Communication from the Commission to the Council, the European Parliament and the Economic and Social Committee - Speeding up progress towards the Millennium Development Goals - The European Union’s contribution {SEC(2005) 452} {SEC(2005) 456}
Date: 2005-04-12
Institutions: European Commission
Subjects: EU aid, EU financial instrument, cooperation policy, developing countries, development aid, economic cooperation, industrialised country

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 7.10.2005 
COM(2005) 132 final/2 

CORRIGENDUM: tableau p. 6 
Concerne toutes les langues 

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

Speeding up progress towards the Millennium Development Goals 

The European Union’s contribution 

{SEC(2005) 452} 
{SEC(2005) 456} 

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CONTENTS 

1. 

2. 

2.1. 

2.2. 

The EU must do more .................................................................................................. 3 

Resources commensurate with the task........................................................................ 5 

More resources are needed........................................................................................... 5 

Better quality aid .......................................................................................................... 7 

2.2.1.  More predictable aid .................................................................................................... 8 

2.2.2.  Responses to external shocks ....................................................................................... 8 

3. 

4. 

4.1. 

4.2. 

4.3. 

Trade at the service of development ............................................................................ 9 

Focus on africa ............................................................................................................. 9 

Improving Africa’s governance ................................................................................. 11 

Connecting Africa: infrastructure and trade............................................................... 12 

Striving towards equitable societies which promote access to services, employment, 
decent work for both men and women....................................................................... 13 

5. 

Conclusion: towards a new EU development strategy............................................... 13 

ANNEXES 

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1. 

THE EU MUST DO MORE  

This  year  will  be  a  crucial  one  if  we  are  to  achieve  the  Millennium  Development  Goals 
(MDGs):  2005  will  be  development  year.  The  summit  in  September  will  bring  together  the 
Heads of State and Government at the UN Assembly to carry out inter alia a major review of 
the Declaration’s implementation and a review of progress in achieving the MDGs. 

The EU made specific commitments with a view to achieving these goals by 2015; at a time 
when  the  whole  international  community  is  gearing  up  to  carry  out  the  first  review  of  the 
situation,  the  EU  is  keenly  aware  of  the  importance  and  urgency  of  the  task  ahead.  At  its 
meeting on 22 and 23 March 2005, the European Council called “on the Commission and the 
Council to step up their work, particularly on the various development components, so as to 
finalise our positions on the various topics and enable the European Union to play an active 
part in the discussions ahead”. 

Since 2000 the EU has advocated a process to bring about a review of progress, the adoption 
of  guidelines  on  common  security  issues,  agreements  to  improve  the  implementation  of 
commitments made pursuant to the Millennium Declaration and the MDGs, and decisions on 
the organisational reforms needed to achieve the objectives1. 

This  communication  takes  stock  of  the  EU’s  contribution  to  development  and  identifies  the 
measures that need to be taken to speed up achievement of the MDGs. The EU’s consolidated 
report on the MDGs2, which was drawn up by the Commission at the request of the Member 
States3,  shows  that  the  input  of  the  Community  and  its  Member  States  to  the  international 
community’s efforts is substantial. The EU must now do even more. 

At the 2000 Millennium Summit the international community adopted an ambitious strategy 
for tackling the main challenges facing us over the coming decades. The Heads of State and 
Government adopted the Millennium Declaration and thereby made commitments concerning 
poverty reduction, protecting our common environment, peace and security, good governance, 
democratisation  and  human  rights,  protection  of  the  most  vulnerable  sections  of  the 
population,  the  special  needs  of  Africa  and  strengthening  the  United  Nations.  According  to 
the  Secretary-General,  this  declaration  sets  out  a  model  for  achieving  a  more  peaceful, 
prosperous  and  just  world  through  common  security  and  the  global  partnership  for 
development. 

Related  to  the  Millennium  Declaration  there are  eight  Millennium  Development  Goals  with 
specific  targets:  (1)  eradicate  extreme  poverty  and  hunger;  (2)  achieve  universal  primary 
education;  (3)  promote  gender  equality;  (4) reduce  child  mortality;  (5)  improve  maternal 

1 

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Declaration of the EU representative at the UN General Assembly in November 2004. 
Internal working paper: EU consolidated report on the MDGs, April 2005. 
In 2004 the EU Member States and the Commission published reports on their contribution to the 
MDGs. These reports formed the basis of the EU consolidated report for 2000-2004. We should make it 
clear, however, that this report is not intended to give the credit for progress on one or other MDG to 
the efforts of the individual Member States, the Community as such or the EU. This would be to 
overlook the interdependency between the different goals and would be contrary to the principles of 
ownership, coordination and complementarity that underpin – though not as extensively as they should 
of course – the implementation of development cooperation.  
Council (General Affairs and External Relations) conclusions of April 2004. 

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health;  (6)  combat  HIV/AIDS,  malaria  and  other  diseases;  (7)  ensure  environmental 
sustainability; (8) develop a global partnership for development. 

Since September 2000: 

(1) The Community and most Member States have adapted or shifted their development aid 
policies  to  focus  on  achieving  the  MDGs  and/or  the  Millennium  Declaration’s  somewhat 
broader objectives. 

(2)  The  EU  has  placed  development  at  the  heart  of  its  trade  policy  at  multilateral  level, 
regional level and at the level of individual instruments, giving particular attention to the least 
developed  countries  and  other  vulnerable  small  economies  including  free  access  to  the 
Community market for their exports in the framework of the ‘Everything But Arms’ initiative, 
and by increasing trade-related assistance. Trade has also been recognised as a key factor for 
inclusion in aid and development strategies. 

(3)  The  EU  as  a  whole  and  the  individual  Member  States  have  set  themselves  intermediate 
targets for increasing their development aid by 2006. These targets will most likely be met. 

(4) The EU has taken a series of measures to increase the impact and quality of aid, notably 
through improved coordination and harmonisation. 

The need to speed up progress in achieving the MDGs is widely recognised. Some objectives 
will probably be achieved globally (primary education and education of girls). This, however, 
is not enough. In some cases there has even been a step backward as a result of problems such 
as the effects of communicable diseases, environmental damage and security threats. We must 
do more, and better. We cannot achieve these goals simply by going on with the same policies 
as before. This is especially true in sub-Saharan Africa where many countries are lagging well 
behind  by  many  indicators  (hunger,  infant  mortality,  maternal  mortality,  communicable 
diseases,  sustainable  environment,  etc.).  Quite  apart  from  the  dictates  of  human  solidarity, 
achievement of these goals is crucial for the security and prosperity of Europe and the world. 

Nevertheless, it is worth reiterating that development and achievement of the MDGs is first 
and  foremost  the  responsibility  of  the  developing  countries  themselves.  It  is  the  developing 
countries that make, or do not make, progress towards the MDGs, not the donors. 

The  EU  has  taken  on  a  leadership  role  in  the  fight  against  world  poverty  in  becoming  the 
largest aid donor (55% of global ODA). The EU’s support for the MDG agenda is crucial and 
should encourage other developed countries to play a greater role. Development must be one 
of the pillars of the UN Summit. 

Money is not the only thing needed to achieve the MDGs. The other basic factors include the 
type  of  governance  adopted  domestically  and  internationally;  complying  with  international 
commitments, especially on human rights, gender equality; appropriate trade and investment 
rules; halting the spread of communicable diseases4; knowledge transfers; security; and other 
universal public goods.  

4 

Specific action to confront HIV/AIDS, Malaria and Tuberculosis in the developing countries, so as to 
reach  the  respective  Millennium  Development  Goal,  will  be  further  defined  in  a  separate  specific 
Communication.  

