Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions - Proposal for a joint declaration by the Council, the European Parliament and the Commission on the European Union Development Policy - “The European Consensus” {SEC(2005) 929}
Date: 2005-07-13
Institutions: European Commission
Subjects: cooperation policy, developing countries, development aid, development policy, fundamental rights, globalisation, poverty

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 13.7.2005 
COM(2005) 311 final 

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

Proposal for a 

JOINT DECLARATION BY THE COUNCIL, THE EUROPEAN PARLIAMENT AND 
THE COMMISSION 

on the European Union Development Policy 

“The European Consensus” 

{SEC(2005) 929} 

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TABLE OF CONTENTS 

Introduction ................................................................................................................................ 4 

Part one: A European Union Strategy for Development............................................................ 6 

1. 

1.1. 

1.2. 

1.3. 

1.4. 

1.5. 

A common vision of development ............................................................................... 6 

The scope of development policy ................................................................................ 6 

The values underpinning the EU.................................................................................. 6 

Poverty reduction: an objective embedded in the international agenda....................... 6 

Other EU objectives in the area of development ......................................................... 7 

Development: a strategy for equitable globalisation.................................................... 8 

1.5.1.  The links between development and security .............................................................. 8 

1.5.2. 

... between development and migration ....................................................................... 8 

1.5.3. 

... between development and trade ............................................................................... 8 

1.5.4. 

... between development and environment................................................................... 9 

1.5.5.  … between development and social dimension of globalisation ................................. 9 

2. 

2.1. 

2.2. 

2.3. 

2.4. 

3. 

4. 

4.1. 

4.2. 

Shared principles.......................................................................................................... 9 

Supporting performance............................................................................................... 9 

The participation of civil society.................................................................................. 9 

In-depth political dialogue ......................................................................................... 10 

A commitment to fragile states .................................................................................. 10 

Actions based on a common thematic framework ..................................................... 10 

An operational translation of the common strategy ................................................... 11 

Increasing financial resources .................................................................................... 12 

Strengthening aid effectiveness.................................................................................. 12 

4.2.1.  Acting together for greater coordination, harmonisation and alignment ................... 12 

4.2.2. 

Increasing the quality of aid, including via innovative and flexible mechanisms ..... 13 

4.3. 

Ensuring policy coherence for development.............................................................. 13 

Part two: Guidelines for implementation of development policy by the Community ............. 14 

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ANNEX - Part two: Guidelines for implementation of development policy by the Community
.................................................................................................................................................. 15 

1. 

2. 

2.1. 

2.2. 

3. 

3.1. 

3.2. 

3.3. 

3.4. 

4. 

The particular role of the Commission....................................................................... 15 

A differentiated approach depending on contexts and needs..................................... 15 

Differentiation in the implementation of development cooperation .......................... 15 

Transparent criteria for resource allocation ............................................................... 16 

Priorities chosen in consultation with partner countries ............................................ 17 

The principle of concentration while maintaining flexibility .................................... 17 

The Community’s contribution to implementation of the common thematic 
framework .................................................................................................................. 17 

A strengthened approach to mainstreaming............................................................... 23 

Support for global initiatives and funds ..................................................................... 23 

A range of modalities based on needs and performance............................................ 24 

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The European Union Development Policy 

“The European Consensus” 

INTRODUCTION 

1. 

2. 

3. 

4. 

1 

2 

3 

The  main  challenge  the  international  community  must  face  today  is  to  ensure  that 
globalisation  is  a  positive  force  for  all  of  mankind.  Even  if  globalisation  offers 
considerable  opportunities,  at  the  present  time,  its  benefits  and  costs  are  unequally 
distributed.  EU  action  in  the  area  of  development  is  thus  carried  out  against  a 
backdrop  of  better  harnessing  the  globalisation  process.  It  aims  at  optimising  its 
benefits  and  at  a  more  equitable  distribution  of  its  costs  with  a  view  to  peace  and 
overall stability. The elaboration of an international development agenda1 has taken 
place  alongside  the  rise  of  international  terrorism  and  conflicts  in  the  poorest 
countries,  a  considerable  increase  in  migratory  flows,  including  refugees  and 
displaced persons, and a rise in illicit trafficking and global environmental threats. 

The EU’s external action reflect its identity as a global player and partner working to 
promote its objectives, its values, to consolidate democracy, the rule of law, respect 
for human rights and the principles of international law; preserve peace and prevent 
conflicts; support sustainable development, and promote good world governance.  

The  external  action  also  aims  at  integrating  the  external  dimension  of  the  EU’s 
internal  policies  and,  as  such,  at  representing  the  European  model.  Coherence  and 
synergy  between  these  two  dimensions  -  external  and  internal  -  are  essential 
prerequisites for advancing the EU’s main agenda: prosperity, security and solidarity 
in a context of sustainable development. 

Development policy is at the heart of EU external action. Focussing on the primary 
goal  of  poverty  reduction,  it  contributes  to  the  EU’s  social,  environmental  and 
security  objectives  and  to  better  harnessing  of  globalisation.  As  part  of  an 
international  strategy,  development  is,  together  with  security,  trade  and  the 
environment, one of the fields in which  the EU’s commitment to multilateralism is 
most operational2. In synergy with other aspects of the EU’s external action, such as 
the  neighbourhood  policy  and  strategic  partnerships  elsewhere  in  the  world, 
development policy ensures coherent and effective external action. 

Halving  poverty  in  the  world  between  now  and  2015  is  the  major  challenge  of  the 
years  to  come.  The  EU  provides  55%  of  world  development  aid3.  In  2002  in 
Monterrey  and  more  recently  –  in  the  light  of  the  UN  Summit  in  New  York  in 

Action programmes adopted at the UN conferences of the 1990s in the social, economic, environmental 
and  human  rights  fields.  Millennium  Declaration  and  Millennium  Development  Goals  (2000), 
Monterrey (2002), Johannesburg (2002), New York (September 2005). 
Examples of multilateralism in action in these four fields: the decisive role played by the EU in setting 
up  the  International  Court  of  Justice;  the  ratification  of  the  Kyoto  protocol  for  the  environment;  the 
drawing  up  of  the  Doha  Trade  and  Development  Agenda,  the  Beijing  Action  Platform  for  gender 
equality;  the  Brussels  conference  on  least  advanced  countries  and  the  development  of  the  Monterrey 
consensus on development financing.  
The EU also contributes 55% of overall contributions to the IDA 14. 

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September 2005 - it strongly reaffirmed its will to contribute to the achievement of 
the  Millennium  Development  Goals,  and  undertook  to  increase  its  aid  volumes  to 
0.56%  of  GNI  in  2010  with  a  view  to  reaching  0.7%  in  2015.  The  EU  is  also  the 
most  open  trading  partner  for  the  least  advanced  countries  and  other  low-income 
countries. 

5. 

The  Member  States  and  the  Community  are  equally  committed  to  the  principles  of 
partnership  and  respect  for  partner  countries’  responsibility  for 
their  own 
development, the fundamental values and the objectives approved at the multilateral 
level.  European  aid  effectiveness  can  and  must  increase  through  renewed  efforts  at 
coordination and harmonisation. To this end, the “European Consensus” sets out, for 
the  first  time  in  fifty  years  of  cooperation,  the  framework  of  common  principles 
under  which  the  EU  and  its  twenty-five  Member  States  will  implement  their 
development policies in a spirit of complementarity.  

