Communication from the Commission to the European Parliament, the Council, the Economic and Social Committee and the Committee of the Regions - Towards a global partnership for sustainable development
Date: 2002-02-13
Institutions: European Commission
Subjects: developing countries, environmental policy, globalisation, international cooperation, natural resources, poverty, sustainable development

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 13.2.2002
COM(2002) 82 final

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

Towards a global partnership for sustainable development

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TABLE OF CONTENTS

1.

2.

3.

3.1.

3.2.

3.3.

3.4.

3.5.

3.6.

4.

The case for a global partnership .............................................................................. 3

The challenge of integrating markets, governance and internal policies through a
global partnership ..................................................................................................... 4

European Union’s contribution: meeting priority objectives...................................... 6

Harnessing globalisation: trade for sustainable development..................................... 7

Fighting poverty and promoting social development ................................................. 9

Sustainable management of natural and environmental resources ........................... 11

Improving the coherence of European Union policies ............................................. 14

Better governance at all levels ................................................................................ 15

Financing sustainable development......................................................................... 17

Implementing and reviewing the strategy................................................................ 19

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

Towards a global partnership for sustainable development

1.

THE CASE FOR A GLOBAL PARTNERSHIP

To be sustainable, development must strike a balance between the economic, social and
environmental objectives of society, in order to maximise well-being in the present, without
compromising the ability of future generations to meet their needs.

that

sustainable
The European Union has already established an internal
development1. In endorsing this strategy, the Göteborg European Council recognised, in June
2001,
the external dimension needed to be further developed. It also invited the
Commission to consider the Union’s contribution to global sustainable development and to
identify strategic components for a “Global Deal” at the Johannesburg World Summit on
Sustainable Development in 2002. This Communication deals with both these aspects.

strategy for

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Since the Rio Conference in 1992, many new initiatives have emerged to address specific
elements of sustainable development2, but overall progress has been slow. A new impetus is
thus required in order to tackle, in a more comprehensive and effective way, the many
remaining challenges, as well as new challenges arising from globalisation.

Many countries across the world have benefited from increased economic growth, notably
through progressive market opening and liberalisation of Foreign Direct Investment (FDI)
regimes. Since 1960 world trade has increased fifteen-fold and global per capita incomes have
doubled. Experience shows that globalisation can continue to generate economic growth and
productivity.

Developing countries have advanced on many fronts3. Their exports and production have
diversified significantly; life expectancy is higher and, for many, life has improved. Yet, for
too many countries and people, poverty, unemployment and exclusion remain4. Half of the
world’s population lives on less than $ 2 per day. Inequality between and within countries is
increasing. In 1960, the income of the richest fifth of the world's population was 30 times
larger than that of the poorest fifth: today it is 90 times larger. The richest fifth account for

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A Sustainable Europe for a Better World: A European Union Strategy for Sustainable Development
COM(2001) 264
Examples as diverse as the Kyoto protocol on global warming and the commitment, in the Doha
ministerial declaration, to the objective of duty-free, quota-free market access for products originating
from Least Developed Countries
Developing countries have diversified their economies, and manufacturers now represent 70% of their
exports, against just over a quarter 30 years ago. In East Asia, six people out of ten were living on less
than $1 a day in the mid-70s; now it is two out of ten
Incomes in Sub-Saharan Africa have fallen by an average of 1% per year in 1975-1999; 46% of people
still live on less than $1 a day, and life expectancy is 49 years compared to over 60 in all other regions

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total private consumption5. About one billion women and men are
nearly 86% of
unemployed, under-employed or working poor, 250 million children are working world-wide,
and some 80% of the working age population do not have access to basic social protection6.

In addition, many natural resources, such as water, land and soil, biodiversity, forests and fish
stocks are already being exploited at or beyond their limits, causing serious damage to the
environment.

Growing inequality is not just a problem in the developing world. Rich countries have seen
similar trends in recent years. Such trends have many causes, most of which are unrelated to
globalisation. Technological progress, for example, has led to major changes in employment
and put more of a premium on knowledge-based workers world-wide.

Inequalities in the way knowledge is produced and used are widening the gap between poor
and rich countries. The development and use of new technologies present both an opportunity
and a challenge. They can generate broader-based enterpreneurship and faster economic
growth while contributing to the more efficient use of resources.

Humankind is increasingly aware that it shares a common and interlinked future and that
conflict and injustice on the other side of the world can have direct repercussions close to
home. In addition, poverty and deprivation can provide a breeding ground for discontent and
anger, creating conditions in which ethnic and religious issues are easily exploited and
magnified.

The world is faced with a serious “global governance gap”. Promising steps have been taken
towards more effective global governance with the Bonn and Marrakech agreements on
climate change and the launch of the Doha Development Agenda. In both the European Union
played a leading role. In order to make globalisation sustainable there is a need for a much
better balance between global market forces on the one hand and global governance and
political institutions on the other. Enhancing good governance throughout the developing and
the developed world and at a global level is an urgent priority. It should be based on
widespread participation of all stakeholders at all levels.

2.

