion. Initiatives such as the EU's Technical Assistance Facility worth EUR 80 million is available to assist partner countries in refining and developing their policies so that they can attract the necessary private investments to develop a sustainable energy sector.

Water and Sanitation

The MDG target to halve the proportion of people without access to clean drinking water was reached five years ahead of the 2015 deadline.[23] This achievement reflects the concerted effort of the international community, to which the EU made a prominent contribution. Since 2004, the EU assistance has helped to connect 70.2 million people to drinking water and 24.5 million people to sanitation facilities.

The EU MDG Initiative

Globally, huge advances had been made on the MDGs by 2010. However, ten years after they were agreed, many countries are still far away from achieving some MDGs. The EU therefore created a new MDG Initiative, making available needs-based and performance-based funding, worth EUR 1 billion. Of this EUR 700 million targets the most off-track MDGs, such as hunger, maternal health, and child mortality, while EUR 300 million targets countries with a good track record in implementing aid. To date the MDG Initiativehas funded 70 projects in 46 countries.

The post-2015 framework

Looking at the development framework after the MDGs have crossed their finish line in 2015, the EU has been strongly involved in the international discussions on the post-2015 development agenda. Based on the Commission Communication ‘A Decent Life for All: Ending poverty and giving the world a sustainable future’[24] launched in February 2013, EU Member States agreed on a common position that, amongst others, guided negotiations at the 2013 UN Special Event on MDGs as well as the on-going discussions in the Open Working Group on Sustainable Development Goals (SDGs).

In order to set its future work on a solid basis and to enhance the voice of the public in the process, the EU organised the 2013 European Development Days ‘A Decent Life for All By 2030: Building Consensus For a New Development Agenda’[25] which enabled an open and constructive dialogue among policy-makers, civil society, research organisations and the private sector from developed and developing countries.

1.3.2. Focusing on poverty

The Lisbon Treaty puts fighting poverty at the core of the European external and development policies. The EU remains committed to poverty reduction and in particular to the achievement of the MDGs. The EU and its Member States collectively provide more than half of global official development assistance ODA and remain the largest supporter of developing countries in achieving the MDGs, despite the constraints posed by the present economic crisis. The EU contributes to poverty reduction through strengthening access to basic services such as health and education, enhancing institutional capacity and improving sector policies. It also supports partner countries’ efforts in improving their governance and public financial management systems for more effective service delivery. It also continues to invest in infrastructure in order to contribute to the long-term economic growth and job creation that is needed to reduce poverty.

Progress in reducing poverty

All partner countries in Eastern Europe and the Caucasus covered by the European Neighbourhood and Partnership Instrument (ENPI) are now classified as Middle-Income Countries (MICs). While poverty in the region has been reduced, social inequality and exclusion are still increasing at country and regional levels. Although the Republic of Moldova (hereafter ‘Moldova’) has been reclassified as a low–middle income country it remains Europe’s poorest country. EU assistance in the Eastern Neighbourhood countries has contributed to poverty reduction through sector budget support operations focused on agriculture and rural development as well as through regional development programmes which support sustainable economic development and job creation. Mediterranean countries covered by the ENPI also have to cope with poverty (all of these countries, apart from Israel and Palestine[26], belong to the MIC category) and policy reforms undertaken during the regions' transition processes should enable poverty eradication. Consequently the EU has fully supported reforms through bilateral and regional cooperation programmes that have had direct and indirect impact for poverty reduction: for instance in the area of socioeconomic reforms in Tunisia or agricultural and rural development in Algeria. Assistance has been allocated to reduce the consequences of the Syrian refugee crisis and also to Palestine, where 25 % of the population lives below the poverty line.

The political and security situation worsened during 2013 in both Iraq and Yemen despite some positive signals such as the finalisation of the Iraqi National Development Plan and progress observed in the Yemeni National Dialogue Conference. However the general poverty situation in both Iraq and Yemen remains a key challenge. More than 18 % of the Iraqi population lives below the poverty line and in Yemen most MDG indicators have worsened in the aftermath of the 2011 crisis. The EU addresses these challenges by striving to improve governance in Iraq and facilitate the delivery of basic services in Yemen.

Sub-Saharan Africa has managed to cope with the recent global economic crisis better than expected and its growth rates are above pre-crisis levels. As a result, many African countries have made progress towards the MDGs, especially with regards to poverty reduction: about 700 million people were lifted out of extreme poverty between 1990 and 2010. However, serious challenges remain. With less than 1 000 days until the 2015 target for reaching the MDGs, it is important that progress is sustained and accelerated. Indeed, about half of the population of Africa still lives on USD 1.25 a day or less, and development progress often fails to reach those most in need and the most vulnerable groups. Another challenge for Africa is weak governance and institutions in partner countries. Adequate structures need to be put in place to maintain Africa's development trajectory beyond the MDG target timeline of 2015.