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For the EU’s contribution to the Event in September, and with a view to speeding up progress 
towards  the  MDGs,  the  Council  asked  the  Commission  to  draw  up  ambitious  proposals, 
focusing on three areas: financing for development, policy coherence for development and the 
focus on Africa5.  

The Commission’s proposals basically aim to: 

(1) 

set new intermediate targets for growth in official aid budgets by 2010 for both the EU 
as  a  whole  and  the  individual  Member  States  with  a  view  to  achieving  the  overall 
target of 0.7% of the gross national income (GNI) by 2015; 

(2) 

speed up reforms that will improve the quality of aid; 

(3) 

(4) 

rethink the way that the EU, through its own model of sustainable development and its 
internal and external policies, influences the conditions for development; 

ensure  that  Africa  is  the  number  one  beneficiary  of  these  new  approaches  and  seize 
new opportunities for partnership between the two continents. 

The  proposals  on  development  financing  and  policy  coherence  are  set  out  in  detail  in  two 
other communications6. Together these proposals are crucial in order to contribute to the three 
pillars of sustainable development (economic, social and environmental). 

2. 

RESOURCES COMMENSURATE WITH THE TASK 

2.1.  More resources are needed 

All recent reports, in particular the UN Millennium Project Report7 and the report of the UN 
Secretary-General8, show that it is vital to scale up resources in order to achieve the MDGs 
and highlight the many links between poverty, environmental damage and security. The EU 
played  a  key  role  at  the  Monterrey  conference.  It  must  again  blaze  the  way  by  setting 
intermediate targets that will bring development aid up to 0.7% of GNI by 2015. 

The  Millennium  Project  Report  estimates  the  total  annual  official  development  assistance 
(ODA) required to meet the MDGs in all countries at about USD 135 billion in 2006, rising to 
USD 195 billion by 2015. These figures correspond to 0.44 and 0.54% of the donor countries’ 
GNI respectively. Taking account of additional ODA needs not directly related to the MDGs, 
the report recommends that donors commit themselves to reaching the target of 0.7% of GNI 
by 2015 at the latest. 

Currently, four EU members have reached or exceeded the 0.7% target9 and six others10 have 
pledged to reach it before 2015. On current trends the EU may collectively reach 0.42% by 
2006.  

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8 
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Council (General Affairs and External Relations) conclusions of November 2004. 
Commission communications on “financing for development and aid effectiveness” - COM(2005) 133 - 
and “Policy coherence for development” - COM(2005) 134. 
UN Millennium Project Report “Investing in Development: A Practical Plan to Achieve the Millennium 
Development Goals”, January 2005.  
Report entitled “In larger freedom: towards development, security and human rights for all”. 
Denmark, Luxembourg, the Netherlands and Sweden. 

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The European Council of December 2004 confirmed the EU’s commitment to the MDGs and 
mandated the Commission to present to the Council “concrete proposals on setting new and 
adequate ODA targets for the period 2009-2010 …”.  

The Commission suggests establishing two intertwined targets to be reached by 2010: 

(1) 

an  individual  threshold  for  Member  States,  differentiating  between  those 
which  were  already  members  of 
(Barcelona 
commitments-EU15) and those which joined later (EU10); 

in  2002 

the  EU 

(2) 

a collective average for all Member States. 

These targets have to be sufficiently ambitious in order to credibly ensure that it is possible to 
reach 0.7% by 2015. In line with the Council request to set a “new and adequate target” this 
means  going  halfway  by  2010  bridging  the  gap.  Based  on  the  approach  applied  for  the 
Barcelona commitments in 2002 the Commission proposes that: 

(1)  Member  States  which  took  on  the  Barcelona  commitments  (EU15)  and  are 
still  below  the  baseline  increase  ODA  to  the  new  individual  baseline  of 
(0.51)% of ODA/GNI. 

(2)  Member States which joined after 2002 (EU10) reach an individual baseline 
of  (0.17)%  ODA/GNI  in  2010,  thereby  reaching  the  midpoint  towards  the 
“Barcelona acquis” of 0.33% in 2015. 

The  figure  of  0.51%  in  2010  represents  the  midpoint  between  the  individual  Member  State 
baseline  of  0.33%  in  2006  and  0.7%  in  2015.  The  proposal  will  ensure  fair  burden  sharing 
between  the  MS  and  result  in  a  collective  average  of  (0.56)%  (EU25),  triggering  an 
estimated additional €20 billion by 2010. 

Table: Proposal for new EU ODA targets 2006-2010 

  2006 
  ODA 
  €ml 

%GNI 

2010 
ODA 
€ml 

  GAP 2010-2015 

%GNI 

ODA 

  €ml 

%GNI 

“Old Member States” - 
 individual target of 0.51% 
EU-15 
“New Member States” -  
individual target of 0.17% 
EU-10 
Collective target of 0.56% 

45 788

0.43%

65 988

0.58% 

16 525 
(p.m. gap to 0.33%) 

0.12%

474

0.09%

990

0.17% 

816 

0.16%

EU-25 

46 262

0.42%

66 978

0.56 

17 340 

0.14

We need to find new sources of financing that are additional to the higher ODA allocations in 
national budgets for development expenditure. But discussions on such sources should in no 
circumstances  serve  as  a  pretext  for  postponing  or  scaling  down  the  EU’s  commitments  for 
the  2010  target.  Such  new  sources,  as  well  as  being  additional  to  aid  budgets,  should  be 
permanent and predictable in the long term. 

10 

Belgium, Finland, France, Ireland, Spain and the UK. 

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The  Commission  is  currently  studying  a  number  of  proposals,  including  the  International 
Finance Facility (IFF)11 and tax instruments that could be applied in the Community. The IFF 
would pose a number of technical problems such as how to record loans in national accounts 
and the financial impact on post-2015 aid budgets. Various taxes are being considered. 

If all the political and technical issues can be dealt with (on the basis of detailed assessment 
criteria),  the  Commission  is  ready  to  work  to  find  an  EU  position  in  favour  of  a  double 
strategy: increased ODA by 2010 plus innovatory financing proposals. 

New  debt  relief  initiatives,  notably  multilateral  initiatives,  are  also  under  discussion.  Debt 
relief  is  a  good  instrument  for  implementing  aid  because  it  supplies  long-term,  predictable 
quasi-budgetary aid for a low transaction cost. But it does carry risks in terms of its “moral 
hazard” and the effect on resource allocation: the most indebted countries are not necessarily 
the poorest or the most deserving. Relief measures must therefore be appraised on a case-by-
case basis. 

The Council is thus asked to respond to this group of proposals and to: 

(1)  support  the  devising  and  implementation  of  alternative,  tailor-made  options  for 
post-conflict countries with external arrears that have been excluded from the HIPC initiative 
(this is apart from implementation of the next phase of the HIPC initiative); 

(2)  explore  the  possibility  of  using  a  temporary  relief  facility,  among  other  instruments,  for 
debt servicing that would mitigate external shocks. 

2.2. 

Better quality aid 

As well as increasing the amount of international aid, we must also do more to improve the 
quality of aid and its impact on the MDGs. To do this, what is essential is international donor 
harmonisation  and  alignment  on  the  partners’  own  strategies.  This  calls  for  flexibility  and 
determination on the part of donors, which will have to adjust their programming, review and 
operating processes in the interests of efficiency gains and lower transaction costs. 