THE CHALLENGE OF INTEGRATING MARKETS, GOVERNANCE AND INTERNAL
POLICIES THROUGH A GLOBAL PARTNERSHIP

The rapid expansion in the movement of goods, services, capital, technology, ideas and
people around the world – globalisation – offers the prospect of stimulating economic growth
and productivity and improving living standards. It can also increase global resource
efficiency as the liberalisation of trade allows national economies to make the most of their
comparative advantages and facilitates economies of scale.

Globalisation involves costs as well as benefits. Increased global economic activity can
result in negative pressures on the environment and in risks for social cohesion if it goes
uncontrolled. Intensive energy use, unsustainable exploitation of natural resources and
unwillingness to add the environmental costs to the costs of production and transport are now
threatening the resource base on which economic and social development depend.

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6

UNDP Human Development Report 1998
ILO estimates

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Technological progress, market integration and international competition tend to bring about
structural changes in the economy and the fabric of society.

At the source of these unsustainable trends is the complex relationship between markets,
global governance and national policy. A collective effort is required at global, regional and
national level to provide a framework in which market forces can be harnessed to maintain
and increase growth and to create jobs, while preserving the environment for future
generations and strengthening social cohesion.

The crucial efficiency gains from trade liberalisation have been limited by lingering
protection in the very sectors where developing countries’ comparative advantages often lie.
In addition, the above gains involve adjustment costs. Rapid restructuring brings winners and
losers, and unless properly managed it can become unsustainable – economically, socially and
environmentally. For example, even in countries that have seen rapid growth rates, or are rich
in natural resources, poverty, unemployment and underemployment remain. Rapid growth
tends to increase inequalities, particularly in the early stages, as certain sectors of the
population and certain regions benefit disproportionately. This has been the case in many
emerging economies, where the benefits of growth have not been distributed equitably,
resulting in more disparity in average incomes between richer and poorer regions, and sectors
of the population.

Developing countries’ internal policies are vital for development opportunities. Many
countries in the developing world – particularly the Least Developed Countries (LDCs) –
have not benefited from globalisation because they are caught in poverty-trap conditions of
low income,
low investment and subsistence-based economic structures. Private capital
inflows can provide developing countries with vital additional sources of financing for
development tools, like technology acquisition and human resource development. Foreign
Direct Investment (FDI) needs a favourable investment climate, macro-economic stability,
trade openings and institutional and legal
reform. Openness without sound financial
institutions and macro-economic policies can also make countries more vulnerable to
financial crises. Other domestic policies, in the areas of taxation, income redistribution,
respect for core labour standards rights and good governance including the fight against
corruption are equally important. Investments in health, education, environmental protection
and technology have an important contribution to make. They are a prerequisite for genuinely
sustainable development.

Investment by multinational companies (MNEs) is usually more stable than short-term
capital flows and can bring major benefits, e.g. in terms of technology transfer and enhancing
the export capacity of the host country. However, global expansion of MNEs is highly
concentrated in certain regions of the developing world, with little investment in the poorest
countries. It also poses significant issues for the maintenance of competition in some sectors.

Tackling global problems needs simultaneous and well co-ordinated action from all countries.
It will only succeed if all commit themselves to making politically challenging choices. What
is needed is a global partnership which embraces all stakeholders. This means ensuring that
civil society and the social partners are engaged in the process from the beginning. Economic
liberalisation and thorough, sound macro-economic policies must be accompanied by
strengthened domestic and multilateral rules and international co-operation.

Industrialised countries have important responsibilities in promoting sustainability
initiatives – first and foremost by putting their own house in order, and by supporting a move
to sustainable production and consumption patterns; in addition, by ensuring more consistent

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market opening, increased public and private financing of development co-operation, as well
as better functioning and greater stability in the international financial system. All their
policies – internal and external – should integrate sustainable development goals and take into
account global needs. As reflected in the Rio notion of common but differentiated
responsibilities, major consumer societies by definition offer the greatest scope for action to
relieve pressures on the world’s natural resource base. Rich nations have to work harder still
to promote social cohesion and high levels of public health and consumer protection at home,
as well as strengthened domestic and global governance.

The international institutions need to make an optimum contribution to such a partnership.
The United Nations system, the Bretton Woods institutions, the WTO and the ILO need to
work consistently towards sustainable development. The UN system should take a lead in
developing a global governance structure for sustainable development, given its role in the
environmental, social and economic spheres, and its universal membership.

international classifications;

The magnitude of the problems may be different, but inequalities do not conform to borders
or
reveal
significant disparities within rich countries, even within their cities. Global partnership means
recognising that there are lessons to be learned between rich nations themselves, as well as
between rich and poor. Unless all nations are open to those lessons, none of us will benefit
from progress, which is both inclusive and lasting.

the most basic measures,

like life expectancy,

The European Union is well placed to assume a leading role in the pursuit of global
sustainable development. It is the world’s largest donor of development aid, the world’s
biggest trading partner, and a major source of direct private investments. It has developed and
promoted a great number of clean technologies.

Throughout its own evolution, the European model of integration has been based on pursuing
mutually supportive strategies for stable economic growth,
social development and
environmental protection.
Investing in a shared future with its closest neighbours is
fundamental to the European Union’s own long-term political stability. More especially,
European Union enlargement is based on a programme of assistance which aims at political
stability, sound economic conditions, social cohesion, and environmental sustainability. This
will provide valuable experience for tackling the same challenges at global level.

