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Significant new EU support for Latin America announced

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cfda07afa91cc1be08dd41c18fc5a9a5Development Commissioner Andris Piebalgs will today (24 March) announce new EU support of €2.5 billion for Latin America for the years 2014 to 2020 (including funding for regional programmes, and for the bilateral envelopes to the eligible countries).

The new financial package, which is part of the Development Co-operation Instrument, now published, will be discussed today at the EUROsociAL conference in Brussels, where decision makers and high level representatives from the EU and Latin America will come together to discuss future cooperation between the two regions.

Ahead of the event, Commissioner Piebalgs said: "This aid package marks a new step in the way we work with Latin America, and sends a very strong signal of our commitment to continuing to support the region’s development efforts. We are not turning our back on this continent; we are looking forward with it, together.

“I’ve visited Latin America several times recently and have been very proud to see the EU’s contribution to the impressive progress the continent has made over the last decade. I’m convinced that this new chapter in our relationship will see our partnership flourishing.”

The new regional funding will be focused on the areas where it can make the greatest difference; which have been identified in consultation with the Latin American partner countries:

• Security;

• good governance, accountability and social equity;

• inclusive and sustainable economic growth;

• environmental sustainability, resilience and climate change;

• education and training programmes for young peoples under Erasmus+, and;

A sub-regional programme for Central America is also included in today's package.

In line with the Agenda for Change – the Commission’s policy blueprint to focus aid on those countries which need it most and sectors where it can make the biggest difference – the EU has reshaped the way that it works in Latin America. This means a more strategic partnership between the two going forward, in which the two regions seek solutions to common challenges (e.g. climate change) via regional cooperation.

Today's funding comes from the Development Co-operation Instrument (DCI), which is part of the overall EU budget.

18 countries (Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Cuba, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, Uruguay, Venezuela) are covered by the DCI and eligible for these regional funds.

At the same time, bilateral co-operation with countries facing the greatest challenges in Latin America (Bolivia, El Salvador, Guatemala, Honduras, Paraguay and Nicaragua) will remain significant. Moreover, Colombia, Ecuador and Peru will benefit from bilateral funding, which will allow for a very gradual phase out.

EUROsocial: A flagship programme for social cohesion in Latin America

Despite significant recent growth, inequality remains one of Latin America's most important challenges.

EUROsociAL has become the European Union's flagship programme in Latin America for social cohesion. Under the motto 'Supporting policies, connecting institutions' it brings together political decision-makers and high-level public servants from European and Latin American public administrations to develop and implement policies to reduce social inequalities.

EUROsociAL takes an innovative approach that produces measurable results despite a relatively small budget, divided among 18 partner countries in 10 thematic areas. Total EU contribution amounts to €70 million (€30m during its first phase, from 2004-2009, and €40m during the second one, from 2011-2014).

It actively fosters ‘South-South’ cooperation in Latin America (i.e. when knowledge based on previous cooperation and adjusted to the specific conditions in a neighbouring country has been transferred from one Latin American country to another) – spending on which is expected to top €10 million during the programme’s second phase.

It is also results-based, supporting only actions that have clearly formulated goals and are part of broader public policies. For example, some tangible results include supporting the reform of the labour information system in Colombia to better match labour market demand and supply, contributing to the introduction of a new law for handicapped people in Honduras and helping to implement a new policy on fiscal education in Brazil. It has also fostered many regional initiatives in Latin America, in areas as diverse as tax administration, regional development, justice and social and economic dialogue.

Regional co-operation with Latin America

A number of strategic priority areas for the EU’s regional cooperation with Latin America have been identified in consultation with the Latin American countries. They include:

- Inclusive and sustainable economic growth, addressing structural weaknesses, acute economic inequality and over-reliance on extraction of natural resources;

- reconciling environmental sustainability with continued development in a region that is highly vulnerable to climate change and natural disasters;

- capacity-building (eg providing training and sharing expertise) of state institutions responsible for security and rule of law, so as to enhance human rights and gender equality, build public trust and strengthen the social contract needed for development to succeed, and;

- improvements in governance, accountability and tax collection and spending, so as to tackle inequality, increase social cohesion and respond to the growing social demand for quality public services.

More information

EU co-operation with Latin America: MEMO/14/213
Commissioner Piebalgs' website
EUROsociAL website

 

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#AfricaEuropeAlliance - Boosting sustainable energy investments in #Africa

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A new high-level platform initiative brings together key players in the sustainable energy sector from the public and private sectors of both Europe and Africa.

At the Africa Investment Forum in Johannesburg organized by the African Development Bank, the European Union and the African Union have launched the EU-Africa high-level platform on sustainable energy investments in Africa.

