Commission staff working document accompanying the Report from the Comission to the Council - EU 2009 Report on Policy Coherence for Development {COM(2009) 461 final}
Date: 2009-09-17
Institutions: European Commission
Subjects: EU action, EU aid, EU policy, developing countries, development aid, development policy

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 17.9.2009 
SEC(2009) 1137 final 

COMMISSION STAFF WORKING DOCUMENT 

Accompanying the 

REPORT FROM THE COMISSION TO THE COUNCIL 

EU 2009 Report on Policy Coherence for Development 

{COM(2009) 461 final} 

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TABLE OF CONTENTS 

1. 

2. 

2.1. 

2.2. 

2.3. 

2.4. 

2.5. 

2.6. 

3. 

3.1. 

3.2. 

3.3. 

3.4. 

3.5. 

3.6. 

3.7. 

3.8. 

3.9. 

Introduction .................................................................................................................. 3 

Organisational Mechanisms ......................................................................................... 4 

General commitment to Policy Coherence for Development ...................................... 6 

PCD Promotion in EU Member States......................................................................... 7 

PCD Promotion within the Commission.................................................................... 12 

PCD Promotion at EU level/Role of the Council/Presidency and the European 

Parliament .................................................................................................................. 15 

Partner Country Perspective....................................................................................... 17 

Conclusion & Outstanding Issues .............................................................................. 20 

Policy Areas ............................................................................................................... 23 

Trade .......................................................................................................................... 23 

Environment............................................................................................................... 39 

Climate Change.......................................................................................................... 51 

Security ...................................................................................................................... 61 

Agriculture ................................................................................................................. 76 

Fisheries ..................................................................................................................... 87 

Social Dimension of Globalisation, Employment and Decent Work ...................... 101 

Migration.................................................................................................................. 114 

Research and Innovation .......................................................................................... 124 

3.10. 

Information Society.................................................................................................. 141 

3.11. 

Transport .................................................................................................................. 151 

3.12. 

Energy ...................................................................................................................... 159 

4. 

4.1. 

4.2. 

4.3. 

4.4. 

Case Studies ............................................................................................................. 169 

Conceptual and Theoretical Framework .................................................................. 169 

Case Study on MDG 1 (Hunger) and PCD .............................................................. 175 

Case study on MDG 6 .............................................................................................. 188 

The Joint Africa – EU Strategy (JAES) ................................................................... 201 

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1. 

INTRODUCTION 

Since  the  mid  1990's  EU  Member  States  sought  to  improve  coordination  of  bilateral  and 
multilateral  development  policies  in  the  light  of  greater  integration  in  the  Union,  greater 
convergence  of  development  objectives  and  limited  availability  of  resources  to  face  ever-
increasing  challenges 
increased 
interdependence  of  countries  and  regions  throughout  the  world,  and  the  rapid  expansion  of 
information  technologies  are  illuminating  starkly  the  developed  and  emerging  countries' 
diverging interests or competing objectives which can sometimes have dramatic consequences 
for the developing world. 

in  developing  countries.  Meanwhile,  globalisation, 

Against  this  background,  realising  that  its  policies  in  areas  other  than  development  were 
having some unintended impacts on third countries and building on the OECD work in this 
area,  the  Union  formulated  a  concept  of  Policy  Coherence  for  Development  aimed  at 
strengthening  synergies  between  those  non-aid  polices  and  its  development  objectives.  The 
idea  was  that  carefully  designed  and  implemented  EU  policies  would  generally  lead  to 
increased  effectiveness  of  development  aid  and  non-aid  policies,  and  to  efficient  use  of 
resources, by limiting policy incoherence and developing synergies.  

To  this  end,  the  EU  committed  itself  to  PCD  in  twelve  policy  areas1  in  2005  and  has 
endeavoured  to  strengthen  PCD  procedures,  instruments  and  mechanisms  at  all  levels  since 
then.  These  efforts  were  formally  embedded  in  the  European  Consensus  on  Development 
adopted in December 20052 and a first progress report on PCD in the Union, setting out the 
views  and  expertise  of  the  Member  States,  was  issued  by  the  Commission  in  September 
20073, as requested by the Council in May 2005.  

The  first  report  showed  what  the  Union  had  done  in  organisational  terms  and  in  the  twelve 
policy  areas,  highlighting  specific  aspects  for  each  policy  domain,  acknowledging  progress 
and  setbacks,  identifying  outstanding  issues  and  providing  a  comprehensive  overview.  The 
report was used to improve PCD awareness in the EU through debates and discussions in a 
number of fora and in different countries. Overall, the document was welcomed by many as a 
valuable  attempt  to  take  stock  of  PCD  endeavours  in  the  EU  confirming  the  EU  policy 
commitment to PCD and reinforcing its lead role at international level. 

Building on the 2007 report's findings and recommendations, the Commission elaborated on 
PCD  issues  in  four  thematic  areas  (Migration,  Research,  Climate  Change  and  Energy)  in  a 
Staff Working Paper published in April 2008. Tying in with the Commission Communication 
on  speeding  up  the  achievement  of  MDGs4,  the  paper,  which  resulted  from  a  in-depth 

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May  2005  Council  Conclusions  on  PCD.  The  twelve  policy  areas  are  Trade,  Environment,  Climate 
Change, Security, Agriculture, Fisheries, Social Dimension of Globalisation, Employment and Decent 
Work, Migration, Research and Innovation, Information Society, Transport and Energy. 
OJ  2006/  C  46/01,  December  2005,  Joint  Statement  by  the  Council  and  the  representatives  of  the 
governments  of  the  Member  States  meeting  the  Council,  the  European  Parliament  and  the  European 
Commission- "The European Consensus on Development", ,  
Com  (200)  545  final  and  Sec(2007)  1202,  20/09/20007.  EU  Report  on  Policy  Coherence  for 
Development. 
SEC(2008)  434,  9.4.2008,  European  Commission,  Staff  working  paper,  "Policy  Coherence  for 
Development Climate Change/Energy/Biofuels, Migration and Research" 

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consultation  of  interested  partners5,  provided  some  options  for  drawing  up  development 
friendly policies in the four areas of focus. 

The debate that ensued from the 2007 PCD report and the Staff Working Paper of April 2008, 
together  with  discussions  with  civil  society  and  international  organisations  on  PCD  issues 
(Civil  society  meeting  on  development  and  coherence  issues,  the  OECD  DAC  reflection 
exercises etc.) and the renewed focus on MDG in 2007/8 led to a rethinking of the EU PCD 
methodology  for  the  2009  reporting  exercise  and  to  an  increased  focus  on  the  impact  on 
developing countries.  

With the positive experience of 2007 in mind, the 2009 report takes a two-pronged approach 
to  the  subject  matter  while  integrating  some  evidence-based  PCD..  An  updated  analysis  of 
policy changes has been compiled, based on contributions by Member States and the various 
Commission  services.  As  such,  the  2009  report  continues  to  reflect  EU-wide  endeavours  to 
promote PCD at national, EU and international levels. 

In addition however, the 2009 report presents an overall conceptual framework linking the 12 
EU  policies  to  the  MDGs  in  developing  countries  and  gives  details  of  three  case  studies  in 
developing  countries  and  specifically  in  Africa,  given  the  particularly  dramatic  situation 
therewith regard to MDGs. Two case studies focus on MDGs (MDG1 on hunger and MDG6 
on the fight against HIV/Aids) in three developing countries (Senegal, Ethiopia, Mozambique 
for MDG1; Rwanda, Zambia, Tanzania for MDG6), the third case concentrates on the Joint 
Africa-EU Strategy as a framework with strong PCD potential.  

With  a  strong  focus  on  the  impact  in  developing  countries,  the  EU  efforts  to  boost  policy 
coherence  for  development  should  gain  credibility  and  political  clout.  By  establishing 
potential and concrete linkages between PCD efforts and progress in reducing poverty in poor 
countries,  the  report  should  help  to  further  raise  awareness  of  PCD  potential  among  policy 
makers and more generally among the wider public. In keeping with the original mandate, the 
present 2009 PCD report provides a basis for assessing PCD progress in the EU and serves as 
an information tool to generate debate and to obtain feedback from EU stakeholders. Further, 
the  linkages  to  progress  on  MDGs  and  to  the  Africa-EU  strategy  provides  feedback  from 
developing  countries  and  may  promote  the  principles  of  PCD  as  a  relevant  development 
concept to be further explored in policy fora in the south. 

2. 

ORGANISATIONAL MECHANISMS  

Brining  about  greater  coherence  between  policies  and  development  objectives  is  a  complex 
endeavour. To succeed in this task governments need certain structures and mechanisms. The 
precise nature and interplay of these varies depending on the different political systems. But 
broadly  speaking  there  are  three  key  building  blocks  1)  a  general  –  preferably  legal  - 
commitment  to  PCD,  and  a  political  framework  outlining  the  approach  to  PCD,  2) 
institutional  mechanisms,  with  a  specific  mandate  to  promote  PCD  and  3)  a  reporting 
obligation. The OECD pictures them together in the policy coherence cycle6: 

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Such as civil society organisations, international organisations and developing country representatives 
Organisation  for  Economic  Co-operation  and  Development,  Policy  Brief,  Policy  Coherence  for 
Development – Lessons Learned, December 2008  

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2.1. 

General commitment to Policy Coherence for Development 

EU  commitment  to  PCD  is  founded  as  regards  the  legal  base  on  article  178  of  the  Treaty 
establishing  the  European  Community,  and  in  a  more  general  way  on  article  3,  second 
subparagraph,  of  the  Treaty  on  European  Union  as  regards  consistency  between  all  the 
Union's policies and its external activities. The Treaty of Lisbon would give a solid legal base 
to  Policy  Coherence  for  Development  with  two  articles  of  particular  importance.  Firstly, 
article  21(2)(d)  and  (3)  of  the  Treaty  on  European  Union  in  the  chapter  on  the  general 
provisions  on  the  Union's  external  action  which  sets  out  sustainable  development  and  the 
eradication  of  poverty  as  objectives  of  the  Union's  external  action.  Importantly,  this  article 
also stipulates that the EU shall pursue this objective in the development and implementation 
of  the  different  areas  of  the  Union's  external  action  and  of  the  external  aspects  of  its  other 
policies.  Secondly,  article  208(1)  of  the  Treaty  on  the  Functioning  of  the  European  Union 
would be the new version of the 178 coherence article with almost identical wording. 

The  political  framework  has  been  set  by  the  Commission's  Communication  on  Policy 
Coherence  for  Development  in  April  20057,  the  subsequent  Council  Conclusions  in  May 
20058,  the  European  Consensus  on  Development  in  December  20059,  as  well  as  in  the 
Council  Conclusions  on  the  EU  PCD  report  in  November  200710.  PCD  commitments  in 
specific  areas  were  made  in  particular  with  the  Council  conclusions  on  security  and 
development  and  the  Conclusion  on  migration  both  of  them  adopted  in  November  2007,  as 
well as the Council Conclusions of May 2008 on Climate Change/Energy/Biofuels, Migration 
and Research.  

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COM(2005)134 of 12.04.2005 
Doc.9266/05 Council Conclusions, May 2005  
December  2005,  OJ  2006/C46/01,  Joint  Statement  by  the  Council  and  the  representatives  of  the 
governments  of  the  Member  States  meeting  within  the  Council,  the  European  Parliament  and  the 
European Commission – 'The European Consensus on Development'  
Doc 15112/07Council Conclusions, November 2007 

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2.2. 

PCD Promotion in EU Member States 

2.2.1.  General commitment, capacity and approach to PCD 

A growing number of Member States have officially committed themselves to PCD (see chart 
below11).  The  Czech  Republic,  Hungary,  Latvia,  Poland  and  Romania  have  adopted 
legislation putting a specific emphasis on PCD. Austria, Germany, Ireland, the Netherlands, 
Slovenia  and  Sweden  (re)confirmed  their  commitment  to  PCD  in  long  term  government 
policies  and/or  coalition  programmes.  The  Irish  Government’  Programme  ‘A  Blueprint  for 
Ireland’s  Future’,  for  example,  commits  the  government  to  an  integrated  approach  to 
development  across  all  departments.  Some  new,  small  donors  envisage  specific  changes  in 
policy commitment to PCD in the near future.  

Sweden  and  Austria  have  identified  focus  areas  for  their  PCD  work:  Sweden  specified  six 
global  challenges  as  priorities  for  ensuring  PCD:  oppression,  economic  exclusion,  climate 
change and environmental impact, migration flows, communicable diseases and other health 
threats,  and  conflicts  and  fragile  situations  (see  box  below).  Austria  is  focusing  its  PCD 
efforts  on  three  themes:  Environment  and  Development,  Food  Security,  and  Education  and 
Science.  

Sweden: Six Global Challenges: A PCD Focusing Methodology. 

Prior to 2007, Sweden attempted a whole-of-government approach to PCD but this provided 
to  be  ineffective  as  the  policies  of  individual  government  offices  were  not  always  coherent 
with  each  other.  The  problems  overall  stemmed  from  a  lack  of  policy  ownership,  a  poor 
understanding  of  PCD  means  in  practice,  and  the  absence  of  a  guiding  strategy  for 
implementation  of  PCD  policies.12  Sweden  embarked  on  a  new  approach  in  2007  whereby 
PCD  efforts  are  focused  on  selected  global  challenges.  It  announced  this  new  approach  to 
Parliament  on  17  March  2008,  in  a  communication  entitled  Sweden’s  Policy  for  Global 
Development  (Govt  Comm.  2007/8:89).  The  six  challenges  selected  are:  Oppression, 

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Chart  based  on  Member  States'  responses  to  a  dedicated  PCD  2009  questionnaire  prepared  by  the 
European Commission 
Government Offices of Sweden, Global Challenges – Our Responsibility: Communication on Sweden’s 
policy for global development. 2008 

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Economic exclusion, Climate change and environmental impact, Migration flows, Infectious 
diseases and other health threats, and Conflicts and fragile situations. They have been further 
subdivided into 18 cases, each with clear objectives and policy implementation targets along 
with  a  selection  of  measures  that  are  seen  as  necessary  to  fulfil  each  objective.  Each 
government  office  is  responsible  for  developing  the  necessary  policies  and  management 
processes for meeting the objectives. A global development policy forum has been established 
within  government  offices  for  increasing  coordination  and  coherence.  All  policies  that  have 
an impact on global development are subject to an impact assessment that evaluates the policy 
according to a “rights perspective and the perspective of poor people on development”. Also, 
cooperation  with  non-state  actors  is  promoted  by  the  “actor-driven  cooperation”  approach, 
which  focuses  on  developing  self-sustaining  relationships  between  Swedish  and  developing 
country  actors.  The  first  performance  evaluation  of  Sweden’s  new  PCD  approach  will  be 
conducted in 2010.  

2.2.2.  Administrative coordination and institutional mechanisms with a specific mandate to 

promote PCD  

A  number  of  Member  States  are  enhancing  their  capacity  to  ensure  PCD.  Seven  Member 
States took specific steps to enhance PCD capacity across government. The UK expanded the 
role of DFID and increased the number of inter-departmental units in areas such as trade and 
climate  change  (see  box).  The  Netherlands  intensified  its  focus  on  inter-ministerial 
agreements  on  development  policy.  France  created  a  new  Directorate  General  for 
Globalisation,  Development  and  Partnerships,  with  a  unit  focusing  on  aid  effectiveness  and 
policy coherence.  

UK, Making it Happen: April 2008 an internal management and delivery initiative 

In April 2008, an internal management and delivery initiative (Making it Happen) helped to 
broaden the agenda of UK development policies to include areas that were previously outside 
of  the  development  sector.  The  move  towards  increasing  PCD  capacity  began  in  July  2007 
with the doubling in size of the ministerial team for international development. 13 One of the 
major  components  of  the  government’s  PCD  effort  is  the  establishment  of  a  joint  DFID  – 
Department  of  Business,  Enterprise,  and  Regulatory  Reform  Trade  Policy  Unit  (TPU)  in 
November 2007.2 This new unit places the responsibility for overseeing trade policy jointly 
on  the  two  ministries,  and  a  new  Cabinet  Committee  was  created  to  increase  coherence. 
Furthermore,  a  Justice  Assistance  Network  was  created  in  May  2007,  as  a  joint  effort  by 
DFID,  the  Attorney  General,  and  the  FCO,  to  ensure  that  UK  justice  assistance  is  coherent 
and  effective.  1  Also,  in  2007,  Her  Majesty’s  Treasury  (HMT)  and  Her  Majesty’s  Revenue 
and  Customs  started  taking  steps  to  ensure  that  taxation  treaties  are  in  line  with  the  UK’s 
development objectives.1 DFID, the FCO, and HMT have also worked jointly to develop the 
Extractive Industries Transparency Initiative.2 The increased coordination between ministries 
dealing  with  trade,  migration,  and  financial  matters  is  necessary  to  make  the  UK’s 
development cooperation and policy coherence more effective. 

About 75% of Member States have improved their institutional decision-making processes to 
ensure  PCD.  A  large  majority  of  the  Member  States  now  have  well-established  inter-
ministerial  or  interdepartmental  committees,  units  or  task  forces  specifically  mandated  to 

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DFID. DFID Annual Report 2008: Making It Happen.: http://www.dfid.gov.uk/pubs/files/departmental-
report/2008/default.asp. 

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ensure PCD. Romania, for example, created the Inter-ministerial Commission for Economic 
Cooperation and International Development in July 2007. A number of Member States prefer 
more  informal  working  groups  or  networks.  Finland  and  Portugal  strengthened  their  role  of 
the  PCD  Coordinator.  Hungary  and  Portugal  established  PCD  focal  points  within  non-
development  ministries.  The  UK  established  a  Cabinet  Committee  on  Trade,  chaired  by 
DFID’s  Secretary  of  State.  As  Finland  and  Spain  had  done  before  2007,  Austria,  Czech 
Republic and Latvia have also now established independent national advisory bodies to advise 
the government on PCD issues. These generally consist of representatives from development 
and  non-development  ministries,  independent  experts  -  from  the  private  sector,  NGOs, 
research - and, in the case of Latvia, representatives of municipalities as well.  

Interministerial cooperation on climate change: the example of Germany 

Since  the  beginning  of  2008,  the  German  Federal  Environment  Ministry  (BMU)  has  made 
available  up  to  €120  million,  creditable  agains t  ODA,  for  International  Climate  Protection. 
The  goal  is  to  contribute  to  reducing  emissions  in  a  cost-effective  way  through  increased 
energy efficiency and greater use of renewable energies in developing countries as well as to 
promote  adaptation  to  climate  change  in  those  countries.  In  order  to  ensure  coherence  with 
development  policy,  the  Federal  Ministry  of  Finance  issued  a  guidance  note  stipulating 
approval  of  the  Federal  Ministry  for  Economic  Cooperation  and  Development  (BMZ)  must 
approve all decisions related to the programme’s financing. 

In  accordance  with  increased  thematic  focus,  Sweden  has  set  up  new  interdepartmental 
working  groups  for  each  of  the  six  global  challenges  and  the  UK  has  established  thematic 
PCD Units on Trade Policy; Returns and Reintegration (on Migration), Energy and Climate 
Change  (at  the  High  Commission  in  Delhi)  and  Stabilisation.  Sweden  and  the  UK  have 
introduced  results-based  management  principles  for  designing and managing action  agendas 
for ensuring PCD in thematic areas.  

Unsurprisingly  capacities  in  national  administrations  still  vary  between  Member  States.  For 
some  countries,  PCD  is  not  a  first  priority  and  awareness  of  the  need  for  it  in  non-
development ministries remains low. It is noticeable that in Member States that have a strong 
policy  commitment 
its 
implications better too. 

to  PCD,  non-development  ministries  reportedly  understand 

2.2.3.  Analysis, reporting and awareness raising 

Better  use  of  impact  assessment  as  well  as  more  intensive  exchanges  with  the  European 
Parliament and a broader range of civil society actors was identified as an outstanding issue in 
the  2007  PCD  report.  Recognising  the  importance  of  clear  evidence  for  enhancing  PCD  as 
well as the need to involve the public, Member States made more use of impact assessments, 
strengthened their reporting mechanisms and engaged in a broader dialogue with parliaments 
and civil society actors. 

Seven  Member  States  use  impact  assessments  systematically  to  support  effective  action  on 
PCD.  The  Netherlands  focuses  in  particular  on  decision-making  around  EPAs.  Sweden  is 
developing measures to do impact assessment at an early stage in the PCD decision-making 
process. The UK focuses its assessments mostly on the impact of insecurity, climate change 
and economic growth. Germany and Ireland make use of impact assessments by the European 
Commission and others. Germany underlines the particular usefulness of Trade Sustainability 
Impact  Assessments.  Poland  has  created  a  special  post  on  Impact  Assessment  within  the 

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Department of International Cooperation. Romania and Lithuania expect to make more use of 
impact assessments in the near future. 

Reporting on PCD is more and more integrated into general reporting on development policy. 
In their regular reports to Government, Swedish embassies and field offices provide feedback 
on  PCD  in  partner  countries  based  on  individual  country  assistance  strategies.  The  UK’s 
International Development (Reporting and Transparency) Act requires the Secretary of State 
for International Development to report to Parliament each year, including on a range of PCD 
areas.  In  Germany,  PCD  reporting  is  included  in  the  overall  report  which  the  Federal 
Government  presents  to  parliament  once  every  election  period.  The  most  recent  was  the 
‘White  Paper  on  Development  Policy’  issued  in  June  2008.  In  Ireland,  the  same  month, 
Ireland's  Interdepartmental  Committee  on  Development  presented  its  first  Annual  Report  to 
the  Minister  for  Foreign  Affairs..  Amongst  the  newer  European  donors,  progress  reports 
frequently refer to advances made in more general ODA reporting. 

The Netherlands undertakes regular external evaluations of the work of its Policy Coherence 
for Development Unit. These evaluations assess the relevance, added value and results of the 
Unit's  three  primary:  PCD  screening  of  Dutch  positions  in  the  European  Union;  pro-active 
networking and lobbying with other directorates and relevant ministries to define and achieve 
specific results on a limited number of current PCD issues; and strengthening EU and wider 
international cooperation on PCD.  

Very few Member States report on studies analysing the root causes of PCD or the lack of it. 
Irish Aid commissioned research on PCD that involved comprehensive scoping of coherence 
issues  across  Government  Departments.  The  resulting  report,  soon  to  be  published,  is 
expected to identify key policy coherence issues and suggest which of these should be most 
urgently  addressed  by  the  Irish  Government.  The  UK  on  the  other  hand,  reports  that  the 
interplay between climate change, livelihoods and conflict in Darfur has led to a number of 
pioneering projects in the region based on in-depth analyses conducted by different research 
groups,  which  aim  to  address  the  underlying  environmental  causes  of  conflict,  providing  a 
long-term sustainable basis for growth in the context of pressing and immediate humanitarian 
needs. 

Awareness  and  transparency  of  PCD  issues  are  increasing  considerably  in  Member  Sates. 
Most  Parliaments  are  engaging  much  more  actively  on  PCD  issues.  The  UK  House  of 
Commons organised sessions on Sustainable Development in a Changing Climate, DFID and 
China, World Food Programme and Global Food Security, Scrutiny of Arms Export Control, 
Development and Trade and Cross-departmental Working and Afghanistan Reconstruction in 
2008/9.  Members  of  Parliament  in  many  Member  States  repeatedly  spent  a  lot  of  time 
discussing the findings of civil society organisations and research institutions with expertise 
in PCD. 

Most  Member  States  have  made  a  big  effort  to  raise  stakeholders'  awareness  of  PCD,  to 
increase accountability and transparency on PCD and to engage the public at large. Poland for 
example  reports  a  steady  intensification  of  the  dialogue  with  civil  society  organisations.  It 
held  several  seminars  and  events  and  has  created  a  special  web  page  designed  to  make 
knowledge and information on PCD and the risks of non-compliance more widely available. 
In the Netherlands, intensive dialogues with a wide range of stakeholders were conducted on 
PCD-related topics during the formulation of the Government Agenda 2015. PCD was a key 
topic  at  a  major  public  Africa  Conference  in  Rotterdam  in  2008,  while  in  2007  public 
presentations of the CDI Index were given. The UK continued to fund the Centre for Global 

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Development’s  Commitment  to  Development  Index  (CDI)  as  part  of  their  efforts  to  raise 
awareness  within  governments  and  among  the  general  public  of  the  many  ways  that  donor 
governments affect developing countries. 

2.2.4.  Conclusion on the situation in Member States 

Generally  speaking  many  Member  States  have  continued  to  develop  their  approach,  legal 
framework  and  practical  measures  to  ensure  PCD.  Member  States  with  an  appropriate  legal 
base find it easier to promote PCD. Obstacles remain with regard to the lack of awareness of 
development  issues  on  the  part  of  non-development  line-ministries.  This  is  compounded  by 
the difficulty of providing evidence about the ultimate impact of non-development policies on 
poverty  in  developing  countries,  making  it  difficult  to  show  the  results  of  increased  PCD. 
Member States have made good progress, but despite these efforts, particularly by the more 
recent donors awareness and capacities needs to be further increased to address PCD issues 
adequately. 

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2.3. 

PCD Promotion within the Commission 

The Commission has gained a high profile for its work on PCD. The latest DAC Peer Review 
of EC aid14 recognises the substantial progress made by the Commission to putting in place 
effective mechanisms to ensure PCD. In the reporting period the Commission concentrated on 
implementing  its  legal  and  political  framework,  and  on  using  its  coordination  and  reporting 
mechanisms in a more effective, active and targeted way.  

The  preparation  of  the  2007  PCD  report  was  instrumental  in  raising  awareness,  enhancing 
understanding and increasing ownership of PCD in the Commission and the Member States. 
Its publication has been recognised by the Member States as a major achievement. However, 
the Netherlands found that drawing operational conclusions from the evidence provided was 
difficult  and  did  not  encounter  sufficiently  broad  support  from  Member  States  and 
Commission.  

In 2008, the Commission took its PCD work further by sharpening, and making better use of 
Inter-service  consultation  (ISC)  and  Impact  assessments  (IA),  both  of  which  are  powerful 
mechanisms to promote PCD.  

At international level, the Commission contributed to the OECD DAC Reflection Group on 
the revision of the DAC mandate, thus helping to make PCD a renewed priority for DAC in 
the future. 

2.3.1.  More effective use of impact assessments and inter-service consultations: PCD work 

plan 

Every  year,  the  Commission  adopts  hundreds  of  new  legislative  proposals  and  policy 
initiatives, which undergo IA and ISC. In an effort to identify the initiatives which will affect 
developing countries, the Commission now regularly establishes an informal PCD workplan, 
which  lists  all  those  EU  policy  initiatives  and  legislative  proposals  that  are  likely  to  have 
significant impact on developing countries. In 2008, 26 initiatives were identified and 37 in 
2009. 

This PCD planning list has been an important step forward. It allows the Commission to use 
the ISC and IA in a much more effective and strategic way and to concentrate its efforts on 
those initiatives with the biggest impact on developing countries. In addition, this exercise of 
jointly identifying the relevant initiatives with the responsible civil servants has proved to be a 
very useful process for enhancing ownership and increasing awareness of PCD issues.  

2.3.2.  Revision of the IA guidelines 

The  Commission  uses  impact  assessment  to  identify  likely  consequences  of  its  policy 
initiatives or legislative proposals in the economic, environmental and social fields. The 2007 
PCD report suggested using them to get a clearer idea of how developing countries may be 
affected.  The  Commission  therefore  took  the  opportunity  to  revise  the  IA  guidelines  to 
strengthen their external dimension and to sharpen them as a PCD instrument15.  

14 
15 

OECD Development Assistance Committee (DAC) Peer Review of the European Community, 2007 
See http://ec.europa.eu/governance/impact/index_en.htm 

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The  revised  IA  guidelines  applicable  since  January  2009,  put  the  Commission  in  a  better 
position  to  ensure  Policy  Coherence  for  Development,  in  so  far  as  they  call  for  a  more  in-
depth  analysis  of  possible  the  ways  in  which  EU  policy  initiatives  might  affect  developing 
countries. The guidelines state that 'initiatives that may affect developing countries should be 
analysed for their coherence with the objectives of EU development policy. This includes an 
analysis  of  consequences  (or  spill-overs)  in  the  longer  run  in  areas  such  as  economic, 
environmental,  social  or  security  policy.'  Such  an  analysis  has  to  differentiate  between 
countries at different stages of development. According to the new guidelines the impact on 
commitments  arising  from  the  ACP-EC  Partnership  Agreement  must  also  be  checked.  The 
annexes  to  the  guidelines  include  a  specific  section  on  assessing  impacts  on  developing 
countries.  In  addition,  specific  guidance  is  given  for  identifying  possible  consequences  on 
developing  countries,  including  in  the  areas  of  employment,  food  security,  and  natural 
resources stocks.  

These  changes  by  the  Commission  also  responds  to  requests  from  the  European  Parliament 
and the Council to strengthen the external dimension of IA and to improve and make better 
use the IA process to evaluate the impact of EU policies on developing countries.  

2.3.3. 

Institutional mechanisms: PCD unit and PCD inter-service group 

The  PCD  unit  in  DG  Development  continued  to  play  its  catalysing,  advising  and  coaching 
role for PCD. It coordinated the PCD work of the Commission and contributed to making EU 
polices more development-friendly. 

The inter-service group on PCD functions as a forum for exchange of views on PCD issues. 
Its  members  act  as  interpreters  between  the  different  policies.  They  make  proposals  and 
explain how development objectives can be taken into account in other policies. At the same 
time  they  give  background  on  the  policies  of  their  DGs  thereby  promoting  better  mutual 
understanding  and  paving  the  way  for  sometimes  new  and  innovative  ways  of  enhancing 
synergies between policies.  

2.3.4.  Budgetary/financial  issues/financing  of  non-development  activities  in  developing 

countries 

Cooperation with developing countries is no longer limited to promoting their development. 
Mauritania and the Seychelles receive more funding under the Common Fisheries Policy than 
under  the  Development  Fund  (EDF).  Some  countries  receive  considerable  funding  from 
European  Research  programmes  for  research  activities  involving  their  universities  and 
academics. Security, migration and climate change and environment in general are other areas 
where the EU increasingly cooperates with developing countries.  

Cooperation in these areas is mostly financed from non-development budget lines. While not 
primarily  motivated  by  the  will  to  support  these  countries  in  the  fight  against  poverty,  such 
cooperation also has the potential to contribute to development. To harness this potential it is 
important to ensure coherence at the policy level and to develop and strengthen mechanisms 
to ensure that coherence is also improved at the operational level.  

The financing instrument for development cooperation (DCI) is used partly to fund non-ODA 
activities such as some aspects of migration. However, in order to keep the thematic focus of 
the DCI on poverty reduction and the Millennium Development Goals (MDGs), while at the 
same time  taking account of the growing need to  finance non-ODA activities in developing 

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countries,  the  Commission  intends  to  finance  non-ODA  activities  under  the  financial 
instrument for cooperation with industrialised countries, the ICI. To that end it has proposed 
an amendment in the framework of the Mid-Term Review of the external action instruments 
to extend the geographical coverage of the ICI to include developing countries.  

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2.4. 

PCD  Promotion  at  EU  level/Role  of  the  Council/Presidency  and  the  European 
Parliament 

The Council Conclusions on integrating development concerns in Council decision-making of 
October 2006  describe the  roles of the different actors in promoting PCD, emphasising that 
COREPER (the Committee of Permanent Representatives of the Member States to the EU) is 
the main forum for ensuring PCD.  

These  two  main  mechanisms  recommended  for  promoting  PCD,  are  the  Rolling  Work 
Programme  (RWP)  and  the  screening  of  Council  agendas  to  identify  items  with  a 
development dimension and to ensure that development concerns are fully reflected across the 
policy  spectrum  at  all  relevant  stages  in  the  decision-making  process.  Other  mechanisms  to 
promote PCD are the present report, joint meetings both of Council working groups and at the 
ministerial level, and the informal EU PCD network of the EU Member States.  

The  2007  PCD  report  identified  as  one  of  the  outstanding  issues  the  need  to  review  and 
improve Council procedures, in particular with regard to ensuring that PCD is built into the 
Council  working  groups  so  that  COREPER  receives  coherent  submissions.  The  report  also 
suggested  institutionalisation  of  the  PCD  screening  of  Council  agenda,  to  make  the  RWP 
more operational, and organisation of more joint GAERC sessions. 

Slightly more than half of the Member States are of the opinion that PCD procedures at EU 
level  have  been  sufficiently  reviewed  and  improved.  The  others  see  room  for  further 
improvement.  Member  States  with  less  experience  of  PCD  are  on  the  whole  more  positive 
than  the  ones  that  have  been  working  on  it  for  the  last  decade.  For  this  first  group,  the  EU 
procedures  provide  fair  guidelines  to  develop  their  capacity  to  ensure  PCD  within 
government.  

The screening exercise has been carried out by all Presidencies since 2007. Several Member 
States  find  that  even  though,  progress  has  been  made  with  this  exercise,  the  status  of  PCD 
screening remains unclear and specific follow-up is seen as ad hoc.  

The PCD Rolling Work Programme was prepared by the German Presidency in the first half 
of 2007. It was updated by some of the subsequent Presidencies but not by all. Nine Member 
States  use  the  Rolling  Work  Programme  (RWP)  as  part  of  internal  procedures  or  as  a  key 
reference for their PCD work. It provides an important tool for many Member States to help 
focus PCD work nationally, even if some of the more experienced Member States would like 
to see it further improved or feel their established procedures make it as yet unnecessary. 

Although  some  Member  States  find  it  a  useful  tool,  it  has  to  be  acknowledged  that  the 
preparation of this programme is a laborious exercise, which contrasts with its relatively low 
status as a Presidency Paper. Combined with the huge range of areas and initiatives covered 
this does not encourage follow-up and limits the political value of the paper. 

The  lack  of  follow-up  to  both  exercises  somehow  undermines  the  usefulness  of  the  whole 
process. There is a need to take a more strategic approach: to limit the scope of the RWP but 
to be more ambitious in political terms, select a few PCD priorities and ensure that they are 
properly tackled. 

Joint meetings both at the level of Council working groups and at ministerial level to promote 
PCD throughout the EU are organised by almost all Presidencies. Similarly to the screening 

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exercise,  several  Member  States  find  that  the  status  of  joint  sessions  remains  unclear  and 
specific follow-up is seen as ad hoc. Germany considers that joint Council sessions have made 
considerable  progress,  yet  it  recognises  that  underlying  conflicts  between  internal  EU  and 
development policy objectives persist, and may remain. Sweden points to a lack of ownership 
in  non-development  Council  formations.  The  UK  indicates  that  the  joint  Council  sessions 
with Foreign and Defence Ministers have been useful but could be expanded also to include 
Trade,  Finance  and  Environment  Ministers.  Several  Member  States  stress  that  specific 
outcomes  are  still  too  dependent  on  the  EU  Presidency  of  the  day.  Many  Member  States 
suggest  that  the  role  of  the  Council’s  General  Secretariat  should  be  strengthened,  and 
interaction between different Council working groups should be intensified.  

The  informal  PCD  network  of  EU  Member  States  met  on  several  occasions,  to  ensure 
exchanges  between  the  Member  States  on  PCD  issues  and  to  give  advice  with  regard  to 
preparation of the PCD report.  

The  European  Parliament  (EP)  took  a  keener  interest  in  PCD  during  the  second  half  of  its 
term.  MEPs  asked  many  written  questions  on  specific  aspects  of  EU  policies  including 
migration,  trade  and  fisheries  and  their  impacts  on  developing  countries.  The  EP  did  not 
prepare an official reaction to the 2007 PCD Report. It adopted, though, on 17 June 2008 a 
resolution  on  policy  coherence  for  development  and  the  effects  of  the  EU’s  exploitation  of 
certain  biological  natural  resources  on  development  in  West  Africa.  Jointly  with  the  OECD 
and  the  Commission  the  EP  organised  a  conference  on  migration  and  development  in 
February 2009. 

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2.5. 

Partner Country Perspective 

Intensifying  the  dialogue  with  partner  countries  on  the  synergies  between  EU  policies  and 
development cooperation programmes was identified as an outstanding issue in the 2007 PCD 
report. The Joint Annual Reviews show that the Community has followed up on this. Member 
States, too, have intensified their dialogue with partner countries on  PCD issues.  In parallel 
developing  countries  are  showing  a  growing  interest  in  PCD  and  new  institutional 
arrangements  such  as  the  Africa-EU  partnership  are  increasingly  used  to  promote  PCD  by 
both side. 

2.5.1.  Cotonou Article 12 consultations 

The Cotonou Agreement, which links the EU to 79 countries in Africa, the Caribbean and the 
Pacific, is probably the only international agreement, with a specific PCD article. Article 12 
sets  up  a  consultation  mechanism  to  promote  the  coherence  of  Community  policies  which 
might  affect  the  interests  of  the  ACP  countries.  The  Community  must  inform  the  ACP 
countries in due time of its intentions, whenever possible in advance of the adoption of such 
decisions.  The  ACP  side  may  request  for  information  on  their  own  initiative.  Article  12 
provides that consultations are to be held promptly so that the concerns of the ACP countries 
can be taken into account before any final decision is made. After such consultation the ACP 
can  transmit  their  concerns  or  requests  for  amendment  in  writing.  The  first  formal 
consultation of this kind took place on 12 February 2009. 

The first formal PCD consultations with ACP countries 

The  first  formal  consultations  on  PCD  issues  under  Cotonou  Article  12  took  place  on  12 
February 2009 at a meeting of the Joint ACP-EU Subcommittee on Trade Cooperation at the 
request of the ACP side. The meeting was co-chaired by the Ambassador of Mauritius and a 
Director  from  DG  Trade.  The  ACP  Group  had  requested  information  on  five  Commission 
initiatives  dealing  with  the  use  of  pesticides,  nickels  substances,  fisheries  cold  chain 
requirements,  the  renewable  energy  directive  and  the  FLEGT  licensing  system.  The 
Commission  replied  to  concerns  expressed  by  the  ACP  countries  that  these  proposals  could 
have  significant  impacts  on  their  export  of  certain  products  to  the  EU  and  provided  further 
detailed explanations. The Commission reassured the ACP representatives that their concerns 
would be taken into account in the preparation of these measures or in their implementation.  

The ACP representative said that the ACP counties wanted to be involved as early as possible 
in the preparation of all measures that might affect their interests. They see a need for close 
cooperation between the ACP countries and the Commission, going beyond the already tight 
relationship that exists in certain areas. 

This request for formal consultations shows an increasing interest in coherence issues on the 
ACP side.. This interest is likely to grow as economic and political integration at the global 
level  continues  and  consequently  the  impact  of  EU  initiatives  on  developing  countries  will 
increase. 

There is therefore a clear need for a dialogue with ACP countries aimed at identifying those 
EU initiatives which might affect their development strategies most and working out the most 
appropriate  response/measures.  The  revision  of  the  Cotonou  Agreement  for  which  both  the 
EU  and  the  ACP  countries  are  keen  to  revisit  PCD  provisions,  will  provide  an  occasion  to 
discuss this and strengthen the consultation mechanism.  

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2.5.2.  PCD in EC cooperation programming and reporting mechanisms  

Following  the  introduction  of  a  PCD  section  in  Country  Strategy  Papers  in  2007,  the  first 
Joint  Annual  Reports  (JARs)  in  2008,  prepared  together  by  partner  countries  and  the 
European Commission, made reference to one of the 12 PCD areas on 136 occasions. Three 
areas  (trade,  climate  change  and  environment)  made  up  50%  of  the  total  –  with  trade 
accounting  for  25%  -  thus  highlighting  the  importance  of  these  aspects  for  the  ACP  states 
countries. Agriculture is the next most important issue, representing 11% of the cases with a 
number of sub-themes covered (sugar, cotton, banana…). Fisheries, migration, transport and 
security follow, with around 7% each. Other themes (research, energy, transport and the social 
dimension of globalisation) represent between 1% and 4% of the issues raised. The order of 
importance of the eight key themes is broadly the same across all regions. 

With regard to trade policy, the EPAs are a major element reported by more than 50% of the 
Delegations. EU Sanitary and Phyto-Sanitary (SPS) standards are the second most important 
aspect in relation to trade.  

As far as climate change and environment are concerned, the main issues raised are to do with 
forestry  management  and  protection  of  biodiversity.  The  Global  Climate  Change  Alliance16 
appears as well, as a key initiative for the future of small islands and some coastal countries. 

In  agriculture,  it  is  worth  noting  that  the  CAP  subsidies  are  only  referred  to  in  two  Joint 
Annual  Reports.  However  some  specific  agricultural  products,  relevant  to  a  number  of 
developing  countries,  are  identified  such  as:  sugar  (in  10  reports),  banana,  cotton,  beef  or 
cocoa. 

With  regard  to  fisheries,  the  partnership  agreements,  which  include  a  new  development 
dimension, are mentioned in six coastal countries' JAR.  

As  far  as  migration  is  concerned,  eight  countries  highlight  its  importance  for  development, 
with brain drain being seen as an acute issue, particularly in health sectors, in two countries 
from Austral Africa. 

Transport  policies  are  affecting  developing  countries  mainly  through  issues  related  to  air 
transport  (safety  standards)  as  reported  in  two  countries.  The  same  standards  are  however 
seen  in  two  other  countries  as  making  positive  contribution  to  safety  and  efficiency, 
minimising transport effects on the environment.  

Security policy issues are reported in eight countries and mainly related to European Security 
and Defence Policy (ESDP), in connection with international military interventions with EU 
support or leadership.  

Other policy areas (social dimension of globalisation, employment & decent work, research, 
energy, and information society) are only mentioned as PCD issues by a handful of countries.  

16 

See chapter on climate change of this report 

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2.5.3.  PCD in Member States' cooperation programming and reporting mechanisms 

Most  Member  States  have  intensified  their  dialogues  with  partner  countries  on  synergies 
between (EU) non-development policies and development cooperation programmes (see chart 
above17).  Sweden  has  developed  guidelines  for  drawing  up  bilateral  cooperation  strategies 
that clearly incorporate the PCD perspective. Irish embassies are to include policy coherence 
issues  in  their  analysis  of  the  political,  economic  and  development  situation  on  the  ground. 
The UK holds PCD discussion that involve around the thematic focus areas defined for DFID 
programmes:  fragility,  climate  change  and  economic  growth.  Member  States  with 
development  programmes  in  neighbouring  countries  seem  to  be  rather  sensitive  to  applying 
PCD principles to partner country dialogues.  

At  the  same  time  many  Member  States  are  still  in  the  process  of  developing  their  policy 
framework and procedures to reflect internationally accepted practice. In all, efforts appear to 
be  mainly  bilateral  and  rather  tentative  although  some  Member  States  have  specifically 
adapted their administrative rules and procedures.  

2.5.4.  The Africa-EU partnership as a new way to promote PCD 

The  Joint-Africa-EU  Strategy  (JAES)  adopted  in  December  2007  is  the  culmination  of  a 
process  of  deepening  Africa-EU  relations.  It  provides  a  comprehensive  framework  whereby 
subjects  of  common  interest  add  value  to  existing  cooperation  and  political  dialogue.  The 
JAES  goes  beyond  traditional  development  cooperation  by  moving  away  from  a  donor-
recipient relationship to a relationship in which mutual respect and political dialogue underpin 
a genuine and effective partnership to meet common challenges together.18 

The  JAES  provides  an  opportunity  to  bring  about  synergies  between  policies  and  avoid 
negative  impacts  of  policies  on  developing  countries  thanks  to  regular  dialogue  between  a 
range of stakeholders. The potential of the JAES to put Africa and development issues on the 
agenda of other EU policy areas is the focus of the third case study examined in this report. 

17 

18 

Chart  based  on  Member  States'  responses  to  a  dedicated  PCD  2009  questionnaire  prepared  by  the 
European Commission. 
European Commission Publication "Africa-Europe: the indispensable alliance", 2008. 

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2.6. 

Conclusion & Outstanding Issues  

The  EU  has  substantially  strengthened  its  approach  towards  PCD  over  the  years.  In  a  first 
phase  it  concentrated  on  the  commitments  for  PCD.  The  key  elements  were  the  2005 
Communication and Council conclusions setting out the commitments in the 12 policy areas 
and the EU Consensus on Development. The second phase is characterised mainly by efforts 
to fulfil these commitments, the production of the first EU PCD report and the sharpening of 
the mechanism to promote PCD such as IA and ISC, using the more effectively and raising 
awareness.  In  2008,  with  the  Staff  Working  Paper  on  PCD,  the  Commission  explored  the 
potential  for  development  of  four  EU  policy  areas:  climate  change  and  energy,  through  the 
lenses of biofuels production and consumption, migration and research. 

Member States, generally speaking, are positive about the progress achieved since 2007. They 
note that the EU Consensus on Development and successive Council conclusions have led to 
strengthening  of  procedures,  mechanisms  and  resources  that  will  be  used  to  meet  PCD 
commitments.  A  large  majority  of  Member  States  rates  progress  as  average,  good  or  even 
strong19. Progress at Member States level has been complemented by progress at EU level. 

The picture is not all rosy, though. Difficulties encountered at national level often spill over to 
the  EU  level  and  can  be  mutually  reinforcing..  Member  States  point  to  the  lack  of  political 
will  and  limited  priority  given  to  world  poverty  reduction  as  a  serious  hindrance  to  PCD 
progress.  Diverging  interests  can  make  it  difficult  at  times  to  ensure  consistent  Council 
messages on PCD. As the diagram illustrates, Member States assessments of EU performance 
differ greatly from one policy area to the other. EU Presidencies can play a lead role on PCD, 
but  their  efforts  are  necessarily  limited  to  their  term,  often  resulting  in  a  lack  of  continuity 
from  one  Presidency  to  the  other.  PCD  screening  and  joint  meetings  across  sectors  are 
important means to improve PCD within the EU, but so far there has been limited operational 
follow-up to such meetings.  

19 

Chart  based  on  Member  States'  responses  to  a  dedicated  PCD  2009  questionnaire  prepared  by  the 
European Commission 

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Based  on  this  groundwork  it  appears  that  a  more  strategic  approach  could  be  proposed. 
Reporting on PCD progress achieved in the 12 policy areas helped to raise awareness and to 
demonstrate  the  importance  of  the  broader  EU  policy  agenda  for  development.  The 
strengthening  of  the  PCD  instruments  was  necessary  to  better  harness  the  potential  of  EU 
policies  for  development.  But  to  make  real  progress  the  EU  needs  to  change  its  approach. 
Rather  than  monitoring  the  impact  of  all  policies  on  developing  countries  the  EU  could 
promote  PCD  more  effectively  through  a  more  focussed  approach.  The  EU  should  select 
some key development challenges, analyse how it can contribute to achieving them through 
the broad array of its policies and instruments, and ensure political mobilisation around these 
challenges.  

In this third phase the EU should also move towards a partnership approach to PCD. While 
the EU has made great efforts to better assess the impacts of its own initiatives on developing 
countries  with  a  view  to  bringing  them  into  line  with  development  objectives,  the  role  of 
developing  countries  in  these  processes  has  been  limited.  While  some  developing  countries 
play  an  active  role,  others  find  it  more  difficult  due  to  their  capacity  constraints.  The  EU 
should  therefore  support  these  countries  in  identifying  EU  policy  and  legislative  proposals 
that might affect them, assess the possible impacts and find ways to address their development 
concerns.  The  EU  and  developing  countries  could  for  instance  better  use  the  consultation 
mechanisms  provided  for  in  the  impact  assessment  guidelines,  the  Cotonou  Agreement  and 
possibly also the AU-EU Partnership and strengthen them if necessary. 

Member  States  have  also  made  progress  individually.  They  have  strengthened  their 
commitment to PCD, refined their institutional mechanisms to promote PCD and engaged in a 
deeper dialogue with society at large. Many Member States however are still struggling with 
limited  capacity  and  poor  awareness.  Sweden  points  out  that  analysis  and  evaluation  is  still 
the  least  developed  part  of  the  PCD  chain  of  work  -  as  specified  by  the  OECD  -  also  in 
Sweden.  There  is  a  great  continued  need  for  more  in-depth  analysis  of  the  complex  links 
between  different  policy  areas  and  their  impact  on  development.  Focussing  efforts  on  a 
limited number of issues, as Sweden and the UK have done, might prove more fruitful.  

Outstanding Issues 

•  The need for the Commission and the EU Member States to jointly agree on a few PCD 

priorities (based on this report) for the next 2-3 years. 

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•  A review of the informal PCD Work Programme that could consist of the above-mentioned 
priorities  and  the  screening  of  the  Commission's  annual  Legislative  Work  Programme 
(CLWP). 

•  Better  use  by  the  EU  and  developing  countries  of  consultation  mechanisms  to  promote 

PCD and to strengthen them when necessary 

•  Commission support for developing countries' efforts to identify EU initiatives that matter 
for  them  by  discussing  with  them  the  PCD  priorities  as  well  as  the  outcome  of  the 
screening of the CLWP. 

•  Continued efforts to improve awareness and understanding of PCD, particularly on the part 

of non-development ministries. 

•  The need for research, knowledge and information on the impact of policy (in) coherence / 

synergies to inform policy screening / negotiations and decisions. 

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3. 

POLICY AREAS 

3.1. 

Trade  

Quick Facts 

•  Global trade (in volume terms) is expected to fall by 2.8% in 2009.20  

•  The  IMF  expects  developing  economies  to  grow  by  3.25%  in  2009,  down  from  6.3%  in 

2008 and from 7.9 % in 2007.  

•  Africa’s share of world trade has fallen from 5% twenty years ago to less than 2% today.21  

•  Exports  from least-developed  countries (LDCs) are estimated to have increased by about 
16% in 2007. The expansion of merchandise exports was even stronger for LDCs than for 
the developing countries over the last seven years.  

3.1.1. 

Introduction  

This  report  is  written  in  the  midst  of  an  economic  crisis,  contracting  trade  and  falling 
investment.  Countries  that  are more  integrated into the  global  economy  and world trade are 
feeling the effect of the crisis more overtly than those that are less well integrated, but all are 
being  affected  by  falls  in  remittances  and  investment  flows.  As  the  global  demand  for 
commodities falls and their prices decline as a result, developing countries' export revenues 
are  expected  to  decrease  sharply  leading  to  deteriorating  external  balances  as  well  as  lower 
revenues. Developing countries which are net exporters of commodities will suffer the most 
from plummeting commodity  prices,  while  net importing countries of food, energy and raw 
materials  will  on  the  contrary  see  their  import  bills  reduced.  As  a  result,  according  to  the 
World  Bank,  developing  countries  will  face  a  financing  gap  of  $270  billion  to  $700  billion 
this year.22 

Even so, trade remains an important stimulus for growth, and helping to refuel trade with and 
between developing countries is in itself a key objective to support countries quick recovery 
from the crisis. 

While trade is not a guaranteed route to economic growth for developing countries, evidence 
suggests that trade and openness to the global economy play an important role in creating jobs 
and  prosperity  in  developing  countries.  No  country  has  successfully  developed  without 
engaging  more  closely  in  international  markets.  Supported  by  appropriate  flanking  policies 
within  coherent  national  development  strategies,  trade  stimulates  economic  growth  and 
thereby  helps  generate  resources  to  meet  the  objective  of  poverty  reduction  and  attain  the 
other Millennium Development Goals (MDGs).  

Developing countries play an increasingly important and active role in world trade. They look 
to  trade  as  a  vital  tool  in  their  development  efforts,  and  the  more  advanced  developing 

20 

21 
22 

EN 

International 
http://www.imf.org/external/pubs/ft/survey/so/2009/num012809a.htm 
European Commission publication, "Africa-Europe: The Indispensible alliance", 2008. 
COM (2009) 160 final, 8/04/2009 

Monetary 

Fund, 

01/28/2009, 

23 

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countries  are  becoming  more  and  more  important  actors  in  the  global  economy.  But  not  all 
developing  countries  have  been  equally  successful  in  taking  advantage  of  the  potential  of 
trade. 

Developing  countries  are  increasingly  prominent  in  the  World  Trade  Organization  (WTO) 
negotiations.  However,  they  are  a  highly  diverse  group  often  with  very  different  views  and 
concerns,  and  a  number  of  different  coalitions  among  groups  of  developing  countries  have 
emerged in all negotiating fora. Whilst there are many aspects of EU trade policy where the 
principles of policy coherence for development are of relevance, the above is a key issue to be 
taken  into  account  for  the  full  integration  of  developing  countries,  and  in  particular  LDCs, 
into the global economy, and for the full implementation of coherent policies. 

3.1.2.  Progress towards PCD Commitments 

Through  a  wide  range  of  measures  and  policy  initiatives,  the  EU  aims  to  ensure  that 
developing countries are able to benefit from access to its own markets and from the openness 
of  the  global  economy.  It  is  recognised  that  there  is  no  single  model  for  trade  and 
development but that making trade work for development means tailoring policies to different 
vulnerabilities and different potential strengths.  

As trade is an exclusive competence of the Community, few Member States report on steps 
they have taken to promote PCD in the area of trade at national level. In Finland and the UK, 
one minister is responsible for both development and trade.  

EU trade policy is multi-dimensional – multilateral, regional/bilateral and autonomous. Under 
each  of  these  dimensions,  it  includes  elements  that  respond  to  the  particular  needs  of 
developing countries. 

Examples can be found at all levels: at the multilateral level through the WTO negotiations, at 
the regional and bilateral level through the negotiation of trade agreements with countries or 
regions  such  as  the  Economic  Partnership  Agreements  (EPAs)  with  the  African,  Caribbean 
and  Pacific  (ACP)  countries  and  support  to  developing  countries'  own  regional  integration 
processes,  and  at  the  unilateral  or  autonomous  level  through  the  Generalised  System  of 
Preferences  (GSP).  In  parallel  to  efforts  directly  linked  to  trade  policy,  the  EU  is  also  very 
actively engaged in the provision of Aid for Trade (AfT) to developing countries to support 
them in tackling the challenges of trade integration at both regional and global levels.  

3.1.2.1.  Multilateral negotiations 

•  Doha Development Agenda 

The EU has been a strong supporter of attempts to ensure that the Doha Development Agenda 
(DDA) reflects the realities and concerns of developing countries. This advocacy has helped 
ensure  that  the  Doha  negotiations  include  important  flexibilities  to  cater  for  particular 
capacities and needs of different developing countries.  

For  example  LDCs  will  be  free  from  any  market  opening  obligations  in  agriculture,  Non 
Agricultural  Market  Access  (NAMA)  and  services,  and  other  poorer  and  more  vulnerable 
developing countries will also be expected to provide only very limited commitments. These 
countries,  however,  stand  to  benefit  from  the  market  opening  offered  by  others.  At  Hong 
Kong in 2005, it was agreed that developed countries, and developing countries in a position 

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to  do  so,  should  provide  duty-free  and  quota-free  (DFQF)  access  to  all  products  from  all 
LDCs by 2008, or no later than the start of the DDA implementation period. As things stand, 
some developed countries – the EU, Australia, New Zealand - have already implemented the 
goal  of  full  DFQF  access  (or  are  on  the  way  to  it);  others  (e.g.  Canada  and  Japan)  have 
excluded a few sensitive products, but meet the interim 97% target set in Hong Kong while a 
few  others  (notably  the  US)  still  do  not  reach  97%  coverage  and/or  exclude  certain  LDCs. 
India has introduced an expanded DFQF system for LDCs since mid 2008, while China has 
increased  the  number  of  tariff  lines  on  which  it  grants  duty-free  treatment  to  a  total  of  30 
LDCs. Brazil has repeatedly announced its intention to improve its market access for LDCs 
but no concrete measures have been taken so far.  

Important progress was made in the July 2008 Geneva Ministerial, and tentative compromises 
were  found  on  a  wide  number  of  issues.  The  new  versions  of  the  negotiating  texts  in 
Agriculture  and  NAMA,  as  issued  in  December  2008,  reflect  much  of  this  progress. 
Nevertheless,  further  breakthrough  is  required  to  move  forward  from  this  point  and 
negotiations  are  ongoing.  It  will  be  particularly  important  to  broker  a  compromise  on 
liberalisation  initiatives  for  non-agricultural  sectors,  and  cotton  and  agriculture,  including 
such  aspects  as  the  Special  Safeguard  Mechanism  (SSM).  Progress  on  Trade-related 
Intellectual Property Rights (TRIPS) issues is also needed. To that end, a coalition of over two 
thirds  (about  110)  of  all  WTO  members,  including  the  EU,  as  well  as  many  developing 
countries  and  LDCs,  submitted  in  July  2008  a  proposal  to  move  forward  the  issues  of 
Geographical  Indications  (GI)  (establishment  of  a  multilateral  GI  Register  and  extension  of 
the  additional  level  of  protection  for  wines  and  spirits  GIs  to  other  GI  products)  and  issues 
linked to the disclosure of origin in patent applications (see below). 

Concluding the DDA is particularly important in the context of the current economic crisis, 
because  it  is  an  effective  means  both  of  preventing  protectionism  and  of  boosting  global 
demand for products from developing countries. Both of these are, of course, fundamental for 
many developing countries, for whom the trade component is an essential element of growth 
and poverty eradication strategies. 

•  Trade-related Intellectual Property Rights (TRIPS) 

The  PCD  challenge  in  relation  to  TRIPS  lies  in  ensuring  the  use  of  Intellectual  Property 
Rights (IPRs) to contribute optimally to development. One issue that has attracted attention in 
recent  years  is  that  of  access  to  medicines.  The  TRIPS  Agreement  provides  flexibilities  to 
WTO Members in implementing its provisions in order for them to get access to affordable 
medicines. TRIPS also require developed countries to provide incentives to their companies to 
encourage technology transfer to least-developed country members to enable them to create a 
viable technological base. Furthermore, possibilities exist in the Agreement for technical and 
financial  cooperation  on  mutually-agreed  terms  between  developed  countries  and  the 
developing world.  

The EC has been at the forefront of the debate on TRIPS and access to medicines. It played an 
active role in the WTO negotiations leading to the waiver decision of 30 August 2003 which 
temporarily allowed WTO Members to export patented medicines to third countries with no 
manufacturing capacity in the pharmaceutical sector, by making use of compulsory licences.  

The  EU  also  plays  an  important  role  in  the  Intergovernmental  Working  Group  on  Public 
Health,  Innovation  and  Intellectual  Property  (IGWG)  of  the  World  Health  Organization, 

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developing a strategy to improve medicine availability, affordability, acceptability and access 
for those in need, particularly for the poor in developing countries. 

The EC was also active in WTO negotiations leading, in December 2008, to the amendments 
of the TRIPS Agreement in order to transform the waiver decision into a permanent solution. 
Moreover,  the  EC  has  taken  steps  to  implement  the  waiver  decision  into  Community 
legislation.23  

In  the  WTO,  however,  limited  progress  has  been  made  in  ratifying  the  TRIPS  amendment. 
Currently  48  WTO  Members  (including  the  27  EU  Member  States)  have  ratified  the 
amendment,  which  means  the  required  2/3  threshold  has  not  been  reached  and  extension  of 
the  current  deadline  of  31  December  2009  might  be  required.  This  waiver  decision  will 
continue to be valid until the amendment enters into force.  

The amendment has been used once; Rwanda as a first country has notified to the WTO its 
intention to use the mechanism and import HIV/AIDS drugs from Canada (see further MDG6 
case study). No request has been made to the EU so far. 

Another  area  of  PCD  relevance  in  relation  to  TRIPS  is  genetic  resources  and  traditional 
knowledge. In 2004 the EC submitted a detailed proposal on disclosure of origin to the World 
Intellectual  Property  Organisation  (WIPO).  This  proposal  sets  out  a  way  to  include  in 
international  patent  law  a  binding  requirement  to  disclose  the  origin  or  source  of  genetic 
resources and associated traditional knowledge in patent applications. If adopted, this would 
allow  States  to  keep  track,  at  global  level,  of  all  patent  applications  with  regard  to  genetic 
resources and thereby enhance transparency about uses of genetic resources that have left the 
providing country. The EU has also suggested amending the TRIPS Agreement to include an 
equivalent  mandatory  requirement.  As  a  result,  patent  applications  would  not  be  processed 
without completion of the disclosure requirement.  

IPR provisions may be included into Free Trade Agreements only in full coherence with the 
Doha  Declaration.  For  example,  the  Doha  Declaration  on  the  TRIPS  Agreement  and  Public 
Health  reaffirms  flexibility  of  TRIPS  to  ensure  better  access  to  essential  medicines.  In  the 
negotiations on the CARIFORUM EPA, Articles 139.2 and 147.2 make it clear that nothing in 
the  agreement  should  be  construed  in  such  a  way  as  to  impair  the  capacity  of  the 
CARIFORUM States to promote access to medicines, and that the provisions on patents must 
be  implemented  and  interpreted  in  full  respect  of  the  Doha  Declaration  on  the  TRIPS 
Agreement and Public Health, including the flexibilities contained therein and the Decision of 
the WTO General Council of 30 August 2003. Moreover, it is important to mention that the 
EPAs  are  expected  to  contribute  to  other  initiatives  that  are  important  to  secure  access  to 
affordable  medicines,  such  as  development  of  local  production  and  innovation  capacity  or 
technology 
locally  produced  pharmaceutical  products  meet 
to  ensure 
transfer 
internationally agreed standards.  

that 

Trade in generic drugs between third countries through Europe 

The  interception  of  shipments  of  medicines  at  the  end  of  2008  to  developing  countries  in 
Europe  resulted  in  a  debate  on  the  coherence  of  EU  legislation  on  customs  enforcement  of 
intellectual property rights with one of the main objectives of European development policy, 

23 

Through Regulation 816/2006 of 17 May 2006 

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i.e. to improve access to pharmaceutical products for the poorest populations. In this context it 
is important to recall that the Commission's policy on facilitating access to medicines has not 
changed.  The  Commission  remains  attentive  to  apply  what  is  stated  in  Article  178  of  the 
Treaty and its commitments on Policy Coherence for Development as stated in the European 
Consensus  on  Development.  The  Commission  is,  together  with  Member  States,  further 
analysing these cases. 

3.1.2.2.  Regional and bilateral negotiations 

The EU has continued to have an important negotiating agenda for bilateral and regional trade 
agreements  with  a  wide  range  of  individual  countries  or  groups  of  countries.  The  EU  takes 
account  of  the  development  dimension  by  putting  at  the  core  of  these  negotiations  an 
emphasis  on  sustainable  development,  addressing  also  social  and  environmental  issues,  and 
broader  market opening, and by  offering improved preferential  access  to  the  EU  market  for 
products  originating  in  developing  countries,  including  in  some  instances  -  like  the  EPA 
negotiations  -  through  asymmetrical  schedules  for  respective  tariff  dismantling.  Moreover, 
these  negotiations  are  generally  accompanied  by  AfT,  including  Trade-related  Technical 
Assistance, to support developing countries not only during the negotiating phase but also in 
taking fuller advantage of the resulting benefits of agreements. 

EPA  negotiations  with  ACP  countries  have  been  a  key  focus  of  ACP  EU  efforts  over  2007 
and 2008, and a major result was the signing of the Caribbean EPA, the very first of its kind 
in the world (see EPA section). 

The EU is also working to further reinforce its trade relations with Latin America and Asia. In 
this  context,  it  is  seeking  to  support  the  partners'  development  process  via  broader  market 
opening in the regions and greater export possibilities towards the EU.  

In  2007,  the  EU  has  started  negotiations  for  Association  Agreements  with  the  Andean 
Community24  and  Central  America,  and  for  Free  Trade  Agreements  with  India  and  the 
Association of Southeast Asian Nations (ASEAN). For the partner countries, such agreements 
would not only offer increased access to the EU market for goods through the dismantling of 
tariffs, they would also aim at addressing behind-the-border issues, such as non-tariff barriers, 
sanitary  and  phyto-sanitary  issues,  or  technical  regulations,  with  a  view  to  promoting  third 
country  exports  to  the  EU.  They  would  also  foresee  the  progressive  and  reciprocal 
liberalisation  of  establishment  and  trade  in  services,  and  include  provisions  on  public 
procurement  and  capital  movement.  Lastly,  provisions  on  improved  transparency  in 
regulation, good governance, the rule of law, and sustainable development would contribute 
to realising the respective third countries' export potential to the EU.  

Sustainability  Impact  Assessments  (SIAs)  have  been/are  being  carried  out  by  independent 
consultants  in  parallel  to  the  negotiations  assessing  each  trade  Agreement's  potential 
economic, social and environmental impact whilst suggesting possible measures to prevent or 
mitigate the negative and enhance the positive impact. The Commission's own views on the 
identified impacts and on the recommendations made by the independent consultants are set 
out in a Commission SIA position paper both in the context of the EC's negotiating position 
and by way of measures flanking the future Agreements. 

24 

In  January  2009,  the  Parties  agreed  to  change  the  format  of  the  negotiations  to  a  Trade  Agreement 
between the EU on one side and those Andean countries willing to join the negotiations on the other 
side. The negotiations have been followed by Colombia, Ecuador and Peru. 

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•  Economic Partnership Agreements 

EPAs replace the previous market access regime for ACP countries and importantly involve a 
much  more  comprehensive  approach  to  helping  them  diversify  their  economies,  create  jobs 
and  contribute  to  their  economic  development.  In  particular,  EPAs  are  intended  to  support 
regional  integration,  the  creation  of  larger  regional  markets  and  economies  of  scale,  by 
aligning liberalisation schemes and harmonising important trade-related rules across countries 
within  a  region.25  EPAs  are  trade  agreements  at  the  service  of  development.  Removing 
barriers  to  trade,  supporting  regional  markets,  ensuring  ACP  countries  and  regions  take  on 
commitments commensurate  with  their  development  needs  and  have  adequate  time  to  make 
reforms,  sustaining  trade  facilitation,  providing  for  wide-ranging  sustainable  development 
clauses,  safeguards  to  protect  infant  industry  and  helping  the  ACP  countries  meet 
international standards are all development dimensions of the EPAs. 

The  objectives  of  the  EU  and  ACP  countries  are  to  agree  comprehensive  trade  and 
development deals - as foreseen in the Cotonou Agreement signed in 2000. The deadline was 
31  December  2007,  when  trade  preferences  granted  by  the  EU  to  ACP  countries  under  the 
Cotonou  Agreement  expired.  However,  by  autumn  2007  it  became  clear  that  EPA 
negotiations  in  Africa  and  the  Pacific  would  not  have  been  concluded  in  time.  The  EU  and 
African  and  Pacific  countries  and  regions  therefore  decided  to  initial  “interim  agreements” 
that complied with WTO rules covering trade in goods only. This was aimed at securing ACP 
access  to  EU  markets  and  allowed  wider  EPA  negotiations  to  continue  without  any  legal 
challenge  from  other  WTO  members.  At  the end  of  2007,  interim  EPAs  had  been  initialled 
with a number of ACP regions and countries in Africa and the Pacific. With the Caribbean, a 
comprehensive  EPA  was  initialled  and  eventually  signed  on  15  October  2008.  Signature  of 
interim EPAs took place with Ivory Coast (26 November 2008), Central Africa – Cameroon 
(15  January  2009)  and  members  of  the  SADC  EPA  group  (Botswana,  Lesotho,  Swaziland, 
Mozambique) (June 2009). The signing of all other interim EPAs is expected later in 2009. 
Negotiations are ongoing with all African regions and the Pacific, with the aim of concluding 
full-fledged EPAs in 2009.  

The CARIFORUM-EC Economic Partnership Agreement 

On  16  December  2007  the  European  Commission  initialled  an  Economic  Partnership 
Agreement with Antigua and Barbuda, Bahamas, Barbados, Belize, Dominica, the Dominican 
Republic,  Grenada,  Guyana,  Haiti,  Jamaica,  Saint  Lucia,  Saint  Vincent  and  the  Grenadines, 
Saint  Christopher  and  Nevis,  Suriname,  and  Trinidad  and  Tobago  (the  CARIFORUM 
countries).  In  signing  an  EPA,  the  Caribbean  and  Europe  aim  to  build  on  their  long-
established economic ties to foster growth, jobs and development in the Caribbean. The EPA 
was signed in the Caribbean on 15 October 200826. The EU pledged to work with the Haitian 
government  and  other  Caribbean  partners  to  ensure  that  the  conditions  for  Haiti  to  join  the 
EPA are in place soon. 

What is in the EPA? 

25 

26 

COM (2008) 604 final/2, 06.10.2008, Communication on Regional integration for development in ACP 
countries.  
Official Journal of the European Union, L 289, 30.10.2008 

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The CARIFORUM-EC EPA is a pioneering agreement in the international trading system. It 
is the first  genuinely comprehensive North-South trade agreement that promotes sustainable 
development,  builds  a  regional  market  among  developing  countries  and  helps  eliminate 
poverty.  It  will  put  the  Caribbean  on  the  map  as  an  expanding  market  where  traders  and 
investors can find opportunities for growth and security for their investments. 

At the centre of the EPA is the creation of an integrated regional market in the Caribbean. It 
promotes the progressive harmonisation of the external tariffs of the CARIFORUM countries 
building on the liberalisation of the flow of goods between the economies of the Caribbean. 
This  will  help  local  businesses  create  economies  of  scale  and  make  the  region  much  more 
attractive as a market for investment and trade. 
The  EPA  removes  all  tariffs  and  quotas  on  Caribbean  exports  to  the  EU  immediately.  The 
only exceptions are sugar and rice, although rice will be liberalised as from 2010.  
The EU has also agreed to open up new markets for Caribbean companies and professionals 
to  offer  services  in  the  EU  and  for  young  Caribbean  professionals  to  gain  EU  work 
experience. These go far beyond anything offered by Europe in any other trade agreement. 
On the Caribbean side there is a gradual opening of markets over a period of 25 years, which 
will eventually mean more competitive prices for consumers and businesses. 
Caribbean  countries  will  now  benefit  from  improved  'rules  of  origin'  that  will  support  the 
development of industries that import materials to make goods for onward export to Europe.  
Beyond  the  165  million  Euro  European  Development  Fund  regional  programme  for  the 
Caribbean,  a  development  cooperation  declaration  in  the  EPA  commits  the  EU  to  using  its 
Aid for Trade financial support to help Caribbean countries implement the EPA. 
Since  1  January  2008,  on  the  basis  of  the  EU  Market  Access  Regulation27,  all  goods 
originating from an ACP country or region that initialled an (interim) EPA have DFQF access 
to EU markets, except for rice and sugar for which full liberalisation is being phased in. The 
Regulation also includes improved rules of origin in the areas of textiles and agricultural and 
fishery products. 

The awareness that EPAs bring about (PCD) challenges and opportunities requires addressing 
these and finding solutions. Flexibility allows room to cater for concerns raised. 

As ACP countries lower custom duties on EU imports, their tariff revenue will decrease, all 
else being equal. This has raised concerns that the EPA process could undermine government 
finances.  However,  the  issue  can  be  managed  and  EPAs  will  be  supported  by  measures  to 
reduce and offset net fiscal impact in the context of overall fiscal reform to be undertaken by 
the  ACP  countries.  First,  EPA  design  prevents  any  dramatic  changes  in  revenue:  as 
liberalisation is gradual, initial revenue loss will be very small, and the overall impact will be 
spread over many years. Products earmarked for fast tariff elimination are mostly those where 
the current tariff level is already very low. Second, EPAs aim to promote growth, investment 
and  diversification  in  ACP  production  as  well  as  regional  integration  and  economic 
cooperation.  This  means  stimulating  economic  growth,  value  added  processing  and  new 
investment,  all  of  which  offsets  fiscal  loss  by  expanding  the  domestic  tax  base.  As  our 
primary  concern  is  overall  government  revenue  and  not  simply  tariff  revenue,  it  is  vital  to 
look at the net overall fiscal impact and not just import tariff revenues. The EU is committed 
to contributing to the absorption of net fiscal impact of EPAs in the context of fiscal reforms: 
experience  shows  that  internal  economic  reform  and  changes  to  tax  systems  can  offset 
revenue  losses  connected  to  tariff  elimination.  Revenue  from  tariffs  can  be  successfully 

27 

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replaced by sales, excise and other revenue taxes that do not discriminate between domestic 
and  imported  goods;  furthermore,  moving  away  from  dependency  on  tariffs  is  a  sound 
economic policy decision. Relying on tariffs for revenue strangles economic growth by taxing 
essential inputs and at best provides an unpredictable and volatile source of revenue. 