While Asian economies have shown remarkable recent growth, poverty is still widespread on the continent. Most countries in the region face challenges due to uneven regional development. Moreover, increasing income inequality is a matter of concern. EU cooperation through the Development Cooperation Instrument focuses mainly on governance, education and health, food security, rural development, climate change, environmental protection and trade integration, all of which have beneficial effects on reducing poverty and achieving the MDGs.

All the countries in the Pacific region have now attained at least lower middle income category. Several are rich in natural resources and some are now candidates for graduation from development assistance. The distribution of wealth is, however, uneven within most Pacific Island nations and malnutrition is a problem in the Solomon Islands and Timor-Leste. Safeguarding sustainable forestation, energy access, fisheries, raw materials extraction, trade and tourism are core issues for many Pacific Island countries. Moreover, democratic structures, including women's rights and civil society, require particular attention.

The Central Asia region has met the MDG target to reduce poverty by half and almost met the target of halving hunger. The proportion of undernourished people has decreased from 13.9 % in 1990 to 7.4 % in 2012. However, income inequalities and poverty remain widespread in the region. Key challenges include unemployment, risks to water and food security, and the cost of health care and energy - the latter affecting low income households in particular. To address these challenges, the EU support in the region focuses on supporting economic development in rural areas, improving access to social protection and health services, introducing sustainable energy development and environmental protection including the management of water resources.

2013 witnessed the graduation from EU financial support for a number of Latin American and Caribbean countries that have reached a middle or high income status. After a decade of economic progress, however, the global economic and financial crisis and the rising cost of food and energy have slowed the macroeconomic performance of the region. In absolute terms, poverty remained stable in 2013 compared to 2012. However, the number of extreme poor reached 68 million in 2013 which represents a slight increase on 2012. Even though inequality in income distribution has been reduced, this issue also remains one of the region's main challenges.

Haiti remains the poorest country in this region. It is estimated that 78 % of Haitian population live on less than USD two a day and that more than half live in extreme poverty (less than USD one per day), with these figures increasing in rural areas. The new EU policy of concentrating efforts on the poorest countries of the world has guided the design of cooperation strategies under the 11th EDF with the poorest countries, and with Haiti in particular. These strategies are expected to significantly reduce poverty and inequalities in the region.

1.3.3. Financing for development

The Commission continued to mobilise the EU and Member States to act as one on financing for development and promote a comprehensive and integrated approach to all financing sources and objectives. The Commission Communication ‘Beyond 2015: towards a comprehensive and integrated approach to financing poverty eradication and sustainable development’[27] put forward possible elements of a common EU approach to financing beyond 2015, advocating an integrated approach to all resources and processes. Supported by the Council Conclusions of December 2013[28], the EU approach has been a strong contribution to the international discussions on the financing of the development agenda including beyond 2015.

Accompanying the Communication, the 11th annual EU Accountability Report consolidated reporting on progress against commitments, and provided transparency for the EU and Member States’ actions in support of financing for development. The Report covered all aspects of development finance as framed by the Monterrey Consensus and the Doha Declaration. It showed that mobilising more development financing from all available sources was a necessary, but not sufficient, condition to fight poverty and foster development. It also showed that the EU’s contribution to supporting developing countries went far beyond its ODA.

The EU and Member States have made substantial progress on its commitments concerning private investment, trade, finance relating to climate change adaptation and mitigation, Science, Technology and Innovation (STI) and innovative financing sources and instruments. Moderate progress has been made on the commitments concerning domestic resource mobilisation, debt sustainability, remittances, biodiversity protection and development effectiveness. At the same time, the EU and Member States have still some way to go to reach its collective and individual ODA targets by 2015. The EU’s collective ODA amounted to a total of EUR 56.5 billion in 2013, corresponding to 0.43 % of combined Gross national Income (GNI). Collectively the EU remains the world’s largest donor, providing more than half of total ODA.

In light of international developments, and building on the constructive and open dialogue with all stakeholders on post-2015 financing and reporting, the Council has agreed that the position of the EU and its Member States’ on financing and other means of implementation will be further defined and adapted, including on policy coherence, illicit flows and synergies between funding streams.

1.3.4. Policy Coherence for Development and some/selected related policies

Policy coherence for development

As the EU is a major global actor, its policies can have a strong impact, positive or negative, on developing societies and economies. The Lisbon Treaty requires the European Union to take the objectives of development cooperation into account in all its policies. Besides making an effort to avoid negative impacts by identifying the most damaging consequences of policies and, where possible, amending them, this also entails looking for synergies between the objectives of EU development policies and other EU policies to make them more effective for both EU and developing societies and economies. This principle is referred to as Policy Coherence for Development (PCD)[29].

The Commission issued a PCD work programme to guide efforts in promoting PCD across EU policies for the period 2010–2013. The work programme included goals and targets covering the five priority challenges for PCD: trade and finance, food security, climate change, migration, and security. For each of these challenges, the Commission promoted discussion between non-development and development policy areas in order to attempt to integrate development objectives, the realities of developing countries and the interests and potential impacts of EU policies on developing countries, better into account in EU policy-making.

