Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions - The EU - a global partner for development - Speeding up progress towards the millennium development goals {SEC(2008) 431} {SEC(2008) 432} {SEC(2008) 433} {SEC(2008) 434} {SEC(2008) 435}
Date: 2008-04-09
Institutions: European Commission
Subjects: EU aid, EU financial instrument, aid policy, cooperation policy, developing countries, development aid, sustainable development

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 9.4.2008 
COM(2008) 177 final 

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

The EU - a global partner for development 
Speeding up progress towards the Millennium Development Goals 

{SEC(2008) 431} 
{SEC(2008) 432} 
{SEC(2008) 433} 
{SEC(2008) 434} 
{SEC(2008) 435} 

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TABLE OF CONTENTS 

Executive summary .................................................................................................................... 3 

1. 

2. 

3. 

4. 

5. 

6. 

2008 – a crucial year for development......................................................................... 4 

European aid of €46 billion in 2007 – will we be able to keep our promises? ............ 6 

More effective aid calls for more radical changes ....................................................... 8 

A European pole of policy coherence for development............................................... 9 

Aid for trade to further the MDGs ............................................................................. 11 

Conclusions – a fresh impetus is needed.................................................................... 12 

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Executive summary 

Since 2005 the Member States and the European Commission have shared a common vision 
of  development  enshrined  in  the  European  Consensus  on  Development.  The  principles  and 
objectives adopted by the EU provide a framework for development aid efforts that focus on 
supporting  the  developing  countries  in  their  poverty-reduction  strategies,  in  particular  by 
promoting access to primary education for girls and boys, building up health systems in the 
poorest  countries,  providing  access  to  drinking  water  for  disadvantaged  sections  of  the 
population,  not  forgetting  support  for  capacity-building  programmes  and  initiatives  for 
democracy and good governance.  

The  Monterrey  Conference  on  Financing  for  Development  in  2002.  the  review  of  progress 
towards the Millennium Development Goals and the adoption of the European Consensus in 
2005  saw  the  EU  make  a  series  of  undertakings  concerning  the  volume  of  aid,  its 
effectiveness,  policy  coherence  for  development  and  aid  for  trade.  The  Commission  is 
responsible for monitoring these undertakings within the Union, and this communication, and 
the working papers which accompany it, have been drawn up in fulfilment of this obligation.  

The  aim  here  is  to  make  a  contribution  to  the formulation of a European  common position, 
with an eye to the Accra and Doha meetings1 and the high-level UN event in September 2008 
in particular, and so confirm the EU's key role on the international scene and its commitment 
to the MDGs. 

Although  the  EU  remains  the  leading  donor  and  the  developing  countries'  most  important 
partner, providing aid to the tune of €93 per European per year, the amount of financial aid 
fell in 2007. 

Member States are invited to confirm their political commitments and their financial targets 
for 2010 and 2015. They need to fulfil their commitments concerning the predictability of aid, 
notably by drawing up reliable provisional multiannual timetables of their financial flows. 

Aid  for  trade:  Member  States  should  sustain  their  efforts  and  collectively  increase  their 
technical assistance in order to achieve the targets for 2010. 

Lastly, Member States are invited to step up efforts to find innovative sources of financing for 
appropriate measures to deal with the effects of climate change.  

Because the EU recognises that development depends on both the volume and the quality of 
aid, steps were taken to make aid more effective, in particular with the adoption of political 
and  technical  frameworks  in  2007  (i.e.  the  Code  of  Conduct  on  the  division  of  labour, 
Commission-Member  State  cofinancing,  and  predictability  of  payments).  They  were, 
however, too tentative to make much difference. 

The Commission now proposes that active efforts be made to implement these principles on 
the basis of specific proposals it has put forward. The EU must adopt an ambitious position at 
Accra in favour of a real division of labour, more budgetary aid, and an inclusive approach 
that promotes gender equality and involves civil society and local government, both in Europe 

1 

Third  High-Level  Forum  on  Aid  Effectiveness,  Accra,  2-4  September  2008;  Follow-up  International 
Conference on Financing for Development, 29 November-2 December 2008. 

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and in the developing countries. The efforts already under way to ensure the complementarity 
and quality of European aid given in support for trade must also be stepped up in future. The 
Commission invites the Member States to make a major effort to forecast their aid for trade, 
in particular that to the ACP countries, and to join it in drawing up, by the end of the year, 
"European aid-for-trade packages" and in setting up regional funds to support the EPAs and 
regional integration processes where the ACP regions concerned so desire. 