Gender has not been a separate subject in the EPA negotiations. However, it is integrated into 
various  negotiation  areas  such  as  those  on  labour  standards  and  rules  of  origin  where 
improvements have been achieved for sectors where to a large degree women are employed 
(agriculture, fisheries, textiles). It is also considered when agreeing on flexibilities that allow 
for  safeguarding  food  security  or  infant  industries.  Monitoring  the  impact  of  trade 
liberalisation on the gender dimension is considered an important element due to the potential 
effects of trade liberalisation on women's lives. 

In  more  general  terms,  monitoring  is  set  to  become  an  important  part  of  the  EPA 
implementation  process.  Its  precise  shape  and  form  will  be  decided  by  the  joint  institutions 
provided  for  by  the  agreements.  The  CARIFORUM  EPA,  for  instance,  charges  the  Joint 
Council  with  the  task  of  monitoring,  while  providing  extensively  for  the  participation  of 
parliamentarians and civil society in the monitoring process. According to the specific needs 
of each region, the joint institutions will decide what monitoring is to consist of, how it is to 
be  carried  out  and  finally  draw  conclusions  from  that  exercise.  EPAs  call  for  a  flexible 
monitoring arrangement covering the bilateral and regional relationships (tariffs, trade flows, 
regional  exchanges)  but  also  taking  into  account  the  enabling  environment  in  which  the 
agreement is operation (domestic politics and the world economic trading situation).  

The  EU  provides  for  substantial  financial  support  for  regional  integration  and  EPA 
implementation.  The  10th  European  Development  Fund  (EDF)  provides  funding  adapted  to 
ACP  regional  and  country-specific  needs,  and  additional  funding  is  earmarked  for  the 
implementation of EPAs and necessary structural and transitional changes, including in terms 
of infrastructure and customs (e.g. support to customs reform). ACP countries are also major 
beneficiaries of EU assistance to the wider AfT agenda. 

Specifically,  the  EU  is  working  with  the  ACP  countries  and  regions  to  set  up  so  called 
regional Aid for Trade packages. The role of these packages is to support the ACP countries’ 
regional  integration  agendas  by  providing  a  coordinated  and  increased  EU  (i.e.  European 
Community and EU Member States) financial response to needs and priorities expressed by 
the ACP countries and regions, including for implementation of EPAs.  

The signing of the 10th EDF Regional Indicative Programmes (RIPs) in November 2008 can 
be  seen  as  one  milestone  in  the  work  to  establish  the  packages.  Together  with  the 
Commission, the ACP regional organisations have prepared the 10th EDF Regional Strategy 
Papers  (RSPs),  embedding  the  regional  integration  visions  of  the  ACP  countries,  as  well  as 
the RIPs, constituting the main EC support to these from 2008 to 2013. The 10th EDF regional 
programmes are a basis for the EU support for regional AfT packages, although this support is 
yet  to  be  completed  by  EU  Member  States.  With  €1.78  billion  being  allocated  to  regional 
integration of ACP countries under the 10th EDF, the financial envelope has almost doubled 
compared  to  the  previous  period  of  2000-2007,  reflecting  the  EU-ACP  consensus  on  the 
importance of regional issues for development.  

3.1.2.3.  Autonomous regimes 

•  Generalised System of Preferences (GSP) 

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The GSP is an autonomous trade arrangement through which the EU provides non-reciprocal 
preferential  access  to  the  EU  market  to  17628  developing  countries  and  territories  on  over 
6200 tariff lines. It includes the standard GSP regime, the special incentive arrangement for 
sustainable development and good governance (GSP+), and the Everything But Arms (EBA) 
initiative for LDCs.  

The  primary  objective  of  the  GSP  is  to  contribute  to  the  reduction  of  poverty  and  the 
promotion  of  sustainable  development  and  good  governance.  Tariff  preferences  on  the  EU 
market  enable  developing  countries  to  participate  more  fully  in  international  trade  and 
generate  additional  export  revenue  to  support  implementation  of  their  own  sustainable 
development and poverty reduction policy strategies.  

The EU’s GSP is updated and adjusted to the changing environment of the multilateral trading 
system, on a regular basis, over a ten-year. The first GSP scheme of the present cycle covered 
the  period  2006-2008.  The  current  scheme  entered  into  force  on  1  January  2009  and  will 
apply until the end of 2011. The new GSP Regulation (2009-2011) ensures continuity of the 
guiding principles for the GSP and was updated only in order to facilitate the application of 
the  scheme.29  This  ensures  stability  and  transparency  for  beneficiary  countries,  users  and 
economic operators. 

The  GSP+  scheme30  offers  additional  preferences  to  vulnerable  developing  countries  which 
have ratified and effectively implemented 27 specified international conventions in the fields 
of human rights, core labour standards, sustainable development and good governance. Under 
the current (2009-2011) GSP Regulation31, 16 beneficiary countries32 received the additional 
preferences  offered  under  the  GSP+  incentive  arrangement.  For  countries  that  did  not  meet 
the  GSP+  qualifying  criteria  in  2008,  the  new  Regulation  provides  for  an  additional 
opportunity for applications in mid-2010, to receive benefits from July 2010. This is another 
advantage  under  the  new  GSP  Regulation,  so  that  potential  applicants who  did  not  meet  all 
the criteria in 2008 are not obliged to wait three years before being able to re-apply.  

The special arrangement for the least-developed countries (Everything But Arms) grants duty 
free access to the Community market for products originating in the least-developed countries 
as recognised and classified by the UN. It gives to LDCs duty-free access to the EU for all 
products, except arms, ammunition and 40 tariff agricultural lines, corresponding to rice and 
sugar, which will be completely liberalised in September and October 2009 respectively.  

28 

29 

30 

31 
32 

Myanmar  and  Belarus  remain  temporarily  withdrawn  from  GSP  preferences;  Moldova  was  already 
removed from the beneficiary list at the same time as the EU granted it more far-reaching autonomous 
preferences under a separate legal instrument in March 2008.  
The  new  GSP  Regulation  provides  for:  an  update  of  the  wording  of  the  GSP  Regulation,  a  technical 
review of the list of graduated countries, an additional opportunity for GSP+ applications in mid-2010, 
adaptation  of  GSP  provisions  in  accordance  with  other  trade  arrangements  concluded  with  GSP 
beneficiaries and adaptation of the description of tariff headings covered by the GSP in accordance with 
the present tariff nomenclature Annex II. 
GSP+ provides for suspension of ad valorem duties on all products (sensitive and non-sensitive) listed 
in Annex II of the GSP Regulation. In 2009 there are 6331 lines covered under GSP+ 
Council Regulation (EC) No 732/2008 
Bolivia,  Colombia,  Costa  Rica,  Georgia,  Guatemala,  Honduras,  Mongolia,  Ecuador,  Nicaragua,  Peru, 
Venezuela, El Salvador, Sri Lanka, Armenia, Azerbaijan and Paraguay. Venezuela has been removed 
from  the  list  of  GSP+  beneficiaries  by  Commission  Decision  2009/454/EC  of  11  June  2009.  For  the 
period 2006-2008, the GSP+ beneficiary countries were the same as mentioned above except Armenia, 
Azerbaijan and Paraguay. Panama was a GSP+ beneficiary during 2006-2008. 

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•  Rules of origin 

Rules  of  origin  are  used  to  identify  the  country  of  origin  of  a  product  for  the  purpose  of 
international trade. They make it possible to trace a product back to a specific country, so as 
to apply relevant trade treatments to that product, including duties and other trade restrictions. 
Preferential  rules  of  origin  define  when  a  product  can  be  considered  as  wholly  obtained  or 
sufficiently transformed in a country so as to qualify for a tariff preference as agreed in a free 
trade agreement or as set in unilateral preferences.  

The  Community  applies  very  similar  preferential  rules  of  origin  when  granting  autonomous 
preferences  (such  as  the  GSP  and  the  Autonomous  Trade  Measures)  as  well  as  in  the  EPA 
Market Access Regulation and in the framework of preferential trade agreements. 

The  Commission  is  now  engaged  in  reviewing  EU  preferential  rules  of  origin,  to  be 
implemented  first  and  foremost  within  the  GSP  system  but  then  to  be  extended  to  other 
preferential  trade  arrangements.  The  first  proposal  of  the  Commission  was  presented  to  the 
Customs Code Committee in October 2007. As a result of discussions in the Committee, the 
Commission  prepared  a  revised  proposal,  including  a  product-by-product  approach,  the 
possibility of  cumulation within and between regions (even between LDCs and non-LDCs), 
and the replacement of certificates issued by public authorities with statements on origin made 
out by registered exporters. The new proposal is now being discussed within the Custom Code 
Committee and should enter into force in 2010. 

3.1.2.4.  Aid for Trade  

The EU is one of the leading providers of AfT. On 15 October 2007, the EU Council adopted 
an EU AfT Strategy aimed at supporting developing countries integrate into world trade. The 
strategy  is  a  joint  EU  policy  initiative,  providing  for  a  double  and  complementary  focus  on 
more resources to AfT and better impact on development objectives, especially with a view to 
poverty reduction. The EU AfT Strategy is articulated around the following key activities: (i) 
scaling-up  total  AfT  in  general  as  well  as  increasing  the  specific  funding  of  Trade  Related 
Assistance (TRA) to € 2 billion annually by  2010, as promised by the EU in 2005 (€1 billion 
from EC, €1 billion from EU Me mber States); (ii) enhancing the impact and pro-poor focus of 
EU AfT; (iii) increasing EU-wide and Member States’ donors capacity in line with globally 
agreed aid effectiveness principles; (iv) supporting the ACP regional integration process; and 
(v)  ensuring  effective  monitoring  and  reporting  to  sustain  the  process  of  implementing 
commitments. In terms of volumes, the latest EU AfT monitoring report shows that the EU as 
a whole is very near to reaching its TRA target, with the EC having already surpassed it. Total 
EU Aid for Trade, which includes support to economic infrastructure and productive sectors, 
remained high at € 7.17 billion. 

Member States are very supportive of the Aid for Trade agenda. In fact, most Member States 
regard the AfT initiative as their main driver for promoting PCD in the area of trade. Aid for 
Trade  is  seen  as  a  win-win  situation,  as  national  interests  are  not  at  stake.  On  the  contrary 
companies and expertise can be involved in the areas where there is added value.  

Portugal  has  supported  capacity-building  initiatives  to  strengthen  human  and  institutional 
resources  for  international  trade  and  investment,  namely  in  the  area  of  port  training, 
negotiation  of  international  investment  agreements  and  investment  for  small  and  medium-
sized enterprises in lusophone countries. 

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Other  drivers  for  promoting  PCD  mentioned  are  the  Enhanced  Integrated  Framework  for 
Trade-Related Technical Assistance to LDCs, which has opportunities to foster the provision 
of coherent Aid for Trade from major agencies and bilateral donors to the actively involved 
partner countries.  

In their response to the PCD questionnaire, Member States indicate that they face difficulties 
in  terms  of  promoting  policy  synergies  if  national  products  compete  with  partner  country 
products. 

Furthermore,  they  consider  it  a  challenge  to  implement  coherent  strategies  due  to  lack  of 
sufficient  government  staffing  and  funding  for  deeper  research,  which  is  needed  in  order  to 
assess the degree of development-friendliness of trade policy. Coherent policy requires a great 
amount  of  (human)  resources  and  expertise  from  different  units.  Also,  different  units  have 
different objectives and an additional difficulty is that trade policy is an EU competence and 
development policy is a national competence. 

Another difficulty Member States describe is the low priority that is given to trade as a tool 
for  development  by  both  donor  and  partner  countries,  i.e.  in  cooperation  strategies  and 
poverty  reduction  strategies.  This  constitutes  a  challenge  when  donors  want  to  improve 
coherence between trade and development. Member States report that a better identification of 
capacity-building needs in order to take better advantage of possibilities that arise from trade 
agreements is essential.  

Limited resources, experience and PCD awareness in ministries dealing with trade are other 
challenges encountered in promoting synergies. 

Sanitary and Phyto-Sanitary Standards (SPS) 

Sanitary  and  Phyto-Sanitary  Standards  (SPS)  serve  to  ensure  that  consumers  have  good 
quality and safe products for consumption. Whilst they ensure the necessary degrees of health 
and  safety  standards,  adhering  to  them  may  represent  challenges  for  developing  countries. 
The  EC  supports  developing  countries  with  a  range  of  programmes  to  strengthen  their 
capacities to ensure compatibility with international standards.  

During  a  visit  to  Addis  Abeba  in  April  2009  the  EU  Health  Commissioner  launched  a  new 
initiative "Better Training for Safer Food in Africa - BTSF-Africa." Through BTSF over the 
next  two  year  EUR  10  million  will  be  used  to  fund  capacity-building  activities.  The  key 
objective  is  to  support  food  safety  mainly  by  the  transfer  of  technical  expertise  and  policy 
advice in areas of food safety and quality across Africa. Within the context of the Africa EU 
Partnership on Regional Integration, Trade and Infrastructure, the creation of a platform is in 
process to share information and to enhance participation of African countries in EU standard 
setting processes. 

Another  relevant  programme  is  the  "Programme  PIP":  Quality  and  Conformity  -  Fruits  and 
Vegetables33 financed for a total of EUR38.8 million. The Programme aims at improving the 
capacity  of  the  ACP  horticulture  sector  to  comply  with  SPS  regulations  in  order  (i)  to 
maintain the market share of ACP products in European imports of fruits and vegetables and 
as a result (ii) to increase the role of horticulture in poverty alleviation in ACP countries.  

33 

Programme 
Initiative 
Pacifique.http://www.coleacp.org/fr/pip 

Pesticides 

du  Comité 

de  Liaison  Europe-Afrique-  Caraïbes-

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An  evaluation  concludes  that  the  first  phase  of  the  programme  was  very  successful:  (i)  the 
global objective was achieved overall: the relevant market shares were stable between 2001 
and  2006,  with  export  growing  in  absolute  terms,  (ii)  90%  of  ACP  horticultural  export 
companies in 28 ACP states were supported, (iii) 100 000 small family farms have benefited 
from  the  programme  and  (iv)  80%  of  the  programme’s  expertise  is  now  local  (from  ACP) 
with 166 local consultants who received capacity-building support. 

In Kenya, PIP covered a particularly wide range of activities and had a significant impact: it 
focused on (i) raising awareness about EU legal and commercial food safety requirements, (ii) 
training staff of private companies in the various aspects of food safety and traceability (more 
than thirty companies signed a memorandum of agreement), and (iii) building the capacity of 
support services to the horticultural export sector.  

However,  capacity  to  comply  with  European  regulatory  and,  in  particular,  commercial 
requirements, needs to be maintained and updated. A second phase of the programme is being 
prepared to be financed under the 10th EDF for EUR 33 million. 

Whilst most Aid for Trade is provided at national level, increasing attention is being paid to 
financing regional integration (see for example the section on EPAs). For example, in 2007, 
the EC and the European Investment Bank (EIB) launched the EU-Africa Infrastructure Trust 
Fund (ITF) with a specific attention for projects with a clear regional dimension, to which 12 
EU  Member  States  and  the  EC  so  far  contributed  €  150  million.  Until  now,  the  ITF  has 
approved  -  or  cleared  in  principle  -  an  amount  of  €  80  million  in  grant  contributions  to 
different projects, leveraging loans from EU financiers of between €350 and 430 million, and 
attracting additional financing from outside the EU of approximately €650 million. 

Finland: Import Policy Strategy, Fall, 2008, and Aid For Trade Action Plan (2008-2011)  

The Import Policy Strategy adopted in 2008 is the result of an integrated position taken by the 
Finnish Government that combines trade and development objectives. This approach helps to 
ensure  that  development  objectives  are  adhered  to  throughout  all  external  relations. 
Furthermore,  the  2008  Import  Policy  Strategy  emphasises  that  Finland,  and  the  EU,  should 
increase  imports  from  developing  countries,  in  order  to  ensure  coherence  with  development 
objectives. Finland has taken a position of increasing access to markets in both developed and 
developing  countries  by  reducing  trade  barriers  globally.  The  reason  for  advocating  this 
overall reduction of trade barriers is based upon the understanding that trade distortions have 
an  overall  negative  effect  on  development,  and  that  increasingly  South-South  trade  is 
becoming  a  source  of  economic  growth.  Finland  not  only  promotes  importing  goods  from 
developing countries and reducing trade barriers, but also promotes the support of developing 
country industries through ODA. Finland is aware that an overall reduction in trade barriers 
will  not  necessarily  result  in  economic  development  without  the  inclusion  of  assistance  for 
increasing the competitiveness of developing industries. To ensure that the trade policies are 
coherent with development objectives, Finland has also created its Aid For Trade Action Plan 
(2008  –  2011),  which  among  other  things  complements  the  Import  Policy  Strategy.  The 
combination of a pro-development Import Policy Strategy and an Aid For Trade Action Plan 
provides Finland with a strong policy framework for ensuring PCD in trade. Finland has also 
advocated  that  PCD  issues  are  taken  into  account  in  regional  trade  policies  by  promoting 
development  coherence  throughout  the  EU.  Since  2007,  Finland  has  taken  significant  steps 
towards ensuring PCD in trade, both nationally, within the EU, and internationally. 

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National  and  regional  programmes  are  complemented  by  efforts  at  the  African  continental 
level  undertaken  in  the  framework  of  the  Joint  Africa-  EU  Strategy  and  in  particular  the 
Partnership on Trade, Regional Integration and Infrastructure.  

Africa-EU Trade and Regional Integration 

In the First Action Plan for the implementation of the Africa-EU Strategic Partnership, under 
the  Trade  and  Regional  Integration  Partnership,  priority  actions  have  been  agreed  in  the 
following areas: 1) support the African integration agenda, 2) strengthen African capacities in 
the  area  of  rules,  standards,  and  quality  control,  and  3)  implement  the  EU-Africa 
infrastructure  partnership.  Concrete  ongoing  and  planned  activities  include  Africa-wide 
training  on  SPS  standards,  capacity-building  in  the  area  of  industrial  standards  and 
normalisation, information seminars in support of customs reforms in Africa.  

3.1.2.5.  Other Initiatives 

•  Raw Materials Initiative 

On  4  November  2008,  the  European  Commission  adopted  a  new  integrated  strategy  COM 
(2008) 699 setting out targeted measures and lines of action to secure reliable and undistorted 
access to raw materials for EU industry. The Communication on the "Raw Materials Initiative 
– meeting our critical needs for growth and jobs in Europe"34, which focuses on non-energy 
minerals  (excluding  agricultural  commodities  and  energy  raw  materials),  encompasses 
measures in three areas or "pillars" to secure sustainable supplies of the materials needed for 
the  EU  economy:  (1)  ensure  access  to  raw  materials  from  international  markets  under  the 
same conditions as other industrial competitors, (2) set the right framework conditions within 
the EU in order to foster sustainable supply of raw materials from European resources and (3) 
boost  overall  resource  efficiency  and  promote  recycling  to  reduce  the  EU's  consumption  of 
primary raw materials and decrease the relative import dependence. 

The adoption of the Communication and Council conclusions rightly underline the importance 
of fully integrating and taking account of development policy in the Raw Materials Initiative. 
This  will  need  to  be  pursued  throughout  the  implementation  of  this  Initiative.  The  EU  has 
been  implementing  its  activities  to  ensure  undistorted  access  to  raw  materials  in  full 
consistency with development policy and will continue to do so. 

Many  important  raw  materials  are  located  in  developing  countries.  This  creates  new 
opportunities  for  resource-rich  developing  countries,  particularly  in  Africa.  However,  their 
dependence  on  raw  materials  prices  volatility  makes  them  particularly  vulnerable  from 
financial, economic and social points of view as illustrated by the current trend with regard to 
the  crisis.  There  are  other  important  challenges  for  developing  countries  related  to  raw 
materials. The most relevant are (1) political stability issues, (2) governance and transparency, 
(3) management of revenues from raw materials and diversification of economic activities, (4) 
social aspects (5) environmental protection, and (6) trade policy.  

To  improve  management  of  public  revenues,  inter  alia  from  the  raw  materials  sector,  the 
Commission  undertakes  capacity-building  operations  by  providing  technical  assistance  to 

34 

SEC  (2008)  2741,  4.11.2011.  Communication  "The  raw  materials  initiative  —  meeting  our  critical 
needs for growth and jobs in Europe". 

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public  financial  management  systems  in  the  context  of  its  budget  support  to  developing 
countries. To strengthen domestic governance and promote transparency in the raw materials 
sector,  the  10th-  EDF  Governance  Initiative  is  setting  incentives  for  developing  countries  to 
implement the EITI transparency standard and adhere to the Kimberley process.  

The objective of EU trade policy in the raw material sector is to ensure that the various trade 
policy  instruments  are  applied  to  promote  open,  un-distorted  and  well-functioning  raw 
material markets. Creating open markets and an undistorted trade system with clear and stable 
rules brings profits to all stakeholders. At the same time, some trade restrictions are likely to 
be  legitimate  and  even  supported  by  the  EU  (e.g.  for  environmental  or  development 
purposes).  This  initiative  provides  an  opportunity  towards  a  more  coherent,  strategic  and 
comprehensive  approach  at  EU  level  together  with  stakeholders,  so  as  to  unleash  the 
sustainable  development  potential  of  non-energy  raw  materials  for  developing  countries.  In 
addition, it is an opportunity to include the development dimension in the political dialogue 
with emerging economic powers.  

•  Fair Trade 

In June 2006 the European Council adopted its renewed sustainable development strategy and 
encouraged  EU  Member  States  to  promote  sustainable  products,  including  Fair  Trade 
products.  The  European  Parliament  presented  a  report  in  2006  on  Fair  Trade  and 
Development. The report pointed out the need for raising awareness among consumers, and 
the  risk  of  abuse  by  companies  that  enter  the  Fair  Trade  market  without  complying  with 
certification  criteria.  An  exploratory  opinion  in  2005  of  the  European  Economic  and  Social 
Committee (EECS) looked at "consumer assurance schemes".  

On  5  May  2009  the  European  Commission  adopted  a  Communication  on  the  role  of  Fair 
Trade and non-governmental trade-related sustainability assurance schemes in contributing to 
sustainable  development  objectives35.  The  Communication  responded  to  the  European 
Parliament report of 2006 and the 2005 exploratory opinion of the EECS and followed up on 
earlier  Commission  documents  in  clarifying  the  place  of  Fair  Trade  and  other  non-
governmental  sustainability  assurance  schemes  in  the  wider  EU  sustainable  development 
agenda.  Private  trade-related  private  sustainability  schemes  use  a  set  of  criteria  to  assess 
and/or guarantee the sustainability of the products. Criteria often build on one or more of the 
three  pillars  of  sustainable  development;  economic,  environmental  and  social  development 
sometimes  linking  into  international  standards  and  agreements.  The  criteria  and  standards 
applied  by  Fair  Trade  are  among  the  most  comprehensive  and  ambitious  in  terms  of 
addressing  a  broad  set  of  issues  and  conditions  that  impact  the  producers  in  developing 
countries, including in particular a minimum price for the producer and a premium paid to the 
community of the producers.  

35 

COM (2008)215 Final, 5.05.2009  

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The  Communication  recognises  the  significant  development  of  the  Fair  Trade36  movement 
and  the  significance  of  a  European  market  worth  EUR  1.5  billion  per  year.  The 
Communication also lays out the different policy areas where Fair Trade and other schemes 
can contribute to European sustainable development objectives. It sets out main principles and 
definitions  and  the  fundamentals  for  public  procurement  of  sustainable  goods  and  services. 
Furthermore it recognizes that Fair Trade and other private sustainability assurance schemes 
are essentially voluntary dynamic mechanisms that develop along with societal and consumer 
awareness  and  demands.  Such  schemes  should  apply  standards  and  criteria  in  a  transparent 
manner to allow for well-informed choices for consumers. The Communication considers that 
regulating criteria and standards could limit the dynamic element of private initiatives in this 
field and stand in the way of the further development of Fair Trade and other private schemes.  

•  The Export Helpdesk 

The Export Helpdesk is an online service, provided by the European Commission, to facilitate 
market  access  for  developing  countries  to  the  European  Union.  This  instrument  plays  an 
important  role  in  making  the  development  dimension  of  EU  trade  policy  operational  and 
concrete  by  offering  exporters,  importers,  trade  associations  and  governments,  free  and 
practical assistance in taking better advantage  of  the  market  access  opportunities  offered  by 
the EU.  

The Export Helpdesk provides detailed information about: 1) the applicable trade regime with 
the ACP countries -including the Economic Partnership Agreements-, the GSP as well as the 
various  free  trade  agreements  with  developing  countries;  2)  EU  and  Member  States'  import 
requirements  (such  as  sanitary  and  phytosanitary  rules,  labelling  rules,  organic  farming, 
technical standards, etc.) as well as internal taxes applicable to products; 3) EU preferential 
import  regimes  benefiting  developing  countries  including  related  documentary  requirements 
and rules of origin. It also provides trade data for the EU and its individual Member States, 
links to other authorities and international organisations involved in trade and the possibility 
to lodge detailed information requests about real-life situations encountered by exporters. The 
Export Helpdesk is available in English, Spanish, French and Portuguese. 

3.1.3.  Conclusion & Outstanding Issues 

Progress  in  Trade  PCD  commitments  has  been  made  in  those  areas  in  which  the  EU  can 
control the outcome – e.g. autonomous preferences offered to developing countries (such as 
the GSP and the EPA Market Access Regulation). On other issues, the EU has been working 
actively towards the achievement of a successful outcome, but an effective solution is not yet 
reached. This may be an explanation to why most Member States assess progress regarding 
PCD  commitments  in  the  area  of  trade  as  average  (see  chart  below37).  But  31%  think  it  is 
good  or  strong,  while  only  5%  consider  it  weak.  On  balance,  therefore,  progress  is 

36 

37 

In accordance with the "Charter of Fair Trade Principles" (January 2009), Fair Trade is defined as "Fair 
Trade is a trading partnership, based on dialogue, transparency and respect, that seeks greater equity in 
international  trade.  It  contributes  to  sustainable  development  by  offering  better  trading  conditions  to, 
and  securing  the  rights  of,  marginalized  producers  and  workers  –  especially  in  the  South.  Fair  Trade 
Organizations, backed by consumers, are engaged actively in supporting producers, awareness raising 
and in campaigning for changes in the rules and practice of conventional international trade", (set out by 
the  two  standard  setters,  the  Fairtrade  Labelling  Organizations,  FLO  and  the  World  Fair  Trade 
Organization WFTO).  
Chart  based  on  Member  States'  responses  to  a  dedicated  PCD  2009  questionnaire  prepared  by  the 
European Commission. 

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satisfactory, although the EU commitment to the application of PCD in the trade policy area 
will remain an important ongoing process, given the dynamism of international trade policy. 

A  majority  of  the  Member  States  report  that  PCD  commitments  in  the  area  of  trade  entail 
some  economic,  social  and  political  consequences  for  their  country.  Indeed,  35  %  of  them 
describe the consequences as strong.  

At the multilateral level, a breakthrough in the DDA needs the commitment of all key players, 
including  the  major  emerging  economies.  At  the  bilateral  level,  a  successful  conclusion  of 
EPAs  and  other  FTAs  depends  on  substantial  efforts  of  both  parties  (EU  and  partner 
countries)  to  reach  agreements  that  appropriately  foster  regional  integration  and  take  the 
developmental dimension into account.  

Outstanding Issues 

The negotiations in different areas are ongoing and therefore the issues mentioned in the 2007 
report  remain  important  for  continued  attention.  The  need  to  keep  the  momentum  and 
continue to focus on development-friendly outcomes is obvious in relation to the 

•  Doha Development Agenda 

•  EPA negotiations 

•  Revision of the Rules of Origin 

•  Continue to address the importance of Intellectual Property Rights for development  

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3.2. 

Environment  

Quick Facts 

•  Around  7.3  million  hectares  of  forest  disappear  each  year  (from  2000  to  2005).  (FAO, 

2009) 

•  Deforestation  accounts  for  some  20%  of  global  carbon  dioxide  (CO2)  emissions  –  more 

than total EU greenhouse gas emissions. (IPCC 2007; EC 2008) 

•  19% of timber imports into the EU is thought to come from illegal sources (EC 2008)  

•  Of the 306 million hectares of certified forests in the world (June 2007), Africa accounts 
for about 1 % (FAO 2009). Expansion has recently taken place in the Congo basin with 4.2 
million hectares in 2009 – (IFIA 2009). 

•  Up to 20% of the total burden of disease in developing countries is linked to environmental 

issues (UNEP 2007). 

•  Trends  in  some  3,000  wild  populations  of  species  show  a  consistent  decline  in  average 
species  abundance  of  about  40%  between  1970  and  2000  (Convention  on  Biological 
Diversity- 2007) 

•  It is estimated that 33% of the 6,500 recognized domesticated animal breeds are threatened 

with extinction (Convention on Biological Diversity- 2007) 

3.2.1. 

Introduction  

Despite global, national and local initiatives to address the worsening environmental trends, 
the unprecedented economic growth from 2001 to 2007 has had a considerable impact on the 
state  of  environment  and  natural  resources  in  developing  countries.  Deterioration  of  the 
environment, exacerbated by the effect of climate change, has a crucial impact on the majority 
of  the  world's  poor  as  many  depend  directly  on  natural  resources  for  their  livelihood 
(agriculture,  forestry,  fisheries)  and  on  ecosystems  that  provide  valuable  services  (clean  air, 
water…).  Due  to  their  vulnerability  and  low  adaptation  capability,  poor  countries  have  the 
greatest  difficulty  in  coping  with  environmental  degradation.  Biodiversity  loss,  resulting  in 
disruption of agriculture; decreased fish catches; deforestation, mainly through the conversion 
of  forests  to  agricultural  land;  land  degradation  and  desertification;  chemical  and  waste 
pollution  of  land  and  water  are  all  tangible  effects  with  tremendous  consequences  for  the 
developing countries' ability to eradicate poverty. 

Sustainable  use  of  natural  resources  and  protection  of  the  environment  are  therefore 
fundamental  in  achieving  the  MDGs.  Although  environment  is  gradually  perceived  as  a 
Global Public Good, the MDG 7 on environmental sustainability has not received sufficient 
attention  and  is  often  off-track  in  many  developing  countries.  In  the  face  of  the  economic 
downturn expected from 2009 onward, funding priorities may well shift from the environment 
to  economic  and  social  issues,  with  further  environmental  degradation  undermining  the 
limited progress made so far. Additionally, attention should be paid to the possible crowding 
out  of  other  environmental  issues  with  funding  mostly  going  towards  climate  change 
adaptation.  In  this  context,  the  convergence  of  Environment  policies  and  Development 
objectives  is  paramount  both  to  achieve  a  high  degree  of  environmental  protection  in 

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developing  countries  and  to  help  countries  attain  their  development  goals  in  a  sustainable 
way.  

3.2.2.  Progress toward PCD commitments 

The years 2007 and 2008 were a turning point in EU environment policy. The long-awaited 
chemicals  legislation  REACH  (Registration,  Evaluation,  Authorisation  and  Restriction  of 
Chemical  substances)38,  reforming  the  EU  approach  to  chemicals,  was  adopted  and  the 
Environmental  Liability  Directive39  came  into  force.  New  approaches  to  integrating 
environment40  in  Development  policies  within  the  EU  were  discussed41  and  progress  was 
made in considering environment in Trade matters. 

At Member States level, a number of countries published new guidelines or strategies on the 
links  between  environment  and  development.  For  example,  Austria  published  Policy 
Guidelines  on  Environment  and  Development  jointly  written  by  several  Ministries  while 
Finland worked on a new inter-ministerial strategy on environment and development issues. 
Throughout the period the main commitments under the 6th Environment Action Programme 
have been delivered and environment issues remained firmly at the top of the political agenda, 
culminating with the adoption of a Climate Change and Energy Package in December 2008 
that set Europe on the path to a low-carbon economy42.  

3.2.2.1.  EU Internal Development Policies: Toward a Green Economy 

•  Sustainable Consumption and Production - SCP (Marrakech process) 

The  major  challenge  faced  by  economies  today  is  to  combine  environmental  sustainability 
with economic growth and welfare, by decoupling environmental degradation from economic 
growth,  and  to  move  the  EU  towards  an  energy  and  resource  efficient  economy.  The 
European Commission has been very active both internally (development of the SCP Action 
Plan)  and  internationally  through  general  support  for  the  Marrakech  Process43.  EU  Member 
States are actively involved in the process with the UK, Sweden, Germany, Italy, France and 
Finland chairing Working Groups. 

In  addition,  the  Commission  helped  to  launch  and  support  the  Resources  Panel  while 
establishing  SWITCH  Asia44  to  fund  SCP  projects  and  promote  SCP  policies  in  the  Asian 
region. The SWITCH programme, with its particular focus on SMEs, contributes directly and 
indirectly to poverty reduction by improving the living conditions of poor households in the 
vicinity  and  down-stream  of  sub-urban  SMEs  by  reducing  water  pollution  (particularly 

38 
39 
40 
41 
42 
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44 

Regulation (EC) No 1907/2006, 18.12.2006 
Directive 2004/35/EC, 21.04.2004 
Outstanding issue from the 2007 EU Report on PCD . 
Council Conclusions 11474/09, June 2009.  
For more on this, see Chapter 3: Climate Change Policy Area. 
The  Marrakech  Process  aims  to  establish  an  efficient  10  Year  Framework  of  Programmes  to  support 
existing national and regional SCP policies and practices; the organisation of SCP National Roundtables 
(together with UNEP) in emerging economies (China, India and South-Africa) and a representation of 
the European Region in the Advisory Committee to the Marrakech Process 
To  respond  to  the  need  for  cleaner  and  more  energy  efficient  industry  in  Asia,  the  European 
Commission  has  launched  the  €70  million  Switch  Programme.  The  programme  targets  small  and 
medium-sized businesses and promotes the use of environmentally friendly technologies and practices, 
as well as a switch in consumption patterns towards less damaging products and services.  

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improving conditions of women who traditionally have to source drinking water), solid waste, 
and air pollution.  

Additional efforts have been made by Member States. For instance, Sweden initiated a study 
on  Sustainable  Consumption  and  Production  in  the  countries  of  Eastern  Europe,  Caucasus, 
and  Central  Asia  (EECCA)  and  South  East  Europe  (SEE)  countries  to  highlight  SCP  issues 
within the United Nations Economic Commission for Africa (UNECA) and Environment for 
Europe meeting and to promote proposals for activities on SCP in the meeting declaration.  

The Marrakech Process 

The Marrakech Process is a global process to support the elaboration of a 10-Year Framework 
of  Programs  (10YFP)  on  sustainable  consumption  and  production,  as  called  for  by  the 
Johannesburg  Plan  of  Action.  European  countries  and  the  European  Commission  are  very 
active  in  this  process.  This  includes  helping  countries  and  regions  globally  to  develop 
sustainable consumption and production programmes and policies. The draft 10 YFP will be 
discussed during the 17th and 18th meetings of the Commission of Sustainable Development. 

The  Marrakech  Task  Forces  are  voluntary  initiatives,  all  led  by  European  governments  to 
carry out a set of concrete activities that promote a shift to SCP patterns, such as eco-label in 
Africa, sustainable lifestyles, products, sustainable buildings and sustainable tourism. France, 
for  example,  is  chairing  the  Task  Force  on  sustainable  tourism.  Among  the  around  twenty 
projects of this Task Forceone of the most interesting is the "green passport" which proposes 
to  tourists  a  web  site  and  paper  guidelines  with  information  and  advises.  Through  the  Task 
Force, France also financed capacity building projects, pilot and awareness raising projects in 
southern countries. 

•  Green Public Procurement 

Green  public  procurement  (GPP)  was  the  subject  of  a  Commission  Communication  in  July 
2008 and is defined as a process whereby public authorities seek to procure goods, services 
and works with a reduced environmental impact throughout their life cycle. Every year, public 
authorities spend almost €2 000 billion – 16%  of EU GDP – buying goods and services. With 
such significant purchasing power, they can give strong signals to the market place by asking 
for  greener  goods  thereby  stimulating  the  supply  of  environmentally  friendly  products  in 
sectors  such  as  construction,  transport,  office  equipment  and  cleaning  services,  with  effects 
being felt even outside the EU. Commission proposed that Member States achieve a political 
target of 50% Green Public Procurement as from 2010 

However, while focusing on the EU, the initiative may make market access more difficult for 
products  from  developing  countries,  as  these  may  be  less  likely  to  comply  with  certain 
environmental  standards45.  However,  this  effect  may  be  mitigated  by  the  fact  that,  at  an 
international level, the Marrakech Task force on Sustainable Public Procurement (SPP) seeks 
to  develop  and  implement  a  practical  guidance  and  training  toolkit  on  SPP  in  12  to  14 
developing countries.  

45 

SEC(2008) 2124, 16.07.2008, Impact Assessment  

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Finally,  public  authorities  in  the  EU  are  increasingly  requiring  verified  legal  wood  as  a 
minimum  condition  in  their  procurement  policies;  this  is  an  important  incentive  for  trader 
partner countries to sign FLEGT agreement46.  

•  Complementing REACH 

The REACH regulation was adopted in 2006 and entered into force in June 2007. Its aim is to 
improve  the  protection  of  human  health  and  the  environment  through  the  better  and  earlier 
identification  of  the  intrinsic  properties  of  chemical  substances.  An  Impact  Assessment  in 
2003 and Parliament report in 2006 showed that developing countries, and ACP, in particular 
were only marginally affected by the regulation47.  

Complementing  REACH,  the  EU  agreed  in  2008  to  align  its  legislation  on  classification, 
labelling  and  packaging  of  substances  and  mixtures  to  with  United  Nations  Globally 
Harmonised System (GHS)48. Aim is to protect workers, consumers and the environment by 
means  of  labelling  which  reflects  the  possible  hazardous  effects  of  chemicals.  This  new 
system will ensure that the same hazards will be described and labelled in the same way all 
around the world. Such harmonisation and convergence with international standards makes it 
easier and less costly for developing countries to trade with the EU. Financial and technical 
support for strengthening national and regional capacities to implement the GHS, in particular 
in Asia, is also being provided. 

Nickel 

Since  1967,  an  EC  Directive49  laying  down  common  provisions  for  the  classification, 
labelling and packaging of dangerous substances has continuously been adapted to technical 
and scientific progress to ensure a high level of protection of man and the environment. The 
changes  decided  on  in  the  early  part  of  2009  constituted  another  important  adaptation  and 
included the classification of some 100 nickel compounds as carcinogens. 

A number of developing countries expressed concerns that this would serve only to stigmatise 
nickel with no discernible benefit for consumers and would lead to serious consequences for 
exporting countries, due to the need for additional packaging and labelling. According to the 
same  countries,  this  would  have  far-reaching  regulatory  and  economic  consequences  and 
might cause protracted trade disputes. As a result, the Commission will further consider the 
evidence provided by the complaining parties and assess the alleged trade distorting effect of 
the proposed measure. 

•  EU Environmental Standards 

To establish sound institutional structures and avoid mistrust at the critical interface between 
environment,  trade  and  development  policy  objectives,  the  alignment  of  environmental 
priorities  between  the  EU  and  its  trading  partners  is  essential.  Therefore,  the  EU  intends  to 
conclude  comprehensive  agreements  with  developing  regions  that  cover  the  different 

46 

47 
48 
49 

Similarly, public authorities demand for fair trade products and goods produced in compliance with ILO 
convention  is on  the  increase.  See  Chapter  1  on Trade (regarding fair  trade)  and  Chapter 7 on Social 
Dimension of Globalisation (regarding ILO, decent work etc.). 
Implication of Reach for Developing Countries – European parliament study – 2006  
See http://www.unece.org/trans/danger/publi/ghs/ghs_welcome_e.html  
EC Directive 67/548/EEC 

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dimensions. This is, for instance, illustrated in the EU-CARIFORUM Economic Partnership 
Agreement where environmental standards and obligations have been incorporated. 

EU-CARIFORUM Economic Partnership Agreement 

Environmental obligations and standards have been incorporated as a central objective within 
the CARIFORUM-EU EPA. Under this agreement the parties will promote trade in a way that 
ensures  sustainable  and  sound  management  of  the  environment,  and  will  further  facilitate 
trade  in  goods  and  services  which  are  beneficial  to  the  environment  (e.g.  environmental 
technologies, renewable and energy-efficient goods and services, eco-labelled goods). 

Specific clauses oblige the parties to strive for and uphold high levels of environmental and 
public  health  protection  through  transparent  processes,  the  use  of  relevant  scientific 
information, and the development of effective regional and national standards to safeguard the 
environment.  Both  sides  recognise  the  importance  of  cooperation  in,  amongst  other  things, 
providing  technical  assistance  to  producers  with  a  view  to  meeting  EU  markets  standards, 
facilitating  trade  in  timber  and  wood  products  from  legal  and  sustainable  sources,  and 
promoting  public  awareness  and  educational  programmes  on  environmental  goods  and 
services. 

3.2.2.2.  EU Global Environment Commitments and Policy Dialogue 

Besides internal policy, the EU is active on the international level, bundling global efforts to 
address environmental challenges and promoting sustainable development. This commitment 
has led, and leads, to various voluntary or binding multilateral agreements that, in most cases, 
have implications for developing countries. 

•  Environmental Governance Institution & Multilateral Environment Agreements 

Over  the  last  two  years,  the  EU  has  helped  to  streamline  and  simplify  the  various  ongoing 
processes  at  international  level.  The  Commission  supported  and  provided  inputs  to  the 
negotiations for strengthening  International  Environmental Governance (IEG) in the context 
of UN reform50.  

With regard to Multilateral Environmental Agreements (MEAs), the Commission is strongly 
supportive  of  the  participation  of  all  stakeholders  and  on  several  occasions,  it  financially 
contributed  to  boosting  the  participation  of  developing  countries'  representatives  in  official 
meetings  of  the  different  Conventions.  Specific  initiatives  to  allow  Civil  Society,  including 
from  developing  countries,  to  be  adequately  represented  in  these  meetings  were  also 
supported.  

Several  EU  Members  States  are  also  actively  involved  in  the  Working  Group  on  enhancing 
coordination among the Basel, Rotterdam, and Stockholm Conventions, which aim to increase 
synergies  between  the  MEAs.  Denmark  has  developed  high-level  dialogue  on  the 
implementation  of  the  Multilateral  Environmental  Agreements  (MEAs)  with  17  countries. 
Greece is also actively contributing to global efforts aimed at helping developing countries to 
implement  MEAs  with  particular  emphasis  on  Climate  Change,  Biodiversity  and 
Desertification. 

50 

Outstanding Issue from the 2007 Report on PCD 

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•  Biodiversity 

Biodiversity  is  critical  to  developing  countries  with  regard  to  food  security,  preservation  of 
natural  resources  and  the  fight  against  climate  change.  Over  the  last  few  years,  all  EU 
Member States have implemented the Convention on Biological Diversity (CBD) and related 
MEAs  through  a  wide  range  of  policies  and  measures.  For  example,  Germany  considerably 
increased its funding for the implementation of the CBD, initiating the Dutch-German Access 
and  Benefit-Sharing  (ABS)  Initiative  for  Africa  to  support  African  countries  in  their 
negotiations towards an international regime for ABS. 

At EU level, the mid-term assessment of implementation of the Biodiversity Action Plan in 
200851  concluded  that  the  EU  is  highly  unlikely  to  meet  its  target  “to  halt  the  decline  of 
biodiversity [in the EU] by 2010”52 and that at the global level, biodiversity loss is disastrous, 
with ecosystems frequently being degraded to the point where natural processes are disrupted, 
resulting  in  severe  economic  and  social  impacts.  The  implementation  of  the  CBD  therefore 
needs to be substantially reinforced.  

In  this  context,  the  German  Federal  Ministry  for  the  Environment  and  the  European 
Commission, with the support of several other partners, have jointly initiated a global study: 
the Economics of Ecosystems & Biodiversity (TEEB). The study will evaluate the costs of the 
loss of biodiversity and the associated decline in ecosystem services worldwide. It is intended 
to  sharpen  awareness  of  the  value  of  biodiversity  and  ecosystem  services,  thus  promoting 
biodiversity conservation. 

•  Forestry and Deforestation 

In  2008  the  European  Commission  embarked  on  two  important  initiatives  to  protect  forests 
globally. The "forest package" comprises a proposal to reduce the risk of illegal timber and 
timber products entering the EU market and a Communication setting out the Commission's 
proposals for tackling tropical deforestation53.  

With regard to illegal timber, the Commission is proposing to minimise the risk of illegally 
harvested timber and timber products being placed on the European market. The Commission 
wants  to  make  it  an  obligation  for  traders  to  seek  sufficient  guarantees  that  the  timber  and 
timber products they sell have been harvested according to the relevant laws of the country of 
origin. The proposal will increase incentives for legal and sustainable management and use of 
forests,  especially  in  developing  countries  that  are  interested  in  maintaining  and  enhancing 
their export of forest products to the EU. 

Regarding  tropical  deforestation,  the  Commission  proposes  to  work  in  the  international 
negotiations  on  climate  change  towards  the  development  of  a  Global  Forest  Carbon 
Mechanism  (GFCM)  through  which  developing  countries  would  be  rewarded  for  emissions 
reductions achieved by taking action to reduce deforestation and forest degradation. 

51 
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53 

COM (2006) 216 Final., 22.05.2006.  
Presidency Conclusions, Göteborg European Council 15 and 16 June 2001 
COM(2008)  645  final,  17.10.2008  on  "Addressing  the  challenges  of  deforestation  and  forest 
degradation  to  tackle  climate  change  and  biodiversity  loss"  and  COM(2008)  644/3,  October  2008, 
"Proposal  for  a  REGULATION  OF  THE  EUROPEAN  PARLIAMENT  AND  OF  THE  COUNCIL 
laying down the obligations of operators who place timber and timber products on the market" 

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European  Parliament  resolution  of  17  June  2008  on  policy  coherence  for  development 
and  the  effects  of  the  EU's  exploitation  of  certain  biological  natural  resources  on 
development in West Africa54  

With  regard  to  timber  policies,  the  report  advocates  financial  support  for  mechanisms  to 
protect  forest  and  reduce  green  house  gas  emissions  from  deforestation,  and  calls  for  a 
legislation to prevent timber from illegal and destructive sources being placed on the market. 
The  negative  effects  of  deforestation  on  climate  change  and  indigenous  communities  are 
identified  and  the  report  further  calls  on  the EU  to  speed  up  the  adoption  of  a  green  public 
procurement policy.  

In support of the Action Plan for Forest Law Enforcement, Governance and Trade (FLEGT) 
as  its  response  to  illegal  logging  and  associated  trade,  the  Commission  adopted  in  2007  the 
implementing  modalities  of  FLEGT  regulation55,  particularly  focusing  on  the  voluntary 
partnership  agreements  (VPA).  These  VPA  are  legally  binding  agreements  by  which  the 
partner country and the EU undertake to work together to promote better forest governance, 
and law enforcement and implement a timber licensing scheme. The first FLEGT VPA were 
initialled  with  Ghana  in  September  2008  and  the  Republic  of  Congo  in  May  2009. 
Negotiations are ongoing with Indonesia, Malaysia, Cameroon and Liberia and new countries 
will start negotiations in 200956 

Deforestation in the Congo Basin 

This graphic illustrates the most recent deforestation estimates produced by the Joint Research 
Centre (JRC) from satellite images. Each circle corresponds to the deforestation (in red) and 

54 
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56 

European Parliament Resolution 2007/2183(INI) 
Regulation No 1024/2008, 18.10.2008 
Outstanding issue from the 2007 Report on PCD 

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the forest degradation (in yellow) measured in a square of 10x10 km on satellite images from 
1990  and  2000.  The  size  of  the  circles  is  proportional  to  total  forest  cover  changes,  with 
purple  squares  in  boxes  with  no  change.  Gaps  correspond  to  missing  data  due  to  clouds. 
Regional results are heartening - the net deforestation rates in Central Africa are lower than 
previously estimated. At just 0.16% per year they are around half the rate of deforestation in 
South  America,  and  less  than  a  quarter  the  rate  in  Asia.  This  work  was  produced  in  the 
framework  of  the  Observatory  for  Central  African  Forests,  jointly  managed  by  JRC  with 
COMIFAC, the regional political institution in charge of forest management.  

•  International Panel for Sustainable Resource Management 

Only policies that are based on commonly agreed analysis and facts can be sustained in the 
longer term. The International Panel for Sustainable Resource Management57, founded by 
UNEP with the European Commission in 2007, is filling a major gap in our knowledge. The 
Panel  provides  independent  and  authoritative  scientific  assessment  of  the  environmental 
impacts  of  using  renewable  and  non-renewable  resources.  It  is  currently  working  on:  (1) 
decoupling  (of  economic  growth  from  environmental  impacts),  (2)  prioritisation  of  natural 
resources and products, (3) biofuels and (4) global metal flows and recycling. 

•  Environmental Policy Dialogue 

As  part  of  the  Community's  external  policy,  environmental  policy  dialogues  have  been 
established  between  the  EU  and  several  developed  as  well  as  emerging  countries.  Over  the 
years,  significant  progress  has  been  made  on  environmental  dialogue58  with  emerging 
countries. Environmental dialogues are in place with China, Brazil and India, partly at a very 
comprehensive  and  technical  level.  In  addition  to  environment-related  exchange  via  various 
working groups and in relation to trade policy issues, there have been advanced discussions 
with  China  on  cooperation  in  third  countries.  This  is  highly  relevant  from  the  resource-use 
and development perspective. 

The EU, Africa and China: towards trilateral dialogue and cooperation59  

"Sustainable  management  of  the  environment  and  natural  resources  is  key  to  sustained 
growth, combating climate change and to mutual trade interests. Trilateral cooperation linked 
to  initiatives  such  as  Extractive  Industries  Transparency  Initiative  (EITI),  Forest  Law 
Enforcement, Government and Trade (FLEGT), the Kimberley process, could allow African 
countries to enhance local capacity to manage resources, trade and competition in an open and 
transparent  manner  in  order  to  maximise  sustainable  investment  and  development  outcomes 
notably in sectors such as forestry, renewable energy, energy efficiency, waste management, 
fisheries and mining." 

Regarding Brazil, under the strategic partnership initiated in July 2007 and in the joint Action 
Plan60 (December 2008), partners agreed to strengthen the environmental policy dialogues, to 
work more closely together in addressing pressing global challenges, including to strengthen 
the multilateral climate change regime and to strive for a successful outcome of the post-2012 
climate negotiations. As for India, the EU-India Summit in September 2008 adopted a Joint 

57 
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59 
60 

Outstanding issue from the 2007 Report on PCD. 
Outstanding issue from the 2007 Report on PCD. 
COM(2008)654 final, 17.10.2008 
See http://ec.europa.eu/external_relations/brazil/docs/2008_joint_action_plan_en.pdf 

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Work Programme on energy, clean development and climate change. However, only limited 
progress has been achieved so far. 

Some EU Member States have signed environmental agreements with partner countries. The 
UK conducts an ongoing dialogue with emerging economies. Finland and Zambia have signed 
a Memorandum of Understanding to engage in cooperation to enhance the implementation of 
several  MEAs  in  Zambia.  Latvia’s  Ministry  of  Environment  has  concluded  bilateral 
agreements  on  cooperation  in  the  field  of  environmental  protection  with  Ukraine,  Belarus, 
Georgia  and  Serbia.  Romania  has  signed  a  Memorandum  of  Understanding  with  Tunisia, 
regarding  cooperation  in  the  field  of  environmental  protection  and  water  management  and 
Lithuania has signed an agreement with Belarus on the implementation of the Convention on 
Environmental Impact Assessment in a Transboundary Context.  

3.2.2.3.  Development Instrument in support of Environment in Developing Countries  

•  Commission Country and Regional Strategy Papers 

In 2007/2008, the Commission adopted the new generation of country and regional strategy 
papers  for  the  period  2007-2013.  Progress  was  made  to  promote  Policy  Coherence  for 
Development  via  the  introduction  of  a  specific  PCD  section  in  the  papers,  the  joint 
programming which took place in 10 countries and the increased use of Country Environment 
Profiles (CEP) which needed to accompany each Strategy Paper. Environmental sustainability 
concerns  were  also  developed  in  cooperation  sector  programmes,  notably  by  means  of 
strategic  environmental  assessments  (transports,  sugar  sector  reform,  sea  defences)  and 
through  the  development  of  guidelines  for  mainstreaming  climate  change  adaptation  and 
mitigation in specific sectors of cooperation. 

•  Community Instrument: The ENRTP 

In  June  2007,  the  Commission  adopted  the  thematic  strategy  for  the  environment  and 
sustainable  management  of  natural  resources,  including  energy  (ENRTP)  with  a  worldwide 
scope and a total budget of €889.5 million for th e period 2007 to 201361. The ENRTP aims to 
integrate  environmental  protection  requirements  into  the  Commission's  development  and 
other  external  policies  as  well  as  to  help  promote  its  environmental  and  energy  policies 
abroad in the common interest of the EU and partner countries and regions62. It complements 
other EU initiatives and addresses problems that have a profound effect on the lives of poor 
people,  in  particular  rapidly  degrading  key  ecosystems,  climate  change,  poor  global 
environmental governance and inadequate access to (and security of) energy supply. 

Environment  and  Sustainable  Management  of  Natural  Resources  including  Energy 
(ENRTP) 

In the ENRTP thematic strategy paper, five priorities constituting the core of the programme 
are  identified  for  the  first  programming  period  (2007-2010).  Supported  with  a  budget  of 
€469.7 million, these priorities are to: (i) work ups tream in assisting developing countries to 

61 

62 

See 
http://ec.europa.eu/europeaid/where/worldwide/environment/documents/multi_annual_programme_enrt
p_fr.pdf 
It  includes  two  new  initiatives  related  to  climate  change  and  renewable  energy;  the  Global  Climate 
Change Alliance (GCCA), and the Global Energy Efficiency and Renewable Energy Fund (GEEREF). 

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achieve  the  MDG7  on  environmental  sustainability;  (ii)  promote  the  implementation  of  EU 
initiatives  and  help  developing  countries  to  meet  internationally  agreed  environmental 
commitments; (iii) promote coherence between environmental and other policies and enhance 
environmental  expertise;  (iv)  strengthen  international  environmental  governance  and  policy 
development and, (v) support sustainable energy options in partner countries. 

•  Members States' Bilateral Support 

Member States give a lot of support to a wide range of environment issues in developing 
countries.. Germany assists countries in implementing the United Nations Convention to 
Combat Desertification (UNCCD) and its international regimes, while using these regimes as 
a framework for designing and implementing projects and programmes. The Czech Republic 
plays an active role as a leader of the regional initiative on financial resource mobilisation for 
strengthening the implementation of the UNCCD63. Irish Aid supports UNEP in Mozambique 
and Rwanda in seeking to ensure that environmental challenges are adequately addressed in 
national evaluation and implementation processes.  

Greece: Mediterranean EU Water Initiative 

Since  2003,  Greece  has  been  the  lead  country  for  the  Mediterranean  EU  Water  Initiative 
(MED  EUWI)  which  was  included  in  the  reformed  EU  Water  Initiative  in  2007.  Its  main 
objective  is  "to  create  a  higher  efficiency  of  water-related  development  by  providing  a 
platform to co-ordinate and streamline existing and future activities” 64. To help ensure PCD 
in  developing  partner  countries,  the  MED  EUWI  follows  a  strict  process  of  ensuring 
development cooperation is conducted according to the partner country’s long-term targets for 
water  and  sustainable  development,  integrating  national  policies  and  strategies  into  the 
technical  and  policy  work  of  the  National  Dialogues,  and  avoiding  parallel  projects  or 
programmes  by  liaising  with  other  organisations  and  donors.  Furthermore,  the  MED  EUWI 
launched  National  Policy  Dialogues  on  water-related  policy  issues  such  as  finance  and 
planning.  Through  these  many  national,  EU,  and  international  efforts,  the  MED  EUWI  and 
Greece have made a significant contribution towards PCD in the area of environment. 

3.2.3.  Conclusion & Outstanding Issues 

As described in this chapter, some good progress has been made to integrating development 
concerns into EU environment policy area, at both Community and Member States levels, as 
exemplified  by  the  Climate  Change  and  Energy  Package,  Sustainable  Consumption  and 
Production,  Green  Public  Procurement,  support  for  implementation  of  the  MEA,  the  forest 
package  and  FLEGT  partnership  agreements.  Some  Member  States  have  developed  new 
strategies  to  link  environment  and  development  and  others  have  initiated  inter-ministerial 
coordination mechanisms. Dialogue with developing countries and emerging economies was 
strengthened  throughout  the  period  and,  while  adequate  monitoring,  analysis  and  reporting 
systems are still lacking in many Member States, some countries65 have developed promising 
mechanisms.  

However a few critical issues still have to be dealt with (such as International Environment 
Governance which, despite EU efforts, has witnessed limited progress or the implementation 

63 
64 
65 

In the regional implementation Annex V for Central and Eastern Europe. 
MED EUWI. Info Note and Workplan 2008. December 2007 
UK, Denmark and Finland 

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of the CBD in dire need of reinforcement) and additional efforts are still expected in a number 
of  areas  showing  progress.  A  concerted  EU  position  on  those  issues  will  increase  the 
likelihood of successful outcomes. 

Consequently, most Member States rate the EU progress on PCD in the area of environment 
as average to good (see chart below66). 

EU Member States welcome in particular the efforts that have been put into the dialogue with 
developing  countries,  the  Action  Plan  for  Forest  Law  Enforcement  Governance  and  Trade 
(FLEGT)  and  the  promotion  of  sustainable  consumption  and  production  in  the  context  of 
Marrakech.  Nonetheless  a  number  of  countries  have  faced  difficulties  in  promoting  PCD. 
Conflicting  mandates  of  the  various  ministries  and  lack  of  effective  coordination  between 
sectors  and  across  the  various  levels  of  government  are  persistent  limiting  factors.  Another 
difficulty, which EU  Member  States as  well  as partner countries  face, is that environmental 
considerations are often seen as costs, rather than investment and development opportunities. 
In addition, though making good progress, dialogue with developing countries is hampered by 
poor International Environmental Governance institutions, too widely spread across different, 
and  sometimes  competing,  fora  and  by  weak  responses  from  partner  countries  when 
encouraged  to  incorporate  environmental  objectives  into  their  national  development  plans. 
Finally, the financial and economic crisis of 2008 will possibly result in shifting of priorities 
away from environmental concerns.  

In  the  future,  there  ought  to  be  countless  opportunities  for  synergies  between  environment, 
climate  change,  development  policies  and  programmes.  The  wide-ranging  implications  of 
environmental degradation (and climate changes) are bound to affect in the short to medium 
term the lives and livelihoods of billions of people living in poverty in developing countries 
and emerging economies.  

Joint  efforts  and  policy  coherence  are  needed  more  than  ever.  More  coherence  for 
development  is  paramount  if  the  "greening"  of  the  developed,  and  developing  countries' 
economies is to deliver on the promises of a safer and more hospitable world. Globalisation 
and  market  forces  alone  will  not  necessarily  lead  the  world  to  a  more  environmental  and 
development-friendly path and might not deliver in timely fashion on issues such as climate 
change.  Strong  and  converging  public  policies  are  therefore  required  to  provide  clear 

66 

Chart  based  on  Member  States'  responses  to  a  dedicated  PCD  2009  questionnaires  prepared  by  the 
European Commission. 

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guidance  and  orientation  for  the  public  at  large  to  allow  for  a  rapid  and  smooth  global 
economic transition. Policy coherence for development provides the appropriate tool to ensure 
that the poorest and the developing countries will be part and parcel of this evolution.  

Outstanding Issues  

•  Global Environment Institution: the creation of an efficient UN Environment Organisation 
should be supported with a significant representation of developing countries and emerging 
economies. 

•  Additional  resources  should  be  made  available  for  the  poorest  developing  countries  to 
tackle environmental issues. In connection with Climate Change initiatives, new financing 
mechanism  should  be  pursued  (such  as  Payment  for  Environment/  Ecosystem  Services, 
Carbon Stocking etc.). 

•  Facilitate environment-friendly technology transfers to developing countries 

•  Promote  international  agreement  on  the  use  of  labelling  and  sustainability  schemes  for  a 
growing number of  natural  resources  and products while helping developing countries to 
limit additional cost and loss of opportunities. 

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3.3. 

Climate Change  

Quick Facts 

•  11 of the last 12 years (1995-2006) rank among the 12 warmest years in the instrumental 

record of global mean surface temperature (since 1850) (UN IPCC 2007) 

•  Global  greenhouse  gas  (GHG)  emissions  due  to  human  activities  have  grown  since  pre-

industrial times, with an increase of 70% between 1970 and 2004 (UN IPCC 2007) 

•  According  to  the  UNFCCC  emissions  increased  by  2.3  %  or403  million  metric  tons  of 

CO2 from 2000 to 2006 (UNFCC 2009) 

•  From 1990 to 2005 GHG emissions by the EU-15 decreased by 1.5%. Emissions by the 

EU-27 decreased by 7.9%. (European Environment Agency (EEA) 2007) 

•  By 2020 between 75 million and 250 million people in Africa are projected to be exposed 

to increased water stress due to climate change (UN IPCC 2007) 

•  By 2020 in some African countries, yields from rain-fed agriculture could be reduced by 

up to 50% (UN IPCC 2007)  

•  There is high agreement on, and much evidence of substantial economic potential for the 

mitigation of global GHG emissions over the coming decades. (UN IPCC 2007)  

3.3.1. 

Introduction  

Climate  change  is  affecting  all  countries  but  the  poor  communities  and  people  in  Least 
Developed Countries (LDCs), Small Island Development States (SIDS) and other vulnerable 
countries,  regions  and  areas  are  expected  to  be  hit  hardest.  The  impacts  indeed  are  already 
being  felt.  Food  and  water  shortages,  diseases  and  environmental  degradation  including 
biodiversity loss and decreased ecosystem functioning are expected to become more acute in 
the coming decades. Sea level rise, land degradation, increased risks of floods and droughts, 
and advancing desertification etc. will impact on the lives and livelihoods of billions of people 
in developing countries.  

Climate  change  has  generated  worldwide  attention  since  the  adoption  in  1992  of  the  UN 
Framework Convention on Climate Change (UNFCCC), as reinforced by its Kyoto protocol 
and  other  policy  initiatives.  Gradually,  the  need  for  developing  countries  to  deal  with  the 
issues has been growing.  

While developing countries, in particular the poorest, made little contribution to the climate 
change effects which they are already experiencing, the more advanced developing countries, 
including emerging economies, are now considered to be an essential part of a comprehensive 
and global long-term solution. Their further economic development should be based on low-
carbon plans or strategies encompassing all relevant sectors. Furthermore, several developing 
countries are covered by vast areas of natural tropical forest, and other carbon rich ecosystems 
such  as  peatlands,  wetlands  and  grasslands,  which  hold  invaluable  carbon  stocks  and 
biodiversity rich ecosystems providing essential services to the planet.  

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However,  many  developing  countries,  in  particular  the  more  advanced,  are  growing  their 
economies at a fierce pace, while applying unsustainable production and consumption paths, 
adding  already  to  the  climate  change  burden.  The  development  of  low  carbon  plans  are 
therefore important to contribute to the decline in global emissions. Finally many countries, 
especially the poor, who are low emitters, and the vulnerable, do not have the financial and 
technical capacities to face the consequences and impacts of climate change. While adaptation 
and  poverty  reduction  remain  the  highest  priorities  for  these  countries,  they  could  also  take 
advantage of developing their economies along a low carbon path. 

Developing countries are a diverse group ranging from the poor LDCs to the new emerging 
economies and should be treated with different approaches reflecting the heterogeneity of the 
countries, their capacities and overall responsibilities. The PCD element of the EU's climate 
policies will be crucial to the success of the fight against global warming  

3.3.2.  Progress towards PCD Commitments 

3.3.2.1.  EU Climate Change Mitigation Policies  

Over  the  last  two  years,  much  progress  has  been  achieved  with  regards  to  climate  change 
policies.  The  European  Commission  and  EU  Member  States  have  established  concrete 
measures to ensure that development concerns are taken into account and synergies improved.  

At  the  level  of  the  EU,  the  main  policy  achievement  has  been  the  adoption  of  the  Climate 
Change  and  Energy  Package  in  December  200867.  The  package  sets  targets,  by  2020 
compared to 1990, to cut greenhouse gas emissions by 20% and to establish a 20% share for 
renewable  energy  (See  chapter  12  on  Energy  Policy).  The  package  includes  a  further 
strengthened and extended EU Emission Trading Scheme (ETS) as a centrepiece The ETS is 
the EU's key tool for cutting emissions cost-effectively68. The review of the ETS ensures that 
there  is  investor  certainty  with  regard  to  offsetting  credits  that  can  be  used  for  compliance 
after  2012  including  the  continued  use  of  Clean  Development  Mechanism  (CDM)  and  the 
potential  of  new  offsetting  mechanisms  if  agreement  is  reached,  as  hoped  for  at  the 
Copenhagen conference on a post-2012 climate framework.  

In  addition,  the  package  includes  the  decision  on  how  to  share  efforts  in  the  sectors  not 
included in the ETS, a directive for environmentally safe carbon capture and storage (CCS) 
and directives on CO2 emissions from cars and fuel quality. The renewable energy directive, 
including biofuels, is discussed in chapter 12 (Energy) 

Europe  has  clearly  established  itself  as  world  leader  in  the  fight  against  climate  change, 
offering a number of opportunities to developing countries.  

Climate Change and Security Policy 

67 

68 

For an overview of the Package, see European Commission Press Release IP/08/1998, 17.12.2008. For 
additional information: http://ec.europa.eu/environment/climat/climate_action.htm 
Emissions from the sectors covered by the system will be cut by 21% by 2020 compared with levels in 
2005.A single EU-wide cap on ETS emissions will be set, and free allocation of emission allowances 
will  be  progressively  replaced  by  auctioning  of  allowances  by  2020.  Emissions  from  sectors  not 
included in the EU ETS – such as transport, housing, agriculture and waste – will be cut by 10% from 
2005 levels by 2020. Each Member State will contribute to this effort according to its relative wealth, 
with national emission targets ranging from -20% for richer Member States to +20% for poorer ones. 

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In March 2008, a Paper69 from the High Representative and the European Commission to the 
European  Council  addressed  the  interrelations  between  climate  change  and  international 
security. The joint paper identifies a number of threats (such as conflict over resources, loss of 
territory,  border  disputes,  coastal  damages,  environmentally  induced  migration  etc.)  and,  in 
relation to third countries, advocates revisiting and reinforcing EU cooperation and political 
dialogue instruments, giving more attention to the impact of climate change on security. This 
could  lead  to  greater  prioritisation  and  enhanced  support  for  climate  change  mitigation  and 
adaptation,  good  governance,  natural  resource  management,  technology  transfer,  trans-
boundary  environmental  cooperation  (inter  alia  water  and  land),  institutional  strengthening 
and capacity building for crisis management. 

The Communication issued by the Commission in October 2008 addresses the challenges of 
deforestation in the context of international efforts to tackle climate change70. This document 
stresses  the  importance  of  policy  coherence  and  calls  for  a  review  of  the  impacts  of  EU 
policies  on  global  deforestation71.  In  the  international  negotiations  on  climate  change,  the 
Commission proposed to pursue the objective of  halting global forest cover loss by 2030 at 
the latest and  reducing  gross  tropical  deforestation by at least  50% by  2020.  This  would be 
achieved  by  creating  a  Global  Forest  Carbon  Mechanism  (GFCM)  which  would  reward 
developing  countries  for  emissions  reductions  achieved  by  taking  action  to  reduce 
deforestation and forest degradation. 

Fighting  deforestation  will  need  an  appropriate  level  of  funding,  some  of  each  could  come 
from proceeds of allowances auctioned in the EU Emissions Trading System. It is estimated 
that if 5% of auctioning revenue were made available to the Global Forest Carbon Mechanism 
(GFCM), between €1.5 billion and 
€2.5 billion could be raised in  2020. In the framework of 
the  GFCM,  a  pilot  phase  could  be  envisaged  to  test  the  inclusion  of  'deforestation  credits' 
(credits for avoided deforestation) in the carbon markets, allowing governments to make use 
of these credits to help achieve their post-2012 emission reduction target.  

The  Union's  activities  deployed  under  the  ambitious  EU  climate  policy  will  directly  benefit 
the poorest and most vulnerable developing countries as the aim is to limit global warming 
to less than 2 °C relative to pre–industrial levels. 

Germany and Climate Change 

Since  2007,  Germany  has  been  providing  approximately  €400  million  annually  towards 
climate change initiatives by auctioning 10% of its European emissions allowances. From this 
international  climate  change  projects, 
amount,  €120  million  has  been  earmarked  for 
particularly  in  developing  countries.  This  money  is  managed  by  the  International  Climate 
Initiative  (ICI),  which  is  a  fund  administered  by  the  Federal  Ministry  for  the  Environment, 
Nature Conservation and Nuclear Safety (BMU) of the German Government. The ICI has two 
main  objectives,  (i)  the  promoting  of  sustainable  energy  and  supply  and  (ii)  promoting 
measures  for  adaptation  to  the  impacts  of  climate  change  and  conserving  biodiversity  with 
climate  relevance.  Thematic  areas  of  support  include  the  development  of  strategies  and 

69 
70 
71 

Council document 7249/08, 03.03.2008 
Outstanding Issue from the 2007 Report on PCD. 
See Chapter 2 : Environment Policy Area. 

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national  adaptation  policies  as  well  as  technical  capacity  development  in  areas  such  as 
transport.  72  The  ICI  is  only  one  part  of  Germany’s  overall  approach  to  climate  change  and 
development  cooperation,  and  is  strategically  designed  to  support  the  UN  climate  change 
negotiations post-2012.73  

3.3.2.2.  EU Policies: Adapting to Climate Change 

The  Green  Paper  on  adapting  to  climate  change  in  Europe,  adopted  in  June  2007,  and  the 
follow-up  White  Paper,  adopted  in  April  2009,  are  the  first  Commission  initiatives  to 
strengthen adaptation efforts within the EU and beyond.  

Adaptation is of great relevance to developing countries, in particular to the poorest and most 
vulnerable among them. Countries that have contributed least to the causes of climate change 
are  expected  to  be  hit  hardest.  This  is  due  to  their  limited  financial  resources  and  ability  to 
deal  with  the  effects  of  climate  change  impacts.  Poor communities are highly dependent on 
natural  resources  such  as  water  and  soil,  needed  for  food  production  and  drinking  water. 
These natural elements are themselves affected by climate change. .  

Adaptation  is  now  given  the  same  importance  as  mitigation  and  this  is  particularly  relevant 
for  developing  countries.  While  dramatically  reducing  greenhouse  gases  remains  by  far  the 
best  and  cheapest  option  to  prevent  dangerous  climate  change,  adaptation  is  needed  to  deal 
with the effects of climate change that are already being felt and unavoidable.  

3.3.2.3.  Post -2012 negotiation: Bali 2007, Poznan 2008 toward Copenhagen 2009. 

The  EU  is  a  prominent  actor  on  the  international  scene,  developing  innovative  and  leading 
positions  for  the  post-2012  negotiations  to  deliver  meaningful  commitments  in  terms  of 
Climate Change and Development.  

In Bali, in 2007, at the 13th UN Conference of the Parties of the UNFCC, the EU put its case 
for  limiting  emissions  (mandatory  emissions  reductions  by  developed  countries,  effective 
contributions by emerging economies, strengthening and extending the global carbon market, 
increasing cooperation on research, development and deployment of clean technologies) while 
proposing an active partnership for developing countries to address adaptation needs, to tackle 
the unavoidable impacts of climate change in the poorest and most vulnerable countries and to 
reduce emissions from deforestation. The EU committed itself to doing more to mobilise the 
necessary  resources,  including  through  expansion  of  the  global  carbon  market  and  via 
instruments  such  as  the  Global  Energy  Efficiency  and  Renewable  Energy  Fund  (GEEREF) 
(See also chapter 12 on Energy).  

