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Consultation on the Commission Green Paper on EU Development Policy Contributions about growth and development Sven Kühn von Burgsdorff Development and Cooperation - EuropeAid Green Paper EU development policy “ EU development policy in support of inclusive growth and sustainable development Increasing the impact of EU development policy” COM(2010)629, 10/11/2010 4 pillars 1. Ensuring EU development policy has high impact 2. Promoting more, and more inclusive, growth 3. Using climate change and energy policies to drive sustainable devt. 4. Developing agriculture to achieve food security & boost growth Development and Cooperation - EuropeAid Green Paper EU development policy • Aid is not a panacea – ODA is indispensable but only part of the solution – ODA has maximum impact when it supports partner countries’ own efforts to generate inclusive growth and mobilise their resources for poverty reduction – More differentiation is needed Development and Cooperation - EuropeAid Green Paper EU development policy Ensuring development policy has high impact If we are going to increase the impact of our development policy we must: 1. Help put in place the « conditions for success » : human development, security and good governance, growth and social inclusion. This is about leveraging policy change in partner countries and leveraging financial resources, both from donors and from domestic sources. and 2. Improve the way we deliver development cooperation: e.g. using differentiated approaches according to countries’ capacities and levels of development; co-ordinating better; striving for optimal aid effectiveness; improving Policy Coherence; capturing results. Development and Cooperation - EuropeAid Green Paper EU development policy Joint strategies for more, and more inclusive, growth involving partner countries, private sector, …. promoting & supporting investments, access to capital & credit, legal & regulatory frameworks, innovation, decent work & social protection;. Using climate change and energy policies to drive sustainable development how to harness the benefits of improved energy access for growth and development while ensuring sustainable, green growth Developing agriculture to achieve food security & boost growth maximising the contribution of agriculture to green growth and supporting the fight against hunger and malnutrition: achieving a win-win Development and Cooperation - EuropeAid Consultation Statistics • • • 238 written responses plus consultation events with MS, economic & social actors, Committee of the Regions, European Parliament, international organisations wide range of stakeholders: MS, other donors, partner countries, regional/local authorities, parliaments, NGOs, private sector, international organisations, think tanks & academics, and individuals – vast majority of responses from NGOs: 42% – reasonable response from the private sector: 13% – interesting to see many local and regional authorities (mobilised by Committee of the Regions), from EU and partner countries: 7% – limited response from governments in partner countries: 4% - but numerous consultation events organised by EU delegations – would have liked to have seen greater engagement by parliaments – many responses very detailed analysis ongoing – contributions are online, report to be published later in the spring Development and Cooperation - EuropeAid Responses from Member States • Poverty objective is paramount. Growth is not the overall aim but a means to an end, that end being poverty reduction. • Sustainable development and poverty eradication only possible through a sustainable growth of the economy: public-private partnerships, investments in sustainable and renewable energy, infrastructure, agriculture/food security and aid for trade. • Socially inclusive growth, complete with local ownership must guarantee a role not only for elected representatives, but also active involvement of civil society as an effective partner for development. Development and Cooperation - EuropeAid Responses from NGOs • Acknowledge the importance of growth but insist that growth alone is not enough and cannot of itself be a measure of human development • Growth without effective redistributive policies and social protection systems, has often led to increased inequality and increases in absolute and relative poverty. • Economic growth is an important factor for development if truly inclusive, and applied alongside policies to ensure democratic governance and empowerment. Democratic governance is only possible with an active civil society, working in the interests of the poor and marginalised. • Need for pro-poor growth, based on decent job creation, functioning health services, universal access to education, a productive agriculture, and good governance. Development and Cooperation - EuropeAid Some other stakeholders • Partner countries: – promotion of governance in developing countries: the involvement of civil society is crucial. – Development aid should support growth through a focus on attracting trade and investment and enhancing competitiveness • Private sector: – importance of rational, stable and predictable legal, financial and fiscal frameworks as pre-requisites for developing both local and international business investments, trade and commerce. Development and Cooperation - EuropeAid