Progress in coordination and harmonisation remains well below what is possible. This lack of 
harmonisation  imposes  administrative  burdens  and  needless  costs  on  the  partner  countries. 
Strangely,  although  the  EU  has  managed  to  adopt  common  strategies  on  some  tricky  or 
sensitive areas (the European Security Strategy, to name just one), it has not been able to do 
so in a policy area where it is one of the biggest players (supplying 55% of ODA) and where 
there is a comprehensive framework of multilateral commitments. The Council has adopted a 
number of recommendations that must now be translated into practice, notably by a process of 
open coordination. One important aspect will be to improve two-way co-ordination between 
Commission delegations and the diplomatic representations of Member States. 

At the recent High-Level Forum on harmonisation the EU reiterated its determination to make 
rapid  and  substantial  progress  in  a  concrete,  pragmatic  approach  by  developing  specific 
binding targets. The EU also undertook to initiate a strategic debate aimed at developing true 
operational complementarity between donors. 

11 

UK proposal for front-loading ODA. 

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The EU’s Water Initiative is a good example of coordination, where the leverage of initiatives 
taken at EU level is evident. 

2.2.1.  More predictable aid 

Present aid implementation procedures do not give countries the flexibility and predictability 
they need in order to commit themselves to the investments and policies necessary to achieve 
the  MDGs.  Only  the  guarantee  that  it  will  enjoy  several  years  of  stable  flows  will  induce  a 
finance ministry to, say, recruit the teachers and doctors the country needs. 

Neither project aid, debt relief nor budgetary support (which, however, is the most effective in 
encouraging the harmonisation of interventions and their alignment on national policies and 
priorities  and  MDG  financing)  will  provide  an  amount  that  is  large  enough  and  flexible 
enough and can be used to finance current expenditure with medium-term predictability. 

So existing instruments have to be topped up by new, more predictable and less volatile aid 
modalities in order to support the implementation of the structural reforms needed to achieve 
the MDGs. 

Possibilities include budgetary aid that is secured for three to five years with no possibility of 
suspension12,  a  contract  that  would  assure  a  minimum  level  of  aid  in  a  medium-term 
perspective, plus performance-linked bonuses, or even rolling three-year commitments. 

Obviously, such arrangements would only apply to the better performing countries. But with 
the EU’s approach more attention should also be paid to countries performing less well and to 
prevention  of  situations  putting  states  under  stress.  So  we  will  also  seek  to  improve  aid 
modalities  for  such  countries,  putting  emphasis  on  better  coordination,  support  for  good 
governance and on the balance to be struck between short-term fixes and longer-term support. 

2.2.2.  Responses to external shocks 

External  shocks  of  whatever  sort  undermine  countries’  reform  policies,  the  sustainability  of 
their debt and efforts to alleviate poverty in general. Action therefore has to be taken up- and 
downstream. 

Upstream: 

–  putting in place market-based insurance schemes; 

–  devising mechanisms for temporary suspension of debt servicing.  

Downstream: 

–  using and strengthening financing mechanisms such as those provided for in the Cotonou 
Agreement (Flex) to give short-term cover against the impact of such shocks on countries’ 
revenue. 

12 

Other  than  for  violation  of  the  “essential  elements”  clause  contained  in  partnership  and  cooperation 
agreements. 

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3. 

TRADE AT THE SERVICE OF DEVELOPMENT 

Development  aid,  essential  though  it  is,  is  not  enough  to  achieve  the  MDGs.  More 
comprehensive and far-reaching measures are needed. In the long term, what we are talking 
about is controlling globalisation through public policy in the interests of a more just world 
order. 

The important ways in which a range of public policies contribute to development objectives 
must therefore be reiterated. In drawing on its values and experience the EU has a major role 
to play. 

In  view  of  this,  the  Council  asked  the  Commission  to  draw  up  proposals  to  improve  the 
coherence  of  development  policies.  This  means  identifying  how  the  EU’s  internal  and 
external policies can make a contribution to inclusive globalisation that is beneficial for all in 
a context of sustainable development. 

The aim here is to find additional contributions to development. Hence the proposal to explore 
the  concept  of  policy  coherence  for  development  while  keeping  sight  of  the  fact  that  the 
projection  of  the  EU’s  internal  and  external  policies  adds  considerable  value  to  operations 
conducted  at  EU  level  (in  such  spheres  as  education,  the  environment,  immigration  and 
asylum policy, customs and taxation, employment and social policy). 

Almost  all  EU  policies  impact  on  the  developing  countries,  directly  or  indirectly.  The 
communication  on  policy  coherence  for  development  identifies  policies  that  can  obviously 
make a contribution to the developing countries’ efforts. 

To  ensure  that  such  policies,  where  they  result  in  bilateral  cooperation  programmes  with 
developing countries, have maximum impact, they must be implemented in accordance with 
the  “fundamental  principles  of  development  cooperation”,  that  is  to  say,  in  the  spirit  of 
partnership  and  the  partner  countries’  ownership  of  the  policies  and  in  compliance  with 
international obligations. 

With  a  view  to  promoting  the  development-oriented  coherence  of  EU  policies,  the 
Commission will, mid-way between the current and next international reviews of the MDGs, 
draw up a report on policy coherence with specific regard to support for the MDGs. 

The Council is asked to decide on the various Commission proposals13. 

4. 

FOCUS ON AFRICA 

All reports and analyses made by the EU and others, including the  UN Millennium  and  the 
Commission  for  Africa14  reports,  indicate  that  many  parts  of  sub-Saharan  Africa  lag  far 
behind  the  rest  of  the  world  in  reaching  the  MDGs.  Estimates  show  that  many  African 
countries will not be able to reach the MDGs by the target year of 201515.  

13 

14 

15 

See footnote 7. 
The  Commission  for  Africa  was  established  by  the  UK  in  2004  and  includes  different  African  and 
European personalities. 
‘Sub-Saharan  Africa,  most  dramatically,  has  been  in  a  downward  spiral  of  AIDS,  resurgent  malaria, 
falling food output per person, deteriorating shelter conditions, and environmental degradation, so that 

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Yet  signs  of  progress  are  visible,  such  as  progress  towards  democracy,  higher  growth  rates 
over  the  last  three  years  (up  to  4.5%  on  average  in  2004,  6%  excluding  Nigeria  and  South 
Africa), real growth per capita (2%), and improving fiscal balances. 

The Commission therefore proposes a special Focus on sub-Saharan Africa. 

Firstly, the volume of resources should be increased by ensuring that a sufficient share of the 
rise in official development assistance goes to Africa. 

Secondly, all the proposals made in this Communication on policy coherence and on quality 
of aid should be applied in Africa as a priority. 

The  aim  is  to  formulate  a  European  response  involving  Member  State  and  Community 
actions. In this context this document identifies a number of actions to be undertaken by the 
Community.  The  Cotonou  Agreement,  as  recently  revised,  represents  a  privileged  but 
non-exclusive framework for the implementation of this approach. 

In this context, the Commission proposes key commitments for action in a number of areas 
identified  by  the  Africans  themselves  as  crucial  to  their  development,  in  particular  in  the 
framework of AU/NEPAD action plans. The ambition is a qualitative jump on key multipliers 
for  development,  i.e.  elements  decisive  for  sustainable  development  if  they  are  met,  but 
without  which  no  lasting  development  is  possible.  The  particular  leverage  of  the  EU  in 
promoting these elements should be highlighted. These include16: 

(a) 

improving Africa’s governance, 

(b) 

interconnecting Africa’s networks and trade, 

(c) 

striving  towards  equitable  societies,  access  to  services,  decent  work  and 
environmental sustainability. 