In December 2008, in Poznan, the 14th UN Conference of the Parties of the UNFCCC proved 
a useful staging post on the way to the Copenhagen Conference in 2009 where an ambitious 
new global climate agreement for the post-2012 period should be agreed upon. Progress was 
made  on  operationalisation  of  the  Adaptation  Fund,  which  is  to  finance  adaptation  in 
developing  countries  thus  clearing  the  way  for  developing  countries  to  receive  funding  to 

72 
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BMU. The International Climate Initiative of the Federal Republic of Germany. March 2009. 
BMU. 
http://www.oecd.org/dataoecd/38/61/40633487.pdf  

Finance  Mechanisms 

Innovative 

German 

Climate 

Them 

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strengthen  their  resilience  to  the  impacts  of  climate  change.74  In  addition,  consultations  on 
guidance for the operation of the Least Developed Countries Fund (LDCF), which is largely 
financed by the EU, were completed. As regards tropical deforestation, responsible for almost 
20%  of  global  greenhouse  gas  emissions,  progress  was  achieved  on  the  future  regime  to 
reduce emissions from deforestation and forest degradation, known as REDD,75 as part of the 
lead-up to Copenhagen. Last but not least, the Poznan Programme on Technology Transfer for 
developing  countries  was  adopted,  funded  by  €50  million  of  existing  resources  from  the 
Global  Environmental  Facility  thus  highlighting  the  importance  of  technology  transfers  and 
the need for policy synergies to be sought between Climate Change and Research Policies.  

Research and Climate Change 

Climate  change  is  of  growing  public  concern  and  it  is  an  important  political  priority  of  the 
European  Union  also  in  the  context  of  international  research  cooperation.  The  Seventh 
Framework  Programme  for  Research  and  Technological  Development  (FP7)  is  following 
previous  Framework  Programmes  by  putting  particular  emphasis  on  international  co-
operation  actions  in  this  area.  FP7  research  topics  address  the  urgent  needs  for  sound 
scientific information on further understanding of the climate system, impacts, vulnerability, 
adaptation and mitigation to support climate change policy developments and implementation 
as  well  as  the  IPCC  (Intergovernmental  Panel  on  Climate  Change)  process.  The  FP7 
Environment  Programme  is  promoting  international  cooperation  by  encouraging  ICPC 
(eligible  International  Co-operation  Partner  Countries)  participation  in  various  topics  and 
through Specific International Co-operation Actions (SICA) across all activities of the work 
programme.  Two  of  the  many  examples  of  successful  projects  on  climate  change  research 
with  participation  of  developing  countries  and  emerging  economies  are  AMMA  (African 
Monsoon Multidisciplinary Analysis) with 21 partners from Africa and HighNoon (adaptation 
to  changing  water  resources  availability  in  northern  India  in  the  face  of  Himalayan  glacier 
retreat and changing monsoon patterns) with key contributions from three Indian partners. 

The  Communication76  towards  a  comprehensive  climate  change  agreement  in  Copenhagen 
was  adopted  in  early  2009  and  proposes  the  main  building  blocks  -mitigation,  adaptation, 
financing  and  technology  -  for  reaching  such  an  agreement.  These  proposals  were  further 
strengthened  by  several  Council  conclusions.  Their  relevance  for  attaining  the  MDGs  has 
been underlined.  

In  preparing  for  the  Copenhagen  Conference,  scheduled  for  December  2009,  the  EU  has 
recognised developing countries' needs and is prepared to take its fair share of the financing 
required to ensure adequate, predictable and sustainable financial transfers, including leverage 
of  private  investments,  to  support  developing  countries  in  their  adaptation  and  mitigation 
efforts.  Existing  channels  for  aid  delivery  should  be  explored  before  creating  new 
mechanisms. The principles of effectiveness, efficiency, equity, transparency, accountability, 
coherence, predictability and sound financial management should apply, as well as the need to 

74 

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76 

The Fund is financed through a 2% levy on the sale of emission credits generated by emission-saving 
projects  undertaken  in  developing  countries  under  the  Protocol's  Clean  Development  Mechanism 
(CDM). 
Outstanding issue from the 2007 EU Report on PCD. 
COM(2009) 39 final, 28.01.2009 

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coordinate  funding  initiatives77,  promote  sharing  of  best  practices  and  capitalize  on 
experiences gained in this respect. 

On  the  subject  of  mitigation,  the  EU's  view  is  that  developing  countries  as  a  group, 
particularly the most advanced ones, should achieve a substantial and quantifiable lowdown 
of their emissions growth rate78 through the development of low-carbon plans and strategies. 
Such  strategies  should  be  supported  financially  and  technically  in  particular  for  the  poorest 
and most vulnerable countries such as LDCs and SIDS, should they choose to develop one.  

Mitigation  and  adaptation  efforts  must  be  supported  by  much  greater  collaboration  on 
technology research, development, deployment and diffusion.  

3.3.2.4.  EU and Developing Countries 

Poor  countries  across  the  world  and  small  low-lying  island  states  such  as  atolls  are  very 
vulnerable to climate change. But even the more advanced developing countries are likely to 
contain  regions  or  communities  that  are  very  vulnerable.  For  example  low-lying  fertile  and 
densely  populated  deltas  across  the  globe  are  very  fragile  (e.g.  Egypt,  Bangladesh)  due  the 
combined  effects  of  a  number  of  causes  including  sea  level  rise,  sediment  depletion  from 
dams constructed upstream, changes in storm patterns, frequencies and intensities, changes in 
river flow regimes, salinisation due to over-extraction of natural groundwater etc.  

While efforts to conduct dialogue with and support for developing countries take place on all 
continents,  the  inter-linkages  between  Climate  Change  and  Development  are  particularly 
important in Africa, a continent that remains tragically affected by poverty. Over the last two 
years  progress  has  been  made  in  setting  up  climate  change  priorities  for  cooperation  and  in 
identifying deliverables and joint initiatives with the African continent.  

In  November  2008,  the  EU-Africa  Joint  Declaration  on  Climate  Change  welcomed  the 
European  Union’s  intention  to  support  the  African  region  in  its  adaptation  and  mitigation 
efforts, through the Global Climate Change Alliance (GCCA) and other appropriate bilateral 
and  multilateral  instruments  of  cooperation.  A  decision  was  also  made  to  speed  up  the 
operationalisation  of  the  Adaptation  Fund  while  seeking  to  mobilise  new  and  additional 
funding for adaptation. 

In July 2008 the Climate Change Declaration at the EU-South Africa Summit underlined the 
partners' desire to cooperate also on the issue of carbon capture and storage (CCS)79. South 
Africa  has  been  proactive  in  the  UNFCCC  negotiations  and  is  one  of  the  EU's  strategic 
partners for discussing the avenues leading to a post-2012 climate regime.  

Launched  in  December  2007,  the  Africa-EU  Climate  Change  Partnership80  has  two  priority 
actions:  to  build  a  common  agenda  on  climate  change  policies  and  cooperation  and  to 

77 

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79 

80 

Such  as  Global  Environment  Facility  (GEF),  the  Adaptation  Fund  and  EU  development  assistance, 
including bilateral actions and the Global Climate Change Alliance (GCCA), as well as the contribution 
of other multilateral development programmes and funds, notably those of the UN and the World Bank, 
such as the Climate Investment Funds. 
In the order of 15-30% below business as usual by 2020 
The  Summit  also  agreed  to  the  creation  of  an  Energy  Dialogue  Forum  (EDF)  to  facilitate  further 
cooperation. 
Africa-EU  Ministerial  Troika  20/21  November  2008,  Joint  Progress  Report  on  the  implementation  of 
the Africa-EU Joint Strategy and its first Action Plan (2008-2010)  

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cooperate  to  address  land  degradation  and  increasing  aridity  and  desertification.  Several 
meetings of the European and African Implementation Teams took place in 2008 leading to 
an  agreement  on  internal  working  arrangements,  on  the  necessity  to  associate  in  the 
partnership  climate  change  negotiators  as  well  as  development  practitioners  and  on  the 
necessary  deepening  of  the  dialogue  with  Civil  Society,  private  sector  and  parliaments,  as 
well as other international partners.  

On the African side a strategic review is being conducted in order to improve the prioritisation 
of climate change activities covering a wide range of issues from capacity building to water 
resources  management  to  adaptation  in  agriculture,  desertification,  urban  development, 
disaster  risk  reduction,  deforestation  and  sea  level  rise.  Both  the  EU  and  African  sides  are 
currently working on the 2009 deliverables for the partnership. These include the CLIMDEV 
initiative  designed  to  mainstream  climate  information  into  development  planning  and 
practices;  the  pre-feasibility  study  of  the  Great  Green  Wall  of  Sahara;  capacity  building 
efforts  for  UNFCCC  negotiators  (African  Roadmap  for  UNFCCC  negotiations…);  the 
improvement of African access to carbon credit and the carbon market; the implementation of 
the GCCA and the cooperation on the definition and implementation of EU and AU disaster 
risk reduction policies. 

3.3.2.5.  Development Policies to address Climate Change in Developing Countries  

Several EU-level policies and programme reflect the climate change high political priorities 
of  climate  change.  The  Joint  ACP-EU  Declaration  on  Climate  Change  and  Development  of 
2009 renewed political commitments to integrate climate change issue into national poverty 
reduction  strategies  to  which  Commission  and  Member  State  cooperation  programme  are 
aligned.  Almost  all  EU  Member  States  have  now  adopted  national  climate  change  policies 
and efforts to integrate development aspects are underway, from the Czech Republic, which 
actively supports mainstreaming of climate change into development cooperation, to Belgium, 
where  a  dedicated  committee  ensures  close  coordination  between  environment  and 
development  policy  makers  at  national  and  regional  level.  At  Commission's  level,  the 
"Disaster  Risk  Reduction"  Communication  issued  in  February  2009  and  the  revision  of  the 
"Environmental  Integration  Strategy"  scheduled  for  2009  are  endeavours  toward  integrating 
climate change issues into development cooperation81.  

Apart  from  the  support  given  to  address  climate  change  in  the  European  Commission's 
development programmes (country and regional development programmes (NIP and RIP) for 
the  period  2007-2013,  IntraACP  budget  lines)  of  key  importance  to  developing  countries  is 
the  thematic  programme  for  the  environment  and  the  sustainable  management  of  natural 
resources, including energy, known as ENRTP, with a worldwide scope and a total budget of 
€889.5 million for the period from 2007 to 2013 (See Chapter 3 on Environment Policy). Its 
objective  is  to  ensure  that  environment  is  consistently  taken  into  account  in  the  various 
cooperation instruments and to give developing countries more information on the impact of 
climate  changes.  Part  of  the  funding  specifically  targets  climate  change  support  activities, 
including capacity-building for African countries. Other capacity building initiatives includes 
EUroClima  in  Latin  America  which  is  specifically  geared  to  examining  the  socio-economic 
impact  of  climate  change  on  South  American  countries82  and  which  is  funded  through  the 
regional Development Cooperation Instrument (DCI) funds.. 

81 
82 

Outstanding issue from the 2007 EU Report on PCD. 
Outstanding issue from 2007 EU PCD report 

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However  the  main  development  initiative  to  address  climate  change  issues  was  launched  in 
September  2007  when  the  European  Commission  proposed  a  new  alliance  between  the 
European Union and the poor developing countries that are most affected and have the least 
capacity  to  deal  with  climate  change.  Through  this  Global  Climate  Change  Alliance 
(GCCA)83,  the  EU  and  these  countries  are  working  jointly  to  integrate  climate  change  into 
poverty reduction strategies and into development cooperation.  In 2008, the implementation 
modalities  were  worked  out  and  Vanuatu,  Maldives,  Cambodia  and  Tanzania  were  the  first 
countries  to  be  selected  for  support84.  Further,  thanks  to  the  political  dialogue  dimension  of 
the GCCA, African, Pacific Islands and Caribbean countries are working towards a common 
position  on  tackling  climate  change  and  focusing  their  adaptation  efforts.  The  EU-Africa 
Declaration, the Niue Declaration for the Pacific and the EU-Cariforum Declaration in 2008 
reflected  these  regions'  concerns  on  climate  change  and  the  European  Union's  efforts  to 
achieve an ambitious post-Kyoto international agreement 

The  GCCA,  supported  by  Sweden,  Czech  Republic  and  the  Commission  is  a  positive  step 
taken by the EU in favour of developing countries. Countries like Denmark, Czech Republic, 
Finland and the Netherlands have  participated  in  some  meeting and discussions. In addition 
several other Member States are keen to learn from the process of the GCCA which will need 
to  actively  engage  with  other  initiatives,  such  as  the  Climate  Investment  Fund.  Two  other 
international  initiatives  focusing  on  developing  countries  have  been  launched  by  Germany 
and Sweden (the International Climate Initiative and the International Commission on Climate 
Change).  

Member  States  have  also  been  very  active  in  supporting  climate  change  programmes  in 
developing countries. The Netherlands for example provided capacity building for developing 
countries and spent €19million on research and po licy-influencing activities in 2008. Sweden 
supported Clean Development Mechanism (CDM) projects in Botswana, China and India, and 
capacity-building projects on CDM in Kenya, Tanzania and Uganda. It channelled its support 
mainly through the UNFCCC trust fund and financed the adaptation fund. It allocated more 
than  SEK4  billion  (circa  €380  million)  in  addi tional support to  climate-related  development 
assistance over the period 2009-2011, on adaptation initiatives in the poorest countries and on 
measures  to  limit  the  concentration  of  greenhouse  gases.  The  UK  funded  a  number  of 
Regional  Economics  of  Climate  Change  Studies  (RECCS),  which  explore  alternative 
mitigation  scenarios  for  key  countries  and  developing  regions,  and  the  costs  and  benefit  of 
adaptation.  

These  are  but  a  few  examples  of  the  wide-  ranging  initiatives  aimed  at  helping  developing 
countries adapt to climate change.  

3.3.3.  Conclusion & Outstanding Issues  

Good  progress  has  been  made  in  formulating  climate  change  policies  as  their  development 
dimension is becoming better understood.. Over the last two years, awareness of the key role, 
and responsibilities of developing countries, including emerging countries, in tackling climate 
change  issues  has  made  development  a  prime  concern  of  policy  makers.  Reciprocally,  the 
integration of mitigation and adaptation efforts in development cooperation has progressed.  

83 

84 

COM(2007) 540 final 18.09.2007 "Building a Global Climate Change Alliance between the European 
Union and poor developing countries most vulnerable to climate change",  
In  2009-2010  Jamaica,  Belize,  Bangladesh,  Guyana,  Rwanda,  Senegal,  Maurice,  Seychelles, 
Madagascar, Mozambique and Mali will benefit from the initiative. 

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Within the EU, the Climate Change and Energy Package will offer important opportunities for 
developing  countries  in  particular  with  regards  to  CDM,  CCS,  sustainable  production  of 
biofuels,  the  development  of  low-carbon  strategies  and  even  domestic  emission  trading 
systems.  

Progress  has  also  been  made  in  the  post-2012  negotiations  which  should  take  development 
concerns into account in the run-up to the Copenhagen Conference, in December 2009. Some 
issues of interest for developing countries (e.g. related to the CDM mechanisms; the access to 
LDCF  by  poor  countries;  the  future  regime  for  reducing  emissions  from  deforestation; 
facilitating  transfers  of  clean  technologies  to  developing  countries;  financing  of  climate 
change  adaptation  and  mitigation  efforts,  implementation  of  the  Africa-EU  Partnership  on 
Climate Change) remains to be debated and agreed upon before Copenhagen.  

Regarding  the  particular  concerns  of  LDCs  and  other  countries  with  limited  adaptation 
capacities, the GCCA provides a new and formidable platform to help the poorest developing 
countries. The regional declarations of 2008 in the Pacific, the Caribbean's and Africa show a 
convergence of views and interests between developing countries and the EU, bear witness to 
the  strong  progress  made  in  political  dialogue  on  climate  change  and  offer  significant 
opportunities for further actions to address climate change issues in a context of sustainable 
development.  

Policy Coherence for Development has therefore progressed and EU Member States rate the 
success  in  promoting  PCD  in  the  area  of  climate  change  as  average  to  good  (see  chart 
below85).  Despite  progress  in  many  areas,  and  the  political  impetus  given  to  EU  climate 
change policy in 2007-2008 in the light of increasing food prices and food security risks, the 
EU's  national  institutions  still  struggle  to  promote  policy  synergies  due  to  an  insufficient 
number  of  qualified  personnel  in  the  public  and  government  sector,  the  insufficient 
involvement  and  cooperation  of  government  institutions  in  the  process  of  tackling  climate 
change and the lack of financial resources and relevant information on the issues at stake.  

incorporate  mitigation  and  adaptation  measures, 
While  development  policies  now 
implementation  is  still  at  an  early  stage.  In  this  context,  there  is  scope  for  strengthening 
existing cooperation and build a common agenda on climate change policies.  

85 

Chart  has  been  prepared  on  the  basis  of  the  MS  responses  to  a  dedicated  PCD  2009  questionnaire 
prepared by the European Commission. 

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The Council contribution of March 200986 on the preparation for Copenhagen confirmed that 
climate  change  is  widely  seen  as  a  major  threat  to  achieving  the  Millennium  Development 
Goals (MDGs), potentially reversing progress made in the last decade. 

The post-2012 negotiation under the UNFCCC in 2009 will therefore be a critical milestone 
in  the  fight  against  climate  change  and  the  promotion  of  synergies  with  development 
cooperation.  

Given  that  the  financial  and  economic  crises  are  likely  to  divert  the  attention  and  budget 
allocation of developed as well as developing countries towards issues of immediate concern, 
it is of the utmost importance to enhance policy dialogue, and to reinforce further the Global 
Climate  Change  Alliance,  to  develop  a  shared  vision  with  the  most  vulnerable  developing 
countries  highlighting  necessary  coherence  of  our  actions  in  the  field  of  climate  change, 
energy and development.  

In  the  near  future,  the  economic  opportunities  offered  by  the  "greening"  of  economies 
throughout the developed, emerging and developing worlds, if equitably shared between all, 
should  allow  the  double  objectives  of  limiting  climate  change  and  reducing  poverty  to  be 
achieved  through  a  set  of  complementary  and  coherent  policies  and  actions.  This  shared 
vision of sustainable development should help secure ambitious and innovative commitments 
to be agreed by all parties in the UNFCCC post-2012 discussions 

Outstanding Issues 

•  Encourage  the  design  of  low-carbon  development  strategies  in  developing  countries  in 

particular through capacity building. 

•  Develop innovative form of financing for supporting climate change actions in developing 

countries, including financial support to LDC and SIDS to tackle adaptation needs. 

•  Support studies and research on the impact of climate change and assist with dissemination 

of information/awareness-raising activities in developing countries. 

•  Reduce  geographical  imbalance  of  the  CDM  by  increasing  access  of  LDCs  to  CDM 

projects. 

•  Stronger  participation  of  developing  countries  in  EU  and  international  climate  change 

policies. 

•  Assess the impact of trade policy for environmental goods on climate change. 

86 

Council  of  the  European  Union,  2932nd  GENERAL  AFFAIRS  Council  meeting  Contribution  of  the 
General Affairs and External Relations Council to the Spring European Council: "Taking into account 
the development dimension for a comprehensive post-2012 Climate change agreement in Copenhagen", 
Brussels, 16 March 2009, 

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3.4. 

Security 

Quick Facts 

•  Conflicts are sometimes described as “development in reverse”.87 

•  Of the 20 countries with the highest under-five mortality rate, 15 are experiencing complex 

emergencies related to conflict.88 

•  At the end of a conflict the economy of a country is on average 15% less than at the start. 89 

•  50% of children who do not go to school live in countries affected by conflict.90 

•  The  cost  of  conflict  in  terms  of  African  development  is  estimated  to  be  US$300  billion 
between  1990  and  2005,  which  is  equal  to  the  amount  the  continent  received  in 
international aid.91 

•  International legal transfers of major conventional weapons fell steadily after the end of the 
Cold War, but illicit trafficking increased massively. Since 2000 legal transfers have also 
increased.92  

•  Poverty  is  associated  with  weak  state  capacity  and  with  armed  violence.  The  greater  the 
poverty and the lower the state capacity, the higher the risk of war or pervading violence.93 

•  The approximate cost of a “typical” civil war, measured by lost GDP and reduced human 

health, has been estimated at between US $4 billion and $54 billion. 94 

•  In  2006  OECD  member  countries  spent  about $6  billion  on  peace  work,  through  official 

development assistance and the funding of UN peacekeeping missions.95 

87 

88 

89 

90 

of 

13 

rights 

August 

United  Nations  General  Assembly,  Report  of  the  Special  Representative  of  the  Secretary-General  for 
Children and Armed Conflict – Item 68 (a) on the provisional agenda – Promotion and protection of 
the 
A/62/228. 
children, 
http://www.un.org/children/conflict/_documents/machel/MachelReviewReport.pdf 
Paul  Collier  and  Anke  Hoeffler,  The  Challenge  of  Reducing  the  Global  Incidence  of  Civil  War, 
Summary of the Copenhagen Consensus Challenge Paper, Centre for the Study of African Economies, 
Oxford University, 23rd of April 2004. p. 1. 
For an exploration of a number of these issues see Save the Children, Last in Line, Last in School: How 
donors are failing children in conflict-affected fragile states, (London: International Save the Children 
Alliance, 2007). 
IANSA,  Oxfam,  &  Saferworld,  Africa’s  missing  billions  International  arms  flows  and  the  cost  of 
conflict, 107 
http://www.oxfam.org/en/files/bp107_africas_missing_billions_0710.pdf 
Paul Collier, VL Elliott, Håvard Hegre, Anke Hoeffler, Marte Reynal-Querol and Nicholas Sambanis, 

Briefing Paper, London, 2007.  

2007, 

91 
Breaking the Conflict Trap: Civil War and Development Policy (Washington, DC, World Bank &  
Oxford University Press, 2003). Also quoted in, Dan Smith, Towards a Strategic Framework for  
Peacebuilding: Getting Their Act Together Overview report of the Joint Utstein Study of Peacebuilding, 
Evaluation Report 1/2004, (Oslo: Ministry of Foreign Affairs, 2004). 
92 
93 
94 
95 

Human Security Report, Oxford, Oxford University Press. 2005 
Idem 
OECD Factsheet, Evaluating Conflict Prevention and Peacebuilding Activities, Paris, 2008, p. 1. 
Idem 

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•  Worldwide  military  spending  per  year  has  reached  approximately  $1204  billion.  These 
costs will be rising in Africa particularly, where armed forces' training and equipment and 
salaries are progressively advancing towards international standards.96 

3.4.1. 

Introduction 

No  one  questions  anymore  the  importance  of  security  for  development  and  the  role  that 
development  plays  for  preventing  conflicts,  ensuring  durable  exits  from  conflicts  and  for 
accompanying  crisis  management  through  protective,  confidence-building  and  crisis-
alleviating measures. The security development nexus has been firmly established in the EU's 
political  priorities.  The  2003  European  Security  Strategy  (ESS)  and  the  2005  Consensus  on 
Development have acknowledged that there cannot be sustainable development without peace 
and  security,  nor  sustainable  peace  without  development.  Both  security  and  development 
policy  can  only  reach  their  respective  objectives  if  they  are  in  coherence  with  each  other. 
Coherence should not be considered as an option as it lies right at the heart of the functioning 
of the two policies. 

The EU has a wide array of instruments that allow it to intervene at the different stages of a 
conflict cycle, prevention, management and exit. By addressing the root causes of conflicts, 
by  supporting  peace  efforts  throughout  the  crisis  and  in  their  fragile  aftermath,  and  by 
carrying out military and civilian missions in developing countries the EU makes a significant 
and  unique  contribution  to  peace  and  stability  and  to  the  development  objectives  of  these 
countries.  

Acknowledging  the  intrinsic  link  between  security  and  development  policy,  this  report  will 
mainly  look  at  the  security  side  and  assess  to  what  extent  the  EU  through  its  actions  to 
promote  security  contributes  to  development  objectives.  It  will  however  apply  a  wide 
definition of security referring to all initiatives that promote human as well as state security 
ranging  from  conflict  prevention  to  post-conflict  activities  and  which  are  financed  under 
development instruments. 

The broad agreement on the principles underpinning the security/development nexus contrasts 
with the difficulties encountered in their implementation. The ongoing crises in Darfur, DRC 
and Afghanistan demonstrate both the need for and the difficulty of ensuring such coherence. 
These  difficulties  in  the  face  of  complex  political  and  social  situations  are  further 
compounded by the institutional division of labour, which charges different institutions with 
different aspects of security policy and building peace. Ensuring coherence of security policy 
with  development  objectives  goes  beyond  inter-policy  coordination  and  requires  inter-
institutional  coordination,  too.  The  Report  on  the  Implementation  of  the  European  Security 
Strategy  of  December  2008  rightly  recognises  the  need  to  further  strengthen  coherence, 
through better institutional co-ordination and more strategic decision-making.  

3.4.2.  Progress towards PCD commitments 

The  EU  has  taken  a  number  of  steps  to  improve  the  security-development  nexus.  With  the 
Council  Conclusion  on  Security  and  Development  adopted  in  November  2007,  the  EU  has 
established the comprehensive policy framework that was identified in the last PCD report as 
an  outstanding  issue.  The  establishment  of  the  Africa-EU  Peace  and  Security  Partnership 

96 

Idem. 

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clearly  stands  out  as  a  milestone  on  the  road  towards  more  PCD.  Good  progress  has  been 
made with the follow-up to other outstanding issues identified in the last PCD report and with 
PCD  commitments  in  the  security  areas:  cooperation  between  the  different  security  and 
development  actors,  the  contribution  of  short  and  long  term  security  instruments  to 
development  in  particular  in  situations  of  fragility,  arms  control  and  non-violent  security 
issues such as corruption, organised crime and terrorism. 

Member  States  individually  made  great  strides  in  establishing  policies  and  programmes  to 
link security and development since 2007. Austria, Finland, the Netherlands and the UK have 
adopted  strategies  on  conflict  prevention  and  resolution,  civilian  crisis  management  and 
fragile  states.  Portugal  is  currently  developing  a  National  Strategy  on  Security  and 
Development.  All  Member  States  generally  share  the  view  that  conflicts  can  only  be  dealt 
with  successfully,  through  a  comprehensive  approach  including  military  and  assistance 
components of short- and long-term measures. 

3.4.2.1.  Africa-EU Strategic Partnership on Peace and Security and on Governance 

The Join-Africa-EU Strategy laid the foundation for a comprehensive and integrated approach 
towards a critical partner as the AU.. It provides a new and much needed policy framework 
for jointly addressing challenges including in the security area. Notably two out of the eight 
partnerships of the Strategy, the one on Peace and Security and the one on Governance entail 
the  integration  of  EU  security  interests  and  priorities  with  the  ownership  of  political 
objectives  of  our  partners.  The  partnerships 
their  multilevel  coordination 
mechanisms,  the  college  to  college  meetings  and  Ministerial  troikas  allow  for  the 
strengthening of synergies between security and development cooperation.  

through 

The Peace and Security Partnership pursues three priorities areas: 

(1) 

(2) 

(3) 

(1) 

"Dialogue on challenges to Peace and Security" ;  

"Full operationalisation of the APSA" ;  

"Predictable Funding for Africa-led Peace Support Operations" ;  

Political  dialogue  has  proved  particularly  mature  with  meetings  at  political  level 
taking place at a sustained pace, including the first meeting of the EU COPS and the 
AU  Peace  and  Security  Council.  Today  there  is  no  African  crisis  on  which  the  EU 
takes  a  position  without  having  first  consulted  the  AU.  Joint  EU/AU/Sub-regional 
organisations'  missions  are  also  taking  place,  such  as  for  example  the  joint  mission 
with  the  Economic  Community  of  Central  African  States,  to  monitor  the  security 
situation  in  the  Central  African  Republic  in  close  connection  with  the  MICOPAX 
operation, the multinational peace force in that country. 

Good  progress  is  being  made  with  the  provision  of  EU  support  to  the  Africa  Peace  and 
Security Architecture (APSA) and the joint delivery processes is ; ongoing activities extend 
both to the AU capacity to plan, conduct, manage and deploy peacekeeping operations and to 
other  pillars  of  the  APSA  such  as  mediation  capacity,  co-operation  on  conventional 
disarmament  and  SSR  policies,  the  AU  Border  Programme,  operationalisation  of  the 
Continental Early Warning System including, possibly, through the French-UK initiative for a 
Common Interactive Watch and Anticipation Mechanism (MIVAC).  

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Good  progress  is  being  made  with  the  training  and  validation  of  the  Africa  Stand-by  Force 
(Police, Civilian, Military) with a view to its the operationalisation.. 

In this architecture the role of the regions/regional brigades is essential. The primary role of 
the regions is force preparation on behalf of the AU. Progress of the regional Stand-by Forces 
is different from one region to another. The role of AMANI Africa in this context is crucial. 
The  AMANI  Africa  exercise  aims  to  validate  the  readiness  of  the  African  Stand-by  Force 
with a command post exercise in March/April 2010. 

Last  but  not  least:  the  implementation  of  this  Partnership  is  underpinned  by  a  financial 
envelope  of  €1  billion.  With  funding  from 
the  African  Peace  Facility  (APF),  and  the 
Instrument  for  Stability,  the  EU  has  helped  the  AU  and  RECs  (Regional  Economic 
Communities)  institutions  to  equip  and  operationalise  their  Situation  Centres/early  warning 
systems as well as their capacity to plan and conduct peace support operations. APF and EU 
Member State voluntary additional contributions continued to provide substantial funding for 
AU-led  peace  support  operations  in  Sudan  (AMIS),  Somalia  (AMISOM)  and  in  CAR 
(FOMUC)  for  a  total  of  €  400  million.  A  new  Africa  Peace  Facility  financing  agreement 
under the 10th EDF for an amount of € 300 million was co-signed by the EC and the AU in 
February 2009.  

Most of the Member States recognise that the Africa-EU Partnership on Peace and Security is 
not only extremely vibrant and productive but can also play an important role in promoting 
PCD.  They  participate  actively  in  this  Partnership  through  various  types  of  activities 
supporting the implementation of the African Peace and Security Architecture, including the 
African  Standby  Forces.  A  number  of  Member  States  contribute  either  with  expertise  or 
financially  to  the  AMANI  Africa  exercise.  They  stress,  though,  that  all  actors  need  to  be 
strongly committed to using the Partnership to improve coordination and avoid duplication. A 
further  point  made  is  that  for  the  Partnership  to  be  genuinely  effective  EU  Member  States 
need to speak with one voice and that more ownership by the Africans is required.  

3.4.2.2.  Intensified cooperation 

Intensifying  cooperation  between  the  security  and  development  bodies  in  the  Council, 
Members States and the Commission is an important aspect of promoting coherence between 
the  two  policy  areas.  Progress  has  been  made  in  particular  through  improved  information 
exchange and because the Commission participates in all Council bodies dealing with Second 
Pillar security issues such as the Political and Security Committee (PSC), the Committee for 
Civilian Aspects of crisis management (CIVCOM), the Military Committee (EUMC) and its 
working groups (in this particular case since 2005, only), the Political Military Group (PMG), 
the  counter-terrorism  group  (COTER)  and  the  relevant  geographical  working  groups  of  the 
Council.. 

The Commission services and the Council secretariat have also developed closer relations at 
the policy making level. They agreed on a number of principles and orientations, reflected in 
joint  papers,  such  as  the  one  on  security  and  development  and  the  numerous  Joint 
GSC/Commission Options Paper on particular countries or regions. This approach has proved 
useful  in  facilitating  agreement  on  a  joint  policy  and  in  strengthening  the  links  between 
security and development. 

A  very  innovative  and  important  step  for  improved  coordination  and  coherence  was  the 
creation  of  a  new  common  Commission  Delegation  and  EUSR  Office  to  the  African 

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Union,  with  the  European  Commission  Head  of  Delegation  being  also  the  EU  Special 
Representative (EUSR) to the AU. Wearing these two hats, this person has responsibility for 
both security and all other areas falling under EC competence and is consequently in a better 
position to apply a coherent approach.  

At national level, more Member States have now created working groups and inter-ministerial 
units, which deal specifically with the nexus between security and development. For instance 
in  Finland,  a  working  group  has  been  established  to  develop  a  civilian  crisis  management 
strategy,  and  in  the  Netherlands  a  Fragile  State  and  Peace-building  Unit  was  created  to 
strengthen  cooperation  between  various  ministries.  Germany  and  Hungary  have  created  an 
inter-departmental  group  to  coordinate  Provincial  Reconstruction  Teams'  (PRTs)97  activities 
across ministries.  

Intensified cooperation in the Netherlands 

The  Dutch  government  has  done  a  lot  to  promote  better  cooperation  between  security  and 
development actors: 

•  Joint  planning:  the  Ministries  of  Defence  and  Foreign  Affairs  have  stepped  up  their 
cooperation  with  regard  to  the  planning  of  security  interventions.  This  has  also  been 
formalised in  the parliamentary procedure for approval of military  operations  abroad: To 
receive approval from the Dutch Parliament for military operations abroad, the Ministries 
of  Defence  and  Foreign  Affairs  need  to  jointly  plan  and  lead  integrated  security 
interventions. 

•  At  the  political  level,  the  Ministers  of  Foreign  Affairs  and  Defence  and  the  Minister  for 

Development Cooperation jointly lead integrated operations. 

•  Military, diplomatic and development staff are stationed in the field. The civilian presence 

has been expanded substantially over the last couple of years. 

•  If  possible,  an  integrated  mission  will  be  under  civilian  leadership.  The  principle  is 

‘civilian where possible, military if necessary’. 

•  Secondment  of  staff:  the  Ministry  of  Defence  has  seconded  a  military  adviser  to  the 
Ministry of Foreign Affairs and a development adviser has been seconded to the Ministry 
of Defence. 

•  Training:  there  has been a significant increase  in  joint  training  programmes,  for  example 
military personnel are trained in SSR, and the use of development funds and procedures, 
and civilian staff take part in the training programmes for military missions. 

Some  Member  States  report  major  coordination  problems  between  ministries.  Defence  and 
development ministries do not always share the same objectives and priorities, and they have 
different structures and time frames for action. But even the Member States that take a Whole 

97 

Provincial  Reconstruction  Teams  (PRTs)  consist  of  military  officers,  diplomats,  and  reconstruction 
experts.  They  work  to  provide  improved  security  and  to  facilitate  reconstruction  and  economic 
development  usually  following  open  hostilities.  PRTs  were  first  established  in  Afghanistan  and  now 
operate there as well as in Iraq. 

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of  Government  Approach  face  difficulties  implementing  it  as  mandates,  practices  and 
institutional  policies  still  differ.  Time  pressure  makes  coordination  more  difficult.  As 
immediate crisis response is often in military hands, it is a challenge to follow a more long-
term  approach  taking  into  account  aspects  such  as  security  sector  reform  or  state  building, 
especially when funds for development are already committed.  

3.4.2.3.  Short-term instruments 

The EU has launched ESDP crisis management missions in many developing countries - most 
of them being civilian missions. By building peace they provide the environment needed for 
development. 

There  is  an  encouraging  trend  towards  a  closer  cooperation  between  the  Council  and  the 
Commission on crisis management missions, notably at the planning level. Joint fact-finding 
and needs-assessment missions bringing together the Commission's assessment and planning 
teams as well as Council Civilian Response Teams (CRTs) have taken place for example in 
Guinea Bissau and in Chad in order to plan ESDP crisis management missions. It is important 
though to establish this as a routine procedure and to associate the Commission fully to both 
the  planning  and  the  implementation  phase  of  ESDP  missions  in  order  to  take  account  of 
development  concerns  and  to  ensure  that  the  missions  are  carried  out  in  line  with  the  EU 
support for the development of the country concerned. 

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The Instrument for Stability (IfS) is the Commission's main financial instrument for crisis 
management.  With  this  instrument  the  Commission  supports  conflict  prevention,  post-
conflict,  peace,  reconciliation  and  transition  processes,  which  are  often  fragile  and  need  a 
swift  response.  In  2007  and  2008  €220  million  we re  committed  for  58  actions  world  wide, 
most  of  them  in  developing  countries.  The  bulk  of  support  was  provided  in  Africa  (mainly 
Democratic  Republic  of  Congo  (DRC),  Central  African  Republic  (CAR),  Chad,  Somalia  - 
29%), followed by actions in Asia (mainly Afghanistan, Sri Lanka, Nepal, Southern Thailand, 
Aceh,  East-Timor  -  19%),  the  Middle  East  (Lebanon,  Palestine,  Iraqi  Refugees  in  Syria  – 
12%), Kosovo (€24 million) and Georgia (€17 million).  

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ESDP military missions in Chad and CAR 

The crisis management ESDP military mission in Chad and CAR is a good example of 
how the EU promotes stability and peace through measures in combination with other 
instruments, and thereby prepares the ground for development. 

In January 2008, the Council decided to launch a one-year ESDP military bridging operation 
in  Chad  and  the  Central  African  Republic  (EUFOR  Tchad/RCA)  in  accordance  with  the 
mandate set out in UN Security Council Resolution 1778 (2007). The force consisted of some 
3 700 troops provided by Member States as well as third countries. The mandate of EUFOR 
Tchad/RCA was to improve the situation of civilians by protecting them from danger and by 
facilitating  the  delivery  of  humanitarian  aid  and  the  free  movement  of  humanitarian 
personnel. The operation was part of a multidimensional effort which included a significant 
UN  component,  the  United  Nations  Mission  in  the  Central  African  Republic  and  Chad 
(MINURCAT). 

Through the Instrument for Stability, the European Commission made a contribution of EUR 
10 million to MINURCAT to finance the training, equipment and support programme for the 
deployment  of a new Chadian force composed  of policemen and gendarmes to be deployed 
inside the refugee camps and displaced persons sites in eastern Chad.  

In  addition,  the  European  Commission  and  the  Chadian  Government  agreed  on  an 
accompanying programme for the stabilisation of eastern Chad, for which an agreement was 
signed  at  the  end  of  2007.  In  2008  more  than  35 %  of  the  overall  programme  budget  (over 
EUR  10  million  from  the  9th  EDF)  was  allocated  to  operations  designed  to  facilitate  the 
voluntary return of displaced persons from temporary camps to their areas of origin. 

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These  activities  are  complemented  by  European  Commission  support  to  strengthen  the 
rule of law in Chad, in particular by supporting: 

the implementation of the inter-Chadian political agreement of 13 August 2007 (EUR 

(1) 
3 million from the 9th EDF), 

the electoral process, which has begun with a population census (EUR 5 million from 

(2) 
the Instrument for Stability), and 

(3) 
the  programme  of  reform  of  the  judicial  system  (EUR  25  million  from  the  EU,  plus 
EUR  10  million  from  the  Chadian  Government),  with  the  aim  of  holding  a  broad-based 
stakeholder conference on the judiciary. 

Through these actions, which supplement humanitarian assistance and rehabilitation activities, 
as  well  as  through  its  political  support  for  implementation  of  the  political  agreement  of  13 
August 2007 reached in the framework of the intra-Chadian dialogue, as well as the 13 March 
Dakar Agreement between the governments of Chad and Sudan, the EU helps to bring about a 
lasting stabilisation of the domestic political situation in Chad.  

Many  Member  States  are  using  Provincial  Reconstruction  Teams  (PRTs)  to  strengthen  the 
security  and  development  nexus.  The  case  of  Afghanistan  is  illustrative  of  how  Member 
States have improved their actions by promoting dual military and civilian leadership of their 
PRTs. Denmark prepared a four-year strategy in 2008, which outlined political, civilian, and 
military  efforts,  and  was  the  result  of  a  broad  consultative  process.  Similarly,  Finland  has 
created a follow-up Action Plan, which is based on a 2007 Government Report, showing that 
small-scale  security  sector  reform  projects  conducted  by  Finnish  civilian  experts  under  the 
auspices  of  the  PRTs  provide  a  good  example  of  combined  crisis  management  and 
development  cooperation,  even  if  these  development  projects  are  short  term  and  limited  in 
nature.  

This  integrated  approach  however  has  raised  concerns  on  the  humanitarian  assistance  side, 
since it has resulted in severe setbacks for humanitarian assistance, both in terms of access to 
victims and security of humanitarian workers, be they national or foreigners. 

3.4.2.4.  Long-term instruments 

Development cooperation instruments play an important role in preventing of violent conflicts 
and  building  peace.  The  Commission  has  been  taking  an  increasingly  conflict-sensitive 
approach  to  development  cooperation.  When  it  finances  traditional  development  actions  it 
carries  out  conflict  analysis  and  conflict  impact  assessments  in  order  to  avoid  any  negative 
impact but also to maximise the positive impact of non-security related actions. Through the 
mainstreaming  of  the  concept  of  conflict  prevention  in  Country  Strategy  Papers  and 
operational guidelines, training for headquarter and delegation staff and concrete projects the 
Commission addresses the root causes of conflicts such as poverty, weak governance and the 
deterioration of and unequal access to natural resources.  

In  addition,  the  Commission  increasingly  uses  development  cooperation  instruments  to 
finance security-related activities in countries where the security situation seriously hampers 
development efforts. Such security-related activities include support for political governance, 
democratisation, security sector reform (SSR), the fight against arms proliferation, mediation, 
transitional justice and measures flanking crisis management operations. In as much as these 

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security-related  activities  are  financed  with  development  cooperation  instruments  they  are 
part  of  a  comprehensive  development  and  poverty  eradication  strategy.  Coherence  with 
development objectives is therefore assured.  

With  its  work  on  governance,  and  the  promotion  of  democracy  and  human  rights,  the  EU 
makes an important contribution to preventing of situations of fragility and violent conflicts. 
Internal and external security is one of the nine sectors analysed in the countries' governance 
profiles, which inform the dialogue on partner countries' governance reform plans. Within the 
framework  of  the  10th  EDF  programming  the  Commission  granted  additional  financial 
support  –  for  a  total  amount  of  €  2.7  billion  to  countries  making  real  efforts  to  improve 
governance.  

Furthermore, the long-term component of the Instrument for Stability provides an innovative 
tool to respond, primarily through capacity building and in close consultation with beneficiary 
countries, to evolving and multi-faceted security threats and risks. Over the period 2009-2011, 
the  IfS  will  address  three  major  priorities  for  long-term  action:  (a)  Weapons  of  Mass 
Destruction  (WMD)  –  support  for  the  EU  non-proliferation  strategy,  (b)  Trans-regional 
security  threats,  many  of  which  are  interconnected,  e.g.  terrorism,  organised  crime  and  the 
trafficking  of  drugs,  human  beings,  small  arms  and  light  weapons  and  (c)  Peace-Building 
Partnership – Building capacities for effective crisis response. 

Efforts  at  the  national  level  are  complemented  by  cooperation  at  the  regional  level.  An 
example of this is the intense political dialogue that the EU has pursued with the Economic 
Community  of  West  African  States  (ECOWAS)  at  the  ministerial  level.  This  dialogue 
encompasses  all  topics  of  relevance  to  peace  and  security  in  the  region,  including  the  fight 
against  drugs,  migration  and  common  efforts  in  times  of  political  crisis.  Other  examples  of 
regional  cooperation  are  the  EU's  support  for  the  conflict  prevention  activities  of  the  Inter 
Governmental  Authority  on  Development  (IGAD),  the  Common  Market  for  Eastern  and 
Southern Africa (COMESA) and the East African Community (EAC).  

EU support for the Darfur Peace Process 

The EU engagement in the Darfur peace process is a good example of how the EU through 
its peace efforts also promotes development.  

The EU supports the joint efforts of the AU and UN to revitalise the peace process in Darfur 
and  provides  support  for  negotiations  and  related  preparatory  measures,  both  through 
diplomatic and financial means. The EU has provided support to the UN-administered ‘Trust 
Fund  for  the  AU-UN  Joint  Mediation  Support  Team  (JMST)  for  Darfur’,  through  a  €3m 
contribution from the long-term component of the IfS and contributions from various Member 
States.  Activities  supported  through  the  Trust  Fund  include  strengthening  JMST  capacity, 
facilitating  the  preparation  of  the  parties  for  negotiations,  consultations  with  civil  society, 
confidence-building measures and public information actions. In addition, the EU finances a 
number of other projects to tackle the conflict situation in Darfur, including the Justice Africa 
Programme  for  Conflict  Prevention  and  Resolution,  Confidence  Building  and  Capacity 
Building in Darfur. The EU has also backed the Darfur-Darfur Dialogue and Consultation.  

3.4.2.5.  State fragility and governance 

The  need  ensure  coherence  becomes  particularly  urgent  in  situations  of  fragility.  States  in 
fragile situations  find  it  difficult to move on to  legitimacy,  resilience,  and  peace  because  of 

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their limited resources and weak capacities. At the same time their development prospects are 
hampered by the risk of violence.  

The policy framework for addressing state fragility has been strengthened with the adoption 
of a Commission communication "Towards an EU response to situations of fragility" in 2007 
and the subsequent European Parliament resolution and Council conclusions. As follow-up to 
these  policy  documents,  and  at  the  request  of  the  Council,  the  Commission  will  present  a 
comprehensive  implementation  plan  in  October  2009.  A  number  of  exercises  will  feed  into 
and inform this plan: In six pilot cases, namely Burundi, Sierra Leone, Guinea Bissau, Haiti, 
Timor-Leste  and  Yemen,  the  Commission  and  Member  States  have  started  to  gain  practical 
experiences geared to a more strategic, better coordinated and more coherent EU response to 
the fragile situation. The Commission has also engaged in a strategic work on budget support 
in  fragile  situations  together  with  the  World  Bank,  the  African  Development  Bank  and  the 
IMF  and  has  adopted  new  guidelines  for  more  flexible  procedures  in  crisis/emergency 
situations.  

At  a  more  general  level  the  EU  has  stepped  up  its  support  for  good  and  democratic 
governance.  Governance  as  a  sector  of  cooperation  now  represents  14%  of  the  10th  EDF  as 
compared to 10% in the 9th EDF.  

Importantly  the  European  Commission  has  established  a  new  mechanism  to  promote  good 
governance with regard to ACP countries: the governance incentive tranche, which has been 
created in the framework of the Governance initiative under the 10th EDF, worth €2.7 billions. 
This  incentive-based  mechanism,  aims  at  granting  additional  financial  support  to  countries 
adopting or ready to commit themselves to a plan that contains ambitious, credible measures 
and  reforms.  This  mechanism  is  supported  by  governance  profiles  established  for  each 
country.  A  similar  mechanism,  the  Governance  facility  worth  €300  million  for  the  period 
2007-2013  has  been  established  for  countries  covered  by  the  ENPI  in  order  to  support  the 
work  of  those  partners  who  have  made  most  progress  in  implementing  the  agreed  reform 
agenda set out in their Action Plan. 

3.4.2.6.  Fight against illegal spread and accumulation of fire arms 

Small  arms  and  light  weapons  (SALW)  are  responsible  for  the  majority  of  direct  conflict 
deaths.  An  estimated  60  to  90  percent  of  all  direct  conflict  victims  are  killed  with  SALW. 
Recognising  the  seriousness  of  the  situation  the  EU  adopted  a  strategy  to  combat  illicit 
accumulation and trafficking of small arms, light weapons and their ammunition in 2005.  

In implementing this strategy the EU has long been financing several projects mainly at the 
regional level. Currently, the Commission manages three major regional projects in Western, 
Central and Eastern Africa aimed at reinforcing regional capacity to fight the proliferation of 
SALW.  

In addition the EU has stepped up its efforts to address small arms issues politically. SALW 
issues  are  included  in  the  political  dialogues  that  the  EU  conducts  with  third  countries  and 
international organisations. In 2008, the EU adopted a reference SALW article to be inserted 
in relevant agreements with third countries. This article will offer the legal basis for enhanced 
cooperation  in  combating  the  illicit  trade  and  excessive  accumulation  of  SALW  and  their 
ammunition. 

German Small Arms and Light Weapons (SALW) Control Project in Cambodia  

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Implementing  its  interdisciplinary  Action  Plan  on  ‘Civilian  Crisis  Prevention, 
Conflict  Resolution  and  Post-Conflict  Peace-Building’,  Germany  is  carrying  out  a 
project  on  Small  Arms  and  Light  Weapons  Control  and  Improved  Storage  of 
Ammunition  and  Explosives  in  Cambodia.  The  project  is  inter-ministerial:  The 
project component regarding safe storage and stockpile management is carried out in 
cooperation  with  the  Armed  Forces,  who  are  responsible  for  the  training  on  the 
management and security of public stockpiles of weapons. GTZ is the implementing 
partner on the ground, and overall coordination and funding lies with the Ministry of 
Foreign Affairs.  

As regards arms trade in general the EU is a fervent advocate of a legally-binding Arms Trade 
Treaty to regulate the licit trade in arms in order to ensure that they are not diverted from their 
officially  indicated  purpose.  On  19  January  2009  the  Council  adopted  a  decision 
(2009/42/CFSP)  on  support  for  EU  activities  in order  to  promote  among  third  countries  the 
process  leading  towards  an  Arms  Trade  Treaty,  in  the  framework  of  the  European  Security 
Strategy. 

To better control its own arms exports the EU adopted a Common Position 2008/944/CFSP in 
December 2008 strengthening the EU's arms export control standards. The Common Position 
constitutes  a  significantly  updated  and  upgraded  instrument  which  replaces  the  Code  of 
Conduct. It includes several new elements, which deepen and widen the scope of application. 
These  elements  include  the  extension  of  controls  to  brokering,  transit  transactions  and 
intangible transfers of technology, as well as the implementation of strengthened procedures 
in order to harmonise Member States' export policies. 

In  comparison  to  2007,  more  Member  States  have  taken  criterion  8  of  the  2008  Council 
Common  Position  on  arms  export  control  criteria  on  board,  which  calls  for  scrutiny  by 
development departments before licences for weapon exports to developing countries can be 
granted (UK, Lithuania, Netherlands, Sweden). Some Member States are in favour of signing 
an international Arms Trade Treaty (Finland, Netherlands).  

3.4.2.7.  Corruption, organised crime and terrorism 

The  2005  EU  counter-terrorism  strategy  and  the  2005  drugs  strategy  and  their  respective 
action plans identify these security threats as obstacles to development. 

Corruption is a symptom of failure of the broader system of governance. Fighting it therefore 
involves  consolidation  of  a  State's  capacity  to  assume  its  full  functions.  That  is  why  the 
European  Commission  endeavours  to  mainstream  good  governance  principles  including 
transparency, accountability and organisational adequacy into the design and implementation 
of EU-funded programmes. 

Likewise, organised crime and terrorism are not necessarily addressed as such but support is 
increasingly provided through the broad sector reform programmes in the areas of justice 
and  security,  Security  Sector  Reforms  (SSR).  This  includes  police  reform,  justice  reform, 
reform  of  the  penal  system,  integrated  border  management  programmes.  The  EU  supports 
projects  and  programmes  to  tackle  the  trafficking  in  drugs  along  the  heroin  (Central  and 
South-west  Asia)  and  cocaine  (Latin  America,  the  Caribbean  and  West  Africa)  routes, 
trafficking in human beings in the Black Sea basin and the Western Balkans, organised crime 
in  the  Sahel  region,  terrorism  worldwide  and  specifically  in  Africa,  as  well  as  threats  to 
critical maritime routes in South-east Asia and the Indian Ocean. 

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As cooperation in these fields is financed through the development cooperation geographical 
instruments it is necessarily more in line with development and cooperation priorities of our 
partners.  Complementing  these  cooperation  activities,  the  Instrumenet  for  Stability  (through 
its long-term component) addresses trans-regional aspects of these issues. 

In  addition  to  financial  support,  the  issues  of  small  arms,  organised  crime,  terrorism  and 
corruption  are  addressed  in  the  framework  of  the  political  dialogue  with  almost  all  partner 
countries. This has led in many instances to the inclusion ofspecific provisions in agreements 
with third countries. 

3.4.2.8.  Role of women in peace processes 

Gender has become an integral element of analysing  conflict situations and  setting strategic 
objectives of ESDP missions and training on gender issues is becoming a routine part of the 
mission  training  curriculum.  The  framework  for  implementing  UN  Security  Council 
Resolutions (UNSCR) 1325 and 1820 in the context of ESDP is  now fully integrated in the 
documents and procedures.  

In  2008,  the  Commission  and  the  Council  Secretariat  jointly  elaborated  an  “EU 
Comprehensive  Approach”  for  the  implementation  of  UNSCR1325  and  1820  on  women, 
peace  and  security,  a  document  that  focuses  on  the  role  and  obligations  of  a  regional  actor 
such as the EU in protecting women in conflict situations and in facilitating their pro-active 
role  as  peace-builders.  The  Comprehensive  Approach  is  complemented  by  the  document  of 
the  Council  Secretariat  entitled  “Implementation  of  United  Nations  Security  Council 
Resolution (UNSCR) 1325 as reinforced by UNSCR 1820 in the context of ESDP”.  

Despite  these  efforts,  the  recent  Report  on  the  Implementation  of  the  European  Security 
Strategy sees room for improvement and emphasises the need to better design ESDP missions 
and operations in line with UNSCR 1325.  

A  number  of  Member  States  have  made  progress  in  incorporating  UNSCR  1325  into  their 
security  and  development  policies.  Belgium,  Denmark.  Sweden,  Portugal  and  Finland  have 
revised, developed or are developing Action Plans, often joint efforts of ministries, academia 
and  civil  society,  to  strengthen  a  holistic  approach  drawing  on  UNSCR  1325.  Finland, 
together with a number of countries, is preparing a study on best practice and lessons learnt in 
PRTs in Afghanistan, concerning the implementation of UNSCR 1325.  

Gender  mainstreaming  thus  becomes  a  common  principle  in  both  security  and  development 
policies. 

3.4.3.  Conclusions & Outstanding Issues 

The EU has made progress towards increased coherence between security and development. It 
supports  peace  processes  in  many  developing  countries  politically,  financially  and  with 
military  means.  However  as  acknowledged  in  the  Report  on  the  Implementation  of  the 
European Security Strategy, endorsed by the European Council in December 2008, there is a 
need to further strengthen coherence. 

At  EU  level,  the  pillar  structure  still  impedes  coherent  action  between  military  and 
development  components.  The  different  services  of  the  Commission  and  the  Council  keep 
each other mutually informed, but there is room  for  further  improving  the  inter-institutional 
co-ordination,  planning and  decision-making processes. Proper sequencing  and coordination 

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of  EU  activities  are  particularly  important  as  well  as  alignment  with  partner  country 
initiatives.  Also,  the  EU  should  increase  its  efforts  to  speak  with  one  voice.  The  Africa-EU 
Strategic Partnership on Peace and Security is clearly a milestone on the way towards more 
PCD. 

Member States rate the EU’s success in promoting PCD in the area of security as average to 
good (see chart below98). Some point out that joint fact-finding and evaluation missions have 
become  the  rule  rather  than  the  exception.  Yet  several  Member  States  repeat  the  criticism 
raised  in  the  2007  report,  concerning  the  coordination  between  Pillar  I  and  Pillar  II.  They 
argue that ESDP missions and assistance programmes need to be coordinated better. Among 
the different Council  formations, coordination  ought to be improved and an ‘early warning’ 
mechanism is needed for looming conflicts. The lack of integrated financial means to support 
EU  actions  also  causes  major  concerns.  Moreover,  the  lack  of  flexibility  in  the  use  of 
Community funds is criticised.  

Member  States  individually  have  also  made  progress.  Many  of  them  have  developed  new 
policy frameworks since 2007, and inter-ministerial coordination has also increased. Member 
States  which  have  developed  and  implemented  inter-ministerial  approaches  to  security  and 
development  report  a  higher  success  rate,  which  has  encouraged  them  to  promote  PCD 
further. However, coordination problems are not limited to the European level. Member States 
stress that the actions of individual Member States in conflict zones need better coordination.  

Overall, in the area of security, Member States are very engaged at national, European and (in 
a  majority  of  cases)  also  at  the  international  level  with  a  view  to  promoting  PCD.  Most 
Member States see the clear added value of cooperation at EU level, which they still want to 
improve.  In  particular,  Member  States  are  committed  to  the  Partnership  on  Peace  and 
Security, also because they consider that it can improve coordination within the EU and with 
African partners. 

As called for in the 2007 Council conclusions on security and development and with a view to 
implementing these guidelines, the Commission and the General Secretariat of the Council in 
close cooperation with Member States, have been preparing an Action Plan to be endorsed in 
2009.  The  Action  Plan  provides  an  opportunity  to  explore  concrete  ways  in  which  the 

98 

Chart  based  on  Member  States'  responses  to  a  dedicated  PCD  2009  questionnaire  prepared  by  the 
European Commission. 

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coherence, efficiency and visibility of EU external policies and actions can be improved in the 
four  key  areas  suggested  in  the  Council  Conclusions:  strategic  planning  in  Brussels  and 
Member States capitals, Security Sector Reform, partnerships with regional and sub-regional 
organisations,  and  the  relationship  between  humanitarian  aid  and  security.  In  order  to 
effectively  support  peacebuilding  and  statebuilding  objectives,  the  EU  actors  from  different 
policy  communities  need  to  strengthen  joint  approaches.  The  Implementation  Plan  for 
Fragility, also to be issued in 2009, will make additional recommendations in these areas. 

To enhance the coherence of security policy with develoment objectives further the following 
points are particularly important: 

Outstanding Issues 

•  The need to associate the Commission fully to the planning and implementation phase of 
ESDP  missions  in  order  to  take  account  of  development  concerns  and  improve  the 
integration of civil, police and military components. 

•  Security Sector reform (SSR) has been identified as one of the key areas of relevance in the 
security and development nexus. The EU should develop a common SSR policy as well as 
guidelines  defining  the  roles  and  responsibilities  of  the  Commission  and  the  ESDP  in 
supporting SSR in partner countries.  

•  Strengthen  the  partnership  approach  in  security  operations  by  assessing  with  partner 
countries the causes of conflict in order to produce effective mandates for peace operations 
and to improve the security/development nexus at country level  

•  In  fragile  situations,  the  focus  of  development  cooperation  should  be  on  the  building  of 
resilient  States  that  can  provide  for  the  security  of  their  population  and  sustainable 
development.  A  "Whole  of  EU"  approach,  bringing  security,  development,  humanitarian 
and other actors together in an overarching coherent strategy is of great importance.  

•  Continue  to  promote  the  idea  of  developing  and  adopting  a  legally-binding  Arms  Trade 

Treaty to regulate the licit trade in arms 

•  Strengthen  the  African  Union  and  Regional  Economic  Communities’  peacekeeping 
capabilities for African-led peace support operations by providing flexible, predictable and 
long-term  funding;  operationalising  the  African  Peace  and  Security  Architecture  (APSA) 
and  the  African  Standby  Force  (ASF);  improving  capacity-building  efforts  and  in 
particular  addressing  the  training  needs  of  the  ASF  as  jointly  identified  with  African 
partners. 

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3.5. 

Agriculture  

Quick Facts 

•  As  a  result  of  the  financial  and  economic  crisis,  estimates  brings  the  total  number  of 
malnourished people to about 963 million, near 15% of the world population (OECD/FAO 
High Level Meeting on Investing in Food Security in a Global Economy – May 2009) 

•  Around 450 million farmers in the world exploit less than 2 hectares of land. With their 
families  they  represent  1/3  of  the  world's  population  (UN’s  International  Fund  for 
Agricultural Development - 2008) 

•  In Sub-Saharan Africa, approximately 72% of arable land is classified as degraded (FAO 

- 2006) 

•  In 1960, the average  hectare of arable land supported  2.4  persons. By 2005 this figure 
had increased to 4.5 persons per hectare and by 2050 a single hectare of land will need to 
support between 6.1 and 6.4 people (FAO -2009) 

•  The  rate  of  growth  in  agricultural  productivity  is  declining:  it  has  averaged  2.3%  a  year 
since  1961,  but  is  expected  to  fall  to  1.5%  between  now  and  2030  and  drop  further  to 
0.9% between 2030 and 2050 (FAO – 2009)  

•  The  EU  imports  close  to  €59  billion   worth  of  agricultural  products  from  developing 

countries annually (European Commission - 2008) 

3.5.1. 

Introduction 

Agricultural  and  rural  development  are  fundamental  to  the  European  Union's  objectives  of 
reducing  poverty,  increasing  food  security  and  protecting  natural  resources.  Achieving  the 
Millennium Development Goals (MDGs) of eradicating hunger and cutting poverty by half by 
2015 is paramount. However due to the food prices and energy crises in 2007-2008, meeting 
the target will be difficult especially given the impact of the current financial and economic 
crisis. The European Union is the main trading partner of developing countries, with higher 
annual imports into the EU higher than the other five other major importing countries taken 
together99. Therefore, the EU's approach towards its agricultural and rural development policy 
influences significantly its partners' development policies. 

99 

The US, Japan, Canada, Australia and New Zealand. 

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Source: United Nations Database (COMTRADE) 

Notwithstanding  the  differences  among  the  economic  and  labour  market  structures  of 
developing countries, agriculture continues to be the main source of income and employment 
for rural populations. More than 50% of the population in developing countries (over 70% in 
Sub-Saharan Africa) works in the agricultural sector. While on average  it  only  accounts for 
less than 10% of the GDP in developing countries, it represents approximately 40% in Sub-
Saharan Africa100. Furthermore, three quarters of the world's economically poor live in rural 
areas.  

In  2007  and  early  2008  agriculture  and  food  security  were  placed  higher  on  the  political 
agendas  of  development  cooperation,  especially  within  the  three  UN  Rome-based  agencies 
and the G8 context. However the relationship between Agriculture, Trade and Development is 
complex and situations and circumstances vary a lot from one country to another. As a result, 
the  impact  of  EU  Agriculture  policies  on  the  developing  countries'  food  equation  (see  box 
below) will vary.  

The food price crisis has sent shock waves across the globe: cereals prices have increased and 
the era of cheap food seems over. A combination of negative supply side shocks (particularly 
high  oil  prices)  and  positive  demand  side  effects  (increased  demand  from  emerging 
economies  stimulated  by  changing  consumption  patterns)  means  that  higher  food  prices  are 
likely to remain a reality in the foreseeable future. As a reduction in consumption worldwide 
is unlikely, supply side adjustments will be necessary if the steep upward trend in agricultural 
prices is to be contained. Increasing acreage worldwide and raising productivity, especially in 
developing  countries,  should  be  at  the  top  of  the  agenda.  However  the  new  global 
environment  also  requires  the  adaptation  of  existing  EU  policies:  the  CAP  is  already  being 
tailored to the new challenges. 

The Food Equation 

Historically,  agricultural  policies  in  the  developed  world  have  influenced  world  markets 
through  low-priced  food  exports  which,  in  developing  countries,  have  helped  feed  at  an 
affordable  cost  a  growing  urban  population  whose  demand  remained  unmet  by  local 
production capacities. Domestic agriculture access to these local urban markets was therefore 

100 

World Bank Annual Report 2008  

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77 

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reduced,  further  isolating  rural  areas  from  urban  growth  centres  and  modern  economic 
circuits.  

Recent high food prices have caused a number of urban riots in many developing countries as 
a result of food becoming less affordable for various pockets of the population. Higher prices 
do not however always result in an increase of agricultural production in affected countries101. 
Along  the  food  chain,  the  transmission  of  higher  market  prices  to  farmers  in  developing 
countries is far from being mechanical, nor automatic. Indeed, small farmers do not usually 
set the prices as these are determined by stronger forces in the value chain. 

Following  rapid  urbanisation  in  developing  countries  the  growth  of  supermarkets  is  playing 
an important role vis-à-vis the agricultural sector102. While already of importance in Asia and 
Latin  America,  the  process  is  starting  in  some  African  countries  with  nascent  urban  middle 
class  (Kenya,  Zambia,  Tanzania,  Uganda,  Mozambique,  Angola….).  As  supermarkets  are 
generally supported by transnational corporations, procurement takes place at a global level, 
usually  using  medium  to  large  companies  that  can  deliver  large  volume  of  goods  meeting 
international  standard  of  quality  and  safety.  Those  are  mainly  in  developed  countries  where 
productivity  is  much  higher.  Small  processing  and  food  manufacturing  firms,  the  most 
common form of enterprise in developing countries, run the risk of being excluded from these 
new market opportunities, unless they adjust to new market realities. 

While the food equation emphasises domestic procurement as a driver of domestic economic 
growth,  to  be  accompanied  by  public  policies  in  developing  countries  as  well  as  through 
corporate  effort  to  fulfil  social  responsibilities  and  support  farmers'  organisations,  it  also 
highlights  the  need  to  reduce  further  market-distorting  measures  in  developed  countries' 
agricultural  policies.  However,  the  critical  productivity  gap  between  developed  and 
developing  countries'  farming  systems  will  remain  at  the  heart  international  trade  in 
agricultural goods in the absence of a modified food security equation comprising an adequate 
mix of well-targeted social programmes and sound agricultural policies. 

3.5.2.  Progress toward PCD Commitments 

3.5.2.1.  EU Response to the 2008 Food Crisis  

The EU has been at the forefront of the search for international solutions to the problem of 
hunger  in  2007  and  2008.  Through  the  Health  Check  of  the  Common  Agriculture  Policy 
(CAP) and the mobilisation of its external cooperation instruments, the EU has contributed to 
tackling  the  crisis  and  demonstrated  its  strong  commitment  to  poverty  reduction  and  food 
security in developing countries, particularly in times of economic turmoil. 

101 

102 

Outstanding issue from the 2007 EU report on PCD. The effects of price increases are to be balanced: 
high prices "are beneficial for many commercial producers in both developed and developing countries. 
However,  many  farmers  in  developing  countries  are  not  linked  to  markets  and  will  draw  little  or  no 
benefit from currently higher prices" (FAO Outlook 2008). In addition, the poor, and in particular the 
urban  poor  in  net  food-importing  developing  countries,  will  see  their  purchasing  power  affected 
dramatically. As in many low-income countries, food expenditures average over 50% of income, higher 
prices  are  likely  to  lead  to  growing  food  insecurity  and  undernourishment.  Conversely,  lower  prices 
may  help  urban  poor  to  access  food  but  will  also  put  pressure  on  the  sustainability  of  domestic  food 
production and reduce profitability 
Outstanding issue from the 2007 Report on PCD 

EN 

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While the reasons for the food prices crisis are numerous103, it is clear that the world's food 
needs  are  growing,  and  EU  farmers  must  be  free  to  supply  agricultural  products.  The  2008 
CAP Health Check contributed to easing the global pressure on food prices by abolishing the 
requirement  to  “set  aside”  a  portion  of  arable  land,  by  enlarging  milk  production  quotas  to 
prepare for their eventual removal in 2015 and by scrapping the energy crop subsidies of €45 
per  hectare  to  increase  market  orientation  of  agricultural  production  and  remove  distortion 
between food, feed and energy uses. 

In the course of 2008, the European Union responded to the challenges of food price increases 
in  various  ways.  First,  an  additional  €140  m illion  was  provided  for  humanitarian  purposes. 
Second,  where  feasible  development  cooperation  instruments  were  mobilised,  leading  to  an 
additional €250 million 104. Third, following a proposal by the European Commission in July 
2008, the EU established a €1 billion Food Facility (2009-2011) for rapid response to soaring 
food  prices  in  developing  countries105.  The  Food  Facility  supports  measures  in  developing 
countries that aim to encourage a positive supply response from the agricultural sector and to 
increase  safety-net  measures  for  alleviating  the  difficulties  faced  by  the  most  vulnerable 
populations as regards access to food in the medium term. 

In  addition,  the  EU  continues  to  attach  great  importance  to  ensuring  that  the  Food  Aid 
Convention (FAC) plays an important role as an expression of solidarity with people in need. 
However, there is a need to increase efficiency, impact and effectiveness of food assistance. 
Food aid should be used only as a short-term instrument in emergencies which are identified 
by an objective and credible needs assessment. A variety of assistance tools are being utilised 
that enable a transition to longer-term development. With this in mind, the EU is pushing for 
renegotiation  of  the  Convention.  Preparatory  work  took  place  through  informal  discussions 
with FAC members on the objective, scope and function of the current and a potential future 
Convention. 

3.5.2.2.  The Common Agricultural Policy 

In a world of increased market volatility, compounded by the yield fluctuations brought about 
by climate change, the Common Agricultural Policy (CAP) provides a basic level of income 
security  for  EU  farmers,  a  framework  for  good  management  of  the  natural  environment  in 
which agriculture takes place, as well as support for  the  development of  rural  communities. 
The EU has carefully steered the CAP to keep it facing unfolding challenges such as the need 
to sharpen the farm sector’s competitive edge, to fend off environmental problems or respond 
to  the  food  crisis.  The  Union  also  transposes  the  principles  of  the  reformed  CAP  into  the 
international  context,  looking  for  ways  to  underpin  trade  considerations  and  global  food 
security. The CAP has changed over the last years and a debate has already been launched the 
CAP post-2013.  

Sugar Reform and Accompanying Measures 

103 

104 

105 

Reduced food production worldwide, low stock levels worldwide, increasing demand world wide due to 
the  development  of  a  strong  middle  class  in  some  poor  and  emerging  countries,  ill  conceived 
agricultural policies in developing countries, limited yield increase since the 90's, diversion of food crop 
to  alternative  use  (biofuels),  drought  and  environmental  hazard  affecting  production,  financial 
speculation, increasing protectionism by a number of food-exporting countries….) 
€ 50 million from the Food Security Thematic Programme, targeted at 12 developing countries; and € 
200 million from the EDF10 B-enveloped, targeted at 30 ACP countries. 
Regulation (EC) No 1337/2008, 16.12.2008. 

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79 

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Since  1975  the  EU  has  provided  preferential  access  to  its  market  for  sugar  imported  from 
some  ACP  countries  (and  India)  in  the  framework  of  the  "Sugar  Protocol",  an  agreement 
between  20  ACP  countries  and  the  EU  under  which  the  Community  undertook  to  import  a 
fixed quantity of sugar duty-free, at a guaranteed price.  

In  2006,  a  far-reaching  reform  of  the  sugar  market  organisation  was  adopted,  including  a 
reduction of EU internal prices. Taking into consideration development concerns, and as part 
of  the  process  of  adapting  to  the  effects  of  this  reform,  the  Sugar  Protocol  countries  are  to 
benefit  from  €1.284  billion  in   accompanying  measures  over  the  period  2006-2013.  These 
measures  aim  at  strengthening  the  competitiveness  of  the  sugar  sector  where  this  is  a 
sustainable  process,  or  supporting  the  development  of  alternative  economic  activities  and 
improving social resilience. In addition, after the "Sugar Protocol" expires the ACP countries 
will  benefit  from  wider  access  to  the  EU  market:  EPAs  provides  for  duty-free  quota-free 
access to the EU market as from 1 October 2009. Competitive ACP and LDC countries will 
be able to expand their exports to the EU market and generate additional revenue.  

•  The CAP Health Check 

Discussions  about  the  Health  Check  of  the  CAP  in  2008  have  been  conducted  against  a 
backdrop of volatile agricultural prices. By 2007, it was time for a review of the 2003 CAP 
reform  implementation106  for  a  number  of  reasons.  First,  the  EU  had  gained  experience  of 
putting into practice the reforms agreed in 2003. Secondly, agricultural markets had continued 
to  develop  as  globalisation  spread  and  intensified.  Thirdly,  it  was  necessary  to  pay  closer 
attention  to  exacerbating  challenges  such  as  climate  change,  biodiversity  and  water 
management. These considerations inspired the CAP Health Check, a package of adjustments 
agreed  in  November  2008  which  kept  the  CAP  true  to  the  spirit  of  the  2003  reforms  in 
changing circumstances and prepared the ground for the post-2013 CAP.  