3.

EUROPEAN UNION’S CONTRIBUTION: MEETING PRIORITY OBJECTIVES

This chapter sets out the European Union’s contribution to global sustainable development
through a comprehensive and integrated set of actions, which complement
the strategy
endorsed by the Göteborg European Council. They address not only the three inter-related
components of sustainable development – economic, social and environmental – but also the
necessary pre-condition for success: greater coherence of European Union policies, improved
governance at all
the necessary
policies.

levels, and increased financial resources to implement

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3.1.

Harnessing globalisation: trade for sustainable development

Ensure that globalisation contributes to sustainable development. To that end:

Priorityobjectives

• Ensure that the developing countries are integrated equitably into the world economy and
liberalisation through

trade and investment

help them to reap the benefits of
complementary policies.

• Provide incentives for environmentally and socially sustainable production and trade.

• Strengthen the international financial and monetary architecture and promote better and
more transparent forms of financial market regulation to reduce global financial volatility
and abuses of the system.

The objective of the European Union’s sustainable development strategy must be to maximise
the benefits of globalisation while minimising the costs.

The Doha Development Agenda (DDA) epitomises the integrated approach to managed
globalisation which the European Union is promoting, and creates the basis for further
changes in the global system. The inclusion of talks on a wide range of issues such as the
environment, competition,
investment and trade facilitation will ensure that market
liberalisation takes place within a broader regulatory framework.

Ensuring the stability of the domestic and international financial system is an important
element of a comprehensive strategy. The economic benefits associated with financial
globalisation derive from intensified international linkages between markets and players. It is
in the nature of stronger linkages that disturbances in one economy are transmitted more
quickly and directly across borders. The risk of financial volatility can seriously hamper
domestic development efforts. By the same token, abuses of the international financial system
in all its forms, and in particular money laundering, tax evasion and the financing of crime,
including terrorism, undermine the stability and integrity of domestic financial and
administrative systems and affect the viability of the international financial system. They can
have far-reaching consequences for security and public finances.

The Doha Development Agenda

In Doha, the members of the WTO agreed the following agenda :

Integrating developing countries more effectively into the trading system
¤ As regards market access for non-agricultural goods, remove barriers to trade, reducing tariff
escalation and tariff peaks in particular as regards products of export interest to developing
countries.

Progressing in the multilateral framework towards the objective of duty-free and quota-free market
access for all products originating from the LDCs and strengthening the Special and Differential
Treatment provisions for addressing the specific constraints faced by Developing Countries, by
making them more precise, effective and operational.

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¤
Agriculture
¤ Comprehensive negotiations on improved market access; and on reductions in all forms of export

subsidies and trade-distorting domestic support.

¤ Non trade concerns reflected in the negotiating proposals to be taken into account.

Special and differential treatment to be an integral part of the negotiations, to be operationally
effective and to enable developing countries to effectively take account of their development needs,
including food security and rural development.

Setting objectives that embrace environmental and consumer concerns and social development needs
¤ Accompanying negotiations including issues like consumer protection, health and the environment,

and a commitment to core labour standards.

Meeting health concerns
¤ Reaffirmation that the Trade Related Intellectual Property (TRIPS) Agreement does not and should
not prevent WTO’s Members from taking measures to protect public health inter alia by
implementing the safeguards foreseen under the Agreement.

Preparing negotiations on investment, competition, trade facilitation and government procurement
¤ Aiming at a balanced framework of rules in these areas to enhance their contribution to trade and

development.

Capacity building and technical assistance
¤ Commitment to a comprehensive strategy for trade-related capacity building both in relation to
existing agreements and in support to full participation in future negotiations, as well as the
implementation of their results.

Global governance
¤ Active co-operation with the ILO, UNEP, Bretton Woods institutions, UNCTAD and other relevant

international environmental and development organisations.

Bilateral and regional agreements must underpin sustainable development, and the European
Union must ensure that its multilateral and bilateral policies are mutually consistent. This also
means addressing regulatory issues
social development,
such as
competition, and investment in a bilateral context. The European Union is promoting deep
integration and regulatory convergence through regional
trade agreements between
industrialised and developing countries, and between the developing countries themselves.

the environment,

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Negotiate constructively in the WTO negotiations to continue the process of establishing a
fair and market oriented trading system, in accordance with the conclusions of the Doha
ministerial conference, with a view to raising standards of
living world-wide, through
further liberalisation and expansion of
trade; promote the participation of developing
countries, in particular the least developed, in the international trade system.

Support developing countries’ efforts to integrate into, and benefit from, the global trading
system,
including through the DDA. Strengthen developing countries’ capacity to
participate in trade negotiation. Help developing countries to overcome supply-side
constraints and improve their trade capacity.

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the Generalised System of Preferences (GSP) for sustainable
Reinforce the role of
development by introducing in 2004 a more modulated system, based on an effective
incentive scheme in accordance with recognised sustainability parameters.

Strengthen the sustainability dimension of bilateral and regional agreements by including
a commitment
to sustainable development and establishing a dialogue to enable
exchange of best practices.