In 2013, the European Commission published its fourth biennial EU 2013 Report on PCD[30] which was launched during the European Development Days in November. The report, comprising references to various external studies and assessment, highlighted the EU's leading role in promoting PCD and showed growing interest and political will to promote PCD in Member States and EU institutions beyond the Commission. The report presented many good examples of PCD and pointed out some of the remaining challenges where more progress is needed.

The Council Conclusion[31] was adopted in December 2013. The Conclusions reaffirmed the Council's commitment to PCD and called for more regular political and thematic discussions in FAC on development. The Conclusions also called on the Commission to continue developing a stronger evidence base for PCD and encouraged further strengthening of PCD, both within the EU and beyond, particularly in the Post-2015 Development Agenda. Furthermore, the Standing Rapporteur for PCD in the European Parliament announced a draft resolution on the EU 2013 Report. This follow-up process is important for ensuring shared ownership of and commitment to PCD among EU institutions and Member States.

In order to inform policy-making and strengthen the evidence base for PCD, in July 2013, the Commission and EEAS requested Heads of most EU Delegations to provide a first report on PCD-specific country level feedback. These reports were expected in January 2014 and will provide input on the impact of EU policies on a country level basis on PCD processes and initiatives and allow for identifying EU priorities for further progress.

The Commission actively supports progress on measuring PCD through studies to measure the impacts of EU policies on developing countries. For instance, in 2013 the Commission published a study assessing the impacts of biofuel production in developing countries from a PCD perspective[32]. In 2013 the Commission also launched an external study to assess the impact of EU trade policies on developing countries (expected to conclude in Q2 2014). Under the Horizon 2020 framework the Commission launched a call for research to progress the measurement of PCD including evaluating the cost of incoherencies and develop appropriate targets and indicators. Furthermore, exchanges on measuring the development friendliness of policies and their impacts on developing countries have been conducted with EU Member states, the OECD and with relevant policy think tanks.

To raise awareness and promote good practice of PCD public information and communication work included frequent exchanges with civil society and participation in conferences and seminars. The Commission is providing PCD trainings for its own staff and this training is also open to Member States.

Some/selected related policies

Higher education plays a crucial role in producing high quality human resources, in disseminating scientific discovery and advanced knowledge through teaching and educating future generations of citizens, high level professionals and political leaders, who in turn can contribute to better governance, socioeconomic development and cohesion.

The new Erasmus+ programme will contribute to this strategy by offering a balanced mix of actions through two types of mobility actions which will have an impact on the personal development and employability of students and also a structured and sustainable impact on universities and a capacity building action working at both institutional level and on the national systems.

The new Horizon 2020 Marie Skłodowska-Curie Actions will support the career development and training of researchers, with a focus on innovation skills in all scientific disciplines through worldwide and cross-sector mobility.

Furthermore, young people and volunteers from partner countries will be able to participate in projects, youth exchanges and volunteering activities which aim to foster the active participation of youth in society and target young people with limited opportunities.

Research and innovation are means to foster development by enhancing human potential and infrastructures as well as developing new services and products. In addition, research provides evidence in support of development policies.

The communication on ‘Enhancing and focusing EU international cooperation in research and innovation: A strategic approach’[33], adopted by the Commission in 2012, sets “supporting the Union’s external policies” as one of its three main objectives. As foreseen in this communication, roadmaps for further cooperation in research and innovation with key countries and regions started being developed in 2013 and will be finalised in 2014.

DG Research and Innovation continued to invest, through the Seventh Framework Programme (FP7, 2007-2013), in cooperation between researchers in Europe and developing countries that contribute to the achievement of the Millennium Development Goals (MDGs) and other International Commitments such as Rio+20. FP7 has channelled about EUR 192 million for STI projects with over 960 participants from developing and emerging countries within the framework of 325 Specific International Cooperation Actions (SICAs)[34]. SICAs are aimed at encouraging the participation of countries that lack capacity to participate in other topics of the general FP7 Cooperation programme. This is out of a total of EUR 330 million granted in FP7 to more than 2 500 researchers in developing countries from Africa, Asia, Latin America and the Southern Mediterranean region participating in more than 1 500 collaborative projects with European researchers.

Under Horizon 2020 (2014-2020), the new EU Framework Programme for research and innovation, developing countries will continue to participate through the principle of general opening. They will also remain eligible for automatic funding in selected proposals. Moreover, developing countries will benefit from targeted initiatives under various calls under Societal Challenges and Enabling Technologies in Horizon 2020. The first calls for Proposals under Horizon 2020 were launched on 11 December 2013.