The EU and Cotton: Marginal Producer, Important Partner 

Subsidies  for  cotton  producers  in  Spain  and  Greece  are  often  discussed  from  a  coherence 
perspective. Both Spain and Greece are entitled to provide support to their cotton farmers as 
part  of  the  accession  agreements  for  both  countries  (1981,  1986).  As  a  result  of  the  EU's 
reform of its cotton regime in 2004 -applied from 2006- cotton support was largely decoupled 
from  production.  Following  this  reform,  the  cotton  area,  the  production  levels,  and  the 
average  yields  in  the  EU  decreased,  the  latter  due  to  generally  less  intensive  production 
methods. Currently, total EU production is estimated at less than 1.3% of world production. 
Moreover, the EU market is completely open and there are no export subsidies.  

Furthermore, the EU supports the cotton sector in Africa through the EU-Africa Partnership 
on  Cotton  which  seeks  to  boost  the  competitiveness  of  African  cotton  and  to  lessen 
stakeholders' vulnerability. The Commission and the EU Member States have supported this 
Partnership with projects and programmes of a value of more than € 300 million. 

106 

As foreseen by a series of review clauses included in the Regulation (EC) 1782/2003. 

EN 

80 

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In order to make farming more market-orientated, the Health Check provides for decoupling 
of  a  greater  share  of  farmers'  income  support  payments.  It  has  also  removed  constraints  on 
farmers’ freedom to produce more in response to market demand.  

As a result, bulk of EU support is no longer or is only minimally trade-distorting: more than 
90%  of  direct  payments  are  now  decoupled.  Income  support  in  the  form  of  decoupled 
payments,  as  opposed  to  incentives  for  production,  does  not  influence  farmers'  production 
decisions. . A safety net is needed only to support farmers if prices collapse. For commodities 
where  coupled  payments  were  kept  mainly  for  environmental  reasons  avoiding  land 
abandonment (e.g. beef, sheep, goat meat) the impact on developing countries is small as the 
EU plays a minor role on international markets in these sectors. 

Bananas: duty-free and quota-free 

The  EU  is  the  largest  consumer  and  importer  of  bananas  in  the  world.  About  80%  of  EU 
imports come from Latin America and 20% from ACP countries. The EU is the destination 
for  practically  all  ACP  banana  exports.  Since  1  January  2006,  the  "Everything  But  Arms" 
initiative  grants  duty-free  quota-free  access  for  bananas  from  Least  Developed  Countries 
(LDCs) to the EU market. All non-LDC ACP banana exporters concluded negotiations on a 
full  or  interim  EPA  at  the  end  of  2007  and  therefore  benefit  from  duty-free  and  quota-free 
access under the EPA trade regime. In 2008, banana imports from ACP countries into the EU 
grew by 9.7% compared to 2007 levels. 

•  Export Subsidies 

In 1980, export subsidies and market support took up the whole CAP budget. By contrast, in 
2007,  export  subsidies  and  market  support  represented  just  over  10%  of  the  budget  with 
export subsidies now representing less than 2% of the CAP budget. From 2005 to 2009, the 
EU halved the export  subsidy  rate  for  beef. It has paid no export  subsidies on cereals since 
September 2006 or on sugar since October 2008. Export subsidies for fruit and vegetables and 
for wine have also been abolished following the reforms of those sectors. Moreover, under the 
Economic  Partnership  Agreements  (EPAs)  framework  (for  example,  with  CARIFORUM, 
Central  Africa,  Pacific),  the  EU  undertakes  to  phase  out  all  existing  subsidies  granted  upon 
exportation of the agricultural products liberalised by the ACP countries. 

EN 

81 

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By  2007,  the  EU  had  cut  export  subsidy  rates  to  zero  for  all  dairy  products.  The  re-
introduction of export refunds for dairy products in January 2009 is a response to a dramatic 
60%  decrease  in  world  market  prices,  resulting  from  shrinking  demand  and  the  impact  on 
farmers' revenues. However, limits in terms of volume and price on these export refunds were 
established, at levels which do not fully bridge the gap between EU and world market prices, 
thus ensuring a limited impact on world market prices. Notwithstanding this, the EU remains 
committed to phasing out export subsidies in the framework of the WTO's Doha Development 
Agenda  –  subject  to  parallel  commitments  for  other  types  of  export  subsidies  from  other 
developed countries.  

Export refunds along Products (Mio ECU/EURO)

10.000

8.000

6.000

4.000

2.000

0

Cereals

Sugar

Dairy

Beef

Others

Source : European Commission (DG Trade) 

Further  CAP  reform  will  have  to  pay  careful  attention  to  the  food  equation  of  developing 
countries.  Policy  mechanisms  are  needed  to  help  the  EU  farming  sector  to  adapt  to 
competitive  pressure  on  open  world  markets  and  to  enhance  the  farmers'  ability  to  respond 
swiftly to world demand, preventing imbalances on global markets which would have adverse 
effects on populations in poor countries. The debate on the CAP post 2013 reforms needs to 
take  into  consideration  this  complex  equation.  Benefits  for  EU  producers  and  consumers 
should not be against those of producers and consumers in developing countries. 

3.5.2.3.  Trade-Related Issues  

•  EU Position in the WTO  

Despite progress throughout 2007-2008, the WTO Ministerial of July 2008 failed to reach an 
agreement.  Therefore,  the  opportunity  to  cut  barriers  to  trade,  open  up  agricultural  markets 
further and boost the global economy was missed.  

The  EU  will  continue  to  defend  progressive  liberalisation  as  proposed  in  the  draft  DDA 
modalities. The EU proposes a substantial reduction of trade-distorting domestic supports, the 

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82 

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elimination of export subsidies by 2013 and a substantial opening of the developed countries' 
markets.  This  would  help  to  achieve  a  level  playing  field  in  agriculture  worldwide.  At  the 
same  time,  a  lot  of  flexibility  is  given  to  developing  countries  to  ensure  that  trade 
liberalisation does not impact negatively on their domestic markets. In particular, LDCs will 
not  have  to  make  any  duty  reductions  and  the  duty  reductions  envisaged  for  developing 
countries in general are less than those for developed countries and with longer implementing 
periods.  In  addition,  developing  countries  will  be  entitled  to  designate  up  to  12  %  of 
agricultural  products  as  Special  Products  with  no  or  reduced  tariff  cut  to  address  food 
security,  livelihood  security  and  rural  development  concerns.  A  Special  Safeguard 
Mechanism  is  also  established  to  allow  developing  countries  to  temporarily  increase  their 
tariffs in order to protect their agricultural sectors from import surges and sharp reductions of 
import prices.  

Another delicate issue is the discussion on preference erosion and tropical product treatment 
where  two  blocs  of  developing  countries  have  conflicting  interests:  while  Latin  American 
countries support full liberalisation of tropical products, ACP countries wish to preserve the 
value of their preference margin on the EU and US market. The EU favours an understanding 
between  these  two  sets  of  countries,  conceding  the  necessary  time  for  the  beneficiaries  of 
preferences  to  adjust  and  gain  competitiveness  while  not  opposing  the  necessary  trade 
liberalisation the Doha Development Agenda should deliver as a final result. 

•  Sanitary and Phytosanitary (SPS) measures 

As  tariff-barriers  have  been  eroded,  non-tariff  barriers  have  become  relatively  more 
important, such as Technical Barriers to Trade (TBT) and SPS measures. At multilateral level 
the  WTO  SPS  Committee  has  taken  due  action  following  the  Doha  WTO  Ministerial  to 
address the needs of developing countries. The Standards and Trade Development Facility has 
been  created  to  provide  for  coordinated  capacity-building  activities  in  order  to  allow 
developing countries to meet international SPS standards, both public and private.  

The  European  Commission  has  supported  the  participation  of  developing  countries  to  the 
meetings  of  the  World  Organisation  for  Animal  Health,  the  International  Plant  Protection 
Convention  and  Codex  Alimentarius  Commission  (FAO  and  WHO)107.  It  has  provided 
financial support to the tune of €675 000 each  year. The contributions from the Commission 
and  from  EU  Member  States  represent  about  70%  of  the  total  available  funds  for  such 
purpose.  In  addition  a  specific  EC-funded  assistance  project  was  started  in  2009  to  allow 
African  countries  to  prepare  for  and  participate  efficiently  in  international  standards  setting 
bodies108. 

3.5.2.4.  Development Policies in support of Agriculture in Developing Countries  

At  EU  level,  support  for  agriculture  followed  multiple  tracks  and  also  the  global  trend  of 
ODA  reduction  in  favour  of  this  sector.  The  allocations  to  Rural  Development,  Agriculture 
and Food Security (reaching 1.2 billion €) fo r 2007-2013 reversed the trend with a doubling 
of the overall funding compared to previous commitments.  

107 
108 

Outstanding issue from the 2007 EU Report on PCD. 
Participation  of  African  Nations  in  Sanitary  and  Phytosanitary  Standard-setting  Organisations  (PAN-
SPSO) 

EN 

83 

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In May 2007 the Commission adopted the food security thematic strategy and its multi-annual 
indicative programme 2007-2010. This strategy plays a central role in the implementation of 
EU  food  security  policy  which  complements  the  humanitarian  and  the  geographical 
approaches,  in  crisis  situations  and  in  development  contexts.  It  also  allowed  supporting  the 
strategic lines of the Communication Advancing African Agriculture109 adopted in July 2007.  

In  Africa,  the  Commission  is  highly  supportive  of  the  Comprehensive  African  Agricultural 
Development  Programme  with  a  strong  focus  on  building  the  capacities  of  farmers' 
organisations  involved  and  regional  institutions  as  well  as  the  African  Union  Commission 
(AUC).  The  Commission  also  continued  its  work  on  implementing  the  2004  EU  Land 
Guidelines110,  continuing  its  dialogue  with  major  actors  such  as  the  AUC,  the  World  Bank, 
FAO111, the International Land Coalition and the Commission for the Legal Empowerment of 
the Poor. In 2007, the Commission fully restored its partnership with the Consultative Group 
on International Agricultural Research (CGIAR) and strengthened its cooperation with IFAD.  

In  addition,  the  Commission  welcomes  and  supports  the  proposal  to  set  up  a  Global 
Partnership for Agriculture and Food Security, which seeks to address the multifaceted issues 
of agricultural development and food security through an inclusive consultation process for all 
actors  (developed  and  developing  countries  as  well  as  non-state  actors)  taking  place  in  the 
framework  of  the  FAO  Reform,  namely  the  reform  of  the  Committee  on  Food  Security. 
Farmers' organisations in both the EU and the developing countries have an important role to 
play  in  this  Partnership  and  the  CAP  experience  could  contribute  to  enriching  the  debate 
about elaborating and implementing regional agricultural policies throughout the developing 
world. 

At  Member  State  level  ,  agriculture  cooperation  has  continued,  with  Policy  Coherence  for 
Development  in  mind.  The  Netherlands  for  example,  developed  a  Joint  Strategy  on 
Agriculture,  Rural  Economic  Development  and  Food  Security  in  Developing  Countries,  co-
designed  by  the  Ministries  of  Agriculture,  Nature  and  Food  Quality  and  the  Ministry  of 
Development  Cooperation.  €350  mill ion  have  been  committed  to  implement  the  strategy. 
Hungary for its part prepared a national strategy on agricultural research and innovation with 
an  international  component  addressing  development  issues.  Greece  was  also  involved  in 
development  programmes  through  support  for  the  optimisation  of  cultivation  systems  for 
olive  oil  in  Palestine  and  the  creation  of  agricultural  schools  with  geo-information 
technologies  in  Egypt.  Sweden  undertook  to  support  a  capacity-building  project  within  the 
International Treaty on Plant Genetic Resources for Food and Agriculture. The objective is to 
help assist the development of improved legislative tools for the operation of the Multilateral 
System of Access and Benefit-sharing of plants.  

3.5.3.  Conclusion & Outstanding Issues  

Recent  developments  in  relation  to  the  EU's  agricultural  policies  have  been  affected  by  the 
world  wide  food  prices  crisis  of  2007-2008  which  led  more  than  40  countries  to  impose 

109 
110 

111 

EN 

land 

COM(2007)440 final, 24.07.2007 
EU Task Force on Land Tenure, EU land policy guidelines, Guidelines for support to land policy design 
and 
09/2004,  Available: 
in 
http://ec.europa.eu/development/icenter/repository/EU_Land_Guidelines_Final_12_2004_en.pdf 
Particularly  within  the  International  Conference  on  Agrarian  Reform  and  Rural  Development  – 
ICARRD 

developing 

countries, 

processes 

reform, 

policy 

84 

   EN 

 
                                                 
emergency  measures  in  2008112.  The  crisis  shed  some  light  on  the  "food  equation"  of 
developing countries underlining the numerous factors at play and their intricate relationships.  

The impact of EU agriculture policy therefore has to be pondered carefully in the face of such 
complexities  and  recent  adaptation  of  the  CAP  is  a  step  in  the  right  direction,  in  particular 
through  the  decoupling  of  a  greater  share  of  income  support  to  farmer  allowing  them  to 
respond more adequately to demand while limiting market distortion. Similarly, progress has 
been made on reducing export subsidies. 

Beyond  agriculture  policy  changes,  most  recently  via  the  Health  Check,  the  EU  responded 
rapidly to the food prices crisis in developing countries by setting up, among others, the €1 
billion Food Facility, thus further demonstrating its strong commitment to poverty eradication 
and food security in partner countries. Those orientations were also promoted in the EPAs, for 
which  a  safeguard  clause  was  offered  to  help  ensure  food  security,  and  through  a  renewed 
focus of the EU's development policies on agriculture. 

In the Union, the CAP Reform and the Health Check recently carried out are seen as positive 
developments, even if, given the food insecurity context of 2007-2008, a number of Member 
States still consider that more needs to be done. This will be discussed in the coming months 
as part of the post-2013 debate on the future of the CAP (see chart below113).  

Like  Member  States,  developing  countries  also  have  very  different  interests,  depending  on 
whether  they  are  food  importers,  have  a  (potentially)  vibrant  agricultural  sector  or  are 
endowed with specific commodities. A differentiated approach is needed to take into account 
different developing countries’ concerns.  

Food  and  Agriculture  will  remain  high  on  the  international  political  agenda  given  the 
challenges  faced  over  the  last  two  years.  While  the  EU  will  ensure  this  is  tackled  in 
multilateral  fora,  especially  via  a  revitalised  Committee  on  Food  Security  (UN/FAO 
Committee currently under reform) which could form the initial basis for a Global Partnership 
and  with  the  support  of  the  UN  High  Level  TaskForce,  the  core  of  global  agriculture  will 
continue  to  shift  from  the  developed  to  the  developing  world  and  in  particular  to  emerging 

112 
113 

FAO, World Food and Agriculture in Review 2008 
Chart  based  on  Member  States'  responses  to  a  dedicated  PCD  2009  questionnaire  prepared  by  the 
European Commission. 

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countries114,  thus  making  it  essential  to  develop  a  comprehensive  dialogue  at  global  level 
through a Global Partnership on Agriculture and Food Security  

In the short term, it is essential that commodity trade remains unhampered, since barriers to 
trade  in  food  commodities  (such  as  export  taxes  and  bans),  in  developed  and  developing 
countries  alike,  will  only  result  in  short-term gains  while  increasing  market  uncertainty  and 
being detrimental to most net food-importing countries. Specific domestic policy measures to 
reduce  the  impact  on  the  very  poor  (e.g.  safety  nets  and  social  programmes,  targeted 
humanitarian interventions) coupled with sound agricultural policies should allow developing 
countries to cope with the food crises.  

In the longer term, agricultural policy in the EU, and in developing countries, should take into 
account the constraints imposed by climate change measures, demographic trends, changes in 
consumption patterns and the limited surfaces of new lands available for cultivation. Feeding 
the world growing  population will require doubling of food production globally by 2050115, 
with  a  fourfold  increase  needed  in  Africa.  This  means  increasing  agricultural  productivity, 
especially in developing countries, while ensuring sustainability of production. 

Outstanding Issues 

•  Continued  efforts  toward  a  development-friendly  WTO  Doha  agreement,  including  a 

significant reduction of trade-distorting support by all countries. 

•  Careful monitoring of food security situation in developed and developing countries.  

•  Renewed efforts for development cooperation to support agriculture and rural development 
in developing countries through adequate policies internally elaborated following inclusive 
of all stakeholders consultation processes. 

•  Engaging developing countries in research, innovation and dissemination of results in the 
field leading to increase agricultural production and productivity while preserving natural 
resources and reinforcing resilience of food systems.  

•  Assessment  of  the  impact  of  climate  change  mitigation  and  adaptation  measures  on 
sustainable agricultural production in the EU and in developing countries. Policy synergies 
sought between Agriculture, Climate Change, Research and Environment policies. 

114 

115 

Consumption and production are growing faster in developing countries for all products (except wheat). 
By 2017, according to the 2008 Outlook from the FAO, developing countries are expected to dominate 
production and consumption of most commodities 
FAO, FAO Newsroom, 4.02.2009, http://www.fao.org/news/story/en/item/9962/icode/ 

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3.6. 

Fisheries 

Quick Facts  

•  Economic  losses  in  marine  fisheries  resulting  from  poor  management,  inefficiencies  and 

overfishing add up to a staggering US$50 billion per year.116  

•  Production  by  traditional  capture  fisheries  has  reached  a  plateau.  To  meet  the  projected 
demand  for  fish  and  fisheries  products  of  an  expanded  world  population,  in  2030 
aquaculture will need to produce an additional  28.8  million  tonnes  –  80.5  million  tonnes 
overall -- each year just to maintain per capita fish consumption at current levels.117 

•  Aquatic foods have high nutritional value, contributing 20 per cent or more of average per 
capita  animal  protein  intake  for  more  than  2.8  billion  people,  mostly  in  developing 
countries.118  

•  In the developing world, fishing plays a crucial role in reinforcing household food security, 
improving  nutrition,  and  providing  income.  In  light  of  rising  world  food  prices  and 
growing concern over the situation of some wild fish stocks, we can afford less than ever 
to allow IUU (illegal, unreported and unregulated) fishing to affect these communities.119 

3.6.1. 

Introduction  

'All in all, the politicians charged with safeguarding the fisheries seem to be failing. Is nobody 
getting it right?'120 This is the sobering conclusion of a special report on the sea, 'Grabbing it 
all'.  Fisheries  policy  clearly  does  not  enjoy  a  good  reputation.  But  is  it  all  that  gloomy?  Or 
have  there  also  been  some  achievements?  This  chapter  will  look  at  how  the  EU  fisheries 
policy impacts on developing countries and assess its contribution to their development. 

In some countries and in particular in some coastal developing countries fisheries constitute 
an important economic activity. More than 30 million people worldwide, almost all of them 
(95%)  in  developing  countries,  rely  directly  on  the  fisheries  sector  for  their  livelihoods  and 
another  10  million  people  are  involved  in  aquaculture.  While  in  most  countries,  fisheries 
account for a relatively small share of national gross domestic product (GDP), in some small 
island  developing  states,  namely  in  the  Pacific,  the  sector  can  account  for  up  to  30%  of 
national economic revenue. Export earnings from fisheries are an important source of revenue 
for  many  developing  countries.  Total  world  trade  in  fish  and  fisheries  products  reached  57 
million tons worth US$92 billion in 2007121. In addition, fish is an important part of the diet 
of many people in developing countries and contributes a large share of total animal protein 
intake.122 

116 
117 
118 

119 

120 
121 
122 

FAO, 

FAO, FAONewsroom, 9.10.2008,. http://www.fao.org/newsroom/en/news/2008/1000931/index.html 
FAO, FAONewsroom, 6.10.2008. http://www.fao.org/newsroom/en/news/2008/1000930/index.html 
FAO, 
http://www.fao.org/newsroom/en/news/2008/1000876/index.html 
http://www.fao.org/newsroom/en/news/2008/1000876/index.html 
FAO, 
http://www.fao.org/newsroom/en/news/2008/1000869/index.html 
Grabbing it all. In: Troubled waters. A special report on the sea. 03.01.2009. The Economist. p.13 
FAO, La Situation des Pêches et de l'Aquaculture, ftp://ftp.fao.org/docrep/fao/011/i0250f/i0250f.pdf 
OECD, Policy Brief: Fisheries: 'Improving Policy Coherence for Development', September 2008 

FAONewsroom 

FAONewsroom 

24.06.2008. 

, 

, 

10.07.2008. 

Available: 

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The EU Common Fisheries Policy (CFP) impacts on developing countries in many ways. The 
simple fact that fish move across national borders and depend on shared marine ecosystems 
results in the EU's fisheries policy having a global impact. One key element of the CFP is the 
Fisheries Partnership Agreements (FPAs) negotiated by the European Commission to ensure 
that  the  European  fleet  has  access  to  developing  countries  waters.  These  agreements  also 
establish a framework for cooperation on fishing issues. FPAs have many direct and indirect 
impacts on the fishing and related down- and upstream activities of developing countries and 
their food security situation.  

3.6.2.  Progress towards PCD Commitments 

3.6.2.1.  Fisheries Partnership Agreements 

With  the  reform  of  the  CFP  in  2002  and  the  Council  Conclusions  on  FPAs  with  third 
countries  of  July  2004  a  new  and  more  development-friendly  policy  framework  was 
established  for  the  FPAs.  Subsequently,  the  Commission  has  now  replaced  all  fisheries 
agreements with FPAs. This was identified as one of the outstanding issues of the 2007 PCD 
report. 

At  the  time  of  writing  (June  2009),  the  EU  has  16  FPAs,  one  with  Greenland  and  15  with 
developing countries. Of the 15 agreements concluded with developing countries 12 are tuna 
agreements  which  deal  only  with  access  by  specialist  vessels  to  exploit  tuna  resources.  The 
remaining three are mixed agreements providing access for Community fishing vessels to fish 
demersal species and small pelagic fish as well as tuna species. The three mixed agreements 
account for 92% of the fishing agreements' budget, with Mauritania (€86 million in 2008) and 
Morocco  (€36.1  million)  representing  the  largest  financial  commitments.  The  other  country 
with  which  the  EU  concluded  a  mixed  agreement  is  Guinea  Bissau.  This  was  a  mixed 
agreement until 2008 and it has now been renegotiated as a tuna agreement.123 

123 

Convention  Oceanic  Développement,  MegaPesca  Lda  (2007).  ‘Contrat  cadre  pour  la  réalisation 
d'évaluations, d'études d'impact et de suivi concernant les accords de partenariat dans le domaine de la 
pêche  (FPA)  conclus  entre  la  Communauté  européenne  et  les  pays  tiers,  et  plus  généralement  sur  le 
volet externe de la Politique Commune de la Pêche : Overall evaluation study of fisheries partnership 
agreements’ 

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3.6.2.2.  Tuna agreements with countries in Africa124 

The three tuna agreements with the Solomon Islands, the Federate States of Micronesia and 
Kiribati.125 

Whereas  the  old  fisheries  agreements'  sole  objective  was  to  ensure  access  to  fishing 
opportunities  in  third  countries'  waters,  FPAs  aim  to  promote  responsible  and  sustainable 

124 
125 

ibid 
ibid 

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fishing through a policy dialogue and financial means. The FPAs stipulate that the two parties 
will engage in a policy dialogue on fisheries and jointly identify priority areas for supporting 
the  sectoral  fisheries  policy  in  the  third  country  with  a  view  to  introducing  responsible  and 
sustainable  fishing.  At  the  same  time,  a  percentage  of  the  financial  contribution  attached  to 
the  agreement  is  set  aside  for  the  implementation  of  this  policy.  The  beneficiary  country 
allocates  and  manages  this  percentage  of  the  financial  contribution  on  the  basis  of  the 
priorities identified within its national sectoral strategy. The two parties agree upon a multi-
annual  plan  and  meet  within  a  joint  committee  every  year  to  evaluate  the  progress  made. 
Governments often use these financial resources to improve the management and control of 
the fisheries activity in their waters in order to allow local communities to have a more long-
term strategy for access to fishing resources.  

FPAs have had many positive impacts on developing countries, their greatest virtue being that 
they  regulate  the  access  of  the  European  fleet  to  the  waters  of  developing  countries  and 
thereby  contribute  to  better  governance  of  the  fisheries  sector.  While  this  framework  is  not 
perfect,  it  certainly  presents  significant  advantages  over  private  agreements,  which  have  as 
their only purpose to ensure access and take no account whatsoever of aspects of sustainable 
development.  Most  Member  States  see  the  shift  from  the  traditional  fisheries  agreement  to 
FPAs as a positive step emphasising that they are not just about access to fisheries resources 
but about cooperation in this sector. 

•  Financial contribution 

In  some  countries,  the  financial  contribution  represents  an  important  source  of  revenues, 
providing them with much needed finances for their development. In Mauritania and Guinea 
Bissau the contributions paid by the Community under the FPA exceed 15% of their public 
revenues. In the other countries with agreement this ratio is lower than 3%126 but the financial 
contribution  still  plays  an  important  role  in  terms  of  the  balance  of  payments  and  foreign 
currency reserves. 

In two countries, Mauritania and Seychelles, the financial contribution of the FPA is greater 
than  funding  for  the  development  purposes.  From  a  development  point  of  view  these 
additional  resources  are  to  be  welcomed,  but  they  can  also  complicate  things.  When  in 
Mauritania the military overthrew the government in August 2008, the EU found it difficult to 
send  an  unequivocal  political  message  to  condemn  this  clear  violation  of  basic  democratic 
principles. The EU suspended its cooperation with the country in line with Article 96 of the 
Cotonou  Agreement,  but  it  had  to  pay  the  financial  contribution  of  the  FPA  due  to  legal 
commitments  arising  from  this  agreement.  This  case  shows  that  the  two  policies  and  in 
particular their financial instruments should be more closely coordinated.  

126 

Convention  Oceanic  Développement,  MegaPesca  Lda  (2007).  ‘Contrat  cadre  pour  la  réalisation 
d'évaluations, d'études d'impact et de suivi concernant les accords de partenariat dans le domaine de la 
pêche  (FPA)  conclus  entre  la  Communauté  européenne  et  les  pays  tiers,  et  plus  généralement  sur  le 
volet externe de la Politique Commune de la Pêche : Overall evaluation study of fisheries partnership 
agreements’, p. 130 

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•  Investment 

One  of  the  objectives  of  FPAs  is  to  promote  European  investment  in  the  partner  countries' 
sectors, in particular by creating joint-ventures. This seems to be difficult to achieve. In fact 
European  investment  in  joint-ventures  is  stagnating  both  in  countries  with  which  an 
agreement has been signed and in other countries traditionally targeted by European fishing 
vessels such as Namibia or Argentina. 127 Reasons for this include the investment climate and 
the  poor  infrastructure  in  some  developing  countries.  Another  factor  accounting  for  lack  of 
investment in developing countries and particularly in non-ACP developing countries is EU 
tariff peaks for fisheries imports. The average tariff rate for fish and fisheries products applied 
by OECD countries stands at a relatively low level of 4.5% and around 3% for the EU. But 
this figure does not reflect tariff peaks, or tariff escalation where the tariffs rise as the degree 
of  processing  of  an  item  increases  (reaching  a  maximum  of  25%,  although  for  developing 
countries  benefitting  from  GSP  preferences  tariffs  for  fishery  products  are  reduced  by  3,5 
points to a maximum level of 21,5%), making it more difficult to export fish paste or tinned 
fillet  than  fresh  fish.128  While  the  levels  of  private  investment  vary  according  to  the  fishing 
category generally speaking they have remained below expectations.  

•  Employment 

The  track  record  of  FPAs  in  creating  employment  is  also  mixed.129  Onboard  employment 
supported by fishing agreements with southern countries is estimated at about 6 000 jobs, of 
which 1 700 are held by EU nationals and 4 300 by third-country nationals. 

127 
128 
129 

Ibid, p. VI summary 
Policy Brief. Fisheries: Improving Policy Coherence for Development. September 2008. OECD, p.3 
All figures and tables on employment taken from Convention Oceanic Développement, MegaPesca Lda 
(2007). 

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Under the mixed agreements with countries of Western Africa, the demersal fishing segments 
generate most direct employment, especially to the benefit of third-country nationals: about 2 
300 jobs, of which 400 are held by EU nationals and 1  900 by third-country nationals. The 
tuna sector follows with almost 1 200 jobs for EU nationals and 1 800 jobs for third-country 
nationals. 

European  tuna  vessels  which  unload  their  catch  in  third-country  harbours  contribute  to  the 
creation  of  jobs  in  particular  for  women  who  often  work  in  the  canning  industry.  Countries 
like  the  Ivory  Coast  with  about  2  4  00  jobs  in  the  canning  industry,  the  Seychelles  with 
similar  number,  Ghana  and  Mauritius  where  more  than  2  000  people  work  in  the  canning 

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industry as well as Madagascar with about 1 400 in the canning industry, are the countries that 
benefited most. 

•  Sustainability 

The European Parliament130 recognises that the EU has made some progress in ensuring the 
sustainability  of  fisheries  resources.  While  there  is  the  perception  that  the  EU  exports  its 
overcapacity to third countries and that it contributes to overfishing by agreeing jointly with 
the partner country on a too generous access for the EU fleet, FPAs allow EU trawlers to fish 
surplus stocks only. The available surplus is evaluated on the basis of scientific and technical 
advice.  However,  the  valuable  demersal  resources  sought  after  by  trawlers  have  been 
shrinking in most countries and fleets have taken to fishing further south and in deeper waters 
as  stocks  are  fully  exploited  or  in  decline.  For  West  Africa  an  international  scientific 
conference  documented  very  significant  declines  over  the  last  decades131.  Current  trends  in 
global nominal landings show a clear increase in collapsed stocks over the past 35 years.132 
This means that each year more stocks collapse worldwide than recover or enter the fisheries 
afresh. At current rates no new fishable stocks will be available by 2020. 

In  the  case  of  tuna  agreements  the  Commission  takes  into  account  scientific  advice  and 
recommendations  of  the  Regional  Fisheries  Management  Organisations  (RFMOs)  when  it 
negotiates  FPAs.  In  the  case  of  mixed  agreements,  with  a  demersal  component,  for  which 
there  are  no  recommendations  from  RFMOs,  scientific  committees  monitor  the  fishing 
resources. The protocols to the mixed agreements signed with West African countries provide 
for an annual scientific meeting, which normally takes place prior to the Joint Committee. On 
the  basis  of  the  conclusions  of  the  scientific  meeting,  the  Joint  Committee  can  adopt 
appropriate  measures  for  sustainable  management  of  resources.  For  example,  a  reduction  in 
the fishing opportunities set out in the protocol happened in the case of Mauritania in 2004 as 
well as during the renegotiation of the protocol in 2008. 

It is true though that lack of data on fish stocks can make it difficult to determine the surplus 
available and to ensure that fishing activities remain sustainable. To address this problem, a 
part of the funding within the new protocols is intended to improve the scientific advice on 
stocks.  In  the  case  of  Mauritania,  for  instance,  the  EU  and  the  Mauritanian  authorities  also 
implement  measures  that  are  contained  in  the  cephalopod  management  plan,  notably 
complementary biological stop periods as well as spatial and temporary closures of fisheries 
to  protect  reproduction  zones  and  juveniles.  However,  additional  action  at  regional  level  is 
needed.  The  capacity  of  regional  organisations  to  assess  stocks  has  to  be  strengthened.  The 
Commission's  Green  Paper  on  reform  of  the  Common  Fisheries  Policy  published  in  April 
2009133 recognises that the external dimension needs to be reassessed and invites comments 
on a number of crucial questions associated with sustainability, equity and governance. 

130 

131 

132 

133 

European Parliament resolution of 17 June 2008 on policy coherence for development and the effects of 
the  EU's  exploitation  of  certain  biological  natural  resources  on  development  in  West  Africa 
(2007/2183(INI)) 
Chavance, P. et al. (eds), 2004. Pêcheries maritimes, ecosystems et sociétés en Afrique de l'Ouest: un 
demi-siècle  de  changement.  Actes  du  Symposium  International  Dakar,  Sénégal,  24-28  juin  2002. 
OPOCE et IRD, 592 p.  
Froese, R., A. Stern-Pirlot and K. Kesner-Reyes, 2008. Out of new stocks in 2020: A comment on "Not 
all fisheries will be collapsed in 2048". Marine Policy, 33 
COM (2009)163fin, 22.04.2009 

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3.6.2.3.  Illegal, Unreported and Unregulated (IUU) Fishing  

IUU fishing constitutes one of the most serious threats to the sustainable exploitation of living 
aquatic  resources  and  marine  biodiversity.  It  causes  depletion  of  fish  stocks  and  prevents 
future stock growth. It is estimated that the cost of IUU practices amounts to €10 billion every 
year worldwide representing 19% of the worldwide reported value of catches. 134 

This scourge proves particularly costly for developing countries as IUU operators tend to take 
advantage of insufficient control of their national waters. As a result, resources diminish and 
the  countries  lose  potential  catches  and  revenue.  For  these  reasons,  the  fight  against  IUU 
fishing  was  identified  as  an  important  issue  for  ensuring  coherence  of  fisheries  policy  with 
development  objectives  in  the  2007  PCD  report.  Given  the  high  percentage  of  international 
trade  in  relation  to  total  production,  fighting  IUU  fishing  requires  intelligent  regulation  of 
trade and measures to prevent trading in illegally caught fishery products.  

134 

Convention  Oceanic  Développement,  MegaPesca  Lda  (2007).  "Assessment  of  the  rationale  of  the 
measures included under the initiative against IUU Fishing" (2007) 

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135 

The  EU  for  its  part  has  long  been  endeavouring  to  prevent  IUU  fishing.  The  Commission 
systematically  negotiates  and  concludes  a  vessel  monitoring  system  (VMS)  protocol  with 
third countries. Furthermore, all EU vessels are equipped with the monitoring systems. But as 
the problem continued to grow the EU decided to intensify its action.  

135 

Convention Oceanic Développement, MegaPesca Lda (2007), p. 148. 

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On  29  September  2008  the  Council  adopted  the  IUU  Fishing  Regulation  No  1005/2008, 
which will enter into force on 1 January 2010. The objective of the Regulation is to ensure 
that  all  fishery  products  traded  with  the  EU,  including  processed  products  were  caught  in 
accordance with applicable laws, regulations and international conservation and management 
measures.  

The implementation of this Regulation will be a challenge to many developing countries. The 
EU, therefore, has undertaken to cooperate with and support third countries in this task. As a 
first  concrete  step,  the  Commission  is  informing  developing  countries  about  this  new 
Regulation, bilaterally and through regional seminars. It has organised four two-day seminars 
in Johannesburg, Bogota, Ho Chi Minh City and in Cameroon for this purpose. The adoption 
of  this  Regulation  has  been  welcomed  by  Member  States  as  an  important  step  in  the  fight 
against the global problem of IUU fishing and as a vital instrument for ensuring PCD. 

FPAs also include support for developing countries to fight against IUU fisheries. They put a 
special  emphasis  on  increased  monitoring,  control  and  surveillance  of  fishing  activities  and 
earmark substantial funds to help countries eradicate IUU fishing (e.g. through the purchase 
of patrol vessels, satellite monitoring systems or radar equipment, and providing assistance to 
introduce or adapt the relevant legislation).  

The regional level plays an important role in the fight against IUU fishing. For this reason the 
EU  has  strengthened  its  cooperation  with  the  Indian  Ocean  Commission  (IOC)  in  this  area. 
On  23-24  January  2007,  the  European  Commission  and  the  IOC  signed  a  partnership 
agreement in order to implement a Regional Plan for fisheries surveillance in the South West 
Indian  Ocean.  Both  parties  have  also  signed  a  Ministerial  declaration  which  commits  the 
Fisheries Ministers of the IOC to fight against IUU activities in the South West Indian Ocean. 
The  general  objective  of  this  Regional  Plan  is  to  reduce  the  number  of  IUU  vessels  in  the 
region and to contribute to sustainable conservation and management of the tuna resources. In 
the first three years (2007-2010), this framework partnership agreement with the IOC will be 
funded to the tune of € 7 million. The participants  representing the Member States of the IOC 
agreed to take immediate actions to step up the fight against IUU fishing. 

3.6.2.4.  Regional Fisheries Management Organisation and International Agreements 

The  European  Union  has  a  strong  commitment  to  Regional  Fisheries  Management 
Organisations  (RFMOs)  which  play  a  key  role  in  the  conservation  and  sustainable  use  of 
straddling and migratory fish stocks. The EU is a member (or a cooperating non-member or 
an  observer  in  those  to  which  it  has  not  yet  acceded)  in  13  RFMOs,  i.e.  almost  all  existing 
RFMOs. It has also promoted the creation of RFMOs where there was a gap, in particular, for 
straddling stocks, in the South East Atlantic, the Southern Indian Ocean and the South Pacific. 
In  order  to  strengthen  the  performance  of  RFMOs,  the  EU  has  been  a  driving  force  for  the 
performance review of for example, the Indian Ocean Tuna Commission, and has contributed 
actively  to  the  revision,  of  the  agreements  establishing  the  North  East  Atlantic  Fisheries 
Commission, the North West Atlantic Fisheries Organisation and the Inter American Tropical 
Tuna  Commission.  In  2007,  the  EU  was  again  a  major  initiator  of  proposals  for  RFMOs 
measures  to  deal  with  the  conservation  of  fish  stocks  and  adopt  control  measures  to  ensure 
compliance. 

The efforts at EU level are complemented by Member States. The UK has played a leading 
role  in  strengthening  RFMOs  and  is  the  Chair  of  the  High  Seas  Task  Force  which  was 
established  in  2003  by  a  small  group  of  fisheries  ministers  and  international  NGOs  who 

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decided  to  work  together  to  develop  an  action  plan  designed  to  combat  IUU  fishing  on  the 
high seas. As part of the follow-up to that initiative, the UK convened a high-level panel to 
develop a model for improved governance by RFMOs. Germany and the Netherlands support 
the capacity development of the RFMO 'Commission Sous Régionale des Pêches' (CSRP) in 
Dakar, Senegal. Sweden supports Regional Fisheries Bodies, like the Fishery Committee for 
Eastern Central Atlantic, the Fishery Committee of the West Central Gulf of Guinea and the 
South  West  Indian  Ocean  Fishery  Commission.  Through  funding  and  secondments  to  these 
regional  organisations,  the  Swedish  government  aims  to  improve  inter-governmental 
cooperation and fishery management in the region. 

The European Union has an overall policy of encouraging developing countries' participation 
in international fisheries fora, including RFMOs, (e.g. recent accession of Egypt, Nigeria and 
Sierra  Leone  to  the  International  Commission  for  the  Conservation  of  Atlantic  Tunas)  and 
their  accession  to  multilateral  agreements  through  a  process  granting  participatory  rights  to 
non-members. This has not always been successful, as other RFMO members may be opposed 
to  such  enlargement  as  has  been  the  case  with  the  Western  and  Central  Pacific  Fisheries 
Commission. The EU organises preparatory meetings with developing countries in advance of 
international  meetings  where  appropriate  so  as  to  build  a  wide  alliance.  It  also  helps 
developing  countries  to  participate  in  international  meetings,  through  bilateral  assistance  as 
part of the Fisheries Partnerships Agreements or through contributions to trust funds managed 
by multilateral organisations or RFMOs. The fact that sometimes only part of the funds made 
available  is  used  shows  the  need  to  speed  up  the  implementation  of  a  coherent  sectoral 
fisheries policy. But it is also indicative of the fact that fisheries are deeply integrated into the 
global economy thus raising issues well beyond a sectoral perspective, e.g. in relation to trade 
and  finance  policies,  employment,  social  and  environment  policies  and  much  more.  This 
requires  a  high  level  of  skills  and  transsectoral  understanding  and  negotiation.  Thus,  the 
Commission  also  provides  capacity-building  assistance  to  developing  countries  through 
various  instruments,  so  that  they  are  in  a  position  to  participate  effectively  in  international 
fisheries  fora  as  well  as  in  the  political  resource  allocation  process  at  national  and  regional 
levels. 

Despite all these efforts, EU Member States report that some RFMOs are still lacking support 
from partner countries. A recent study carried out by the Netherlands on the difficulties faced 
by developing countries trying to accede to and participate in RFMO, might shed some light 
on what needs to be done to overcome these obstacles.  

3.6.2.5.  EPAs 

The Commission addresses fisheries also through its trade policy and in particular the EPAs 
that it concludes with ACP regions where fisheries play an important role. The interim EPAs 
(iEPA)  concluded  at  the  end  of  2007  with  some  ESA  countries  –  Comoros,  Madagascar, 
Mauritius,  Seychelles,  Zambia  and  Zimbabwe  –  contain  a  fully  fledged  chapter  on  fisheries 
with the objectives of promoting responsible fishing and a more solid fisheries policy. Parties 
also agreed to work together against illegal fishing through improved monitoring. Provisions 
on  cooperation  for  promoting  joint  ventures  and  enhancing  production  capacity  and 
competitiveness are included in this chapter, too. An automatic derogation of 10 000 tons for 
processed tuna has been granted to the ESA region (8 000 canned tuna + 2 000 tuna loins) in 
the iEPA. 

Fisheries in the Pacific EPA 

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The  Pacific  interim  EPA  (iEPA)  concluded  with  Papua  New  Guinea  and  Fiji  in  November 
2007  contains  provisions  in  support  of  the  development  of  the  fisheries  sector  in  these 
countries.  It  introduces  significant  improvements  to  the  rules  of  origin  for  fishery  products 
such as canned tuna, notably the principle of global sourcing. According to this principle the 
origin is granted if the fish is processed in on-land plants of the iEPA signatories irrespective 
of the waters and vessels of the catch. This relaxation of the rules of origin is considered as an 
important  catalyst  for  development  in  Pacific  ACP  countries.  It  has  great  potential  for 
stimulating  processing  activities,  attracting  foreign  investment  in  harbour  infrastructure  and 
fishery  processing  plants  and  thus  supporting  the  generation  of  value  added  in  loco  and  of 
employment opportunities for the local population. Papua New Guinea is already benefiting 
from these EPA provisions through its project to establish a Marine Park in the province of 
Madang. 

3.6.2.6.  Reform of the Common Fisheries Policy (CFP) 

The  Commission  has  begun  a  review  of  the  CFP.  In  April  2009  it  issued  a  Green  Paper  to 
launch  a  public  consultation  on  the  CFP  reform  which  is  due  in  2012.  The  review  will  be 
based  on  an analysis  of  the  achievements  and  shortcomings  of  the  current  policy,  and  will 
look at experiences from other fisheries management systems to identify potential avenues for 
the reforming of this policy including its external aspects. The Green Paper emphasises that 
environmental  sustainability  must  have  top  priority  because  it  is  the  basis  for  social  and 
economic  benefits.  This  also  holds  true  for  fishing  activity  in  the  waters  of  third  countries. 
The  reform  of  the  CFP  offers  an  opportunity  to  re-evaluate  the  external  dimension  of  this 
policy with a view to making it more development-friendly. 

3.6.3.  Conclusions & Outstanding Issues 

Member  States  are  divided  on  the  progress  made  on  PCD  in  the  area  of  fisheries.  They 
welcome the shift from the traditional fisheries agreement to the FPAs and the measures taken 
to  fight  IUU.  Member  States  recognise  that  some  progress  has  been  made,  but  remain 
concerned about the reliability, accuracy and timely reporting of catch data. 

Assessment136 of progress on PCD in this policy area: 

136 

Chart  based  on  Member  States'  responses  to  a  dedicated  PCD  2009  questionnaire  prepared  by  the 
European Commission. 

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Ensuring  the  sustainability  of  fisheries  was  difficult  enough  in  the  past  but  it  will  be  even 
more  so  in  the  future.  Most  stocks  are  overfished  and  pressure  for  more  fishing  rights  will 
increase. By regulating access FPAs have certainly improved the sustainability of EU fishing 
activities  but  more  needs  to  be  done.  The  European  Parliament  has  made  an  interesting 
proposal to that end by suggesting decoupling the level of payment for agreements from the 
level of fishing opportunities granted in return, which can act as a disincentive for the third 
country to reduce access when stocks are depleted.137 

One  of  the  key  problems  is  the  need  to  reign  in  overfishing  in  the  face  of  continuing 
overcapacity  and  the  harmful  version  of  subsidies.  A  combination  of  new  valuation 
approaches  and  marine  protected  areas  (MPAs)  particularly  for  those  areas  where 
expectations  for  returns  on  investment  are  in  excess  of  natural  capacity  of  ecosystems  to 
regenerate is a promising avenue towards more sustainable arrangements. 

Meanwhile the often poor availability of data to assess the status of stocks adds an additional 
element  of  uncertainty.  Reliable,  accurate  and  timely  reported  catch  data  are  important  not 
only  to  improve  the  scientific  stock  assessment  of  partner  countries  but  also  to  ensure 
transparency  and  a  proper  cost/benefit  assessment  of  European  fisheries  policies  and 
particularly  FPAs.  However,  in  general,  in  the  light  of  the  well-documented  general 
downward trends data scarcity should trigger particularly prudent behaviour, not greater risk-
taking. 

The  EU  should  therefore  continue  to  support  multilateral  organisations  in  collecting  these 
data, strengthen the monitoring and analysis capacity of RFMOs and research institutes and 
promote  networks  of  effective  MPAs  as  mandated 
the  Johannesburg  Plan  of 
Implementation  for  establishment  by  2012.  Ecosystem  assessments,  the  development  and 
testing  of  innovative  valuation  approaches  and  associated  development  of  science-based 
integrated management systems should be promoted.  

in 

Assistance  to  developing  countries  for  the  formulation  and  implementation  of  sectoral 
fisheries policies in view of the often strong interconnections with other sectors will become 
increasingly  important.  Without  a  solid  fisheries  policy  embedded  into  wider  national 
sustainable  development  policies,  developing  countries  will  not  be  able  to  harness  this 
sector’s potential to contribute to their development.  

EU 

development 

strategy  with 

The allocation of the financial contribution under the FPAs should be better aligned with the 
development strategies agreed with the countries/regions in the CSPs and RSPs. Possibilities 
should  be  explored  for  integrating  the  "development  part"  of  the  FPA  into  the  commonly 
region. 
agreed 
Developing countries' capacity for effective fisheries management and governance also needs 
to be strengthened so that they can ensure that EU regulations and other measures to combat 
IUU  fisheries  are  enforced  and  illegal  fishing  is  minimised.  Effective  enforcement  through 
monitoring,  control  and  surveillance  (MCS)  systems  is  important  in  that  respect  too. 
Concretely,  the  EU  should  support  developing  countries  in  achieving  compliance  with  the 
new  Regulation  against  IUU  fishing,  which  will  enter  into  force  on  1  January  2010  and  in 
taking the measures required, including training of customs officers, and should also reinforce 
its own enforcement of existing laws and regulations. 

country 

given 

or 

a 

137 

EP resolution on policy coherence for development and the effects of the EU's exploitation of certain 
biological natural resources on development in West Africa of 17 June 2008  

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Stimulating  private  investment  in  third  countries  continues  to  be  a  challenge.  To  attract 
investment in the fisheries sector in developing countries, their access to markets in general 
and for value-added products in particular should be increased. A more solid and stable legal 
framework  will  create  further  incentives  for  investment  in  Africa  and  contribute  to  the 
development of poorer countries. However, it is important that this takes place under the right 
conditions to allow for social and environmentally sustainable development. 

Finally,  the  regional  dimension  is  very  important  for  improving  the  governance  of  the 
fisheries  sector.  The  idea  put  forward  in  the  Green  Paper  to  introduce  "regional  forms  of 
cooperation"  in  the  FPAs,  and  possibly  even  substitute  the  bilateral  agreements  should  be 
explored.  Most  importantly,  instead  of  focusing  on  defensive  mechanisms  against  further 
decline,  which  have  had  little  or  no  effect  on  the  ground,  focussing  on  the  restoration 
objective  of  the  Johannesburg  Plan  of  Implementation  (JPoI)  has  potential  to  increase 
production significantly. A forthcoming scientific analysis shows that current world fisheries 
production is 25 million tons of output short, because massive fishing of juveniles and other 
destructive practices reduce the ecosystem biomass in ways that make it impossible to harvest 
individual stocks at Maximum Sustainable Yield (MSY) levels. Yet, the legally binding Law 
of the Sea Convention mandates MSY as the yardstick of fisheries management. The JPoI set 
a  time-bound  target  for  achieving  these  levels  (2015)  and  its  implementation  would  set  a 
constructive framework for a forward-looking mission of the regional organisations as well as 
for national administrations and other stakeholders.  

Outstanding Issues 

•  Reinforce the sustainability of fisheries in particular by improving stock assessments and 

by making them more transparent 

•  The  need  to  improve  market  access  to  the  EU  for  fisheries  products  from  developing 

countries, including through more flexible rules of origin  

•  Support the formulation and implementation of developing countries' fisheries policies 

•  Support and cooperate with developing countries in the fight against IUU fishing 

•  Move towards the regional dimension and enhance the capacities of regional organisations 
to  assess  and  rebuild  fish  stocks  to  a  level  of  productivity  allowing  harvesting  at  MSY 
levels  mandated  by  the  Law  of  the  Sea  and  supported  by  the  Johannesburg  Plan  of 
Implementation. 

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3.7. 

Social Dimension of Globalisation, Employment and Decent Work  

Quick Facts 

•  Due  to  the  global  economic  crisis,  global  unemployment  in  2009  could  increase  by 
between 29 (lowest scenario) and 59 million unemployed people (ILO Global Employment 
Trends Update May 2009). 

•  Current  projections  indicate  that  more  than  200  million  workers,  mostly  in  developing 

economies, are at risk of slipping into extreme poverty. 

•  Of  every  100  children  in  the  world  today,  16  are  child  labourers  with  12  of  those  being 
subjected to it’s the worst forms of child labour and many will never go to school (ILO, 
2008). The crisis could push an increasing number of children, in particular girls, into child 
labour (ILO, 2009). 

•  Out of the 550 million working poor in the world, an estimated 330 million are women – a 

share of 60 per cent (ILO, 2008). 

•  In  2007,  achieving  full  and  productive  employment  and  decent  work  for  all,  including 
women and young people (under MDG1) was included as one of the four new targets in 
the revised MDG monitoring framework. 

•  50% of people in the world have no social protection and 1.2 million people die every year 

because of accidents at work (ILO, 2007). 

•   

3.7.1. 

Introduction  

Globalisation involves changing realities for people, deeper interconnections between policy 
areas  and  between  countries  and,  consequently,  growing  integration  and  dependence  of 
regional and national labour markets at very different levels of development across the globe.  

The economic and social impact of globalisation varies widely across countries, sectors and 
actors.  The  current  crisis  was  preceded  by  growing  imbalances  in  the  way  globalisation 
unfolded.  Too  many  countries  and  people  were  not  sharing  in  its  benefits.  The  EU  is 
committed to ensuring that both its internal and external policies are exercised in such a way 
as to contribute to maximising the benefits and minimising the  costs of  globalisation for all 
groups, in and outside the EU. In the EU context, Social Dimension of Globalisation (SDG) 
refers  to  the  impact  of  globalisation  on  the  life  and  work  of  people,  their  families  and  their 
societies.  Concerns  and  issues  are  often  raised  about  the  impact  of  globalization  on 
employment,  working  conditions,  income  and  social  protection.  Beyond  these,  SDG  is  also 
meant  to  promote  an  inclusive  globalisation  that  benefits  the  poor  through  adequate  social 
policies. It addresses issues related to decent work; equal opportunities for men and women; 
lifelong learning; raising earnings; opportunities for young people and production processes in 
compliance with social standards. In developing countries, SDG is a key element in reducing 

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poverty and achieving the Millennium Development Goals138. In the wake of the financial and 
economic crises, these issues are likely to be particularly acute in developing countries where 
the  vast  majority  of  workers  and  small  enterprises  have  only  very  limited  access  to  social 
protection. 

Governments with widening public finance imbalances find it difficult to maintain the level of 
social expenditure; maintenance of public infrastructure is being postponed; funding for social 
safety  nets  is  in  decline  just  when  it  is  most  needed;  and  the  number  of  unemployed  and 
working poor, especially in urban areas, is increasing exponentially139. 

In the Council Conclusions of May 2009140 it is stated that "the EU will take targeted social-
protection  measures  in  a  gender  sensitive  way  and  support  developing  countries'  actions  to 
cope with the direct social impact of the crisis through the creation and strengthening of social 
protection systems and programmes, including enhancement of in-kind transfers". 

In  recognition  of  its  importance  for  development,  EU  policies  must  contribute  to  SDG 
objectives through complementarities and the creation of policy synergies. This chapter will 
focus  on  the  three  main  policy  domains:  social  protection,  employment,  with  a  particular 
emphasis on decent work, and gender equality.  

3.7.2.  Progress towards PCD Commitments 

3.7.2.1.  External dimensions of EU Policies 

The  Lisbon  Strategy  was  initially  conceived  as a  way  of  mobilising  stakeholders within the 
EU  to  respond  to  the  challenges  of  the  knowledge  economy  by  combining  economic 
competitiveness, employment and social cohesion. In the face of increasing globalisation and 
interdependence, complementing this internal dimension with a strong external dimension is 
essential  to  contribute  to  the  shaping  of  globalisation  in  line  with  the  EU’s  values  and 
experiences141. Thanks to its experience with the single market, the EU can contribute specific 
expertise  –social  protection,  employment,  workers'  rights  –  which  could  be  beneficial  to  its 
key  partners.  Innovative  solutions  could  also  be  proposed  to  promote  decent  work  in  areas 
where  the  EU  has  strategic  interests,  such  as  managing  migration  ("social  protection"), 
climate change and energy ("green jobs").142  

Over the last two years, policy initiatives on employment and decent work have taken place at 
EU level, in particular: 

•  In  July  2008,  the  Commission  adopted  a  Communication143  on  the  "Renewed  Social 
Agenda"  (RSA),  built  on  the  three  pillars  of  access,  opportunities  and  solidarity.  The 
external  dimension  of  the  RSA  underscores  in  particular  the  guiding  principle  of  decent 

138 

139 
140 

141 

142 

143 

Commission Staff working document Report on the EU contribution to the promotion of decent work in 
the world SEC(2008) 2184, 22.4.2009 
COM (2009) 160 final, 8.4.2009 
Council  Conclusions  on  supporting  developing  countries  in  coping  with  the  crisis  18  May  2009 
10018/09 
As  underlined  in  the  EU  Declaration  on  Globalisation,  adopted  by  the  December  2007  European 
Council 
SEC (2008) 2184, 02.07.2008, Commission Staff Working Document report on the EU Contribution to 
the promotion of decent work in the world p. 15 
COM(2008) 412 final, 02.07.2008 

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work.  The  RSA  reaffirms  the  Commission’s  commitment  to  the  promotion  of  the  social 
dimension  of  globalisation  and  the  internationally-  agreed  agenda  for  decent  work, 
including through cooperation with the International Labour Organisation (ILO) and other 
partners, and the mobilisation of all relevant EU policies.  

•  As part of the renewed Social Agenda package, the Commission prepared a "Report on the 
EU’s  contribution  to  promoting  decent  work  throughout  the  world"144  underlining  the 
efforts  and  challenges  involved  in  mobilising  the  EU’s  internal  and  external  policies  and 
all  relevant  stakeholders  to  promote  decent  work  for  all,  notably  by  supporting 
commitments  at  international  level,  shaping  bilateral  relations  with  partner  countries  and 
regions,  and  by  integrating  decent  work  objectives  into  the  EU’s  trade  and  development 
policies.  

•  In  April  2007  a  Staff  Working  Document145  on  "Promoting  Employment  through  EU 
Development  Cooperation" underscored  the  importance of  promoting full and productive 
employment  and  decent  work  for  all  -  with  a  focus  on  youth  and  women  –  as  the 
foundation  for  sustainable  development  and  sound  societies  of  tomorrow.  The  Staff 
Working  Document  proposes  to  increase  EU  engagement  in  promoting  employment 
through  development  cooperation  within  the  overall  goal  of  decent  work.  Priority  should 
be  given  to  creating  new  productive  jobs  in  the  formal  economy  as  well  as  improving 
living and working conditions in the informal economy. The paper also serves as a trigger 
for a broader debate with EU Member States on how best to promote employment through 
development  policies  within  the  overall  framework  of  the  Decent  Work  Agenda.  Among 
the critical aspects of SDG, equality between women and men is a fundamental right and a 
necessary  condition  for  achieving  the  EU  objectives  of  growth,  employment  and  social 
cohesion. Although inequalities still exist, internally the EU has made significant progress 
over the last decades in achieving equality between women and men. This is mainly thanks 
to  equal  treatment  legislation,  gender  mainstreaming  and  specific  measures  for  the 
advancement of women.  

The EU's 2006 "Roadmap for Equality between Women and Men"146 sets out the priorities for 
the period 2006-2010 and addresses the promotion of gender outside the EU. Specific aspects 
of  the  Roadmap  were  implemented  throughout  2007-2008,  through  a  number  of  initiatives 
and  in  particular  the  Communication  on  "Gender  Equality  and  Women's  Empowerment  in 
Development  Cooperation"147  adopted  in  March  2007.  This  Communication  provides 
guidance  for  making  gender  mainstreaming  more  effective,  proposes  specific  actions  and 
describes  the  various  ways  of  promoting  gender  equality  through  the  new  aid  delivery 
methods.  In  particular  it  calls  for  specific  actions  to  address  the  impacts  of  trade  and 
liberalisation on decent work for women, men and children, to protect labour and civil rights 
of informal workers and to deal with other economic issues.  

The EU Action Plan on Gender Equality and Women's Empowerment in External Action is 
being  prepared  for  adoption  by  the  end  of  2009.  The  importance  of  gender  equality  is  also 
reflected  in  the  Joint  Africa-EU  Strategy  as  a  key  element  in  all  partnerships  and  national 
development strategies.  

144 
145 
146 
147 

SEC(2008) 2184, 16.12.2008 
SEC(2007) 495, 13.04.2007 
COM(2006) 92 final , 01.03.2006 
COM(2007)100 final , 08.03.2007 

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Social Dimension of Globalisation and Migration 

In  response  to  Council  recommendations148  on  SDG  emphasising  the  importance  of  an 
appropriate  employment  policy  in  minimising  the  brain-drain,  policy  initiatives  have  been 
taken in the EU, in particular in relation to brain-drain in the health sector. With the adoption 
of  the  EU  Strategy  for  Action  on  the  Crisis  in  Human  Resources  for  Health  in  Developing 
Countries in December 2005, and the Programme for Action to tackle the shortage of health 
workers  in  developing  countries  (2007  –  2013)  adopted  in  2006,  the  EU  recognises  its 
responsibility  to  take  steps  to  meet  its  own  objective  of  providing  high-quality  healthcare 
without having a negative impact  on the situation in non-EU countries. The Commission in 
2007  prepared  a  proposal  for  a  Directive  to  facilitate  the  admission  of  highly-qualified 
migrants into the EU149 with a clause specifically requiring ethical recruitment in sectors, such 
as the health sector, experiencing a lack of personnel.  

3.7.2.2.  Trade and Development-Related Agenda 

The EU commitment to integrate SDG into trade policy has been implemented over the last 
two  years  through  three  main  conduits:  the  special  incentive  arrangement  for  sustainable 
development  and  good  governance  (GSP+)  established  under  the  Generalised  System  of 
Tariff Preferences (GSP), Sustainability Impact Assessments, and multilateral initiatives. 

•  GSP+ 

The  EU  shares  the  view  that  there  is  a  link  between  development  and  the  respect  of  basic 
human,  labour  rights  and  environment  and  governance  principles.  Failure  to  honour  these 
basic  standards,  which  are  specified  in  various  international  conventions,  entails  particular 
problems for developing countries in reaching their development objectives. This is why the 
EU  created  within  the  GSP  scheme  a  special  preferential  trading  arrangement  to  address 
positively  these  specific  development  needs  through  granting  additional,  preferential  market 
access  conditions  for  those  developing  countries  which  have  taken  on  board  the  major 
international  conventions  in  these  areas  (the  GSP+).  Through  this  trade  incentive  the  EU 
encourages  developing  countries  to  ratify  and  implement  key  international  conventions  on 
human rights, core labour standards, sustainable development and good governance. 

The promotion of these conventions as well as their implementation is supported by the EU 
through  the  GSP  Regulation  provisions,  according  to  which  disregard  for  or  serious  and 
systematic violations of the conventions' principles may result in the temporary withdrawal of 
tariff  preferences  (during  2008  investigations  were  opened  against  El  Salvador  and  Sri 
Lanka). 

For the period 2009-2011, 16 countries150 have qualified to receive the additional preferences 
offered  under  the  GSP+  incentive  arrangement.  Countries  that  did  not  yet  meet  the  GSP+ 
qualifying  criteria  in  2008  can  apply  until  30  April-  2010  to  receive  GSP+  benefits  from  1 
July 2010.  

148 
149 
150 

GAERC Conclusions on Promoting Employment through EU Development Cooperation, June 2007 

COM(2007) 637, 23.10.2007 
Armenia,  Azerbaijan,  Bolivia,  Colombia,  Costa  Rica,  Ecuador,  El  Salvador,  Georgia,  Guatemala, 
Honduras,  Mongolia,  Nicaragua,  Paraguay,  Peru,  Sri  Lanka  and  Venezuela.  Venezuela  has  been 
removed from the list of GSP+ beneficiaries by Commission Decision 2009/454/EC of 11 June 2009. 

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•  Sustainability Impact Assessments 

In  the  context  of  strengthening  the  knowledge  base  and  better  linkage  with  policies  and 
stakeholders,  the  European  Commission  has  continued  to  carry  out  Sustainability  Impact 
Assessments  (SIAs)  for  all  major  bilateral  and  multilateral  trade  negotiations.  Increasing 
attention is being paid to quantitative and qualitative employment and social impacts of trade 
agreements  as  well  as  dialogue  with  civil  society  groups.  SIAs  also  aim  to  identify 
accompanying  measures  to  mitigate  any  negative  employment  and  social  impact  of  future 
trade  agreements  and  to  enhance  positive  ones,  and  to  reveal  to  the  scope  for  cooperation 
activities in the area of trade and decent work.151  

3.7.2.3.  International Perspectives 

Following on from the 2007 Staff Working Document on Promoting employment through EU 
Development Cooperation152 and public statements, partner countries and regions have shown 
a  growing  interest  in  the  EU's  integrated  economic  and  social  development  approach.  As  a 
result, the EU has intensified its dialogue with low and middle-income countries, notably on 
decent work and its various components.  

•  Multilateral and International Initiatives  

In 2007 and2008 the EC has consistently raised employment and labour issues in the context 
of  the  WTO  trade  policy  review  mechanism  (TPRM).  This  has  helped  build  further 
understanding  of  the  linkages  between  trade  and  employment.  Social  issues  have  also  been 
addressed in the context of WTO accession negotiations.  

The Commission has continued to contribute substantially to the promotion of the ILO Decent 
Work Agenda, not only through institutional cooperation with the ILO, but also by fostering 
the  four  strategic  objectives  at  other  international  fora,  such  as  G8  events  and  the  United 
Nations  Commission  for  Social  Development.  The  Commission  has  also  actively  supported 
the  EU  Member  States  for  achieving  the  important  ILO  Declaration  on  Social  Justice  for  a 
Fair Globalisation, adopted by the International Labour Conference in 2008. 

In  the  face  of  the  tremendous  employment  and  social  impact  of  the  global  economic  crisis, 
this  is  more  important  than  ever.  The  European  Commission  has  made  it  very  clear  that 
efforts  on  Decent  Work  must  not  be  reduced,  but  that,  on  the  contrary,  the  Decent  Work 
Agenda is also providing the right tools to tackle the crisis.  

In 2004 a Memorandum of Understanding on a Strategic Partnership (SP) between the EC and 
the ILO in the field of development cooperation was concluded. The partnership is conceived 
as an evolving framework. While the original MoU addressed cooperation in the areas of core 
labour standards, focussing in particular on child labour and education, CSR and Core Labour 
Standards, social dialogue, poverty reduction an employment and migration and development, 
gender  being  a  transversal  issue  for  all  areas,  the  High  Level  Meeting  between  the 
Commission  and  the  ILO  extended  this  scope  to  social  protection  as  a  separate  theme,  to 
ensure that all four pillars of decent work are covered by the partnership. It was also agreed 
that a special focus should be on the informal economy.  

151 

152 

European  Commission;  Trade  Issues,  Trade  Sustainability  Impact  Assessments  03.09,  Available: 
http://ec.europa.eu/trade/issues/global/sia/index_en.htm . 
SEC(2007) 495. 13.04.2007 

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In  the  framework  of  this  strategic  partnership,  the  EC  and  ILO  have  increasingly  up  scaled 
their  joint  development  cooperation  (see  section  3.7.2.4).  Moreover,  the  Commission  has 
taken the initiative to organise regional seminars with EC Delegations and ILO local offices 
(Asia  2006,  LA  2007,  ACP  2009).  These  seminars  aim  at  implementing  the  joint  strategic 
partnership  at  local  level  and  to  improve  mutual  understanding,  co-operation,  synergies  and 
contacts. This concerns the convergence between the important ILO added value in terms of 
tripartite  agreed  Decent  Work  Country  Programmes  (DWCP)  and  the  EC  large  financial 
cooperation in the social sectors. 

On the other hand, many Member States have bilateral partnership agreements with the ILO, 
and some provide core funding to the ILO. These activities have contributed to the adaptation 
of legislation to the most important international conventions in relation to child labour. The 
ILO plays a central role in promoting the social dimension of globalisation, employment and 
decent  work,  supported  by  a  number  of  Member  States.  Overall  the  ILO  has  contributed  to 
include  Decent  Work  related  concerns  (notably,  employment,  core  labour  standards,  social 
protection, etc) in the Poverty Reduction Strategy Papers (PRSPs). The 2009 mid-term review 
of EC Country Strategy Papers will be an opportunity to reinforce the appropriate synergies 
between  European  cooperation  and  the  DWCPs,  promoted  by  ILO  and  based  on  tripartite 
social dialogue.  

The EU also supported an OECD project on trade and structural adjustment, studying linkages 
between international trade and labour market adjustment. The project aims at identifying, for 
both  developed  and  developing  countries,  the  requirements  for  successful  trade-related 
structural  adjustment  via  the  reallocation  of  labour  and  capital  to  more  efficient  uses,  while 
limiting adjustment costs.  

The OECD/DAC has put in place a network working on various aspects of pro-poor growth 
(POVNET).  The  European  Commission  has  been  actively  participating  in  the  task  teams 
leading  to  a  Policy  Statement:  "Making  Economic  growth  more  pro-poor:  the  role  of 
employment and social protection"153. This statement was endorsed by the OECD High Level 
Meeting in May 2009. 

•  Bilateral dialogues 

The EU-Brazil Action Plan154, adopted in December 2008, addresses social and employment 
issue in a detailed manner, including in connection with developing countries. It foresees in 
particular  the  development  of  triangular  cooperation  to  support  the  achievement  of  MDGs, 
including  the  eradication  of  extreme  poverty  and  hunger,  notably  through  the  promotion  of 
full and productive employment and decent work for all, the promotion of gender equality and 
the empowerment of women.  

The  full  EPA  signed  with  CARIFORUM  addresses  employment  and  decent  work  issues. 
Member  States  report  progress  with  a  view  to  including  ILO  Core  Standards  in  Free  Trade 
Agreements, EPAs and the Aid for Trade initiative. Currently negotiations are ongoing with 
Central  America  and  Andean  countries  to  agree  on  a  Trade  and  Sustainable  Development 

153 

154 

EN 

High 

Level 

OECD, 
Available:http://www.olis.oecd.org/olis/2009doc.nsf/ENGDATCORPLOOK/NT00000D82/$FILE/JT0
3260525.PDF 
See  Brazil-European  Union  Strategic  Partnership,  Joint  Action  Plan,  2nd  Brazil  -  European  Union 
Summit, Rio de Janeiro, 22 December 2008. Section 2.1 and 2.2. 

Meeting 

2009, 

May 

in 

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chapter. This includes commitments on core labour standards and institutional arrangements 
for monitoring their effective implementation involving the social partners. 

•  European Neighbourhood Countries 

The Commission’s 2008 and 2009 Progress Reports on the European Neighbourhood Policy 
(ENP)  paid  close  attention  to  the  external  dimension  of  employment  and  social  policy, 
highlighting  the  promotion  of  decent  working  conditions  as  a  ‘key  challenge’.  Within  the 
Union for the Mediterranean, the first Euro-Med Employment and Labour Ministers meeting 
of November 2008 adopted an ambitious framework for action on employment, employability 
and  decent  work.  Its  follow-up  will  include  the  creation  of  a  Euro-Med  Social  Dialogue 
Forum. Employment and social aspects also feature in the Communication on the new Eastern 
Partnership adopted in December 2008155. 

•  Asia 

At the second Asia-Europe Meeting (ASEM) Labour and Employment Ministerial in Bali in 
October 2008, for the first time, Ministers adopted a Joint Declaration that refers to the full 
respect  and  effective  implementation  of  core  labour  standards,  decent  work,  universal 
coverage of social security rights and social dialogue. This contributed to the Declaration on 
Sustainable Development adopted by the ASEM  Summit in Beijing on  24-25 October 2008 
underscoring the importance of effective implementation  of core labour standards set out in 
the 1998 ILO Declaration on Fundamental Principles and Rights at Work and the 2008 ILO 
Declaration on Social Justice for a Fair Globalisation, further adding that "promotion of full 
and  productive  employment  and  decent  work  for  all  is  crucial  to  safeguard  and  improve 
people's livelihood, realize effective social cohesion and achieve MDGs." 

•  Latin America 

Social cohesion is a priority in the EU-LA Strategic Partnership, as confirmed in the EU-LA 
Lima Summit (2008). The Lima Agenda encouraged the EU and its Latin Americans partners 
to foster the identification of means of bi-regional cooperation to promote the formulation and 
implementation  of  effective  social  policies  in  order  to  reach  social  cohesion,  making  a 
specific  reference  to  the  reform  of  the  social  protection  systems,  employment,  professional 
and vocational education, etc.  

The  2007-2013  programming  exercise  therefore  put  social  cohesion  at  the  centre  of  the 
proposed  response  strategies  for  the  17  countries  of  the  region,  as  well  as  at  regional  level. 
Some of the areas of intervention are employment generation and DW (Bolivia, Chile, CAN), 
insertion  of  young  people  in  the  labour  market  (Guatemala,  Argentina),  inclusion  of  youth 
(Guatemala,  El  Salvador),  vocational  training  (Nicaragua,  Argentina,  Honduras),  social 
assistance  (Mexico,  Chile).  Dialogues  and  exchange  of  good  practices  are  also  being 
promoted  at  a  bilateral  level  with  LA  middle  income  countries  through  the  Sector  Policy 
Dialogues  (Chile,  Brazil  and  Mexico)  and  at  a  regional  level  through  the  Eurosocial 
programme, which has an "employment strand" and which deals with social protection as an 
intersectorial  issue.  These  programmes  are  essentially  aimed  at  helping  Latin  American 
governments  and  stakeholders  to  adopt  and  implement  the  sector  and  financial  reforms 
appropriate for their internal situation. 

155 

COM(2008) 823/4, 03.12.2008 

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•  African, Caribbean and Pacific (ACP) countries and African Union (AU) 

Employment and decent work including social protection are included in the Joint Africa-EU 
Strategy  and  its  Action  Plan  (2008-2010)  adopted  at  the  EU-Africa  Summit  in  December 
2007  in  Lisbon.  It  is  one  of  the  three  pillars  of  the  Partnership  on  Migration,  Mobility  and 
Employment. Of primary importance is the promotion of the decent work agenda, the follow-
up to the ILO Declaration on Social Justice for Fair Globalisation as well as support for the 
implementation of the African Decent Work Agenda 2007-2015.  

While  limited  progress  has  been  registered  under  this  heading  at  this  early  stage,  the  AU 
considers  decent  work  as  part  of  a  broader  agenda  as  defined  by  the  Ouagadougou  2004 
Declaration and Plan of Action on Employment and Poverty Alleviation.  

Some Member States believe that the inclusion of ILO Core Labour Standards in Free Trade 
Agreements,  Economic  Partnership  Agreements  (EPAs)  and  the  Aid  for  Trade  Agenda  is  a 
success.  