Implement, within the European Union, common approaches to Environment and Export
Credits, building upon the ongoing work in the OECD. Progress will be reviewed in 2003
with a view to assessing the need for a European Union instrument to ensure that Export
Credit Agencies are taking on board sustainable development considerations, including
sustainable technologies.

Reduce the scope for abuses of the international financial system, in particular combating
crime, including terrorism, and its financial mechanisms; prevent and counter money
the Financial Action Task Force;
laundering and financial crime under the aegis of
strengthen supervision, regulation and information exchange policies, especially in tax
havens; and address harmful tax practices.

responsibility by
Encourage European companies’ commitment
supporting adherence to the OECD guidelines for foreign investors, and by developing
initiatives as a follow-up to the Commission’s Green Paper promoting a European
Framework for Corporate Social Responsibility7.

to corporate social

Support closer co-operation between the WTO and international environmental bodies
(UNEP and Secretariats of Multilateral Environmental Agreements), as well as the work of
the ILO on the social dimension of globalisation. Promote the ILO “Decent Work Agenda”8.

3.2.

Fighting poverty and promoting social development

Priorityobjectives

Attain the International Development Targets and the Millennium Development Goals9, in
particular the target of halving extreme poverty10 in the world by 2015. To that end:

• Enhance the quantity, quality, impact and sustainability of development co-operation.

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COM(2001) 366 final
This ILO initiative brings together the goals of rights at work, employment, social protection and social
dialogue in a coherent, development-oriented and gender-equitable vision, guiding economic and social
policy choices. The Commission proposed a comprehensive strategy for the promotion of core labour
standards and improving social governance in the context of globalisation in its communication
COM(2001) 416
In 2000, the UN General Assembly adopted the Millennium Declaration, which embodies eight
Millennium Development Goals: (1) Eradicate extreme poverty and hunger, (2) Achieve universal
primary education, (3) Promote gender equality and empower women, (4) Reduce child mortality, (5)
Improve maternal health, (6) Combat HIV/AIDS, malaria and other diseases, (7) Ensure environmental
sustainability, and (8) Develop a Global Partnership for Development
In the context of the International Development Targets, extreme poverty is defined as "living on $1 per
day or less"

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People are poor when they cannot achieve adequate and sustained standards of well-being, in
terms of security of food supplies, economic, social and environmental security, civil rights
and political empowerment. It is not absolute scarcity of resources which is the key problem
of poverty, but the unequal distribution of resources and opportunities to take advantage of
them. While in material and financial terms, the world as a whole is getting richer, research
indicates that the distribution of that wealth is becoming more unequal. The rise in global
output and wealth creation has been accompanied by growing inequalities between countries,
as well as within many countries, including industrialised ones. These inequalities also extend
to access to health, employment, education, knowledge and environmental goods and
services, such as clean air and fresh water.

Lack of access to resources in some areas, abundant availability and unsustainable
consumption and production patterns in others – all of this has a direct bearing on the state of
the global environment. While high-consumption lifestyles are at the bottom of environmental
degradation in industrialised countries and among rich segments of society world-wide,
pervasive poverty is an equally important root cause. The poor suffer most from a degraded
environment, but they also put severe strains on the environment when they are directly
dependent on natural resources for their daily survival.

Today, close to 800 million people suffer from hunger and under-nourishment11. In recent
years this figure has been declining by an average of around 8 million people per year, which
is far from sufficient to reach the International Development Target of halving the number of
undernourished people by 2015.

Education and good health are key determinants of economic development. Yet world-wide,
around 20% of children have no access to primary education. In a large number of countries
the health and development gains of recent decades have reversed. In particular, the spread of
major communicable diseases, such as HIV/AIDS, tuberculosis and malaria is no longer just a
health issue, but presents a serious threat to sustainable development. Investing in health will
bring huge rewards not only in economic development terms, but also in reducing poverty. It
has been estimated12 that approximately 8 million lives could be saved by 2010 – mainly in
the low income countries – through key interventions against
infectious diseases and
nutritional deficiencies.

Women are disproportionately represented amongst the poor13. The positive relationship
between women’s education, participation in employment,
income levels and child-
bearing/rearing activities is well established. Universal access to core social services, and
in particular basic education, social protection and primary health care, are
rights,
fundamental to breaking the vicious cycle of poverty.

Acute poverty, along with conflict and environmental degradation, can also fuel extensive
population movements of refugees and displaced persons, which can threaten the stability of
neighbouring countries. In addition, voluntary migration to richer countries can be an
attractive option for the more prosperous and higher qualified sections of society. This can
drain developing countries of dynamic and valuable human resources.

11

12

13

FAO, 2001
Report of the Commission on Macroeconomics and Health (Chairman Jeffrey Sachs) to WHO Director
General Dr Brundtland November 2001
Globally, 70% of the 1.5 billion people living in poverty are women. (UNDP Human Development
Report 1995)

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Further the process of
focusing European Union development policy on the central
objective of poverty reduction, to be reflected in the tighter concentration of resources on
LDCs and on the poorest groups in other developing countries.

Ensure that European Union policies effectively contribute to the eradication of hunger, by
promoting simultaneously the availability of, access to, and nutritional quality of food.
Persuade all food aid donors to provide food aid exclusively in the form of grants, so as to
avoid increasing the debt burden on the recipient country. Ensure that, where possible,
these grants are in the form of cash, to allow the recipient country or organisation to
purchase food on local or regional markets, and to avoid undermining the position of local
producers.

