Annexes to COM(2010)159 - A twelve-point EU action plan in support of the Millennium Development Goals - Main contents
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This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2010)159 - A twelve-point EU action plan in support of the Millennium Development Goals. |
|---|---|
| document | COM(2010)159  |
| date | April 21, 2010 |
(7) On Tax and development:
– Strengthen the capacities of developing countries for domestic revenue mobilisation through tax reforms and administration. Increase capacity of customs administration of developing countries to contribute effectively to national development goals. Enhance support for initiatives that promote revenue transparency and domestic accountability, such as the ‘Forest Law Enforcement, Governance and Trade’ and the ‘Extractive Industries Transparency Initiative’ and improve donor coordination;
– Promote good governance in tax matters and support fight against tax evasion through international standards, cooperation to facilitate the conclusion and implementation of agreements such as Tax Information Exchange Agreements and, where appropriate, Double Taxation Conventions, adoption and implementation of the OECD transfer pricing guidelines in developing countries and ongoing research on country-by-country reporting standard for multi-national corporations.
2.6. Enhancing regional integration and trade to boost growth and jobs
Regional integration increases political stability and economic prosperity. It helps countries provide public goods that are essential for sustainable development, thereby contributing both directly and indirectly to the MDGs. The EU champions regional integration both politically and financially in its external relations.
Participation in international trade is a major source of the resources needed for developing countries to achieve the MDGs, and must be part of any successful development strategy.
For this, the EU continues to pursue a development friendly design of international trade rules, and to support partner countries’ capacity to participate in global and regional trade, including through the promotion of Economic Partnership Agreements. In line with MDG 8, the EU provides special trade preferences for developing countries, including completely free access to the EU market for everything but arms from LDCs. In addition, the EU continues to ensure that EU bilateral agreements avoid clauses which may undermine access to medicines by developing countries.
The EU and Member States also fulfilled their collective commitment to spend €2 billion annually on Trade Related Assistance, well ahead of the 2010 target date. In addition, they extensively support productive capacity and trade related infrastructure – in 2008 their total Aid for Trade exceeded €10 billion, a very significant increase from 2007.
The EU should build on this success, give more attention to the LDCs and work more strategically and effectively together, as outlined in the respective Staff Working Paper.
(8) On Regional integration and trade:
– Increase support to the development of the private sector, notably through mechanisms such as the ACP Investment Facility and the EU-Africa Infrastructure Trust Fund;
– In the framework of the review of the European Investment Bank’s (EIB) external mandate, strengthen the capacity of the EIB to support EU development objectives, and promote effective blending of grants and loans in third countries;
– Persist in working for a conclusion of the Doha Round, and continue to work on bilateral and regional trade agreements that take into account and properly reflect the different needs of partner countries, including Economic Partnership Agreements;
– Advance further in the delivery of Aid for Trade, enhancing efforts for LDCs, and aid effectiveness and in particular reach an agreement on regional Aid for Trade packages for the ACP before the end of 2010.
2.7. Using Innovative sources of financing to tackle global challenges
Following the economic crisis, and to tackle growing global challenges including the MDGs, budgets and private investments alone may not be able to deliver the resources needed. To provide additional funds in a predictable and stable manner, we also need to fully exploit the potential of innovative financing.
Several innovative mechanisms already build on public-private partnerships and markets to provide a good addition to existing resources and mechanisms for supporting development. Other options are currently being explored in various fora, including the Leading Group on Innovative Financing to Fund Development. The Commission services have also analysed the revenue-creating potential of various mechanisms [21].
Globalisation has generated great benefits for the world economy, but the poorest countries have not exploited all these opportunities yet. Distribution of the new revenues needs to rectify this.
(9) On innovative financing:
– Support proposals for innovative financing mechanisms with significant revenue generation potential, with a view to ensuring predictable financing for sustainable development, especially towards the poorest and most vulnerable countries [22].
2.8. The test case of climate change
Climate change is a massive collective challenge and it affects progress on all MDGs.
The EU is committed to support developing countries in adopting and implementing adequate adaptation and/or mitigation strategies. This is done through strengthening climate change considerations in the development policies, facilitating access of developing countries to low-carbon and climate resilient technologies respectful of intellectual property rights, together with strengthening their knowledge base on climate change and enhancing EU support to related research in and with developing countries. This should allow them to develop cost-efficient ecosystem based approaches to mitigation and adaptation.
In addition, in the framework of the post-Copenhagen negotiations and the Doha Development Round, the EU should continue to promote an improved access to green technology for developing countries, including through further trade liberalisation for environmental goods and services through the reduction and elimination of tariff and non-tariff barriers.
(10) On climate change:
– Implement the EU commitment to provide € 2.4 billion fast-start funding annually for developing countries from 2010 to 2012, and ensure that those funds are programmed and disbursed in accordance with the aid effectiveness agenda. The Commission is ready to take on a role for facilitating the implementation and monitoring coordinated decisions in the EU's fast-start funding commitment [23].