These areas do not exclude, replace or compete with other forms of cooperation, which on the 
contrary  need  to  continue.  Rather,  the  objective  is  to  fill  the  gap  and  catalyse  other  actors’ 
actions in sectors where the EU has specific experience or comparative advantage and where 
it can deliver rapidly. In other words, it is all about frontloading efforts in key sectors where 
the EU is in a pivotal position to lead international action. A benchmark of its success will be 
its ability to act as catalyst for other donors’ action and rally the largest possible support. 

most countries in Africa are far off track to achieve most of the Goals’. [The region] ‘has the highest 
rate  of  undernourishment,  (…)  the  lowest  primary  enrolment  rates,  (…)  [with  the  highest]  gender 
disparity (…). The HIV/AIDS crisis is devastating much of the continent (…). The region also has the 
highest TB incidence in the world and the highest maternal and child mortality ratios. (…) Progress in 
access  to  safe  drinking  water,  though  more  promising,  is  still  too  slow  to  achieve  the  MDG  targets. 
Without sustained support, Sub-Saharan Africa is unlikely to meet any of the Goals’. UN Millennium 
Project Report January 2005. 
Annex 1 provides further details on each of the areas and EU commitments. 

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4.1. 

Improving Africa’s governance 

(a) 

The governance challenge 

Good  governance  and  full  respect  for  human  rights  are  a  fundamental  prerequisite  for 
development  but  are  not  yet  secured  in  many  African  countries.  The  EU  has  supported 
Africa’s  efforts  to  improve  governance  for  many  years  at  country,  regional  and  continental 
levels  and  bolster  its  capacity  to  promote  respect  for  human  rights,  as  set  out  in  key 
international and regional instruments, across the continent. 

But  the  EU  must  bring  more  decisive  support  to  African  efforts  to  strengthen  Africa’s 
governance and should consider the following commitments:  

(1)  Providing  financial  support17  to  develop  the  African  Union’s  (AU)  capacity  and 
especially  its  Commission.  Through  this  support,  the  EU  will  help  the  AU  to  live  up  to  the 
expectations  of  its  commitments.  The  EU  will  accompany  the  AU  in  transforming  its 
institutions  into  the  central  reference  institution  for  Africa’s  governance  and  bolster  its 
capacity  to  promote  respect  for  human  rights,  as  set  out  in  key  international  and  regional 
instruments, across the continent. 

(2) To be strong and effective, our partnership with Africa must be broad. The EU institutions 
should  seek  twinning  partnerships  with  their  AU  counterparts,  such  as  the  Pan  African 
Parliament,  the  Economic,  Social  and  Cultural  Council  (ECOSOCC)  or  the  Peace  and 
Security Council. These partnerships should serve as a catalyst for linking all European and 
African  stakeholders,  from  universities,  municipalities,  businesses  and  industries  to  trade 
unions, civil society networks or cultural institutions. 

(3) The EU is ready to support African efforts to build more effective states in Africa. To give 
a decisive incentive to the reform of governance in Africa, the EU, the Commission and the 
Member  States  should  put  into  place  a  joint  financial  mechanism18  with  AU/NEPAD  to 
support the reforms triggered by the Africa Peer Review Mechanism (APRM). These efforts 
will be fully coherent with national strategies and PRSPs. 

(b) 

Promotion of Peace and Security 

In recent years, Africa has established an institutional architecture for peace and security, with 
the  AU  Peace  and  Security  Council  at  its  centre,  to  deal  with  conflict  prevention, 
management, and resolution.  

Under  the  Cotonou  Agreement  and  the  EU’s  Rapid  Reaction  Mechanism,  the  EU  has 
provided substantial support for a broad range of peace-building activities. At the request of 
the African leaders, the EU has also set up the Peace Facility for Africa (250M€) to support 
African peacekeeping efforts.  

In  the  future,  the  EU  should  also  provide  the  AU  and  sub-regional  organisations  with  the 
necessary  financial  means  to  resolve  conflicts.  To  this  end,  the  EU  will  conclude  the 

17 

18 

The Commission proposed support of up to EUR 50 million as part of the “conditional billion”. 
The  intra-ACP  resources  will  provide  an  initial  amount.  Other  possibilities  within  the  EDF  are  being 
identified. 

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replenishment of the Peace Facility before the end of 200519, initially by topping up of the 
current  budget  through  allocating  a  proportional  share  from  the  South  African  European 
Programme  for  Reconstruction  and  Development  (EPRD)  as  was  requested  by  the  AU 
Summit in Maputo. 

4.2. 

Connecting Africa: infrastructure and trade 

(a) 

Creating and sustaining regional infrastructure networks and services 

Few  sub-Saharan  African  networks  provide  services  that  are  comparable  with  other 
developing regions. 

Ongoing  efforts  to  create  and  sustain  sub-Saharan  Africa’s  infrastructure  networks  and 
services  must  accelerate  for  economic  growth  and  trade  to  become  competitive  and  for 
Africa’s exporters to find their place within a global market. In this respect, the Commission 
proposes to set up a Europe-Africa partnership on Infrastructure20. The Partnership, based 
on  the  AU/NEPAD  strategies,  will  help  to  establish  sustainable  cross-border  infrastructure 
essential  for  interconnectivity  and  knowledge-sharing  on  the  continent  and  to  bridge  the 
digital divide. Finance provided will leverage private sector investment. In the first phase, the 
Partnership will build on the examples of the Water and Energy Facilities and focus on sub-
Saharan  Africa.  In  a  second  phase,  the  Partnership  will  trigger  input  from  other  donors, 
including the EU Member States, to increase their aid budgets. 

(b) 

More and better trade for sub-Saharan Africa 

Trade  cooperation  has  figured  prominently  for  many  years  in  EU-ACP  relations,  primarily 
through preferential access for their products to the EU market. 

But preferences alone  are  not sufficient. A more comprehensive process is needed to create 
pro-investment conditions and efficient regional markets, improve trade facilitation, develop 
statistical services, address supply side constraints, foster product and market diversification.  

For  these  reasons,  ACP  states  and  the  EU  agreed  in  the  Cotonou  Agreement  to  launch 
negotiations for six regional Economic Partnership Agreements (EPAs), four of which are 
in  Africa.  These  are  not  traditional  free-trade  negotiations  but  focus  on  trade  and  regional 
integration as instruments for development. They will enter into force in 2008. 

In this context, the following focal areas of action have been identified: 

•  Economic governance 

•  Trade-related assistance  

•  Targeted support measures in key areas such as cotton, sugar and textiles 

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20 

Possibilities within the EDF are currently being identified. 
As for institutional and financial modalities, the EU will build on the rich experience gained through the 
Water and Peace Facility. Eligible are all Public Private Partnership, sub-regional organisations, or pan 
African structures (such as AMCOW) who submit a proposal of intra-regional or continental nature. In 
order to increase both continental coherence and ownership, every proposal would require the political 
endorsement of the AU. Until end 2007 financing is foreseen under the 9th EDF. 

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•  Identification of resources to support adjustment measures 

•  Support for an ambitious trade facilitation agenda 

4.3. 

Striving  towards  equitable  societies  which  promote  access  to  services,  decent 
work for both men and women and environmental sustainability 

Globalisation and liberalisation have brought growth and prosperity to the world as a whole, 
but not to all its parts. Some parts of Africa have prospered, others have fallen back. 

Efforts  to  promote  social  cohesion,  notably  improved  access  to  basic  services,  are  crucial. 
Equitable  economic  growth,  access  to  productive  employment  and  decent  work  for  all  and 
realisation of equality between men and women are crucial for sustainable development and 
eradicating  poverty.  The  EU  will  support  initiatives  in  this  respect.  Environmental 
sustainability must also be built into development if the poor are to have better lives by 2015. 

