Brussels, 13/05/2016 (Agence Europe) - The increasing number of conflicts, the refugee crisis with which the EU is faced, and the budgetary constraints of member states were uppermost in the minds of the European development ministers when they met in Brussels on Thursday 12 May to have an initial debate on the future direction of the EU's development policy (see EUROPE 11548).
The ministers expressed their desire to integrate both migration and security issues in this policy, just as they did to involve the private sector more, as a vector for multiplying states' public aid, and to continue the joint programming of aid (EU/member states) as a collective instrument contributing significantly to the effectiveness of aid (see EUROPE 11550).
These outlines emerged at the policy debate on the content to be given to the future European Consensus for Development - the framework that since 2005 has established the vision, principles and priorities of development policy, and which is due to be revised in order to adapt it to the implementation of the 2030 global sustainable development goals.
Towards a more complex development policy. “We agree with the ministers on integrating less traditional issues - like migration and security - into our development policies. We will start work on this in the coming months. We are moving towards a much more complex development policy”, High Representative of the EU for Foreign Affairs and Security Policy Federica Mogherini stated at the end of the meeting. She added: “The EU is the top donor. We decided to increase our coordination on joint programming. The results are impressive. We will continue this in the countries that are in crisis - like Libya and Palestine but also, in the future, Afghanistan, Ethiopia and Mali. Joint programming can make the difference in terms of the impact and results on the ground.”
European Commission to make proposals in November. “With €869 million in public development aid provided in 2015, we don't only want to be the biggest provider of funds in the world, but also the best”, European Commissioner for International Cooperation and Development Neven Mimica stated. In his view, three approaches will guide the proposals that the Commission will make in November: - (1) strengthening the link between peace, security and development; - (2) migration and development, and humanitarian action and development; - (3) more effective public development aid from the viewpoint of the use of funds, but also in real terms.
“In being involved alongside the private sector and financial institutions, we can make projects take off. A sort of external investment plan could bring added value to official ODA. We will work with the EIB [European Investment Bank]”, Mimica said.
The key importance of digital in development aid (for example, payment by mobile phone, digital health cards, and the development of social networks to raise awareness of certain health issues) was highlighted during the European development ministers' discussion. On the initiative of Belgium, backed by 13 countries that had written to Mogherini and Mimica, a draft paper on this idea is expected to the subject of an EU working document this year.
Innovative financing. The ministers also talked at length about the innovation in development funding which should see private investors pre-financing certain projects. This is the case, for example, of the “impact bonds” project, an initiative from Belgium and the International Committee of the Red Cross (ICRC), announced at the Davos Forum, for pre-financing a rehabilitation programme for handicapped people. The project will be presented, with the investors (especially insurance companies) at the World Humanitarian Summit in Istanbul on 23-24 May. “We are defining the objectives and measurement indicators. If the objectives are reached, the donors - Belgium and the Netherlands - will repay the capital with a yield. If they are not reached, the yield will be lower and the Red Cross will pay a simple compensation. Financing based on results offers the advantage of mobilising private funds in sectors other than economic. For the state, it's a case of sharing the risk”, Belgium's Deputy Prime Minister and Minister for Development Cooperation Alexander de Croo told press. (Original version in French by Aminata Niang)