2.9. Development and security
No development is possible without security and no long term security can be ensured without investing in development. Most countries in fragile situation are behind on MDGs, and special effort is needed to deliver aid to such countries in a cost effective way.
(11) On Fragility and Security:
– Support the ‘EU Action Plan for situations of fragility and conflict’ to be proposed in 2010 to better address such situations in a comprehensive and integrated way, and better integrate development objectives in planning and implementation of peace and stability operations.
2.10. Global governance architecture
In the wake of the economic crisis governments around the world have recognised the need for truly inclusive global governance. The international institutional setup is complex and the poorest countries’ interests are often marginalised. The fragmentation of multilateral aid by proliferation of multilateral agencies [24] is another major concern. The EU should give a new impulse to the ongoing work undertaken in various international fora, including the G20, with a view to reforming global governance.
The main challenge is to strike a balance between the legitimacy and effectiveness of global institutions, including through regional representation.
(12) On global governance:
– Support the ongoing reform process for increased UN system-wide coherence and effectiveness, with the aim of progressively rationalising the functioning and reducing the number of agencies;
– Ensure a swift and adequate implementation of the increases in developing and transition countries’ voting shares in the World Bank and IMF; work towards a single European seat as an ultimate objective and strengthen EU coordination, particularly within regional development banks.
3. The way forward
The next five years will be a time of real challenge for European and global development policy. During this period, the EU will need to deliver on its promise of 0.7% of GNI for ODA, and play its full part in ensuring that the MDGs are achieved. At the same time, the EU and the developed world will have to demonstrate their commitment to developing countries on climate change, turning promises into practical and effective action.
However, the coming years are also times of huge opportunity for the developing world. The achievement of the MDGs will give many countries a stepping stone towards a viable and growing economy. There are plenty of success stories on which to build. The emerging EU-Africa Partnership can build on the MDGs and provide a sustainable foundation for growth.
The twelve-point plan outlined above provides a blueprint for the EU’s contribution to meeting these challenges and exploiting these opportunities. The EU should continue to be the world’s largest aid donor, but at the same time be determined to make even better and more efficient use of the aid that it gives. This can only be done by working in partnership with developing countries on issues such as governance and taxation, and with other donors – who need to be as ambitious as the EU. Developing countries, for their part, must be determined to ensure that aid makes a real and lasting difference.
The Commission calls upon the Council and Member States to endorse and actively implement the actions highlighted above. The Commission will monitor and report on the implementation of this twelve-point plan through the EU Financing for Development reporting process. The EU should also call upon all other international donors to ensure fair international burden sharing, as well as to establish their own action plan with a view to raise the global level of ambition on MDGs.
[1] COM(2010) 2020.
[2] Council Conclusions 11096/08, 24.6.2008.
[3] COM(2009) 160 and Council Conclusions 10018/09, 18.5.2009.
[4] See the Commission Staff Working Document on Financing for Development - SEC(2010) 420.
[5] SEC(2010) 418; SEC(2010) 419; SEC(2010) 420; SEC(2010) 421 and SEC(2010) 422.
[6] 0.33% of GNI for the Member States that joined the EU since 2004; 0.7% of GNI for the other EU countries, while Member States which have achieved that target commit themselves to remain above that level. The Commission Staff Working Document on Financing for Development outlines different options for going forward, SEC(2010) 420, chapter 4.5.
[7] Study commissioned by the European Commission, ‘Aid Effectiveness: Benefits of a European Approach’, HTSPE Limited, October 2009.
[8] So-called ‘aid orphans’ are countries with few active international donors and low aid levels.
[9] SEC(2007) 1417 and Council Conclusions 15118/07, 20.11.2007.
[10] European Report on Development 2009, ‘Overcoming fragility in Africa – Forging a new European approach’, http://erd.eui.eu/erd-2009.
[11] COM(2010) 128.
[12] SEC(2010) 121.
[13] COM (2010) 126.
[14] COM(2010) 127.
[15] SEC(2010) 265.
[16] In particular for public financial management, accounting, auditing, procurement, results frameworks and monitoring.
[17] SEC(2007) 1202, SEC(2009) 1137, and Council conclusions 16079/09, 18.11.2009.
[18] SEC (2010) 421.
[19] COM(2010) 163.
[20] From the current very low level of around 15% on average.
[21] SEC(2010) 409.
[22] Paragraphs 23 and 27 of conclusions of the European Council 29/30 October 2009, and 8 of European Council 25/26 March 2010.
[23] COM(2010) 86.
[24] According to the OECD, there are currently more than 260 international organisations eligible for ODA, as against 15 in 1940. There are over 100 agencies which each manage less than USD 20 million annually and collectively account for only 2% of the total core and non-core funding of multilateral organisations.
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