This common framework is the subject of the first part of the Statement proposed in 
this  Communication;  the  second  part  of  the  Statement  sets  out  guidelines  for  the 
implementation of this common framework at the level of Community policy.  

6. 

The Commission asks the Council and Parliament to endorse this common vision of 
development, considering that a tripartite statement would contribute significantly to 
the aims of coherence and effectiveness in the area of EU external action. 

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PART ONE 
A EUROPEAN UNION STRATEGY FOR DEVELOPMENT  

The first part of the Statement sets out the objectives and principles on the basis of which the 
Member States and the Community commit to a common vision. 

1. 

A COMMON VISION OF DEVELOPMENT 

The EU is a major player on the international scene. It aims to be a positive force for change 
by  contributing  to  better  harnessing  of  globalisation  and  more  equitable  sharing  of  the 
opportunities  and  wealth  it  generates.  Its  action  supports  the  efforts  of  the  developing 
countries themselves. 

1.1. 

The scope of development policy 

EU  development  policy  concerns  all  developing  countries  benefiting  from  public 
development aid as listed by the OECD development aid committee4.  

1.2. 

The values underpinning the EU 

The EU is based on values common to all its Member States, which it affirms and promotes in 
its  relations  with  the  rest  of  the  world.  These  values  include  respect  for  human  dignity, 
freedom, democracy, equality, the rule of law and human rights. On the basis of these values 
the  EU  endeavours  to  build  partnerships  with  third  countries  and  international,  regional  or 
world-wide  organisations  which  share  the  principles  of  the  universality  and  indivisibility  of 
human rights and fundamental freedoms. 

EU  development  policy  falls  within  the  broader  scope  of  the  principles  and  aims  of  its 
external  action.  It  promotes  multilateralism  whereby  all  the  world’s  nations  share 
responsibility  for  the  management  of  development  and  the  risks  threatening  security  on  a 
global  scale.  It  operates  in  the  framework  of  the  United  Nations  and  promotes  a  system  of 
rules,  institutions  and  international  instruments  set  up  and  implemented  by  the  international 
community, in particular for trade, the international financial structure, employment and the 
environment. 

1.3. 

Poverty reduction: an objective embedded in the international agenda 

The  international  development  agenda  is  summarised  in  the  September  2000  Millennium 
Declaration which focuses on social and human development, human rights, equality between 
men  and  women,  the  close  relationship  between  development  and  the  environment  and  the 
links between trade and development and sets out a framework of action to which the EU is 
fully committed. The Millennium Development Goals reflect the political commitments made 
by  all  the  UN  Member  States  on  the  basis  of  a  timetable  that  should  make  for  substantial 
progress in each country between now and 2015.  

4 

Currently  151  countries  (including  the  territories  of  the  DAC  list)  representing  a  total  of  some  five 
billion people. 

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The eight Millennium Development Goals (MDGs) are: 

(1) eradicate extreme poverty and hunger, 

(2) achieve universal primary education, 

(3) promote gender equality and empower women, 

(4) reduce the mortality rate of children, 

(5) improve maternal health, 

(6) combat HIV/AIDS, malaria and other diseases, 

(7) ensure environmental sustainability, 

(8) develop a global partnership for development. 

The  Monterrey  conference  on  financing  and  the  Johannesburg  summit  on  sustainable 
development  built  on  these  commitments,  in  particular  by  affirming  the  importance  of 
partnership  and  the  sharing  of  responsibilities  between  industrialised  and  developing 
countries,  the  progress  to  be  made  as  regards  governance,  and  the  necessary  balance  to  be 
ensured  between  the  three  pillars  -  economic,  social  and  environmental  -  of  sustainable 
development. The poverty reduction strategy must be based on the commitments adopted at 
international  summits  and  major  conferences  in  the  social,  economic,  environmental  and 
human rights fields. 

1.4. 

Other EU objectives in the area of development  

The  EU  considers  that  the  overriding  objective  of  poverty  reduction  is  based  on  the 
complementary aims of promoting good governance and respect for human rights, which form 
an integral part of long-term development. 

Governance  

•  Good governance, including states’ capacity to ensure respect for the rights and freedoms 

of their citizens, and democratisation 

•  The  prevention  of  conflict  and  fragility  of  states,  which  constitute  major  obstacles  to  the 

MDGs 

Human rights 

•  The  promotion  of  human  rights  as  laid  down  in  international  conventions  and  other 
international instruments, including civil and political rights, economic, social and cultural 
rights, children’s rights, equality between men and women, sexual and reproductive rights 
and the rights of minorities and indigenous populations 

•  Social cohesion and social welfare, including through the promotion of decent work for all 

•  Respect for the fundamental rights of migrants, refugees and displaced persons 

EU  development  policy  is  an  important  component  of  its  sustainable  development  strategy. 
Development is also crucial for the aims of prosperity and solidarity that guide the EU. The 
EU  aims,  both  in  its  internal  policies  and  its  external  action,  to  ensure  that  globalisation 
benefits all and incorporates a strong social dimension. This differentiates Europe from other 
global players. 

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1.5. 

Development: a strategy for equitable globalisation 

1.5.1.  The links between development and security 

Poverty  implies  a  lack  of  opportunities,  power  and  choices.  Empowerment,  participation, 
inclusion and accountability are four important aspects of both security and development. 

is  crucial  for  collective  and  individual 

Development 
they  are 
complementary agendas and neither is subordinate to the other. There cannot be sustainable 
development  without  peace  and  security,  and  sustainable  development  is  the  best  structural 
response to the deep-rooted causes of violent conflicts and the rise of terrorism, often linked 
to poverty, bad governance and the deterioration and lack of access to natural resources.  

long-term  security: 

1.5.2. 

... between development and migration 

An  increase  in  migratory  flows  is  one  element  of  globalisation.  Development  is  the  most 
effective  long-term  response  to  forced  migration  and  destabilising  migratory  flows:  it 
improves living conditions and employment prospects in developing countries and contributes 
to  peace  and  security.  Development  cooperation  is  also  part  of  the  recipe  for  sustainable 
solutions for refugees and displaced persons and in combating the trafficking of human beings 
and illegal migrants. The vulnerability of women and children to these phenomena calls for 
special efforts to be made.  

In turn, the positive impact of migratory phenomena on development must be maximised, in 
particular via transfers of migrant workers’ incomes and the movement of qualified persons. 
The  EU  will  seek  to  optimise  these  favourable  effects  and  to  limit  the  “brain  drain”,  in 
particular in the health and research sectors. 

1.5.3. 

... between development and trade 

The EU, as the most open trading partner of developing countries, will continue to work for 
properly  sequenced  market  opening,  underpinned  by  an  open,  equitable,  rules-based 
multilateral trading system, that has protection of the weaker nations of the world explicitly 
built  into  its  rulebook  and  modus  operandi.  The  bilateral  and  unilateral  preference  schemes 
will  remain  important  development  tools.  The  developing  countries,  for  their  part,  are 
increasingly aware of the need to systematically incorporate trade into their development and 
poverty  reduction  strategies  while  ensuring  the  implementation  of  the  necessary  internal 
reforms to enable them to take advantages of these opportunities.  