The  EU  is  at  the  forefront  of  policy  coherence  and  is  focusing  particular  concern  on  the 
effects  of  European  policies  in  12  key  areas  (for  example,  trade,  agriculture,  fisheries,  the 
environment  and  security)  on  the  developing  countries  and  the  MDGs.  Three  policy  areas 
with  great  development  potential  (climate  and  energy  policies,  migration  and  research)  are 
analysed and specific proposals designed to strengthen synergies with the EU's development 
objectives are put forward. 

The year 2008 should mark a turning point in the EU's development efforts. The EU can and 
must make a difference. It must give a clear political signal and live up to the expectations of 
partner countries. 

At the June European Council the Member States are invited to adopt an ambitious political 
position. 

Now, more than ever before, Europe must mobilise and harness its forces to make a radical 
improvement in the living conditions of whole swathes of people in the developing world.  

1. 

2008 – A CRUCIAL YEAR FOR DEVELOPMENT 

The year 2008 will be a crucial one for development. Several high-level events will make the 
Millennium Development Goals (MDGs) a political priority. The Accra Forum2 will look at 
implementation  of  the  2005  Paris  Declaration  on  aid  effectiveness.  The  Doha  Conference3 
will  take  stock  of  undertakings  made  at  the  Monterrey  Conference  on  Financing  for 
Development  in  2002.  The  high-level  UN  event  on  25  September  should  boost  the 
international community's resolve to achieve the 2015 targets. 

This  year  will  also  be  crucial  for  Europe's  credibility.  Historic  undertakings  were  made  in 
2005 concerning the volume and quality of aid. These undertakings must be met. At stake is 
the EU's individual and collective responsibility in the fight against poverty. 

Since the adoption in 2005 of the European Consensus on Development4, which focused on 
the  MDGs  and  poverty  eradication  in  the  context  of  sustainable  development,  the  EU  has 
taken  important  initiatives  to  advance  the  development  agenda.  In  December  2007  the 
European Council asked the Commission to draw up a report on the EU's contribution to the 
MDGs5. This communication and the working papers accompanying it are the response to that 
invitation.  They  take  stock  of  the  situation  and  identify  the  changes  needed  to  speed  up 
progress towards achieving the MDGs. 

2
3 

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5 

Third High-Level Forum on Aid Effectiveness, Accra, 2-4 September 2008. 
Follow-up International Conference on Financing for Development to be held from 29 November to 2 
December 2008. 
OJ C 46, 24.2.2006, p. 1. 
European Council of 14 December 2007, point 77 of the conclusions. 

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The  international  community  has  pledged  to  take  a  number  of  measures:  the  developed 
countries,  to  increase  their  aid  and  its  effectiveness;  the  developing  countries,  to  implement 
MDG-focused  policies  and  to  coordinate  external  aid  more  effectively.  While  the  partner 
countries  have  a  crucial  role  to  play,  hopes  of  achieving  the  MDGs  depend  largely  on  the 
volume of aid and, just as importantly, its effectiveness. 

Significant  progress  has  been  made  in  some  countries  and  regions,  but  a  halving  of  world 
poverty  is  still  a  long  way  off:  11  million  children  still  die  every  year  of  curable  diseases, 
most of them under 5; one person in four does not yet have access to clean drinking water; 
114  million  children  do  not  yet  have  access  to  primary  education;  584  million  women  are 
illiterate.  Sub-Saharan  Africa  is  lagging  well  behind.  Elsewhere,  in  South  Asia  especially, 
many groups are excluded from the benefits of growth. 

New initiatives have been taken, in particular that of the UN Secretary-General for the MDGs 
in  Africa6  and  the  "Call  to  Action"  on  MDGs7.  The  EU-Africa  Partnership  on  the  MDGs, 
adopted at the Lisbon Summit8, will also provide a new framework for dialogue and action.  

The EU has acted as lead donor, and continues to do so, not only because 90% of the pledged 
aid increase will come from European countries, but also because the EU undertook to carry 
out a root and branch reform of its system of Community and bilateral aid. In addition to aid, 
the  EU  has  decided  to  ensure  that  its  policies  are  consistent  with  development  objectives. 
European  policies  in  fields  as  diverse  as  trade,  security,  migration  and  the  environment  are 
now  analysed  to  see  what  impact  they  will  have  on  development  and  how  they  can  make  a 
positive contribution to the MDGs. 

The MDGs call for a sustained, long-term effort. The EU has to arrive at the Accra and Doha 
conferences  with  high  ambitions.  It  also  has  to  mobilise  the  support  of  the  international 
community for the G8 Summit and the high-level UN event in September. It will be both a 
test of the international community's and EU's credibility and an opportunity to take stock of 
what remains to be done by 2015.  