Ensure that, within the context of poverty reduction strategies, water and sanitation
services are fully integrated with health and education policies, with a view to improving
substantially access particularly for poor people, to an adequate quantity of safe and
affordable water and to hygienic sanitation facilities.

Integrate further the gender perspective in relevant European Union policies.

Raise the level of investment in health and heighten its important role in sustainable
development, in conjunction with other donors and organisations.

Accelerate and extend European Union action on communicable diseases, notably by
supporting access to, and tiered pricing of medicines, and by supporting prevention
through education.

Give further emphasis to supporting education and training based on international and
European Union’s best practices and with the priority on basic education.

Promote research on issues related to sustainable development. Open up European
Union research programmes to all countries sharing the same interest, with special
attention to areas neglected by private research and/or of particular importance for
developing countries, such as research on medicines for
tropical diseases, cheap
communication tools and appropriate clean and efficient technologies.

3.3.

Sustainable management of natural and environmental resources

Priorityobjectives

• Ensure that current trends in the loss of environmental resources are effectively reversed

at national and global levels by 2015.

• Develop sectoral and intermediate objectives in some key sectors – water, land and soil,

energy and bio-diversity.

Some of the action included in the European Union's internal strategy will be instrumental in
diminishing the ecological impact the European Union has on the rest of the world. By
managing natural resources in a more sustainable manner, and de-coupling resource
consumption and pollution from economic growth, the European Union will also contribute to
global sustainable development.

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Climate change is recognised as the most severe global environmental problem. While the
European Union, as well as high income countries may have the necessary capacity to cope
with the likely impact over coming decades, many developing countries are in a less
privileged situation, and the need for action is even more immediate. Falling crop yields in
Africa or flooding in Bangladesh demonstrate that the poorest countries are particularly
vulnerable.

Climate change and other environmental problems are linked to energy production and use.
Increased energy demand will exacerbate those problems. At present, for two billion people
around the world, wood or charcoal is the only energy source available for cooking and
heating. Responding to their energy needs in a sustainable manner is one of the main
challenges to be addressed in Johannesburg.

Energy consumption and the overall volume of transport are generally lower in developing
countries. This does not, however, prevent developing countries from experiencing a number
of the problems facing industrialised countries, such as congestion and urban air pollution.
The future development of the energy and transport sectors is crucial. For this reason,
investment in energy and transport infrastructure absorbs high percentages of investment in
most developing countries. So it is important to ensure that investment goes to the right
projects – not only from a financial point of view, but also socially and environmentally.
Renewable energy resources, as well as energy savings and improved energy efficiency have
an important potential in terms of sustainable development.

Lack of water resources is also a matter of major concern. Water consumption is increasing
each year by two to three percent. In many places, freshwater resources are being consumed
faster than nature can replenish them. About one third of the world’s population already lives
in countries with moderate to high water stress. In addition, 1.2 billion people (20% of the
world population) lack access to safe drinking water, while 50% lack access to safe
sanitation14. Pollution of rivers, lakes and groundwater remains a concern all over the world.

Desertification and soil degradation continues, while the planet faces continued pressure on
bio-diversity and ecosystems. In Africa, agricultural production losses due to desertification
are estimated at over 8%, reaching 20% in some Asian and Middle Eastern countries.
Southern parts of Europe are already affected15. Global annual net forest losses and forest
degradation continue at high rates, and 25% of mammal species and 11% of bird species are
at significant risk of extinction, mainly due to loss of habitats16.

Over the past 10 years, the incidence of natural disasters has increased. This is due in part to
social factors, such as precarious buildings and settlements, which increase the vulnerability
of poor communities to disasters such as earthquakes and landslides. There are also natural
factors. The El Niño events, associated with floods, droughts, and storms are getting larger
and more frequent. Warming of the surface of the oceans and seas is increasing the frequency
and severity of hurricanes.

Oceans and seas provide an enormous source of life for our planet, and yet they are coming
under increasing threat from human activity. Fishing pressure is depleting stocks17, to the

14

15

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Global Environmental Outlook 2000, United Nations Environment Programme, 1999
Global Environmental Outlook 1, United Nations Environment Programme, 1997
International Union for the Conservation of Nature, IUCN, 2000
The state of world fisheries and aquaculture, FAO, 1998

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detriment of both the marine ecosystem and future fishing. The proportion of damaged reefs
rose from 10% in 1992 to 27% in 2000.

Exposure to hazardous chemicals continues world-wide, affecting human health through the
food chain18. Heavy metals and persistent organic pollutants are of particular concern,
because they remain for many years in the environment.

While these problems are of a global scope and need to be tackled at that level, regional and
sub-regional action is also needed both to prevent environmental degradation and to combat
its effects. For example, in some regions, lack of water resources and land degradation are at
the source of local conflicts, which, if exacerbated, could become security threats. The
European Union should attach particular priority to promoting regional and sub-regional
responses to environment and security challenges within Europe and the Mediterranean.

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Launch an initiative at the World Summit on Sustainable Development on a strategic
partnership with international organisations, governments and stakeholders to promote
sustainable water resource management based on the principle of integrated river basin
management.