Recognising that  developing countries  need more substantial support for  this  often complex 
process of trade opening-up and integration, the EU will further improve and better coordinate 
trade-related  aid  programmes  and  provide  additional  support  for  adjustment  and  integration 
into the world economy, in cooperation with the international community. Particular attention 
will be paid to the least advanced and most vulnerable countries.  

Regional  integration  and  the  multilateral  trade  system  reinforce  one  another.  Developing 
countries’  commercial  policy  is  increasingly  shaped  in  a  regional  context.  The  EU  will 
continue to promote regional integration as a relevant strategy for harmonious and progressive 
integration  of  developing  countries  into  the  world  economy,  also  in  the  framework  of  the 
economic partnership agreements. 

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1.5.4. 

... between development and environment 

Poverty is closely linked to environmental issues. The poorest people are the most dependent 
on natural resources for survival, which they are often forced to over-exploit. They are also 
the  worst  affected  by  a  degraded  environment.  Sustainable  development  aims  to  ensure 
intergenerational equality via resource management that takes account of future generations. 
Ensuring  sustainable  management  of  natural  resources,  combating  climatic  change, 
deforestation  and  desertification  and  halting  biodiversity  loss  are  essential  for  achieving  the 
MDGs. 

Globalisation  brings  with  it  major  environmental  challenges.  The  EU  will  encourage  the 
development of production and consumption methods that limit the harmful consequences of 
growth for the environment. It will support the inclusion of environmental considerations in 
poverty reduction and equivalent development strategies.  

1.5.5.  … between development and social dimension of globalisation 

The EU will support the strengthening of the social dimension of globalisation with a view to 
contribute on extending the benefits to all. The EU will endeavour to ensure policy coherence 
for  development  and  to  promote  mutually  reinforcing  economic,  employment,  social  and 
environmental  policies  at  global,  regional  and  national  level.  In  addition  the  EU  has  the 
intention to promote decent work for all, to enhance its support for fair trade and to encourage 
European companies to adhere to the principles of Corporate Social Responsibility. 

2. 

SHARED PRINCIPLES 

2.1. 

Supporting performance 

The  developing  countries  have  the  primary  responsibility  for  conducting  coherent  and 
effective policies and mobilising their own development resources. Recognising the value of 
different  development  methods,  the  EU  supports  those  partner  countries’  poverty  reduction, 
development  and  reform  strategies  which  are  coherent  and  focussed  on  the  MDGs.  The 
developing countries and the EU share responsibility and accountability for their joint efforts 
and for the results. 

The  principles  of  partnership  and  ownership  of  development  cooperation  strategies  and 
programmes  by  the  partner  countries  and  alignment  on  their  strategies  and  procedures 
constitute  the  basis  of  EU  policies  vis-à-vis  developing  countries.  The  EU  encourages 
increased  involvement  of  official  institutions  that  represent  society,  in  particular  national 
assemblies, parliaments and local authorities. 

2.2. 

The participation of civil society 

The  EU  encourages  the  participation  of  partner  countries’  civil  society  and  other  non-state 
actors in the development process in order to ensure the viability, effectiveness and impact of 
development  strategies  and  programmes.  It  encourages  in  particular  the  emergence  of 
economic  and  social  players  such  as  trade  unions,  employers’  organisations  and  the  private 
sector as development partners while continuing to support civil society organisations which 
specialise  in  development.  It  seeks  to  promote  and  facilitate  political  and  social  dialogue 
between  the  different  players  and  with  the  institutions  of  the  Community  and  the  partner 
countries.  

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2.3. 

In-depth political dialogue 

In relation to both political dialogue and aid methods, the EU is moving towards an approach 
based on results and progress indicators. 

Respect  for  human  rights,  democratic  principles  and  the  rule  of  law  are  the  subject  of  a 
regular  political  dialogue  aiming  to  assess  developments  and  identify  supporting  measures, 
the  aim  of  which  will  be  to  prevent  situations  of  breach  of  these  elements,  considered 
essential in all EU partnership and cooperation agreements. This regular  dialogue must also 
address  issues  of  governance,  paying  close  attention  to  prevention  and  the  fight  against 
corruption.  

2.4. 

A commitment to fragile states 

The EU intends to pay greater attention to poorer countries, difficult partnerships5 and fragile6 
and  failed  states.  Thirty  per  cent  of  the  poorest  people7  live  in  fragile  states,  to  which  the 
principles of partnership and ownership must be adapted on a case-by-case basis. 

For  reasons  of  solidarity  with  the  populations,  of  long-term  aid  effectiveness  and  of  global 
security,  preventing  the  emergence  of  failed  states  has  become  a  crucial  task.  It  is  in  this 
context  that  the  EU  advocates  remaining  engaged,  even  in  the  most  difficult  country 
situations.  This  assumes  an  appropriate  balance  between  the  priorities  of  foreign  policy  and 
development, and synergies must be sought between the various instruments implemented by 
the EU and its Member States.  

In  transition  situations,  the  EU  undertakes  to  promote  and  apply  the  principle  of  linkage 
between  emergency  aid,  rehabilitation  and  long-term  development  by  ensuring  coordination 
and  complementarity  with  other  regional  multilateral  organisations  and  civil  society.  The 
process  of  development  in  a  post-crisis  situation  will  be  guided  by  integrated  transition 
strategies comprising at the same time political responses and financial support appropriate to 
the  changing  needs.  The  aim  of  these  strategies  will  be  to  set  up  or  restore  the  essential 
conditions  necessary  for  the  implementation  of  long-term  development  programmes,  and  in 
particular  to  rebuild  institutional  capacities,  essential  social  services,  food  security  and 
infrastructure  and  provide  sustainable  solutions  for  refugees,  displaced  persons  and  the 
general security of citizens. 

The EU also has a historic responsibility towards small developing countries, e.g. islands, that 
are particularly vulnerable to natural disasters, climatic change and external economic shocks. 
The major challenge will be to increase their resilience in the face of these challenges.  

3. 

ACTIONS BASED ON A COMMON THEMATIC FRAMEWORK 

The EU  must have the capacity to respond to a  broad variety of situations and needs in the 
partner countries. A common thematic framework for EU and Member States’ development 

5 

6 
7 

Difficult  partnerships  are  defined  on  the  basis  of  one  of  the  following:  lack  of  commitment  by  the 
authorities  to  the  objective  of  poverty  reduction;  weak  governance;  corruption  and/or  political 
repression;  institutions  unable  to  ensure  their  citizens’  security  or  the  conditions  necessary  to  live  in 
peace and freedom.  
This concept covers difficult partnerships and crisis/post-crisis situations. 
Extreme poverty is defined by an income level of less than 1 dollar per day. 

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policies will make it possible to coordinate the economic, social, environmental and political 
aspects of the poverty reduction objective and ensure its multisectoral character. Identification 
of  these  themes  will  also  facilitate  greater  coherence  between  EU  development  policy  and 
other internal and external policies. 

Action themes for the EU 

•  Development of human rights and capacities, access to essential services (human 
rights,  children’s  rights,  equality  between  men  and  women,  reproductive  and 
sexual  rights,  right 
to  food,  health,  combating  poverty-related  diseases, 
population, migration, education, training, culture, consumer rights). 

•  Governance  for  development  and  security  (governance  and  democratisation 
processes, state reform, decentralisation, fight against corruption and tax evasion, 
strengthening  of  civil  society,  prevention  of  conflict,  the  fragility  of  states  and 
natural  disasters,  and  management  of  the  transition  between  emergency  and 
development). 