1.3.5. Strengthening human rights and good governance

The EU has continued to strive to place human rights and democracy at the centre of its activities. Progress has been made in implementing actions included the EU Action Plan on Human Rights and Democracy. Highlights include completion of a worldwide network of human rights and democracy focal points, progress on economic social and cultural rights, a rights based approach in development (which was incorporated in the Multiannual Financial Framework 2014-2020 and notably in the Development Cooperation Instrument (DCI), and is being taken into account during the actual development aid programming exercise), revised guidelines on the death penalty, children and women’s rights, as well as establishing guidelines for LGBTI (Lesbian, gay, bisexual, transgender and intersex) people and FoRB (Freedom of Religion or Belief) issues. Political dialogue, including under the Cotonou Agreement, played an increasingly key role in promoting respect for human rights. Throughout the year the EU has continued to actively support civil society organisations and specific human rights dialogues were held with over 20 countries. In addition the work of the EU Special Representative for Human Rights has enhanced coherence and visibility of human rights in the EU’s foreign policy.

The EU has continued to be a committed actor on human rights at the UN, contributing towards building and defending strong standards and mechanisms for the promotion and protection of human rights at the UN. In particular the EU actively participated in the work of the Human Rights Council and the UN General Assembly and presented several initiatives on particular countries of concern as well as important thematic issues.

In 2013, EU continued to support electoral processes around the globe by sending Election Observation Missions (EOMs) and Electoral Expert Missions (EEMs) as well as providing electoral assistance, and support to domestic election observers. EOMs were deployed to Jordan, Kenya, Paraguay, Pakistan, Mali, Guinea Conakry, Madagascar, Kosovo, Nepal and Honduras. EEMs were sent to Bhutan, Cambodia, Togo, Swaziland, Rwanda, Maldives, Zimbabwe and Mauritania.

Among the actions included in EU Action Plan on Human Rights and Democracy is the completion of work on nine pilots developing new methods of work in support of democracy and democratisation. These pilot countries were Bolivia, Ghana, Benin, Indonesia, Mongolia, Solomon Islands, Kyrgyzstan, Maldives, and Lebanon. The work was done jointly by EEAS, DG Development and Cooperation (DEVCO) and EU country delegations and focused on the six action areas identified in Council conclusions from 2009: coherence, coordination, dialogue, country-specificity, partnership, international cooperation, mainstreaming, and visibility. Clear deliverables for each country were a democracy profile and a democracy support action plan. To the extent that the local context permits, work is ongoing to deepen cooperation between the EU, EU Member States, the partner governments and other key actors. A second generation of pilots was launched towards the end of 2013 that build on the results of the first tranche and aiming for a global roll-out of the initiative by the end of 2015.

The European Endowment for Democracy, a joint project by the EU and its Member States, became operational in 2013. The European Endowment for Democracy assists pro-democratic civil society organisations, movements and individual activists acting in favour of a pluralistic multi-party democratic system regardless of their size or formal status.

1.3.6. Mainstreaming of cross-cutting issues

Environment and climate change

The ‘Agenda for Change’ stipulates that “EU development policy should promote a ‘green economy’ that can generate growth, create jobs and help reduce poverty by valuing and investing in natural capital”. In line with this commitment, and building on the outcomes of Rio+20, the Commission has initiated measures to promote a transformation towards a green economy in partner countries through the development of new training modules and the organisation of awareness raising workshops. A paper outlining the approach to integrate the green economy into the EU’s development and cooperation programmes is being prepared and should be finalized by the end of 2014.

Climate change remains an important cross-cutting issue in the EU’s development assistance and efforts have continued and enhanced to integrate and mainstream actions for reducing greenhouse gas emissions and to adapt to the impacts of climate change across the portfolio of programmes and initiatives. Training workshops and regional seminars for EU delegations were organised to train staff on the integration of environment and climate change in development and cooperation and on the green economy. In 2013, a new course was introduced for EU staff on country-led environmental and climate change mainstreaming. This course built on the successful experience of the GCCA in training over 200 senior officials from Ministries of Finance, Planning and Environment around the world in an effort to catalyse the mainstreaming of climate issues in national planning and budgeting process.

On the other hand, it is increasingly acknowledged by the international community that conserving healthy natural ecosystems and averting global biodiversity loss are key to ensuring sustainable development and human well-being. EU development and cooperation is fully committed to pursuing this goal and therefore continues its efforts to properly address the biodiversity-poverty eradication linkage. This way, it contributes to the EU’s biodiversity strategy to 2020, in particular target 6, as well as the Convention on Biodiversity CBD Strategic Plan for biodiversity 2011-2020 and the Aichi Targets[35]. The launching of the ‘Biodiversity for Life’ flagship initiative provides the conceptual framework able to address these biodiversity challenges and to deliver on the Hyderabad commitment to double international funding for biodiversity in developing countries by 2015.

The Commission measures aid that contributes to meeting the objectives of the three Rio Conventions' objectives on biodiversity, climate change and desertification using the ‘Rio marker’ system. This system relates to the reporting to the OECD‘s Development Assistance Committee (OECD DAC) through its Creditor Reporting System database. Based on this tracking it is estimated that around to EUR 900 million were committed to climate change activities and EUR 300 million to biodiversity activities in 2013.

The tables below show the variation in the proportion of EU’s development assistance that related to climate change and biodiversity during the 2007-2013 Multi-annual Financial Framework.