CARIFORUM-EC Economic Partnership Agreement 

The  CARIFORUM  EPA  social  obligations  refer  to  relevant  international  conventions  and 
declarations, explicitly mentioning the ILO core labour standards under the 1998 Declaration 
are reaffirmed, as well as to the UN Declaration on Full Employment and Decent Work. The 
Agreement safeguards the Parties' right to determine their own level of social regulation and 
labour standards. This freedom is qualified by the affirmation of a shared ambition to legislate 
for high standards and to implement them. The key discipline is the undertaking not to lower 
social  legislation  and  standards  (or  failing  to  apply  them)  in  order  to  derive  trade  or 
investment benefit. There is also a commitment not to use labour standards for protectionist 
trade purposes. The EPA also provides for a Committee of Experts and the Agreement's civil 
society  Consultative  Committee  to  play  a  role  in  handling  issues  arising  from  its 
implementation  in  this  area.  In  addition,  the  services  and  investment  chapter  foresees 
obligations  for  the  parties  to  ensure  that  investors  act  in  accordance  with  the  core  labour 
standards  and  do  not  circumvent  international  environmental  or  labour  obligations  arising 
from agreements to which they are parties.  

3.7.2.4.  EU Development Actions in support of SDG in Developing Countries  

•  The European Commission 

The Commission will have invested about €1.9 billion from  1999 to 2010 to support demand-
driven  social  reforms  or  decent  work-related  projects  in  the  field  of  employment,  social 
inclusion  and  social  protection  in  partner  countries.  These  projects  vary  from  the 
modernisation of vocational training systems to job creation initiatives, provision of support 
to  social  funds  improving  employment  services,  tackling  child  labour  and  trafficking, 
modernising  social  protection  or  social  safety  nets.  Many  of  these  programmes  closely 
involve social partners and thus contribute to social dialogue.  

Through  the  ESIP  sector  (Employability,  Social  inclusion  and  Social  protection),  the 
Commission provides support to EC services at HQ and Delegation levels on these issues in 
the framework of the implementation of EC development cooperation and has contributed to 
the promotion of this "non traditional" sector. A series of guidelines on core labour standards, 
DW in the informal economy, social protection, a toolkit to mainstream decent work in social 

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and  non  social  EC  development  cooperation,  and  a  training  course  on  social  protection  are 
being developed. For the 2007-2013 programming period, according to an assessment of the 
National and Regional Indicative Programmes, priority issues broadly related to social issues 
are  foreseen  in  23  partner  countries  (e.g.  child  labour,  anti-fraud,  decent  work,  vocational 
training, social protection).  

The  EC  has  signed  three  joint  management  (Financial  and  Administrative  Framework 
Agreement  (FAFA))  direct  agreements  with  ILO  under  the  Employment/Social  Cohesion 
Component of the DCI Thematic Programme "Investing in People" for 2007 and 2008. Two 
projects in 2007 for a total of 7.4 M€ EC contribution: (1) M onitoring and Assessing Progress 
on  Decent  Work  in  Developing  Countries  (4M€)  which  supports  governments  and  social 
partners  in  low-income  and  middle-income  developing  countries  to  have  the  tools  and  the 
capacity to monitor trends and measure progress on DW results over time and to apply high-
quality  policy  analysis;  (2)  Assessing  the  effects  of  trade  on  employment  (3.3  M€),  which 
aims  to  improve  the  methodology  and  build  capacity  to  assess  the  inter-linkages  between 
trade  and  DW  with  a  view  to  designing  effective  and  coherent  policies  and  institutions  that 
respond to adjustment challenges and promote DW. Under the 2008 IiP action plan another 2 
joint  management  projects  with  the  ILO  regarding  social  protection/labour  market  and 
Occupational health and safety, (4M€) are under negotiation.  

Investing in People has also allowed the launching of two calls for proposals in 2009, which 
focused  on  i)  creating  networks  and  exchanging  experiences  to  improve  labour  market 
information  systems  (€  6.7  M),  and  ii)  settin g  up  demand-driven  technical  and  vocational 
education and training in formal and informal economy (€5.8 M).  

Tackling child labour is present in the cooperation activities both in terms of civil rights and 
of social protection. Among others, the EC external cooperation supports ILO in a project to 
combat  child  labour  through  education  (TACKLE)  –  an  intra  ACP  project  including  11 
countries of 15 Million Euros and a 5 Million Euros program in Pakistan. Following up the 
May 2008 Council conclusions on the promotion and protection of the rights of the child in 
the European Union's external action, the Commission is currently conducting a study on the 
scope  for  additional  measures  to  address  child  labour.  The  report  will  look  at  a  range  of 
possible instruments in relevant policy fields and build on experience and knowledge gathered 
by partners and international organisations (e.g. ILO, UNICEF). 

In the EU Strategy on Aid for Trade adopted in 2007156, the Commission and Member States 
jointly  committed  to  promote  the  social  sustainability  of  Aid  for  Trade  and  to  explore 
possibilities for consultation with stakeholders, in particular local ones and small producers.  

The  promotion  of  equality  was  thoroughly  taken  into  account  in  several  country  strategy 
papers  for  the  10th  European  Development  Fund  (2007-2013).  In  addition,  the  ENP  Action 
Plans contain provisions to promote the role of women in economic and social progress and to 
fight  against  discriminations  and  violence  towards  women.  Finally,  the  EU  was  at  the 
forefront of efforts to put gender equality at the heart of the Euro-Mediterranean Partnership. 

The  Commission  will  and  EU  Member  States  should  support  developing  countries'  targeted 
actions  to  cope  with  the  direct  social  impact  of  the  crisis  through  the  creation  and 
strengthening of social safety nets, facilitation of direct cash transfers and enhancement of in-

156 

See Council Conclusions of 15 October 2007 (No. prev. doc. 13070/07). 

EN 

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kind  transfers.  The  Commission  will  give  specific  attention,  when  feasible  and  needed,  to 
social safety nets, labour-intensive works and the reform of labour markets157.  

Though important progress has been made in the area of EC development cooperation, further 
progress  is  needed.  The  mid-term  review  of  EC  external  programming  in  2009  presents  an 
opportunity  to  suggest  adjustments  as  appropriate  on  the  current  policy  orientations,  while 
respecting  the  principle  of  ownership  and  the  demand-driven  nature  of  development 
cooperation.  

•  Member States 

Since  2007,  some  Member  States  have  established  policy  frameworks  with  a  view  to 
promoting  PCD  in  this  area.  Dutch  businesses,  civil  society  organisations,  knowledge 
institutions, individuals, several ministries and state secretaries signed the Schokland Pact in 
2007,  which  is  a  compilation  of  agreements  including  a  specific  undertaking  by  the 
signatories to make a contribution to achieving one or more MDGs. Germany is developing a 
decent  work  paper  comprising  the  four  pillars  of  the  agenda  and  presenting  ongoing  and 
planned  projects  in  the  area.  Finland  has  created  an  ad  hoc  Working  Group  to  draft  the 
Development Policy Strategy for the Ministry of Employment and the Economy. The group is 
coordinated by the MFA, and its aim is to increase development cooperation policy coherence 
in the field of employment and the economy. 

With  a  view  to  integrating  employment  and  decent  work  principles  into  cooperation 
agreements with developing countries, Member States report some progress. Hungary signed 
an  inter-ministerial  agreement  on  cooperation in  the  field  of  labour,  employment  and  social 
affairs with Azerbaijan in 2007. Hungary also organised a conference on undeclared work in 
2008, which contributed to the promotion of dialogue among Member States and developing 
countries.  Germany  has  integrated  SDG  issues  into  sector-specific  policy  dialogues  with 
China and India. For Germany, compliance with the ILO core labour standards is a binding 
criterion  in  assessing  cooperation  projects  and  development  progress  of  partner  countries. 
During  Denmark’s  yearly  dialogue  meeting  with  programme  countries,  the  ratification  and 
implementation of the ILO’s fundamental conventions are discussed. 

Member States have equally made some progress in supporting more social policy actions at 
country and regional level. Denmark for example has supported the creation of a High Level 
Africa Commission, which focuses on youth, employment and economic growth. 

Member  States  also  report  some  progress  in  addressing  decent  work,  gender,  children  and 
youth issues in development programmes, including the fight against child labour, trafficking 
and sexual violence and enhancing partner countries’ attention and capacity on these issues. 
The  UK  is  supporting  the  Ethical  Trading  Initiative,  an  organisation  bringing  together  trade 
unions,  NGOs  and  businesses,  which  seeks  to  improve  working  conditions  in  the  supply 
chains  of  corporate  members  by  implementing  a  code  of  conduct  based  on  international 
labour standards and developing best practice in the implementation of those standards.  

The European Economic and Social Committee (EESC) 

157 

COM (2009) 160 final, 08.04.2009 

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The EESC actively promotes the concepts of decent work, employment creation, vocational 
training,  social  dialogue  and  respect  for  and  implementation  of  core  labour  standards  in 
opinions  which  it  delivers  and  in  final  declarations  of  seminars  and  conferences  with 
developing countries. The Opinion on the Africa-EU Strategy concentrating on employment 
creation  in  ACP  countries  and  promotion  of  decent  work  and  the  Opinion  on  'How  to 
integrate social aspects into the EPAs' show the active role played by the EESC in this area. 
The inclusion of a social chapter and institutional provisions for the creation of a Civil Society 
Consultative  Committee  in  the  CARIFORUM-EC  EPA  is  a  good  example  of  integration  of 
social aspects. It is the first time that an EU trade agreement includes such a provision. The 
EESC  is  currently  working  closely  with  the  European  Commission  to  establish  the 
Consultative  Committee  by  the  end  of  2009.  EESC  suggests  to  export  this  model  to  other 
comprehensive EPAs and to trade agreements with other regions 

The  EESC  actively  promotes  and  supports  the  establishment  or  consolidation  of  Economic 
and  Social  Councils  and  of  consultative  bodies  at  the  regional  level.  In  Latin  America  for 
instance,  the  EESC  has  provided  expertise  and  information  in  addition  to  an  exchange 
programme  of  delegates  between  the  EESC  and  the  Mercosur  Economic  and  Social 
Consultative  Forum  (FCES).  Within  the  context  of  relations  with  ACP  countries,  the  EESC 
has  over  the  years  expressed  political  support  for  the  ILO-  Prodiaf  programme  of  social 
dialogue at the regional level in French-speaking African countries. Several final declarations 
of regional seminars and all-ACP conferences have included statements to this effect. 

3.7.3.  Conclusion & Outstanding Issues 

Member States rate EU progress in the area of the social dimension of globalisation as slightly 
above average (see chart below158). Several Member States welcome the EU’s commitment to 
raising  important  issues  in  international  fora.  Implementation  of  these  commitments  on  the 
ground  could  be  enhanced.  Improved  coordination  across  Member  States  could  avoid 
fragmented assistance. Member States acknowledge the amount of progress in including the 
Social Dimension of Globalisation in EU policy papers.  

The challenge of extending social protection in both formal and informal economies needs to 
be addressed, which also means improving coherence between policies in the trade, financial 

158 

Chart  based  on  Member  States'  responses  to  a  dedicated  PCD  2009  questionnaire  prepared  by  the 
European Commission. 

EN 

111 

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and  social/development  sectors  and  institutions  at  all  levels.  This  has  become  increasingly 
evident in light of the financial crisis. Partner countries and donors need to scale up efforts to 
develop  systems  of  social  protection  with  broader  and  more  effective  coverage  adapted  to 
each country’s needs and circumstances. "Social protection, and more generally, protection of 
progress  achieved  in  the  MDGs  in  the  face  of  risk  and  uncertainty  should  be  on  every 
country's agenda. In this  respect,  the diffusion of innovations  in developing countries  in  the 
fields  of  cash  transfers  –  so  called  conditional  cash  transfers  -,  guaranteed  employment 
schemes, or new insurance products is to be encouraged".159 

The issues that are to be tackled in the social dimension of globalisation field (decent work, 
gender, children, youth, employment programmes) seem very wide-ranging and coordination 
and coherence may be very difficult to achieve. Some Member States’ responses show that a 
clear understanding of the notion of the ‘social dimension of globalisation, employment and 
decent  work’  is  lacking.  The  internal  EU  dimension  related  to  the  Lisbon  strategy  and  the 
goals of  the external  dimension need to  be  identified in a clearer manner. A clarification of 
what the external dimension of the social dimension of globalisation, employment and decent 
work entails is needed.  

As  many  Member  States  work  with  the  ILO  bilaterally,  this  cooperation  could  be  further 
increased at EU level also. Some Member States have reported that understandings of ‘decent 
work’ Conventions differs at partner country level, which should be clarified with the ILO to 
ensure  that  all  partners  are  on  the  same  wavelength,  and  subsequently  to  facilitate  Member 
State alignment with partner country initiatives.  

Policy  statements  on  the  synergies  between  development  and  the  social  dimension  of 
globalisation  are  lacking  on  several  levels,  as  are  coordination  mechanisms.  Adequate 
monitoring mechanisms should also be provided for.  

In light of the global economic crisis the social dimension of globalisation and decent work 
becomes even more important for development and for poverty reduction. Increasing the level 
of social protection, funding of social safety nets and using the decent work agenda as a tool 
to tackle the crisis are critical elements in addressing the issues. Promoting and taking account 
of the gender dimension as an automatic reflex across the board is crucial in this respect.  

Outstanding Issues 

•  PRSPs  are  more  employment-friendly,  thanks  to  ILO  involvement,  but  additional  efforts 
are  needed  to  incorporate  core  labour  standards,  and  other  labour  standards,  where  and 
when required. Beyond this, ILO should be actively involved in improving social partners’ 
participation  in  countries  where  social  dialogue  is  limited  and  further  involved  in  UN 
reform, developing more links with UNDAFs. 

•  Support the design and implementation of policies to reduce salary inequity and especially 
gender  inequalities  within  countries.  Particular  attention  should  be  paid  to  integrating 
Social Dimension in Agricultural and Rural policies at domestic level. 

159 

European Development Report October 2008 "Millennium Development Goals at Midpoint: Where do 
we stand and where do we need to go?" François Bourguignon et all 

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•  Integrate  the  decent  work  and  employment  agenda  into  the  EU-China-Africa  trilateral 

dialogue. 

•  Given  the  importance  of  employment  as  a  driver  of  south-south  and  south-north 
migrations, greater consideration should be given to employment and decent work agenda 
in EU migration policies. 

•  Linking employment issues with global challenges, public policies on climate changes, in 

particular the promotion of "green" employment, should integrate SDG aspects. 

EN 

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3.8.  Migration  

Quick Facts 

•  Today  about  200  million  people,  roughly  3%  of  the  world's  population,  are  foreign 

born.160 

•  Women account for 49.6% of global migrants.161  

•  According  to  the  latest  estimations  of  the  World  Bank,  remittances  flows  to 

developing countries reached $305 billion in 2008.162  

•  Sending remittances to Africa is costly. In 2006, sending $200 from London to Lagos 
cost $29, and sending the same amount from Benin to Lagos cost over $34.163 This 
often leads to the use of informal channels to send money home. 

•  By 2050 33% of the population in the EU will be over 65. There will be two retirees 

per every one active person164.  

3.8.1. 

Introduction 

Migration  and  mobility,  if  properly  managed,  contribute  to  the  reduction  of  poverty  in 
developing  countries  and  thus  directly  or  indirectly  to  the  achievement  of  Millennium 
Development Goals.  

In  the  current  global  economic  and  financial  turmoil  it  is  crucial  to  keep  the  EU  long  term 
commitment to maintain an open Union, responding to the needs of the EU economic systems 
and  the  demographic  trends,  within  a  wider  global  perspective.  Migration  and  mobility,  as 
global  phenomena,  will  continue.  EU  policies  must  be  designed  to  take  advantage  of  the 
multiple  opportunities  it  offers  to  ensure  that  migration  indeed  benefits  countries  both  of 
origin and of destination to maximise the developmental effects of our migration policy while 
minimising its negative side effects. 

Temporary  or  permanent  outward  migration  from  developing  countries  can  contribute  to 
poverty  reduction.  These  countries  can  benefit  from  reduced  labour  market  pressures, 
important levels of migrant remittances and the transfer of knowledge and skills of migrants. 
Remittances play an important role in reducing poverty among recipients. For some countries 
remittances  are  an  important  source  of  external  revenues  (like  India  $27.0  bn,  Bangladesh 

160 
161 

162 

163 

164 

in 

Stock: 

Trends 

World Bank, World Development Report 2009, page 150 
United  Nations' 
Total  Migrant 
http://esa.un.org/migration/index.asp?panel=4 
Commission  Staff  Working  Paper  accompanying  the  Communication:  "Supporting  developing 
countries in coping with the crisis. Where does the EU go from Doha? What prospects for meeting the 
EU  targets  of  2010  and  2015?  Annual  progress  report  2009  on  financing  for  development". 
SEC (2009) 444, 8.04.2009. 
New  Ways  to  Finance  Development  in  Sub  Saharan  Africa,  Dilip  Ratha,  Sanket  Mohapatra,  Sonia 
Plaza, World Bank Research Paper 4609, 01.04.2008. 
Shaping the Future, A Long-Term Perspective of People and Job Mobility in the Middle East and North 
Africa, World Bank, Middle East North Africa (MENA) report, 16.03.2009. 

2005  Revision. 

The 

See 

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$6.4  bn,  Sudan  $1.2  bn)165.  Much  can  be  done  to  help  by  defining  policies  which  facilitate 
links  and  involvement  of  migrant  communities  and  diaspora  groups  with  their  countries  of 
origin, including by promoting innovative solutions for transferring money. 

One  of  the  major  downsides  of  migration  which  needs  to  be  addressed  is  brain  drain  and 
'brain  waste',  in  particular  in  sensitive  sectors  such  as  health  and  education.  Brain  drain 
exemplifies  some  of  the  major  challenges  and  contradictions  of  the  global  migration 
discourse:  education  and  training  policies  in  developing  countries  could  have  an  effect  on 
retention and return, while the efforts of developing countries are challenged by recruitment 
policies in Europe and elsewhere.  

Impact of the global crisis on remittances flows  

The  global  economic  slowdown  is  affecting  developing  countries  that  depend  heavily  on 
remittances,  with  Kenya  for  example  reportedly  experiencing  a  fall  of  -38%  .  This  is  partly 
due  to  the  fact  that  in  times  of  crisis,  migration  flows  might  slow  down,  but  the  stock  of 
international  migrants  (and  therefore  the  remitters)  is  unlikely  to  decrease166,  in  addition, 
remittances  form  a  small  part  of  migrants'  income,  which  they  most  likely  will  continue  to 
send.  Although  private  money,  much  can  be  done  to  help  defining  policies  which  facilitate 
links  and  involvement  of  migrant  communities  and  diaspora  groups  with  their  countries  of 
origin,  including  by  promoting  innovative  solutions  for  transferring  money.  "Preliminary 
estimates suggest that Sub-Saharan African countries can potentially raise $1 to $3 billion by 
reducing the cost of international migrant remittances, $5 to $10 billion by issuing diaspora 
bonds,  and  $17  billion  by  securitising  future  remittances  and  other  future  receivables"167. 
Finally, gender matters. Remittances often benefit families who stay behind in the countries of 
origin. Female migrants tend to  send  remittances over longer periods and the level of their 
remittances seems higher.168 

Circular migration policies are  a good example of how  migration can potentially be a triple 
win: the migrants may improve their skills and knowledge, the country of origin can benefit 
from increased financial and knowledge transfers as well as reduced labour market pressure, 
and the country of destination can address temporary shortages on the labour market.  

3.8.2.  Progress towards PCD Commitments  

Since the 2007 EU Policy Coherence for Development report, further progress has been made 
in  terms  of  dialogue,  partnership  and  joint  action.  At  political  level  there  is  general 
recognition  amongst  the  relevant  institutional  actors  that  well-managed  migration  can 
positively contribute to development, employment, mobility and growth, both in the EU and 
in third countries. This is reflected in the EU political dialogue framework and throughout the 
instruments put in place to implement migration policy commitments. Migration is thus firmly 

165 
166 

167 

168 

World Bank Migration and Remittances Factbook 2008 
Outlook  for  Remittance  2008-2010,  World  Bank  Dilip  Ratha,  Sanket  Mohapatra  and  Zhimei  Xu, 
11.11.2008 
New  Ways  to  Finance  Development  in  Sub  Saharan  Africa,  Dilip  Ratha,  Sanket  Mohapatra,  Sonia 
Plaza,WorldBank Research Paper 4609, 01.04.2008. 
"Development and Migration from a Gender Perspective" International Training and Research Institute 
for the Advancement of Women, paper presented at the Seventh Coordination Meeting on International 
Migration,  UN  Secretariat  Population  Division,  Department  of  Social  and  Economic  Affairs,  20.11. 
2008 

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on  the  European  Union's  policy  agenda  and  increasingly  being  integrated  into  other  policy 
areas such as development, foreign affairs, employment and social affairs while development 
concerns are increasingly being taken into account when it comes to migration policy. 

3.8.2.1.  A comprehensive policy framework  

The Global Approach to Migration, adopted in 2005 provides an overall policy framework on 
the  external  dimension  of  the  European  Union's  migration  policy,  particularly  taking  into 
account the migration and development dimension. First designed for the Southern Migratory 
Route,  it  was  extended  in  2007  to  the  Eastern  Migratory  Route.  Since  its  adoption,  it  has 
aimed at genuine partnership with third countries, full integration into the EU's other external 
policies,  and  the  incorporation  of  all  migration  and  asylum  issues,  in  a  comprehensive  and 
balanced manner, covering legal migration, illegal migration and migration and development. 
PCD commitments are fully integrated into the policy framework and featured as a key factor 
in the most recent Commission Communication on the topic169.  

These  principles  were  reaffirmed  at  the  highest  political  level  in  October  2008  when  EU 
Member States agreed to a number of basic principles of cooperation with the adoption of the 
European  Pact  on  Immigration  and  Asylum.  The  Pact  henceforth  formed  the  basis  of  a 
common immigration and asylum policy founded on proper management of migratory flows, 
in  the  interests  not  only  of  the  host  countries  but  also  of  the  countries  of  origin  and  of  the 
migrants themselves. Implementation of the Pact will be the subject of an annual debate in the 
European Council in the first half of 2010.  

Based  inter  alia  on  a  Commission  Communication  presented  in  June  2009  and  broad 
consultation with stakeholders, the European Council will adopt by December 2009 the next 
five-year  work  programme  for  freedom,  security  and  justice  in  the  EU.  This  so-called 
'Stockholm  Programme'  will  set  the  agenda  for  the  years  to  come.  Migration,  including  the 
nexus migration and development, will form an important part of this Programme.  

Member  States  emphasise  that  since  2007  the  link  between  migration  and  development  has 
been  reinforced  within  their  governments  and  their  policies.  The  focus  has  mainly  been  on 
implementation. However, several Member States mention limited success with their attempts 
to integrate migration into national development strategies partly because positive aspects of 
migration are not always recognised as such in partner countries and engaging development 
practitioners in this particular field has not been easy.  

3.8.2.2.  Political dialogue with Africa 

Dialogue  with  African  partners  has  been  particularly  active  at  all  levels  since  2007.  At  a 
continental  level  and  following  on  from  the  Tripoli  Declaration  on  Migration  and 
Development  of  November  2006,  an  EU-Africa  Partnership  for  Migration,  Mobility  and 
Employment was adopted by the EU-Africa Summit of Heads of  States  and  Government in 
Lisbon  in  December  2007170.  This  Partnership  reflects  an  agreed  understanding  and 
commitment on the part of African and EU countries to jointly address migration and mobility 
issues  in  the  framework  of  labour  market  disparities  both  within  and  between  the  two 

169 

170 

Strengthening  the  Global  Approach  to  Migration:  increasing  coordination,  coherence  and  synergies 
COM(2008) 611 final, 08.10.2008 
One  of  eight  partnerships  launched  along  with  the  Joint  Africa-EU  Strategy  approved  at  the  Lisbon 
Summit. 

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continents. At a regional level, a Declaration on Migration and Development was adopted in 
Paris in November 2008 focusing on the management of migratory flows along the western 
migratory  route,  as  follow-up  to  the  Rabat  Declaration  in  2006.  At  a  national  level,  four 
additional political dialogue missions171 have been carried out since 2007 in Nigeria, Ethiopia, 
South Africa and Tanzania.  

As a tool to follow up concretely political dialogue, a cooperation platform has been set up in 
Ethiopia. Its aim is to gather all actors concerned by migration both on the EU side and of the 
partner country and to provide a forum for dialogue on the topic. In line with this concept, a 
migration dialogue forum was set up in South Africa.  

Most  Member  States  state  that  they  support  the  EU-Africa  Strategy  and  its  Partnership  on 
Migration, Mobility and Employment. Member States  call  for  more  participation and active 
commitment by Member States and African partners in the Partnership. 

3.8.2.3.  Political dialogue with other regions  

The migration situation in Eastern Europe and Central Asia has been for long in the centre of 
interest  of  a  number  of  EU  MS.  However,  until  recently  their  migration  initiatives  focused 
largely  on  border  management  and  asylum  policy,  while  the  migration/development 
dimension was less accentuated. The extension of the Global Approach to Migration on these 
regions in 2007 has changed the approach. Following its Ministerial Conference on "Building 
Migration partnerships", the EU is enhancing its dialogue on all dimensions of migration. The 
impact of mobility on labour markets will also be addressed under the newly launched Eastern 
Partnership.  

Finally  the  EU  has  also  developed  its  dialogue  with  Asia  and  Latin  America  on  migration-
related issues, notably in the EU-LAC (Latin America and Caribbean) framework. 

The EU has an extensive legislation regarding the protection of migrants' rights. One of the 
issues which is recurrently raised in EU's dialogue with third countries and regions concerns 
migrants' rights, in particular in relation to the 1990 United Nations International Convention 
on the Protection of the Rights of All Migrant Workers and Members of their Families.  

3.8.2.4.  Brain drain 

The  EU's  policy  on  addressing  the  shortage  of  health  workers  in  developing  countries  is  a 
good  example  of  the  EU  effort  to  ensure  that  policies  in  Europe  are  coherent  with  external 
action and that policy proposals for internal EU action to  solve Europe's own challenges do 
not have an adverse impact on the situation in developing countries. The programme for EU 
action to tackle the critical shortage of health workers in developing countries (2007-2013)172 
has a strong component dealing with internal EU action - namely it calls for development and 
implementation of a set of ethical principles that would guide recruitment of non-EU health 
workers and for further enabling circular migration as a means to favour knowledge transfers 
while addressing labour market needs.  

171 
172 

Under articles 8 and 13 of the Cotonou Partnership Agreement 
COM(2006) 870 final, 21.12.2006 

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PCD challenges related to brain drain were further explored in 2008 by the Commission in a 
Staff  Working  Paper173,  which  advocates  definition  and  implementation  of  country-specific 
'safeguarding skills for development' policies, based on training, retention, ethical recruitment, 
return  and  integration.  Strategies  need  to  look  across  generations,  including  youth.  The  EU 
education  programmes,  such  as  Erasmus  Mundus  and  Edulink,  have  positive  effects  on 
retention, return and circular mobility. In May 2008174, the Council invited Member States, in 
partnership with the countries concerned, to facilitate voluntary return and reintegration in the 
country of origin in a holistic and coherent manner to advance the "brain gain"175.  

Moreover  in  November  2008,  the  Council  adopted  conclusions  on  the  Commission's  staff 
working  document  on  the  implementation  of  the  EU  programme  for  action  to  tackle  the 
critical shortage of health workers in developing countries, in which the Council reiterates the 
need to strengthen the translation of the existing policy into action, especially with respect to 
the  development  and  implementation  of  an  EU  Code  of  Conduct  for  recruitment  of  health 
workers  from  developing  countries  that  would  draw  upon  existing  experience  of  Member 
States and the work of the WHO on a global code of practice in this area. The report shows 
that  there  are  indeed  already  examples  on  which  the  EU  can  build,  such  as  the  "Code  of 
Conduct and follow-up on Ethical Cross-Border Recruitment and Retention" signed in 2008 
jointly  by  the  European  Hospital  and  Healthcare  Employers’  Association  and  the  European 
Federation of Public Service Unions within the framework of the hospitals' European Sector 
Social Dialogue Committee, or the UK Code of Practice published at the end of 2004. 

Safeguards to avoid brain drain as such were introduced in the Directive to facilitate the entry 
and residence of highly skilled workers (see  below). In addition, the  European  Commission 
took  further  steps  in  the  area  of  health  workers  and  in  2008  drafted  a  Green  Paper  on  the 
European workforce for health. The Green Paper stresses the crucial importance of scaling up 
the EU's own health workforce (this could be done e.g. by taking the necessary steps to ensure 
that enough doctors, nurses, engineers and researchers are trained in European countries and 
that  they  have  working  conditions  that  are  sufficiently  attractive  to  discourage  them  from 
looking for greener pastures in other developed countries outside the EU176) and also proposes 
to  put  in  place  an  EU-wide  set  of  principles  to  guide  recruitment  of  health  workers  from 
developing countries, introduce methods for monitoring the situation, stimulate bilateral and 
multilateral  agreements  with  source  countries  and  developing  mechanisms  for  support  of 
circular migration.  
Some Member States - notably France, Germany and the Netherlands - have begun to work 
on developing programmes which would encourage migrant health workers to return to and 
resettle  in  their  countries  of  origin  or  enable  them  to  leave  for  extended  periods  without 
affecting  their  residency  status.  Further  study  in  the  EU  building  on  research,  existing  best 
practices and consultation with relevant stakeholders in the EU and developing countries, will 
need to be undertaken to increase the scale of such initiatives, to institutionalise them and to 
make  "dual  posting"  or  other  options  that  stimulate  circular  migration  sufficiently  attractive 
and still workable for health workers, their families and their employers. 

173 

174 
175 
176 

EN 

Paper 

Staff  Working 

Commission 
Change/Energy/Biofuels, Migration and Research, SEC (2008) 434/2. 
Conclusions of the Council 27 May 2008, 9907/08 
Brain gain designates the return of qualified persons to the countries of origins 
Commission 
Paper 
Change/Energy/Biofuels, Migration and Research, SEC (2008) 434/2.09.04.2008 

Policy  Coherence 

Policy  Coherence 

Staff  Working 

for  Development.  Climate 

for  Development.  Climate 

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3.8.2.5.  Labour / circular migration and increased mobility 

Since  2007,  a  number  of  initiatives  have  been  adopted  to  integrate  legal  migration 
opportunities  into  the  Union's  external  policies  and  to  facilitate  circular  and  temporary 
migration.  

The Directive to facilitate the entry and residence of Highly Qualified Migrants (also known 
as  the  "Blue  Card  directive")  was  approved  in  May  2009177.  It  seeks  to  establish  more 
attractive entry and residence conditions for third-country nationals to take up highly qualified 
employment  in  EU  Member  States.  To  this  end,  it  introduces  a  fast-track  admission 
procedure,  a  common  residence/work  title  ("EU  Blue  Card"),  foresees  measures  facilitating 
the intra-EU mobility and grants a number of generous facilitating the intra-EU mobility and 
grants a number of generous socio-economic rights on the basis of equal treatment with EU 
workers  as  well  as  favourable  conditions  for  family  reunification.  A  number  of  safeguards 
have been introduced to increase transparency and avoid brain drain effects in the form of a 
circular migration clause, a brain drain clause, an ethical recruitment clause and Member State 
reporting duties.  

Various initiatives were taken concerning circular migration from a development perspective 
such  as  the  workshop  on  circular  migration  which  the  Commission  co-organised  with  the 
government  of  Mauritius  (September  2008)  followed  by  a  workshop  in  Brussels  in  March 
2009.  These  workshops  aim  at  exchanging  best  practice  on  circular  migration  to  benefit 
further policy development 

A  number  of  initiatives  will  be  taken  forward  with  a  view  to  fostering  increased  mobility 
between the EU and third countries178. In particular, the proposal for a directive on a single 
application permit aims to ensure a common set of rights to all third-country workers already 
admitted  and  legally  working  in  a  Member  State.  Acknowledging  the  contribution  made  by 
the  legal  immigrant  workers  to  the  EU's  economy  and  to  help  them  better  integrate,  the 
proposal  seeks  to  guarantee  basic  socio-economic  rights  on  an  equal  footing  with  Member 
State's  own  nationals,  in  particular  as  regards  working  conditions  and  pay,  education,  trade 
union's rights and social security.  

Migration Information and Management Centre in Mali (CIGEM) 

CIGEM was set up in Bamako (Mali) and is funded by the European Union in the framework 
of its cooperation with Mali. It aims at providing concrete information to potential migrants 
on legal migration opportunities but also on the risks of illegal migration. It will also provide 
advice to the Malian government on its migration policy and support Diaspora organisations 
wanting  to  invest  in  their  country  of  origin  and  provide  information  and  reintegration 
assistance to returning migrants. It was inaugurated in October 2008179.  

177 
178 

179 

Directive 2009/50/EC of 25 May 2009 (OJ L 155, p. 17). 
A proposal for a directive on a single application permit for third-country nationals to reside and work 
in the territory of a Member State and a common set of rights for third-country workers legally residing 
in a Member State (COM (2007) 638 final); a proposal for a directive on the conditions of entry and 
residence of seasonal workers (scheduled for 22 July 2009); a proposal for a directive on the procedures 
regulating the entry , the temporary stay and residence of Intra-Corporate Transferees (ICT) (scheduled 
for 22 July 2009). 
See www.cigem.org 

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A few Member States have developed new policies in order to encourage circular migration. 
Some Member States (e.g. Spain, Portugal, Italy, France) have introduced multi-entry permits 
or facilitated re-entry procedures to promote circular migration, mainly in the area of seasonal 
workers. The Netherlands has started a pilot project which will give migrants the possibility to 
work  in  the  Netherlands  and  return  to  their  country  of  origin  for  a  longer  period  of  time, 
without  losing  the  right  to  residence.  The  Netherlands  has  also  broadened  the  access  of 
asylum  seekers  to  the  Dutch  labour  market.  Similarly,  Sweden  has  changed  its  policy 
concerning  the  allowed  period  of  absence  and  residential  rights,  giving  migrants  the 
opportunity  to  return  to  their  countries  of  origin.  Portugal  introduced  a  law  in  2007  which 
facilitates circular migration, letting migrants keep their residence permit after long absences, 
if  they  were  active  in  a  professional  occupation  in  their  country  of  origin.  Improved 
portability  of  social  rights,  the  right  to  residence  as  well  as,  ultimately,  citizenship  may  be 
core issues to favour increased migrant mobility. 

3.8.2.6.  Remittances 

The  higher  awareness  in  recent  years  of  the  importance  of  remittances  in  promoting 
development  and  various  international  initiatives  are  gradually  becoming  visible  in  the 
implementation of concrete measures180. Regarding EU-specific commitments on remittances, 
significant progress has been made on ensuring more reliable data on remittances, favouring 
cheaper, faster and more secure flows of remittances and stimulating the development impact 
of remittances. A few examples can be mentioned181: 

•  Most EU Member States have progressed since 2007 on reducing the cost and improving 
the safety of remittances. Substantial progress has been achieved with the adoption of the 
Payment Services Directive (PSD) in November 2007, which provides the legal foundation 
for the creation of an EU-wide single market for payments. While the Directive will only 
be applicable to payments made within the EU, it will be revised in 2011 and could then be 
extended to international remittances.  

•  Some  Member  States,  such  as  Belgium  and  the  UK,  are  currently  exploring  the 
development of a chip-card for remittances transfers via mobile phones which would allow 
for  much  lower  costs  and  an  improved  accessibility  given  the  proportion  of  people  in 
possession  of  a  mobile  phone  in  developing  countries.  Others,  like  France,  favour  the 
development  by  banks  of  services  dedicated  to  migrants  (creation  of  specific  agencies, 
insurance products). 

•  Several  Member  States  and  the  Commission  are  supporting  developing  countries  in  the 
establishment  of  policy  framework  more  conducive  for  remittances.  For  instance,  the 
European  Community  supports  the  setting  up  of  an  African  Remittances  Institute  in 
partnership with the World Bank and under the leadership of the African Union. Its core 
objective consists in providing capacity building for Member States of the African Union, 
remittance  senders  and  recipients,  private  sector,  universities,  and  other  stakeholders  to 
develop and implement concrete strategies and operational instruments to use remittances 
as development tools for poverty reduction.  

180 

181 

Among  those  main  initiatives  were  the  guidelines  for  the  compilation  of  data  on  remittances  by 
the"Luxembourg Group", the "General Principles for International Remittances Services" and the recent 
G8 initiative for a "Global Remittances Working Group" coordinated by the World Bank. 
For a more complete assessment, see the COM (2009) 160 Final, 08.04.2009  

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•  Recent  measures  by  some  Member  States  such  as  the  provision  that  money  transfer 
organisations are required to inform the local law enforcement authorities within 12 hours 
in case the person wishing to transfer funds is unable to present a resident permit, might be 
counter-productive from a development perspective, favouring the transfer of remittances 
through informal channels. 

3.8.2.7.  Diaspora  

Diaspora organisations being considered as potential actors in the filed of development, tools 
have been put in place to foster their involvement in development projects. The EC-UN joint 
initiative  for  migration  and  development  (€15  million)  fosters  exchange  of  experience  and 
best  practices  among  diaspora  organisations,  provides  capacity  building  and  supports  their 
involvement  in  the  development  of  their  countries  of  origin.  Promoting  dialogue  and 
cooperation  with  diasporas  is  one  of  the  key  aspects  of  this  programme.  In  June  2008  a 
workshop took place in Brussels, which highlighted -inter alia- the need for a more structured 
dialogue mechanism with African diaspora at European level. 

A  number  of  Member  States  have  attempted  to  involve  diasporas  in  their  development 
policies.  They  have  commissioned  studies  to  research  the  possible  impact  of  involving 
diasporas, and they have tried to engage the diasporas in projects in their home countries to 
develop  the  private  sector.  Belgium  for  example,  has  done  a  study  on  the  Congolese  and 
Moroccan diaspora. France has carried out a study on migratory corridors to Morocco, Mali, 
Comoros  and  Senegal,  in  cooperation  with  the  African  Development  Bank  and  the  World 
Bank and is also supporting World Bank and African Development Programmes, which aim 
to increase the involvement of diasporas in development matters and facilitate the transfer of 
remittances. 

3.8.2.8.  Mobility Partnerships 

Mobility  Partnerships  were  concluded  with  Cape  Verde  and  the  Republic  of  Moldova. 
Conceived as one of the main tools to implement the Global Approach, they provide a wide 
framework  for  cooperation  as  regards  management  of  migration  and  mobility.  A  similar 
Partnership is currently being negotiated with Georgia.  

Mobility  partnerships  have  an  important  development  component.  In  the  Republic  of 
Moldova, the flagship project coordinated by the Swedish Public Employment Service aims at 
strengthening the capacities of the National Employment Agency to support reintegration of 
returning migrants and to provide information on legal employment in the EU. Hungary and 
Romania  organised  training  sessions  and  an  exchange  of  experience  with  Moldovan  public 
services,  awareness  campaigns  for  migrant  workers  have  been  organised,  and  strengthened 
links  with  the  Moldovan  diaspora  have  been  established.  Also  in  this  framework  several 
Member  States  have  concluded  or  are  negotiating  social  security  agreements  with  the 
Republic of Moldova to ensure portability of rights. The work on support for human capital 
development and recognition of professional qualifications of migrant workers (returning and 
emigrating), instrumental to counteract brain waste, is implemented by the European Training 
Foundation.  

As  part  of  the  Mobility  Partnership  with  Cape  Verde,  Portugal  and  Spain  participate  in  the 
CAMPO (Centre for the Support of Migrants in the Country of Origin) project, which aims to 
match skills with available jobs and to provide relevant information on migration channels so 
as to promote legal migration. It also supports returning migrants’ entrepreneurship. Member 

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States  assess  the  Mobility  Partnerships  to  be  beneficial  to  partner  countries,  as  they  have 
strengthened  the  dialogue  between  all  partners,  common  challenges  and  interests  have  been 
identified and areas for cooperation have been singled out. 

3.8.3.  Conclusion & Outstanding Issues 

Through  its  Global  Approach  to  Migration,  the  European  Union  seeks  to  ensure  that  the 
positive  benefits  of  migration  are  harnessed  to  bring  mutual  benefit  to  the  EU  and  partner 
countries. The Policy Coherence for Development process is instrumental in ensuring that this 
delicate balance is advanced.  

Since 2007, the European Union has reinforced its dialogue with third countries on migration 
and development issues while further integrating mutual migration concerns and challenges in 
cooperation  with  these  countries.  Member  States  rate  the  EU's  progress  as  average  to  good 
(see chart above182). They welcome the Mobility Partnerships with Moldova and Cape Verde, 
the cooperation platform in Ethiopia as well as the Blue Card scheme. According to Member 
States, particularly the Mobility Partnerships have the potential to improve policy coherence, 
both  among  participating  EU  Member  States  and  the  Commission.  Member  States  consider 
the Mobility Partnerships to be beneficial to partner countries, as they have strengthened the 
dialogue  between  all  partners,  common  challenges  and  interests  have  been  identified  and 
areas for cooperation have been singled out. The real policy challenge for the coming years 
remains  therefore  whether  the  EU  and  its  Member  States  are  capable  and  prepared  to  offer 
real  migration  and  mobility  options  for  nationals  of  developing  countries  seeking  legal 
employment  in  the  EU.  Portability  of  socio-economic  rights  is  also  being  addressed  but 
should be further tackled in the coming years. 

Implementation has started and must continue on a number of issues, especially remittances, 
increased mobility, stronger relationships and dialogue with diaspora organisations. However, 
the  agenda  still  needs  to  be  taken  forward  especially  when  it  comes  to  facilitating  labour 
migration, labour matching, the efficient transfer and recognition of new skills and addressing 
brain  drain.  New  issues,  such  as  the  impact  of  the  economic  crisis  and  climate  change  on 
migration, will be further explored. 

182 

Chart  based  on  Member  States'  responses  to  a  dedicated  PCD  2009  questionnaire  prepared  by  the 
European Commission 

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Outstanding Issues 

•  Offering real migration and mobility options for nationals of developing countries seeking 

legal employment in the EU.  

-Negotiate Mobility Partnerships with other third countries; 

-Launch  more  pilot  schemes  on  circular  migration  and  undertake  further  study  in  the  EU 
building on research, existing best practices and consultation with relevant stakeholders in the 
EU and developing countries explore options to stimulate circular migration; 

-Consider the establishment of further labour migration information and management centres 
in  third  countries;  in  general  terms,  reinforce  capacities  of  the  relevant  authorities  in  third 
countries to manage migration and to provide information about legal migration opportunities; 

-Consider visa facilitation for certain groups of third-country nationals; 

-Expand best practices regarding the right to residence and on other citizenship issues. 

•  Further progress in the definition and implementation of a common approach to migrants' 
rights,  so  as  to  strengthen  the  EU's  international  credibility  and  the  coherence  of  EU 
migration policy with its development and human rights policies. 

•  Continue  implementation  of  the  migration  and  development  agenda  of  the  Global 

Approach 

-Develop  and  implement  country  specific  'safeguarding'  skills  for  developing  countries  to 
address brain drain. 

-Strengthen dialogue and cooperation with diaspora groups and migrant communities; support 
the emergence of diaspora networks at European level 

-Continue to promote cheaper, faster and more secure flows of remittances and stimulate the 
development  impact  of  remittances  and  promote  legal  channels  for  transferring  remittances, 
including by ensuring that the relevant legislation does not contain provisions hampering the 
effective use of these channels by migrants. 

-Recalling that introducing  aid  conditionality (e.g. in the context of  negotiations of bilateral 
agreements in the area of migration) is not an effective way of addressing the problem, and 
that the global approach is the best conduct to follow. 

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3.9. 

Research and Innovation  

Quick Facts  

•  The  global  recession  has  meant  many  developing  countries  are  losing  markets  for  their 
goods,  eliciting  cries  from  their  leaders  for  more  science,  technology  and  engineering 
graduates to improve productivity and diversify products, so as to salve economic woes.183  

•  African  Finance  Ministers  consider  scientific  knowledge  as  a  critical  factor  for  growth, 
employment and poverty reduction and for the competitiveness of their economies in the 
21st century. They are concerned by the weaknesses of their higher education, science and 
technology sectors.184 

•  Morocco  has  announced  plans  for  a  new  campus  providing  knowledge-based  services  to 
strengthen  research  and  training  in  clear  technology.  The  campus  is  part  of  a  US$219 
million  clean  energy  industrial  park  to  support  private  sector  investment  as  well  as 
renewable  energy  companies.  Building  is  underway,  and  the  campus  is  expected  to  open 
by 2010. 185 

•  Ethiopia has developed a programme with Addis Ababa University to produce 5 000 PhDs 

in 10 years.186 

3.9.1. 

Introduction 

Research  is  not  something  that  most  people  would  associate  immediately  with  developing 
countries  but  it  is  an  issue  of  growing  importance  for  them.  Developing  countries  need 
research.  Firstly,  because  it  directly  contributes  to  achievement  of  the  MDGs,  e.g.  in  the 
health  and  food  security  areas.  Secondly,  because  it  transforms  developing  countries' 
economies,  promotes growth and strengthens competitiveness, thereby creating the enabling 
environment for achieving the MDGs.  

Since  research  is  today  a  global  endeavour,  developing  countries  will  need  to  participate  in 
international  research  programmes  (including  those  of  the  European  Union)  in  order  to 
contribute to the solution of regional and global problems. 

That research and innovation pays off even for developing countries has been demonstrated 
by countries in East Asia. Their development is often attributed to investments in knowledge 
and new technology as one key factor explaining their success stories.187  

The UNCTAD Least Developed Countries Report 2007 'Knowledge, Technological Learning 
and Innovation for Development' makes the case for Least Developed Countries. It argues that 

183 

Science Development Network 2009. http://www.scidev.net/en/science-and-innovation-
policy/innovation-policy/opinions/new-thinking-needed-on-innovation-infrastructure.html. 
UNECA 2008.  

184 
http://www.uneca.org/sciencewithafrica/enewsletter/swa_enewsletter_dec_2008.html#na_cam. 
185 
186 
http://www.guardian.co.uk/education/2008/may/13/highereducation.internationaleducationnews. 
187 

.  
The Guardian 2008.  

OECD  Development  Centre  Studies.  Policy  Coherence  Towards  East  Asia:  Development  Challenges 
for OECD Countries, 2006 

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'unless  LDCs  adopt  policies  to  stimulate  technological  catch-up  with  the  rest  of  the  world, 
they  will  continue  to  fall  behind  other  countries  technologically  and  face  deepening 
marginalisation in the global economy.'188  

But sometimes also difficult situation have advantages. As developing countries start from a 
low  base  research  may  have  a  potentially  higher  impact  on  them  than  developed  countries. 
For  example,  on-farm  yields  of  maize  in  six  African  countries  (Malawi,  Ethiopia,  Nigeria, 
Uganda, Mali and Mozambique) are between one quarter and one third of potential yields that 
can  be  achieved  under  optimal  conditions.  This  'yield  gap',  between  actual  and  potential  is 
much less pronounced in developed countries.189 

Notwithstanding the clear benefits of investing in science, the Commission for Africa’s report 
'Our  Common  Interest'  concluded  that  'The  science  gap  between  Africa  and  the  rest  of  the 
world is widening and under business-as-usual this gap will continue to grow'190. It finds that 
Africa  has  become  increasingly  uncompetitive,  as  a  result  of  its  weaknesses  in  governance 
and  infrastructure,  low  capacity  in  science  and  technology  and  lack  of  innovation  and 
diversification  from  primary  products.  Catching  up  has  become  more  difficult.  Barring 
significant  and  swift  progress,  the  marginalisation  of  Africa  will  become  an  ever-greater 
problem to overcome and an ever-greater threat to global stability.191 

African  countries  increasingly  recognise  the  importance  of  research  for  development.  The 
first  African  Ministerial  Conference  on  Science  and  Technology  (AMCOST)  in  November 
2003  and  subsequent  meetings  of  AMCOST  in  2006  and  2007,  the  plan  of  action 
consolidating  the  S&T  programmes  of  the  AU  and  NEPAD  endorsed  by  AMCOST  in 
September 2005, and the joint partnership on Science, Information Society and Space agreed 
in December 2007 in the framework of the Joint Africa-EU Strategy, are important milestones 
on this road. 

3.9.2.  Progress made towards PCD commitments 

Since  the  previous  Policy  Coherence  for  Development  Report  in  2007,  there  has  been 
considerable  progress  in  the  approach  to  cooperation  with  developing  countries.  The  policy 
arena  has  changed.  Regarding  Africa  in  particular,  an  important  step  was  taken  with  the 
adoption in December 2007 of the EU-Africa '8th Partnership' in Science, Information Society 
and Space. Moreover, a policy framework for research cooperation with developing countries 
more  generally  has  been  proposed  in  the  Commission  Communication  on  a  Strategic 
European  Framework  for  International  Science  and  Technology  Cooperation,  adopted  in 
September  2008.192  The  Communication  stresses  that  research  cooperation  with  developing 
countries  should  be  aligned  with  development  cooperation  policies  and  the  MDGs.  It  also 
recognises  that  major  global  challenges  such  as  climate  change,  poverty,  infectious  disease, 
and  threats  to  energy,  food  and  water  supply  highlight  the  need  for  effective  global  S&T 
cooperation to promote sustainable development. It proposes a partnership between Member 

188 

189 
190 
191 
192 

UNCTAD,  The  Least  Developed  Countries  Report  2007,  Knowledge,  Technological  Learning  and 
Innovation for Development, p. 1. 
World Bank, World Development Report 2008,  
Our Common Interest, the report of the Commission for Africa, 2005, p. 138 
Idem p. 84 
COM  (2008)  588  final,  24.9.2008,  Communication  from  the  Commission  to  the  Council  and  the 
European  Parliament.  A  Strategic  European  Framework  for  International  Science  and  Technology 
Cooperation,. 

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States  and  with  the  European  Community  to  strengthen  international  cooperation.  The 
Communication was endorsed by the Council of the European Union in December 2008. 193 

The  Commission  Staff  Working  Paper  on  Policy  Coherence  for  Development;  Climate 
Change/Energy/Biofuels,  Migration  and  Research194  identifies  concrete  ways  for  research 
policy  to  contribute  better  to  development.  Based  on  this  paper  the  Council  adopted 
conclusions  asking  the  Member  States  and  the  Commission  to  promote  research  on  MDG-
related  issues  and  to  give  developing  countries  better  access  to  the  results  of  research.  To 
strengthen  the  knowledge  base  of  developing  countries  it  proposes  to  promote  the 
participation  of  researchers  from  developing  countries  in  European  research  programmes 
while  at  the  same  time  strengthening  the  capacity  of  developing  countries  in  the  area  of 
research and by working towards more balanced mobility of researchers between the EU and 
developing countries. 

The  policy  context  for  research  and  development  has  remained  the  same  in  most  Member 
States.  In  some  of  them,  however,  new  policy  frameworks  have  been  agreed  putting  more 
emphasis on research for development. The German government, for example, has developed 
a strategy for the Internationalisation of Science and Technology, which includes a number of 
specific  development  objectives.  In  Sweden  and  the  UK  -  through  the  UK  DFID  New 
Research  Strategy  2008-13  -  new  government  legislation  has  further  boosted  the  focus  on 
global challenges with an impact on development. The Swedish Government Bill on research 
and innovation, A Boost for  Research  and Innovation (2008) highlights global development 
challenges  with  an  indirect  bearing  on  developing  countries  to  a  larger  extent  than  earlier 
government  bills  in  this  area.  The  draft  Hungary  agriculture  policy,  which  is  to  be  adopted 
this  year,  contains  an  enhanced  development  dimension.  Although  it  does  not  specifically 
refer to the MDGs, it mentions the importance of Agricultural Research for Development and 
of working with Africa. Dutch RTD and innovation policy focuses primarily on promoting the 
Dutch and European knowledge infrastructure and economy as set out in the Lisbon agenda. 
Cooperation  with  third  countries  is  encouraged  not  only  from  that  perspective,  but  also  in 
relation to global issues like climate change, infectious diseases, renewable energy, the world 
food issue, migration and security. 

3.9.2.1.  Cooperation  with  researchers  from  developing  countries  and  their  participation  in 

European research programmes 

The  Seventh  Framework  Programme  (FP-7)  is  the  major  tool  for  the  implementing  of  EU 
research  policy.  It  is  a  seven-year  programme  (2007-2013)  with  an  overall  budget  of  €54 
billion  pursuing  the  objectives  (laid  down  in  the  Treaty  establishing  the  European 
Community) of strengthening the S&T basis, and thereby the competitiveness of EU industry 
and  meeting  the  research  needs  of  other  EU  policies.  International  cooperation,  including 
cooperation  for  development,  is  mainstreamed  through  the  Programme.  Almost  all  funded 
activities  are  selected  after  competitive  calls  for  proposals  followed  by  peer  review 
evaluation.  The  years  covered  by  the  present  report  correspond  to  the  first  two  years  of 
implementation of FP-7. 

193 
technological cooperation (2009/C 18/05) 
194 

Conclusions of the Council, 2.12.08, concerning a European partnership for international scientific and 

SEC  (2008)  434,  9.4.2008,Commission  Staff  Working  Paper  Policy  Coherence  for  Development. 
Climate Change/Energy/Biofuels, Migration and Research,. 

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FP 7 is open to participation from researchers from anywhere in the world. Researchers from 
developing countries not only can participate in all programmes but can also be funded. 

At the programme level, the Commission ensures that topics relevant to developing countries 
are included in the annual work programmes. In addition to discussing research priorities with 
representatives from developing countries, experts from developing countries are included in 
proposal evaluation panels. As a result, the Commission finances many projects with an MDG 
focus,  particularly  in  the  'Health'  and  'Food,  Agriculture,  Fisheries  and  Biotechnology'  and 
'Environment' thematic programmes but also in areas such as energy and transport. 

Almost all funded activities are selected after competitive calls for proposals followed by peer 
review evaluation.  Projects  are selected based on the principle of scientific excellence. This 
principle ensures that the best projects are funded and that projects are selected following the 
same  criteria  and  standards.  At  the  same  time  this  principle  often  makes  it  difficult  for 
researchers  from  developing  countries  to  participate  successfully  in  European  research 
programmes, because of low R&D capacity in their countries and sometimes also because of 
the lack of knowledge in Europe about potential partners in developing countries.  

Recognising the importance of working with developing countries, the Commission actively 
promotes  opportunities  offered  by  FP-7  amongst  researchers  from  these  countries.  The 
Commission  regularly  informs  people  in  developing  countries  about  existing  opportunities 
under FP-7 e.g. through video conferences and dissemination and training events and experts 
from  developing  countries  participate  in  proposal  evaluation  panels.  In  parallel  the 
Commission  informs  Delegations  in  developing  countries  about  the  importance  of  S&T  for 
development  in  order  to  alert  them  to  the  possibilities  of  S&T  capacity  building  through 
development funds as well as the opportunities for cooperation offered through the FP.  

to  developing  countries,  bringing 

In  addition,  the  Commission  has  launched  INCO-NETs  which  are  specific  outreach 
mechanisms  geared 
together  policy-makers  and 
stakeholders  at  bi-regional  level.  They  provide  support  for  policy  dialogues  and  help  in 
identifying topics for collaboration under FP-7 thematic programmes. They also disseminate 
information on opportunities for participation in the FP. For developing regions of the world, 
INCO-NETSs  have  been  established  for:  Mediterranean  Partner  Countries  (MIRA);  Sub-
Saharan  Africa  (CAAST-NET);  Latin  America  (LA-NET);  South-East  Asia  (SEA-NET). 
Others  are  in  preparation  (including  for  the  Central  American,  Caribbean,  and  Pacific 
regions).  

For  countries  with  which  the  EC  has  a  Science  and  Technology  Cooperation  Agreement195 
issues  for  research  collaboration  are  identified  by  Joint  Committees  established  under  these 
agreements. Ad-hoc workshops in the regions or participation in international fora, e.g. WHO, 
the Global Forum for Health Research are other mechanism for selecting research topics. 

The  Commission  has  developed  specific  instruments  to  promote  participation  from 
researchers  from  developing  countries.  The  most  effective  instruments  to  that  end  are 
probably  the  Specific  International  Cooperation  Actions  (SICAs).  SICAs  are  dedicated  to 
cooperation  with  International  Cooperation  Partner  Countries  (ICPCs).  Most  ICPCs  can  be 
categorized  as  developing  countries,  but  they  also  include  emerging  economies  and  Eastern 

195 

Countries with which the EC has a Science and Technology Cooperation Agreement: Argentina, Brazil, 
Chile,  Mexico,  China,  India,  Egypt,  Morocco,  Tunisia,  Jordan,  South  Africa,  Ukraine,  Russia, 
Australia, Canada, Korea, New Zealand, USA 

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European countries. SICA calls for proposals identify specific topics of relevance to specific 
ICPC regions (or more than one region) and require that the proposing consortium include at 
least two research institutions from that ICPC region. Once a project is selected for funding, 
all partners, including the ICPC partners are funded from the FP budget.  

Targeted  opening  of  calls  for  projects  is  another  way  to  encourage  participation  from 
researchers from developing countries. Under targeted openings consortia are encouraged to 
include researchers from third countries but it is not an absolute requirement. 

Overall funding earmarked for mainlisted applications from African participants in successful 
proposals in the first calls of FP-7 so far amounts to more than €60 million. 196 It is interesting 
to  note  that  among  the  10  African  countries  that  have  received  most  funding  under  the 
Cooperation programme in FP-7 so far there are three Least Developed Countries and that a 
country  that  is  poor  like  Tanzania  receives  a  higher  amount  of  funding  than  Cameroon  or 
Kenya. These figures do not support the general criticism expressed by some Member States 
that  Least  Developed  Countries,  due  to  their  lack  of  institutional  and  human  resource 
capacity, find it more difficult to access FP 7 funds than middle-income countries. 

Overview about the applications to the Cooperation Programme of FP-7 from African 
participants main listed so far 

197 

196 
197 

€ 52.99 million from the Cooperation programme  and € 8.841 million from  the Capacities programme 
FAB = Food, Agriculture and Biotechnology; NMB = nanotechnology and nanosciences, knowledge-
based  multifuctional  materials  and  new  production  processes  and  devices;  SEC  =  security;  SPA  = 
space; SSH = social sciences and humanities; TPT = transport. 

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Some  Member  States  have  launched  specific  programmes  for  international  research 
cooperation with developing countries. The Netherlands Organisation for Scientific Research 
(NWO) has a specific programm, which launches open calls for MDG-related research to be 
carried out by North-South research consortia.198 Dutch-South research partnerships are also 
formed  by  many  thematic  development  cooperation  programmes.  The  UK  has  made  a 
substantial  effort  to  promote  policy  coherence  between  its  research  and  its  development 
policy through working with southern institutions, building southern capacity and benefiting 
local communities (see box).  

UK:  Research  policy  to  support  capacity  development  to  conduct  and  use  research  in 
developing countries 

The  DFID  Research  Strategy  for  2008-2013  was  launched  by  the  Secretary  of  State  and 
commits to increasing the UK’s Research spending to a total of £1 billion over the five years 
of  the  strategy  to  ensure  that  policy  is  informed  by  the  best  available  evidence  and  that 
research  is  stimulated  by  real  world  policy  questions.  DFID  Research  works  with  southern 
institutions (not primarily with southern individuals) so any training or north-south transfer is 
aimed  at building  southern  capacity  within  their  research  institutions.  In  addition,  DFID 
focuses  on  supporting  environments  that  encourage  people  to  use  research.  For  example,  in 
the framework of the Joint Africa-EU Strategy, the proposed new Capacity Building for better 
Governance Research in Africa programme will contribute to enhancing research capacity in 
the social sciences and assist key African institutions to become independent leaders in local 
and regional development debates. 

DFID’s  Research  into  Use  (RIU)  Programme,  which  has  been  running  since  2006,  aims  at 
maximising the poverty-reducing impact of past DFID funded natural resources research, and 
by so doing, increase understanding of how the promotion and widespread use of research can 
contribute  to  poverty  reduction  and  economic  growth.  In  2008,  DFID  launched  a  RIU 
Programme  in  Rwanda,  which  has  now  established  three  commodity  platforms  namely  for 
maize, cassava, and solanum potato. The Maize platform has introduced and multiplied seven 
hectares  of  an  early  maturing  maize  variety  developed  by  ISAR  (the  National  Agricultural 
Research Institute). Initially, at least 4 000 households are expected to benefit from this new 
variety.  Furthermore,  the  platform  has  on  its  own  initiative  established  a  business  arm 
(Nyagatare Maize Investment Group – NYAMIG) bringing together 30 farmers’ cooperatives 
and other shareholders from the business community. The Cassava platform has multiplied 30 
hectares  of  five  improved  cassava  mosaic  virus-resistant  varieties  with  the  Rwanda 
Agricultural Development Authority (RADA) spearheading this work. It is a starting point for 
developing a sustainable cassava planting material multiplication system, which is expected to 
benefit  at  least  10  000  farmers.  The  Potato  platform  has  highlighted  the  critical  issue  of 
degenerated local potato varieties and the subsequent need for high market value varieties to 
ensure  profitability  in  potato  production  in  Gicumbi  District.  The  platform  has  collaborated 
with  RADA  and  a  local  community-based  organisation  to  introduce  and  multiply  two  new 
varieties on “multitechnology” demonstration sites. It is expected that at least 25 000 people 
will benefit from this and the seed system that is being developed.  

All  the  Research  Programme  Consortia  (centres  of  specialisation  that  have  been  set  up  for 
DFID research  funding around a  particular research and  policy  theme) are actively engaged 
with  the  relevant  Ministries  and  National  Programmes,  to  ensure  that  key  findings  are 

198 

See box above on Netherlands: Support for Science for Global Development, in this chapter 

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effectively  communicated  and  put  into  policy  and  practice. The  ringfenced 10%  of  RPC 
budgets  allows  the  teams  to  make  sure  that  this  work  is  given  higher  priority  than  might 
otherwise be the case.  

Member  States  often  develop  scientific  and  research  partnerships  with  those  countries  they 
have a historical relationship or share a common language with. For some Member States in 
Eastern  Europe,  lower  middle  income  countries  on  their  borders  are  important  focuses  of 
research  collaboration  and  capacity  building  with  a  development  dimension  (Austria, 
Romania, Latvia, Hungary). 

3.9.2.2.  Research on MDG-related issues 

The  Seventh  Research  Framework  Programme  funds  a  considerable  body  of  research 
contributing to the achievement of the Millennium Development Goals. In the area of food, 
agriculture, fisheries and biotechnology research topics include, for example, malnutrition in 
developing countries and improved agro-forestry systems for sustainable farming. 

Within  the  context  of  FP7  and  EC  international  cooperation  on  health  research  the 
Commission  contributes  to  the  Millennium  Development  Goals,  in  particular  the  targets  on 
child health, maternal health and reproductive health, as well as to other development-related 
objectives such as improving health workforce management and health service delivery. One 
of the objectives of such cooperation is to address specific problems that third countries face 
or  that  have  a  global  character  through  call  for  proposals  employing  specific  international 
cooperation actions. The 2007-2008 call for proposals under FP7’s Health Theme will lead to 
€16.36  million  being  allocated  to 
successful  proposals  in  areas  such  as:  strategies  and 
interventions for improving reproductive health, access to medicines within the context of the 
deliberations of the Global Strategy and Plan of Action on Public health, Innovation and IP, 
integrating diseases  surveillance  and health systems response. Examples  include projects on 
health system stewardship and regulation in Vietnam, India and China, on health equity and 
financial protection in Asia, and on equity of access and efficiency of Integrated Health Care 
Networks in Colombia and Brazil. 

Through  specific  international  cooperation  actions  the  infectious  diseases  and  neglected 
diseases  sections  of  the  FP7  Health  Theme  are  particularly  relevant  for  MDG  6  thus 
contributing  to  general  development  objectives.  Research  activities  in  areas  of  interest  for 
developing  countries  are  covered  and  involve  research  centres,  universities  and  other 
stakeholders  from  developing  countries,  thereby  strengthening  their  science  and  technology 
capacities.  The  2007-2008  call  for  proposals  under  FP7’s  Health  Theme  will  result  in  €121 
million being allocated to successful proposals with €27 million going to neglected diseases, 
in  areas  such  as  capacity  building  for  poverty-related  diseases,  multiple  drug  resistant  TB, 
HIV drug resistance, malaria and TB vaccine development, research for the development of a 
Leishmania  vaccine  and  new  tools  to  control  infectious  due  to  Leishmaniasis  and 
Trypanosomiasis. 

Major improvement in the treatment of children suffering from HIV/AIDS achieved 

Research supported with the European and Developing Countries Clinical Trials Partnership 
(EDCTP)199 has led to a major advance in the treatment of children suffering from HIV/AIDS. 

199 

EDCTP: http://www.edctp.org/About_EDCTP.2.0.html  

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EDCTP  funded  a  dosing  study  which  led  to  the  tentative  approval  by  the  Food  and  Drug 
Administration  (FDA)  of  a  fixed-dose  anti-HIV  drug  specifically  formulated  for  paediatric 
use. The new tablets are scored, crushable and water soluble for children who cannot swallow 
tablets. The  fact  that  all  three  drugs  are  combined  in  one  tablet  (which  is  layered  to  ensure 
equal  distribution  of  the  drugs  if  broken  in  half),  and  that  tablets  can  be  stored,  distributed, 
and  administered  easily  to  children  represents  a  significant  advance  in  HIV  treatment  for 
children  in  resource-limited  settings.  The  tentative  FDA  registration  paves  the  way  for  the 
drug to receive WHO prequalification status. Additionally, it will allow programmes such as 
PEPFAR  and  the  Clinton  Foundation,  which  make  antiretroviral  drugs  available  in  many 
resource-constrained  countries,  to  purchase  the  drug  for  widespread  use  in  HIV-infected 
children. 

Treatment of HIV/AIDS in children is a great challenge in resource-constrained settings. One 
of the reasons for this is the difficulty and cost of giving paediatric formulations, particularly 
syrups,  of  anti-HIV  drugs  to  children.  The  absence  of  appropriate  paediatric  formulations 
often necessitates administering divided adult tablets to HIV-infected children. This can lead 
to incorrect dosing, especially under-dosing, and increases the risk of the rapid development 
of  resistance  to  the  drugs.  The  problem  is  compounded  by  underlying  malnutrition  in  these 
children, and the lack of knowledge about how malnutrition affects drug levels in the body. 

The  study  was  carried  out  by  researchers  from  the  School  of  Medicine  and  Department  of 
Paediatrics, University Teaching Hospital, Lusaka, Zambia, along with research collaborators 
from the Netherlands and the Medical Research Council (MRC) Clinical Trials Unit, United 
Kingdom.  Triomune  Baby  and  Junior  have  already  been  approved  in  Zambia  and  are 
currently being used to treat children there. 

EDCTP  is  a  partnership  between  14  EU  countries,  Switzerland  and  Norway,  and  47  sub-
Saharan  African  countries,  which  aims  to  reduce  poverty  by  developing  new  clinical 
interventions to fight HIV/AIDS, malaria and tuberculosis in sub-Saharan Africa. EDCTP was 
set up in 2003. It has an overall budget of around €400 million for seven (2003-2010) years: 
€200  million  from  the  Commission's  FP  budget. 
€200  million  from  the  Member  States  and 
Additional  co-funding  is  sought  from  other  sources,  whether  public  or  private.  Through  the 
EDCTP,  a  political  dialogue  with  African  governments  has  been  established  regarding 
research policies on infectious diseases, allowing for harmonisation of research agendas and 
common efforts on capacity building. In addition to the clinical trials, which are the core of 
the programme, EDCTP also supports networking and capacity-building activities.200 

The Food, Agriculture, Fisheries and Biotechnology theme of FP-7 finances many projects 
that  are  of  relevance  for  the  MDGs,  particularly  for  reducing  poverty,  fighting  hunger  and 
sustaining  the  environment.  Research  topics  include  malnutrition  in  developing  countries, 
improved agro-forestry systems for sustainable farming, reducing mycotoxin contamination in 
the food and feed chain, neglected zoonoses in developing countries, and improving fish stock 
assessment methods and management systems. 

In parallel the Framework Programme provides an instrument to help coordinate EU national 
programmes on agricultural research for development. It has launched two  ERA-NETs, one 
on  Agricultural  Research  for  Development  and  one  on  Agricultural  Research  for  the 
Mediterranean.  

200 

See chapter 4.3. on the MDG 6 case study 

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Projects selected under the environment theme of FP-7 cover a wide range of research topics 
relevant  to  developing  countries.  Examples  include  projects  on  sustainable  livelihoods  and 
biodiversity  in  riparian  areas  and  mitigation  and  assessment  of  risks  from  volcanic  impact, 
and on reducing emissions from deforestation and degradation in tropical rainforests. 

The  Energy  theme  of  the  7th  Research  Framework  Programme  supports  research  in 
developing  countries  though  a  number  of  projects  that  promote  coherence  between  energy 
research, energy/climate change and development policies.201 

Member  States  support  research  on  development  issues  in  a  number  of  ways.  In  Austria 
projects  are  co-funded  by  the  KEF  (Federal  Ministry  of  Science  and  Research)  and  the 
Austrian  Development  Agency.  Denmark  has  financed  with  around  DKK  319  million 
development  research  in  2008  in  particular  in  the  health  area.  MDGs  3,  4,  5,  6  and  7  were 
selected  as  targeted  priority  research  themes  for  2008.  In  addition,  research  activities  were 
supported through bilateral development assistance in Denmark programme countries. 

Estonia has signed bilateral treaties, agreements or programmes on cooperation in education 
and research with more than 40 countries or regions (incl. developing cooperation countries 
Brazil, Egypt, Georgia, the People's Republic of China, Croatia, India, Indonesia, Kazakhstan, 
Mexico, Moldova, Sri Lanka, Ukraine, Uruguay). 

Belgium: Integrating development objectives into its research cooperation with Vietnam  

Belgium signed an R&D cooperation agreement (‘Agreement for scientific and technological 
cooperation’) with Vietnam in 2002. Within this framework coordinated activities are funded 
by the Belgian Federal Science Policy Office (BELSPO) and, from the Vietnamese side, the 
Ministry  of  Science  and  Technology  (MOST).  A  joint  Vietnamese-Belgian  commission 
identifies  the  programmes  for  a  three-year  period.  Projects  revolving  around  the  jointly 
identified priority theme of sustainable development of Vietnam, have to do with the use of 
local bio-resources for energy, medicine and new materials, as well as sustainable aquaculture 
and integrated water and land management in a context of mitigation and/or adaptation with 
respect  to  climate  change.  Each research  project  is  linked  to  potential  users  of  the  projects’ 
results and workshops with all stakeholders are part of the projects.  

Netherlands: Support for Science for Global Development  

The  Dutch  Government  funds  WOTRO,  a  department  of  the  Netherlands  Organisation  for 
Scientific  Research  (NWO),  focusing  on  Science  for  Global  Development.  All  WOTRO 
research  programmes  issue  calls  for  proposals,  which  are  disseminated  nationally  and 
internationally.  Fair  and  equal  partnerships  between  developing  countries  and  EU/Dutch 
institutes or academia, and the involvement of (local) end-users and policy makers are always 
a prerequisite. NGOs and governments are involved in formulating the research question, the 
research  strategy,  implementation  and  communication  and  dissemination.  An  independent 
societal  panel  conducts  the  assessments  of  pre-proposals.  In  addition,  an  independent 
scientific  committee  (representatives  from  the  scientific  community)  assesses  the  scientific 
quality. Only when both rank a pre-proposal as of high quality is this pre-proposal awarded 
with  a  workshop  grant  to  develop  it  fully.  Independent  international  peers  (both  from  the 
scientific world and from the non-scientific societal world) assess full proposals and both the 

201 

See the energy and climate change chapter of this report 

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societal panel and the scientific committee rank the full proposals based on the reports of the 
peers. Only full proposals that rank highest in both societal relevance and scientific quality are 
awarded. All successful proposals must have formulated a communication plan directed at the 
non-scientific community and are evaluated on the implementation of this plan. Because the 
WOTRO  strategy  has  only  been  in  place  since  2007,  the  development  impact  in  partner 
countries is still mostly unknown. It will be evaluated in 2009 and at the end of the strategy 
(in  2010-11).  However,  one  specific  thematic  programme  on  clinical  interventions  (the 
Netherlands-African  partnership  for  capacity  development  and  clinical  interventions  against 
poverty-related diseases (NACCAP)) started earlier and has produced successful results.  