Adopt in 2002 a European Union initiative on co-operation in the field of energy and
development within poverty eradication efforts, with a particular focus on the provision of
reliable sources of energy, improved energy efficiency, including energy savings, clean
technologies and development of renewable sources, including capacity and institution
building.

Promote the effective implementation of multilateral environmental agreements, including
the ratification of the Kyoto Protocol.

Replenish by 50% the Global Environment Facility by April 2002 and broaden its mandate
to cover land degradation and deforestation and the Persistent Organic Pollutants (POPs)
Convention.

Develop a European Union action plan by end 2002 on forest
law enforcement,
governance and trade (FLEGT) to combat illegal logging and associated illegal trade and
to strengthen international co-operation to address violations of forest law, and forest
crime.

Encourage investment in affordable, sustainable and environmentally friendly modes of
transport.

Develop a European Union strategy for distant water fisheries to contribute to sustainable
fishing outside Community waters through global and bilateral partnership at national
and/or regional level.

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Global Environmental Outlook 2000, United Nations Environment Programme, 1999

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Integrate disaster prevention into European Union development and environment policies.

Extend the application of the European Union Global Monitoring for Environment and
Security (GMES) initiative to developing countries for the collection, processing and
dissemination of earth observation data and information pertaining to natural resource
monitoring and management, weather forecasting, and as natural disaster preparedness
and mitigation, relevant for users in developing countries, on a regional basis (e.g. Africa)
and/or a thematic basis (e.g. forest cover, desertification).

3.4.

Improving the coherence of European Union policies

Priorityobjectives

Ensure that the objectives of sustainable development are progressively integrated into all
European Union policies, with due respect to both their internal and external dimensions. To
that end:

• Ensure that an impact assessment is carried out for all major policy proposals, analysing
their economic, social and environmental consequences in accordance with the
conclusions of the Göteborg European Council.

• Continue the process of adapting key policies, including the Common Agricultural Policy,
the Common Fisheries Policy, and European Community policies on energy, transport19
and industry to the internal and external objectives of sustainable development.

• Tackle actual or potential problems of coherence whenever European Union policies are

formulated, reviewed or reformed.

Good and coherent governance starts at home. Domestic European Union policies may have
negative ‘spill-over’ effects on other countries, notably in the developing world. In several
important areas, existing European Union policies may also conflict with sustainable
development objectives.

Policy coherence has several dimensions. This makes it a politically challenging concept. The
European Community has taken positive action in a number of areas where policies have or
may have negative effects for developing countries. The most obvious examples are the
General System of Preferences (GSP), which grants trade preferences for developing
countries, and the Everything But Arms (EBA) initiative for least developed countries under
the GSP, which grants duty-free and quota-free access for all LDC exports to the European
Union. Other examples are assistance to help countries meet health and safety standards, thus
limiting any negative effect on exports from those developing countries which apply
legitimate standards.

Nevertheless, a more systematic and far-reaching review of existing and future policies and
action is needed to improve coherence and increase the Union’s credibility in the international
debate.

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Through the development of the actions outlined in the Green Paper on Energy (COM (2000) 769 final)
and the White Paper on Transport (COM (2001) 370 final)

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All European Union institutions shall strengthen internal co-operation and co-ordination
procedures with a view to improving policy coherence. In this context, the Commission
will, by the end of 2002, establish a coherent methodology for impact analysis to assess
the economic, social and environmental consequences of all major policy proposals.

The objective of promoting sustainable development in agriculture is part of the European
Community policy, particularly since Agenda 2000, and will continue to be pursued in the
Mid Term Review which will be presented later this year.

The proposals on the Common Fisheries Policy, to be presented in 2002, will include the
development of long term management plans for fish stocks, the removal of subsidies
which encourage over-fishing, and the reduction of the size and activity of European
Union fishing fleets to a level compatible with sustainable exploitation.

The European Union will explore ways of strengthening the prevention and control of –
and eventually terminating – illicit arms exports by European Union-based companies or
citizens. As an immediate step, Member States and the European Community will sign,
ratify and implement
the UN Protocol on the Illicit Manufacturing and Trafficking of
Firearms.

The European immigration policy should be based on a comprehensive and balanced
approach, seeking to minimise the negative effects of emigration whilst benefiting both
recipient countries and countries of origin, through dialogue and co-operation with the
countries concerned.

3.5.

Better governance at all levels

Priorityobjectives

• Ensure good governance at all levels and within all countries so as to achieve common

sustainable development objectives.

• Strengthen the legitimacy, participatory basis, coherence and effectiveness of global

economic, social and environmental governance.

Good governance is first and foremost a domestic issue. Democracy and the rule of law call
for active participation of stakeholders and are necessary prerequisites for sustainable
development. Up to now the political response to governance challenges has proved
insufficient at any level – national, European or international, public or private. Inadequate
domestic policies in many countries, including developing countries, have played a part in
widening the gap between the poor and the rich. Likewise, in the context of increasing
interdependence, the imbalance between market forces on the one hand and governance
institutions on the other has resulted in a “global governance gap”.