New  global  challenges,  in  particular  climate  change,  pose  a  major  additional  threat  to 
sustainable development. European public opinion is increasingly aware that, as globalisation 
accelerates, the EU cannot achieve its internal objectives unless it is united and consistent in 
the way it acts on the international scene.  

Europe already has the tools and the policies. It now has to move from words to action.  

The year 2008 should mark a turning point in the EU's development efforts. Now, more than 
ever  before,  the  EU  has  to  harness  its  forces  if  it  is  to  radically  improve  the  chances  of 
achieving the MDGs by taking action on the volume of aid and its effectiveness, and ensuring 
development  policies  are  consistent.  Europe  must  create  a  dynamic  that  will  galvanise 
international efforts to take specific measures. 

6 
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MDG Africa Steering Group. 
Launched in July 2007. 
December 2007. 

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2. 

EUROPEAN  AID  OF  €46  BILLION  IN  2007  –  WILL  WE  BE  ABLE  TO  KEEP  OUR 
PROMISES? 

A fresh impetus for European aid  

For the second year in a row there has been a net drop in the volume of development aid from 
the  international  community.  Despite  the  political  rallying  call  around  the  MDGs,  the 
international donor community clearly has difficulty in meeting its commitments.  

And, for the first time, the EU is part of this negative trend. While some Member States have 
maintained  or  improved  on  their  good  record  in  2006,  the  overall  trend  is  downwards. 
Expressed in euro and as a percentage of gross national income, European aid stood at 0.38% 
in 2007 compared with 0.41% in 2006. Despite this, Europe remains the largest aid donor in 
the world, in Africa in particular, and the engine of increased aid.  

Europe wants and has to play a leading role in rallying the international community's efforts, 
especially  at  the  Doha  conference  in  December.  To  do  this,  Europe  must  reconfirm  its 
intention of achieving its collective target of 0.56% in 2010, on the road to the 2015 target of 
0.7%.  We  do  not  need  new  promises,  but  should  translate  existing  commitments  into 
ambitious  deliverables.  Such  an  agenda  action  could  re-affirm  EU's  aid  commitments  and 
agree broad milestones and related actions on achieving the MDGs in the areas of education, 
health,  environment,  water,  agriculture,  growth  and  infrastructure.  This  will  take  renewed 
political  determination  on  the  part  of  all  the  Member  States  and  awareness  that,  today, 
development is the best long-term answer to the challenges of globalisation, whether they be 
migration,  security,  the  financial  and  taxation  systems,  protection  of  the  planet's  natural 
resources, food security or international stability. 

We must be serious about the predictability of aid  

In  keeping  with  our  political  pledges,  it  is  imperative  to  offer  partner  countries  the 
predictability  they  need  to  plan  their  strategies,  their  priorities  and  the  measures  they  take. 
Less  volatile,  more  predictable  aid  is  also  needed  for  macroeconomic  stability.  The 
predictability  of  aid  is  measured  in  several  ways:  aid  flows,  multiannual  programmes  and 
payments.  

For each the Commission has made proposals:  

–  Predictability  of  aid  flows:  the  Commission  insists  on  the  pressing  need  for 
multiannual  and  ambitious  but  realistic  timetables  so  that  the  gradual  rise  in  aid 
budgets  between  now  and  2010  and  2015  can  be  measured  for  each  Member 
State. The 2007 performance should be seen in this perspective. 

–  Programming of aid: an increasing number of Member States now adopt strategy 
papers that give the partner country an indication of the resources available in the 
medium  term.  This  is  welcome.  But  the  willingness  to  draw  up  such  strategy 
papers in a framework of joint programming is much less in evidence. While joint 
analyses have been carried out in a number of countries, a genuine joint response 
strategy has been mounted only in South Africa, Sierra Leone and Somalia. Work 
is under way in Ghana and Mali. In total 13 Member States are currently taking 
part in joint programming efforts. The mid-term review of country strategy papers 
in 2009 and 2010 will offer fresh opportunities to do this.  

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–  The predictability of disbursements is central to the Accra agenda and the Ban Ki-
moon initiative. To this end, and in response to the invitations of the Council and 
the Member States, the Commission has proposed the MDG contract, under which 
the  best-performing  countries  will  receive  a  minimum  annual  amount  of 
budgetary  aid  over  a  six-year  period.  The  Member  States  have  committed 
themselves to such action9. The MDG contract proposal is the only one which is 
consonant with these decisions. 