In this respect, the EU will, together with its African partners, further develop participatory 
approaches  for  local,  national  and  regional  planning  and  budgeting  of  resources.  Local, 
integrated  approaches  will  be  set  up  to  boost  the  role  of  secondary  centres  as  development 
hubs for their surroundings. These can take the form of centres of services where people have 
direct access to a set of services such as primary and secondary school, professional training, 
including  specific  training  opportunities  for  young  people,  medicines  and  health  care,  and 
basic social and public services.  

The  EU  needs  to  support  those  countries  with  a  commitment  to  equity  and 
environmental  sustainability.  To  this  end,  the  EU  will  provide  incentives  to  promote  of 
equitable  societies  and  environmental  protection  in  Africa.  It  will  also  take  account  of 
concrete  policy  measures  to  improve  equity  and  environmental  sustainability  as  part  of  the 
criteria  to  determine  aid  allocations  for  ACP  countries21.  This  will  ensure  that  additional 
resources are available for countries that show that they are willing and able to address issues 
of inequality and marginalisation, environmental degradation and social cohesion. 

5. 

CONCLUSION: TOWARDS A NEW EU DEVELOPMENT STRATEGY 

In  the  face  of  major  development  challenges,  Europe,  as  a  global  player,  has  special 
responsibilities  to  shoulder  and  must  fully  take  on  its  political  role  in  order  to  increase  the 
resources for development and the effectiveness of cooperation, and to give adequate support 
to sub-Saharan Africa, which is behind on progress to many goals. 

The consolidated EU report on the MDGs and the  report  on the follow-up to the Barcelona 
commitments  have  highlighted 
the  efforts  made  so  far.  This 
communication, together with the specific proposals on financing for development and policy 
coherence for development, sets out guidelines for future action. 

importance  of 

the 

Africa, too, can change. Africa has given proof of its willingness to assume responsibility for 
its political and socio-economic development. A number of countries have embarked on the 
transition  to  democracy,  peace  is  returning  in  many  parts  of  the  continent,  and  economic 

21 

This will be done in the framework of the allocations within the new financial perspectives and notably 
with the Development Cooperation and Economic Cooperation Instrument. 

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growth  is  picking  up.  The  emergence  of  the  African  Union  and  the  NEPAD  initiative  has 
given  birth  to  an  ambitious  institutional  structure  and  a  charter  that  places  governance  and 
freedom  at  the  heart  of  development.  This  year,  2005,  could  be  Africa’s  year.  Europe  must 
show that it is up to dealing with these developments and playing a leading role in supporting 
Africa; most importantly this includes giving Africa priority for financing, so helping to fulfil 
the  commitments  made  by  the  G8  in  200222.  Africa’s  road  to  sustainable  development  and 
achievement of the MDGs is a long and hard one. A new dynamic must now be set in motion, 
the EU and Africa can and must work together to make it happen. 

This  communication,  together  with  the  communications  on  financing  and  coherence  and 
related reports, forms the framework of the EU’s contribution to the UN High-Level Event in 
September this year on the subject of development and synergies with other policies. On this 
basis, the Commission asks the Council to finalise the EU’s proposals and commitments with 
a view to speeding up progress to the Millennium Development Goals. 

In addition to this, the process now under way should also pave the way for a new declaration 
on EU development policy designed to lay down a true European Development Strategy. 

22 

At the Kananaskis Summit (2002) the G8 pledged to allocate at least 50% of additional ODA to Africa. 
If this pledge were made at EU level and if current trends continue (keeping of Barcelona commitments 
for 2006), this would mean an additional allocation of more than EUR 6.5 billion a year for Africa. 

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ANNEX 1:  THE MILLENNIUM DEVELOPMENT GOALS, TARGETS AND 
INDICATORS 

Millennium Development Goals (MDGs) 

Goals and Targets 

Indicators for monitoring progress 

(from the Millennium Declaration) 

GOAL 1: ERADICATE EXTREME POVERTY AND HUNGER 

Target  1:  Halve,  between  1990  and  2015,  the 
proportion of people whose income is less than less 
than one dollar a day 

1. Proportion of population below $1 (PPP) per day 

2. Poverty gap ratio [incidence x depth of poverty] 

3. Share of poorest quintile in national consumption 

Target  2:  Halve,  between  1990  and  2015,  the 
proportion of people who suffer from hunger 

4.  Prevalence  of  underweight  children  under-five  years 

of age 

5.  Proportion  of  population  below  minimum  level  of 

dietary energy consumption 

GOAL 2: ACHIEVE UNIVERSAL PRIMARY EDUCATION 

Target  3:  Ensure 
that,  by  2015,  children 
everywhere,  boys  and  girls  alike,  will  be  able  to 
complete a full course of primary schooling 

6. Net enrolment ratio in primary education 

7. Proportion of pupils starting grade 1 who reach grade 

5b 

8. Literacy rate of 15-24 year-olds 

GOAL 3: PROMOTE GENDER EQUALITY AND EMPOWER WOMEN 

Target  4:  Eliminate  gender  disparity  in  primary 
and secondary education, preferably by 2005, and 
in all levels of education no later than 2015 

9.  Ratios  of  girls  to  boys  in  primary,  secondary  and 

tertiary education 

10. Ratio of literate women to men, 15-24 years old 

11.  Share  of  women  in  wage  employment  in  the  non-

agricultural sector 

12.  Proportion  of  seats  held  by  women  in  national 

parliament 

GOAL 4: REDUCE CHILD MORTALITY 

Target 5: Reduce by two-thirds, between 1990 and 
2015, the under-five mortality rate 

13. Under-five mortality rate 

14. Infant mortality rate 

GOAL 5: IMPROVE MATERNAL HEALTH 

15. Proportion of 1 year-old children immunised against 

measles 

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Target 6: Reduce by three-quarters, between 1990 
and 2015, the maternal mortality ratio 

16. Maternal mortality ratio 

17.  Proportion  of  births  attended  by  skilled  health 

personnel 

GOAL 6: COMBAT HIV/AIDS, MALARIA AND OTHER DISEASES 

Target  7:  Have  halted  by  2015  and  begun  to 
reverse the spread of HIV/AIDS 

18. HIV prevalence among pregnant women aged 15-24 

years 

Target  8:  Have  halted  by  2015  and  begun  to 
reverse  the  incidence  of  malaria  and  other  major 
diseases 

19. Condom use rate of the contraceptive prevalence rate 

19a. Condom use at last high-risk sex 

19b.  Percentage  of  population  aged  15-24  years  with 

comprehensive correct knowledge of HIV/AIDS 

19c. Contraceptive prevalence rate 

20.  Ratio  of  school  attendance  of  orphans  to  school 

attendance of non-orphans aged 10-14 years 

21. Prevalence and death rates associated with malaria 

22. Proportion of population in  malaria-risk areas using 
effective malaria prevention and treatment measures 

23.  Prevalence  and  death 

rates  associated  with 

tuberculosis 

24.  Proportion  of  tuberculosis  cases  detected  and  cured 
under directly observed treatment short course DOTS 
(Internationally recommended TB control strategy) 

GOAL 7: ENSURE ENVIRONMENTAL SUSTAINABILITY 

Target  9:  Integrate  the  principles  of  sustainable 
development 
and 
programmes and reverse the loss of environmental 
resources 

policies 

country 

into 

25. Proportion of land area covered by forest 

26.  Ratio  of  area  protected  to  maintain  biological 
diversity to surface area 

27. Energy use (kg oil equivalent) per $1 GDP (PPP) 

28.  Carbon  dioxide  emissions  per  capita  and 
consumption of ozone-depleting CFCs (ODP tons) 

29. Proportion of population using solid fuels 

Target  10:  Halve,  by  2015,  the  proportion  of 
people without sustainable access to safe drinking 
water and basic sanitation 

30.  Proportion  of  population  with  sustainable  access  to 

an improved water source, urban and rural 

31.  Proportion  of  population  with  access  to  improved 
sanitation, urban and rural 

Target 11: By 2020, to have achieved a significant 
improvement  in  the  lives  of  at  least  100  million 
slum dwellers 

32.  Proportion  of  households  with  access  to  secure 

tenure 

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GOAL 8: DEVELOP A GLOBAL PARTNERSHIP FOR DEVELOPMENT 

Target  12:  Develop  further  an  open,  rule-based, 
predictable,  non-discriminatory 
trading  and 
financial system 

Some  of  the  indicators  listed  below  are  monitored 
separately  for  the  least  developed  countries  (LDCs), 
Africa,  landlocked  developing  countries  and  small  island 
developing States. 