There is a growing consensus that the global governance system must urgently gain in
legitimacy, coherence and effectiveness. International activities on different levels, such as
G7/8, have given political impetus to ongoing or emerging ideas, measures and policies.
However, whereas G7/8 has improved its outreach efforts to non-members and civil society,
many countries are not adequately represented when it comes to formulating international

15

initiatives. There may therefore be a case for making such informal fora more representative
inclusiveness and
and open to common initiatives with other partners. Participation,
transparent decision making process are essential components of good governance and
contribute to promote common universal values. Reform of the international system of
governance also needs to ensure a stronger civil voice in international fora. The role of local
communities, through Local Agendas 21, is especially important.

Within the context of UN reform, co-ordination among its various bodies, and between the
UN Organisation and other international institutions must be strengthened and targeted
towards global governance for sustainable development. This will allow the UN System to
better respond not only to global, but also to regional and sub-regional challenges.

The European Union is committed to promoting good governance in all its policies. The
White Paper on European governance20 has launched a debate on what the European Union
could do to improve its own governance system. The European Union approach is based on
five principles: openness, participation, accountability, effectiveness and coherence. These
apply to European Union internal and external action alike.

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EuropeanUnionaction

Increase support for institutional capacity-building and public service reform in developing
countries21. Foster civil society’s capacity to participate in national and regional policy
debates and decision-making processes in developing countries and elsewhere.

Strengthen co-operation and action in the fight against corruption and help to formulate
and negotiate the future UN Convention against corruption.

Enhance global capacity to enforce ILO Conventions on core labour standards, support
social policy reforms by developing countries, affecting labour markets and social
protection systems, and support ILO initiatives to provide multilateral technical assistance
and technical co-operation. Encourage the ILO to promote social governance.
Ensure that
governance for sustainable development by :

the outcome of Johannesburg includes concrete moves to improve

- Strengthening international environmental governance, building up on existing
structures, notably UNEP, and promoting effective implementation of multilateral
environmental agreements, for example through compliance mechanisms.

- Developing frameworks for

regional and sub-regional co-operation to address
sustainability challenges within existing structures (e.g. UN Regional Commissions)
and ongoing initiatives like the New Partnership for Africa's Development.

- Promote a more active role for civil society,

local authorities and private sectors
through grassroots initiatives like Local Agendas 21, and business coalitions for
sustainable development.

Strengthen co-operation and action in the fight against discrimination against women by
implementing the CEDAW Convention.

http://europa.eu.int/comm/commissioners/prodi/pdf/com2001-428en.pdf
European Governance - a White Paper, COM(2001) 428
The initial focus should be on support for sound and transparent public expenditure management as a
prerequisite for the effective implementation of Poverty Reduction Strategies (PRSPs) or National
Development Strategies

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3.6.

Financing sustainable development

Priorityobjectives

Ensure adequate financing to attain the International Development Targets and the
Millennium Development Goals22. To that end:

• Make decisive progress towards reaching the UN target of 0.7% of GNI

in Official

Development Assistance (ODA).

• Ensure that the debt burden on developing countries is reduced in a consistent and

effective manner.

• Identify effective means of delivering and safeguarding global public goods.

• Stimulate a further increase in, and regional broadening of, foreign private investments in

developing countries.

In order to achieve sustainable development, domestic policies in many countries must
improve and be based on good governance. The right mix of policies will prioritise the needs
of the poor, and address key issues such as food supply, education, employment, health and
environmental protection. However, even the best-planned national policies may have a
limited impact due to lack of funds. These issues will be further addressed in detail at the
United Nations International Conference on Financing for Development
to convene in
Monterrey (Mexico) 18 - 22 March 2002.

The Monterrey Consensus23

¤ Agreement that achieving the internationally agreed development goals demands a new partnership

between developed and developing countries.

¤ Commitments to sound domestic policies, good governance at all levels, the rule of law and the

fight against corruption.

¤ Recognition that a substantial increase in ODA an other resources is required to reach the
Millennium development targets. Urge developed countries that have not yet done so to make
concrete efforts towards the 0.7% target of GNP as ODA, underlining the importance of examining
the means and timeframes for achieving the targets and goals.

Strive to make ODA more effective.

¤ Recognition of the value of exploring innovative sources of financing that do not unduly burden

developing countries.

22

23

A detailed recommendation for European Union actions at
the UN International Conference on
Financing for Development, Monterrey, 18 - 22 March 2002, is set out in a separate Commission
communication
The Fourth Preparatory Committee agreed the summit text by consensus on 27 January 2002. It is
expected to be formally adopted by the Monterrey conference on 22 March 2002

17

¤
Unsustainable debt burdens, a feature of several developing countries24, threaten economic
and financial stability: they make countries more vulnerable to external shocks. They also
drain the resources needed for public services vital to poverty reduction and thus perpetuate
the exclusion of countries from full participation in the world economy.

Foreign private investment is the largest source of external funds for developing countries as a
whole25. Foreign Direct Investment (FDI) typically involves a long-term relationship between
the parent and the affiliate and reflects a lasting interest in the host economy. It can be an
important driver of technology transfer, human resource development, economic growth and
social progress. However, FDI is heavily concentrated in a few countries, and has largely
bypassed the poorest ones.