During his State of the Union speech President Juncker has announced the new 'Africa – Europe Alliance for Sustainable Investment and Jobs' to substantially boost investment in Africa, strengthen trade, create jobs, and invest in education and skills. The high-level platform that was set in motion today represents a concrete action under this alliance to boost strategic investments and strengthen the role of the private sector.

Internal Market, Industry, Entrepreneurship and SMEs Commissioner Elżbieta Bieńkowska said in Johannesburg: "If we are serious about sustainable energy investments in Africa, we need everybody on board, including the private sector. The high-level platform will pave the way for that: experts from the public, private, academic and financial sectors will jointly discuss challenges and barriers to sustainable investment in this area and help to address them.”

The High Level Platform brings together public, private and financial operators as well as academia from Africa and Europe. They will examine challenges and strategic interests that could accelerate impact, especially for sustainable growth and jobs. The high-level platform aims to attract and boost responsible and sustainable private investments towards sustainable energy in Africa.

A concrete outcome of the high-level platform launch event was the announcement of three streams of work, 1) identify energy investments with high impact for growth and job creation, 2) analyse energy investment risks and propose policy guidelines for a sustainable investment and business environment and 3) boost exchanges between African and European private sector.

Background

By bringing energy actors from the private and public sectors together from both continents, the high-level platform will foster the partnership between European and African businesses, and support the 'Africa- EU Alliance for Sustainable Investment and Jobs'. It will help to make most of opportunities around sustainable energy investments in Africa, as well as to better address challenges and key barriers that currently hinder it.

The Africa Investment Forum in Johannesburg took place from 7-9 November 2018 and was organized by the African Development Bank. The Forum is the place where project sponsors, borrowers, lenders, and public and private sector investors come together to accelerate Africa's investment opportunities – especially the energy sector.

The 'Africa-Europe Alliance for Sustainable Investment and Jobs' builds on the commitments taken during the African Union – European Union Summit, which took place in November last year in Abidjan, where the two continents agreed to strengthen their partnership. It sets out the key strands of action for a stronger economic agenda for the EU and its African partners.

Access to sustainable energy plays a fundamental role in development. The objective of the 2030 Agenda for Sustainable Development is to give universal access to affordable, reliable, modern energy services. The EU is determined to help partner countries to increase renewable energy generation and to diversify their energy sources ensuring the transition to a smart, secure, resilient and sustainable energy system for all. Mobilization of the private sector is crucial for this endeavour.

More information

Africa-Europe Alliance

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EU boosts aid to drought affected countries in #HornofAfrica

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The European Commission has announced additional humanitarian assistance of €60 million to help people in Somalia, Ethiopia and Kenya, who have been facing critical levels of food insecurity due to severe drought.

This additional assistance brings EU humanitarian aid to the Horn of Africa region (including Somalia, Ethiopia, Kenya, Uganda, Djibouti) to nearly €260m since the beginning of the year.

"The situation in Horn of Africa has drastically deteriorated in 2017 and it keeps getting worse. Millions of people are struggling to meet their and their families' food needs. The risk of famine is real. The European Union has been following the situation closely since the very beginning and progressively increasing aid to the affected populations. This new package will help our humanitarian partners scale up the response further and keep bringing lifesaving assistance to people in need," said Humanitarian Aid and Crisis Management Commissioner Christos Stylianides.

The newly announced EU assistance will support humanitarian partners already responding to the needs of the affected populations to step up emergency food assistance and treatment of malnutrition. Projects addressing water supply, livestock protection and response to outbreaks will also be supported. The bulk of the funding (€40m) will go to help the most vulnerable in Somalia, while €15m will go to Ethiopia and €5m to Kenya.

Background

Millions of people in the Horn of Africa are affected by food insecurity and water shortages. Vegetation is sparse. Livestock deaths, high food prices and reduced incomes are being reported. As a result of the poorly performing rainy season, the next harvests will be greatly reduced and the situation is expected to worsen in the coming months.

The drought comes on the heels of erratic weather caused by the El Niño phenomenon in 2015-16. In Ethiopia, it prompted the biggest drought response operation in the country's history.

The region also hosts 2.3 million refugees – the majority of whom are from Yemen, South Sudan, and Somalia - and is struggling to meet their increasing needs.

Since 2011, the EU has allocated over €1 billion in humanitarian aid to its partners in the Horn of Africa. EU funding has helped to provide food assistance, health and nutrition care, clean water, sanitation, and shelter to those whose lives are threatened by drought and conflict.

However, aid for the drought-affected populations is complicated by the remoteness of certain areas, as well as by the ongoing violence in Somalia. All parties to the conflict are therefore urged to provide unimpeded humanitarian access to people in need.

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EU Official #Development Assistance reaches highest level ever

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New figures confirm that the European Union and its member states have consolidated their place as the world's leading aid donor in 2016.