Includes  a  commitment  to  good  governance, 
development  and  poverty  reduction  –  both 
nationally and internationally 

Official development assistance (ODA) 

Target 13: Address the special needs of the least 
developed countries 

33.  Net  ODA,  total  and  to  the  least  developed  countries, 
as  percentage  of  OECD/DAC  donors’  gross  national 
income 

countries’ 

Includes: tariff and quota free access for the least 
developed 
enhanced 
programme  of  debt  relief  for  heavily  indebted 
poor  countries  (HIPC)  and  cancellation  of 
official  bilateral  debt;  and  more  generous  ODA 
for countries committed to poverty reduction 

exports; 

Target  14:  Address 
the  special  needs  of 
landlocked developing countries and small island 
developing  States  (through  the  Programme  of 
Action for the Sustainable Development of Small 
Island Developing States and the outcome of the 
twenty-second  special  session  of  the  General 
Assembly) 

Target  15:  Deal  comprehensively  with  the  debt 
problems  of  developing  countries 
through 
national  and  international  measures  in  order  to 
make debt sustainable in the long term 

34.  Proportion  of  total  bilateral,  sector-allocable  ODA  of 
OECD/DAC  donors  to  basic  social  services  (basic 
education, primary health care, nutrition, safe water and 
sanitation) 

35. Proportion of bilateral official development assistance 

of OECD/DAC donors that is untied 

36. ODA received in landlocked developing countries as a 

proportion of their gross national incomes 

37.  ODA  received  in  small  island  developing  States  as  a 

proportion of their gross national incomes  

Market access 

38.  Proportion  of  total  developed  country  imports  (by 
value  and  excluding  arms)  from  developing  countries 
and least developed countries, admitted free of duty 

39.  Average  tariffs  imposed  by  developed  countries  on 
agricultural  products  and  textiles  and  clothing  from 
developing countries 

40. Agricultural support estimate for OECD countries as a 

percentage of their gross domestic product 

41.  Proportion  of  ODA  provided  to  help  build  trade 

capacity  

Debt sustainability 

42.  Total  number  of  countries  that  have  reached  their 
HIPC  decision  points  and  number  that  have  reached 
their HIPC completion points (cumulative) 

43. Debt relief committed under HIPC Initiative 

44. Debt service as a percentage of exports of goods and 

services 

Target  16:  In  cooperation  with  developing 
countries,  develop  and  implement  strategies  for 
decent and productive work for youth 

45.  Unemployment  rate  of  young  people  aged  15-24 

years, each sex and total 

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Target  17:  In  cooperation  with  pharmaceutical 
companies, provide access to affordable essential 
drugs in developing countries 

Target 18: In cooperation with the private sector, 
make available the benefits of new technologies, 
especially information and communications 

46.  Proportion  of  population  with  access  to  affordable 

essential drugs on a sustainable basis 

47.  Telephone  lines  and  cellular  subscribers  per  100 

population 

48. Personal computers in use per 100 population Internet 

users per 100 population 

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ANNEX 2: EU FOCUS ON AFRICA 

This  annex  will  further  develop  the  proposals  of  the  Communication  on  the  three  areas 
mentioned in the Chapter ‘Focus on Africa’.  

1. Improving Africa’s governance 

a. 

The governance challenge 

The  EU  has  supported  African  efforts  to  address  the  governance  challenge  at  three  levels: 
country,  sub-regional  and  –more  recently-  continental.  At  country  level,  the  EU  has  made 
major  efforts  to  support  the  building  of  legitimate,  transparent  and  viable  states.  Through 
different  programs  the  EU  is  supporting  Africa’s  efforts  to  improve  the  quality  of  public 
service,  to  enhance  parliamentary  control,  to  empower  civil  society  and  to  promote  a  more 
long-term  outlook  favouring  sustainable  development.  Positive  signs  can  be  seen:  10 
legislative  elections  took  place  in  2004  (such  as  South  Africa  and  Ghana;  Malawi  and 
Mozambique  –  in  both  of  which  European  Observation  Missions  were  offered)  and  10  are 
scheduled  in  2005  (for  example  Burundi,  CAR,  Ethiopia,  Senegal,  RDC,  Mauritius,  Côte 
d’Ivoire). 

The work to redress fragile states remains critical. To put those countries back on track, the 
EU  is  developing,  on  a  case-by-case  basis,  long-term  strategies  capable  of  addressing  both 
short-term needs and the long-term development agenda. The experience in Burundi shows us 
that the EU can play a key role in ensuring a smooth transition from conflict to development. 
The experience in Burundi also demonstrates that the EU should tackle all parts of the chain: 
the financing of the AU peacekeeping mission, post-conflict reconstruction and the financing 
of elections. 

The  EU  is  equally  supporting  the  capacity  of  the  sub-regional  organisations  as  actors  of 
governance. The EU welcomes the bold positions taken recently by the ECOWAS and SADC 
in  favour  of  the  Rule  of  Law  and  democratic  principles.  The  EU,  based  on  its  own 
experiences  of  regional  integration,  believes  that  fully  effective  and  reliable  RECs  will  be 
crucial  in  creating  sub-regional  trade  markets  and  the  first  building  blocks  in  the  process 
towards continental integration. 

Recently,  a  continental  level  of  governance  has  emerged  with  the  establishment  of  the 
African Union in July 2002, succeeding to the Organisation of African Unity (OAU). The AU 
aims  to  develop  and  integrate  the  continent  through  the  promotion  of  peace  and  good 
governance  on  the  basis  of  African-owned  strategies.  The  AU/NEPAD  agenda  provides  a 
common  framework  for  new  initiatives  in  Africa.  The  EU  has  given  its  full  support  to  this 
young  political  organisation,  which,  only  two  years  after  its  establishment,  has  made 
considerable progress and earned international respect as a credible and legitimate continental 
political interlocutor for Africa. The EU will translate this political commitment into tangible 
support  to  reinforce  the  AU’s  capacities  and  launch  twinning  partnerships  between  the  EU 
and AU, between European and African institutions. 

But  the  EU  must  bring  more  decisive  support  to  African  efforts  to  strengthen  Africa’s 
governance and respect for human rights. Through the African Peer Review process, African 
countries will undergo, through different phases, a comprehensive review of the human, civil, 

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political, economic, cultural and social rights in the country. The EU must support the African 
Partners as they table concrete proposals on all areas of the Review, for example on judicial 
reform, the fight against corruption, public service or social reforms. The EU will support this 
African-led political process and will provide financial support to reforms. 

Good governance will also need to take into consideration environmental sustainability. The 
EU will also work to move environmental concerns into the mainstream of policy making by 
promoting  work  with  the  relevant  national  ministries,  sub-regional  organisations  and  the 
AU/NEPAD on the cost of non-environment. 

b. 