The need for fair burden-sharing 

The EU and its partners need to have a serious debate about how to share this burden at 
international level. The EU is by far the most generous aid donor, particularly if we take into 
account the Gleneagles G8 commitments, and could thus shoulder 90% of the aid increase in 
the  period  2007-2010.  The  EU  must  use  all  its  political  weight  to  convince  traditional 
partners,  the  United  States  and  Japan  in  particular,  and  emerging  countries  (such  as  China, 
India, South Korea and Brazil), which will be called on to play a bigger role, to sign up to a 
fair distribution of the development effort. 

Meeting the major challenge of climate change 

The world is up against an alarming paradox: the poorest, most vulnerable countries are not 
responsible  for  the  devastating  effects  of  climate  change,  but  are  among  the  worst  affected. 
Climate  is  oblivious  to  borders,  continents  or  North-South  divides10.  The  international 
community  has  a  special  responsibility  to  help  these  countries  move  towards  economic 
growth  that  produces  fewer  greenhouse  gas  emissions  and  adapt  to  climate  change,  in  line 
with the agreement reached in Bali to launch negotiations aimed at getting a global agreement 
on climate change by 2009.  

This is one of the objectives the EU set itself when it accepted the Commission's proposal to 
build a Global Climate Change Alliance and in undertaking bilateral and regional initiatives 
with  Latin  America  and  Asia.  We  have  to  organise  and  act.  In  this  connection  the 
Commission  welcomes  the  work  of  the  International  Commission  on  Climate  Change  and 
Development set up by the Swedish government, the findings of which we can share in the 
EU framework. 

The  Commission  is  convinced  that  climate  policies  in  partner  countries  cannot  be  financed 
only  with  official  development  assistance  and,  in  consultation  with  the  World  Bank,  is 
studying  the  idea  of  a  world  loan  drawing  on  the  resources  raised  by  auctioning  emission 
rights on a future carbon market. A lot is at stake. The only solution is to act collectively. 

In  this  context,  the  Commission  reiterates  the  importance  it  attaches  to  integrating  climate 
change  into  cooperation  strategies  and  into  the  coordination  of  the  EU's  aid  instruments  for 
disaster prevention, in accordance with the commitments made in the European Consensus on 
Development and the European Consensus on Humanitarian Aid11. 

9 
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11 

GAERC conclusions of 24 May 2005 and point 27 of the European Consensus. 
See in particular the 2007-2008 UNDP report “Fighting climate change: Human solidarity in a divided 
world”. 
OJ C 25, 30.1.2008, p. 1. 

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Member States are invited to confirm their political commitments and their financial targets 
for  2010  and  2015.  Member  States  are  also  invited  to  put  into  practice  their  commitments 
regarding  the  predictability  of  aid  in  the  three  ways  proposed  by  the  Commission  by 
developing  inter  alia  multiannual  timetables  setting  out  the  increase  in  official  development 
assistance. They are further invited to step up efforts to find innovative sources of financing to 
deal with the effects of climate change.  

3. 

MORE EFFECTIVE AID CALLS FOR MORE RADICAL CHANGES 

Any increase in resources has to be backed up by more effective implementation. If doubling 
aid  for  Africa  led  to  a  doubling  of  the  number  of  projects,  the  situation  would  become 
unsustainable. Every year Tanzania has to produce 2400 reports for aid donors. In Mali more 
than 26 donors are active in the rural development sector alone. 

The  international  aid  system  is  becoming  ever  more  complex  with  the  creation  of  vertical 
structures,  such  as  global  funds  and  programmes,  and  the  arrival  of  new  public  and  private 
actors, which often work outside existing codes and coordination mechanisms.  

This is why we need better organised aid that is aligned on the partner countries. This is not 
just a question of procedures, we are talking about a qualitative leap forward, a genuine sea 
change.  

The EU, which played a crucial role in the adoption of the Paris Declaration in 2005 and at 
the  UN  Summit,  has  a  special  responsibility  today.  It  must  remain  the  driving  force  of  this 
global  process.  Three  years  later,  however,  despite  some  real  achievements,  the  "critical 
mass" for success has not been reached; not everyone has got to grips with the new tools yet.  

The Accra event will be decisive. Our objectives are twofold. We have to take stock of what 
has  been  achieved,  the  difficulties  encountered  and  their  causes,  and  also  the  successes  and 
the  positive  experiences.  We  will  do  this  taking  as  benchmarks  the  indicators  of  the  Paris 
Declaration and the additional commitments entered into by the EU. But Accra has to be more 
than  a  simple  stocktaking  exercise.  The  ministerial  statement  ("Accra  Agenda  for  Action") 
must be ambitious and visionary. 