Year || Total (revised) || Total portfolio (M€) || % of Total portfolio

2007 || 492,075,527 || 7,350,000,000 || 6.7%

2008 || 401,483,928 || 8,480,000,000 || 4.7%

2009 || 722,290,336 || 7,497,000,000 || 9.6%

2010 || 600,215,920 || 6,843,000,000 || 8.8%

2011 || 653,935,708 || 7,454,000,000 || 8.8%

2012 || 790,917,567 || 8,735,000,000 || 9.1%

2013 || 876,040,105 || 9,948,300,000 || 8.8%

2007-2013 || 4,536,959,092 || 56,307,300,000 || 8.1%

|| || ||

|| || ||

Year || DCI (revised) || DCI total || % of DCI total

2007 || 125,323,161 || 2,195,000,000 || 5.7%

2008 || 281,960,958 || 2,321,000,000 || 12.1%

2009 || 265,382,758 || 2,419,000,000 || 11.0%

2010 || 257,307,920 || 2,462,000,000 || 10.5%

2011 || 357,427,070 || 2,591,000,000 || 13.8%

2012 || 315,089,600 || 2,697,000,000 || 11.7%

2013 || 220,920,000 || 2,715,400,000 ||

2007-2013 || 1,823,411,467 || 17,400,400,000 || 10.5%

|| || ||

Year || ENPI (revised) || ENPI total || % of ENPI total

2007 || 161,626,400 || 1,666,000,000 || 9.7%

2008 || 63,260,741 || 1,634,000,000 || 3.9%

2009 || 38,993,272 || 1,576,000,000 || 2.5%

2010 || 93,600,000 || 1,735,000,000 || 5.4%

2011 || 123,241,494 || 1,976,000,000 || 6.2%

2012 || 236,130,750 || 2,312,000,000 || 10.2%

2013 || 232,509,903 || 2,486,700,000 || 9.4%

2007-2013 || 949,362,560 || 13,385,700,000 || 7.1%

|| || ||

Year || EDF (revised) || EDF || % of EDF portfolio

2007 || 205,125,966 || 3,489,000,000 || 5.9%

2008 || 56,262,230 || 4,525,000,000 || 1.2%

2009 || 417,914,306 || 3,502,000,000 || 11.9%

2010 || 249,308,000 || 2,646,000,000 || 9.4%

2011 || 173,267,144 || 2,887,000,000 || 6.0%

2012 || 239,697,217 || 3,726,000,000 || 6.4%

2013 || 422,610,202 || 4,746,200,000 || 8.9%

2007-2013 || 1,764,185,065 || 25,521,200,000 || 6.9%

Culture

Culture continued to be supported as a cross-cutting dimension of economic development, social inclusion, freedom of expression and promotion of diversity. In 2013 more than seventy projects have been awarded under three calls for proposals covering Neighbourhood countries, the African, Caribbean and Pacific (ACP) region and the whole developing world.

It is also important to highlight that the ‘Media and Culture for development in the South Mediterranean region’ call for proposals will result in the distribution of about one hundred grants via the newly developed sub-granting mechanism, which allows EU-funded projects to redistribute their financial support to other parties.

1.3.7. Cooperation with non-state actors and local authorities

Civil Society

In September 2012 the European Commission adopted the Communication ‘The roots of democracy and sustainable development: Europe’s engagement with Civil Society in external relations’[36] and 2013 proved a fundamental year in translating it’s provisions into substantive actions. The new policy aims at achieving an enhanced and more strategic approach to EU engagement with local civil society organisations (CSOs) in developing, neighbourhood and enlargement countries. It will focus on civil society’s contribution to building stronger democratic processes and systems of accountability, achieving better development outcomes through constructive relations between states and CSOs, and direct support to CSOs. Due consideration has been given to country-specific issues, in particular where there are highly volatile political or security contexts.

The EU and Member States are also committed to developing country roadmaps for engaging with CSOs in the long term to improve the impact, consistency, predictability and visibility of EU actions. A guidance note for EU Delegations on EU Country Roadmaps for Engagement with Civil Society was developed in 2013.

At the regional and global levels the EU is committed to supporting CSOs, networks and alliances in tackling global challenges, monitoring PCD, delivering on aid commitments, and promoting global citizen awareness. In November 2013, the ‘Policy Forum on Development’ was launched after an interim phase to develop its structure, membership, and work programme. It gathers together representatives of CSO networks (Non-Governmental Organisations (NGOs), Trade Unions, Cooperatives, Chambers of Commerce, Foundations, etc.) and local authority (LA) networks from the EU and partner countries twice a year.

Local Authorities

In May 2013, the European Commission adopted the Communication ‘Empowering Local Authorities in partner countries for enhanced governance and more effective development outcomes’. It promotes a more strategic EU engagement with LAs and their Associations in partner countries in order to unlock their full potential, focusing on good governance at the local level, and a territorial approach to development. It will support decentralisation and reforms, help capacity development of LAs, propose smart solutions for sustainable urbanisation, and reinforce Associations of LAs at national, regional and international levels. The policy will be implemented over the 2014-2020 period by EuropeAid and EU Delegations in partner countries through policy dialogue and different EU instruments for external cooperation, in particular, with LAs.