Promotion of Peace and Security 

The AU has shown that it is both willing and able to assume responsibility and leadership for 
the African peace and security agenda in close cooperation with the UN (e.g. Burundi, Côte 
d’Ivoire, Liberia, and Sudan, RCA, DRC/GLR) while the EU has developed instruments able 
to respond on time and efficiently to these efforts. 

The EU was able to provide important support for a broad range of peace building activities 
such  as  mediation,  negotiation  and  reconciliation  efforts,  and  for  demobilisation  and 
reintegration of former combatants and child soldiers. 

Addressing MDG 7 is also important for Peace and Security. Climate change is likely to lead 
to  further  drying  of  the  drought-prone  regions  of  Africa.  Without  adaptation  measures,  this 
could  result in substantial  movements  of population threatening security. Insufficient access 
to or illegal exploitation of natural resources, can create or fuel conflict. Peace efforts benefit 
from taking better account of environmental issues in conflict prevention resolution and post 
conflict. 

The  EU  has,  at  the  request  of  the  African  leaders  in  Maputo,  set  up  the  Peace  Facility  for 
Africa  (€250  million)  to  support  African  peacekeeping  efforts.  Rapidly,  this  instrument  has 
become the financial backbone of the emerging African Peace and Security architecture. The 
Peace Facility has already been used to finance peace support missions in Darfur (Sudan) and 
the Central African Republic as well as to provide capacity building support for the AU Peace 
and  Security  Directorate.  For  the  future,  coherence  needs  to  be  maintained  between  the 
developmental  approach  of  the  Peace  Facility  for  Africa  on  the  one  hand  and  support 
measures foreseen in the framework of the European Security and Defence Policy (ESDP) on 
the other. 

In  the  future,  the  EU  should  continue  to  be  able  to  provide  the  African  Union  and  the  sub-
regional organisations with the necessary financial means to resolve conflicts. To this end, the 
EU should ensure sufficient financing of the Peace Facility. 

2. Connecting Africa: infrastructure and trade 

(a) 

Creating and sustaining regional infrastructure networks and services 

High transport costs handicap Africa’s capacities to compete within a global market. Inland 
transport costs are twice as high in Sub Sahara Africa countries than in Asia and international 
maritime  costs  are  three  times  higher.  Higher  costs  are  due  to  a  combination  of  factors, 
including lower road quality, time-consuming port procedures and practices, a complexity of 
documentation and in some countries insufficient competition between service providers. 

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The  EU,  working  together  with  the  Africa  Union  and  in  the  context  of  the  NEPAD 
Infrastructure Short-Term Action Plan, will focus on improving trade facilitation – including 
in  relation  to  the  development  of  transparent  and  simplified  import,  export  and  transition 
procedures  and  statistical  services  –  and  addressing  the  missing  links  of  regional  and  intra-
regional networks for interconnectivity across sub-Saharan African creating a Trans-African 
Network. 

Together  with  the  AU,23  the  EU  will  continue  developing  research  infrastructures  in  the 
developing  countries  and  will  focus  on  the  means  to  develop  further  infrastructure-related 
knowledge,  and  to  ensure  a  fair  access  to  this  knowledge,  in  order  for  the  infrastructure 
projects to become a foundation for technological innovation. 

The Commission proposes a Europe-Africa partnership on Infrastructure, including research 
and  statistical  infrastructures,  sustainable  transport,  Information  and  Communication 
Technologies, satellites, water and sanitation, energy that will fill this existing gap. In doing 
so, this Partnership will act as a catalyst for other donors. The Commission proposes to agree 
on a map of strategic African networks, agreed with the AU, to which priority will be given. 

(b)  More and better trade for sub-Saharan Africa 

Trade  cooperation  between  Europe  and  sub-Saharan  Africa  has  been  based  mainly  in 
exemptions  from  MFN  customs  duties  and  tariff  quotas  granted  to  the  ACP  countries  for 
promoting the access of their products into the European market. While firmly placing the EU 
as  Africa’s  top  trading  partner,  such  preferences  have  not  always  delivered  the  expected 
developmental  results.  In  fact,  preferences  alone  are  not  sufficient  to  trigger  exports, 
economic  growth  and  development  if  there  is  not  sufficient  investment  in  Africa  and  hence 
production  of  exportable  goods  or  if  the  goods  do  not  correspond  to  the  demand  and 
requirements in the importing markets. 

At  present,  too  many  local  markets  remain  over-protected,  tiny  and  unattractive,  providing 
little incentive for domestic or foreign investment. It is not only important to develop a more 
comprehensive  process  but  also  to  improve  trade.  For  its  traditional  trade  flows,  Africa  is 
overwhelmingly  dependent  on  Europe.  Therefore,  it  is  equally  important  to  improve  trade 
within Africa by building efficient African markets as it is to increase trade with the EC 
and  other  trading  partners.  In  a  nutshell,  African  countries  have  to  integrate  in  the  global 
economy in a way that corresponds to their development needs. 

This  is  the  very  reason  behind  the  launching  of  the  negotiations  of  six  regional  Economic 
Partnership Agreements (EPAs), four of which are in Africa.  

23 

In  the  context  of  the  NEPAD  African  Forum  for  Science  and  Technology  and  in  line  with  the 
Millennium Goals Project Report Promoting Innovation to Improve Lives in Developing Nations,  

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Economic Partnership Agreements 

EPA negotiations and implementation are closely linked with development cooperation with a 
view to improving economic governance, fostering competitiveness and building supply side 
capacity  in  a  manner  consistent  with  sustainable  development  objectives.  In  addition,  it  is 
also  necessary  to  ensure  effective  access  of  African  goods  to  EU  and  other  markets  by 
addressing  the  problems  African  countries  are  encountering  in  the  area  of,  among  others, 
rules of origin, technical regulations and standards, by taking account of the external effects 
of EU legislation and by supporting the efforts of the countries concerned to deal with them. 

Trade  will  be  at  the  service  of  development,  leaving  a  high  degree  of  flexibility  to  take 
account  of  the  development  challenges  in  Africa.  Market-building  will  precede  market 
opening. Flexibility will be applied as regard asymmetry and progressiveness of ACP tariff 
reductions,  taking  into  account  the  level  of  development  of  the  economies  concerned.  The 
transition  period  opening  toward  EU  goods  from  2008  onwards  may  be  extended  beyond 
10 years  to  address  ACP  regional  development  needs.  Appropriate  safeguard  and  food 
security clauses will be included. 

The  transition  to  new  trading  arrangements  requires  assessing  any  risks  of  temporary  or 
structural difficulties or losses for certain countries. Given the flexibility and duration of the 
transitional  period,  such  negative  effects  would  be  diluted  over  a  reasonable  time  scale. 
Nevertheless,  these  issues  must  be  carefully  taken  into  account  and  for  this  purpose 
Sustainability Impact Assessments (SIAs) have been launched and are currently under way. 

EPA will ensure compatibility and build synergies with multilateral trade negotiations under 
the Doha Development Agenda (DDA), as well as with the African Union long term project 
of  consolidating  the  continental  market,  for  which  they  would  become  regional  “building 
blocs”. 

The following focal areas of action have been identified: 

•  Economic governance: EPAs supports triggering and locking-in reforms in key areas such 
investment,  employment  social  and 
taxation, 

trade  facilitation, 

as  customs  and 
environmental policies. 

•  Trade-related assistance should be stepped up as discussed in the related Communication 
on  Financing  and  should  address  sensitive  areas  such  as  sanitary  and  phytosanitary 
requirements,  regional  integration,  technical  regulations,  support  to  national  statistical 
services and customs cooperation. 