Alongside the fundamental importance of FDI, Official Development Assistance remains
critical to support the efforts of developing countries, notably the poorest ones.

Facts and figures on ODA

¤ Reaching the International Development Target of halving poverty by 2015 would require an

urgent doubling of ODA flows26.

¤ Current ODA stands at US$ 53 billion per year, representing 0.22% of the combined GNI of donor

countries.

¤ Meeting the European Union commitment of reaching the UN target for ODA of 0.7% of GNI

would require an increase of some US$ 29 billion27.

In recent discussions on the provision of so-called Global Public Goods28, a number of ideas
for new and additional financing mechanisms have emerged. To meet
them, several
innovative international taxes have been suggested. Proposals include a tax on currency
transactions (Tobin type tax), a carbon tax and a tax on arms exports. Notwithstanding this
discussion29, meeting the needs for enhanced financing for development and the provision of
global public goods in the short to medium term will require more substantial contributions
from national budgets and a further increase in the efficiency of resource use.

24

25

26

27

28

29

External debt in Africa tripled between 1980 and 2000 and is now estimated, on a stock basis, at US $
206 billion. (Source World Bank). Several countries (Angola, Congo, Comores, Djibouti, Guinea-
Bissau, Guyana, Mauritania, Mozambique, Sao Tome et Principe, Zambia) have a debt stock / GNP
ratio of more than 250%
FDI flows to developing countries grew from less than half the level of official aid in 1990 to over three
times their level in 1999
Financing for Development, report prepared by staff of the World Bank and IMF, August 2001
In the conclusions of the Göteborg Council, the European Union reaffirmed its commitment to reaching
the UN target for ODA of 0.7% of Gross National Income “as soon as possible” and “to achieve
concrete progress towards reaching this target before the World Summit on Sustainable Development
in Johannesburg in 2002”
Global Public Goods are defined by UNDP as public goods whose benefits reach across borders,
generations and population groups
Further analysis is contained in the Commission's report on "Responses to the Challenges of
Globalisation - A study on the International Monetary and Financial System and on Financing for
Development”

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Draw up a road map, before the International Conference on Financing and Development
in March 2002, for making real progress towards the UN target for ODA and to bring all
individual European Union countries up to the minimum level of 0.33% of GNI as from
2006, as an intermediate target.

Accelerate and extend the process of debt relief launched under the Heavily Indebted
Poor Countries Initiative and explore innovative debt conversion proposals, including “debt
for environment”30.

Consider further initiatives in view of a complete untying of bilateral development aid
across the European Union, and for further untying European Community and other
donors’ official development assistance.

Contribute to the emerging debate on global public goods and how to offer incentives for
providing them and strengthening them. Explore innovative mechanisms for international
financial solidarity and for incentives for reducing externalities.

4.

IMPLEMENTING AND REVIEWING THE STRATEGY

Within the European Union

As the Commission pointed out in its Communication to the Göteborg European Council, the
European Union Sustainable Development Strategy (European Union-SD Strategy) would not
be complete without the inclusion of an external dimension. The present Communication
contains that dimension and should be seen as an integral part of the Commission’s proposal
for a European Union-SD Strategy. The effective implementation of this Strategy requires the
concerted efforts of both the Commission and the Member States.

The European Union will address the external dimension as an integral part of the European
Union Sustainable Development Strategy at the European Council in Barcelona in March
2002. It will put forward the European Union Strategy at the World Summit on Sustainable
Development in Johannesburg in August 2002. The European Union contribution to global
sustainable development will be addressed as a central issue at the Sustainable Development
Round Table talks to be held in 2002. At the spring meetings of the European Council, the
comprehensive European Union-SD Strategy will be periodically reviewed. In 2003, a
particular focus should be on how to put the outcome of the Johannesburg Summit into
practice.

At international level

The Johannesburg World Summit on Sustainable Development will be a milestone event in
the international process on sustainable development. It should deliver a result
is
balanced, forward-looking and action-oriented. The European Union will promote the
elements of the European Union Strategy at the Summit in Johannesburg. It will seek to
demonstrate how its strategy for sustainable development forms part of the global effort.

that

30

Conversion proposals are based on the concept that developing countries have to provide a certain
service (e.g. protecting the environment) in return for debt relief

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The European Union will also seek to raise the profile of sustainable development in all its
bilateral and regional relations. The most effective and relevant linkages between areas of
policy dialogue will vary from partner to partner. With industrialised nations, European Union
efforts must focus on extending concepts of economic and political stability to include
sustainable development. With developing countries, the European Union must convincingly
demonstrate the policy linkages between good governance, lasting poverty reduction and the
protection of natural resources.

There is a need for the European Union, which is itself a continuing exercise in balancing
national interests and wider responsibilities, to demonstrate in its external relations that
multilateralism should not be about gathering international backing for predefined national
the parameters of
interests. Nor can it be about a few powerful nations setting out
international negotiations between themselves, before presenting them to the rest as a fait
accompli. Concerted efforts will be needed by all parties.

The Commission invites the Council and the European Parliament to support the strategy and
actions outlined in this Communication, in view of strengthening the external dimension of
the European Union’s approach to sustainable development in a way compatible with the
strategy for the internal dimension, as endorsed at Göteborg.

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