•  Environment and sustainable management of natural resources (management and 
protection  of  forests,  water,  marine  resources  and  biodiversity,  access  to 
sustainable  energies,  climatic  change,  desertification  and  soil  degradation, 
sustainable  management  of  chemical  products  and  waste,  sustainable  production 
and consumption methods). 

•  Economic  growth  and  trade  development,  factors  in  sustainable  development 
(support for reforms, regional integration, agriculture, fisheries, the private sector, 
redistribution  of  the  income  from  growth,  economic  cooperation,  development 
technology,  networks, 
research,  energy, 
infrastructure and access to transport). 

information  and  communication 

•  Food security (availability and accessibility of food, nutritional quality, prevention 
of food crises) and regional planning (rural and urban development, decentralised 
local  development,  management  of  the  balance  between  human  activities  and 
ecosystems). 

•  Combating inequalities and promoting social cohesion, including decent work for 
all (social welfare and inclusion, productive employment, development of human 
resources,  fundamental  social  rights  including  combating  child  labour,  social 
dialogue) 

On  the  basis  of  this  thematic  framework,  the  EU  will  be  able  to  develop  common  policy 
guidelines.  

4. 

AN OPERATIONAL TRANSLATION OF THE COMMON STRATEGY 

The  Treaty  establishes  a  very  clear  framework  and  lays  down  the  principles  underlying  the 
actions  of  the  Community  and  the  Member  States:  coordination,  complementarity  and 
division of competences. The EU will pay all necessary attention to the need to account for 
and make visible to the EU citizen how its contributions are incorporated, in particular where 
multilateral operations are concerned. 

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4.1. 

Increasing financial resources 

The EU reaffirms its commitment to increasing aid budgets (public development aid) with a 
view  to  reaching  0.7%  of  gross  national  income  in  2015,  a  level  considered  necessary  by 
international experts to achieve the MDGs and to pursue the other development cooperation 
objectives. To that end, the EU has set an intermediate collective target of 0.56% in 2010 and 
an individual objective of 0.51% (EU-15) and aiming at 0.17% (EU-10) taking account of the 
situation of the Member States that joined after 2002. It calls on the other donor countries and 
emerging countries to join this crucial effort.  

The  EU  has  committed  to  consider  the  most  promising  options  for  innovative  sources  of 
financing  for  development,  in  order  to  increase  the  resources  available  in  a  sustainable  and 
predictable way. 

4.2. 

Strengthening aid effectiveness 

4.2.1.  Acting together for greater coordination, harmonisation and alignment 

In order to reduce aid transaction costs and to increase the capacities of partner countries, the 
EU will take the measures necessary to honour its international commitments as regards aid 
harmonisation  and  effectiveness,  based  on  ownership,  alignment  of  the  strategies  and 
procedures  of  the  countries  concerned,  decentralised  programme  management,  results-based 
management  and  mutual  responsibility8.  It  will  use  the  progress  indicators  defined  in  this 
context and achieve the targets set out in the Paris Declaration.  

The EU will implement a work plan9 containing specific, measurable actions with a timetable. 
The aims of this plan over the coming years include: 

(i) better division of labour at the level of countries and regions, for greater complementarity 
in particular via the establishment of a common EU programming framework, 

(ii) the development of an EU roadmap in each country, 

(iii) the drawing up of a common financial agreement format encouraging the harmonisation 
of procedures with the partner countries, 

(iv)  ensuring  a  minimum  EU  presence  (Community  or  Member  State)  in  fragile  countries, 
particularly countries in crisis, 

(v) more joint actions and more intensive use of cofinancing making it possible to launch joint 
operations  with  and  between  Member  States,  and  to  capitalise  on  new  Member  States’ 
experience and facilitate the gradual emergence of these countries as new donors.  

These  measures  will  not  be  taken  in  isolation. Europe’s  activities  will be  open  to  the  entire 
development  community,  since  they  form  part of  the  international  movement  which  the  EU 
aims  to  mobilise.  It  will  place  particular  emphasis  on  cooperation  with  other  bilateral 

8 
9 

Rome Declaration of February 2003 and Paris Declaration of March 2005.  
GAER  Council  conclusions  of  22-23.11.2004;  14724/04,  Annex  2,  report  of  the  Working  Party  on 
harmonisation entitled “Advancing coordination, harmonisation and alignment: The contribution of the 
EU”. 

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development  partners  and  multilateral  players  such  as  the  United  Nations  and  international 
financial institutions. 

4.2.2. 

Increasing the quality of aid, including via innovative and flexible mechanisms 

With  a  view  to  strengthening  ownership,  ensuring  the  financing  of  essential  operating 
budgets,  promoting  sound  and  transparent  management  of  public  finances  and  aligning  aid 
with  the  partners’  national  procedures,  general  or  sectoral  budget  support  will  play  an 
increasingly predominant role in the implementation of European aid.  

In the light of the increase in aid budgets and given the need to ensure stable and predictable 
resources, the EU will develop a new, less volatile mechanism, which would enable countries 
that have made sufficient progress in reducing poverty to embark on medium-term measures, 
in  particular  to  cover  the  recurring  costs  connected  with  the  human  resources  necessary  to 
guarantee  access  to  basic  services  and  to  ensure  better  consideration  of  investments  needed 
for a sustainable approach, whose benefits are sometimes apparent only in the long term. 

Debt  reduction  also  represents  a  means  to  finance  state  budgets  in  a  predicable  and 
coordinated  fashion.  The  EU  is  committed  to  finding  solutions  to  the  debt  burden,  in 
particular  for  initiatives  aiming  at  reducing  multilateral  debt,  for  countries  affected  by 
exogenous shocks and for post-conflict countries. 

The untying of aid constitutes another vital aspect of efforts to increase aid effectiveness. The 
EU reaffirms its intention to promote a degree of untying which goes beyond that provided for 
in existing international agreements, in particular as regards food aid, by directing it towards 
local and regional purchases. 

4.3. 

Ensuring policy coherence for development 

The EU has made commitments as regards policy coherence for development. It has identified 
several fields of policies other than development cooperation in which measures will be taken 
to help developing countries to achieve the MDGs10. This constitutes a substantial additional 
EU contribution to the fulfilment of these goals.  

As regards implementation, progress must be made at three levels: (1) at Member State level, 
by  the  reinforcement  of  procedures  and  instruments  relating  to  policy  coherence,  based  on 
best practices developed by certain Member States; (2) at Council level, by the strengthening 
of genuine integration of development issues into the work of the Council’s sectoral groups; 
(3)  at  Commission  level,  including  by  the  reinforcement  of  impact  analyses  from  a 
development perspective. 

* 

* 

* 

10 

Trade,  the  environment,  climate  change,  security,  agriculture,  fisheries,  the  social  dimension  of 
globalisation/employment  and  decent  work,  migrations,  research  and  innovation,  the  information 
society, transport, energy. 

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PART TWO 
GUIDELINES FOR IMPLEMENTATION OF DEVELOPMENT POLICY 
BY THE COMMUNITY 

The  second  part  of  the  Statement  set  out  in  the  annex  provides  guidelines  for  the 
implementation  of  development  policy  at  Community  level.  The  aim  is  to  clarify  the 
Community’s role and to identify priorities which will be reflected in effective and coherent 
development cooperation programmes at the level of countries and regions. 