Countries  such  as  Belgium,  the  UK,  and  Germany  have  increased  their  support  to 
international  institutes  with  a  strong  southern  focus,  such  as  the  Consultative  Group  on 
International  Agricultural  Research  (CGIAR),  whose  64  members  support  15  international 
centers, with the objective of generating cutting-edge science to foster sustainable agricultural 
development  throughout  the  world.  As  a  reaction  to  the  global  food  crisis,  Germany  has 
increased  its  contribution  to  the  CGIAR  substantially  from  €16.4  millionin  2007  to  €17.5 
million in 2008 and €21 million in 2009. 

The  European  Initiative  on  Agricultural  Research  for  Development  (EIARD)  coordinates 
policy positions and programmes in this thematic area between EU Member States, Norway 
and Switzerland. EIARD has advocated reform of the CGIAR, which is currently in progress 
and has the objective of further improving its efficiency, effectiveness and accountability to 
meet the increasing demand for food and other commodities in developing countries.  

3.9.2.3.  Strengthening the capacity of developing countries in the area of research 

Strengthening  the  capacity  of  developing  countries  in  the  area  of  research  was  one  of  the 
recommendations  put  forward  by  the  Blair  Commission  in  2005.  It  suggested  that  'The 
international community should commit in 2005 to provide up to US$3 billion over 10 years 
to  develop  centres  of  excellence  in  science  and  technology,  including  African  institutes  of 
technology.202 

The EU has not lived up completely to these expectations but it has invested more in capacity 
building through both its development and its research policy instruments. 

Under  the  Food  Security  Thematic  Programme  of  the  Development  Cooperation  Instrument 
(DCI) the Commission has allocated € 233.1 million  to agricultural research and development 
for the period 2007-2010. In the period under review some €126 million was approved to fund 
research  focusing  mainly  but  not  exclusively  on  MDG  1.  This  research  is  not  only  'for' 
developing  countries,  but  'in  and  with'  them.  Ownership  and  leadership  by  research 
institutions  of  developing  countries,  as  well  as  demand-driven  research  topics  are  given 
specific attention in the selection of projects. Increasing attention is paid to the dissemination 
of  research  results,  so  that  they  are  fed  back  into  policy  making  and  put  into  practice.  This 
programme has substantially contributed to strengthening developing countries' capacities in 
research.  

In  2008,  with  funding  from  the  9th  European  Development  Fund  (€30  million)  and  the 
European Programme for Reconstruction and Development in South Africa (€5 million) the 

202 

Our Common Interest, the report of the Commission for Africa, 2005, p. 67 

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Commission  launched  a  €35  mill ion  initiative  to  strengthen  science  and  technology 
innovation  and  capacity  building  in  ACP  countries.  The  overall  objective  of  the  ACP  S&T 
programme is to support ACP countries in formulating and implementing S&T policies that 
can lead to sustainable development and to poverty reduction through economic growth and 
progressive  integration  into  the  world  economy.  Under  the  10th  EDF  an  additional  €  40 
million have been made available to strengthen capacity for research in ACP countries.  

Beyond  its  specific  capacity-building  projects  of  the  EDF  and  the  DCI,  the  EU  contributes 
through  other  initiatives  to  this  end,  mainly  through  FP-7.  While  the  FP  is  not  a  capacity-
building  programme  per  se,  some  activities  effectively  do  develop  the  human  research 
capacity  in  developing  countries.  A  good  example  is  the  Poverty  Related  Disease  College 
project. 

The  Poverty-Related  Disease  College  project:  Building  capacity  through  research 
projects 

This  project  involves  nine  countries:  Cameroon,  South  Africa,  Tanzania,  Uganda,  Zambia, 
Germany,  Italy,  the  Netherlands  and  Sweden.  The  aim  is  to  bridge  the  gap  between  the 
biological  sciences,  health  and  development  in  Africa.  The  PRD  College  will  stimulate  an 
early  collaboration  and  enable  young  scientists  from  Africa  and  Europe  to  do  research  on 
poverty related and neglected diseases and to place science within the context of development 
in Africa. It will include mandatory courses followed by an internship in development at an 
African institution and a science exchange programme. Training capacity will be strengthened 
at 3 PRD Centres in Uganda, South Africa and Cameroon and involve MDs, advanced PhD 
Students or Post-Docs participants from Africa (12) and Europe (12). The PRD College will 
transform every trainee scientist to a level where participants can become trainers in their own 
country, to spread knowledge and this new approach. 

In the context of capacity building, the Africa-EU partnership will also play an important role. 
Implementing  the  Joint  EU-Africa  Partnership  on  Science,  Information  Society  and  Space 
will  help  to  build  the  continent’s  capacities  to  harness,  apply  and  develop  science  and 
technology, for example by supporting the setting up of an African framework programme for 
research (see the section on the Africa-EU partnership below).  

Programmes  that  promote  the  mobility  of  researchers  can  contribute  to  the  strengthening  of 
human capacities, too. International exchanges offer valuable opportunities for researchers to 
learn  from  each  other  and  to  develop  their  capacities  further.  To  ensure  that  the  exchanges 
benefit  the  countries  of  origin  the  European  Commission's  People  Programme  (Marie  Curie 
Actions),  for  example,  provides  for  return  phase  for  scholars  from  ICPC  countries  (see 
below). 

Finally  the  EU  contributes  to  increased  capacity  in  developing  countries  through  education 
programmes. The external dimension of existing EU programmes such as Erasmus Mundus is 
increasing  and  is  a  significant  contribution  to  the  high  quality  training  of  graduates  and 
scholars. The Edulink programme, for example, accompanies the training of university staff 
with  measures  to  improve  infrastructure.  One  of  the  three  themes  that  this  programme  is 
addressing  is  research  and  technology  capacity  building  to  improve  academic  and  teaching 
excellence. 

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3.9.2.4.  Towards  more  balanced  mobility  of  researchers  between  the  EU  and  developing 

countries 

Many developing countries are suffering from brain drain with their best researchers leaving 
for better conditions and more interesting opportunities. To counter this trend more balanced 
mobility  of  researchers  between  the  EU  and  developing  countries  should  be  promoted. 
Researchers should not only leave developing countries but ideally these countries should also 
become  an  attractive  destination  for  researchers.  At  the  same  time  mechanisms  should  be 
strengthened and created to allow researchers from developing countries to contribute to the 
development of their countries of origin from abroad. The Strategic European Framework for 
International  Science  and  Technology  Cooperation  stresses  that  researchers  who  come  to 
Europe  from  developing  countries  must  be  enabled  to  contribute  to  their  own  countries’ 
development.  Such  connectivity,  through  networking,  or  ‘return’  grants,  would  make  brain 
circulation  a  reality.  The  Framework  also  suggests  promoting  the  possibility  of  establishing 
joint physical or virtual research laboratories between the EU and third countries.203 In 2008, 
the  Commission  launched  a  feasibility  study  to  examine  the  potential  for  establishing  a 
network(s)  of  non-European  researchers  in  Europe  –  to  help  them  maintain  contacts  with 
career  and  cooperation  opportunities  in  their  own  countries  and  thereby  counter  the 
phenomenon of brain- drain while facilitating brain circulation. The findings of the study are 
expected later in 2009. 

The  FP-7  People  Programme  (Marie  Curie  Actions)  promotes  the  mobility  of  researchers, 
including  also  between  Europe  and  developing  countries.  So  far  however  most  of  the 
participants from developing countries that were supported by this program to come to Europe 
are from countries which already have a relatively strong research capacity, namely India and 
China. In 2008, of the 140 fellowships awarded to third-country researchers to come to work 
in Europe for up to 2 years, 12 went to researchers from Latin America, 5 to researchers from 
Africa,  25  to  researchers  from  China  and  15  to  researchers  from  India.  The  figures  on  the 
programme  funding  European  researchers  to  work  in  a  third  country  also  speak  a  clear 
language: the vast majority of applications and hence awards, involved working in the USA 
(79 grants). Outgoing scholarships were granted at the rate 1 each for Bermuda, Brazil, Chile, 
China, Egypt, Eritrea, India and Korea.  

To counter brain drain the People  Programme  funds  a 'return phase', by helping researchers 
from ICPC countries to re- establish themselves in their country of origin after an Incoming 
International  Fellowship.  In  2008  25  grants  were  awarded,  with  7  returning  to  Russia,  6  to 
China, 3 to India, 2 to Argentina and Ukraine and 1 each to Armenia, Colombia, Egypt, Iran 
and Moldova.  

The International Research Staff Exchange (IRSES), introduced under the People Programme 
in 2008, aims at strengthening research partnerships through short period staff exchanges and 
networking  activities.  At  present  this  covers  the  countries  of  the  European  Neighbourhood 
Policy  and  those  with  which  the  EC  has  a  bilateral  S&T  Agreement.  The  total  of  countries 
covered is 29, of which 22 are categorised as developing. The first call of the IRSES action 
resulted  in  projects  with  Morocco  (MA),  Algeria  (DZ),  Tunisia  (TN),  Egypt  (EG),  South 
Africa (ZA), China (CN), and India (IN). FP funding will enable the following exchanges: 

203 

COM  (2008)  588  final,  24.9.2008,Communication  from  the  Commission  to  the  Council  and  the 
European  Parliament.  A  Strategic  European  Framework  for  International  Science  and  Technology 
Cooperation,  

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Number  of  researchers-months  from  EU  MS/AC  (associated  countries)  to  AFRICA, 
CHINA, INDIA 

TN 

143 

EG 

135 

ZA 

MA 

DZ 

166 

274 

9 

CN 

430 

IN 

119 

Number  of  researchers-months  from  AFRICA,  CHINA,  INDIA  to  EU  MS/AC 
(associated countries) 

TN 

190 

EG 

214 

ZA 

MA 

DZ 

132 

313 

20 

CH 

339 

IN 

93 

Hosting  third-country  researchers  in  EU  Member-State  institutions  is  still  a  central  part  of 
international research cooperation in some countries, for example Germany. The majority of 
Member States have not adopted specific policies to promote return or to specifically address 
brain drain. But Belgium, for example, runs a programme of mixed doctorates to avoid brain 
drain:  the  bulk  of  the  work  is  to  be  done  in  the  country  of  origin  with  limited  stays  in 
Belgium. This type of grant covers doctorates undertaken partly in the country of origin and 
partly in Belgium. As a general rule, one third of the research time is spent in Belgium. Also 
possibilities  for  return  to  the  home  institute  are  a  prerequisite  for  a  postdoc  fellowship  in 
Belgium. The Czech Republic supports a similar programme.  

3.9.2.5.  Africa-EU partnership on science, information society and space 

The Joint Africa-EU Strategic Partnership and Action Plan and the 8th partnership on 'Science, 
Information  Society,  and  Space  (SISS)  in  particular  'is  poised  to  become  the  focus  of  a 
concerted  Commission  and  Member  States  effort  for  research  cooperation  with  developing 
countries. Its objective is to support S&T capacity building in Africa and implement Africa's 
Science and Technology Consolidated Plan for Action204 (CPA). 

Based  on  AUC  priorities,  as  described  in  the  CPA,  the  Joint  EU-AU  Task  Force  for  the  8th 
partnership (which brings together desk officers from the two sides) has identified a series of 
19 Lighthouse projects (of which 12 are in the science domain) - of an approximate value of 
over €160 million - to strengthen S&T capacities in  Africa. At the EU-AU College to College 
meeting in October 2008, it was agreed to focus on six early deliverables – of which two are 
in the science chapter of the partnership aiming at helping the African Union to develop its 
own scientific resources. The “African Research Grants” project will help the AUC to set up 
an African 'framework programme' for research to fund African research projects selected on 
the  basis  of  their  scientific  excellence.  The  second  'early  deliverable'  concerns  Water  and 
Food  Security  at  basin  level'  and  will  be  realised  in  2010  via  a  special  'Call  for  Africa  on 
water  and  food  security  at  basin  level'.  It  is  expected  that  at  least  six  SICAs  in  the  areas  of 
environment, agriculture and health will be selected to serve as a pilot case for research and 
demonstration  activities  to  cope  with  food  security  problems  while  promoting  sustainable 
management of land and water resources. 

In  the  framework  of  the  AUC-EC  staff  exchange  programme  a  Commission  official  was 
seconded  to  the  AU  Commission  dealing  with  research.  This  has  had  an  extremely  positive 

204 

See http://www.nepadst.org/doclibrary/pdfs/ast_cpa_2007.pdf  

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impact  on  both  institutions  and  boosted  relations  between  the  two  services.  The  respective 
officials  got  to  know  one  another  and  establish  strong  personal  contacts  that  ease 
communication and cooperation easier. 

The  SISS  partnership  serves  demonstrate  how  the  JAES  potential  for  PCD  is  being 
operationalised. Traditionally not part of EU-Africa relations, this partnership was included in 
the JAES at the suggestion of Africa and then jointly agreed205.  

3.9.2.6.  Innovation Policy  

Innovation  policy  can  play  an  important  role  in  harvesting  the  results  of  research  for 
economic development in developing countries. The 2008 Global Economic Prospects Report 
(World Bank, 2008) stresses that innovation is an important part of the long-term answer to 
fighting  poverty,  disease  and  hunger  in  developing  countries.  Most  of  the  growth  in 
developing countries can be attributed to technology, in the widest sense, and not to capital or 
workforce.  Global  innovations  and  technologies  developed  domestically  should  both  have  a 
role  to  play,  but  the  local  adaptation  of  already  available  technologies  shows  the  largest 
impact.  

In  the  context  of  open  innovation,  globalisation  and  internationalisation  of  science, 
technologies and innovation, the European Commission has been developing the international 
dimension of its innovation policy converting the existing international network for business 
support into the  new Enterprise Europe  Network.  The  new  network  offers  greater  scope  for 
third  countries  to  cooperate.  In  particular,  the  large  emerging  markets,  Mediterranean 
countries  and  Eastern  Neighbours  are  using  the  new  possibilities.  Egypt,  Syria,  Lebanon, 
Armenia and China have already concluded cooperation agreements. 

In the area of agricultural research for development, the Commission promotes an innovation 
system and multi-stakeholders approach to research involving research institutions along with 
civil  society  organisations  (NGOs,  Farmers  Organisations)  and  private  companies.  A  multi-
stakeholders  platform  between  Africa  and  Europe  has  been  created206  that  facilitates  the 
identification  of  research  priorities  and  the  submission  of  research  proposals  to  the  EU 
funding instruments. 

The  People  Programme  under  FP-7  supports  innovation  policies  in  developing  countries 
mainly  by  assisting  companies  in  assessing  innovative  technologies  and  by  facilitating  their 
contacts  with  companies  in  Europe.  Research  companies  in  developing  countries  may 
participate  in  several  actions  under  the  People  Programme  and  particularly  in  the  Industry 
Academia Partnerships and Pathways scheme. This scheme stimulates contacts with the EU in 
terms of research innovation through training and mobility of relevant staff. A recent example 
is a project aimed at developing malaria vaccines involving universities in Italy and the UK, 
together with three SMEs: Microtest Matrices Ltd from the UK, Protein'eXpert from France 
and Med Biotech Laboratories from Uganda. Involvement of the research-active company in 
Uganda aims to stimulate innovation policy in sub-Saharan Africa in support of MDG 6, by 
facilitating  contact  with  academics  and  companies  in  Europe.  The  total  budget  for  the 
consortium is approximately €1.9 million over four years. 

205 
206 

See chapter 4.4 of this report on the Africa-EU partnership 
Platform for African and European Partnership in Agricultural Research for Development (PAEPARD) 

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3.9.3.  Conclusion & Outstanding Issues 

The contribution that research policy can make to development is a major driver of research 
on  issues  of  relevance  to  developing  countries,  as  well  as  the  awareness  that  global  issues 
need  to  be  tackled  together  with  developing  countries.  The  promotion  of  global  standards, 
access to complementary knowledge, the development of new markets and the globalisation 
of the market for researchers are other important factors. 

The  Commission  continues  to  contribute  to  development  objectives  through  the  Framework 
Programme  and  to  ensure  that  researchers  from  developing  countries  participate  in  the 
identification  of  cooperation  topics  as  well  as  in  research  projects  and  mobility  schemes. 
Information on FP opportunities is disseminated as widely as possible.  

But  despite  all  the  Commission's  efforts  to  involve  developing  countries  and  despite  some 
important projects funded, all in all the participation of researchers from developing countries 
and  particularly  from  Africa  in  FP-7  has  been  relatively  limited.  Participation  of  African 
researchers  in  selected  projects  still  represents  a  small  percentage  of  all  the  grants  awarded 
both  for  research  projects  and  under  the  mobility  programmes.  Also,  according  to  some 
Member States, the INCO-NET instrument has not yet proved successful in getting research 
topics of special concern to developing countries into the FP-7 thematic programmes.  

However,  looking  beyond  the  mere  quantitative  input  into  research  cooperation  with 
developing countries FP-7 funded research projects sometimes help poorer countries to reach 
their development objectives in decisive ways. 

A major obstacle to developing countries' involvement in research cooperation is their limited 
research  capacity  and  infrastructure,  which  can  make  it  difficult  for  the  researchers  there  to 
compete in the highly competitive framework programme. Member States in their replies to 
the  questionnaire  expressed  significant  concerns  about  the  accessibility  of  FP-7  research 
funding for developing countries and researchers. 

Part  of  the  solution  to  this  problem  has  to  be  the  strengthening  of  research  capacities  in 
developing  countries.  There  is  a  need  to  provide  additional  resources  for  S&T  capacity 
building from the development budget to ensure that all developing countries can build up a 
research system capable of participating successfully in FP-7 and other international research 
programmes. 

The  question  also  needs  to  be  asked  whether  the  existing  financial  instruments  of  FP-7  are 
effective  in  promoting  research  cooperation  with  developing  countries.  Countries  such  as 
China, India and even a LDC such as Tanzania seem to cope. But many others do not. While 
it  is  important  that  the  Commission  continues  to  keep  FP-7  open  and  to  actively  encourage 
participation  from  developing  countries  through  the  existing  instruments,  it  might  be 
necessary to explore new avenues that are more suitable for this particular cooperation. Closer 
direct cooperation with the African Union might be one option.  

The  African  Union  is  currently  building  up  its  research  policy  capacity.  The  EU  and  the 
African  states  should  support  this  process  so  that  the  AU  can  manage  an  African  research 
programme and function as an interlocuteur between African countries and Europe, to identify 
common research priorities and joint capacities for doing the research. 

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The  FP  accounts  for  about  6%  of  total  public  research  funding  in  the  European  Union. 
Coordination with the Member States is therefore essential. To that end, and as a response to 
the Commission Communication proposing a Strategic European Framework for International 
S&T Cooperation, a Strategic Forum on International S&T cooperation has been established 
in 2009 for Member States and the Commission to exchange information and define strategic 
priorities which should lead to joint initiatives in the future. Regarding developing countries, 
it is expected that the Forum will work in close cooperation with the 'Joint Expert Group 8' of 
Member States' representatives for the 8th Partnership of the EU-Africa Strategic Partnership. 

Member  States  have  made  progress  in  focusing  research  closer  on  development  issues.  Yet 
there is less evidence of Member States aligning their action directly to developing countries' 
priorities.. Climate change and agriculture are often areas of Member State focus in relation to 
research and innovation for development. Some Member States have increased their funding 
of research for development either overall (UK) or in relation to specific areas, e.g. Germany 
(food security).  

There are differing views on whether the EU has managed the coordination of activities and 
information on research and innovation for development effectively. 

Assessment207 of progress on PCD in this policy area: 

Outstanding Issues 

•  ensure that research programmes include more topics relevant to developing countries.208 

•  improve  dialogue  by  means  of  joint  fora  with  developing  countries  to  identify  research 
topics  of  relevance  to  them  and  to  raise  awareness  and  mutual  understanding.  The  fora 
should bring together politicians and civil servants as well as scientists and practitioners.  

•  redouble efforts to make the Africa-EU partnership on science, technology and space work 

as the nucleus for future EU-Africa research cooperation: 

– 

207 

208 

EN 

-  strengthen  the  AU's  research  policy  capacity  and  capacity  to  manage  a  research 
programme;  

Chart  based  on  Member  States'  responses  to  a  dedicated  PCD  2009  questionnaire  prepared  by  the 
European Commission. 
See for example the proposal for a SICA on intellectual property rights in the trade chapter of this report 

139 

   EN 

 
 
                                                 
– 

- establish an Africa-EU high level platform for dialogue to facilitate the creation of 
a specific common decision-making platform for joint efforts in science, information 
society and space.  

•  Improve  synergy  between  research  for  development  and  development  funding  for  S&T 

capacity building.  

•  Encourage developing countries to incorporate S&T capacity building in their National or 
Regional  Indicative  Programmes  for  external  assistance  funds  and  cooperation 
programmes. This should include the gender equality aspect. 

•  continue  to  work  towards  more  balanced  mobility  of  researchers  between  the  EU  and 

developing countries and support brain circulation: 

– 

– 

-  Based  on  the  experience  to  be  gained  from  the  newly  launched  IRSES  scheme, 
examine  the  possible  expansion  of  the  scheme  to  other  developing  countries  and 
regions; 

-  develop  networks  for  non-European  researchers  in  Europe  and  utilise  better  the 
potential  of  the  diaspora  of  developing  country  researchers  in  Europe,  e.g.  by 
creating  short-  or  medium-term  placements  in  African  universities  and  research 
institutions  for  highly  qualified  diaspora  personnel  through  sabbaticals  and  other 
arrangements of leave of absence from tenured positions in the host countries; 

– 

- establish joint physical or virtual research laboratories. 

•  to encourage innovation 

– 

– 

– 

-  Cooperate  with  diaspora  communities  to  introduce  new  technologies  in  the 
framework of high-quality incubation services.  

-  Consider  establishing  innovation  projects  for  developing  countries  following  the 
Medibtikar  approach  with  strong  links  to  private-sector  development  and  regional 
integration. 

-  Facilitate  cooperation  of  partners  in  developing  countries  with  the  Enterprise 
Europe Network. 

EN 

140 

   EN 

 
3.10. 

Information Society 

Quick Facts  

•  Globally,  the  number  of  mobile  subscribers  has  increased  by  over  a  billion  since  2005, 
with  over  3.3  billion  mobile  subscribers  by  the  end  of  2007.  69  per  cent  of  the  world’s 
mobile subscribers were from developing countries.209 

•  In Ethiopia, as a result of the Rural Connectivity Project, more than 60 out of its 85 million 

citizens can access telephone, Internet and television services. 210 

•  Despite this quickly changing picture, people in low-income countries, representing no less 
than 38 per cent of the world’s population, make up only one per cent of the world’s fixed 
broadband subscribers.211 

•  Over the past decade, the majority of countries worldwide have initiated reforms in their 
telecommunication  sector  by  establishing  a  national  regulatory  body,  introducing 
competition and at least partially privatising their operators.212 

•  The Rwandan Government views ICT as a major means of lifting Rwanda out of poverty 
and has developed a National Information and Communication (NICI) Plan. The goal is to 
transform  a  mainly  agricultural  economy  into  a  Predominantly  Information-rich, 
Knowledge-based Economy (or PIKE). 213 

3.10.1.  Introduction 

Information  and  communication  technologies  (ICTs)  have  been  changing  our  lives  in 
profound  ways  over  a  very  short  time  period.  The  number  of  fixed  and  mobile  telephone 
subscribers jumped from 530 million in 1990 to over 4 billion by the end of 2006214. But the 
influence of ICT goes well beyond the more narrow area of communication. ICTs allow for 
increased productivity and sustained economic growth as well as improved service delivery in 
areas such as health, education and public administration.  

ICTs offer tremendous opportunities for developing countries. Where in the past phone lines 
did  not  exist,  mobile  phones  for  the  first  time  make  it  possible  for  many  people  to 
communicate  over  great  distances.  This  not  only  makes  daily  life  easier  but  also  facilitates 
access  to  a  number  of  services  with  direct  benefit  for  citizens.  One  example  is  the  banking 
sector.  Access  to  banking  services  has  improved  since  people  in  developing  countries  can 
operate money transfers including for remittances via the mobile phone network. But even in 
more traditional areas of economic activity such as agriculture, ICTs allow farmers to increase 
productivity.  Through  improved  access  to  Global  Positioning  data,  farmers  applying  the 

209 

210 

211 
212 

213 
214 

ITU 2008. Report on the World Summit on Information Society Stocktaking. 
www.itu.int/wsis/stocktaking/docs/2008/WSIS-Stocktaking2008-e.pdf. 
Information and Communication Technology Assisted Development 2009. 
http://www.ictadethiopia.org 
ITU/UNCTAD 2007. World Information Society Report: Beyond WSIS. 
ITU 2008. Report on the World Summit on Information Society Stocktaking. 
www.itu.int/wsis/stocktaking/docs/2008/WSIS-Stocktaking2008-e.pdf. 
Government of Rwanda 2006. The NICI-2010 Plan. http://www.uneca.org/aisi/nici/rwanda/rwanda.htm. 
The Millennium Development Goals Report 2008, United Nations, p. 48 

EN 

141 

   EN 

 
                                                 
precision  farming  concept  can  more 
sowing 
precisely  evaluate  optimum 
density, estimate fertilizer and other input 
needs,  and  more  accurately  predict  crop 
yields. By improving access to health and 
education 
economic 
productivity, 
ICTs  can  play  a  key 
enabling  role  for  the  MDGs.  Even  the 
political  dimension  of  development  is 
strengthened by ICTs. They facilitate the exchange of ideas and promote democracy, freedom 
of expression and human rights. 

increasing 

and 

The  importance  of  ICTs  for  development  has  been  recognised  also  by  including  them  as  a 
target  of  MDG  8,  to  develop  a  global  partnership  for  development.  Target  5  of  goal  8 
underlines the need for cooperation with the private sector in making available the benefits of 
new technologies, especially information and communication. 

Despite their enormous opportunities, the impact of ICTs has remained limited because most 
people in developing countries still do not have access to them. Mobile phones have had some 
success  even  though  big  regional  disparities  remain.  Penetration  rates  in  Africa  range  from 
about  50  per  cent  in  resource-rich  and  resource-scarce  coastal  countries  to  15  per  cent  in 
resource-scarce  landlocked  countries.  It  is  promising  though  that  Africa  had  the  world's 
fastest growth in new mobile phones in 2008, amounting to about 40 per cent in some Sub-
Saharan countries. 215 216 

But  the  spread  of  the  internet  has  been  far  slower.  While  some  progress  has  been  made  in 
narrowing the digital divide between developing and industrialised countries, Africa still has 
the  lowest  internet  penetration  rate  in  the  world.  In  Sub-Saharan  African  countries,  for 
internet  users  the  penetration  rate  is  below  7  per  cent  and  for  broadband  it  is  under  1  per 
cent217. 

215 
216 
217 

African Economic Outlook 2009, p.87, OECD, African Development Bank 
The Millennium Development Goals Report 2008, United Nations, p. 48 
African Economic Outllook 2009, p. 86 

EN 

142 

   EN 

 
                                                 
218At  the  same  time  the  quality  of  access  is  gaining  in  importance.  The  quality  of  access  is 
determined by the access to broadband. But broadband access, which has spurred internet use 
in developed countries, has been slow to expand in many developing regions. By 2006, most 
countries in sub-Saharan Africa had not yet commercially deployed broadband services and, 
where available, broadband remained inaccessible to the majority of the population because of 
its  very  high  costs.219  In  the  poorest  region  of  the  world  people  have  to  pay  the  highest 
internet prices. According to International Telecommunication Union (ITU) and World Bank 
estimates,  the  average  price  of  a  broadband  connection  in  Sub-Saharan  Africa  is  about 
USD 110 for 100 kilobit per second. In Europe and Central Asia the price is USD 20 while in 
Latin America and the Caribbean it is USD 7. Middle East and North African countries also 
pay below USD 30.  

The  low  internet  penetration  rates  and  high  tariffs  stem  partly  from  a  lack  of  high-capacity 
international networks (see Figure 4). There is currently only one submarine fibre optic cable 
off the West Africa coast, SAT-3, that provides a high-quality international service and access 
is limited to members of the consortium which built the link in 2002.220 

But a more fundamental infrastructure deficits and in particular the access to electricity seems 
to be the biggest problem: In 2006, 54 per cent of the population in sub-Saharan Africa lived 

218 
219 
220 

Quoted from the African Economic Outlook 2009, p.86 
The Millennium Development Goals Report 2008, United Nations, p. 48 
African Economic Outlook 2009, p. 88 

EN 

143 

   EN 

 
 
                                                 
in areas covered by a mobile cellular signal, but the share of the population without access to 
electricity is 74 per cent221. 

222This limited access to ICTs has major implications not only for economic progress but also 
for social development. The digital divide is therefore widely seen as a cross-cutting obstacle 
to achieving the MDGs. 

3.10.2.  Progress towards PCD Commitments 

While  the  impact  of  ICT  technology  on  developing  countries  cannot  be  overestimated,  the 
impact of  EU information society policy shows a more nuanced picture. Most of the  policy 
initiatives  are  directed  towards  the  internal  market;  although  they  have  indirect  effects  on 
developing  countries.  The  development  of  non-commercial  electronic  services  for  example, 
such  as  e-government,  e-learning,  e-health  (telemedecin),  and  at  a  more  general  level  the 
research  promoted  by  the  European  Commission  in  the  area  of  ICT,  can  bring  important 
opportunities  for  developing  countries.  Standard  setting  at  the  EU  level  sometimes  affects 
developing  countries  significantly,  too.  This  is  true,  for  example,  for  mobile  phones:  the 
adoption of the GSM standard and the parallel liberalisation of the telecom market is driving 
down prices for GSM services and increasing their availability in developing countries, too. 

The most direct effects on developing countries however result from EU action taken in these 
areas  at  the  international  level.  The  policy  framework  for  cooperation  in  ICTs  at  the 

221 

222 

Delivering  on  the  Global  Partnership  for  Achieving  the  Millennium  Development  Goals,  MDG  Gap 
Task Force, Report 2008, p.45 ff 
Ibid, p. 89 

EN 

144 

   EN 

 
 
                                                 
international  level  is  set  out  in  the  Commission  Communication  on  a  Strategic  European 
Framework for International Science and Technology Cooperation223.  

The Commission recognises the need for the EU to support increased use of ICTs to bridge 
the digital divide. To extend the use of ICTs also at the global level, the Commission takes a 
comprehensive  approach  tackling  research/innovation,  regulatory  and  capacity-building 
aspects as well as infrastructures deployment.  

Member States have not reported any changes in the policy context. In Finland, though, co-
ordination  between  the  MFA  and  the  Ministry  dealing  with  information  society  matters  has 
been strengthened. The MFA is facilitating dialogue between the Finnish national information 
society programme and its development initiatives at bi- and multilateral level. 

3.10.2.1. Research 

Research in the ICT sector is probably the area in which European information society policy 
has the greatest impact on developing countries. The main instrument for financing research 
in  this  area  is  the  European  ICT  Research  Programme  (ICT/FP-7),  which  is  part  of  the 
Seventh Framework Programme. Under FP-7, running from 2007- to 2013, €9.1 billion have 
been earmarked for funding ICT research. FP-7 has an important international dimension and 
is open to participation from developing countries.224  

With  FP  7  the  Commission  has  managed  to  strengthen  its  cooperation  with  developing 
countries  in  the  area  of  ICT  research.  Through  the  launch  of  specific  support  actions  it  has 
identified  cooperation  opportunities  with  sub-Saharan  countries  on  particular  research  topics. 
Although  FP-7  was  launched  only  two  years  ago  31  projects  involving  sub-Saharan  African 
organisations  have  been  adopted  in  the  first  two  Calls.  This  represents  a  substantial  increase 
compared to the 16 projects selected during the whole duration of FP-6. 

Technology roadmaps were also launched to identify research tracks in areas highly relevant to 
developing  countries,  notably  in  fields  such  as  mobile  web  technology,  low-cost  laptops  and 
access infrastructures, open source software, language and speech technologies. 

In its research cooperation the Commission pays particular attention to the issue of divergent 
standards as they are often an obstacle to spreading technologies and hamper interconnection 
and  interoperability.  It  promotes  the  strengthening  of  the  link  between  results  of  research 
programmes  and  standardisation,  puts  more  emphasis  on  both  international  pre-competitive 
industrial research collaboration and pre-standardisation cooperation based on open standards.  

Sub-Saharan- African and European policy-makers and research organisations discuss 
possibilities for ICT research  

The first Euro-Africa Cooperation Forum on ICT Research was held on March 25-26, 2009. 
The  two-day  event  was  co-organised  by  the  European  Commission  and  the  African  Union 
Commission (AUC) with the support of the EuroAfriCa-ICT project, a FP-7 coordination and 
support  action  aiming  at  enhancing  ICT  research  cooperation  between  Europe  and  sub-

223 

224 

COM  (2008)  588  final,  24.9.2008,  Communication  from  the  Commission  to  the  Council  and  the 
European  Parliament.  A  Strategic  European  Framework  for  International  Science  and  Technology 
Cooperation,  
For more information on FP-7 please see the research chapter of this report 

EN 

145 

   EN 

 
                                                 
Saharan 

Africa.  

The Forum brought together sub-Saharan African and European policy-makers and research 
organisations  to  discuss  collaborative  projects  in  the  ICT  field,  to  identify  potential 
cooperation partners, and to learn more about the “EU-AU Partnership on Science, ICT and 
Space”  (the  8th  Partnership)  and  the  EC/AUC  Programmes  including  about  FP-7  and 
opportunities for African participation.  

Member States, too, support research on ICT issues with developing countries. For example, 
DFID currently supports two major ICT and development programmes. The ICT4D Research 
and  Capacity  Development  Programme,  based  at  the  Canadian  International  Development 
Research  Centre  (IDRC)  aims  to  empower  people  in  Africa  and  Asia  to  address  their  key 
development challenges through effective use of ICTs. This programme seeks to improve the 
communication  environment  for  development  interventions,  build  a  coherent  international 
approach  to  development  research  in  ICTs,  and  help  to  develop  the  wider  environment  for 
research impact in developing countries through better use of new and existing ICTs. It also 
supports the InfoDev programme, which is a think- tank based at the World Bank aiming to 
boost global information sharing on the role of ICTs in development. 

3.10.2.2. International regulatory cooperation 

The European Commission and developing countries exchange information and best practices 
in the regulatory and policy fields. Through dialogue the EU aims at harmonising regulatory 
frameworks and promoting joint standards. Another objective of regulatory cooperation is to 
help to create an environment conducive to investment in ICT infrastructure and ICT-enabled 
applications. 

To  identify  topics  for  regulatory  cooperation,  the  EU  engages  in  policy  dialogues  with 
developing  countries.  Priorities  for  regulatory  co-operation  include  the  establishment  of 
independent  and  effective  regulatory  authorities,  the  non-discriminatory  allocation  of  scarce 
resources,  publicly  available  licensing  criteria  and  transparent  award  procedures,  non-
discriminatory and cost-orientated interconnection, and the use of open technologies. 

Information  Society  policy  dialogues  have  been  established  with  most  developing  regions. 
With South East Asia the Commission organised an EC-ASEAN telecom regulatory seminar 
in June 2008 in Singapore. This event, attended by all regulatory agencies of South East Asia, 
raised  awareness  on  the  basic  principles  that  should  be  embedded  in  a  telecom  regulatory 
framework.  A  number  of  dialogues  have  taken  place  in  the  past  or  are  planned  with  Latin 
American countries, such as Brazil or Argentina.  

At the multilateral level the Commission works together in this respect with the International 
Telecommunication Union (ITU) and the World Bank. For example, the Commission granted 
€6 million to the ITU in 2009 fo r technical assistance on regulatory issues in Africa. 

Example: Regulatory cooperation with the Southern Mediterranean countries 

In  February  2008,  the  Commission  organised  with  Egypt  the  Second  Euromed  Ministerial 
Conferences on the Information Society in Cairo, which was attended by representatives from 
the  Southern  Mediterranean  countries.  This  was  an  important  part  of  the  policy  dialogue, 
which the Commission has developed for several years and which includes a specific method 
for approximating of the EU regulatory framework for electronic communications with that of 

EN 

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the ENP partners countries. Now there is a need for “hands-on” support related to the priority 
areas of regulation in the Information Society Chapter of the ENPI Action Plans as well as for 
multilateral workshops and networking among National Regulatory Agencies (NRAs) in the 
region and with NRAs in the EU Member States. 

In the coming years the focus of this Euro-Mediterranean cooperation will be put on: 

- fostering regional policy harmonisation; 

-  assisting  in  the  adoption  of  regulatory  frameworks  and  their  approximation  with  the  EU 
framework  (based  on  the  NAPT  II  Reference  Guidelines)  and  enhancing  the  administrative 
capacities of the regulators; 

- promoting regulators' networking activities in the region and in relation to regulators in the 
EU Member States 

- promoting best practices and bilateral activities, from regional perspective 

The  Internet  Governance  Forum  (IGF)  is  one  of  the  processes  in  the  context  of  Internet 
Governance agreed at the World Summit on the Information Society (WSIS) in Tunis in 2005. 
The  IGF  is  a  global  platform  for  dialogue  among  all  Internet  Governance  stakeholders.  It 
addresses  the  digital  divide  by  giving  developing  countries  a  greater  say  in  global  internet 
governance.  

The  Commission  has  been  actively  involved  in  this  process  and  supports  it  financially. 
Representatives  of  the  Commission  have  been  participating  in  the  open  consultations  in 
preparation  of  the  IGF  meetings  and  in  meetings  of  the  IGF's  multi-stakeholder  advisory 
group.  

Some  Member  States,  like  Sweden,  Finland,  and  Latvia  are  engaging  in  supporting  global 
initiatives to create a better global policy environment or technical standards for ICTs and are 
discussing  harmonisation  in  international  fora  such  as  ICANN  and  ITU.  Although  these 
initiatives  are  often  led  by  ministries  outside  the  field  of  development  and  foreign  affairs, 
development  ministries  feel  that  these  initiatives  will  ultimately  create  global  public  goods 
that developing countries will also benefit from. 

3.10.2.3. Partnerships 

The EU-Africa Partnership is a key element in the Commission's strategy to reduce the digital 
divide. Two aspects stand out: infrastructure and training. 

The EU-Africa Partnership on Infrastructures supports deployment of physical infrastructures 
in  the  fields  of  transport,  energy,  water  and  ICT  to  promote  interconnectivity  at  continental 
level. A sum of €5.6 billion from the 10th Eu ropean Development Fund (EDF, 2008-2013) is 
being  allocated  to  support  this  Partnership  and  an  innovative  financial  instrument,  the  EU-
Africa  Infrastructure  Trust  Fund  has  been  created.  The  Trust  Fund  brings  together  the 
European  Commission,  EU  Member  States,  the  European  Investment  Bank,  and  European 
Development  Financing  Institutions,  who  can  pool  their  respective  efforts  and  resources  to 
directly  co-finance  relevant  projects.  The  Trust  Fund  provides  grants  that  will  attract  and 
leverage additional funds from other donors and private investors. In the ICT field support has 
already  been  given  to  the  deployment  of  the  Eassy  submarine  backbone  on  the  east  coast  of 
Africa.  These  new  submarine  cables  in  eastern  Africa  will  provide  international  broadband 

EN 

147 

   EN 

 
capacity  and  drastically  reduce  communication  costs.  Recently,  eight  ICT  projects  were 
submitted  for  consideration  for  consideration,  covering  support  for  deployment  of  additional 
backbones, in line with the ICT Infrastructures Master Plan developed by the AUC as well as 
support  measures  in  the  fields  of  e-policies  and  regulation,  primarily  proposing  interaction 
between African and European regulators. 

225 

The EU-Africa Partnership on Science, Information Society and Space complements activities 
envisaged in the Partnership on Infrastructures with key capacity-building initiatives in support 
of ARAPKE, the African Regional Action Plan for the Knowledge Economy, adopted at AU 
level. Five flagship projects have already been identified. They include activities to support the 
development  of  local  content  and  e-applications,  human  resources  aspects  (training  IT 
professionals, promoting digital literacy), reinforcement of scientific capacities notably through 
the deployment of regional research and education networks. Out of these five priority projects 
two  were  chosen  as  early  deliverables  of  the  Partnership:  the  ‘African  Internet  Exchange 
System’ and ‘Africa Connect’ (see box). 

Africa-EU partnership projects to improve the dissemination and use of the Internet in 
Africa 

Africa  Connect  is  designed  to  support  the  development  of  regional  research  and  education 
networks  in  Sub-Saharan  Africa  and  their  interconnection  with  the  European  GEANT2 

225 

African Economic Outlook 2009, p. 90 

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network.  GÉANT2  is  the  high-bandwidth,  academic  Internet  serving  Europe’s  research  and 
education  community.  Connecting  over  30  million  researchers,  spanning  34  European 
countries and  linking to a number of other world regions GÉANT2 is  at the  heart of global 
research  networking.  Interconnection  with  this  high-capacity  and  high-speed  network  and 
more  connected  African  networks  will  enable  better  collaboration  both  within  and  with  the 
African research community.  

GEANT initially connected research networks in industrialised countries (North America and 
Japan)  and  now  has  new  links  to  China,  India,  Latin  America,  South  East  Asia,  Northern 
Africa, South Africa, the Middle East and the Balkans. This extension serve the research and 
education  communities  in  the  different  regions  of  the  world  and  has  paved  the  way  for 
platforms of cooperation in many fields across these regions and with Europe.  

African  Internet  Exchange  System  (AXIS)  is  designed  to  support  the  establishment  of  a 
continental  African  internet  infrastructure  through  national  and  regional  internet  exchange 
points. Internet exchange points at national and regional level are crucial for the development 
of  the  internet  in  Africa,  generating  huge  costs  savings  by  keeping  local  traffic  local  and 
offering  better  quality  of  service  and  new  applications  opportunities.  AXIS  activities  will 
include technical assistance on planning, regulatory/policy issues, as well as human training 
to achieve this objective. 

3.10.3.  Conclusions & Outstanding Issues 

The  EU  has  made  great  strides  in  promoting  an  inclusive  Information  Society.  It  has 
intensified  its  research  cooperation  with  developing  countries  in  the  area  of  ICT  and  has 
stepped  up  its  cooperation  on  regulatory  issues  with  them.  Internet  expansion  is  also 
addressed by the African Union (AU) and European Union (EU) as part of their new strategic 
partnership  for  Science,  Information  Society  and  Space.  Through  this  partnership  the  EU 
supports  the  building  of  infrastructure  and  the  strengthening  of  capacity  in  developing 
countries for ICTs. 

Assessment226 of progress on PCD in this policy area: 

226 

Chart  based  on  Member  States'  responses  to  a  dedicated  PCD  2009  questionnaire  prepared  by  the 
European Commission 

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149 

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Member  States  are  undertaking  several  initiatives  related  to  the  information  society  and 
relevant to development. In Finland the main driver for promoting synergies is reported to be 
a balanced process of global development that supports information society policy aims both 
in  developing  and  developed  countries,  as  well  as  opening  up  possibilities  for  co-operation. 
Difficulties from the ministry point of view are partly administrative due to restricted scope of 
the mandate at the national level and lack of capacity (human, financial). Both factors restrict 
international participation and project activity. At the national level, policy dialogue between 
ministries, especially co-ordinators of information society policy and foreign ministry, is not 
adequate yet, and needs to be organised. 

On a positive note, Member State ministries and agencies whose primary focus is information 
technology  within  countries  are  genuinely  involved  in  promoting  ICT  in  developing  and 
transition  economies.  In  many  cases  it  is  these  agencies  and  ministries  rather  than  foreign 
ministries  or  development  ministries  which  appear  to  be  the  ones  primarily  engaged  in  ICT 
issues with or for developing and transition economies, also at the global level. 

The  EU-AU  Partnership  on  Science,  Information  Society  and  Space  of  the  Joint  Africa-EU 
Strategy does offer some potential that is beginning to be exploited to promote EU-wide PCD 
in  this  field.  It  does  so  by  providing  a  framework,  yet  there  needs  to  be  more  technical 
capacity within the joint expert group (JEG). 

There is also a tendency for Member States, including Germany, Netherlands and the UK, to 
engage in supporting global agencies working on ICT issues. 

Outstanding Issues 

•  Identify jointly with developing countries priorities for joint research in the area of ICT. 

•  Intensify research cooperation in the area of ICT with developing countries in particular by 
including  specific  actions  (sectorial  'Coordination  and  Support  Actions'  (CSAs)  and 
Specific  International  Cooperation  Actions  (SICAs),  etc)  based  on  European  and 
developing countries' specific interests, in the revised FP-7 Work Programme for the ICT 
Theme. 

•  Continue the policy dialogue with developing countries on issues including the promotion 
of  the  establishment  of  independent  and  effective  regulatory  authorities,  the  non-
discriminatory  allocation  of  scarce  resources,  publicly  available  licensing  criteria  and 
transparent  award  procedures,  non-discriminatory  and  cost-oriented  interconnection,  and 
the use of open technologies. 

•  Increase  efforts  to  expand  both  basic  (such  as  electricity  supply)  and  specific  ICT 

infrastructure. 

•  Use  the  Joint  Africa-EU  Partnership  on  Science,  Information  Society  and  Space  to  build 
ICT 

infrastructure 

strengthen 

capacity 

area 

and 

the 

of 

to 

in 

EN 

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3.11.  Transport  

Quick Facts 

•  ACP  countries  allocate  as  much  as  30%  of  the  total  EDF  programmable  funds  to 

transport.227 

•  For  African  landlocked  countries,  transport  costs  can  be  as  high  as  77%  of  the  value  of 
exports.  Landlocked  developing  countries  take  an  additional  22.9  days  for  goods  to  be 
imported  and  28.6  additional  days  for  goods  to  be  exported.  Physical  infrastructure,  or 
ports  and  inland  transport,  accounted  for  only  a  quarter  of  the  delays  while  pre-arrival 
documents, customs and inspections accounted for 70 % of total delays.228 

•  It  is  estimated  that  40-60%  of  people  living  in  developing  countries  live  more  than  8 

kilometres from a healthcare facility. 229 

•  A strong relationship exists between transport constraints and inability to break out of the 
poverty cycle. This is particularly acute for women who have fewer opportunities and less 
access to means of transport230 

3.11.1.  Introduction  

Trade, access to goods and services and the free movement of goods and persons rely on the 
means and ways to be able to move. Transport makes it happen; it provides for the circulation 
of  the  system.  Transport  demands  in  developing  countries  continue  to  grow.  A  sound 
transport  infrastructure  is  crucial  for  international  trade  and  economic  development  and  is 
considered a tool for poverty reduction. Investing in transport infrastructure creates new jobs, 
maintenance of roads is normally labour-intensive in ACP countries and the creation of roads 
literally  opens  routes  for  rural  poor  households  to  seek  jobs  elsewhere  and  for  access  to 
market and services.  

Historically transport sector support for the ACP countries has been concentrated on the road 
sector, particularly in Africa where more than 90%  of passengers and  freight are carried by 
road.  Moreover,  a  substantial  part  of  public  budgets  in  ACP  countries  are  used  on 
construction  and  rehabilitation  of  roads.  Loans  can  be  difficult  to  obtain  from  international 
development banks and comes ate a cost, so that grant funding such as that provided by the 
EC offers a very attractive opportunity to cover some road infrastructure costs. ACP countries 
therefore  frequently  request  that  significant  proportions  of  their  total  programmable 
allocations go to the road sector.  

227 
228 

229 

230 

See http://ec.europa.eu/development/policies/9interventionareas/infrastructure_en.cfm 
United Nations Special Adviser on Africa and High Representative for the Least Developed Countries, 
Landlocked  Developing  Countries  and  Small  Island  Developing  States,  Cheick  Sidi  Diarra,  at  the 
World  Bank's  Annual  Sustainable  Development  Network  Week  in  Washington  on  21  February  2008. 
See http://www.unohrlls.org/en/orphan/593/21.02.2008  
In 
http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTTRANSPORT/EXTTSR/0,,contentMD
K:20835940~menuPK:2274762~pagePK:210058~piPK:210062~theSitePK:463716,00.html 
Conclusion World Bank, 2006, Gender and Rural Transport Programme GRTI in Sub Saharan Africa". 
See http://www4.worldbank.org/afr/ssatp/Resources/HTML/Gender-RG/module4/index-p2.html 

Transport 

Access, 

Health 

World 

2008. 

Bank 

June 

See 

for 

EN 

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However,  in  line  with  the  Communication  'promoting  sustainable  transport  in  development 
cooperation'  which  is  the  basic  guidance  document  concerning  support  for  transport  in 
developing countries, an integrated multi-model approach, encompassing all transport modes 
is  advocated  when  considering  the  transport  networks  of  other  countries.  Support  can  be 
provided  to  develop  any  mode  of  transport,  if  partner  countries  consider  this  to  meet  their 
priorities.  

As  an  example,  increasing  attention  in  promoting  sustainable  transport  in  development  is 
being  paid  to  the  development  impact  of  aviation,  particularly  in  a  continent  as  vast  and 
diverse  as  Africa.  World  air  cargo  traffic  grew  5.1%  in  2007,  following  3.2%  growth  in 
2006231. The growth trend is however decreasing due to the impact of the economic crisis but 
in  general  air  transport  remains  strong.  Europe  is  Africa's  largest  air  trade  partner.  In  the 
period  1997-2007,  Africa's  air  trade  with  Europe  grew  at  4.0%  per  year  and  is  expected  to 
continue to grow.232 But issues related to compliance with international standards, particularly 
in relation to safety, need to be addressed to ensure further sustainable growth. 

Maritime transport is another example, important for international trade, since more than 80% 
of international trade in goods being carried by sea. Due to the financial crisis, there has been 
a decline in the demand for seaborne trade and a consequential fall in freight prices. But the 
financial  crisis  has  also  put  strain  on  credit  and  export  demand  for  ACP  products.  The  net 
result will probably be that developing countries will suffer from this decline.233 Reliance on 
this  mode  of  transport  requires  investments  in  port  infrastructure,  providing  safety  and 
security measures and in general keeping up with continuously changing norms and standards.  

Improved maritime, in-land water ways, land and air transport infrastructure bring economic 
and social benefits. All these elements are crucial for achieving the MDGs. The downsides of 
better  infrastructure  and  increased  access  need  to  be  addressed  as  well  through  what  the 
World Bank calls 'inclusive transport', making sure the poor, women, elderly and the disabled 
are  addressed  in  transport  policies.  Engendering  mobility,  the  role  of  female  transport 
workers, ensuring environmental sustainability and addressing health-related hazards like the 
spreading of HIV Aids and reducing road fatalities are important elements when considering 
investments  in  infrastructure.  Partner  countries'  public  authorities,  particularly  in  Africa, 
increasingly recognise the need to pay attention to transport issues.  

These complex interactions require that EU transport policies take due account of the impact 
on developing countries. 

3.11.2.  Progress towards PCD Commitments  

3.11.2.1. Transport Policy Initiatives 

EU Transport Policy takes the principles of PCD into consideration. Development needs to be 
taken into account in the external dimension of transport.234  

231 

232 
233 

234 

EN 

(WACF)  2008-2009, 

Biennial  World  Air  Cargo  Forecast 
http://www.boeing.com/commercial/cargo/wacf.pdf 
Idem page 65 and 69 
Annual 
of 
http://www.unctad.org/en/docs/rmt2008_en.pdf 
2001  White  Paper  on  European  transport  policy  for  2010:  time  to  decide,  COM  (2001)  370  of 
12.09.2001 and the Mid-term review, COM(2006) 314 final of 22.06.2006 

-  Boeing  Company.  See 

UNCTAD 

Transport 

Maritime 

Review 

2008. 

See 

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The November 2007 Council conclusions on Policy Coherence for Development invited the 
EU  to  continue  monitoring  and  improving  PCD  in  Transport.  The  ongoing  'sector  policy 
dialogue' in the focal areas of support in partner countries provides the basis for a dialogue on 
what areas of EU transport policy impinge on developing countries and what should be done 
to improve policy coherence to promote development. Multi-donor participation would enable 
the  adoption  of  a  'sector  programme'  approach  including  such  matters  as  transport  sector 
strategy,  encompassing  all  transport  modes  and  identifying  partner  countries'  need  for  aid, 
commercial funds/loans and private sector investment.  

Tanzania Sector Budget Support (JAR 2007) 

As  Chair  of  transport  sector  donors,  the  Commission  Delegation  led  the  Development 
Partners'  side  at  the  first  Infrastructure  Sector  Review  held  in  October.  This  provided 
encouraging  results,  with  all  sub-sectors  represented,  and  serious  progress  was  made 
towards establishing government leadership on a sector-wide approach. On the other hand, 
further  work  is  needed  on  the  financing  of  the  sector  (especially  regional  roads),  on  cross-
cutting  issues  (especially  environment  and  the  overall  issue  of  logistics,  encompassing 
intermodality  and  interoperability)  and  most  important  of  all  on  institutional  capacity 
building. 

Strengthening cooperation between Europe and Africa is the core of the Communication on 
partnership between the European Union and Africa.235 It aims to connect the Trans-European 
and  African  networks.  The  Commission  will  make  available  the  experience  it  gained  from 
European  Transport  Policy  to  its  African  partners.  This  seeks  to  contribute  to  the 
implementation  of  a  more  efficient  transport  system,  assisting  in  the  development  of  the 
African  continent in  order  to face the challenges of poverty, environmental degradation and 
migratory imbalances.  

Integration  of  the  gender  dimension  and  other  cross-cutting  issues  is  a  work  in  progress. 
Gender  differences  are  relevant  in  the  design  and  development  of  sustainable  technologies 
and  in  sectors  such  as  transport236.  The  ‘Transport’  them,  has  shown  significant  progress 
under  FP-7  implementation.  Gender  relevance  of  transport  research  content  has  been 
embedded  in  the  Work  Programme  wherever  applicable  and  suitable.  In  addition  and  as 
regards  the  greening  of  transport,  under  the  FP-7  the  EU  is  committed  to  reducing 
environmental and noise pollution.  

Limited  progress  was  made  with  regard  to  the  extension  to  developing  countries  of  the 
benefits of the European satellite navigation system Galileo/EGNOS (European Geostationary 
Navigation  Overlay  Service237),  the  air  traffic  management  modernisation  programme 

235 

236 

237 

in 

the  6th  Framework  Programme  Reference  Guide  for  Scientific 

COM (2009) 301 final: "Partnership between the European Union and Africa. Connecting Africa and 
Europe: working towards strengthening transport cooperation", 24.06.2009 
Gender  Mainstreaming 
Officers/Project Officers 
Extension of EGNOS to Africa would offer improved navigation performance. Other advantages are the 
improvement  of  efficiency of  civil  air  transportation  in Africa,  expansion of  trade with  EU  and other 
countries,  development  and  integration  of  regions  difficult  to  access  (e.g.  served  by  small  airports), 
enabling better use of less equipped airports, promotion of regional technical and scientific cooperation, 
encouragement  of  development  of  local  and  national  industries  and  services,  key  enabler  for  future 
transport and non-transport applications (e.g. railways, precision agriculture, …) increasing safety (e.g. 
reduction of flight-into-terrain type of accidents). In order to do so, some technical requirements would 
need to be in place, notably the deployment of additional ground stations and control centres. Current 

EN 

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SESAR, the Single European Sky Initiative and the Air safety: Cooperative Development of 
Operational  Safety  and  Continuing  Airworthiness  Programme  (COSCAP),  mentioned  in  the 
2007 report.  

3.11.2.2. Joint Africa-EU Strategy 

The  inadequacy  of  infrastructure  on  the  African  continent  severely  constrains  economic 
growth  and  hampers  human  and  social  development.  As  regards  road  safety,  the  African 
continent  has  the  highest  road  fatality/population  rate  in  the  world.  Road  transport  accounts 
for 90% of interurban transport but physical links and services are inadequate. Rail network 
coverage is sparse and interconnectivity of networks is low. Many maritime ports struggle to 
offer  competitive  services  while  inland  waterways  are  poorly  integrated  into  transport 
networks.  

The  need  for  greater  interconnectivity  is  embedded  in  the  Joint  Africa-EU  Strategy  (JAES) 
adopted  in  December  2007  and  the  Partnership  on  Trade,  regional  integration  and 
infrastructure and builds on the Communication Interconnecting Africa238. Africa and the EU 
will aim at increasing interconnectivity by investing in and improving infrastructure along the 
trans-African road transport  corridors  and associated regional road and rail networks. These 
corridors  were  identified  by  NEPAD  and  are  vital  for  import  and  export  for  land-locked 
countries. International corridor transport is however often costly and not necessarily reliable 
due to insecurity, conflict and underdeveloped infrastructure.  

The overall length of the eight trans-African road transport corridors is about 40 000 km. On 
these corridors roughly 4 800km (12%) were maintained and rehabilitated under the national 
programmes of the 8th and 9th EDF (1995-2007) and approximately 6 400km (16%) of the 
corridors  needing  heavy  maintenance  and  rehabilitation  will  be  considered  under  the  10th 
EDF (2008-2013). 

The first estimate of committed amounts under the NIP 8th and 9th EDF is about €1.2 billion; 
i.e.  about  €100  million  a  year.  Over  the  10th  EDF  period  and  on  the  eight  corridors,  we 
consider that those commitments will reach €1.5 billion; i.e. about €300 million per annum. In 
addition,  support  to  corridors  will  be  provided  by  RIPs  (installation  of  joint  post  borders, 
transport facilitation programmes) and substantially by the Infrastructure Trust Fund (ITF). 

The start-up phase of the Partnership is supported through a €10 million allocation, to assist 
the  AU  in  the  preparation  of  projects,  and  some  of  the  planned  initial  activities  have  been 
implemented and enhanced cooperation with other partners interested in the area of African 
infrastructure development will be further explored in the future 

The  EU-Africa  Partnership  on  Infrastructure  brings  Member  States,  the  Commission  and 
African  partners  together;  it  has  the  potential  to  raise  awareness  on  PCD  issues  related  to 
transport among EU practitioners but it is too early to report on the coordinating function as 
the Partnership is still evolving.  

status in aviation: en-route and non-precision landing based on GPS only is limited in performance and 
safety.  The  required  navigation  performance  is  available  only  to  a  few  carriers  equipped  with 
sophisticated on-board GPS-based avionics.  
COM (2006) 376, 13.07.2006 

238 

EN 

154 

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3.11.2.3. Future Perspectives  

There are quite a number of activities in progress in the area of transport. The implementation 
of  the  10th  EDF  transport  programmes,  implementation  of  projects  identified  for  funding 
under the Infrastructure Trust Fund, expansion of ITF resources via allocation under the 10th 
EDF intra-ACP resources and additional loan funds from project financiers. In addition, the 
execution of the demand-driven Programme for Infrastructure Development in Africa (PIDA) 
239 and the Africa Infrastructure Country Diagnostic (AICD)240, funded through a multi-donor 
trust fund – including € 750 000 from the 9th  EDF - are worthy of mention. PIDA and AICD 
should  help  develop  a  coherent  diagnosis  of  Africa's  problems  in  infrastructure  and  provide 
for  a  continent-wide  investment  programme  to  move  forward  with  agreed  priorities.  The 
AICD is reaching its final stages and the flagship report will be issued in July 2009. 

In April 2009, the EU-Africa Aviation Summit in Windhoek took place, laying the foundation 
for  enhanced  cooperation  on  civil  aviation,  and  developing  a  roadmap  for  possible  concrete 
cooperation  activities  particularly  in  such  areas  as  security  and  safety  and  ensuring  that 
appropriate regulatory frameworks are in place.  

The  European  Commission  will  also  reinforce  its  assistance  in  the  establishment  of  "Trans-
African  Networks"  by  drawing  on  the  experience  of  the  tools  which  have  been  developed 
within the Trans-European Transport Networks". For example the establishment of a system 
of coordinators, similar to the ones of the TEN-T could help the AU Commission to ensure a 
coordinated development of the eight trans-African transport corridors.241  

3.11.2.4. International Dimension of EU Transport Policy 

The  EU  is  committed  to  contribute  and  enhance  its  participation  to  International  Maritime 
Organisation (IMO) and the International Civil Aviation Organisation (ICAO).  

The  EU  continues  to  support  measures  to  improve  access  to  ports  in  a  holistic  manner 
including port inspections and environmental as well as safety measures. Better working and 
living  conditions  on  board  ships  are  ensured  through  the  adoption  by  the  EU  of  the  ILO 
Maritime Labour Convention of 2006.  

239 

240 

241 

PIDA is a holistic framework for connecting African infrastructure plans including energy, water and 
transport and involving major stakeholders like NEPAD, UN-ECA, Regional Economic Communities 
and  the  African  Development  Bank.  PIDA  will  enable  Africa  to  have  continental  sector  strategic 
policies and programmes. Its objectives are to: establish a strategic framework for the development of 
regional and continental infrastructure in the areas of energy, transport, ICT and trans-boundary water, 
based  on  a  development  vision,  strategic  objectives  and  sector  policies;  establish  an  infrastructure 
investment  programme  (short,  medium  and  long  term)  around  priorities  established  by  Regional 
Economic Communities; and prepare an implementation strategy and process including, in particular, a 
priority action plan. 
AICD is a study of 44 Sub-Saharan countries which will assist individual countries in benchmarking the 
relative performance of their infrastructure sector and formulating their own country-specific strategies 
in  the  light  of  regional  experience.  It  will  assist  donors  in  designing  appropriate  support  for 
infrastructure  reform,  finance,  regulation  and  investment.  Furthermore,  it  allows  an  improved 
evaluation  of  the  collective  efforts  to  meet  Africa’s  needs  by  establishing  a  baseline  of  the  current 
situation on the continent. Finally it acts as a core reference document on all strategic issues relating to 
infrastructure  and  hence  a  vehicle  for  building  consensus  about  the  appropriate  response  to  Africa’s 
infrastructure problems. 
Seehttp://africa-eu-partnership.org/au-
eu/pages/templates/focus.jsp;jsessionid=6860C088E4988C0D58F4F4ED4D13F1DF?filename=focus 

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The  IMO's  Maritime  Safety  Commission  discusses  a  number  of  issues  related  to  maritime 
security and safety matters. The need for protection of ships against piracy and robbery off the 
coast of Somalia for example and the adoption of amendments to the International Convention 
for the Safety of Life at Sea (SOLAS) were among the items at the top of the agenda during 
the 85th session, at the IMO's London Headquarters, from 26 November to 5 December 2008. 
In  air  transport  progress  has  been  made  in  setting  up  Community  Aviation  Agreements.  As 
opposed  to  traditional  bilateral  air  services  agreements,  these  Community  agreements 
systematically  provide  for  inter-modality/co-modality.  This  is  particularly  relevant  to 
countries  involved  in  the  European  Neighbourhood  Policy  and  the  Union  for  the 
Mediterranean. These agreements also consider all areas relevant to air transport in a coherent 
way  (economic  issues  such  as  the  increased  market  access;  social  issues  including  working 
conditions  of  personnel;  environmental  issues  like  CO2  emissions,  etc.).  Improved  dialogue 
on the external effects of the transport policy is a key element in the agreements. The flow of 
information  from  and  to  developing  countries  is  one  of  the  key  challenges  regarding  the 
promotion of synergies.  

The European Commission is striving to enhance coordination with the African Development 
Bank and the World Bank, as the main financiers of transport in Africa. In the meantime the 
Commission  continued  as  the  lead  donor  of  the  Sub-Saharan  Africa  Transport  Policy 
Programme  (SSATP).  SSATP  is  a  partnership  of  35  Sub-Saharan  countries,  Regional 
Economic Communities and donors that facilitates the development of transport policies and 
implementation strategies to strengthen economic growth and reduce poverty. In addition, an 
amount of €0.75 million was allocated to assist  the AU to advance the implementation of the 
Yamoussoukro  Decision  concerning  the  liberalisation  of  access  to  air  transport  markets  in 
Africa.  

Within the ENPI, new regional programmes in partner countries along the eastern border of 
the  EU  received  funding  to  support,  among  other  things,  the  beneficiary  countries' 
administrations in the implementation of air and land transport safety and security measures. 
Progress  was  also  made  improving  international  transport  in  the  Black  Sea  region,  the 
Caucasus and Central Asia. Ambitious projects were launched to improve maritime links with 
the  neighbouring  countries,  notably  through  the  development  of  'Motorways  of  the  Sea'  a 
concept aiming at introducing new intermodal maritime-based logistics chains in Europe, for 
the  Black  and  Caspian  Seas.  Specific  expertise  was  also  dedicated  to  the  transport  of 
dangerous  goods  and  Liquefied  Petroleum  Gas  along  the  Europe  Caucasus  Asia  Transport 
Corridor,  while  intensive  training  and  support  was  provided  to  the  region's  freight  carriers. 
The objective is to create an effective transport market involving the EU and its neighbours. 

In the Mediterranean region, to support the economic and social development of the region, 
the  Commission  encouraged  the  creation  of  a  regional  Euro-Mediterranean  transport 
infrastructure network allowing more functional and efficient transport connections between 
the two shores of the Mediterranean. A new initiative will consolidate the political dialogue, 
carry  out  analyses  concerning  regulatory  reform,  infrastructure  planning  and  assessment  of 
financing needs and support the implementation of priority projects. Particular efforts will be 
made to establish Motorways of the Sea.  

In  2008,  the  Commission  adopted  a  new  programmes  for  the  support  of  ASEAN  with  the 
ASEAN  Air  Transport  Integration  Project  whose  purpose  is  to  develop  the  institutional 
frameworks and to strengthen institutional capacities within ASEAN with a view to achieving 
a  safe,  secure  and  sustainable  ASEAN  Single  Aviation  Market  by  2015  based  on  high 
regulatory standards. 

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Member States' Contribution to PCD in Transport 

A number of Member States have established new programmes to promote PCD since 2007. 
Lithuania  has  created  the  Baltic  Black  Seas  Transport  Corridor  and  a  Coordination  Council 
for the Corridor with Belarus and Ukraine in 2008. These initiatives improve Belorussian and 
Ukrainian mobility. Lithuania is seeking to connect the Viking project (connecting Lithuania, 
Belarus and Ukraine) to the TRACECA (Transport Corridor Europe Caucasus Asia). To this 
end,  discussions  with  Turkey  have  been  launched.  Lithuania  has  also  hosted  a  seminar  to 
inform Belorussian government officials about EU transport policy and bilateral cooperation.  

Portugal  has  signed  a  Memorandum  of  Understanding  (MoU)  with  the  civil  aviation 
authorities of Angola, Brazil, Cape Verde, Guinea Bissau, Mozambique, Sao Tome e Principe 
and  East  Timor,  aiming  to  establish  the  “Portugese  Official  Language  Countries  Civil 
Aviation  Authorities  Community  (CAACL).  In  addition,  Portugal  has  signed  shipping 
agreements with all Portugese-speaking countries with the aim of meeting their needs in the 
port  and  maritime  sector,  and  particulary  assisting  entities  responsible  for  regulating  and 
supervising the maritime and port sectors.  

Germany  has  commissioned  the  project  “Infrastructure  Capacity  Building  Initiative  for 
Regional  Economic  Communities  in  Africa”,  which  aims  to  assist  RECs  in  Sub-Saharan 
Africa in establishing regional transport infrastructures.  

The  Czech  Republic  reports  that  its  railway  project  in  Indonesia  and  urban  transport 
programmes  in  Kabul  and  Bishkek  have  contributed  to  a  more  balanced  intervention  logic 
targetting all transport modes. The Netherlands is carrying out a capacity-building programme 
with  several  countries  on  aviation  safety  and  on  bilateral  maritime  cooperation  with  the 
Philippines.  

The  Malta  Maritime  Authority  has  discussed  areas  for  cooperation  on  port  and  maritime 
issues with North African EuroMed countries. 

3.11.3.  Conclusion & Outstanding Issues 

Assessment242 of progress on PCD in this policy area 

242 

Chart  based  on  Member  States'  responses  to  a  dedicated  PCD  2009  questionnaire  prepared  by  the 
European Commission. 

EN 

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Overall, PCD progress in the area of transport is rated as average. Increasingly, the issue of 
coherence  is  being  addressed  by  more  balanced  interverventions  across  transport  modes,  in 
particular  in  Sub-Saharan  Africa,  and  links  to  cross-cutting  issues.  However,  beyond  the 
regional and  international connections,  the  issues of local access in  Sub-Saharan Africa and 
transport choices in rural and urban areas, though covered by Community aid, require perhaps 
more attention. Stepping up efforts to increase coverage would be needed as these links are 
crucial for reducing poverty and accelerating growth in Sub-Saharan Africa.  

Any progress with regard to PCD promotion would require some type of policy framework at 
every  level.  None  of  the  Member  States  mention  inter-ministerial  coordination  mechanisms 
within Member States on transport and development, which might be an indication of the lack 
of  awareness  of  this  link  between  the  two  areas.  Monitoring  and  analysis  mechanisms  also 
seem to be lacking across the spectrum.  

Promising  overarching  initiatives  are  difficult  to  identify  in  this  area,  as  transport 
development  cooperation  programmes  are  still  very  fragmented.  Policy  Coherence  for 
Development could assist in addressing this fragmented external dimension of EU Transport 
policy.  EU  initiatives  could  aim  for  more  coordination  and  cooperation  in  this  area.  Better 
frameworks  are  needed  at  all  levels  to  set  out  goals  and  initiatives.  The  Partnership  on 
Infrastructure could be an important starting point if the actors involved used the opportunity 
at hand.  

Outstanding Issues 

•  Continue to develop the coherent policy dialogue on transport with partner countries and 

raise awareness of the link between development and transport 

•  Continue to address the fragmented external dimension of the EU transport policy  

•  Develop monitoring mechanisms with a view to promoting PCD in transport  

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3.12.  Energy  

Quick Facts 

•  Nearly 2 billion people are without access to modern energy services (UNDP 2007) 

•  World energy demand will expand by 45% between 2006 and 2030 with coal accounting 

for more than a third of the overall rise. (WEO 2008) 

•  China  and  India  will  account  for  51%  of  the  increase  in  global  primary  energy  between 

2006 and 2030 (WEO 2008) 

•  Wind has been the fastest growing renewable electricity source worldwide, with an average 

annual growth rate of 24% over the period 1990-2005 (WEO 2008) 

•  World CO2 emissions from fuel combustion are projected to increase by almost 45% from 

2006 to 2030 if policies don’t change (WEO 2008) 

•  About 80 developing countries […] grow and  process sugarcane, a high yielding crop in 

terms of photosynthesis efficiency that can also be used to produce ethanol (IFPRI 2006) 

3.12.1.  Introduction  

Energy  policies  worldwide  will  be  a  key  determinant  of  developing  countries'  ability  to 
achieve  the  Millenium  Development  Goals  (MDGs).  The  oil  price  boom  in  2008  has  shed 
new  lights  on  the  dependence  of  our  economies  on  affordable  energy.  However,  while  the 
developed  world  and  the  emerging  countries  have,  to  some  extent,  the  financial  capacity  to 
weather  oil  price  fluctuations,  and  expected  increase  in  the  future,  oil-importing  developing 
countries have seen their public expenditure dramatically affected, sometimes to the detriment 
of  other  public  spending.  Beyond  this  direct  impact  on  budget  matters,  access  to  energy  is 
critical  to  economic  development,  growth,  poverty  reduction  and  better  social  services 
provision.  