We must move from concepts and political pledges to tangible achievements. To do this four 
issues call for bold solutions: 

•  The division of labour has to be put into practice. The Code of Conduct adopted in May 
2007, implementation of which is still at the embryonic stage, has to be implemented more 
proactively;  all  the  actors,  including  EU  operators  on  the  ground,  have  to  shoulder 
responsibility  for  doing  this.  The  Commission  will  make  specific  proposals  for  each 
country. 

•  Donors should use country systems, as the Commission did by increasing the proportion of 

budgetary aid overall and by sector12.  

•  Management by results makes us reassess how our conditions are conceived and applied. 

12 

44 % for ACP countries under the 10th EDF. 

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•  There has to be predictability in flows, in programming and in disbursements. 

In addition: 

•  One  of  the  tools  for  making  aid  more  effective  and  providing  clear  information  about 
what  donors  have  done  and  achieved  on  the  ground  are  the  atlases  compiled  by  the 
Commission since 2005. In 2008 the Commission will unveil a new EU Donor Atlas, an 
atlas of situations of fragility, and several regional atlases. Thematic or subregional atlases 
will  be  produced  regularly  (half-yearly,  for  example)  as  a  basis  for  discussion  and 
decisions at EU level on the division of the labour. 

•  Cofinancing must be stepped up. Community cofinancing has met with less success than 
bilateral cofinancing, but should pick up following changes to the legal framework. Here 
we  know  what  the  obstacles  are,  and  the  solutions.  We  just  need  to  implement  them 
without delay. 

The EU has now added 12 Member States which were not fully involved in the drafting of the 
Paris Declaration; they can make a crucial contribution by drawing on their own experience of 
transition  and  receipt  of  official  assistance13.  They  can  help  the  EU  to  make  a  difference  at 
Accra. 

Civil  society  organisations  (CSOs)  were  the  "missing  link"  of  the  Paris  Declaration.  Their 
strength lies in the diversity of the roles they  play. Civil society is a fully-fledged player in 
development. It has to be included in the process, and supported in its efforts to define its own 
principles of aid effectiveness. 

The  same  applies  to  local  authorities,  which  are  increasingly  vocal  in  their  wish  to  become 
stakeholders and actors in development. This is another new dimension of development policy 
that  we  must  explore.  Here  the  experience  gained  with  the  European  regional  development 
policy in strengthening the regional and local dimensions of economic development could be 
a source of inspiration for the developing countries. 

The Commission believes that the aid effectiveness agenda must also incorporate the issues of 
conflict prevention and fragility.  

Equality between women and men must also be on the agenda as a fundamental human right 
and as a strategy for achieving the MDGs.  

The Council is invited to adopt an ambitious EU position at Accra in favour of a real division 
of  labour,  more  budgetary  aid,  more  predictability  and  an  inclusive  approach  that  involves 
civil society, local government and gender equality. The EU can and must make a difference. 
It must give a clear political signal and live up to the expectations of partner countries.  

4. 

A EUROPEAN POLE OF POLICY COHERENCE FOR DEVELOPMENT 

Aid  is  essential,  but  not  enough.  The  principle  of  policy  coherence  adopted  by  the  EU  is 
prompted  by  effectiveness,  but  it  is  also  a  moral  principle.  The  impact  of  the  poverty-
eradication  policies  conducted  by  Europe  in  the  interest  of  the  very  poor  must  not  be 

13 

All supported the 2005 European Consensus and four have signed the Paris Declaration. 

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undermined by other European policies. Underlying each European policy decision should be 
consideration of its effect on the Millennium Development Goals. 

The EU has committed itself to improving coherence in twelve areas liable to impact on the 
MDGs.  This  will  entail  preventive  measures  in  the  form  of  impact  assessment,  appropriate 
reforms, such as those of the agricultural policy and fisheries, and efforts to find synergies to 
enable the poorest countries to profit from the opportunities offered by European policies14.  

This "policy coherence" approach gives the EU's contribution to MDGs added leverage.  

The EU will step up its efforts to achieve MDG coherence in all areas identified in 2005. The 
Commission has also explored the potential room for manoeuvre in three specific areas:  

–  Policies  on  renewable  energy,  in  particular  biofuels,  in  the  framework  of  climate  and 
energy  policies.  The  EU  has  to  help  the  developing  countries  take  advantage  of  the 
opportunities  offered  by  the  biofuel  market  to  combat  poverty,  while  closely  monitoring 
the impact that this policy may have, on food production, use of land, and the environment 
in  particular.  This  will  entail  regular  monitoring  that  fully  embraces  the  development 
dimension,  adherence  to  sustainability  criteria,  promotion  of  trade  in  biofuels,  especially 
with the poorest countries, research and technology transfers; 