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ANNEX 

PART TWO 
GUIDELINES FOR IMPLEMENTATION OF DEVELOPMENT POLICY 
BY THE COMMUNITY 

1. 

THE PARTICULAR ROLE OF THE COMMISSION 

As a political institution with responsibilities conferred on it by the Treaty, the Commission 
has a considerably wider remit than any development agency. It is essential for it to have a 
range of policies and instruments that will enable it to respond to a wide variety of situations. 

The Commission has a global presence; it is active in all parts of the world, with a common 
trade  policy,  political  dialogue  and  cooperation  programmes  covering  practically  every 
developing country and region. It receives back-up from an extensive network of delegations. 

It  is  one  of  the  driving  forces  behind  the  agenda  for  harmonisation  and  coordination  with 
other  EU  bodies  and  non-EU  donors;  it  promotes  European  approaches  to  development  in 
international bodies and leads the European debate on development.  

It  also  strives  to  promote  understanding  of  interdependence  and  encourage  North-South 
solidarity on the basis of the values that Europe is built on. To that end, the Commission will 
pay particular attention to raising awareness and educating people about development. 

2. 

A DIFFERENTIATED APPROACH DEPENDING ON CONTEXTS AND NEEDS 

2.1. 

Differentiation in the implementation of development cooperation 

Implementation  of  EC  development  cooperation  is  necessarily  country-  or  region-specific, 
‘tailor-made’ to each partner country or region.  

Differentiation  is  a  necessity,  given  the  diversity  of  partners  and  challenges.  Both  overall 
policy  and  practical  development  cooperation  are  differentiated.  The  EC’s  policy  vis-à-vis 
each country reflects in fact a ‘mix’ of objectives (development, trade and economic, security, 
stabilisation,  environment,  etc.),  based  on  the  countries’  needs,  priorities  and  assets.  It  is 
supported by a mix of modalities (project aid, budget support, humanitarian aid and assistance 
in  crisis  prevention,  support  to  and  via  the  civil  society,  approximation  of  norms,  standards 
and legislation, etc.), unique to each country.  

Distinctions must be drawn between middle-income and low-income partner countries. Low-
income countries (LICs) and least developed countries face enormous challenges on their path 
towards  the  Millennium  Development  Goals.  Support  to  LICs  will  be  based  on  poverty 
reduction  strategies,  paying  due  attention  to  the  availability  of  and  access  to  basic  services, 
economic diversification, food security and improved governance and institutions.  

The picture is further complicated by situations of difficult partnerships and even more so in 
countries in conflict.  

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Support to middle-income  countries remains equally important to attain the MDGs.  A  large 
number  of  the  world’s  poor  live  in  these  countries  and  many  are  confronted  with  striking 
inequalities and weak governance, which threaten the sustainability of their own development 
process. The Community therefore continues to provide assistance with poverty reduction and 
other key  objectives. Many  middle-income countries are  strategic players with an important 
role in global political, security and trade issues, producing global public goods and acting as 
regional anchor countries.  

In addition, the European Neighbourhood Policy aims to build a privileged partnership with 
neighbouring  countries,  bringing  them  closer  to  the  Union  and  offering  them  a  stake  in  the 
EC’s  internal  market  together  with  support  for  dialogue,  reform  and  social  and  economic 
development. 

In difficult partnerships, fragile or failing states the Community’s immediate priorities will be 
to  deliver  basic  services  and  address  particular  needs,  mostly  in  project  mode,  through 
collaboration  with  the  civil  society  and  UN  organisations.  The  long-term  vision  for 
Community engagement is to help partner countries to build legitimate, effective and resilient 
state institutions and an active and organised civil society. To improve its contribution to this 
end the Commission, in cooperation with its international partners, is defining principles for 
international  engagement  in  fragile  states.  These  principles  reflect  lessons  learned  on  aid 
effectiveness  in  these  countries  and  cover  issues  such  as  coherence,  prevention  of  state 
fragility and conflict, harmonisation and alignment with their strategies and procedures. 

Consequently,  the  EC’s  policies,  including  its  development  policy,  have  to  take  account  of 
wider strategic issues in order to fully reflect the range of its objectives. Differentiation, and 
the complexity of the policy mixes, clearly requires a broad range of policy approaches and 
themes within development policy. On the other hand, it is increasingly necessary to ensure 
coherence between policies.  

Country, Regional and Thematic Strategy Papers are the EC programming tools which both 
define  this  targeted  ‘mix’  of  policies  and  instruments  and  ensure  coherence  between  them. 
The new architecture of geographic and emergency  instruments11 for Community assistance 
provides the appropriate framework to respond to the different contexts and conditions. In this 
framework, the thematic programmes are subsidiary, complementary and defined on the basis 
of their distinctive value added vis-à-vis the geographical programmes. 

2.2. 

Transparent criteria for resource allocation 

The  overall  funding  allocation  is  awarded  on  a  geographic  or  thematic  basis.  Within  each 
geographic envelope  resources  are  allocated and their  subsequent use is  reviewed  following 
the principles of needs and country capacity and performance, which may be adapted to take 
into account the specificity of the different programmes. In this context, the challenges posed 
by  sustainable  development  will  also  be  taken  into  account.  The  needs  criteria  include 
population, the extent of poverty and the level of social development, while the performance 
criteria  include  political,  economic  and  social  progress  and  the  absorption  of  aid,  and  in 

11 

The Commission proposal to the Council and the Parliament is based on three geographic regulations : 
for Neighbourhood Policy, Development and Economic Cooperation and Pre-accession to the EU, on 
one hand, and three emergency instruments: for Humanitarian assistance, Stability and Macro-financial 
assistance, on the other hand. 

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particular the way  a  country uses scarce resources for development, beginning with its own 
resources. 

This  approach  favours  development  and  progress  towards  the  MDGs  while  taking  due 
account  of  the  EC’s  political  priorities.  It  is  also  flexible  enough  to  take  account  of  the 
specific  circumstances  of  beneficiary  countries,  such  as  small  islands  or  landlocked  states, 
particularly large and populous countries or disaster-prone countries. 

3. 

PRIORITIES CHOSEN IN CONSULTATION WITH PARTNER COUNTRIES 

3.1. 

The principle of concentration while maintaining flexibility 

The Community will apply the principle of concentration; which is one of the most important 
to  ensure  aid  effectiveness.  It  means  selecting  a  limited  number  of  areas  for  action  when 
Community aid is being programmed, instead of spreading efforts too thinly over too many 
sectors. This selection process will be done at country and regional level in order to honour 
commitments made in regard of partnership, ownership and alignment.  

These  priorities  will  be  identified  through  a  transparent  and  in-depth  dialogue  with  various 
actors on the basis of a joint analysis and in such a way as to ensure complementarity with 
other  donors.  Programming  should  take  account  of the  need  for  sufficient  flexibility  to  also 
enable a rapid response to unforeseen needs.  

The harmonisation agenda means that donors must work together to support partner countries’ 
general  and  sectoral  policies.  The  Community  is  willing  to  play  its  part  in  this  effort. 
MDG-oriented  poverty-reduction  strategies  or  equivalent  national  strategies  must  be  the 
starting point for this kind of work.  

3.2. 

