Gearing up to deliver new, better and faster aid: The new European Aid

Thursday, July 6, 2006 10:30 am to 12pm

Speakers: Koos Richelle, Director General, EuropeAid Co-operation Office, European Commission
Todd Moss, Research Fellow, Center for Global Development
Ruth Levine (Moderator)

Mr. Richelle spoke about ‘fairytales in donorland’ or the shortcomings of the current aid policies and how they could be improved. He began his talk by discussing the recent developments in EU aid policy. Mr. Richelle also mentioned the creation of a new development policy statement for member states. This new policy statement is based on increasing official development aid (ODA), aid effectiveness and policy coherence. A new strategy for Africa has also been developed. This strategy is based on eradication of poverty and more modern means of cooperation.
Mr. Richelle also spoke about how four new instruments were replacing earlier EU programs. The four new instruments are the following:
European Neighborhood Instrument
Development Co-operation Instrument
Instrument for Stability
Instrument for Nuclear Safety
Mr. Richelle briefly mentioned some of the EC’s achievements with respect to aid delivery. 2005, he claimed was a record year on key performance indicators. The majority of aid went to Africa. There was also an increase in the amount of aid supplied to Asia because of the tsunami. The aid delivery system improved because of internal reforms and a push for new aid modalities. Mr. Richelle also mentioned that the EU provides 52 % of all development aid in the world.
However, some of the things that the EU needs to work on is better donor coordination especially since the EU is not one donor but includes 25 member states and the Commission. He also mentioned three approaches to prepare member states and the Commission for better donor coordination in the future. The three are the following a) opening up of procedures, b) sector and budget support and c) mapping.In his talk Mr. Todd Moss raised a couple of concerns regarding the EU’s aid policy. For instance, he mentioned that not enough attention was being paid to the development of entrepreneurship and the private sector in developing countries. He also said that the focus of donor nations should be on impact rather than input.

by Tahseen Alam