–  Migration  policy  and  the  problem  of  the  brain  drain,  an  especially  important  issue  in 
sectors  like  health,  education,  and  research  and  innovation.  The  Commission  proposes 
"export  training"  programmes,  improved  rights  -  in  particular  social  rights  -  for  workers 
returning to their countries of origin, and employment agreements between Member States 
and  developing  countries  that  make  it  possible  to  manage  recruitment  while  protecting 
vulnerable  sectors.  It  would  be  opportune  to  explore  various  citizenship  arrangements  to 
strengthen migrants' links with their host countries and their countries of origin;  

–  Research  policies.  The  Commission  will  propose  to  the  Council  a  common  research 
strategy for development in order to coordinate better European efforts in this field. As a 
first  step  in  this  strategy,  the  Commission  has  undertaken  under  the  7th  Framework 
Programme to encourage greater participation by research centres from poor countries and 
to increase research activities in fields that can make a particularly useful contribution to 
the  MDGs  (in  particular  agronomic  research,  health,  including  research  into  neglected 
poverty-related  diseases,  public  health  systems  and  reproductive  health,  migration, 
renewable  energy,  water  and  sustainable  development).  These  initiatives  must  be  backed 
up by targeted aid measures to increase research capacity where necessary. 

The Council is invited to promote the principles of policy coherence for development in the 
framework  of  the  international  agenda  for  the  MDGs  and  aid  effectiveness.  The  Council  is 
also invited to take a decision on the policy guidelines designed to  exploit the development 
potential of biofuels, migration and research. 

14 

EU report on policy coherence for development, 20.9.2007 - COM(2007) 545 and SEC(2007) 1202. 

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5. 

AID FOR TRADE TO FURTHER THE MDGS 

The EU is the first partner among the developed countries to have adopted a strategy of aid 
for  trade15.  It  is  a  major  step  forward  which  should  enable  the  EU  to  achieve  its  planned 
financing targets and put into practice the principles of aid effectiveness in this area.  

The EU has collectively pledged to devote €2 billion a year between now and 2010 (€1 billion 
from  the  Community  and  €1  billion  from  the  Member  States)  for  trade-related  technical 
assistance  and  to  increase  its  aid  in  the  other areas  (production  capacity  and  infrastructure). 
Priority is given to the ACP States because of their special situation and the challenges posed 
by the Economic Partnership Agreements currently being negotiated with the EU: 50% of the 
increase in trade-related technical assistance will go to the ACP countries. 

In  addition  to  the  financial  dimension,  the  other  pillar  of  the  strategy  is  constituted  by  the 
principles of effectiveness, in particular alignment and ownership by the partner countries.  

Although  this  strategy  was  adopted  only  very  recently,  the  Commission's  follow-up  report 
shows encouraging but patchy results.  

Aid  for  trade  is  now  an  integral  part  of  EU  development  cooperation.  In  2006  trade-related 
technical  assistance  provided  by  the  Member  States  totalled  €641  million,  while  the 
Community's aid amounted to €941 million, i.e. almost 60% of the total. The Community is 
therefore  already  not  far  short  of  its  commitment  to  reach  €1  billion  a  year.  The  Member 
States, for their part, will have to increase their technical assistance by 56% between now and 
2010 if they are to bring their collective assistance to one billion as planned. This target can 
be met, but will require a sustained effort.  

The EU's total aid for trade (which includes technical assistance for trade, productive capacity 
and infrastructure) has risen significantly, standing at €7.279 billion in 2006. 

Concerning forecasts, however, it is nevertheless worrying that only six Member States are in 
a  position  to  present  forecasts  for  the  increase  in  their  trade-related  technical  assistance 
between now and 2010 and that none of them can confirm that the objective of allocating 50% 
of the increase in aid to the ACP States will be met. The 10th EDF regional programmes will 
be an opportunity for the Member States to do this by issuing their forecasts of assistance to 
complement Community aid.  

As regards the quality of European aid for trade, the follow-up report cites good intentions to 
make  progress  in  coordination  and  complementarity.  Nine  Member  States  have  already 
started  a  joint  analysis  of  the  trade  situation  and  seven  of  them  are  embarked  on  a  joint 
programming process. Six Member States and the Commission, together accounting for 83% 
of EU aid for trade, have already implemented most of the Council's recommendations16.  

15 
16 

Council of the European Union, Document 13070/07, 11 October 2007. 
The  principles  governing  the  effectiveness  of  the  aid-for-trade  strategy  concern  the  mechanisms  for 
assessing  a  country's  needs,  the  integration  of  trade  into  development  and  cooperation  strategy,  the 
inclusion of sustainability considerations, analysis, programming and joint financing. 