The  Community’s  contribution  to  implementation  of  the  common  thematic 
framework 

On the basis of the common thematic framework for the EU and of a joint analysis of partner 
countries’  needs  and  performance,  the  Commission  will,  in  its  programming  dialogues  with 
them, bear in mind the concepts of differentiation and complementarity and its own capacity 
in order to identify where Community cooperation should be targeted. 

The Commission has considerable experience and plans to increase its capacity in a number 
of areas relating to development cooperation: 

–  Governance and support for economic and institutional reforms 

On  governance,  the  Community  will  give  a  specific  priority  to  human  rights  –  including 
gender  equality  –  and  democratisation,  the  promotion  of  a  high  level  political  commitment 
and  the  support  to  reforms  needed  to  prevent  and  combat  corruption,  the  support  to 
decentralisation and local authorities and to the strengthening of the role of Parliaments.  

Attention  will  also  be  paid  to  improving  environmental  and  social  governance  by 
strengthening the effective participation of institutional actors in charge of these issues in the 
political  decision-making  process  as  well  as  by  reinforcing  the  role  of  non-governmental 
actors.  In  this  context  the  Community  will  follow  up  the  implementation  of  the  EU  Action 
Plan for Forest Law Enforcement, Governance and Trade. 

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The  Community  supports  reforms  through  a  range  of  modalities  according  to  the  specific 
context.  Budget  support  will  be  considered,  where  appropriate,  as  a  particularly  useful  aid 
modality  in  a  strategy  focusing  on  improving  governance,  by  giving  the  Community  an 
important  role  in  improving  public  financial  management  for  the  whole  budget  –  which  is 
essential  for  tackling  inefficiency  and  corruption,  and  for  improvement  in  the  impact  which 
public spending as a whole has on poverty. 

The  Community  will  promote  good  governance  principles  in  relation  to  financial,  tax  and 
judicial  matters,  in  particular  through  better  transparency,  exchange  of  information  and 
cooperation  between  competent  authorities.  This  will  in  turn  facilitate  the  fight  against 
corporate  and  financial  fraud,  money  laundering,  financing  of  terrorism,  tax  fraud  and 
avoidance, corruption and other financial and corporate malpractices.  

The Community will continue to be a key player, alongside the Bretton Woods Institutions in 
supporting  economic  and  institutional  reform,  including  Poverty  Reduction  Strategies,  by 
engaging  in  dialogue  with  countries  on  the  content  of  reforms,  and  providing  financial 
assistance  to  governments  engaged  in  these  programmes.  In  its  dialogue  with  countries,  the 
Community will continue to pay close attention to the impact of reforms, in terms of growth, 
improved business climate, macroeconomic stability and the effects on poverty reduction. By 
putting  results  at  the  centre  of  its  dialogue,  the  Community  will  promote  real  country 
ownership  of  reforms.  Particular  emphasis  will  also  be  placed  on  improvements  in  public 
finance management, as fundamental to combating corruption and promoting efficient public 
spending. With regards to finance for programmes, budget support will be the preferred aid 
modality  where  appropriate.  Interventions  will  respect  the  recommendations  made  in  the 
OECD/DAC Good Practice Guidelines on budget support, in particular in terms of alignment, 
coordination and conditions. Additional support for capacity building could also be provided 
in the form of traditional project aid.  

Finally, the Community will maintain its active involvement in debt issues, by implementing 
its commitments and by participating in the international debate on debt.  

–  Trade and regional integration 

Trade is a key source of economic growth. Market opening and preferential access provides 
developing countries with opportunities for growth, but a lack of supply side capacity often 
hinders  their  ability  to  exploit  this  potential.  The  EC's  objectives  on  trade  and  regional 
integration  are  sustainable  growth  and  the  smooth  and  gradual  integration  into  the  world 
economy.  The  priorities  in  this  area  are  institutional  and  capacity  building  to  design  and 
effectively implement sound trade and integration policies, as well as support for the private 
and  public  sector  to  take  advantage  of  new  trading  opportunities  in  the  regional  and  world 
market and to facilitate adjustment. This includes strengthening of the supply side in terms of 
the legal and regulatory framework for a more favourable investment climate and availability 
of  basic  support  services  (eg  water,  electricity, 
telecommunications,  finance  etc.) 
complementing  what  is  undertaken  in  relation  to  infrastructure  and  transport.  Support  to 
private  sector  will  remain  an  important  area  of  intervention  of  the  Community.  Besides  the 
just mentioned improvement of the investment climate, this will include also the provision of 
capacity  building  and  facilitation  of  access  to  finance,  in  particular  through  the  European 
Investment Bank, for the private sector in developing countries. One increasingly important 
area of Community intervention is microfinance where the focus will be on capacity building. 
The provision of financial services for poor people is an important instrument to help people 
help themselves to get out of poverty.  

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Particular  attention  is  given  to  trade-related  areas  such  as  trade  facilitation,  services, 
compliance  with  sanitary  and  phytosanitary  measures,  technical  and  quality  standards  and 
intellectual property. Another priority is to facilitate the restructuring of the fiscal system to 
replace import duties by more balanced forms of taxation. 

The  specific  operations  will  depend  heavily  on  the  characteristics  of  the  partner  countries. 
Small, landlocked and insular countries and LDCs require special emphasis on the supply side 
and increasing the competitiveness of the private sector. In such countries transitional budget 
support is important to facilitate the fiscal adjustment process and to prevent policy reversal. 

Barriers are often highest between developing countries themselves. Regional integration can 
lower  these  barriers,  increase  market  size  and  therefore  enable  economies  of  scale  in 
production  and  make  markets  more  attractive  to  investment.  A  large  part  of  trade-related 
assistance, especially in the ACP group is carried out in the context of regional programmes 
to  support  the  consolidation  of  economic  integration  and  to  prepare  EPAs.  For  many 
countries, but especially those for which the EU is the largest trading and investment partner, 
approximation of the EU single market regulations is beneficial.  

–  Infrastructure and transport 

The  EC  promotes  a  sustainable  transport  sectoral  approach.  Meeting  stakeholders’  needs, 
ensuring  transport  safety,  affordability,  efficiency  and  minimising  negative  effects  on  the 
environment are key principles of the approach. It applies a strategy for delivering transport 
that  is  economically,  financially  and  institutionally  sustainable.  This  vision  is  shared  by 
developing partners. 

The Commission’s response to the growing demand from African countries for the increase of 
donor funding to infrastructure is a Partnership for Infrastructure. The Partnership will operate 
at  various  levels,  continental,  regional  and  national.  It  will  comprise  an  optimal  mix  of 
“software” (regulatory framework harmonisation, institution development, capacity building) 
and of “hardware” (additional funds for infrastructure investments).  

–  Water and energy 

The Community ‘integrated water resources management’ policy framework aims at ensuring 
a supply of sufficient, good quality drinking water, adequate sanitation and hygiene to every 
human being, especially the poorest, in line with the MDG to halve, by 2015, the proportion 
of people without sustainable access to safe drinking water and to basic sanitation.  

The  EU  Water  Initiative  contributes  to  these  policy  objectives.  Its  key  elements  are  to: 
reinforce political commitment to action and raise the profile of water and sanitation issues in 
the  context  of  poverty  reduction  efforts;  promote  better  water  governance  arrangements; 
encourage regional and sub-regional co-operation on water management issues; and catalyse 
additional funding. The Initiative has a regional focus on Africa; this experience will help to 
build  a  similarly  strong  relationship  with  Eastern  Europe,  the  Caucasus,  Central  Asia,  the 
Mediterranean region and Latin America. 