•  Targeted  support  measures  are  being  adopted  in  key  areas  such  as  cotton,  sugar  and 
textiles to increase competitiveness and promote diversification where possible of African 
producers in sensitive sectors. 

•  Identify  adequate  and  timely  available  resources  to  prevent  or  remedy  any  major  risk 
signalled by impact assessments and support economic adjustment measures in particularly 
protecting  the  weakest  and  worst-affected  economies  and  social  groups,  essential  public 
services and social policies. 

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•  Support  an  ambitious  Trade  Facilitation  agenda  to  eliminate  trade  barriers  between 
countries,  including  burdensome  import,  export  and  transition  procedures  (as  is  being 
discussed in the framework of the DDA WTO negotiations. 

3.  Strive  towards  equitable  societies  which  promote  access  to  services,  employment, 

decent work for both men and women 

Sustained  growth  is  an  essential  condition  for  poverty  eradication  but  not  a  sufficient  one. 
Access  to  sustainable  basic  services  and  to  full  and  productive  employment  and  ensuring 
decent work for both men and women are a necessary condition for any long term sustainable 
development and is key in all strategies to reach the MDGs. 

Efforts targeted to promote social cohesion, and notably the improvement of access to basic 
services, are crucial: drinking water and sanitation, investment in human resources, including 
primary  education,  gender  equality  at  all  levels  of  education,  employment  and  social 
protection  services,  the  reduction  of  child  and  maternal  mortality,  improved  basic  health 
services  including  sexual  and  reproductive  health  and  rights,  including  struggle  against 
HIV/AIDS, malaria and other major diseases. 

If progress on the other MDGs is to be maintained over the 10 years to 2015, more attention 
will  need  to  be  paid  to  environmental  sustainability.  The  framework  for  doing  so  already 
exists  in  the  NEPAD  environment  initiative,  a  strategy  prepared  by  African  Ministers 
themselves. 

Poverty  eradication,  gender  equality,  improving  child  and  women’s  health  and  removing 
barriers  to  access  to  education  all  have  strong  links  with  environment  and  the  sustainable 
management of natural resources. The poor in Africa mostly depend on the environment for 
their livelihoods. To ensure progress, capacity for the management of natural resources needs 
to be strengthened and the costs of not protecting the environment have to be understood by 
Finance Ministries and donors alike. 

Similarly,  regional,  decentralised  development  creates  social  cohesion  and  solidarity  among 
its  citizens.  Local  development  allows  children  and  old  people  to  have  their  place  in  the 
society. It creates a social safety net and limits on migration. Local, integrated approaches will 
be set up to reinforce the role of secondary centres as development hubs for their surroundings 
(centres  of  services).  Local  and  regional  initiatives  need  to  be  supported  by  adequate  and 
complementary policy measures at national level. In addition to access to basic services, the 
EU  will  support  the  promotion  of  jobs  and  decent  work  for  all  as  a  global  goal.  It  also 
recognises  the  need  to  address  the  importance  of  post  primary  education  and  training  in 
particular in national strategies and is prepared to work jointly with partner countries, regional 
organizations and donors on ways to best address it. It is also important to increase skills of 
young  African  workers  to  increase  productive  employment  opportunities  and  to  address  the 
informal economy. 

In  addition,  African  countries  that  are  ready  to  take  specific  and  ambitious  actions  to 
improve  equity  in  their  societies  deserve  Europe’s  bold  support.  Additional  financial 
assistance should be offered to those who engage in this process. Such support should be 
provided in full alignment with the Poverty Reduction Strategies and the budget cycle.  

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SUMMARY OF COMMITMENTS 

EU commitment to Africa (1) 

In  the  short  term,  the  EU  will  consider  the  following  commitments:  providing  financial 
support24 to develop the African Union’s capacity and especially its Commission. Through 
this  support,  the  EU  will  help  the  African  Union  to  live  up  to  the  expectations  of  its 
commitments.  The  EU  will  accompany  the  African  Union  in  the  transformation  of  its 
institutions to become the central reference institution for Africa’s governance. 

EU commitment to Africa (2) 

To  be  strong  and  effective,  our  partnership  with  Africa  must  be  broad.  The  EU  institutions 
should  seek  twinning  partnerships  with  their  AU  counterparts,  such  as  the  Pan  African 
Parliament,  the  Economic,  Social  and  Cultural  Council  (ECOSOCC)  or  Peace  and  Security 
Council.  These  partnerships  should  serve  as  a  catalyst  for  linking  all  European  and  African 
stakeholders,  from  Universities,  Municipalities,  Businesses  and  Industries  to  Trade  Unions, 
Civil Society networks or Cultural institutions. 

EU commitment to Africa (3) 

The EU is ready to support African efforts in building more effective states in Africa. In order 
to give a decisive incentive to the reform of governance in Africa, the EU, the Commission 
and the Member States should put into place a joint financial mechanism25 with AU/NEPAD 
to  support  the  implementation  of  reforms  that  the  Africa  Peer  Review  Mechanism  (APRM) 
will  trigger.  These  efforts  will  be  done  in  full  coherence  with  the  national  strategies  and 
PRSPs. 

EU commitment to Africa (4) 

The  EU  will  conclude  the  replenishment  of  the  Peace  Facility  before  the  end  of  200526, 
including  in  a  first  stage  with  the  topping  up  of  the  current  budget  through  allocating  a 
proportional  share  from  the  South  African  European  Programme  for  Reconstruction  and 
Development (EPRD) as was requested by the AU Summit in Maputo. 

24 

25 

26 

The  Commission  proposed  a  support  of  up  to  EUR  50  million  in  the  framework  of  the  so  called 
“Conditional Billion”. 
The  intra-ACP  resources  will  provide  an  initial  amount.  Other  possibilities  within  the  EDF  are  being 
identified. 
Possibilities within the EDF are currently being identified. 

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EU commitment to Africa (5) 

The  Commission  proposes  to  set  up  a  Europe-Africa  partnership  on  Infrastructure27.  The 
Partnership, based on the AU/NEPAD strategies, will support the establishment of sustainable 
cross-border  infrastructure  essential  for  interconnectivity  and  knowledge-sharing  on  the 
continent.  Finance  provided  will  leverage  private  sector  investments.  In  the  first  phase,  the 
Partnership  will  build  on  the  examples  of  the  Water  and  Energy  Facilities  and  focus  on 
sub-Saharan Africa. In a second phase, the Partnership will trigger input from other donors, 
including efforts by the EU Member States to increase their aid budgets. 

EU Commitment to Africa (6) 

The  EU  will  provide  incentives  to  the  promotion  of  equitable  and  sustainable  societies  in 
Africa. To this effect, the EU will take account of concrete policy measures to improve equity 
and  environmental  sustainability  as  part  of  the criteria  to  determine  the  aid  allocations  of 
ACP  countries28.  This  will  ensure  that  there  will  be  additional  resources  available  for 
countries  that  show  that  they  are  willing  and  able  to  address  issues  of  inequality  and 
marginalisation, environmental degradation and promote social cohesion.  

27 

28 

As  for  the  institutional  and  financial  modalities,  the  EU  will  build  on  the  rich  experiences  gained 
through  the  Water  and  Peace  Facility.  Eligible  are  all  Public  Private  Partnership,  sub-regional 
organisations, or pan African structures (such as AMCOW) who submit a proposal of intra-regional or 
continental  nature.  In  order  to  increase  both  the  continental  coherence  and  the  ownership,  every 
proposal would require the political endorsement of the AU. Until end 2007 financing is foreseen under 
the 9th EDF. 
This will be done in the framework of the allocations within the new financial perspectives and notably 
with the Development Cooperation and Economic Cooperation Instrument. 

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