DEAR

Following the publication of a Staff Working Document on Development Education and Awareness Raising (DEAR) in Europe in December 2012, EuropeAid has deepened its commitment to critically inform and engage EU citizens in development issues.

1.3.8. The role of the private sector

The importance of private sector development for growth is widely recognised. In the first place, the private sector creates jobs and income, which are the best insurance against extreme poverty. In the second, the private sector also provides goods and services to the poor, such as food, telecommunications and financial services. Some businesses provide very specific products and services such as microfinance, micro insurance or generic medicines. A dynamic private sector can therefore be a source of innovation to meet the specific needs of the poor. Furthermore, the private sector generates tax revenue which enables public authorities in partner countries to provide basic infrastructure, create a business-enabling environment and to provide social safety nets to the poorest. Lastly, a stronger and more diversified private sector can help to strengthen civil society by empowering marginalised groups, generating income and offering wider access to education and health services. Overall, private sector development is one of the most effective ways to achieve the objectives of sustainable growth and poverty reduction.

The importance of improving the business environment, promoting a competitive local private sector and improving access to business and financial services was reaffirmed in the ‘Agenda for Change’ in 2011. In addition, it acknowledged that a more active engagement with the private sector is not limited to tapping the potential of businesses to stimulate and sustain growth and improve people's lives, but also to leverage additional private funding for development assistance. It therefore emphasised the importance of developing new ways of engaging with the private sector, notably to leverage its activity and resources to deliver public goods and to extend the scope and scale of the EU regional blending facilities to further leverage financial resources for development.

In 2013, the Commission launched a study to increase knowledge and assist policy development on how to engage with the private sector in development and to extend the financial blending activities of the EU. The study will explore substantive possibilities and options for improving and scaling up existing blending mechanisms, including the development of private sector involvement within these facilities. It will also provide solid recommendations for improving engagement with the private sector including enhancing public private partnerships and dialogue. Results of the study are expected during 2014.

The Commission also finalised two thematic Global Evaluations of the EU’s Support to Trade-related Assistance Support and Private Sector Development in Third Countries. All these elements, and an extensive on-going consultation process with a wide range of actors, contributed to the preparation of a new Communication on ‘Strengthening the Role of the Private Sector in Achieving Inclusive and Sustainable Growth in Developing Countries’, officially launched in October 2013.

The Communication, planned to be adopted in the first half of 2014, will enable the EU to formulate in more operational terms its strategy for implementing the objectives in the ‘Agenda for Change’ to achieve sustainable and inclusive growth and engage more actively with the private sector.

1.4. Better and more effective aid 1.4.1. Aid effectiveness and joint programming

The Fourth High Level Forum on Aid Effectiveness in Busan in 2011 was a key framing event for aid and development effectiveness. It placed a clearer emphasis on results, strengthening aid's role as a catalyst for development results and went beyond the traditional aid effectiveness issues to cover issues like climate change finance, private sector and south-south cooperation. The High Level Forum agreed to set up a new inclusive global governance structure, the Global Partnership for Effective Development Cooperation. The EU is one of the three representatives of donor partners in the 15 strong Steering Committee, which first met in December 2012. In 2013, there were three more meetings in Bali, Addis Ababa and Washington.

Joint Programming has emerged as a core element of the EU’s common aid effectiveness agenda, based on the Council Conclusions of November 2011[37]. Under Joint Programming, EU Delegations, together with Member State and ECHO field offices and increasing involvement of the European Investment Bank, develop a shared analysis, define a common strategic vision, mobilise their different strengths and capacities according to their comparative advantages, and decide on a division of labour. Joint Programming processes are open to other like-minded donors; in most cases they are led and facilitated by EU Delegations.

Following the successful launch of the Joint Programming process in a number of front-runner countries, EU Heads of Mission in countries with potential for Joint Programming were contacted in early 2013 with the majority returning positive replies. In most countries Joint Programming is planned to start within four years, in line with the timing of the national development plans of the partner country.

By the end of 2013:

Final or draft Joint Programming documents were finalised in five countries (underlined), with nine more being finalised (Burma/Myanmar, Burundi, Cambodia, Chad, Ghana, Guatemala, Laos, Mali, Namibia, Paraguay, Rwanda, Senegal, South Sudan and Togo); Joint analysis and response documents had been produced in three countries (underlined) and under preparation in four (Bangladesh, Bolivia, Comoros, Côte d'Ivoire, Ethiopia, Liberia and Kenya); Preparatory work started in 13 countries (Algeria, Georgia, Honduras, Malawi, Mauritania, Mozambique, Nepal, Niger, Nicaragua, Palestine, Tanzania, Uganda and Yemen); Joint Programming work was scheduled to start for 2015-17 in six countries (Benin, Burkina Faso, El Salvador, Sierra Leone, and Philippines); and, There is a recognised potential, while the decision to go ahead with Joint Programming has still to be made, in 13 countries (Afghanistan, Armenia, Egypt, Haiti, Jordan, Libya, Moldova, Morocco, Pakistan, Somalia, Tunisia, Vietnam, Zimbabwe).