Access  to  affordable  and  sustainable  source  of  energy  is  therefore  part  of  the  development 
solution  for  developing  countries.  This  will  also  help  to  curtail  rising  emissions  of 
greenhouses gases consistent with the climate change policy objectives. Policy synergies can 
be  developed  in  the  context  of  the  2007  Energy  Policy  for  Europe243,  which  aims  at 
integrating Europe's energy and development policies in a "win-win" game. In this context the 
EU will support developing countries in promoting sustainable and secure supply and use of 
energy. Enhancing the coherence of EU energy policies with development objectives will be 
paramount in an energy world characterised by increasing demand and serious constraints on 
traditional supplies  

243 

Com (2007) 1 final, 10.01.2007 

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3.12.2.  Progress towards PCD Commitments  

3.12.2.1. Policy Context 

In the context of the 2007 Energy Policy for Europe, the second Strategic Energy Review244, 
adopted by the Commission in November 2008 emphasised that external energy dimensions 
must be given political attention in the EU's external relations and highlighted the importance 
of  the  "EU's  20-20-20  strategy"245.  With  regards  to  developing  countries,  the  Review 
recognised  the  EU's  need  to  assess  the  increasingly  important  role  of  Africa,  to  step  up  its 
energy relationships with Africa and promote reliable energy partnerships with suppliers, as 
well  as  its  assistance  in  regional  integration  of  electricity  markets  and  the  promotion  of 
renewable energy. 

The  adoption  of  the  EU  Climate  Change  and  Energy  Package246  in  December  2008  was  a 
landmark,  highlighting  the  interactions  between  energy  and  climate  issues.  The  provision 
regarding 10% share of renewable energy, including biofuels, in the transport sector in the EU 
by  2020  is  of  particular  relevance  to  developing  countries.  However,  energy-efficient 
production capacities as well as transmission and distribution networks will also contribute to 
enhanced security of energy supply in developing countries. These countries will benefit from 
the  EU’s  efforts  to  diversify  energy  supply  and  to  develop  energy–efficient  and  renewable 
energy technologies247. In this context, in June 2008, the G8 countries (with China, India and 
South  Korea)  and  the  Commission  established  the  International  Partnership  on  Energy 
Efficiency  Cooperation  (IPEEC),  a  framework  for  international  cooperation  which  will 
facilitate actions yielding in high energy efficiency gains. 

•  The Renewable Energy Directive 

Renewable  energy  and  sustainable  biofuels  development  is  a  key  focus  of  the  EU's 
cooperation with developing countries. Renewable energy could indeed be a preferred choice 
for power generation not only for the urban areas but also for the rural and isolated areas, with 
considerable distances from national grids.  

Regarding biofuels, their use has been promoted in the EU as a way to reduce dependence on 
imported oil and to reduce Greenhouse gas (GHG) emissions from the transport sector since 
2003.  In  2007,  the  overall  share  of  biofuels  in  road  transport  in  the  EU  reached  2,6%.  In 
December 2008 an agreement was reached on the new Renewable Energy Directive248, which 
includes in particular the binding targets of a 20% overall share of renewable energy in 2020, 
and a 10% share of renewable energy in transport. Biofuels are expected to contribute to both 
these  targets.  Although  these  goals  could  be  met  by  EU  biofuels  production,  the  share  of 
imports  is  expected  to  grow  and  might  come  from  developing  countries,  as  some  tropical 
crops  have  a  comparative  advantage  in  terms  of  GHG  savings  potential.  To  limit 

244 
245 

246 

247 
248 

COM/2008/0781 final ,13.11.2008 
The EU is committed to 20% greenhouse gas (GHG) reduction, to the sourcing of 20% of its overall 
energy  mix  from  renewable  energy  and  to  a  savings  target  of  20  %  of  total  primary  energy 
consumption, all this by 2020. 
The  December  2008  Climate  and  Energy  Package  is  presented  in  Chapter  3  on  Climate  Change.  See 
European  Commission  Press  Release  IP/08/1998,  17.12.2008  for  an  overview.  For  additional 
information: http://ec.europa.eu/environment/climat/climate_action.htm 
Outstanding issue from the 2007 Report on PCD 
COM(2008) 19 final, 23.01.2008 

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environmental  risks  in  developing  countries  and  the  EU,  the  Directive  provides  for  a 
pioneering and far-reaching sustainability scheme for biofuels.  

With the adoption of the Renewable Energy Directive all EU Member States will now apply a 
common  sustainability  scheme.  The  scheme  will  for  the  first  time  oblige  all  EU  biofuel 
producers or importers to comply with clear environmental criteria, and to report on a number 
of  additional  effects,  including  possible  economic  and  social  impacts  within  the  EU  and  in 
third  countries.  Among  the  reporting  and  monitoring  requirements,  some  are  specifically 
meant  to  monitor  the  impacts  of  increased  biofuels  production  in  third  countries.  These 
include the requirements for economic operators to report on measures to protect soil, water 
and air quality, in the EU and in third countries where biofuels are produced. In addition, the 
Commission  is  committed  to  monitoring  the  land  use  changes  associated  with  increased 
production  of  biofuels  and  the  impacts  on  the  availability  and  price  of  foodstuffs  in 
developing countries, as well as wider development issues.  

Staff Working Paper on Climate Change, Energy – The Biofuels – April 2008 

The Commission elaborated on the multiple dimensions249 of EU biofuels policy in relation to 
development in a Staff Working Paper250 issued in April 2008, which provided some options 
for a development-friendly EU biofuels policy: "The EU should help developing countries to 
benefit  from  the  opportunities  created  by  the  biofuels  market  for  fighting  poverty,  while 
maintaining  careful  monitoring  of  the  impact  it  can  have  on  third  countries,  in  particular  in 
terms of food security, access to land and the environment. Against this background, one of 
the  recommendations  proposed  is  regular  monitoring  of  the  European  biofuels  policy  fully 
including the development dimension".  

While the subject remains a contentious issue in the EU, some Member States are active in 
this field. Germany for instance worked on an international certification system for biofuels 
and  biomass  to  avoid  conflicts  of  objectives  and  undesired  side  effects.  Sweden  for  its  part 
supported the Biofuel Task Force in Tanzania, where modern laws and regulation are being 
developed in accordance with EU policies, and cooperated with Brazil on bioenergy. France 
also  maintained  a  scientific  cooperation  on  biofuels  with  Brazil.  Finally,  the  creation  of  a 
dedicated  agency  to  promote  renewable  energy  globally  (IRENA)  by  Germany,  Spain, 
Denmark and Latvia is another important development. The International Renewable Energy 
Agency  (IRENA)  was  officially  established  on  26  January  2009  in  Bonn.  It  is  an 
intergovernmental body (136 States have signed the Statute of the Agency, amongst them 45 
African, 36 European, 32 Asian, 14 American countries and 9 States from Australia/Oceania) 
which "aspires to become the main driving force for promoting a rapid transition towards the 
widespread and sustainable use of renewable energy on a global scale. As the global voice for 
renewable  energies,  IRENA  envisages  providing  practical  advice  and  support  for  both 
industrialised  and  developing  countries,  thereby  helping  to  improve  frameworks  and  build 
capacity.  Moreover,  the  Agency  intends  to  facilitate  access  to  all  relevant  information, 
including  reliable  data  on  the  potentials  for  renewable  energy,  best  practices,  effective 
financial mechanisms, and state-of-the-art technological expertise".251 

249 
250 

251 

Outstanding issue from the 2007 Report on PCD 
COM(2008)  177  final  and  SEC(2008)  434.09.04.2008"The  EU  –  a  global  partner  for  development: 
Speeding up progress towards the Millennium Development Goals",  
See www.irena.org  

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3.12.2.2. Dialogue with Partner Countries and Regions 

•  The EUEI  

During the World Summit on Sustainable Development in 2002, the EU launched an initiative 
to support the provision of adequate, affordable and sustainable energy services in developing 
countries,  the  EU  Energy  Initiative  for  Poverty  Reduction  and  Sustainable  Development 
(EUEI)  252.  The  Commission  and  the  Member  States  have  stepped  up  their  support  to  the 
EUEI since 2007, creating new financing instruments,  such as the ACP-EU Energy Facility 
(cf. section 3.12.2.3). 

The value of the EUEI in improving coordination in the Union is widely acknowledged. The 
Initiative  has  helped  raise  the  profile  of  energy  on  the  development  agenda  and  offers  an 
important platform for dialogue and coordination. However, there is still a need to strengthen 
EUEI funding and increase dialogue with beneficiary countries.  

The EUEI-PDF 

The  EUEI-  Partnership  Dialogue  Facility  (EUEI-PDF)  is  an  initiative  of  six  Member  States 
aiming at supporting the development of policies and strategies for the promotion of access to 
energy at national and regional level. These are based on dialogue within and between partner 
countries,  their  regional  organisations,  EU  Member  States  and  the  European  Commission. 
Germany  and  the  Netherlands  are  the  main  contributors  to  the  PDF253.  The  European 
Commission  will  support  expansion  of  the  PDF's  activities  related  to  implementation  of  the 
Africa-EU Energy Partnership, focusing on supporting stakeholders and policy dialogue. 

•  Africa-EU Energy Partnership 

In  December  2007,  leaders  of  the  EU  and  Africa  adopted  a  Joint  Africa-EU  Strategy.  An 
Action Plan for the period 2008-2010, including an EU-Africa Energy Partnership, was also 
agreed upon. This Partnership builds on the previous work undertaken through the EUEI and 
extends its coverage to wider issues such as energy security.  

Joint mission of Commissioners Michel and Piebalgs to Africa  

In September 2008, European Commissioners Piebalgs and Michel undertook a joint mission 
to Africa to communicate the importance of the Africa-EU Energy Partnership and to reach an 
agreement on its concrete and effective implementation. This first-ever visit of an EU Energy 
Commissioner to Africa was an initiative combining development and energy strands of EU 
cooperation with the region.  

252 

253 

The goal of the EUEI is to contribute to providing access to energy necessary for the achievement of the 
Millennium  Development  Goals.  It  does  so  by  helping  raise  political  awareness of  the  important  role 
energy  can  play  in  poverty  reduction,  clarify  the  need  for  energy  services  for  poverty  reduction  and 
sustainable  development,  encourage  the  coherence  and  synergy  of  energy-related  activities  and 
stimulate new resources from the private sector, financial institutions, civil society and end-users. 
See www.euei-pdf.org 

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In September 2008 a Joint Statement was signed by the African Union Commission and the 
European Commission on the Implementation of the EU-Africa Energy Partnership254, setting 
the  priorities,  with  careful  consideration  given  to  the  economic  viability  of  initiatives 
supported  or  financed255,  for  EU-Africa  energy  cooperation  in  five  main  areas:  energy 
security;  regional  integration  and  energy  infrastructure;  interconnections  within  Africa  and 
between  Africa  and  the  EU;  the  promotion  of  an  enabling  environment  for  private-sector 
investment;  improving  access  to  energy  services,  exploring  Africa's  renewable  energy 
potential in a sustainable way and improving energy efficiency. 

EU Member States are closely associated, in the spirit of  the Partnership, and technical and 
political  dialogue  and  exchange  of  views  have  taken  place:  Austria  and  Germany  are  co-
chairing the EU Implementation Team where other Member States are also represented. The 
Partnership provides a platform which allows institutions on both sides to communicate more 
efficiently,  focusing  on  Africa's  energy  needs  and  potential.  As  a  result  better  coherence  in 
EU's action in the region is being achieved.  

With  a  view  to  implementing  the  above  priorities,  a  regular  policy  dialogue  will  continue 
throughout  2009  and  will  focus  on  putting 
institutional 
implementation  set-up.  This  should  include  the  building  up  of  an  African  Implementation 
Team.  

the  appropriate 

in  place 

The EU and Nigeria 

The establishment of a regular energy policy dialogue with Nigeria within the framework of 
the EU-Nigeria political dialogue is one of the EU's priorities. It is situated in the context of a 
wide  strategy  of  increased  political  engagement  and  cooperation  with  Nigeria.  The  mutual 
interest in enhancing bilateral relations in the energy sector was one of the highlights of the 
EU - Nigeria Foreign Affairs Ministerial troika meetings held in May 2008 and in June 2009. 
This  dialogue,  which  involves  the  Commission  and  EU  Member  States,  will  enable  the 
discussion of cooperation on energy issues and will strengthen the political and development 
dimension of EU energy cooperation with third countries. 

•  Other Bilateral Energy Dialogues 

Among  the  numerous  energy  dialogues  established  with  third  countries256,  European 
Commission cooperation with China on energy has been the focus of increasing attention in 
2007  and  2008.  The  College  visit  to  Beijing  in  April  2008  created  a  momentum  for  both 
parties  to  tackle  energy  issues  at  the  highest  political  level.  They  committed  themselves  to 
actively  pursue  cooperation  on  topics  such  as  clean  coal,  energy  efficiency  and  renewable 
energies.  

The EU-China Energy Dialogue 

The  Commission  is  implementing  with  its  Chinese  counterpart  a  research  programme  on 
Carbon  Capture  and  Storage  thus  allowing  the  development  of  a  promising  sustainable 
technology. The Commission also promotes clean coal technologies for existing power plants 

254 

255 
256 

African  Union  Commission  and  European  Commission  launch  an  ambitious  Africa-EU  Energy 
Partnership, 08.09. 2008. 
Outstanding issue in the 2007 report on PCD. 
Including developing countries in Asia, Latin America, Africa and Middle East 

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through  the  organisation  of  dedicated  workshops  and  the  formal  setting  up  of  a  Working 
Group on Clean Coal. In 2009, a Euro-China Clean Energy Centre, targeting businesses, and a 
Training Institute for Clean and Renewable Energies (ICARE), providing advanced training 
to  master  fellows,  will  be  established.  In  the  meantime,  in  June  2009  the  European 
Commission  adopted  a  Communication  on  "Demonstrating  Carbon  Capture  and  Geological 
Storage  (CCS)  in  emerging  developing  countries:  financing  the  EU-China  Near  Zero 
Emissions Coal Plant project"257.,  

During the EU-Brazil summit in December 2008, an Energy Chapter was included in the EU-
Brazil  Joint  Action  Plan.  Five  main  priorities  are  at  the  core  of  this  bilateral  dialogue: 
exchange of experiences and consultations on competitive energy markets; energy efficiency 
and demand management; joint research efforts in second generation biofuels; promotion of 
sustainable biofuels at the international level; promotion of EU-Brazil industrial cooperation 
on low carbon technologies paying particular attention to safe and sustainable technologies. 

•  Instruments to implement EU Energy Policies in Developing Countries 

In  June  2007,  the  Commission  adopted  the  thematic  programme  for  the  environment  and 
sustainable management of natural resources, including energy (ENRTP) and its multi-annual 
indicative  programme  2007-2010.  This  strategy  aims  to  promote  the  EU's  energy  policies 
abroad in the common interest of the EU and partner countries and regions (See Chapter 3 on 
Environment Policy).  

Among  other  initiatives,  the  programme  supported  the  Global  Energy  Efficiency  and 
Renewable Energy Fund (GEEREF), which was created in 2007, with an allocation of €20 
million. The objective of GEEREF is to pool public and private funds through an innovative 
public–private partnership so as to offer new risk-sharing and co-funding options for various 
investors in the areas of energy efficiency and renewable energy.  

Global Energy Efficiency and Renewable Energy Fund (GEEREF) 

The GEEREF is an innovative risk capital fund which uses limited public money to mobilise 
private  investment  in  energy  efficiency  and  renewable  energy  projects,  in  developing 
countries and economies in transition. The GEEREF funding, totalling €22 million in 2008, is 
channelled  into  two  commercial  funds,  one  focusing  on  projects  in  sub-Saharan  Africa,  the 
other  on  Asia,  with  a  primary  focus  on  India.  Both  funds  will  invest  equity  in  renewable 
energy projects such as wind energy generation, small hydro-electric generation, biomass and 
methane recovery. 

The  European  Commission258  and  many  EU  Member  States  contribute  to  the  Extractive 
Industries  Transparency  Initiative  (EITI),  which  is  a  coalition  of  governments,  companies, 
civil society, investors and international organisations that aims to strengthen governance in 
the  extractive  industry  sector  by  improving  transparency  and  accountability,  particularly 
through  verification  and  full  publication  of  company  payments  and  government  revenues 
from  oil,  gas  and  mining.  These  revenues  once  accounted  for  can  contribute,  through  more 
transparent state budgets, to financing activities that aim at poverty reduction.  

257 
258 

See COM(2009) 284 final, 25.6.2009 
For  the  period  2008-2010  the  Commission  is  contributing  €530,000  to  this  initiative  through  its 
participation in the World Bank Multi-donor Trust Fund for EITI 

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Since  May  2008  the  Commission  has  become  a  member  of  the  Global  Gas  Flaring 
Reduction public-private partnership (GGFR)259. GGFR, also supported by France and the 
UK,  brings  together  representatives  of  governments  of  oil-producing  countries,  including 
many developing countries, state-owned companies and major international oil companies260. 
GGFR aims to improve energy efficiency by unlocking the value of wasted gas. The focus of 
the initiative is on major flaring countries and regions261 and of particular relevance to Africa 
where energy needs are particularly acute.  

Over  recent  years  some  projects  focusing  on  capacity  building  and  training  in  developing 
countries  were  supported  by  the  COOPENER  programme,  which  was  the  external 
component  of  the  Commission's  "Intelligent  Energy  –  Europe  (IEE)  programme"  and 
addressed the role of sustainable energy for poverty alleviation in developing countries. It was 
launched in 2003 in the framework of the EU Energy Initiative and integrated into the ENRTP 
in 2007.  

These  initiatives  and  partnerships  are  all  aimed  at  increasing  investments  in  the  field  of 
energy efficiency or renewable energy and at reducing negative impacts in the field of energy. 

3.12.2.3. Development Policies and Instruments in support of Energy in Developing Countries  

At  EU  level,  the  support  to  energy  has  increased  with  its  inclusion  as  a  priority  area  in 
development policy and the awareness created by the ACP-EU Energy Facility. While support 
is provided to many developing countries, particular attention has been paid in recent years to 
Africa, as the most needy region in terms of energy access.  

The  ACP-EU  Energy  Facility,  funded  to  the  tune  of  €220  million  by  EUEI  since  2005,  is 
designed to co-finance projects that deliver energy services to poor rural and peri-urban areas. 
The  main  activities  performed  are  related  to  energy  production,  transformation  and 
distribution,  to  extension  of  existing  electricity  grids  and  to  "soft"  activities  such  as 
governance,  capacity  building  or  feasibility  studies.  The  Energy  Facility  also  finances  a 
Capacity  Building  Programme  (2008-2013),  with  the  aim  of  supporting  the  African  Power 
Pools and the Africa Forum for Utility Regulators..  

The  EU-Africa  Infrastructure  Trust  Fund  (ITF)  is  the  main  instrument  implementing  the 
Africa-EU Infrastructure Partnership. It was set up by a number of Member States (for a total 
of  €40  million)  and  the  Commission  (€108  million) 
to  provide  support  (grants,  interest  rate 
subsidies, guarantees) to priority regional infrastructure projects in Africa. A majority of the 
projects  supported  by  the  ITF  have  been  in  the  energy  sector,  including  major  investment 
projects  such  as  the  Caprivi  Interconnector  between  Namibia  and  Zambia  and  the  Felou 
Hydro Power Plant on the Senegal river.  

Energy activities are also supported under the National and Regional Indicative Programmes 
adopted in 2007. Fourteen ACP countries262 have included energy in their national indicative 
programmes.  In  addition,  the  regional  programmes,  in  particular  for  "Eastern  and  Southern 

259 
260 
261 
262 

With a contribution of €270,000 
Outstanding issue in the 2007 Report on PCD. 
Gulf of Guinea, Russia and Caspian region, Middle East, Latin America, East Asia 
Burkina  Faso,  Burundi,  Chad,  Cook  Islands,  Ivory  Coast,  Kiribati,  Marshall  Islands,  Nauru,  Niue, 
Palau, Sierra Leone, Tanzania, Tonga and possibly Guinea Bissau and Liberia. 

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Africa", “West Africa" and "Southern Africa-SADC”, are open to provide financing to energy 
projects. 

Several  EU  Member  States  are  actively  involved  in  cooperation  programmes  and  projects 
with  developing  countries.  In  terms  of  ODA  disbursed  in  the  energy  sector,  Germany  and 
France263  are  the  biggest  contributors.  Germany  is  involved  in  the  energy  sector  in  50 
countries  worldwide  and  promotes  synergies  between  energy  and  development.  The  UK 
contributed  voluntary  grants  of  £750  million  in  the  period  2007-2009.  The  Czech  Republic 
and  Austria,  among  others,  have  supported  programmes  promoting  access  to  sustainable 
energy sources in Vietnam, Yemen, Serbia and Mongolia and, more generally, in Africa and 
in the Central American region.  

A number of Member States have also strengthened analysis and monitoring mechanisms in 
the energy field. The Irish Aid Advisory Board commissioned a report on biofuel production, 
which  was  used  to  inform  all  other  relevant  departments  of  the  issues  surrounding  biofuel 
production  in  developing  countries.  France  and  the  World  Bank  have  financed  a  study  on 
urban  transport  in  China,  taking  into  consideration  environmental  and  energy  aspects  for 
sustainable development.  

Netherlands: Development of a Biomass Action Plan 

The Netherlands has made significant efforts since 2007 to enhance capacities for the use of 
biomass as an energy source both nationally and within developing countries. The goal of this 
Biomass  Action  Plan  is  "to  stimulate,  support  and  facilitate  the  promotion  of  the  sustainable 
production of biomass for energy purposes, as far as possible internationally anchored, on the 
basis  of  a  ‘level  playing  field’  and  to  make  good  use  of  the  opportunities  presented  to 
developing countries". The Netherlands has set strict goals for the use of biomass, in line with 
EU  commitments,  and  has  decided  to  use  this  opportunity  to  assist  developing  countries  in 
this  sector264,  through  support  for  sustainable  production  of  biomass,  for  both  national  and 
international use, with an emphasis on certification and monitoring of production. Taking into 
consideration the development aspects, production of biomass has strong potential to increase 
PCD in the Energy Sector. 

3.12.3.  Conclusion & Outstanding Issues  

Over  the  last  two  years,  energy  has  become  a  key  political  priority  for  the  EU  and  more 
political  attention  has  been  paid  to  Energy  and  possible  synergies  with  Development  have 
been  sought.  One  key  energy  policy  initiative  since  2007,  the  Climate  Change  and  Energy 
Package, will affect developing countries in a number of ways265 and in particular through its 
biofuel aspects which will generate for developing countries opportunities and challenges that 
need to be carefully balanced. The sustainability scheme attached to the  EU  biofuels policy 
has  been  elaborated  taking  into  consideration  the  resulting  concerns  related  to  potential 
environment  degradation,  social  tensions  and  food  availability  in  poor  countries.  The 
development  dimensions  of  the  biofuels  policy  have  been  considered  in  the  context  of 
ongoing  efforts  by  the  EU  to  enhance  Policy  Coherence  for  Development.  Reciprocally, 

263 
264 

265 

With €800 million and €600 million a year respectively. 
Global Sustainable Biomass Fund, March, 2009. 
http://www.senternovem.nl/globalsustainablebiomass/index.asp 
See also Chapter 3 on Climate Change policies 

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development  policies  in  specific  developing  countries  could  be  implemented  in  synergy, 
helping countries where good potential exists to develop biofuels production and use. 

Beyond the policy level, rapid progress has been achieved on other initiatives as exemplified 
by the higher priority given to energy in country development programmes; the setting up of 
an  energy  dialogue  with  Africa  through  the  Africa-EU  Energy  Partnership,  and  with  other 
developing countries, including emerging countries (e.g. China, Brazil); the enhancement of 
EUEI through the introduction of new instruments (e.g. providing funds for a second Energy 
Facility266);  and  the  adoption  of  a  thematic  programme  to  support,  inter  alia,  energy 
programmes (the ENRTP). 

At  EU  level,  Member  States  are  satisfied  with  the  progress  in  the  area  of  energy  (see  chart 
below267). However there is large scope for maximising the positive impact of the EU energy 
policy,  in  particular  through  the  strengthening  of  EUEI,  seen  as  an  important  platform  for 
dialogue and coordination; through increased dialogue with beneficiary countries and through 
further research on reducing the costs of "green" technologies. Conflicting political priorities 
and  diverging  interests  of  EU  Member  States  often  remain  an  obstacle  to  PCD  and  there  is 
little  synergy  between  EU  countries'  policies,  although  in  some  specific  cases,  such  as 
biofuels,  a  number  of  Member  States'  initiatives  are  converging.  Finally,  as  policy 
coordination  and  monitoring  mechanisms  at  national  level  are  usually  weak,  a  strengthened 
EUEI,  at  EU  level,  could  usefully  assist  with  the  task  of  overall  coordination,  ensuring  that 
development concerns are taken into accounts in all energy-related EU initiatives.  

Future  energy  policies  in  the  EU  will  be  key  to  ensuring  the  sustainable  economic 
development  of  the  Union  and  its  response  to  climate  change.  They  will  also  help  the  EU 
efforts to assist developing countries in reaching the MDGs. Indeed, no development will take 
place if access to energy sources is  not  secured.  Progress  achieved  so  far  in  terms  of  social 
and economic development, in developed and developing countries alike, will be jeopardised 
by  the  constraints  on  affordable  energy  supply.  Improving  energy  efficiency,  diversification 
and renewable energies are all valid strategies in the long term for all countries, but different 
countries' specific endowment in energy resources will make convergence of agendas towards 

266 
267 

To the tune of €200 million from the 10th European Development Fund (EDF) 
Chart  based  on  Member  States'  responses  to  a  dedicated  PCD  2009  questionnaires  prepared  by  the 
European Commission. 

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167 

   EN 

 
 
                                                 
sustainable  energy  policies  more  complex.  Political  dialogue  therefore  with  all  countries, 
developed and developing, will therefore be required.  

In the meantime, EU policies should ensure that local energy needs are met to the maximum 
extent  via  sustainable  energy  sources.  There  are  synergies  between  EU  and  developing 
countries'  policies  which  need  to  be  harnessed  (e.g.  biofuels).  Such  complementarities  will 
contribute  to  better  access  to  sustainable  energy  for  all  partners  while  allowing  important 
climate  changes  targets  to  be  met.  Under  these  conditions,  economic  development  can 
continue  and  should  assist  with  delivering  on  the  dual  goals  of  eradicating  poverty  through 
better access to energy and to keeping climate changes within acceptable parameters. 

Outstanding Issues 

•  Implementation  of  the  energy  policy  priorities  through  the  various  instruments  and 
programmes should continue to aim at increasing developing countries' access to modern 
energy services. 

•  Political  dialogue  with  developing  countries  on  energy  efficiency,  carbon  capture  and 

storage, renewable energy and diversification should be enhanced. 

•  Research  policy  should  assist  developing  countries  in  developing  efficient,  adapted  and 
environmentally friendly technologies, while ensuring that the research results can be acted 
upon. 

•  Low  carbon  technology  transfers  should  be  facilitated  to  allow  developing  countries  to 

catch up with efficient and clean technologies. 

•  Develop  monitoring  mechanisms  at  both  national  and  EU  level  to  measure  impact  on 

developing countries of energy policies in the EU. 

•  In  developing  countries  research  activities  should  be  enhanced  and  better  linked  to  the 
development  policies,  in  order  to  foster  the  development  and  uptake  of  advanced  and 
environmentally friendly technologies, adapted to local conditions. 

•  Development policies and programmes should be geared to enabling developing countries 
willing  to  engage  in  biofuels  use  and  production,  both  for  domestic  and  export  markets, 
while  closely  monitoring  the  effects  on  food  security  and  other  potential  social  and 
environmental consequences. 

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4. 

CASE STUDIES 

Beyond  the  policy  level  which  is  covered  in  the  first  chapters,  the  following  section 
introduces a tentative framework to assess EU policies' impact on MDGs at a methodological 
level:  a  matrix  showing  relevant  interactions  is  proposed  followed  by  a  short  assessment  of 
EU  Security  Policy  impact  on  development.  The  next  two  chapters  present  a  more  detailed 
assessment of impacts on MDG1 (hunger) and MDG 6 (fighting HIV/AIDS). Turning to an 
international  cooperation  instrument,  the  final  chapter  highlights  the  PCD  potential  of  the 
recently approved Joint Africa-EU Strategy. 

This EU initiative to explore the possibility of assessing the impact and results of PCD has to 
be  seen  in  connection  with  the  OECD  work  on  the  elaboration  of  a  new  assessment 
methodology  aiming  at  improving  the  development  dimensions  of  policies  and  exploiting 
potential positive synergies between those policies and development efforts. 

4.1. 

Conceptual and Theoretical Framework 

4.1.1.  The Conceptual Framework 

The EU Research Paper on the ''MDGs at Midpoint: where do we stand and where do we need 
to go?''268 is a starting point for developing a conceptual framework to assess PCD impact in 
developing  countries.  The  approach  stresses  the  importance  of  three  clusters  of  policies, 
namely  the  global  context,  development  assistance,  and  domestic  policy,  that  are  important 
for achieving MDGs.  

While understanding interactions between these three clusters is key to assessing progress on 
MDGs,  the  PCD  focus  is  more  specifically  on  the  interactions  between  the  development 
assistance policies and other policies of the EU as highlighted below (Fig.1)  

268 

Bourguignon, F. (et al.). 2008b. MDGs at Mid-Point: Where do we Stand & Where do we Need to go?, 
http://ec.europa.eu/development/icenter/repository/mdg_paper_final_20080916_en.pdf,  

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Figure 1: Key Policy Interactions and progress on MDGs 

Partner’s policies

MDG/dev
policies

PCD

Non dev 
policies

Progress 
on achieving 
MDGs

Alignment

Global context

Other 
Non-EU/EC 
policies

Other 
EU/EC
policies

Harmonisation

Donor Dev Assist

PCD

EU/EC 
Dev Assist

Non-
EU/EC

Harmonisation

A  further  refinement  to  this  model  structures  the  approach  to  the  case  studies  in  a  way  that 
facilitates  comparison.  Three  broad  determining  factors  for  food  security  and  access  to 
retroviral drugs were identified, as shown in Figure 2. 

•  Availability of food/ medicine; 

•  Access to food/ medicine; 

•  Contextual  factors  such  as  social  conditions  (health  and  education  levels),  institutional 

capacity and governance issues in the sector, natural environment, etc.269 

269 

This approach is inspired by and adapted from the Forum for Food Security in Southern Africa (2004) 

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Figure 2: Key policy interactions for MDG1 (reducing hunger) and MDG 6 (fighting HIV/AIDS) 

Partner’s policies

Availability

Access

Context

PCD

Global context

Case studies: 
Determining factors 
for achieving 
food security/ 
access to drugs

Donor Dev Assist

The  various  factors  influencing  progress  on  the  two  MDGs  considered  in  the  case  studies 
have  different  weights  depending  on  the  local  context.  However,  the  types  of  policies  that 
have an impact on the three determining factors are the same as those in the overall model: 
domestic  and  external  (EU  and  international)  policies,  development  and  non-development 
policies.  

4.1.2.  Understanding the impact of EU policies other than aid 

A framework for assessing PCD- sensitivity in EU policy 

Such a framework should allow for systematic exploration of the effects, positive or negative, 
that  EU  policies  other  than  aid  might  have  on  development,  and  more  specifically  on  the 
achievement of the MDGs. This is at the heart of the impact assessment process which is used 
in EU policymaking270. While very often the emphasis is on the potential negative impact, the 
framework also encourages the identification of possible synergies, potential positive impacts 
on development, in addition to the core sector objective of the policies.  

The application of this framework by policymakers would help make the development case or 
‘MDG-friendly  case’  for  proposed  EU  policies.  This  would  allow  specific  policies  to  open 
more  fully  to  dialogue  with  outside  parties  such  as  development  specialists  or  the  policy 
makers of partner country.  

Identifying potential areas for PCD investigation 

To  be  thorough  in  assessing  PCD  implications  of  EU  policies,  policymakers  can  focus 
specifically  on  the  MDGs,  and  consider  whether  and  how  policies  are  likely  to  affect  the 
partner countries’ ability to achieve each of the first seven MDGs271.  

270 

271 

Impact  assessments  are  used  regularly  as  a  tool  by  planners  in  many  administrations  including  the 
European Commission. 
The  8th  MDG  is  the  Global  Partnership  for  Development  which  relates  to  development  policies 
formulation and implementation and, as such, is not related to PCD. 

EN 

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The first step in such a process is to identify which of the 12 priority areas of policy might 
conceivably  have  an  impact  on  the  country’s  ability  to  achieve  the  MDG  in  question. 
Conceptually the identification of potential effects can be proposed in line with the following 
matrix: 

Table 1: Potential effects of EU policies on developing countries’ efforts to achieve the MDGs272  

 MDGs 

EU policies in 
12 PCD 
priority areas 

Trade 
Environment 
Climate 
Change 
Security 
Agriculture 
Fisheries 
Social 
Dimension  of 
Globalisation 
Migration 
Research 
Information 
Society 
Transport 
Energy 

MDG 1: 
Eradicate 
Extreme 
Poverty & 
Hunger 

MDG 2: 
Achieve 
Universal 
Primary 
Education 

MDG 3: 
Promote 
Gender 
Equality / 
Empower 
Women 

MDG 4: 
Reduce 
Child 
Mortality 

MDG 5: 
Improve 
Maternal 
Health 

XX 
XX 
XX 

XX 
XX 
XX 
X 

X 
X 
I 

I 

I 
X 
X 

XX 
X 
X 
I 

X 
X 
I 

I 
I 

I 
I 

XX 
X 
X 
X 

X 
X 
I 

I 
X 
X 

XX 
X 
I 
I 

I 
X 
I 

X 
X 

XX 
X 
X 
X 

X 
X 
I 

I 
I 

MDG 6: 
Combat 
HIV/AIDS, 
Malaria & 
Other 
Diseases 

XX 

XX 
X 
I 
I 

X 
X 
I 

MDG 7: Ensure 
Environmental 
Sustainability 

X 
XX 
XX 

X 
X 
XX 

I 
X 
I 

X 
X 

The indications in the two columns for MDG1 and MDG6 in this table relate to the analysis 
carried out for the two case studies covered in the following chapters. A rapid review of the 
potential relationships between the MDGs and the 12 PCD priority areas allows us to sketch 
some  additional  indications  in  the  other  five  columns  (MDGs  2-5  and  7):  for  example,  EU 
policy on Climate Change is likely to have some impact on the achievement of all the MDGs 
as climate change affects everyone. EU Information Society policy could potentially improve 
access to information in any sector which can be vital for the achievement of all MDGs, but 
the impact is likely to be less direct or less strong than, for instance, with Security policy. EU 
Migration policy might also encourage the drain of skilled personnel away from developing 
countries  where  they  are  needed  to  achieve  certain  MDGs.  By  way  of  illustration,  EU 
Security  policy  is  further  presented  below  as  an  example  of  how  the  PCD  sensitivity 
framework might work.  

The markings proposed in the matrix are at this stage very crude indications of the relevance 
and strength of the expected inter-linkages. They are based on the 2007 EU report on PCD. 
While  those  indications  need  to  be  thoroughly  reviewed,  through  specific  studies  on  the 
various links proposed, the core of the approach also needs to be further enhanced. Such work 

272 

The  overview  in  this  table  is  based  on  the  representation  of  the  EU  policies  in  the  first  Biennial  EU 
report on PCD (2007). A strong and direct influence on the MDG in question is identified by one or two 
Xs depending on the perceived strength of the potential influence. An “I” indicates that the EU policy 
area probably has an important indirect influence on the required enabling environment for attaining the 
MDG.  In  most  cases  of  “I”,  the  indirect  influence  is  because  the  EU  policy  in  question  affects  a 
country’s perspective for economic development, which in part will affect income-related MDGs.  

EN 

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is  currently  undertaken  in  the  context  of  the  OECD273  and  will  form  the  basis  of  future  EU 
efforts in this field.  

The example of EU Security policy 

European Union policy in the area of security has in the past few years been  guided by the 
European Security Strategy (ESS) of 2003 supplemented by the December 2008 Report on its 
implementation274.  The  policy  thus  outlined  is  essentially  multi-lateral  in  approach,  which 
emphasises  the  need  for  partnerships  and  recognises  that  the  EU  has  a  global  role  in 
contributing to global security and supporting multilateral frameworks such as the UN and the 
OSCE. It underlines the need to tackle global challenges such as energy security and climate 
change and a series of specific threats such as WMD275, terrorism and organised crime. It also 
explicitly  refers  to  the  development  and  security  nexus,  and  quotes  the  2005  European 
Consensus on Development’s reference to the close linkage between the two policy areas and 
recognises the need for coherent approaches.  

The  ESS  takes  into  account  areas  of  specific  importance  for  achieving  some  of  the  MDGs. 
Poverty reduction (MDG1) is a clear concern, as is the empowerment of women (MDG3) and 
public  health  (MDGs  4,  5  &  6)  including  pandemics  such  as  HIV/AIDS  (MDG6).  More 
specific links to child mortality (MDG4) and maternal health (MDG5) are not made, but the 
link  between  these  and  security  does  not  need  spelling  out.  Various  issues  which  relate  to 
environmental  sustainability  (MDG7)  such  as  climate  change,  landmines  and  tensions  over 
water and raw materials extraction are also mentioned. Universal primary education (MDG2) 
is  not  mentioned  specifically,  but  the  impact  of  conflict  on  infrastructure  and  state  fragility 
clearly links through to the provision of education facilities. This quick overview shows that 
PCD elements have been considered in the formulation and reporting of the policy. 

4.1.3.  Limitations of Conceptual Framework  

The difficulty of making strong causal links between EU non-development policies towards 
these countries and their capacities to achieve MDGs is known as the "attribution problem".  

Experience from the field work conducted on the case studies on MDG1 and MDG6 shows 
that it is generally possible to identify the key factors in each of the policy clusters considered 
(global context, development assistance, domestic policy) but that the weight and the relative 
importance of the three clusters in relation to the impact in developing countries is difficult to 
gauge.  This  is  a  methodological  difficulty,  an  element  of  uncertainty,  which  will  remain 
central to PCD assessment in the future276.  

273 
274 

275 
276 

OECD SG/PCD(2009)4, 27.05.2009, Framework & Assessment Methodology for PCD,Draft report 
Council  of  the  European  Union,  11.12.2008,  Report  on  the  Implementation  of  the  European  Security 
Strategy – Providing Security in a Changing World, S407/08 
WMD: Weapons of mass destruction  
Attribution  is a  critical  enabler  of  effective  response  to  incoherencies  and  to  synergies.  Therefore  the 
attribution  problem  must  guide  any  assessment  to  estimate  trends  and  impacts  on  development 
objectives. Several aspects should be considered: the attribution of intended effect (of limited relevance 
as development is, by definition, not the main objective of non-development polices), collateral effects 
(of  high  relevance  as  these  turns  into  damages  or  positive  spill-over)  and  the  temporal  aspects  (time 
horizon of impacts following non-aid policy implementation). 

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The case studies nevertheless provide interesting evidence of the inter-relationships between 
policies.  At  the  same  time  they  point  towards  the  need  for  more  detailed  research  and 
investigation that would help policy makers and programme administrators to formulate and 
implement policies in different areas that are supportive of development. 

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4.2. 

Case Study on MDG 1 (Hunger)  

4.2.1.  Objectives 

In order to attempt to test the linkages between EU policies and MDG1, country case studies 
were  commissioned  early  in  2009  in  Ethiopia,  Mozambique  and  Senegal.  Countries  were 
selected with the aim of covering a variety of food security situations in Sub-Saharan Africa, 
the  region  most  affected  by  hunger277.  Some  effects  of  Agriculture  and  Trade  policies  have 
been  assessed  in  all  three  countries,  as  these  are  key  EU  policies  affecting  –  directly  or 
indirectly - food security in developing countries. On a case by case basis, Climate Change, 
Fisheries and Energy policy areas were also considered278.  

Given  the  limited  sample  of  countries,  the  objective  was  not  to  offer  general  policy 
recommendations279 but to provide some broad illustrations of non-aid policy impact on the 
MDG1 objective. In line with the United Nations approach, MDG1 on Hunger was assessed 
by  the  proportion  of  the  population  whose  food  intake  falls  below  the  minimum  level  of 
dietary  energy  requirements.  Another  indicator  is  the  prevalence  of  underweight  children 
under 5 years  of  age. Both  these elements have been considered in the country case studies 
through interviews conducted in the selected countries with a wide range of stakeholders such 
as  government  officials,  non-governmental  organisations,  donors,  international  institutions, 
private sector representatives, think tanks and universities. 

4.2.2.  Theoretical Framework  

In order to explore causal factors behind the MDG1 target on hunger, the broader UN food 
security  definition  was  used:  ‘food  security,  at  the  individual,  household,  national,  regional 
and  global  levels  [is  achieved]  when  all  people,  at  all  times,  have  physical  and  economic 
access to sufficient, safe and nutritious food to meet their dietary needs and food preferences 
for an active and healthy life'280  

Against  this  background,  a  combination  of  two  theoretical  ´lenses´  on  factors  determining 
access  to  food  has  been  used  for  the  study,  with attention  paid  to  the  interplay  between  the 
policies and activities involving the government at various levels and other key stakeholders 
at international and lower levels, including the private sector. The lenses reflect the two main 
paradigms that currently prevail on global hunger and food security. 

277 

278 

279 

280 

Ethiopia  as  a  landlocked  country  with  a  rather  precarious  natural  environment,  Mozambique  as  an 
overall  MDG  success  story  with  recent  media  attention  on  food  security  and  biofuel  cultivation,  and 
Senegal as a more urbanised country, more economically integrated with the EU. 
These  policy  areas  are  energy/biofuels,  climate  change  in  the  case  of  Ethiopia  and  Mozambique,  and 
fisheries in Senegal. 
Data  sets  that  can  statistically  demonstrate  policy  impacts  on  food  security  conditions  and  the 
prevalence  of  underweight  are  usually  lacking.  From  a  conceptual  point  of  view  the  extrapolation  of 
identified EU policy impacts to national-level impacts in terms of MDG1 achievements is not advisable 
for a number of reasons: (a) the specificity of the illustrated impacts; (b) in-country variations in food 
security dynamics across geographical regions, rural-urban divides, and between socio-economic strata; 
(c) attribution problems related to the multi-factorial nature of food security that is determined by both 
availability, access and utilization of food each with their underlying factors; (d) attribution problems 
related  to  the  co-existence  of  various  policy  frameworks  (domestic  policies,  EU  non-development 
policies, other countries’ non-development policies, and donor development cooperation support); and 
(e) recent changes in the overall global economic context.  
FAO  (1998),  Rome  Declaration  on  World  Food  Security  and  World  Food  Summit  Plan  of  Action. 
http://www.fao.org/wfs/index_en.htm 

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•  The trade-based approach focuses on agriculture and fisheries activities in developed and 
developing  countries.  The  rapidly  increasing  economic  integration  at  regional  and  global 
levels results in much larger impact of market competition, which particularly poses new 
challenges for small-scale producers in developing countries, depending on the degree of 
integration  of  the  countries'  economies.  A  differentiated  approach  is  therefore  necessary, 
taking  into  consideration  the  heterogeneity  of  developing  countries  (Least  Developed 
Countries (LDC), Small Island Developing States (SIDS), landlocked countries, etc). With 
regard  to  MDG1,  for  the  rural  poor  still  stricken  by  hunger  the  progressing  globalisation 
and market integration processes are among the most important context variables.281 

•  The  ‘right  to  food’  approach  focuses  on  small-scale  farmers,  fishermen,  pastoralists  and 
indigenous  people  and  their  access  (‘entitlement’)  to  productive  resources  including 
support  services  from  the  government.  The  approach  extends  to  the  right  of  national 
governments to protect and regulate domestic agricultural production and trade in order to 
achieve sustainable development objectives282. 

The  development  of  functioning  agricultural  markets  (both  national  and  international)  is 
essential.  For  instance,  domestic  production  in  developing  countries  cannot  always  feed  the 
growing demand of large urban populations. Availability of food on the international market, 
and  trading  arrangements  between  consumers  and  suppliers,  are  necessary  to  ensure  that 
developing countries' populations have effective access to affordable food283. 

4.2.3.  EU Agriculture and Trade Policies  

4.2.3.1.  The Common Agricultural Policy (CAP) 

The Common Agricultural Policy (CAP) aims at fair standards of living and income stability 
for the agricultural community in EU countries. Since the early 1990s, a process of reform284 
has taken place in response to a changing European and international context. The 2003 CAP 
Reform285 was a milestone in this process leading to decoupling of direct aid to EU farmers 
from their production levels, in order to create a sustainable farmers’ support system in line 
with  global  market  prices286.  The  2008  CAP  Reform  Health  Check  further  identified 

281 

282 

283 
284 
285 

286 

Vermeulen,  S.,  J.  Woodhill,  F.J.  Proctor  and  R.  Delnoye.  2008.  Chain-wide  learning  for  inclusive 
agrifood market development: a guide to multi-stakeholder processes for linking small-scale producers 
with  modern  markets.  London:  International  Institute  for  Environment  and  Development  and 
Wageningen: University and Research Centre. http://www.cdic.wur.nl/NR/rdonlyres/DFDA8928-9664-
4EF3-A593-C5E3023D3164/66662/00iipublication.pdf 
Windfuhr,  M.  and  J.  Jonsén.  2005.  Food  Sovereignty:  towards  democracy  in  localized  food  systems. 
Heidelberg: FIAN / Rugby: Practical Action Publishing. 
Idem. 
EC, Enlargement, See http://ec.europa.eu/enlargement/the-policy/from-6-to-27-members/index_en.htm.  
EC.  CAP 
See 
http://ec.europa.eu/agriculture/capreform/index_en.htm. 
EC (2006a), Commission Regulation (EC) No 1301/2006, 31.08.2006. The Reform brought significant 
adjustments in market measures (first in the sectors of cereals, dairy and rice, and later on for olive oil, 
cotton and tobacco, sugar, fruit and vegetables and wine); a decoupling of direct payment compatible 
with WTO in the arable crops, beef and dairy sectors by introduction of farm support through the Single 
Payment Scheme (SPS, see http://ec.europa.eu/agriculture/capreform/infosheets/pay_en.pdf for a short 
introduction), and a shift of funds towards the Rural Development Fund, the second pillar of the CAP. 
The  Single  Area  Payment  Scheme  (SAPS)  was  introduced  in  the  new  Member  States  before  the 
introduction of the SPS to facilitate smooth adjustment to the EU because of their specific agricultural 
situation. In 2006, DG AGRI drafted a rolling Action Plan focussing on technical simplification of the 

agriculture. 

sustainable 

perspective 

long-term 

reform 

for 

– 

a 

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adjustments to the CAP in order to simplify and increase the effectiveness of the policy and to 
allow  the  agriculture  sector  to  better  respond  to  current  market  opportunities  and  new 
challenges (See Chapter 1: Agriculture Policy).  

A  number  of  possible  CAP  influences  on  developing  countries,  and  on  African,  Caribbean 
and Pacific (ACP) countries in particular, have been cited287 by academics such as: reduced 
attractiveness  of  EU  market  prices  for  some  key  raw  agricultural  exports  from  ACP 
countries288 such as sugar (as a result of the abolition of most of the EU market intervention 
mechanisms); shifting from trading bulk commodities to marketing of differentiated products 
within specific EU market segments; enhanced price competitiveness of EU exports leading 
to  increased  competition  between  products  imported  from  the  EU  and  ACP  products  at 
national and regional levels. Finally, though not related to CAP as such, a possible impact on 
food security for developing countries is expected from the food- safety standards and related 
procedures  for  control,  imposed  by  national  authorities  or  private-sector  actors,  as  these 
increase  the  compliance  cost  of  introducing  goods  into  the  developed  countries'  markets, 
including the EU. 

In spite of the above, EU policies, the CAP and Trade in particular, have had positive impacts: 
the CAP, and the gain in agricultural productivity in Europe over the last decades, has made 
affordable food available on the world market, allowing net food-importing countries to feed 
their population at a lower cost. Additionally, the EU remains as of today by far the biggest 
trading  partner  of  developing  countries,  with  €59  billion  worth  of   agricultural  products 
imported annually, and with a number of preferential trade regimes in place with a wide range 
of developing countries. The EBA and EPAs will consolidate the EU as the main importer for 
developing countries. 

4.2.3.2.  EU Trade Policy toward ACP Countries 

Since 2001 WTO members289 have been involved in a new round of global trade talks under 
the Doha Development Agenda (DDA). In agriculture, the main focus is tariff liberalisation, 
reduction  of  trade-distorting  support  and  the  eventual  removal  of  export  subsidies.  The  EU 
has  actively  promoted  measures  to  protect  the  interests  of  ACP  countries,  including  better 
trade  rules  for  cotton,  special  treatment  of  small  and  vulnerable  economies,  provisions  on 
preference erosion and Aid for Trade. The EU has substantial offers on the table, including to 
phase out export subsidies for agricultural goods by 2013290, and a complete untying of food 
aid  from  the  agricultural  trade  policies  of  developed  countries.  Any  agreement  reached  at 
WTO level will have an effect on the area of agriculture.  

The Cotonou Agreement, signed in 2000 between the EU and ACP countries, provides for the 
negotiation  of  new  comprehensive  trade  and  development  arrangements  that  offer  a  better 

287 

288 

289 
290 

CAP  Reform  in  order  to  achieve  streamlining  and  greater  cost-effectiveness  without  changing  the 
underlying policies.  
Fautrel  V.  2007.  EPAs  and  CAP  reform:  interactions  and  key  challenges.  Entwicklung  &  ländlicher 
raum, 6: 8-9. http://archiv.rural-development.de/uploads/media/ELR_dt_08-09_01.pdf 
This effect of the CAP is mainly present in markets for cereals, oil seeds, sugar and dairy, but does play 
a small or negligible role on markets for fruits and vegetables, meat, cocoa products and fresh flowers.  
Of the case study countries, Mozambique and Senegal are WTO members but Ethiopia is not. 
Hong  Kong  Ministerial  December  2005  “The  final  declaration  requires  elimination  of  agricultural 
export subsidies by 2013, a date acceptable to the European Union (EU), which accounts for about 90 
percent  of  such  spending.”  (Agreement  Reached  on  Incremental  Advances  in  WTO  Negotiations, 
UNOHRLLS, December 2005). 

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chance of delivering on poverty reduction than the old unilateral tariff preferences. Those did 
not have the expected results in terms of development and poverty issues. These ‘Economic 
Partnership  Agreements’  (EPAs)  comprise  trade-related  rules,  development  co-operation 
aspects, services and WTO-compatible agreements for the asymmetric elimination of barriers 
to trade, i.e. full liberalisation from day one as far as the EU is concerned and less than full 
liberalisation  over  a  10-  to  15-year  period  for  the  ACP  countries.  This  would  lead  to  the 
creation of free-trade areas with and within ACP regions covering essentially all trade. EPAs 
allow ACP countries to exclude certain products provided that 80% of all trade is liberalised 
by  the  end  of  the  transition  period.  ACP  countries  in  the  LDC  category  will  continue  to 
benefit  from  the  Everything  But  Arms  (EBA)  scheme  under  the  Generalised  System  of 
Preferences  (GSP)291,  providing  for  duty-  and  quota-free  access  to  the  EU  market  for  all 
goods  with  the  exception  of  arms  and  ammunition.  The  three  selected  countries  currently 
benefit from EBA arrangements. 

Table 1 - 2007 Trade Statistics for Case Study Countries292 

Main Export commodities to the 
EU 

Main Import commodities 
from the EU 

Ethiopia 

Mozambique 

Senegal 

Coffee (46.7%) 
Hides and skins and leather (14.4%) 
Cut flowers (12.7%) 
Cane sugar (3.9%) 

Base metals (84%), mainly 
aluminium 
Tobacco (9%) 
Fish (4.4%), mainly prawns 

Fish (46%) 
Livestock and vegetable oils (15%), 
mainly groundnuts 
Vegetable products (11%) 

Machinery (41%) 
Chemicals (17%) 

Machinery (38%) 
Metal products (12%) 

Mineral products (33%) 
Machinery (18%) 

Given the trade characteristics (see Table 1) and the Everything But Arms scheme in place for 
all three countries, benefits and/or challenges in the area of food security associated with the 
EPA are thought to be limited in the short term. Indeed as most of the imports into the three 
countries from EU are non-agricultural and exports of agricultural products to the EU already 
benefit from duty-free quota-free access, EPA impact on agricultural goods trading with the 
EU, and therefore on availability and affordability of food products in the three countries, is 
expected to remain limited, at least in the short-medium term.  

291 

292 

The  Generalised  System  of  Preferences  is  an  autonomous  trade  arrangement  through  which  the  EU 
provides non-reciprocal preferential access to the EU market to 176 developing countries and territories, 
See http://ec.europa.eu/trade/issues/global/gsp/pr230708_en.htm  
EC trade statistics, Bilateral trade relations, See http://ec.europa.eu/trade/issues/bilateral/data.htm  

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4.2.4.  Elements from the Country Case Studies 

The  potential  implications  of  the  Agriculture  and  Trade  policies  for  ACP  countries,  as 
hypothesised  in  the  literature  mentioned  above,  are  occurring  to  some  degree  in  the  three 
selected countries.  

Impact  on  sugar:  As  prices  have  declined  due  to  the  CAP  Sugar  Reform  (for  Ethiopia, 
Mozambique),  although  remaining  well  above  world  market  prices,  some  impacts  are 
possible. These are, however, balanced by the opportunities to increase exports provided by 
the  elimination  of  all  quotas  (under  EBA  in  Ethiopia  and  EPA  or  EBA  in  Mozambique293). 
The  potential  for  preference  erosion,  related  to  increased  competition  amongst  developing 
countries,  also  exists  for  tobacco  (EU  tariff  for  third  countries  11-14%)  from  Mozambique 
and for processed vegetable oil (6-13%) from Senegal. For other agricultural export crops in 
Ethiopia  like  coffee  (0%)294,  cut  flowers  (3-5%)  and  hides  and  skins  (0%),  potential 
preference erosion is very limited.  

Shifting  away  from  trading  bulk  commodities  to  marketing  of  differentiated  products  within 
specific EU market segments. This effect is indeed seen in Ethiopia where new markets are 
entered. This is however in response to the government policy focus on stimulation of export-
oriented horticulture (cut flowers and fruits and vegetables), principally for export to the EU. 
Other examples are organic honey production in Ethiopia and citrus in Mozambique. Coffee 
is also a very important sector, with some varieties protected by trademarks as a way to create 
value added. These trends underline the relative openness of the EU market for ACP exports 
and  should  be  seen  in  the  light  of  an  overall  drive  for  product  diversification  by  ACP 
countries in general.  

Enhanced  price  competitiveness  of  EU  exports  and  enhanced  competition  between  EU  and 
ACP products. As the main imports for all three selected countries are non-agricultural (see 
Table  1),  the  effect  at  macro-level  is  not  confirmed  or  is  at  best  limited.  At  micro-level,  in 
Senegal,  where  agricultural  imports  take  place,  the  increased  competition  with  locally 
produced  goods  could  be  seen  as  a  problem.  Some  studies  published  by  NGOs  have 
highlighted case of tomatoes and onions imports from the EU into Senegal which were taking 
away  market  shares  from  local  producers295.  Further  study  would,  however,  be  needed  to 
ascertain  the  overall  impact,  taking  into  consideration  the  competitive  and  comparative 
advantages of producers and the positioning of non-EU exporters to the countries concerned.  

Regarding the increased difficulties of introducing goods into the EU market due to stringent 
food- safety standards and related control procedures the effect is apparent and, based on the 
case studies conducted, the impact on smaller producers is more evident (for example in the 
export of vegetables and fruits from Ethiopia, Mozambique and Senegal, and in the fish and 
crustacean  sector  in  Mozambique  and  Senegal).  This  should,  however,  be  considered  in  the 
context of the multiplication of private standards and changing consumer preferences which 
have  accompanied  the  development  of  EU  food  safety  standards  over  the  past  few  years. 
While  continuing  to  support  developing  countries  in  adapting  to  SPS  standards,  the  EU 

293 

294 
295 

In  the  interim  SADC  EPA  imports  from  Mozambique  into  the  EU  are  duty-free  quota-free  (except 
transitional period for sugar).  
No roasted coffee can be exported to the EU on duty free basis. 
EU onions for instance were considered by local consumers of superior quality. Import ban imposed by 
Senegal during the months of onions production in the country is expected to led to an increase of local 
production 

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policies  could  further  seek  to  co-ordinate  and  influence  private  standard  setting  to  ease  the 
burden on developing countries' producers. In that context, the European Commission issued 
in May 2009 two  Communications  on Fair Trade296  and  on  Agricultural  Product  Quality297, 
which are highly relevant to the issue. 

Box 1: Ethiopia 

Ethiopia exports a range of goods to the EU, which is its main trading partner for agricultural 
export crops. There are no substantial imports of agricultural goods from the EU to Ethiopia. 
Apart from the impact of the EU Sugar Reform in terms of reduced market attractiveness (but 
counterbalanced  by  an  elimination  of  quantitative  restrictions  on  sugar  exports  to  Europe 
under EBA), Ethiopian imports and exports will hardly be influenced by the CAP Reform, in 
the  framework  of  the  EPA,  as  the  main  traded  goods  are  not  much  affected  by  the  new 
changes.  There  are,  however,  openings  offered  by  enhanced  access  to  the  EU  sugar  market 
(see  Box  6  below),  improved  rules  of  origins  under  the  EPAs  for  a  number  of  goods, 
Geographical  Indications298  and  development  tools  etc.  which  should  impact  indirectly, 
through  enhanced  development  opportunities,  on  MDG1  in  the  country.  Certain  pro-poor 
effects may contribute to MDG1 achievement, in particular through competitive agricultural 
export  production  in  rural  areas  (e.g.  employment  generation  through  expansion  of 
horticulture). 

Ethiopia  has  applied  for  WTO  membership  and participates in the  EPA negotiations. Based 
on the field visit commissioned to the country the EPA short-term benefits to Ethiopia relating 
to trade in agricultural goods are rated as being limited and with negligible direct impacts on 
MDG-1 achievement. Ethiopia indeed already has its duty- and quota-free access to the EU 
market  under  EBA  (although  with  less  beneficial  rules  of  origin  than  in  EPA  and  no 
contractual obligations on the EU side).  

Box 2: Mozambique 

The negative short-term impact on revenues due to the EU Sugar Reform and reduced sugar 
prices would be counterbalanced by the unlimited market access for Mozambican sugar to the 
EU  under  EPA  combined  with  the  substantial  market  potential  for  bioethanol  produced  in 
Mozambique299. 

Overall, the CAP Reform has limited impact on MDG-1 achievement in Mozambique as there 
is  relatively  little  trade  integration  for  agricultural  products  between  the  EU  and 
Mozambique300.  This  could  rapidly  change  however  when  the  plans  for  expansion  of 

296 

297 
298 

299 

300 

COM(2009) 215 final, 5.5.2009, "Contributing to Sustainable Development: The role of Fair Trade and 
nongovernmental trade-related sustainability assurance schemes"  
COM(2009) 234 final, 28.5.2009, "Communication on agricultural product quality policy" 
The EU-CARIFORUM EPA for example already includes a chapter on Geographical Indications (GI) 
protection  that  established  mutual  recognition  of  national  system  of  GI  protection  and  assures 
coexistence of GIs and trademarks, where appropriate.  
In  the  SADC  EPA  context,  Mozambique  also  received  an  additional  allocation  of  20  000  tonnes. 
Mozambique  is  a  low  cost  sugar  producer.  Its  sugar  exports  to  the  EU  have  already  significantly 
increased  these  last  years  and  are  expected  to  further  increase  after  the  full  liberalisation  of  the  EU 
market access as from October 2009 
Only  for  tobacco  and  shrimps  there  are  significant  volumes  of  import  from  Mozambique  to  the  EU. 
However,  tobacco  is  less  relevant  for  assessing  the  impact  of  the  CAP  Reform  since  trading 
opportunities  are  first  of  all  influenced  by  current  EU  health  enhancement  policies  for  reduction  of 

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agricultural production in Mozambique take off and the country turns into a net- exporter of 
food commodities. Although Mozambique could be affected by some preference erosion as a 
result  of  changing  trade  agreements  with  a  number  of  partners  as  well  as  other  countries 
having  attained  improved  trade  agreements  with  lower  or  zero  tariff  access  to  the  EU,  thus 
diminishing  the  comparative  advantage  of  the  EPA  status,  there  could  be  good  marketing 
potential  on  the  EU  market  for  oil  seeds  and  horticultural  crops301  (like  vegetables,  tropical 
fruits and citrus). The overall effect of expansion of agricultural production in Mozambique 
on  MDG-1  is  expected  to  be  positive  due  to  jobs  and  income  creation  effects  in  the  export 
production sector for attractive EU market segments (e.g. biofuels), particularly in poor rural 
areas  where  poverty  is  concentrated  (e.g.  employment  and  poverty  reduction  through  out 
grower schemes for biofuels).  

Mozambique is an LDC and already benefits from free access to the EU under EBA but, in 
recognition of the wider opportunities, it signed, in June 2009, an interim EPA302. Within the 
SADC  EPA  group  it  is  negotiating  towards  a  full  EPA.  Potential  impacts  of  trade 
liberalisation on food security (and thus MDG-1 achievement) in Mozambique are expected 
to  be  positive:  losses  in  customs  revenue  are  expected  to  have  a  negative  impact  but  these 
effects are expected to be compensated by consumer surplus generated through lower prices 
of  imports.  Given  that  Mozambique  mostly  trades  with  its  regional  partners,  competitive 
pressure is expected to increase through tariff liberalisation within SADC. Indeed, based on 
the  case  study  conducted  in  the  country,  it  is  expected  that  imports  from  South  Africa  will 
increase. The regional EPA, however, is not expected to lead to real changes with regard to 
EU imports.  

Box 3: Senegal 

Senegal  is  highly  dependent  on  food  imports  and  a  number  of  European  products  are 
prominent  on  the  market.  Examples  of  these  include  onions,  potatoes  and  dairy  products 
which are all, to a greater or lesser extent, in competition with local products thus requiring 
local  producers  to  adapt.  There  are  considerable  agricultural  exports  to  Europe  (groundnuts 
and groundnut oil, fruits and vegetables), but apart from some producers, for instance in the 
horticulture  sector,  who  have  been  able  to  organise  themselves  to  meet  EU  standards, 
compliance  with  quality  and  traceability  norms  is  problematic.  Producers  are  therefore 
vulnerable  to  European  competition  and  generally  not  well  placed  to  take  advantage  of 
openings  in  European  markets.  EU  food  safety  and  food  quality  matters  therefore  have  an 
impact  on  agricultural  livelihoods  and  on  the  country  achieving  MDG1.  Some  producers, 
however, have been able to take advantage of European market opportunities by adapting to 
EU standards and using these as an opportunity to add value to their products and enter new 
markets.  

smoking. Shrimps exports to the EU are regulated by the Common Fisheries Programme (CFP) and the 
Fisheries Partnership Agreement and could have been an interesting topic within the Mozambique case 
study but this was not studied due to time constraints.  
There are stringent SPS and other non-tariff barriers for trade in horticultural crops (e.g. the need for 
certification of the whole value chain).  
This also applies to a number of other LDCs in Africa. In fact nearly half of the African countries that 
initialled an EPA arrangement are LDC.  

301 

302 

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Senegal,  together  with  its  ECOWAS  partner  countries  is  in  the  process  of  negotiating  a 
comprehensive EPA with the EU303. Short-term trade benefits for the country are expected to 
be limited, given that it already benefits from EBA, but a positive impact would emanate from 
the accompanying regionalisation, enhanced trade-related rules and policy reform (the country 
currently has high tariff protection in place).  

4.2.5. 

Impact of EU Fisheries, Climate Change, Energy Policies on MDG1.  

4.2.5.1.  Fisheries 

Since 2002, the aim of the Common Fisheries Policy (CFP) has been to promote sustainable 
development  of  maritime  activities  as  well  as  the  sustainable  exploitation  of  fisheries 
resources within and beyond Community waters304. Two main strategies are: (a) coordination 
in order to ensure synergy between the maritime policy and other EU policy areas; and (b) the 
development of cross-cutting policy tools. A key component of the CFP is the use of bilateral 
fisheries agreements between the European Community and third countries. These agreements 
help  the  European  industry  to  count  on  a  substantial  additional  supply  of  fish,  and  provide 
employment in Europe and the partner countries.  

A number of shortcomings have been pointed out305 indicating that agreements were drawn up 
with considerations more focused on fish than on development, with little formal opportunity 
for  input  from  ACP  countries.  In  addition  PCD  in  bilateral  agreements  could  be  rendered 
ineffective if other bilateral partnerships on fisheries are not sufficiently taken into account.  

Box 4: Senegal 

From  1979  to  2006  the  EU  had  fisheries  agreements  with  Senegal.  These  agreements  were 
widely seen by civil society actors as simply serving the needs of the EU, by giving its fishing 
boats access to fish in already depleted waters even though by the end of the period covered, 
EU fishing boats' catches amounted to only about 2-3% of total catches in Senegalese waters. 
The agreements did, however, provide some financial compensation which was at least partly 
used  by  the  government  to  finance  fisheries  protection  measures.  With  the  decline  in  EU 
fishing in Senegalese waters and the expiry of the last protocol to the agreement this financial 
support stopped and the Ministry is now even more under-resourced than before and poorly 
placed to regulate fishing and protect fish resources in Senegalese waters.  

In 2006, the two parties did not reach an agreement to renegotiate the protocol which could 
have helped to tackle the serious fisheries problems Senegal is faced with. These are due in 
particular to over-fishing and illegal fishing in Senegalese waters by boats from all over the 
world  and  also  by  an  estimated  10  000  to  15  000  Senegalese  motorised  wooden  canoes 
(pirogues)  that  according  to  the  Ministry's  data,  account  for  80%  to  90%  of  the  national 

303 

304 

305 

At a regional workshop in February 2009, a road map was agreed for elaboration of programmes in line 
with  the  West  African  Community  Development  Programme  and  the  EPA  Development  Programme 
The current discussion is mainly on the EPA Development Programme, but also on substantive issues 
like  the  non-execution  clause,  export  subsidies,  rules  of  origin,  and  technical  barriers  to  trade.  See: 
http://www.acp-eu-trade.org/library/files/TNI_EN_8-2.pdf, p. 13. 
European  Commission,  The  mission  of  the  Directorate  General  for  Maritime  Affairs  and  Fisheries 
,19.01.2009, See http://ec.europa.eu/dgs/fisheries/mission_en.htm  
Egenhofer, C. (et al.). 2006. Policy Coherence for Development in the EU Council, Strategies for the 
Way Forward. Brussels: Centre for European Studies.  

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catches. This situation illustrates why, in 2008, the EU adopted a new regulation306 aimed at 
preventing, and eliminating illegal, unreported and unregulated fishing giving Member States 
the right to refuse imports of fisheries products without catch certificate. The regulation will 
enter into force in 2010.  

There  are  therefore  possible  synergies  between  the  EU’s  fisheries  policy  and  Senegal’s 
fisheries  sector,  which  needs  to  ensure  sustainable  exploitation  of  Senegal  marine  resources 
for  the  benefit  of  its  people.  The  sector  is  important  in  the  economy  and  sustains  many 
livelihoods  with  employment  for  both  men  in  fishing  and  women  in  processing  and 
marketing.  Fish  is  also  an  important  source  of  protein  in  the  Senegalese  diet  so  while 
European  markets  do  offer  opportunities  for  the  sector,  it  is  also  important  that  consistent 
measures are taken to ensure that enough fish stays on the Senegalese market. While there are 
no clear indications yet that MDG1 is affected, there is a lack of fish on the home market to 
satisfy domestic needs. Unless responsible and sustainable management of the fisheries sector 
is  ensured,  Senegalese  households  will  have  to  change  the  types  of  fish  they  eat  as  certain 
fish, traditionally part of the national diet, are now being almost entirely exported. 

4.2.5.2.  Climate Change 

The  EU  is  leading  by  example  (in  particular  with  the  adoption  of  the  Climate  Change  and 
Energy Package in December 2008) in the global fight against climate change and is a firm 
supporter  of  the  Kyoto  Protocol.  In  this  context,  the  field  study  paid  attention  to  the  Clean 
Development  Mechanism  (CDM),  an  arrangement  under  the  Kyoto  Protocol  which  allows 
industrialised  signatory  countries  to  invest  in  projects  that  reduce  emissions  in  developing 
countries  (where  such  reductions  generally  can  be  achieved  at  a  lower  cost).  This  has  been 
supported by the EU since its inception and efforts should continue to make the scheme more 
accessible to a wide range of developing countries. 

The  CDM  has  the  potential  to  engage  African  countries  in  the  global  solution  to  climate 
change in a way that can benefit economic development. However, a paltry 2% of all Carbon 
Emission Reductions (CERs) or carbon credits within the CDM have been achieved in Africa 
due  to  limited  capacity  to  take  advantage  of  the  scheme  and  low  awareness307.  Approval  of 
CDM projects requires establishing baselines (e.g. in the energy sector, transport sector, etc.), 
markets  and  market  studies,  finance  and  finance  plans,  imported  equipment  and  import 
licences308  etc.,  activities  that  lie  outside  of  the  expertise  and  comfort  zone  of  Ministries  of 
Environment. A new open-ended World Bank - European Investment Bank (EIB) initiative, 
the Carbon Fund for Europe (CFE), aims to make it easier for African countries to participate 
in the CDM by purchasing carbon credits from  projects  eligible  under the Kyoto Protocol’s 
CDM. It is also able to guarantee funding after the expiry of the Kyoto Protocol in 2012 up to 

306 
307 

308 

Council Regulation (EC) No 1005/2008, 29.10.2008 
The  current  CDM  project  pipeline  consists  of  over  4200  projects  of  which  1530  projects  have  been 
registered  and  43  are  currently  requesting  registration.  Of  these  1530  registered  projects,  the  big 
majority (1081 projects) is in Asia and the Pacific, while Africa has only 29 registered projects (50% of 
which are in South Africa). See http://cdm.unfccc.int/Statistics/index.html  
An issue of current debate is whether an exception can be made for LDCs with regard to the EU import 
thresholds for CERs (in analogy to Lomé trade preferences).  

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40% of the total fund. Various EU Member States are also investing in other Carbon Funds 
for developing countries administered by the World Bank309. 

Box 5: Ethiopia and Mozambique 

Studies  show  that  Ethiopia  is  one  of  the  countries  most  vulnerable  to  climate  change  in 
Africa310. Ethiopia’s CDM project submissions so far have not been successful. In 2008, three 
project notes were prepared for submission to the CDM for biomass energy production from 
cotton  stock  and  castor  husk,  a  landfill  gas  combustion  and  generation  scheme  for  a  solid 
waste site, and improved stoves across the country311. The projects will have the potential to 
positively  impact  on  food  security  and  MDG-1  achievement,  especially  if  linked  to  out-
grower schemes or non-farm employment creation. As an example Spain supports the Humbo 
Assisted  Natural  Regeneration  Project,  in  South  Western  Ethiopia,  with  creation  of  farmer-
managed carbon sinks that also support biodiversity goals.  

Like most African countries, Mozambique was found not to have the capacity to attract CDM 
projects.  There  have  been  unsuccessful  attempts  to  enter  the  scheme  in  the  context  of  the 
SASOL natural gas pipeline but "additionality" could not be demonstrated and there was no 
baseline  for  carbon  reduction  estimates.  There  are  opportunities  in  Mozambique  to  benefit 
from the CDM, in the area of biofuels or in “cleaning” the plants to process the immense coal 
resources  of  the  country.  Forest  conservation  and  avoidance  of  deforestation  are  also  areas 
with high potential, although the activity is currently excluded from CDM funding. In order to 
enable  the  Government  to  take  advantage  of  such  opportunities,  donors  have  identified 
capacity development of  the Government as a key area of support in the environment field, 
including  the  capacity  to  design  a  comprehensive  climate  change  strategy,  to  attract  CDM 
projects, and to formulate positions in international fora312. Mozambique is a pilot country for 
the  EU’s  Global  Climate  Change  Alliance  (GCCA)  with  developing  countries,  a  core 
component of the Africa-EU Joint Strategy’s Partnership on Energy/ Climate Change. 

4.2.5.3.  Energy 

The  2009  Renewable  Energy  Directive  confirms  the  EU's  commitment  to  promoting 
renewable energy. The EU is to obtain 20% of its  energy  needs from  renewable sources by 
2020, and to ensure that 10% of transport fuels come from renewable sources. 