EN 

11 

   EN 

 
                                                 
The  Council  is  invited  to  recommend  that  the  Member  States  sustain  their  efforts,  and 
collectively increase their trade-related technical  assistance so  that  by 2010 it is 56% up on 
2006, in accordance with financial objectives, and that they redouble existing efforts to ensure 
the complementarity and quality of European aid.  

The  Commission  invites  the  Member  States  to  make  a  major  effort  to  forecast  their  aid  for 
trade, in particular that to the ACP countries, and to join it in drawing up, by the end of the 
year, "European aid-for-trade packages" and in setting up regional funds to support the EPAs 
and regional integration processes where the ACP regions concerned so desire.  

6. 

CONCLUSIONS – A FRESH IMPETUS IS NEEDED 

The Council and the Member States meeting within the Council are invited to adhere to the 
above set of proposals with a view to confirming and fulfilling their financial commitments, 
radically changing approaches to aid management and increasing synergies between European 
policies and the MDGs by applying the principles of policy coherence for development.  

Aside from the volume and effectiveness of aid, achieving the MDGs requires specific action 
in  education,  health,  the  environment,  water,  agriculture,  growth  and  infrastructure.  That  is 
the  task  that  the  MDG  Africa  Group  has  set  itself.  It  is  also  the  objective  of  the  "Call  to 
Action".  These  initiatives,  prompted  by  the  pressing  need  to  speed  up  progress  towards  the 
MDGs,  require  an  agenda  for  action  to  provide  a  collective  EU  response  that  the  European 
Council  is  invited  to  promote  in  the  light  of  the  work  undertaken  in  the  European  research 
project on development policies17. The Commission intends to make available an initial paper 
on the MDGs to the June European Council. 

Such  efforts  are  vital.  But  these  proposals  only  translate  into  operational  terms  the 
commitments made in 2005. Taking the MDGs seriously also means looking to the future and 
keeping  in  mind  two  essential  facts.  First,  meeting  planned  targets  is  not  an  end  in  itself 
insofar as poverty will only be halved in 2015. Second, major new challenges such as climate 
change,  population  trends,  instability  in  the  financial  markets,  tax  systems,  and  the 
degradation of natural resources and the environment all make it more difficult to achieve the 
goals laid down eight years ago.  

All this should encourage the Union to redouble its efforts to fulfil the financial and political 
objectives it set  itself  and  encourage  other donors to assume their share of the development 
burden. 

17 

GAERC,  11.4.2006,  "…welcome  the  Commission’s  proposal  to  promote  a  European  network  of 
research centres on development issues and looks forward to further elaboration of this initiative". 

EN 

12 

   EN 

 
                                                 
Figure 1: Global aid flows 2000 – 2010 (in € million constant 2006) 

EU 15
Canada
Japan
US

)
6
0
0
2

t
n
a
t
s
n
o
c
(
n
o

i
l
l
i

m
O
R
U
E

80.000

70.000

60.000

50.000

40.000

30.000

20.000

10.000

0

EU

US

Japan

Canada

2000

2001

2002

2003

2004

2005

2006

2007 2008* 2009* 2010

*data  for  linearly approximated based on OECD 2010 aid simulation.

Source: European Commission calculations on OECD/ DAC data. 

EN 

13 

   EN 

 
 
 
 
