On Wednesday 3 July, the European Commission presented the initial results of the Inequality Marker (I-Marker), which was launched in June 2023.
In the context of European development policies, the I-Marker aims to determine the extent to which the reduction of inequalities is an objective of a donor’s intervention and whether this intervention is designed to benefit the most socio-economically disadvantaged groups.
Three categories have been selected by teams from the Commission’s Directorate-General for International Partnerships (DG INTPA) and academic researchers involved in developing the marker: - inequality reduction is not targeted; - reduction is as significant objective; - reduction is the principal objective.
The first results of the marker show that in 2023, 59% of the 339 projects funded by the Neighbourhood, Development and International Cooperation Instrument (‘NDICI-Global Europe’) had a ‘substantial focus’ on reducing inequalities.
By income category, 77% of new projects in low-income countries had a “substantial” focus on reducing inequality, which was either a “significant” objective or the “principal” objective.
The percentage is 70% in lower-middle income countries and 69% in upper-middle income countries.
From a regional perspective, 76% of new projects in sub-Saharan Africa “substantially” contributed to reducing inequality. In Latin America and the Caribbean, 61% of projects were aimed at reducing inequalities, and in Asia and the Pacific, 59%.
In an interview with Agence Europe on Wednesday 3 July, the European Commissioner for International Partnerships, Jutta Urpilainen, outlined the possibilities offered by this new reference framework. At the end of her mandate, the Commissioner will take stock of the ‘Global Gateway’ strategy and the challenges ahead in terms of development cooperation. (Interview by Bernard Denuit).
Agence Europe: Commissioner, what are your conclusions on the findings of the I-Marker?
Jutta Urpilainen: We still have room for improvement. Ideally, almost 100% of our activities would clearly aim to reduce inequality. Given that this was our first time using the I-Marker, the results are quite good.
The tool was launched in June 2023, after 3 years of preparation. Could the Commission develop other indicators to help respond to the United Nations’ Agenda 2030 for Sustainable Development (SDGs)?
It’s important to consistently use the I-Marker in all our activities. We started with projects funded last year, but I hope it becomes a permanent criterion for all EU-funded projects. I’d like it to assess projects funded through the European Fund for Sustainable Development Plus (EFSD+). The I-Marker is not the only tool we use in order to assess the impact of our activities.
A report by the Social Democrats (S&D) highlighted disparities between the European Commission’s Annual Action Plans and their implementation by partner countries, especially regarding poverty and inequality (see EUROPE 13389/37). How can the Commission ensure that its projects impact the targeted populations? What is your reaction to these conclusions?
I haven’t seen the report, so I can’t comment directly. However, 35% of our external funding goes to climate-related projects. Increasing funding for human development, particularly education, is a priority. We’ve increased education funding from 7% to 13%. When prioritising these policy sectors like education or health, we expect the impact on inequalities, because these are basic services which normally are benefiting for ordinary citizens and the most vulnerable. We expect these sectors to impact inequalities positively, and the I-Marker helps us assess this.
The ‘Global Gateway’ was launched in December 2021. What is your assessment of this strategy so far? Will any adjustments be needed in the next Commission mandate? Are there areas where this strategy is less effective?
It’s progressing well, with 225 flagship projects adopted. Our goal is to mobilise €300 billion in investments globally by 2027, with specific targets for Africa, Latin America, the Caribbean, Central Asia, and Southeast Asia. My personal assessment and estimation is that one-third of the investments have been mobilised.
This is a very new way of working, because it’s based on this Team Europe. This new way of working involves close cooperation with 27 Member States, development finance institutions, and the private sector.
Mobilising private investment seems to have become the new paradigm for Official Development Assistance (ODA).
It is definitely. Very much is needed if we want to achieve and reach sustainable development goals, because the reality is that we cannot achieve those goals only with public resources. We also need private resources. This approach also incentivises European companies to invest in regions like Africa, Latin America, the Caribbean, and Asia.
You recently stated that we are faced with a world in “polycrisis”(see EUROPE 13444/15). Some believe that the EU is losing its importance on the international stage. The Strategic Agenda now aims to strengthen the EU’s competitiveness and defence policy. Are we witnessing a change of direction in the EU’s foreign policy?
I am convinced that our European leaders understand that we need to adopt a balanced approach and that we need international cooperation to secure our future. For example, to invest in our competitiveness, we need partners in the global south for essential raw materials and cooperation on green energy.
The Samoa agreement was the subject of lengthy negotiations. The agreement has been provisionally applied since January. What progress has been made on ratification by the 79 partner countries?
Some countries in the ACP Group have not yet ratified, but we are making good progress.
Your term of office is coming to an end. What do you intend to do?
I have 20 missions left before the end of my mandate. For the moment, I’m concentrating on my current work. Then we’ll see what happens, what the world and life have to offer.