Large sectors of the population in low income countries have no access to electricity and rely 
on  inefficient  and  costly  household  energy  systems.  EC  policy  therefore  is  focused  on 
supporting  a  sound  institutional  and  financial  environment,  awareness  raising  and  capacity 
building,  in  order  to  improve  access  to  modern  energy  services  through  the  EU  Energy 

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Initiative, and through the Johannesburg Renewable Energy Coalition. Assistance will also be 
provided to build the necessary infrastructure to interconnect countries and regions, in order 
to  achieve  economies  of  scale  and  a  more  efficient  and  sustainable  utilisation  of  resources. 
The EC also supports the development of innovative public-private financing mechanisms. 

In middle income countries EC policy support is mainly focused on the gradual replacement 
of fossil fuel based generation of electricity with environmentally sustainable energy sources 
as well as on the improvement of energy efficiency.  

–  Social cohesion and employment 

The Community promotes an integrated social and economic approach that regards economy, 
employment  and  social  cohesion  as  interdependent  elements  with  a  view  to  fighting 
inequalities.  Priorities will  depend on the needs of the partner countries and regions,  with a 
particular focus on social and fiscal policies to promote equity. Priority actions will include 
support  for  social  security  reforms  (e.g.  extension  of  social  security  to  those  that  are  not 
covered by existing systems, sustained and adequate social protection mechanisms) and fiscal 
reforms aimed at redistribution of income, pro-poor growth and employment. 

Employment  is  a  crucial  factor  to  achieve  a  high  level  of  social  cohesion.  The  Community 
will  promote  investments  that  generate  employment  and  that  support  human  resources 
development.  In  this  respect  the  EC  will  promote  decent  work  for  all  in  line  with  the  ILO 
agenda. Special emphasis will be given to the progressive integration of the informal sector 
into the formal economy, on social dialogue and on corporate social responsibility. 

–  Human and social development 

The Community human and social development policy framework aims at improving peoples’ 
lives in line with the MDGs through action at global and country level. 

The  EC  will  support  interventions  for  health  by  strengthening  health  systems,  with  special 
emphasis on human resources, and by increasingly working through sector wide approaches 
and sector budget support. In this regard the EC will enhance its capacities in policy dialogue 
at country level, or alternatively, share expertise with EU Member states.  

The Community will develop a roadmap for joint EU actions to confront HIV/AIDS, malaria 
and tuberculosis at country and global level based on its policy framework and the European 
Programme  for  Action.  EC  strategies  will  support  prevention,  treatment  and  care,  including 
through  the  Global  Fund  to  Fight  AIDS,  Tuberculosis  and  Malaria.  Actions  will  include 
measures  to  support  orphans  and  vulnerable  children,  address  the  gender  dimension  of  the 
three diseases and overcome stigma and discrimination. Links and synergies with strategies to 
promote  sexual  and  reproductive  health  and  rights  will  be  fully  explored.  The  Community 
will  also  propose  joint  approaches  to  the  Member  States  and  NEPAD  to  address  the 
exceptional human resource crisis of health providers. 

The EC priorities in education are quality primary education and vocational training. Efforts 
will be made to address major inequalities. Particular attention will be devoted to promoting 
girls'  education  and  safety  at  school.  The  development  of  sector  plans,  the  financing  of 
recurrent costs and the participation in regional and global thematic initiatives on education 
will be envisaged if and where they bring added value to education outcomes, standard setting 
or monitoring efforts.  

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The  EC’s  social  development  policy  framework  promotes  the  protection  of  people,  women 
and  children  in  particular,  from  human  trafficking,  the  worst  forms  of  child  labour  and 
discrimination, notably as regards gender and disability.  

The bulk of financial support will go to the poorest countries. In fragile states the Community 
will work with NGOs and UN organisations to deliver basic services  and address particular 
needs, mostly in project mode. 

In addition to the work at country level, the Community has a capacity at the global level by 
ensuring  a  strong  European  voice  on  a  number  of  key  issues,  in  particular  women’s  rights, 
sexual  and  reproductive  health  and  rights, 
the  promotion  of  affordable  and  safe 
pharmaceutical products. 

–  Rural development, territorial planning, agriculture and food security 

Not  enough  attention  has  been  paid  to  rural  development  and  agriculture  in  recent  years 
despite  their  importance  for  growth  and  poverty  reduction.  To  relaunch  investment  in  these 
sectors,  the  Community  will  support  the  implementation  of  territorial,  planning-oriented 
multi-sector  approaches,  aimed  primarily  at  strengthening  local  powers  and  promoting 
involvement in the identification of investment priorities and resource management in order to 
support the emergence of local-development clusters.  

The  Community  will  continue  to  provide  the  driving  force  behind  moves  to  improve  food 
security  at  international,  regional  and  national  level.  It  will  support  strategic  approaches  in 
countries  affected  by  chronic  vulnerability  of  food  supplies.  Activities  will  range  from 
preventive  measures,  including  early-warning  systems,  the  development  of  safety  nets, 
improving  access  to  resources,  the  quality  of  nutrition  and  capacity  development  for  the 
drawing  up  of  strategies.  Particular  attention  will  be  paid  to  transition  situations  and  to 
ensuring that emergency development aid gets through.  

In  relation  to  agriculture,  the  Community  will  focus  on  access  to  resources  (land,  water, 
finance) and new opportunities (markets and technology), particularly for women. Bearing in 
mind  the  limitations  on  what  is  possible  and  the  level  of  development  of  the  countries  in 
question, the Community may give priority to sustainable intensification of production (in the 
case  of  low-income  countries),  or  competitiveness  on  international  markets  and  risk 
management  (in  countries  dependent  on  commodities).  Particular  attention  will  be  given  to 
mechanisms  for  responding  to  crises.  In  transition  situations,  the  focus  will  be  on  restoring 
productive  systems.  To  ensure  that  developing  countries  benefit  from  technological 
development, the Community will increase its support for global agricultural research. 

–  The environment and sustainable management of natural resources 

The Community will support the efforts undertaken by its partner countries (Governments and 
civil society) and help increase their capacity to incorporate environmental considerations into 
development, including implementation of multilateral environmental agreements12.   

It  will  strengthen  its  initiatives  to  ensure  that  natural  resources  are  properly  preserved  and 
sustainably managed, as a source of income amongst other things (e.g. forests, fisheries etc.) 
To this end it will support national and regional strategies; it will also take part in/contribute 

12 

Climate, biodiversity, desertification, waste and chemicals 

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to European or global initiatives and organisations. There will also be increased funding for 
development-related research in the 7th Framework Programme. 

that  forest  provide, 

Particular attention will be given to ensuring the sustainable management of forest resources, 
so  as  to  safeguard  and  develop  the  jobs,  rural  livelihoods  and  environmental  goods  and 
services 
through  promoting  community-based  forest 
management,  and  improved  governance  of  forest  resources.  Sustainable  management  of 
biodiversity, including protected areas systems, equitable sharing of its benefits and domestic 
bio-safety  framework  issues  will  be  addressed  through  a  stronger  support  to  UNCBD13 
implementation. 

including 

With regard to climate change, the Community will focus its efforts on the implementation of 
the  EU  Action  Plan  on  Climate  Change  and  Development.  This  will  be  done  in  close 
collaboration  with  the  Member  States.  Adaptation  to  the  negative  effects  of  climate  change 
will be central in the EC’s support to least developed countries and small island development 
states. As far  as desertification  control and sustainable  land  management  are  concerned,  the 
Community  will  focus  on  the  implementation  of  the  UNCCD14  through  effective 
mainstreaming of sustainable land management issues in  developing  countries’ strategies. It 
will also seek to promote the sustainable management of chemicals and waste, particularly by 
taking into account their links with health. 