 
EU ODA 2004 - 2007 - ODA estimates 2008 - 2010 

2004 

2005 

2006 

2007 

2008 

2009 

2010 

ODA in 
million € 

ODA in % 
of GNI 

ODA in 
million € 

ODA in % 
of GNI 

ODA in 
million € 

ODA in % 
of GNI 

ODA in 
million € 

ODA in % 
of GNI 

ODA in 
million € 

ODA in % 
of GNI 

ODA in 
million € 

ODA in % 
of GNI 

ODA in 
million € 

ODA in % 
of GNI 

Austria 

Belgium 

Bulgaria 

Cyprus 

Czech Republic 

Denmark 

Estonia 

Finland 

France 

Germany 

Greece 

Hungary 

Ireland 

Italy 

Latvia 

Lithuania 

Luxembourg 

Malta 

The Netherlands 

Poland 

Portugal 

Romania 

Slovak Republic 

Slovenia 

Spain 

Sweden 

UK 

EU 15 TOTAL 

546 

1.178 

NA 

4 

87 

1.639 

4 

547 

6.820 

6.064 

258 

56 

489 

1.982 

7 

8 

190 

8 

3.384 

95 

830 

NA 

23 

25 

1.962 

2.191 

6.339 

34.418 

0,23  

0,41  

NA 

0,03  

0,11  

0,85  

0,04  

0,37  

0,41  

0,28  

0,16  

0,07  

0,39  

0,15  

0,06  

0,04  

0,83  

0,18  

0,73  

0,05  

0,63  

NA 

0,07  

0,10  

0,24  

0,78  

0,36  

0,35 

1.266 

1.580 

NA 

12 

109 

1.697 

8 

726 

8.067 

8.112 

309 

80 

578 

4.096 

8 

12 

206 

8 

4.116 

165 

303 

NA 

45 

29 

2.428 

2.706 

8.666 

44.857 

0,52  

0,53  

NA 

0,09  

0,11  

0,81  

0,07  

0,46  

0,47  

0,36  

0,17  

0,10  

0,42  

0,29  

0,07  

0,06  

0,86  

0,18  

0,82  

0,07  

0,21  

NA 

0,12  

0,10  

0,27  

0,94  

0,47  

0,44 

1.193 

1.576 

1 

21 

128 

1.782 

12 

664 

8.446 

8.314 

338 

119 

814 

2.901 

10 

18 

232 

7 

4.344 

239 

315 

3 

44 

35 

3.039 

3.151 

9.932 

47.040 

EN 

0,49 

0,43 

0,06 

0,12 

0,11 

0,81 

0,12 

0,40 

0,39 

0,37 

0,16 

0,07 

0,54 

0,19 

0,06 

0,11 

0,90 

0,15 

0,81 

0,09 

0,19 

0,07 

0,09 

0,12 

0,41 

0,93 

0,36 

0,40 

933 

1751 

33 

21 

134 

1932 

23 

838 

8772 

10567 

603 

69 

913 

5235 

13 

37 

299 

9 

4754 

340 

495 

136 

73 

54 

5422 

3539 

8554 

54605 

0,47  

0,50  

0,00  

0,15  

0,12  

0,80  

0,09  

0,40  

0,47  

0,36  

0,17  

0,13  

0,54  

0,20  

0,06  

0,08  

0,84  

0,15  

0,81  

0,09  

0,21  

0,00  

0,10  

0,12  

0,32  

1,02  

0,51  

0,43 

1.313 

1.427 

16 

18 

131 

1.872 

17 

711 

7.261 

8.961 

366 

66 

869 

2.870 

12 

30 

266 

8 

4.540 

260 

294 

80 

49 

40 

4.196 

3.166 

7.247 

45.361 

14 

0,33 

0,50 

0,10 

0,13 

0,10 

0,80 

0,14 

0,44 

0,45 

0,42 

0,25 

0,07 

0,54 

0,33 

0,06 

0,12 

0,91 

0,17 

0,80 

0,10 

0,30 

0,12 

0,12 

0,15 

0,50 

1,00 

0,44 

0,47 

970 

2191 

51 

24 

144 

2014 

29 

956 

9791 

12183 

839 

130 

1036 

6905 

16 

49 

326 

10 

5072 

517 

697 

191 

97 

61 

6149 

3709 

10006 

62845 

0,33 

0,60 

0,14 

0,14 

0,10 

0,80 

0,15 

0,48 

0,48 

0,46 

0,32 

0,13 

0,58 

0,42 

0,06 

0,14 

0,92 

0,17 

0,81 

0,14 

0,41 

0,15 

0,15 

0,16 

0,54 

1,00 

0,49 

0,51 

1.552 

2.669 

68 

28 

155 

2.109 

35 

1.067 

10.810 

13.798 

1.076 

182 

1.139 

8.706 

20 

67 

358 

10 

5.245 

679 

898 

247 

120 

69 

7.218 

3.875 

12.232 

72.752 

0,51 

0,70 

0,17 

0,15 

0,10 

0,80 

0,16 

0,51 

0,51 

0,51 

0,39 

0,17 

0,60 

0,51 

0,07 

0,17 

0,93 

0,17 

0,80 

0,17 

0,51 

0,17 

0,17 

0,17 

0,60 

1,00 

0,56 

0,57 

EN 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
EU 10/12 TOTAL 

EU 25/27 TOTAL 

316 

34.735 

0,07 

0,33 

479 

45.336 

0,08 

0,41 

637 

47.676 

0,09 

0,41 

EU 25/27 ODA in USD 

43.156 

56.344 

59.839 

726 

46.087 

63.090 

0,09 

0,38 

942 

55547 

0,10 

0,44 

1319 

64164 

0,13 

0,49 

1.681 

74.432 

0,16 

0,54 

Sources: OECD/DAC for 2004 - 2006. Commission data based on Member States' information to the Commission or the DAC for 2007. 

Shaded cells contain information supplied by Member States; white cells are Commission data or simulations. ODA is at current prices. 

EN 

15 

EN