Joint Programming countries are widely spread geographically and include a number of fragile states such as Burma/Myanmar, Mali, and South Sudan. The Joint Programming process is, where possible, led by the partner country government and aligned to their development strategies and synchronised to their planning cycles. It is conducted primarily at partner country level to respond to specific needs and the situation on the ground. All donors involved in the process develop their own bilateral implementation plans, but they will be aligned to the joint response. Joint Programming takes account of donor-wide strategies as far as they already exist to avoid parallel processes and duplication. The scheme is open to other committed donors.

As the EU, the Member States and other donors progress towards joint analysis and multi-annual joint response strategies, Joint Programming has also a positive impact on the transparency of our work and actions, on improved EU coordination and strengthened political dialogue, and on increased predictability and impact of our policies and financial support with our partner countries.

1.4.2. Cooperation with the donor community

OECD

Close cooperation with the OECD on develop­ment issues continued at all levels. Throughout the year, the Commission participated actively in the work of the OECD Development Assistance Committee (DAC), of which the EU is a full member. In particular, the Commission contributed to discussions at senior and ministerial level, covering issues of relevance for the future global development agenda, such as the post-2015 development goals, the Global Partnership for Effective Development Co-operation, and external financing for development. The latter subject was the subject of the June Tidewater conference in which Commissioner Piebalgs participated. The EC also contributed to promoting a more active involvement for emerging donors in the OECD's work. Four EU countries – the Czech Republic, Poland, the Slovak Republic and Slovenia (plus Iceland) – joined the DAC, with EU support, in 2013.

Bilateral relations with traditional donors and emerging economies

As part of the broader EU-US strategic dialogue, the Commission chaired regular consultations with its US counterparts (The US Agency for International Development (USAID) and the US State Department) in the context of the EU-US development dialogue. This was established in 2009 with the aim of deepening cooperation on the ground and at policy level and last year was able to raise political awareness at global level around the post-2015 development agenda and other issues of common interest such as resilience, energy, private sector development and human rights. It was also able to better coordinate actions in the field. As an example of enhanced coordination, a number of EU delegations and USAID offices are now closely cooperating, sharing country assessments, comparing strategies and exploring synergies at sector level. Strong synergies are being developed in food security and resilience, sectors where both sides are very active, notably in the Sahel and the Horn of Africa.

Our development dialogue with Japan was resumed in 2013 with consultations held in Tokyo in May and further impetus in the relationship was provided by the EU-Japan summit in November 2013. Field cooperation between the Japan International Cooperation Agency (JICA) and EU Delegations has been enhanced. Contacts have also been developed throughout 2013 with Korea on development related issues. Our close relationship with Australia in the development field has continued to develop with joint implementation programmes in Fiji and South Sudan.

In 2013, emerging economies have become more involved in global processes and fora on global development, such as the Busan Global Partnership, G20, post-MDG High Level Panel, and the BRICS (Brazil, Russia, India, China and South Africa) or IBSA (India, Brazil, South Africa) fora. The Commission continued to deploy efforts to engage with these new donors and to progressively shift its relationships with them away from bilateral cooperation through projects and programmes towards more strategic partnerships on global and regional development issues.

Contacts have been established with relevant authorities in China on global development issues (Post-2015, Busan, financing for development) and on the sharing of lessons learned in poorer countries. The EU-China summit in November 2013 endorsed the launch of a senior level development dialogue. Similar discussions have also started with India.

1.4.3. Cooperation with international organisations

United Nations

During the course of 2013, the European Commission was involved in different UN related activities having an impact on development. It participated actively in the main UN conferences, contributed to debates at the UN General Assembly (UNGA) and in the UN Economic and Social Council (ECOSOC) and launched preparatory work in anticipation of the EU’s active participation in the UN Third International Conference of Small Island Developing States (SIDS) in September 2014.

Within the framework on the UNGA the Commission contributed actively in several High Level Meetings with an impact on development, notably the High Level Meeting on Disabilities and Development on 23 September 2013, the inaugural meeting of the High Level Political Forum on Sustainable Development on 24 September 2014, the Special Event to follow up efforts made towards achieving the MDGs on 25 September 2013 and the High Level Dialogue on Migration and Development held on 3 to 4 October 2013. The meetings resulted in the adoption of ‘outcomes documents’, for which the EU provided relevant input.

Over the year, the Commission contributed to the adoption of more than 50 UNGA Resolutions with a direct impact on development. The Commission also contributed to the adoption of several Resolutions of the UN ECOSOC related to development and to the outcomes of the 51st Session of the UN Commission on Social Development and of the 57th session of the UN Commission on the Status of Women. The Commission also actively contributed to the work of the Sustainable Development Goals Open Working Group and the Intergovernmental Committee of Experts on Sustainable Development Financing.