–  Prevention of conflicts and of state fragility 

The EC is committed to preventing the emergence of difficult partnerships and state fragility. 
It  supports  governance  reform  as  well  as  a  comprehensive  prevention  approach.  It  fosters  a 
culture  of  long-term  prevention  of,  rather  then  reaction  to,  state  fragility,  conflict,  natural 
disasters and other types of crises. 

The Community will maintain its support to conflict prevention and resolution and to peace 
building  by  addressing  the  root-causes  of  violent  conflict,  including  poverty,  degradation, 
exploitation  and  unequal  distribution  and  access  to  land  and  natural  resources,  weak 
governance,  human  rights  abuses  and  gender  inequality.  It  will  also  promote  dialogue, 
participation and reconciliation with a view to promoting peace and preventing outbreaks of 
violence. 

The  Community  will  step  up  its  assistance  to  support  partner  countries'  and  regional 
organizations'  efforts  to  strengthen  early  warning  systems  and  governance/institutional 
capacity building, to enable them to engage effectively in a prevention approach. The EC will 
also  improve  its  ability  to  recognize  early  signs  of  state  fragility  through  improved  joint 
analysis,  joint  monitoring  and  assessments  of  difficult,  fragile  and  failing  states  with  other 
donors. 

* 

* 

* 

13 
14 

United Nations Convention on Biological Diversity.  
United Nations Convention to Combat Desertification. 

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Furthermore, as part of an innovatory policy, the Commission is developing new approaches 
in  areas  such  as  migration  and  development,  security  and  development  and  networks  and 
interconnections. 

It  is  also  recognised  as  having  valuable  experience  regarding  the  types  of  aid,  in  particular 
general  budget  support  and  sectoral  aid  that  require  in-depth  dialogue  within  individual 
sectors  but  also  on  the  way  public  finances  are  managed,  transparency,  accountability  and 
corruption. 

In addition to these skills, the Commission will deploy all the technical expertise it possesses 
in various areas: not just those relating specifically to external action but any policy area in 
which  it  has  valuable  experience  to  share,  such  as  internal  markets,  trade,  taxation, 
competition,  fisheries,  environment,  cohesion,  employment  and  social  protection,  research, 
education and culture.  

This  is  what  the  Commission  proposes  to  bring  to  a  division  of  labour  based  on  the 
comparative advantages of each player in order to make aid more effective. 

3.3. 

A strengthened approach to mainstreaming 

Some  issues  require  more  than  just  specific  measures  and  policies;  they  also  require  a 
mainstreaming approach because they touch on general principles applicable to all initiatives 
and demand a multisectoral response.  

This  is  true,  for  example,  of  gender  equality,  human  rights  in  general  and  the  rights  of 
children  and  indigenous  peoples  in  particular,  environmental  issues  and  capacity  building, 
including increased use of information and communication technologies. 

The  Commission  will  relaunch  this  approach,  making  systematic  and  strategic  use  of  all 
resources at its disposal15. For instance it will intensify the dialogue with its partners and set 
up  networks  of  expertise  and  technical  support,  pooling  the  Member  States’  resources  with 
those of partner countries. 

3.4. 

Support for global initiatives and funds 

Global initiatives and funds are powerful instruments for launching new political measures or 
reinforcing  existing  ones  where  their  scope  is  insufficient.  They  are  capable  of  attracting 
public  attention  and  generating  public  enthusiasm  more  effectively  than  traditional  aid 
institutions.  

However, this kind of aid should not be allowed to undermine the dialogue with countries, the 
process of aligning aid on their strategies or the integration of funds into the budget cycle. 

The  added  value  of  global  initiatives  and  funds  will  have  to  be  assessed  on  a  case-by-case 
basis. The Commission will draw up criteria for Community participation in global funds and 
contributions to them. It will give priority to initiatives that will help achieve the MDGs and 
increase the availability of global public goods.  

15 

Strategic  environmental  assessments  and  gender-equality  impact  assessments  will  be  carried  out  on  a 
systematic basis, including in relation to budget (“greening the budget”) and sectoral aid. 

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With  regard  to  initiatives  involving  measures  in  the  developing  countries,  participation  will 
depend on the possibility of integrating those measures into national or regional development 
policies and coordinating with donor programmes. 

Decisions on participation will also take account of how long the funds are scheduled to run 
for and whether or not there is an exit strategy. 

4. 

A RANGE OF MODALITIES BASED ON NEEDS AND PERFORMANCE 

The  Community  has  a  wide  range  of  modalities  for  implementing  development  aid  which 
enable  it  to  respond  to  different  needs  in  different  contexts.  This  wide  ranging  “offer”, 
henceforth  available  to  all  geographical  and  thematic  programmes  when  proposed  by  the 
Commission, reflects a genuine Community added value.  

Budget support in the form of support for general or sectoral development policies will take 
on  increasing  importance.  It  will  enable  recipient  countries  to  cope  with  growing  operating 
budgets, promote harmonisation and alignment on national policies; transaction costs are low 
and  it  encourages  results-based  approaches.  Support  for  sector  and  governance-related 
reforms  may  also  be  given  through  other  forms  of  intervention  in  cooperation  with  other 
donors. 

In  the  best-performing  countries,  steadier, medium-term support  will be  introduced to  boost 
their capacity to attain MDGs.  

The  Community  will  move  towards  an  approach  based  on  results  and  progress  indicators. 
Increasingly,  conditionality  is  evolving  towards  the  concept  of  a  “contract”  based  on 
negotiated mutual commitments formulated in terms of results. 

Project-based aid will be useful in difficult situations or situations in which budget support is 
not well placed, as well as in support of civil society. 

Debt  reduction,  which  is  comparable  to  indirect  budget  support,  with  low  transaction  costs 
and  a  tendency  to  promote  coordination  and  harmonisation  between  donors,  could  help 
countries to reduce their vulnerability to external shocks.  

The majority of Community aid will continue to be provided in the form of grants, which is 
particularly suitable for the poorest countries and for those with a limited ability to repay.  

However,  the  European  Investment  Bank  is  playing  an  increasingly  important  role  in  the 
implementation  of  Community  aid,  through  investments  in  private  and  public  enterprises  in 
developing countries. The EIB has been given a number of external mandates in recent years. 
Its increasing involvement calls for some thought on how poverty reduction and sustainable 
development can best be taken into account when it comes to fulfilling these mandates. 

The  Community  will  also  cooperate  with  relevant  international  organisations  and  agencies 
where such cooperation provides added value.  

Decisions  on  what  modalities  of  Community  aid  are  the  most  appropriate  for  each  country 
will  be  made  at  the  programming  stage,  which  must  be  increasingly  coordinated  with  the 
process of formulating sectoral policies and implementing national budgets. 

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