The ambitious 2006 EU Strategy for Biofuels313 aims notably to promote biofuels in both the 
EU and developing countries and to support developing countries where biofuels production 

309 

310 

311 

312 

313 

E.g,  the  Community  Development  Carbon  Fund  (a.o.  supported  by  Spain,  Belgium,  Luxembourg, 
Netherlands, Italy and Austria), the Bio Carbon Fund Tranche 1 (a.o. supported by Spain), the Danish 
Carbon Fund, Spanish Carbon Fund, Italian Carbon Fund, and Netherlands CDM Facility.  
Yesuf M, S Di Falco, T Deressa, C Ringler, and G Kohlin. 2008. How can African Agriculture Adapt to 
Climate  Change?  Insights  from  Ethiopia  and  South  Africa.  "The  Impact  of  Climate  Change  and 
Adaptation  on  Food  Production  in  Low-Income  Countries".  Evidence  from  the  Nile  Basin,  Ethiopia. 
IFPRI Research Brief 15-11. See www.ifpri.org/pubs/ib/rb15/rb15_11.pdf. 
Among other things improved stoves have gender-specific benefits both in terms of women’s health due 
to cleaner emissions and in freeing up their time from firewood collection 
The  UK  is  funding  a  TA  to  the  Ministry  of  Environment;  Mozambique  is  a  pilot  country  under  the 
World  Bank’s  Pilot  Programme  for  Climate  Resilience  (PPCR)  which  includes  activities  on  CDM; 
UNDP has recently presented a new adaptation initiative for Mozambique;  
COM(2006) 34 final, 08.01.2006. See: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:52006DC0034:ES:HTML  

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can  stimulate  sustainable  economic  growth314.  The  need  for  continuous  monitoring  of  the 
impacts of sustainable biofuels promotion is identified, as a balance has to be struck between 
food provision and energy needs. The 2009 Renewable Energy Directive addresses this issue 
(See also Chapter 12 Energy Policy). 

Growing EU demand for biofuels can provide new opportunities for the production and export 
of  biofuels  and  agricultural  feed  stocks.  The  combination  of  overall  stimulus  to  agricultural 
production and expanding domestic and export markets for biofuels, can provide significant 
benefits  for  countries  (substantial  agricultural  production;  energy  security  at  national  level; 
development  and  poverty  reduction  in  rural  areas;  improvements  in  the  national  macro-
economic  situation  through  reduced  oil  import  bills  and  raised  foreign  exchange  earnings). 
However, it is also important to recognise that there can be conflicting interests, both among 
countries (net agricultural exporters vs. importers) and among population groups (agricultural 
producers vs. consumers; large-scale commercial producers vs. subsistence farmers, etc.). 

Box 6: Ethiopia and Mozambique 

Ethiopia encourages biofuels production primarily to meet its growing domestic demand315. In 
relation to the "food versus fuel" debate, a central component of the Biofuels Strategy is the 
restriction  whereby  only  marginal  lands  are  allocated  to  biodiesel  production  so  as  to  avoid 
crowding out of food production. The Government wants to develop Jatropha, castor crop and 
palm tree production for biodiesel (first for import substitution, later on also for export to the 
EU market), while the first two crops can also be cultivated through out-grower schemes. The 
by-products are planned to be used for fertilizer and energy production. A recent simulation 
study on Jatropha production in Ethiopia indicated that the decline in agricultural production 
of food crops will be limited. A specific study indicates that Ethiopia's biodiesel production is 
expected to have a limited effect on household food consumption levels, and as such will not 
affect MDG-1 achievements316.  

The main drivers of biofuels production in Mozambique are the external markets, particularly 
the EU but also the emerging Southern African market for biomass for electricity generation 
and  bio-ethanol  production.  In  early  2008,  Mozambique  started  a  campaign  to  mobilise 
people to engage in plantation of Jatropha for further processing into biodiesel. This led to a 
flocking of interested investors that recognised the country’s potential linked in particular to 
ample land being available to expand production. The production of bioethanol and biodiesel 
is  believed  to  have  great  potential  to  contribute  to  poverty  alleviation  (MDG1)  in 
Mozambique  if  environmental  and  social  sustainability  criteria  are  sufficiently  taken  into 
account. This will happen if local stakeholders in sugar-growing areas (including out grower 
smallholders  who  produce  for  the  refinery  plant  and  the  labourers  on  the  large  sugar 
plantations)  have  opportunities  to  engage  in  biofuels  cultivation,  if  food  security  conditions 

314 

315 
316 

) 

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Among others, through a Biofuels Assistance Package for developing countries and through assistance 
to ACP countries that are affected by the EU sugar reform for development of bioethanol production.  
See e.g.: http://www.unep.org/urban_environment/PDFs/Meskir.pdf  
Lashitew  AA  (2008),  Competition  between  Food  and  Biofuel  Production  in  Ethiopia:  A  Partial 
Equilibrium Analysis. MSc Thesis, Wageningen University, March 2008,  

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are not negatively affected and if marginalisation of local communities is avoided when lands 
are converted into commercial biofuels plantations317. 

4.2.6.  Conclusions  

Elements  gathered  from  the  field  studies  confirm  that  depending  on  the  country’s 
characteristics, a set of positive and negative welfare impacts can and may occur in relation to 
the CAP Reform and Trade. 

•  EU market preferential margins for some agricultural bulk commodities have been reduced 
although this is counterbalanced by the unlimited market access provided for under EBA 
(and EPA). In this context, there may be certain pro-poor effects which will conceivably 
contribute  to  MDG1  achievement,  in  particular  through  competitive  agricultural  export 
production  for  attractive  EU  market  segments  from  countries  like  Mozambique  and 
Ethiopia. 

•  The three countries can increase price competitiveness of their domestic production and/or 
shift  to  more  differentiated  products  with  higher  value-  added.  Synergy  exists  between 
domestic  policies  favouring  diversification  and  the  expected  CAP  impact  on  agricultural 
trade  (from  trading  bulk  commodities  to  marketing  of  differentiated  products  within 
specific EU market segments). 

•  Adaptation  of  developing  countries  to  food-  safety  standards  and  related  procedures  for 
control  has  allowed  strong  business  development  in  specific  cases  (horticulture  in 
Ethiopia).  These  are  however  not  only  related  to  EU  food  safety  matters  as  demanding 
measures are also imposed more and more by the private sector (e.g. supermarket chains). 
However, small producers, the vast majority of producers in developing countries, may be 
excluded  from  new  market  opportunities  to  the  extent  that  they  are  less  able  to  adapt  to 
required  standards  (e.g.  flowers  in  Senegal).  This  will  require  greater  efforts  by  the 
countries concerned and the donor community to bring these producers on board. Progress 
in  poverty  reduction  may  be  limited  if  market  conditions  only  allows  medium  to  large 
firms  to  remain  on  the  market.  Aid-for-Trade  interventions  already  help  countries  to 
address this issue. 

For  other  relevant  EU  policy  areas  in  relation  to  food  security  in  ACP  countries,  the  case 
studies have highlighted the following (potential) impacts: 

•  With  no  fisheries  agreement  in  place  between  the  EU  and  Senegal,  the  impact  is  mainly 
through the high market demand for fish. There is potential for synergies between an EU 
Fisheries  Partnership  Agreement  and  the  Senegal  fisheries  policy,  which  needs  to  be 
reinforced and supported. 

•  Mozambique  and  Ethiopia  have  not  been  very  successful  in  attracting  investments  based 
on  the  CDM.  The  Carbon  Fund  for  Europe  (CFE)  aims  to  support  better  use  of  the 
potential  of  African  countries  in  CDM  and  should  allow  synergies  to  be  developed 
between  EU  priorities  and  development  needs  in  both  countries.  In  principle,  attracting 

317 

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Eastern and Southern Africa Regional Workshop on Bio-fuels, "Bio-fuels in Ethiopia", Meskir Tesfaye 
Asfaw, 
Kenya. 
http://www.wwf.se/source.php/1203702/Mozambique_biofuel_report_June2008_Bio_fuels_draft.pdf  

28-29.06.2007, 

Nairobi, 

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CDM  funds  or  (EU-financed)  Carbon  Funds  is  expected  to  have  a  positive  impact  on 
MDG1 hunger target achievements, especially if linked to outgrower schemes or non-farm 
employment generation. 

•  Biofuels are currently nearly entirely produced from crops that can also be used for food 
purposes,  which  may  threaten  the  availability  of  food  at  affordable  prices  in  developing 
countries. The Renewable Energy Directive's monitoring and reporting requirements limit 
any  negative  effects  on  food  security  and  access  to  food  in  developing  countries. 
Mozambique and Ethiopia are both scaling up biofuels production, with expected positive 
impacts  on  poverty  reduction  in  Mozambique  and  a  negligible  effect  on  MDG1 
achievement in Ethiopia. 

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4.3. 

Case study on MDG 6 

4.3.1.  Access to HIV treatment is still a problem  

HIV/AIDS  continues  to  be  a  major  problem  in  many  developing  countries.  In  2007  an 
estimated 33 million were living with HIV worldwide, illustrating the vastness of the problem 
and  the  need  to  combat  HIV/AIDS.  Every  day  around  7  500  people  are  still  becoming 
infected  with  HIV  and  5  500  die  from  AIDS,  mostly  due  to  a  lack  of  HIV  prevention  and 
treatment services.318  

The scale of the problem was recognised when the fight against AIDS was identified as one of 
the Millennium Development Goals (MDGs). Target 2 of MDG 6 seeks to achieve, by 2010, 
universal access to treatment for HIV/AIDS for all those who need it. 

Some  progress  has  been  made  towards  this  target.  Antiretroviral  (ARV)  treatment  services 
were expanded and the number of people who die from AIDS has started to decline, from 2.2 
million in 2005 to 2 million in 2007.  

Despite  the  progress  that  has  been  made  towards  achieving  MDG  6,  the  HIV  prevalence 
figures are still alarming and there is a pressing need for a comprehensive response to provide 
all patients with the treatment needed. Ensuring a constant and reliable supply of medicines 
for  all  patients  on  ARV  treatment  is  important,  too,  for  another  reason:  an  interruption  in 
treatment of only one month could already lead to the HIV virus developing resistance to the 
drug  combination  used.  Hence,  developing  countries  require  a  stable  and  timely  supply  of 
ARVs at the lowest possible price.  

318 

The Millennium Development Goals Report 2008, United Nations, p. 28,29 

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319 

4.3.2.  Access to essential drugs in general and AIDS/HIV treatment/drugs in particular 

ARVs are part of essential medicines. The adoption of the concept of essential medicines in 
1977 introduced the field of pharmaceuticals to new principles of equity, cost-effectiveness, 
good  governance  and  attention  to  the  needs  of  the  poor  and  disadvantaged.  Essential 
medicines  have  been  defined  by  the  World  Health  Organisation  (WHO)  as  those  medicines 
that satisfy the priority health care needs of the population. They are selected with due regard 
to  public  health  relevance,  evidence  on  efficacy  and  safety,  and  comparative  cost-
effectiveness.  Essential  medicines  are  intended  to  be  available  within  the  context  of 
functioning health systems at all times in adequate amounts, in the appropriate dosage forms, 
with  assured  quality  and  adequate  information,  and  at  a  price  the  individual  and  the 
community can afford.320 

319 
320 

The Millennium Development Goals Report 2008, United Nations, p.29 
World Health Organization, See http://www.who.int/medicines/services/essmedicines_def/en/ 

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Access  to  essential  medicines,  including  ARV  treatment,  is  influenced  by  a  number  of 
factors:321  

- Political will of governments, producers and patients; 
- Availability of the right drugs of ensured quality, at the right place, at the right time, in the 
right quantities; 
- Affordability (financing, pricing); 
- Appropriateness (fixed dose combination, dosage form, storage conditions, etc); 
- Rational prescribing (therapeutic guidelines); 
- Rational use and adherence by patients; 
- Intellectual Property Rights (patents, copyrights, trademarks etc.). 

In order to explore possible  action to improve access, WHO’s essential medicines approach 
identifies four factors.  

Practical implications of the access framework

Access

1. Rational
selection

3. Sustainable
financing

ACCESS TO

ESSENTIAL MEDICINES

2. Affordable
prices

4. Reliable
systems

5

Essential Medicines and Pharmaceutical Policies

Rational  selection  at  national  level  is  needed  to  focus  on  a  basic  package  that  covers  the 
priority  healthcare  needs  of  the  population.  If  selection  criteria  like  efficacy,  safety  and 
comparative cost-effectiveness are used, considerable savings on pharmaceutical expenditure 
can be made while equitable access to essential medicines can be assured. Tools like essential 
medicine lists and evidence-based treatment guidelines are still absent or not updated in many 
developing countries.  

Medicines  are  the  largest  health  expense  for  poorer  households  and  are  the  second  largest 
public health expenditure in developing countries after human resources. Affordable prices 
are therefore a key issue.  

Reliable  access  to  medicines  cannot  be  based  on  individual  out-of-pocket  payments,  hence 
health  insurance  or  social  security  systems  are  needed  to  provide  sustainable  financing. 

321 

Barriers to Access and how to remove them, presentation by Dr Hans Hogerzeil, WHO, 2008, on which 
much of this paragraph is based 

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Donations (public or private, domestic or external) and out-of-pocket payments can only  be 
acceptable as temporary measures. 

Even  when  rationally  selected  and  low-priced  essential  medicines  are  available,  it  is  the 
health-care system that determines whether the client will benefit from them as the quality of 
medicines,  diagnosis,  treatment,  dispensing  and  patient  adherence  all  need  to  be  optimal. 
Patient  adherence  to  treatment  is  crucial  not  only  for  the  patient’s  cure  but  also  for  public 
health reasons. This is particularly true in the case of AIDS treatment, where non- adherence 
can quickly result in deterioration of the patient’s condition and the development of resistance 
to the medicine. 

4.3.3.  The impact of EU policies on access to HIV/AIDS treatment 

The  policies  determining  access  to  HIV/AIDS  treatment  are  developing  countries'  own 
policies,  development  cooperation,  the  broader  EU  policies  and  the  global  context.  Starting 
from  the  assumption  that  amongst  the  EU  policies,  trade  policy,  and  in  particular  Trade 
Related  Aspects  of  International  Property  Rights  (TRIPS),  research  and  migration  policies 
had most impact on the achievement of MDG 6, the study focused on these three policy areas. 
In an effort to identify concrete results in developing countries, field visits were undertaken in 
Tanzania, Zambia and Rwanda. 

4.3.3.1.  The role of TRIPS in ensuring access to HIV/AIDS drugs 

Most of the poorer developing countries do not have manufacturing capacity to produce drugs 
needed  to  fight  HIV/AIDS.  They  rely  heavily  on  import  of  general  medicines  for  ensuring 
access to ARVs. But even when countries have the manufacturing capacity to produce ARVs 
they  can  only  proceed  to  produce  those  drugs  under  certain  conditions.  Access  to  ARVs 
therefore  becomes  dependent  to  a  large  extent  on  trade  policies  on  access  to  essential 
medicines,  and  in  particular  the  WTO  agreement  on  Trade  Related  Aspects  of  Intellectual 
Property Rights (TRIPS).  

•  TRIPS provisions for issuing licences for producing and trading essential medicines… 

Intellectual property rights are the rights given to persons over the creations of their minds. 
They usually give the creator an exclusive right over the use of his/her creation for a certain 
period of time. New innovations such as drugs can be protected through patents. Patents give 
the  inventor  or  owner  of  the  idea  the  exclusive  right  to  certain  benefits  deriving  from  their 
original  idea.  A  patent  can  guarantee  a  20-year  period  of  monopoly,  which  allows  a 
manufacturer to recoup the incurred research and development costs and derive profits from 
the investments made. 

The  social  purpose  of  intellectual  property  rights  is  to  provide  protection  for  the  results  of 
investment  in  the  development  of  new  technology,  thus  giving  the  incentive  and  means  to 
finance  research  and  development  activities.  A  functioning  intellectual  property  regime 
should also facilitate the transfer of technology in the form of foreign direct investment, joint 
ventures  and  licensing.  The  exclusive  rights  given  are  generally  subject  to  a  number  of 
limitations and exceptions, aimed at fine-tuning the balance that has to be found between the 
legitimate interests of right holders and of users.  

The  entry  into  force  of  the  TRIPS  Agreement  in  1995  marked  the  emergence  of  political 
debates  on  the  impact  of  intellectual  property  rights  on  development,  focussing  on  the 
possible social costs that enforcement of IPR regimes may have for the developing world. The 

EN 

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main  focus  of  this  controversy  has  been  the  impact  of  patent  protection  on  the  price  of 
medicines.  From  the  outset,  the  EU  has  been  at  the  forefront  of  the  debate  on  TRIPS  and 
access to medicines.  

The  discussion  in  the  WTO  first  led  to  the  adoption  of  the  Declaration  on  the  TRIPS 
Agreement  and  Public  Health  at  the  Doha  Ministerial  Conference  of  November  2001.  The 
Declaration  clarifies  the  relationship  between  TRIPS  and  public  health  policies  of  WTO 
members  and  rebalances  its  interpretation.  This  Declaration  facilitates  access  to  affordable 
medicines  for  developing  countries  by  reaffirming  the  rights  of  developing  countries  to  use 
so-called  TRIPS  ‘flexibilities’ (or  ‘public  health  safeguards’  as  the  WHO  calls  them)  in  the 
interest of public health.322  

The  most  significant  and  known  flexibility  available  under  the  TRIPS  and  the  Doha 
Declaration  is  compulsory  licensing.  A  compulsory  licence  is  an  authorisation  granted  by 
government  to  an  economic  operator  to  use  a  patent  protected  technology,  without 
authorisation  of  the  right  holder.  This  allows  developing  countries  with  manufacturing 
capacities  in  the  pharmaceutical  sector  to  produce  medicines  under  compulsory  licensing 
under the conditions set by TRIPS. 

The 30 August Decision which takes the form of a provisional “waiver” temporarily solved an 
outstanding  issue  of  the  2001  Doha  Declaration;  allowing  for  WTO  members  to  export 
patented  medicines  to  third  countries  with  no  manufacturing  capacity  in  the  pharmaceutical 
sector,  by  making  use  of  compulsory  licences.  On  6  December  2005,  the  WTO  General 
Council  submitted  an  amendment  to  the  TRIPS  Agreement  to  the  WTO  members  for 
acceptance. This amendment would make permanent the waiver decision.  

While from 2005 all developing countries will have to comply with TRIPS, Least Developed 
Countries  (LDCs)  are  not  obliged  to  implement  pharmaceutical-related  TRIPS  provisions 
until  2016  and  can  therefore  get  medicines  without  paying  any  royalty  to  patent  holders. 
LDCs  which  have  implemented  TRIPS,  can  use  the  inbuilt  flexibilities  to  get  medicines  at 
affordable prices. For example, they can produce medicines under compulsory licensing under 
the conditions set by TRIPS and for those LDCs which have no manufacturing capacity in the 
pharmaceutical  sector,  can  import  generic  medicines  under  compulsory  licence  as  provided 
for in the WTO waiver decision of 30 August 2003.  

The importance of these flexibilities will continue to grow. Currently many people living with 
HIV/Aids  in  developing  countries  are  using  such  ARVs,  which  is  commonly  referred  to  as 
‘first-line treatment’. Antiretroviral drugs that were patented before 1995 are not covered by 
the  TRIPS  agreement,  and  will  remain  available  as  generics  if  national  patent  legislation  in 
developing  countries  allows  this.  But  people  undergoing  antiretroviral  treatment  tend  to 
develop intolerable side effects or start to develop resistance. Once this happens, they need to 
switch to a different drug combination, called second-line treatment (post-1995 patented) for 
which  TRIPS  makes  it  very  difficult  to  produce  generic  equivalents  during  the  20  years  of 
patent protection.323 

322 

323 

These  flexibilities  include  compulsory  licensing,  government-use  licences,  parallel  importation  and 
Bolar exceptions. See http://www.wto.org/english/tratop_e/trips_e/factsheet_pharm02_e.htm  
Bannenberg,  W.  2005.  Trade,  Health,  Medicines  &  AIDS:  TRIPS  to  development?  The  Hague: 
Netherlands Ministry for Development Cooperation.  

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The  EU  played  a  leading  role  in  the  WTO  deliberations  that  led  to  improvements  of  the 
TRIPS  Agreement  facilitating  access  to  essential  drugs  for  developing  countries,  and 
transposed the waiver decision on compulsory licensing into Community legislation through 
Regulation  816/2006  of  17  May  2006.  The  case  study looked  into  the  question  whether  the 
flexibilities  built  into  the  TRIPS  Agreement  have  helped  developing  countries  to  ensure 
access to HIV/AIDS treatment. 

•  and  how  these  provisions  affected  access  to  HIV  treatment:  the  case  of  Zambia, 

Tanzania and Rwanda 

Zambia  and  Rwanda  have  both  made  use  of  TRIPS  provisions  to  improve  access  to  HIV 
treatment  in  their  countries.  Their  cases  are  interesting  because  they  illustrate  the  extra 
difficulties of making use of the TRIPS flexibilities for reasons other than IPR. 

Zambia  made  an  attempt  in  2004  to  produce  first-line  ARVs.  The  government  declared 
HIV/AIDS  a  national  emergency324  and  awarded  an  exclusive  compulsory  licence  to  the 
company Pharco Ltd. However no ARV drugs were produced at its manufacturing plant due 
to the reliance on external funding and  the  fact  that  the  conditions  for  procurement through 
external funding such as the Global Fund were not met: the production plant did not conform 
to  the  World  Health  Organisation’s  current  Good  Manufacturing  Practice  (cGMP)  and  the 
ARV drugs that were to be produced had not been pre-qualified by the WHO.  

The case of Zambia also demonstrates the growing importance of the TRIPS flexibilities. Due 
to  increased  resistance  to  first-line  treatment  in  Zambia,  many  patients  will  have  to  shift  to 
second-line treatment, which averages around USD400 per patient per year. In 2015, ensuring 
access to ARVs would need resources that go far beyond the present budget, with estimates 
ranging from USD190 688 800 (USAID) to USD218 407 488 (NAC).  

Rwanda took a different route. In May 2007, the Rwandan authorities notified the WTO that, 
based on their evaluation of public health needs, Rwanda intended to import 260 000 packs of 
an  AIDS  medicine  to  be  manufactured  by  the  Canadian  manufacturer  Apotex,  Inc.  After 
Rwanda’s notification Apotex took the necessary steps to obtain an authorisation to produce 
and eventually export the medicines. This process turned out to be particularly cumbersome 
as  it  involved  five  patentees  and  nine  patents.  In  the  end  the  Rwandan  health  authorities 
selected  Apotex,  but  only  for  a  part  of  its  bid  because  the  funding  for  this  procurement 
required USA Federal Drugs Authority certification, which Apotex FDC did not have. For the 
remaining  part  of  the  procurement  an  Indian  supplier  (USA  FDA  certified)  was  selected 
although  its  prices  were  higher.  In  this  case,  therefore,  the  use  of  one  of  the  TRIPS 
flexibilities was not possible for Rwanda to ensure wide access to ARVs. 

Tanzania  has  not  yet  made  use  of  the  TRIPS  flexibilities,  but  might  do  so  in  the  future. 
Similarly  to  Zambia,  Tanzania  has  some  limited  production  facilities  and  has  been 
formulating  imported  active  pharmaceutical  ingredients  (APIs)  into  generic  first-line  ARV 
drugs. These APIs are imported from China and are off-patent.325 In 2006, the German NGO 
Action Medeor was awarded a grant of 5 718 870 euro by the European Commission from the 
European Development Fund for a project titled “Technology transfer and local production of 

324 

325 

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is 

letter 

Zambia’s 
September/006959.html 
Losse,  Schneider  and  Spennemann  (2007)  ‘The  Viability  of  Local  Pharmaceutical  Production  in 
Tanzania.’ Eschborn: GTZSee, http://www2.gtz.de/dokumente/bib/07-0300.pdf 

http://lists.essential.org/pipermail/ip-health/2004-

available 

here: 

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high-quality  and  affordable  fixed-dose  antiretroviral  drug”.  This  project,  carried  out  in 
collaboration  with  the  Tanzanian  Pharmaceutical  Industry,  revolves  around  the  preparation 
and launch of a manufacturing facility for the production of affordable high-quality second-
line  ARVs  in  Arusha,  Tanzania.  According  to  the  National  AIDS  Council  of  Tanzania,  the 
first  batch  of  ARVs  produced  by  this  factory  has  recently  been  procured  by  the  Tanzanian 
government. In the further preparation of the programme, consideration is likely to be given 
to use of TRIPS flexibilities that can facilitate the production of these drugs. With the external 
assistance  provided  through  this  project  the  Tanzanian  government  expects  to  have  prompt, 
sustainable  access  to  locally  produced,  affordable,  high-quality  key  pharmaceuticals  for  the 
treatment  of  HIV/AIDS  patients.  Although  it  is  still  too  early  to  judge,  there  appears  to  be 
some  scope  for  Tanzania  to  explore  and  use  TRIPS  flexibilities  and  make  progress  towards 
MDG 6.  

•  General assessment 

The three examples show how difficult it is to use the TRIPS flexibilities. In Zambia the use 
of  these  flexibilities  has  not  resulted  in  improved  access  to  HIV  treatment  in  the  case  of 
Rwanda the objective of ensuring wide access was not met but some drugs could be imported 
into  the  country.  The  reasons  for  this  relate  not  only  to  the  TRIPS  Agreement  but  to  other 
issues such as procurement and financing rules which complicated the use of the flexibilities. 
Although  it  is  still  too  early  to  say,  it  seems  that  Tanzania  may  be  able  to  overcome  the 
identified obstacles and make progress towards MDG 6 using TRIPS flexibilities, due also to 
development assistance. 

•  A patent pool to make intellectual property rights work for development?  

To address the issue of multiple patents and the high drug prices that can result from them, 
some EU Member States together with other countries are exploring the possibility of patent 
pools.  The  purpose  of  a  patent  pool  for  medicines  is  to  improve  affordability  of  second-
generation  drugs  by  lowering  the  barriers  to  market  entry  for  generic  drug  manufacturers 
while maintaining royalties to patent holders.  

In  2006  UNITAID  was  created  as  an  international  drug  purchase  facility  by  France,  Brazil, 
Chile,  Norway  and  the  United  Kingdom.  UNITAID  also  functions  as  a  forum  for  dialogue 
about the need to facilitate access to drugs for the world's poorest people as part of the fight 
against  the  major  pandemic  diseases.  In  addition  to  France  and  the  UK  as  founders,  Spain, 
Luxembourg and Cyprus have since confirmed their membership of the facility.  

In order to improve the affordability and accessibility of new and better adapted drugs it was 
agreed to explore the option of a patent pool. UNITAID has set up a Task Force to design the 
structure  for  the  medicines  patent  pool  and  develop  the  necessary  instruments  for  its 
implementation. UNITAID expects to encourage voluntary contributions from patent holders 
and  potential  licensees  for  products  to  be  used  in  low  and  middle  income  countries.  It  is 
expected that the UNITAID Board will shortly approve the creation of a licensing agency for 
the patent pool. This would form the basis for the eventual creation of the pool, which would 
require one or two years to be set up. 

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4.3.3.2.  The role of research policy 

Since  1983,  research  co-operation  on  health  with  developing  countries  has  been  part  of  the 
European  Commission's  overall  research  agenda  under  its  regular  research  budget  and 
continues to be one of the main priority areas within co-operation programmes. 

•  EU support for health research in Tanzania 

In its research part the case study focussed on Tanzania as a country that has been benefitting 
from relatively high funding from European research programmes in particularly in the health 
area. In fact Tanzania is the LDC that has received most funding under FP-7 so far and ranks 
just after South Africa and Morocco. 326 

Tanzania has also been receiving European funding to boost health and HIV/AIDS research 
from other EC financial instruments as well as from other EU donors. 

The study mainly looked  into research projects funded under  FP-6, the predecessor of FP-7 
covering the period 2002-2006. Several FP-6 funded research projects relating to HIV/AIDS 
have been carried out in Tanzania. The following table gives an overview of projects, periods 
and budgets.  

Table 2: Selected EU-funded health research projects involving Tanzania 

CTL-Mediated Protection from HIV-1 Infection in a High-Risk 
Cohort in Tanzania  

Study of Immunogenicity of DNA HIV-1 env, gag and pol Plasmid 
Vaccines Boosted with MVA in Tanzania: HIV Vaccine 
Immunogenicity Study 

Promoting Sexual and Reproductive Health. School-Based 
HIV/AIDS Prevention in Sub-Saharan Africa 

Strategies for health insurance mechanisms to address health 
system inequities in Ghana, South Africa and Tanzania (SHIELD) 

A multidisciplinary alliance to optimise schistosomiasis control 
and transmission surveillance in sub-Saharan Africa (CONTRAST)

2002 -
2005 

2002 -
2005 

2002 -
2006 

2006 -
2009 

2006 -
2010 

Effects of ARVs on African health systems, and maternal and child 
health (ARVMAC) 

2006 -
2010 

Strengthening fairness and accountability in priority setting for 
improving equity and access to quality health care at district level 
in Tanzania, Kenya and Zambia 

Poverty Related Diseases-College: International Programme on 
BioMedicine and Development 

Targeting HIV integration co-factors, targeting cellular proteins 
during nuclear import or integration of HIV 

2006 -
2010 

2008 -
2011 

2008 -
2012 

€1 050 000 

€1 200 000 

€1 310 000 

€2 000 000 

€2 900 000 

€2 400 000 

€1 770 000 

€1 403 013 

€2 939 672 

326 

For  more  information  about  EU  research  policy  please  see  the  research  chapter  of  part  1  of  this 
document 

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Funding from the European and Developing Countries Clinical 
Trials Partnership Agreement covering Tanzania (EDCTP)  

Variable 

€24,999,582

Total: 

€41 972 267

•  Examples of positive results through EU-supported Research 

The  study  identified  impacts  of  three  projects  in  particular,  the  European  and  Developing 
Countries Clinical Trials Partnership Agreement (EDCTP), the FP-6 funded ARVMAC, and 
the SHIELD projects. 

The EDCTP (last item in Table 1) was set up with the aim of accelerating the development of 
new  or  improved  drugs,  vaccines  and  microbicides  against  HIV/AIDS,  malaria  and 
tuberculosis in Sub-Saharan Africa. EDCTP  supports  projects which combine clinical trials, 
capacity  building  and  networking.  The  aim  of  integrating  these  three  activities  is  to  ensure 
that  developed  countries’  capacities  are  utilised  to  successfully  conduct  clinical  trials  in  a 
sustainable way. The EDCTP includes 14 participating European Union (EU) Member States 
plus  Norway  and  Switzerland  along  with  sub-Saharan  African  countries.  The  partnership 
helps  EU  Member  States  to  integrate  and  coordinate  their  own  national  research  and 
development  programmes  and  form  partnerships  with  their  African  counterparts.  The 
partnership  aims  to  ensure  synergy  and  optimal  use  of  resources,  and  create  a  win-win 
situation  for  all  involved.  The  ongoing  and  planned  clinical  trials  under  EDCTP  have  the 
potential  to  provide  important  evidence  for  future  care  and  treatment.  ECDTP-supported 
research has already led to concrete improvements in the treatment of children suffering from 
HIV/AIDS in Zambia.327 

The programme on the effects of ARVs on African health systems (ARVMAC) has produced 
very interesting findings that are relevant for informing effective health policies, in particular 
with  regard  to  the  linkages  between  HIV  child  survival,  gender  inequities  and  reproductive 
health  and  the  undermining  of  household  economies.  HIV/AIDS  is  found  to  increase  infant 
and child mortality up to 40%. Women are 4-25 times more vulnerable to HIV transmission, 
and  on  average  10  years  younger  than  men  when  infected  while  making  up  the  majority  of 
people living with HIV/AIDS (PLWHA) in Sub-Saharan Africa. Lack of integration of anti-
retroviral drugs with antenatal care (ANC) and low access to second level care (e.g. caesarean 
section) limits access to effective prevention of mother-to-child transmission (PMTCT), and 
increases maternal mortality.  

The project 'Strategies for health insurance mechanisms to address health system inequities in 
Ghana,  South  Africa  and  Tanzania'  (SHIELD)  has  allowed  for  a  systematic  comparison  of 
formal and informal health insurance institutions in Tanzania. The preliminary findings so far 
include  the  high  amount  of  ‘out-of-  pocket’  payments  by  users  of  the  Tanzanian  health 
system, as well as the low enrolment of Tanzanian citizens in the Community Health Fund, 
dropping below 2% in some Councils. In addition to the conclusion that present arrangements 
benefit the formal sector most of all, the study has also picked up signs of poor populations 
having  to  make  payments  for  health  services  that  legally  should  be  waived,  but  are 
inform  policy-relevant 
insufficiently  monitored 

in  practice.  Such 

findings  can 

327 

See also the box p. 120 in the Research chapter of this report 

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recommendations  with  regard  to  exploring  more  sustainable  health  financing  schemes  that 
ensure access to health services, including HIV/AIDS medicines.  

•  General assessment 

These important projects, which either already contribute to fighting HIV/AIDS or have the 
strong  potential  to  do  so,  have  nevertheless  to  be  implemented  in  a  context  of  limited 
coordination  between  the  different  actors.  A  more  or  less  comprehensive  overview  of 
HIV/AIDS  research,  whether  biomedical,  health  systems,  or  social  science  oriented,  is  not 
available  in  Tanzania  and  not  actually  sought  after  by  its  Government.328  The  Development 
Partners  Groups  for  Health  (DPGH)  and  AIDS  (DPG-AIDS)  have  been  established  for  the 
purpose  of  facilitating  donor  harmonisation  and  coordination.  Neither  of  the  groups  sees 
research as a specific topic to feature systematically on their agendas and they are not aware 
of the range, magnitude and focus of ongoing research.  

Currently there is no effective National Health Research System in place in Tanzania despite 
the  existence  of  various  official  organisations  and  legal  bodies  which  have  received 
considerable  capacity-building  support.  This  has  led  to  very  limited,  if  any,  coordination  of 
research  and  seriously  hampers  the  utilisation  of  research  results  in  policy  development. 
Political will to bring about real coordination is lacking, both on the Tanzanian side and on 
the EU side. Thus, despite the important contributions of EU research policies there are still 
many opportunities to further improve the coherence of EU research policies working towards 
attainment of the Union’s development objectives.  

Three  factors  can  explain  the  lack  of  development  impact  of  European  support  to  health 
research  in  Africa,  with  particular  reference  to  the  lack  of  coherence  between  research  and 
development cooperation interventions:329 

•  “The most vulnerable populations lack the capacity to fight against these three infections 
[HIV/AIDS, Malaria and Tuberculosis]. Research on these diseases is particularly difficult, 
due to a lack of trained personnel and of infrastructure, especially in sub-Saharan Africa. 
Without  such  capacity,  researchers  cannot  properly  contribute  to  fighting  these  diseases 
and support the local population. 

•  While  many  European  countries  do  have  relevant  research  programmes  for  sub-Saharan 
Africa  on  the  three  diseases,  they  entail  bilateral  North-South  collaborations,  and  lack 
proper  coordination  with  other  European  partners.  This  fragmentation  hampers  the 
development of an appropriate approach to helping African researchers and populations to 
combat these diseases. 

328 

329 

Although  the  National  Institute  for  Medical  Research  (NIMR),  under  the  Ministry  of  Health,  has 
formally  been  given  the  authority  to  coordinate  and  oversee  all  medical  research  in  the  country,  its 
online  database  has  not  been  updated  since  2007.  Besides  its  regulatory  mandate  NIMR  carries  out 
commissioned research projects. The Tanzanian Commission for Science and Technology (COSTECH) 
is  the  national  agency,  under  the  Ministry  of  High  Education,  Science  and  Technology  (MHEST), 
entrusted with the responsibility of co-coordinating and promoting science and technology development 
activities in the country. A public data-base of completed and ongoing research related to HIV/AIDS (or 
any other health field) is, however, currently not operational.  
COM(2008)  688  final,  p.3,  30.10.2008,  Communication  on  the  Progress  Report  on  the  European  and 
Developing Countries Clinical Trials Partnership Programme.  

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•  Finally,  European  research  activities  in  sub-Saharan  Africa  are  conducted  with  no  clear 
synergy  with  development  aid  and  cooperation  programmes,  which  invest  considerable 
funds in public health capacity." 

Therefore, despite the aforementioned positive examples the study concludes that the impact 
of EU-funded research projects could be much higher on development. A lack of coordination 
and mutual awareness sometimes makes it difficult to create true synergies between research 
and development policy. 

4.3.3.3.  The role of migration policy 

An adequate staffing level is an important aspect of every functioning health system and of 
ensuring access to treatment. Without sufficient staff treatment cannot be ensured even when 
drugs are available. Besides barriers like the distance to a health facility, poverty and stigma, 
the  extreme  shortage  of  health  workers  particularly  in  rural  health  facilities  forms  a  major 
obstacle to further progress towards MDG 6. 

Ironically,  the  increased  efforts  to  fight  HIV/AIDS  risk  exacerbating  the  problem.  The 
extraordinary  donor  investment  in  vertical  AIDS  treatment  programmes  equalling  almost  a 
doubling  of  the  total  current  health  budget  in  several  African  countries  is  expected  to  have 
significant implications for  health  systems and  even  compound  the  staff  problem.  How  will 
the African health systems with already very low staffing levels cope with the high ambitions 
of these programmes330. In Tanzania for example it is estimated that between 17 000 and 33 
000 health workers or 35-70% of the current health workforce (48 500) would be required to 
deliver ART at planned coverage level331.  

In Zambia, too, the extreme shortage of health workers particularly in rural health facilities is 
a major obstacle. In 2005 there were only 600 doctors in 2 300 positions (74% vacancies) and 
6 000 nurses in 16 000 positions (63% vacancies), with a strong rural/urban disparity, leaving 
various rural health centres with no staff at all.332  

The  factors  that  cause  the  increasing  number  of  vacancies  in  Zambia  include  low  and  late 
payment,  and  very  unfavourable  working  conditions,  leading  to  considerable  levels  of 
absenteeism  of  existing  staff.  Migration  to  European  and  neighbouring  countries  has  been 
significant  although  reliable  figures  are  not  available.  It  is  estimated  that  about  50%  of 
Zambia-born doctors practise overseas.333  

•  EU migration policy 

The EU is conscious that its migration and health policies might influence staffing levels in 
health systems in developing countries. In November 2008, the Council adopted conclusions 
on  the  Commission's  staff  working  document  on  the  implementation  of  the  EU  programme 
for action to tackle the critical shortage of health workers in developing countries, in which 

330 

331 

332 
333 

Van Damme, W., K. Kober and M. Laga. 2006. The real challenges for scaling up ART in sub-Saharan 
Africa. In: Aids 2006. 20: 653-656.  
Kurowski, C. et al. 2004. Human resources for health: requirements and availability in the context of 
scaling-up  priority  interventions  in  low-income  countries.  Case  studies  from  Tanzania  and  Chad.,  in 
HEFP working paper No. 01/04. 2004, LSHTM Health Economic and Financing 
Government of Zambia (2005) 
Clemens, M. A. and Pettersson, G. 2008. New data on African health professionals abroad. In: Human 
Resources for Health 2008, 6:1 

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the Council reiterates the need to strengthen the translation of the existing policy into action, 
especially with respect to the development and implementation of an EU Code of Conduct for 
recruitment  of  health  workers  from  developing  countries  that  would  draw  upon  existing 
experience of Member States and the work of the WHO on a global code of practice in this 
area.  This  has  been  developed  further  in  the  Commission's  Green  Paper  on  the  European 
workforce  for  health  drafted  in  2008  which,  apart  from  stressing  the  crucial  importance  of 
beefing up the EU's own health workforce, also proposes to put in place an EU-wide set of 
principles  to  guide  recruitment  of  health  workers  from  developing  countries,  introduce 
methods  for  monitoring  the  situation,  stimulate  bilateral  and  multilateral  agreements  with 
source countries and develop mechanisms for supporting circular migration. At national level 
the  UK  introduced  its  own  code  of  practice  in  2004  for  the  international  recruitment  of 
healthcare professionals334.  
Regardless of their importance and visibility codes of conduct are just one of many tools, and 
as the evaluation of the effectiveness  of the  UK code of practice335 adopted in 2004  shows, 
they need to be accompanied by appropriate measures to address pull factors, to improve the 
capacity of developing countries to  train,  manage and retain  health workers, and to develop 
mechanisms for supporting circular migration that would be of benefit to the migrating health 
workers, health systems in developing countries and the EU.  

The Council Directive ‘on the conditions of entry and residence of third-country nationals for 
the purposes of highly qualified employment’, popularly known as the Blue Card proposal, is 
trying  to  address  some  of  these  points.  While  primarily  aiming  to  deal  with  shortages  of 
highly  skilled  labourers  in  the  EU,  the  proposed  Directive  also  includes  a  number  of 
safeguards  and  flanking  measures  to  avoid  any  negative  impact  on  developing  countries’ 
ability to achieve the MDGs. For example, the proposed Directive intends to offer migrants 
the possibility of a "time-out", allowing temporary return to their country of origin or a move 
to any other country. This creates a favourable environment for circular migration and builds 
on the existing efforts of some Member States - notably France, Germany and the Netherlands 
– that have begun to work on developing programmes which would encourage migrant health 
workers  to  return  and  resettle  in  their  countries  of  origin  or  be  able  to  leave  for  extended 
periods without affecting their residency status. Yet it is too early to find concrete evidence of 
these provisions working out in practice and it will almost certainly take more effort to build 
on the existing initiatives, increase their scope and make them sufficiently workable for health 
workers, their families and their employers. 

•  General assessment 

These  positive  developments  are,  however,  too  recent  to  show  any  impact  already.  Beyond 
them, the case study found little evidence that the EU through its policies has contributed to 
reducing migration of health workers from the three African countries to the EU so far.  

4.3.4.  Conclusions: the influence of TRIPS, research and migration policies on MDG 6  

The  influence  of  the  specified  EU  policy  areas  on  access  to  ARVs  can  be  summarised  as 
follows: 

334 

335 

Departement of Health, "Code of practice for the international recruitment of healthcare 
professionals", 12.2004, 
Seehttp://www.dh.gov.uk/en/Publicationsandstatistics/Publications/PublicationsPolicyAndGuidance/D
H_4097730 
Idem. 

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Table 3: Conclusions: EU policies’ influence on access to medicines 

Rational selection of ARV 

Affordable prices for ARV 

EU  Research  policies:  No 
results  have 
reportedly  become  available  through  EU-
supported research projects that have directly 
contributed  to  a  more  rational  selection  of 
treatment regimens. Several ongoing projects 
do  have  the  potential,  when  data  become 
available,  to  influence  the  rational  selection 
of  ARVs.  PCD  in  thisarea  will  thus  be 
if  more  coordination  between 
feasible 
research 
cooperation 
and 
policies is ensured. 

development 

to 

commitment 

The  EU's 
introduce 
flexibilities  into  the  TRIPS  Agreement  has 
been  an 
in  ensuring 
affordable  prices  of  drugs.  In  the  case  of 
Rwanda there is a concrete evidence that this 
has improved access to treatment.  

important  element 

The  EU’s  support  to  UNITAID’s  current 
preparations  for  a  patent  pool  for  ARVs  is  a 
crucial avenue to ensure access to affordable 
medicine in the future. Supporting this would 
increase PCD of the EU’s trade policies.  

Sustainable financing of ARV 

Reliable health and supply systems for ARV 

EU Research policies: One of the main ways to 
address  sustainable  financing  of  essential 
medicines  is  through  health  insurance  and 
social  security  systems.  The  ongoing  FP-6 
funded SHIELD project studies the feasibility 
of  health  insurance  systems  in  Tanzania  and 
specifically  refers  to  access  to  HIV/AIDS 
care and treatment. 

the  most 
EU  Research  policies:  Probably 
complex  component  for  access  to  essential 
medicines  is  an  effective  healthcare  system 
that  is  available,  accessible,  appropriate  and 
affordable.  The  FP-6  funded  ARVMAC 
research  project  studies  the  health  system 
aspect  of  access  to  ARVs  and  the  possible 
negative consequence of relative high (donor) 
interest  in  the  scaling  up  of  HIV/AIDS  care 
and  treatment.  These  studies  can  make  an 
important  contribution  in  the  area,  provided 
that  the  coordination  between  research  and 
development 
and 
cooperation 
operations is improved.  

policies 

EU  Migration  policies:  the  availability  of 
well  trained  and  motivated  health  cadres  is 
crucial to ensuring adherence, monitoring and 
where  needed  transition  from  one  ARV 
regimen  to  the  next.  Although  efforts  have 
been  made  to  make  EU  migration  policies 
more conducive to brain circulation, towards 
more  PCD  is  not  yet  strong  enough  to 
‘enforce’ these safeguards in practice.  

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4.4. 

The Joint Africa – EU Strategy (JAES) 

4.4.1. 

Introduction 

Since  the  adoption  of  the  Joint  Africa-EU  Strategy  (JAES)  in  December  2007,  the  long-
standing cooperation between the two continents has been extended beyond the boundaries of 
Africa, beyond development policy and beyond institutional actors. This new framework has 
also  been  an  important  step  towards  treating  Africa  as  one  and  putting  into  practice  the 
principle  of  division  of  labour  to  further  enhance  coherence  and  complementarity  of  EU 
action.  

While the commitment to Policy Coherence for Development (PCD) is made explicit in the 
JAES document (sections 11, 53, 72, and 73), it is the underlying principles of partnership and 
equality (jointly set priorities and objectives), the people-centredness (extending the dialogue 
and  cooperation  to  non-institutional  actors)  and  the  multi-thematic  nature  that  are  key 
elements for PCD. Though it is still too early to judge the actual bearing of the JAES, all its 
innovative features make it an interesting case for studying the Strategy's (potential) impact 
on PCD. 

The analysis below is structured according to the OECD Policy Coherence Cycle as described 
in  the  organisational  chapter  of  this  Report.  The  interaction  between  three  types  of 
mechanisms  namely  1)  setting  and  prioritisation,  2)  coordinating  policy  and 
its 
implementation and 3) monitoring, analysis and reporting are key in (political) processes and 
from a 'whole-of-government' perspective to promote policy coherence for development. The 
JAES’s potential to improve synergies between different policy areas is examined as well as 
the  value  and  potential  offered  by  the  partnership(s)  at  African  and  European  levels  in 
addressing global issues relevant to the PCD agenda.  

4.4.2.  The JAES and its potential for strengthening coherence 

With  respect  to  the  Africa-EU  Strategic  Partnership,  EU  Member  States  are  confident  that 
once  implementation  is  fully  under  way,  the  JAES  will  be  conducive  to  strengthening 
coherence  of  non-development  policies  with  development  objectives.  The  results  of  a 
questionnaire (see diagram below) demonstrate that the partnership on Peace and Security is 
seen  as  an  example  of  successful  EU  alignment.  In  the  areas  of  Environment  and  Climate 
Change, several Member States have indicated their interest in improving the governance of 
the global environmental system and also consider that a concerted EU position will increase 
the  likelihood  of  success.  Some  doubts  have  been  raised,  however,  about  the  Social 
Dimension of Globalisation, Research and Innovation, Information Society and Transport (see 
diagram below). The lack of an articulated EU position and cooperation agenda in these areas, 
and the fact that where no common EU policy exists the Member States tend to channel their 
efforts for achieving PCD through non-EU international fora, might be the underlying reason 
for such reservations.  

EN 

201 

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Is the Joint Africa-EU Strategy conducive to strengthening coherence between selected 
policy areas and development objectives?

Trade and Development
policies
Environment and
Development policies
Climate Change and
Development policies
Security and Development
policies
Agriculture and Development
policies
Social Dimension and
Development policies
Migration and Development
policies
Research and Development
policies
Information Society and
Development policies
Transport and Development
policies
Energy and Development
policies

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Yes

No

N.A.

Source: Synthesis of EU member-state responses to PCD Questionnaires 2009 

•  Setting and prioritising objectives 

The  JAES  and  its  Action  Plan  have  significantly  contributed  to  putting  Africa  and 
development  objectives  firmly  on  the  agenda  of  EU  policy  areas  that  have  not  traditionally 
played  an  important  role  in  EU-Africa  relations  in  the  past.  The  partnership  on  Science, 
Information  Society  and  Space  (SISS)  is  a  case  in  point.  It  responds  directly  to  the  African 
side’s request to develop its capacities in this domain and has promoted closer collaboration 
on the European side between the relevant Commission services (DGs Development, Relex, 
EuropeAid,  INFSO  and  RTD)  and  Member  States.  Among  the  early  outcomes  of  the  SISS 
partnership,  the  cooperation  of  the  Joint  Research  Centre  with  the  AUC  on  African  Global 
Monitoring  for  Environment  and  Security  constitutes  a  good  example  of  PCD  practice 
whereby EU research capacity has been used to further development objectives.  

The  Joint  AU-EU  Declaration  on  Climate  Change,  identifying  concrete  opportunities  for 
further  cooperation  and  dialogue  in  the  run-up  to  the  Climate  Conference  in  Copenhagen, 
agreed  within  the  Climate  Change  partnership,  can  also  be  regarded  as  an  important  PCD 
outcome. France and Morocco, as lead countries playing an active role in this partnership, as 
well  as  the  African  and  European  Commissions  have  worked  closely  to  forge  a  common 
agenda and set joint objectives. The Joint Declaration merges environmental objectives with 
development measures and assistance. 

Migration,  Mobility  and  Employment  (MME)  is  yet  another  JAES  partnership  that  has 
revealed the capacity of the Joint Strategy to contribute to the PCD agenda. A project entitled 
'Link  emigrant  communities  for  more  development'  was  launched  in  The  Hague  on  23-24 
June 2009 within  the framework of  this partnership.  More initiatives and projects are under 
consideration. These include facilitating mobility of students within Africa (through mobility 

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schemes  such  as  the  Nyerere  programme)  and  between  Africa  and  Europe  (through 
programmes such as Erasmus Mundus)336 and a proposal to work towards the establishment 
of  an  EU-African  Diaspora  Network  to  ensure  better  dialogue  with  African  Diaspora  in 
Europe  and  stronger  involvement  of  the  Diaspora  in  the  development  of  their  countries  of 
origin. 

While priorities that can contribute to the PCD agenda can be identified in other partnerships 
as well, the main challenges for multiplying these examples of good PCD practice appear to 
be, at the political level, the degree of commitment by the actors to fully engage in the process 
and, at the technical level, the limited thematic expertise of the  Joint  Expert  Groups (JEGs) 
established  for  the  respective  partnerships’  implementation.  Information  flow  with  and 
participation  from  line-ministries  and  administrations  in  the  Joint  expert  Groups  (JEGs)  has 
remained low, with so far mostly officials from Foreign Ministries attending meetings. This 
demonstrates that the JAES process has not yet been fully integrated in the EU and African 
Member  States'  national  political  frameworks,  and  that  more  progress  is  needed  to  ensure 
better alignment. 

•  Coordination and implementation 

The  JAES  working  structures  are  innovative,  favouring  better  coordination  and  division  of 
labour. The frequency and quality of formal and informal contacts under the JAES process, 
both at political and at technical level, has allowed Africa and the EU to improve institutional 
cooperation and national coordination within the EU and in Africa as well as between the two 
continents. For instance, AUC and EC actors have in particular expressed appreciation of the 
quality  of  dialogue  on  the  situation  in  Madagascar,  resulting  in  EU  support  for  the  AU 
position in the International Contact Group. Along the same lines, the joint EU PSC and AU 
PSC meeting held in 2008, and now to be held once a year is seen as formalising the enhanced 
dialogue on a broad range of Peace and Security issues. Although there is divergence on some 
issues – from universal jurisdiction337 to the question of unconstitutional change - European 
and African stakeholders particularly valued the dialogue and exchange of views attributed to 
the JAES process. 

the  different  services 

Within  the  European  Commission,  significant  efforts  have  been  made  to  strengthen  the 
coordination  and  cooperation  between 
in  JAES 
implementation. The network of designated Focal Points has been particularly useful to share 
information  and  align  positions  and  initiatives  across  different  Directorates  General.  Good 
progress has also been made in bringing together the thematic and geographic experts on the 
various  partnerships,  to  mainstream  the  JAES  priorities  in  the  programming  of  the  many 
Community  instruments  and  in  the  mid-term  review  of  the  European  Development  Fund's 
national  and  regional  indicative  programmes.  However,  the  situation  is  not  entirely 
satisfactory when it comes to "treating Africa as one": additional efforts are required to ensure 
coordination  since  geographic  (and  cooperation)  responsibilities  for  Sub-Saharan  and 
Northern  Africa  are  shared  across  several  services.  This  would  reinforce  operational  and 

involved 

336 
337 

www.study-in-europe.org 
The  last  2008  AU/EU  Troika  Meeting,  on  the  initiative  of  COAFR,  established  a  technical  ad  hoc 
expert  group  to  ‘clarify  the  respective understanding’ on  the  African  and  EU side on  the  principle  of 
universal  jurisdiction  and  to  issue  recommendations  for  ‘fostering  a  better  mutual  understanding 
between  the  AU  and  the  EU  of  the  purpose  and  the  practice  of  universal  jurisdiction’.  A  report  was 
released in April 2009. 

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policy  coherence  and  facilitate  the  design  of  truly  pan-African  projects,  initiatives  and 
policies.  

Within the Council of the EU, the Africa Working Group (AWG), which serves as a cross-
pillar  coordinating  and  monitoring  body  for  implementation  of  the  JAES,  has  met  with  the 
European national experts leading the implementation process in order to review progress in 
the thematic partnerships and to address cross-cutting issues. This work has been instrumental 
in  ensuring  the  necessary  transparency  and  information  flow,  both  between  Brussels  and 
national  capitals  and  between  JEGs  (in  which  only  a  limited  number  of  Member  States 
participate) and the full EU-27 format. The AWGhas also started to meet regularly with the 
AU's  Representative  to  the  EU,  and  with  the  Group  of  African  Ambassadors  in  Brussels. 
However, the same 'geographical divide' persists between Northern Africa (dealt with in the 
Maghreb-Mashrek Working Group) and sub-Saharan Africa (within the AWG's remit), while 
other  key  issues  such  as  development-policy,  the  Cotonou  cooperation  framework,  or  (2nd 
pillar)  Peace  and  Security  issues  and  (3rd  pillar)  Migration  are  covered  by  various  other 
Groups. Nevertheless, by bringing Member States together under a new frame and in informal 
meetings,  the  JAES  institutional  architecture  encourages  information  flows  and  exchanges, 
which are the first step towards enhanced aid effectiveness at EU level.  

On the African side, with the 53 African Member States, the African Union Commission and 
the Regional Economic Communities, coordination and the ability to act and speak with one 
voice  has  been  also  a  challenge.  Yet,  some  stakeholders  have  reported  that  the  JAES  in 
general and some thematic partnerships in particular have contributed to acting as a catalyst 
for  the  beginning  of  discussions  between  African  stakeholders  on  further  articulating  and 
consolidating common pan-African positions and priorities.  

•  Monitoring, analysis and reporting progress 

The JAES and Action Plan (AP) monitoring provisions were not explicitly designed for PCD 
monitoring,  as  their  scope  goes  "beyond  development".  However,  the  multi-layered,  multi-
stakeholder  design  of  the  JAES  provides  significant  potential  for  PCD  monitoring.  For  this 
potential  to  be  realised  in  practice,  once  the  JAES  has  matured  from  its  initial  phase,  PCD 
monitoring needs to build on existing and evolving processes, such as the ones existing under 
the  Cotonou  Agreement  provisions  and  those  available  at  Member  State  level.  The  JAES 
website338 demonstrates a good degree of transparency in sharing information on official and 
semi-official  documents  and  the  use  of  the  website  for  PCD  monitoring  purposes  could  be 
further explored.  

The  involvement  of  Parliaments339,  other  institutions  and  bodies  such  as  the  EESC340  and 
ECOSOCC341, the Committee of the Regions342 and local authorities, the Regional Economic 

338 
339 

340 

341 

342 

Africa and Europe in partnership, http://africa-eu-partnership.org 
Cf.  The  European  Parliament  report  and  resolution  on  "One  year  after  Lisbon:  The  Africa-EU 
partnership at work" by rapporteur Maria Martens, 24.03. 2009.  
Cf. Opinion of the European Economic and Social Committee on the EU-Africa Strategy, by rapporteur 
Gérard Dantin , 18.08.2008. 
Cf. AU ECOSOCC Report "Second AU-CSO consultation on the implementation of the Africa-Europe 
partnership" 3-5.03.2009, Nairobi, Kenya 
Cf.Working  Document  of  the  Committee  of  the  Regions  Commission  for  External  Relations  and 
Decentralised  Cooperation  on  "One  year  after  Lisbon:  the  Africa-EU  Partnership  at  work",  by 
rapporteur Jean-Louis Destans, 16.02.2009. 

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Communities (RECs) and civil society –through the EU CSO Steering Group343 and the AU 
CSO  Steering  Committee,  but  also  the  trade  union  confederations344  and  research  networks 
such  as  EARN-  opens  new  channels  for  interaction,  public  scrutiny  and  accountability, 
between  institutional  actors  and  NSAs  on  EU-Africa  relations.  In  addition,  this  broad 
involvement  raises  public  awareness  of  the  JAES  and  is  another  step  towards  an  increased 
commitment to PCD.  

The role of the European Parliament and Pan-African Parliament was recognised and ensured 
in  the  institutional  structures  to  monitor  the  JAES  and  AP  implementation.  However, 
increased  engagement  of  Civil  Society  Organisations  (CSOs)  will  be  crucial  for  PCD 
monitoring  of  the  different  partnership  policy  areas  and  to  hold  to  account  different 
implementing partners, including the CSOs themselves. The European Peacebuilding Liaison 
Office,  for  instance,  has  suggested  that  the  Peace  and  Security  Partnership  needs  to  focus 
more  on  the  development-related  side  of  security.  Conducting  PCD  monitoring  jointly, 
between  the  African  and  EU  sides,  would  best  exploit  the  potential  of  the  JAES  for  PCD. 
Innovative  ways  to  achieve  a  long-term  solution  that  fosters  synergies  with  existing  PCD 
monitoring systems need to be explored. 

4.4.3.  Conclusion 

In  relation  to  the  three  types  of  mechanisms  of  the  PCD  cycle  and  in  terms  of  generally 
accepted practice and progress made on their use to date, the findings suggest that the JAES 
has very  good potential for promoting PCD. The design of the JAES features many aspects 
suited  to  pushing  forward  the  PCD  agenda  in  terms  of  objective  setting,  policy  design  and 
coordination  and  monitoring  mechanisms.  The  added  value  of  the  JAES  as  a  process  to 
promote  PCD  within  the  EU  lies  in  particular  in  its  (i)  promotion  of  whole-of-government 
cooperation within the EU, (ii) joint Africa-EU nature, and (iii) outreach and transparency to 
other actors, including civil society. 

Given the short time frame since its inception and operationalisation, it is not surprising that 
the  JAES  has  shown  some,  but  limited  impact  on  PCD  outcomes  to  date.  The  JAES  shows 
mixed  progress  in  effectively  putting  PCD-relevant  aspects  into  practice.  Expectations  must 
be  kept  realistic  given  the  wider  challenges  associated  with  JAES  implementation.  Some 
recommendations to promote further PCD can be made. Increased engagement and sense of 
ownership of all stakeholders would provide more opportunities for PCD promotion. This can 
be done through intensified dialogue and jointly assessing needs in and between the different 
partnerships and by inclusion of expertise from development agencies and ministries beyond 
the development and foreign affairs spheres. Participation of civil society organisations at an 
early stage would enhance opportunities to raise awareness and provide scope for increased 
PCD monitoring and reporting systems.  

The  JAES,  once  fully  developed,  embraced  by  all  stakeholders  and  implemented,  will 
encourage  synergies  between  policies  and  avoid  negative  impacts  of  policies  on  developing 
countries.  It  could  serve  as  a  basis  for  debates  about  the  future  of  the  Cotonou  Partnership 
Agreement and its possible declination into geographic cooperation instruments. Finally, the 
regular dialogue between all actors involved in the JAES is instrumental for gaining a better 

343 

344 

Cf.  Proposal  for  Civil  Society’s  engagement  in  the  implementation  and  monitoring  of  the  Joint  EU-
Africa Strategy, 29.07. 2008. 
Cf. ETUC/ITUC Declaration "Decent work at the heart of the EU-Africa Strategy", 20.02. 2009.  

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understanding  of  challenges  and  could  feed  into  the  debate  on  regional  and  in-country 
division  of  labour  instruments.  Clustering  various  policy  fields  might  also  assist  in  early 
detection  of  possible  incoherencies,  enabling  early  change  towards  a  more  coherent  and 
consistent approach taking better account of development concerns.  

Annex 1: List of Acronyms 

ABS 
ACP 
AfT 
AFUR 
AICD 
AIDS 
AMCOST 
AMIS 
AMISOM 
AMMA  
ANC 
AP 
APF 
APIs 
APSA 
ARV 
ARVMAC 
ASEAN 
ASEM  
ASF 
AU 
AUC 
AWG 
AXIS 
BELSPO 

BMU 
BMZ 
CASS 
CBD 
CCS 
CDI 
CDM 
CERs 
CFE 
CFP 
CFSP 
CGIAR 
CGMP 
CIGEM 
CIVCOM 

Access and Benefit-Sharing  
African, Caribbean and Pacific  
Aid for Trade  
Africa Forum for Utility Regulators 
Africa Infrastructure Country Diagnostic  
Acquired immune deficiency syndrome 
African Ministerial Conference on Science and Technology  
AU-led peace support operations in Sudan  
AU-led peace support operations in Somalia  
African Monsoon Multidisciplinary Analysis 
Anti-retroviral drugs with antenatal care  
Action Plan  
African Peace Facility 
Active Pharmaceutical Ingredients  
African Peace and Security Architecture  
Anti-retroviral medicine  
Anti-ritrovial medicine Maternal and Child ealth  
Association of Southeast Asian Nations  
Asia-Europe Meeting  
African Standby Force  
African Union  
African Union Commission  
Africa Working Group  
African Internet Exchange System  
Belgian Federal Science Policy Office  
Federal Ministry for the Environment, Nature Conservation and Nuclear Safety of the 
German Government 
Federal Ministry for Economic Cooperation and Development  
Chinese Academy of Social Sciences  
Convention on Biological Diversity  
Carbon Capture and Storage  
Commitment to Development Index  
Clean Development Mechanism  
Carbon Emission Reductions  
Carbon Fund for Europe  
EU Common Fisheries Policy  
Common Foreign and Security Policy 
Consultative Group on International Agricultural Research  
Current Good Manufacturing Practice  
Migration Information and Management Centre in Mali  
Committee for Civilian Aspects of crisis management  

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CLWP 
CN 
COMESA 
COMIFAC 
CONTRAST 

COSCAP 
COTER 
CPA 
CRTs 
CSAs 
CSOs 
CSRP 
DCI 
DDA 
DFQF 
DPGH 
DRC 
DWCP 
DZ 
EAC 
EBA 
EC 
ECOWAS 
EDCTP 
EDF 
EEA 
EECCA 
EG 
EIARD 
EIB 
EITI 
ENP 
ENRTP 
EP 
EPAs 
EPLO 
ESA 
ESDP 
ESS 
ETS 
EU 
EUEI 
EUFOR 
Tchad/RCA 
EUMC 
EUSR 

Commission's annual Legislative Work Programme  
China  
Common Market for Eastern and Southern Africa  
Commission des forets d'Afrique centrale 
Control and transmission surveillance  
Cooperative Development of Operational Safety and Continuing Airworthiness 
Programme  
Counter-terrorism group  
Consolidated Plan for Action  
Council Civilian Response Teams  
Coordination and Support Actions 
Civil Society Organisations  
Commission Sous-Regionale de Pêches  
Development Cooperation Instrument  
Doha Development Agenda  
Duty Free and Quota Free  
Development Partners Group for Health  
Democratic Republic of Congo  
Decent Work Country Programmes 
Algeria 
East African Community  
Everything But Arms 
European Commission 
Economic Community of West African States  
European and Developing Countries Clinical Trials Partnership  
European Development Fund  
European Environment Agency 
Eastern Europe, Caucasus, and Central Asia  
Egypt 
European Initiative on Agricultural Research for Development  
European Investment Bank  
Extractive Industries Transparency Initiative  
European Neighbourhood Policy  
Environment and Sustainable Management of Natural Resources including Energy  
European Parliament 
Economic Partnership Agreements  
European Peacebuilding Liaison Office  
Eastern and Southern Africa  
European Security and Defence Policy  
European Security Strategy  
Emission Trading Scheme  
European Union  
EU Energy Initiative for Poverty Reduction and Sustainable Development  

EU Force in Chad and the Central African Republic  
European Military Committee  
EU Special Representative  

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EUWI 
FAC 
FAFA 
FAO 
FCES 
FDA 
FLEGT 
FOMUC 
FP(6 or 7) 
FPAs 
GCCA 
GDP 
GEEREF 
GFCM 
GGFR 
GHG 
GHS 
GI 
GPP 
GRB 
GSP 

GSP+ 
ICCAT 
ICI 
ICPCs 
ICT/FP7 
ICTs 
IDRC 
IEE 
IEG 
iEPA 
IFAD 
IFIA 
IFPRI 
IfS 
IGAD 
IGF 

IGWG 
ILO 
IMO 
IN 
IOC 
IPCC 
IPEEC 
IPRs 

EU Water Initiative  
Food Aid Convention  
Financial and Administrative Framework Agreement 
Food and Agriculture Organization 
Economic and Social Consultative Forum  
Food and Drug Administration  
Forest Law Enforcement, Governance and Trade  
Force Multinationale en Centrafrique 
Framework programme (6 or 7) 
Fisheries Partnership Agreements  
Global Climate Change Alliance  
Gross Domestic Product  
Global Energy Efficiency and Renewable Energy Fund  
Global Forest Carbon Mechanism 
Global Gas Flaring Reduction public-private partnership  
Green House Gas 
United Nations Globally Harmonised System  
Geographical Indications  
Green Public Procurement 
Gender Responsive Budgeting  
General System of Preference  
General System of Preference with special incentive arrangement for sustainable 
development and good governance 
International Commission for the Conservation of Atlantic Tunas  
International Climate Initiative  
International Cooperation Partner Countries  
European ICT Research Programme  
Information and communication technologies  
Canadian International Development Research Centre  
Intelligent Energy – Europe programme 
International Environmental Governance  
Pacific interim EPA  
International Fund for Agricultural Development 
Interafrican Forest Industries Association 
International Food Policy Research institute 
Instrument for Stability  
Inter Governmental Authority on Development  
Internet Governance Forum  
Intergovernmental Working Group on Public Health, Innovation and Intellectual 
Property  
International Labour Organisation  
International Maritime Organisation  
Indian  
Indian Ocean Commission  
Intergovernmental Panel on Climate Change 
International Partnership on Energy Efficiency Cooperation 
Intellectual Property Rights 

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IRENA 
IRSE 
ISAR 
ISC 
ITF 
ITU 
IUU 
JAES 
JAR  
JEG 
JMST 
JPoI 
JRC 
KEF 
LAC 
LDCF 
LDCs  
MA 
MCS 
MDGs 
MEAs 
MED EUWI 
MINURCAT 
MIRA 
MIVAC 
MME 
MoENV 
MoFA 
MOST 
MoU 
MPA 
MRC 
MSY 

NACCAP 
NAMA 
NGO 
NICI 
NIP 
NRA 
NWO 
NYAMIG 
ODA 
OECD 
PAIPO 
PAP 
PCD 

International Agency for Renewable Energies 
International Research Staff Exchange  
National Agricultural Research Institute 
Inter-service consultation  
EU-Africa Infrastructure Trust Fund  
International Telecommunication Union  
Illegal, Unreported and Unregulated Fishing  
Africa-EU Strategy  
Joint Annual Report  
Joint Expert Group  
Joint Mediation Support Team  
Johannesburg Plan of Implementation  
Joint Research Centre  
Funding by the Federal Ministry of Science and Research 
Latin American and Caribbean 
Least Developed Countries Fund  
Least Developed Countries  
Marocco 
Monitoring, Control and Surveillance  
Millennium Development Goals  
Multilateral Environmental Agreements  
Mediterranean EUWI  
United Nations Mission in the Central African Republic and Chad  
Mediterranean Partner Countries  
Common Interactive Watch and Anticipation Mechanism  
Migration, Mobility and Employment  
Greek Ministry for Environment, Physical Planning and Public Works ,  
Greek Ministry of Foreign Affairs 
Ministry of Science and Technology  
Memorandum of Understanding  
Marine protected areas  
Medical Research Council  
Maximum Sustainable Yield  
Netherlands-African partnership for capacity development and clinical interventions 
against poverty-related diseases  
Non Agricultural Market Access  
Non Government Organisation 
National Information and Communication  
National Indicative Programme 
National Regulatory Agencies  
Netherlands Organisation for Scientific Research  
Nyagatare Maize Investment Group  
official development assistance 
Organisation for Economic Co-operation and Development 
Pan African Intellectual Property Organization  
Pan-African Parliament  
Policy Coherence for Development 

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PDF 
PEFC 
PIDA 
PIDA 
PIKE 
PMG 
PMTCT 
POVNET 
PRT 
PSC 
PSD 
RADA 
REACH  
RECCS 
RECs 

REDD 
RFMO 
RIPs 
RIU 
RSA 
RSPs 
SADC 
SALW 
SCP 
SDG 
SEE 
SHIELD 
SIAs 
SICA 
SIDS 
SISS 
SME 
SOLAS 
SPS 
SSATP 
SSM 
SSR 
TACKLE 
TBT 
TEN-T 
TN 
TPRM 
TPU 
TRA 
TRIPS 
TVET 

Partnership Dialogue Facility  
Programme for the Endorsement of Forest Certification Schemes  
Preparatory activities and studies 
Programme for Infrastructure Development in Africa  
Predominantly Information-rich, Knowledge-based Economy  
Political Military Group  
Prevention of mother-to-child transmission  
Pro-Poor Growth 
Provincial Reconstruction Teams 
Political and Security Committee  
Payment Services Directive  
Rwanda Agricultural Development Authority  
Registration, Evaluation, Authorisation and Restriction of Chemical substances 
Regional Economics of Climate Change Studies  
Regional Economic Communities 
Programme on Reduced Emissions from Deforestation and Degradation in Developing 
Countries 
Regional Fisheries Management Organisations  
Regional Indicative Programmes  
Research into Use  
Renewed Social Agenda 
Regional Strategy Papers  
Southern Africa Development Community 
Small arms and light weapons  
Sustainable Consumption and Production  
Social Dimension of Globalization  
Sout East Europe 
Strategies for health insurance mechanisms  
Sustainability Impact Assessments  
Specific International Cooperation Action  
Small Islands Developing States 
Science, Information Society and Space  
Small and Medium Entreprises 
International Convention for the Safety of Life at Sea  
Sanitary Phytosanitary  
Sub-Saharan Africa Transport Policy Programme  
Special Safeguard Mechanism  
Security sector reform  
Combat child labour through education 
Technical Barriers to Trade  
Trans-European Transport network  
Tunisia 
Trade policy review mechanism  
Trade Policy Unit  
Trade Related Assistance  
Trade-related Intellectual Property Rights  
Technical and Vocational Education and Training  

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UA 
UK 
UNCCD 
UNECA 
UNEO 
UNEP 
UNFCCC 
UN's 
UNSCR 
VMS 
VPA 
WEO 
WHO 
WIPO 
WMD  
WSIS 
WTO 
ZA 

Union Africaine 
United Kingdom 
United Nations Convention to Combat Desertification 
United Nations Economic Commission for Africa  
United Nations Environment Organisation  
United Nations Environment Programme  
United Nations Framework Convention on Climate Change 
United Nations 
United Nations Security Council Resolution  
Vessel monitoring system 
Voluntary Partnership Agreements  
World Energy Outlook 
World Health Organisation 
World Intellectual Property Organisation  
Weapons of Mass Destruction  
World Summit on the Information Society 
World Trade Organization  
South Africa  

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