The Commission was involved in major UN Secretary General initiatives in the field of development, such as the High Level Panel on the Post-2015 Development Agenda, Sustainable Energy for All, the Scaling Up Nutrition Movement and the Global Education First Initiative.

The Commission continued its financial support for the UNESCO (United Nations Education, Scientific and Cultural Organisation) Expert Facility whose aim is to contribute to the implementation of the UNESCO 2005 Convention on the Protection and Promotion of the Diversity of Cultural Expressions.

Working in partnership with the UN system and ensuring a fruitful cooperation with UN Agencies, Funds and Programmes (UN AFPs) remained an important objective for the Commission with a particular attention to communicating results that were jointly achieved. On food and nutrition security, a key priority for the EU, the annual UN-EU Saving and Improving Lives series report (‘Partnership for food and nutrition security 2008-2012’[38]) was released. We contributed to the EU-UNDP (United Nations Development Programme) 10-year anniversary report of the Strategic Partnership Agreement to be published in February 2014 and also produced an assessment of our cooperation with United Nations Industrial Development Organisation (UNIDO), one year after the signature of the Memorandum of Understanding. Annual Senior Official Meetings with UNIDO (including the participation of Commissioner Piebalgs) and United Nations Office on Drugs and Crime (UNODC) were organised in Brussels. Finally, together with our EU Delegation in Geneva, we engaged actively with the Unite Nations Conference on Trade and Development (UNCTAD) Trade and Development Board and the two UNCTAD Commissions.

G20

During 2013, the Russian G20 Presidency concentrated on Food Security, Human Resource Development, Financial Inclusion, Infrastructure, Domestic Resource Mobilisation and support to the post-2015 process. All of this was underpinned by an Accountability Framework. A St. Petersburg Development Outlook was agreed which sets out some of the key achievements from the original 2010 Seoul Action Plan on Development and indicates how the next Multi-Year Action Plan on Development will be finalised. The EU continued to press for concerted G20 action on Inclusive Green Growth as part of the Development Agenda. The Green Growth agenda is designed to help structurally transform economies on to a climate friendly path over the medium term and to help build the capacity of developing countries to design and implement Green Growth policies and strategies. The EU has also pressed hard for action on the critically important issue of Fossil Fuel Subsidy Reform.

As the 2014 G20 Presidency, Australia initiated discussions, at the end of 2013, on its priorities for the G20 Development Working Group. It narrowed the Development agenda even further by prioritising Financial Inclusion, Infrastructure and Domestic Resource Mobilisation. The EU is supporting all three priority areas by taking action to involve Member States in the work to drive down the costs of sending remittances, by linking the infrastructure work to a German-led initiative to involve the private sector in green infrastructure investment, and by developing programmes to support tax authorities in Lower Income Countries (LICs).

G8

In 2013, the main focus of the development-related work of the G8 continued to be on agriculture and food security. The ‘New Alliance to improve food security and nutrition' was expanded. The EU continued to play an active role with other G8 leaders to build the partnership between governments in Africa, G8 countries and the private sector to lift 50 million people out of poverty in the next ten years through supporting agricultural development. During 2013 the Commission provided strong support to the UK initiative on Trade in Africa. A UK-led G8 Transparency Initiative covered several important areas including: the Extractive Industries Transparency Initiative, Aid Transparency, tax transparency and reducing money laundering and improving tax systems in developing countries. These are all areas where the EU is very active. Support was provided specifically in the context of Extractive Industries where the EU Accounting Directive is an important new legislation. The UK presidency led a process to create a comprehensive G8 Accountability Report. The G8 also continued to deliver on the Deauville Partnership with Arab Countries in Transition.

International Financial Institutions

Thanks to the 2011 initiative to create a Taskforce for an enhanced dialogue with international financing institutions in 2013 EuropeAid intensified its overall engagement with the International Monetary Fund (IMF), World Bank Group (WBG), African Development Bank (AfDB), Asian Development Bank (AsDB) and Inter-American Development Bank (IDB).

Based on a set of converging development policy priorities, the Commission strengthened strategic partnerships with the IMF for Sub Saharan Africa and Middle East and North Africa (for example on PFM, vulnerability and shock absorption mechanisms, fragility, and capacity building) and with WBG and AfDB on Africa (for example on budget support in fragile contexts, sustainable energy for all, food and nutrition security).

With the IDB, the partnership was strengthened with a Memorandum of Understanding signed by Commission Vice President Rehn, Commissioner Piebalgs and President Moreno and the launch of a joint action plan on priority areas of shared interest including budget support, citizen security and regional initiatives and financial blending. The Commission also engaged in various contacts between EuropeAid and the AsDB, for example on the regional economic outlook, post-2015 development framework and regional integration.

Finally, Commissioner Piebalgs addressed the 87th and 88th Development Committee meeting, as observer, at the IMF/WB Spring and Annual meetings, in April and October in Washington.

1.5. Outlook 2014

To deliver on its commitments and keep its long-term promises, in 2014 the EU will pursue and ste