Preliminary OECD figures show that Official Development Assistance (ODA) provided by the EU and its member states has reached €75.5 billion in 2016. This constitutes an 11% increase compared to 2015 levels. The EU's assistance has increased for the fourth year in a row and reached its highest level to date. In 2016, EU collective ODA represented 0.51% of EU Gross National Income (GNI), having increased from 0.47% in 2015. This is significantly above the 0.21% average of non-EU countries that are members of the Development Assistance Committee (DAC).

The European Union and its Member States have hence again consolidated their place as the world's leading aid donor in 2016.

Commissioner for International Cooperation and Development, Neven Mimica, said: “I am proud that the EU remains the world's leading provider of Official Development Assistance – a clear proof of our commitment to the UN Sustainable Development Goals. We call on all development actors to re-double their efforts to do likewise. And we do not stop there. Leveraging private sector investments, helping mobilise domestic resources and intensifying joint efforts with EU member states, we seek to make the most of all financing sources for development."

In 2016, five EU Member States provided 0.7% or more of their Gross National Income (GNI) in Official Development Assistance: Luxembourg(1.00%), Sweden (0.94%), Denmark (0.75%), Germany (0.70%), who has reached the target for the first time, and the United Kingdom(0.70%). Sixteen EU member states increased their ODA compared to their GNI, while 5 member states reduced their ODA and 7 remained at the same level as last year. In total, 20 member states increased their ODA nominally by €10.9 billion, while the decreases in 6 others amounted to €3.4 billion.

In 2016, faced with an unprecedented migration crisis, the EU and its member states were able to increase both their support to refugees as well as their 'development aid' to developing countries. The overall increase in European Union Official Development Assistance, with €7.6 billion, was greater than the surge in in-donor refugee costs €1.9 billion. Only 25% of the growth of EU Collective ODA between 2015 and 2016 was due to in-country refugee costs, hence, there was growth in ODA, even if these costs are excluded. EU collective ODA excluding in-country refugee costs grew from €59.1 billion in 2015 to €64.8 billion in 2016, constituting a 10% increase.

Background

Official Development Assistance remains a vital source of financing for many developing countries, but it is clear that efforts have to go much further. This vision, of how development financing should evolve to support the 2030 Agenda for Sustainable Development, is agreed in the Addis Ababa Action Agenda[1] (AAAA).

In support of this agenda, the European Union (EU) seeks to increaseresources for sustainable development, including through:

-                 Domestic resource mobilisation

-                 Leveraging private sector resources at domestic and international level to mobilise finance for the development of the private sector

-                 Stepping up joint programming efforts between the EU and its Member States as a way to improve efficiency, ownership and efficacy of development cooperation.

In 2005, the EU and its member states pledged to increase their collective ODA to 0.7% of EU Gross National Income (GNI) by 2015. Even though the economic crisis and severe budgetary pressures in most EU member states meant that the EU did not meet this ambitious target in 2015, there has been continuous real growth in European ODA of almost 40% since 2002. In May 2015, the European Council reaffirmed its commitment to reaching this target before 2030. The EU also undertook efforts to collectively meet the ODA target of 0.15-0.20% of GNI to Least developed Countries in the short term, and to reach 0.20% of ODA/GNI to LDCs by 2030.

The ODA pledge is based on individual targets. Member states which joined the EU before 2002 reaffirmed their commitment to achieve the 0.7% ODA/GNI target, taking into consideration budgetary circumstances, whilst those which have achieved that target committed themselves to remain at or above that target. Member states which joined the EU after 2002 committed to strive to increase their ODA/GNI to 0.33%.

The data published today is based on preliminary information reported by the EU Member States to the OECD and to the EU Commission. EU collective ODA consists of the total ODA spending of the 28 EU Member States and the ODA of EU institutions not attributed to individual Member States (i.e. own resources of the European Investment Bank).

In-donor refugee costs reported by EU Member States rose from €8.8 billion (or 12.9% of collective EU ODA in 2015) to €10.7 billion (or 14.2% of collective EU ODA in 2016). The increase of EU ODA dedicated to finance in-donor refugee costs reflects the fact that in 2015 and 2016, many EU countries, faced with an unprecedented increase in refugees, provided vital emergency assistance and support to large numbers of refugees within their borders. Most of the related costs[2] can be recorded as ODA only for the first year of a refugee's stay.

There are 30 members of the Development Assistance Committee (DAC), including the European Union, which acts as a full member of the committee.

More information:

Factsheet: Publication of new figures on 2016 Official Development Assistance

Annex: Achieving the 2030 Sustainable Development Goals: Putting together the means of implementation; highlight on EU early achievements in three key areas

OECD Press release

[1] The Addis Ababa Action Agenda (AAAA) was agreed at the third United Nations International Conference on Financing for Development in July 2015

[2] See: http://www.oecd.org/dac/stats/38429349.pdf, line I.A.8.2 Refugees in donor countries (code 1820)

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