Modernising ODA in the framework of the post-MDG Agenda: Challenges and opportunities

Art.-No.: 2013-28

Erscheinungsjahr: 2013

The year 2015 marks an important milestone in international development cooperation. It is the deadline both for the achievement of the current Millennium Development Goals (MDGs) as well as the European Union’s (EU) formal undertaking to collectively commit 0.7% of Gross National Income (GNI) to Official Development Assistance (ODA). At the same time, a new development framework will be adopted in 2015, which will set the international community’s development agenda until 2030. This represents an opportunity to assess the strategic role of ODA and to adapt it to the changing global landscape of development finance.

The European Parliament in collaboration with the Council and the Commission should develop a common line to support efforts for a coherent framework to financing poverty eradication and sustainable development. The EU should accentuate the transfer character of ODA and support the revision of the ODA concept and reporting in order to avoid the inflation of ODA and allow for transparent accountability of all instrument and sources of Financing for Development focusing in the public contributions. As an initial step the EU should revise the Agenda for Change (AfC) and the Consensus in order to develop a strong vision and to report its own contributions to development and climate financing in a transparent manner.

(Dr. Pedro Morazán, 66 Seiten)


Cost of Non-Europe in Development Policy

Art.-No.: 2013-15

Year of publication: 2013

There is broad agreement among academics and practitioners that the benefits of increased EU coordination in the area of development cooperation would clearly outweigh the costs. The EU is indeed a coordination pioneer, having taken up a number of internal and external commitments. This notwithstanding, much potential remains untapped, in terms of both quantifiable and non-quantifiable benefits. The challenge is how to better realise these while taking into account both political economy factors for the actors involved, namely EU institutions and Member States, and the particular situations of partner countries and their key contributions to coordination efforts on the ground.

(Dr. Pedro Morazán, 136 Pages)


New options for strengthening standards on social and environmental responsibilities of corporations

Art.-No.: 2013-08

Year of publication: 2013

The negative external effects of profit orientated businesses on the environment and society are most visible and destructive in developing countries, where compensation measures for adversely affected groups rarely exist and where high corruption rates often impede meaningful enforcement of existing legislation. But what role can Corporate Social Responsibility (CSR) play in developing countries? How can CSR be generally strengthened by EU policies to contribute to the achievement of sustainability goals in a meaningful manner?

This study is an attempt to get a solid overview of the current situation of CSR at the international level. Strengths and weaknesses of the implementation of CSR are analysed both in general terms and more specifically in a case study on the mining sector in the Democratic Republic of Congo (DRC). The study ends with a suggestion for future policy action to enhance CSR as a complementing tool to legislation for a range of economic, social and environmental challenges. Different actions are outlined and discussed.

(Friedel Hütz-Adams, Antje Schneeweiß, 42 Pages)



Millennium Development Goals and beyond 2015, a strong EU engagement

Art.-No.: 2013-04

Year of publication: 2013

The “United Nations Millennium Declaration”, endorsed in 2000, and the accompanying Millennium Development Goals (MDGs), adopted in 2002, have been important instruments in streamlining and coordinating international development action. Since the targets were defined, significant progress has been achieved in almost all the MDGs but there are also numerous challenges that have not been addressed with the necessary commitment by the various stakeholders. New global realities and challenges have enormous implications on new development strategies. In order to agree on a common UN post-2015 development agenda several options are on the table.

As one of the key actors, the EU has an important role to play in defining a new post-2015 framework. The EU is likely to build on the current MDG approach and to maintain poverty eradication as the central objective. However, it will probably aim at a more balanced and holistic rights-based approach to the three dimensions (economic, social and environmental) of sustainable development than in the current MDG framework. As a main recommendation of the study, the EP is prompted to use its own-initiative report on the post-2015 development framework to encourage the EU as a whole to ensure a bottomup approach at the national level in both developed and developing countries – with a broad participation of the marginalised in particular, so as to guarantee their voices are listened to and their needs seriously addressed.

(Dr. Pedro Morazán, 57 Pages)


Strengthening LRRD in the EU's financing instruments

Art.-No.: 2012-30

Year of publication: 2012

Linking Relief, Rehabilitation and Development (LRRD) tries to harmonize short-term relief and long-term development through effective political and financial coordinating mechanisms. Within the current EU legislative framework, LRRD is broadly considered in the Humanitarian Aid Instrument, whereas the Development Cooperation Instrument (DCI) is characterized by a less systematic commitment to LRRD. The Instrument for Stability was designed as a more flexible instrument that also opens up opportunities for LRRD but it is mainly security driven and has failed to convince practitioners of its LRRD value.  

The analysis of the actual implementation of the European LRRD concept in different partner countries and crisis situations shows that, despite some progress made in recent years, the funding gap in the grey area between relief and development still exists and the coordination and enhancement of LRRD activities is far from being institutionalised.  In the light of the 2014-2020 MFF and the new DCI, the study gives suggestions regarding the legal basis, financing options and general recommendations for the EU’s strategic framework on LRRD. Amongst others, additional resources are needed for LRRD, which should be seen as an approach rather than an option in geographical instruments and respective provisions should be made explicit in Country Strategy Papers.

(Dr. Pedro Morazán, Irene Knoke and others, 53 Pages)


Climate Change Financing: The concept of additionality

Art.-No.: 2012-29

Year of publication: 2012

Due to considerable overlaps between development and climate finance and the danger that funding is diverted from existing development assistance it would be important to define a baseline against which additionality can be measured. So far, no internationally agreed definition exists. The EU could step forward and come to a common approach even if this might temporarily disadvantage Member States under the current reporting practice. Any such definition should build on the commitment to raise ODA levels to 0.7 % of GNI by 2015.

Although incentives are strong to try and count in as much private finance as possible, climate finance should come predominantly from public sources. Especially instruments using public funding to “leverage” private funds should be seen with caution. The funding commitments can be met, but they will likely require a wide range of innovative instruments for new financing to be put in place. Due to the overlaps, climate and development activities should be integrated as far as possible at the operational level. Despite a considerable increase of climate related financing in the proposal for the new instrument for Development Cooperation, it is not clear as to what extent these funds are additional. Therefore, additionality of climate finance should be clearly defined also in the DCI regulations.

(Irene Knoke, 39 Pages)


Increasing the impact of EU development policy

Art.-No.: 2011-06

Year of publication: 2011

This present study is a contribution to the recently launched consultation process on the Green Paper "EU Development Policy in Support of Inclusive Growth and Sustainable Development - Increasing the Impact of EU Development Policy". It provides evidencebased answers to selected questions raised in the Green Paper. In this brief, the authors focus on the topics related to “inclusive growth and sustainable development”, analyzing, in a more general manner, the aspects that relate with development policy impact.

(Dr. Pedro Morazán u.a., 24 Pages)


Discrimination and Development Assistance

Art.-No.: 2010-20

Year of publication: 2010

The present study aims to assess the anti-discrimination policy of EC development cooperation. The key questions are whether development aid is delivered fairly to all without discrimination and to what extent EC development policies contribute to combating discrimination of marginalised groups. Analysis was confined mainly to the conceptual level, examining country strategy papers, thematic strategy papers, communications and guidelines.

Findings were cross-checked through the conduction of interviews with EU officials and civil society representatives. Generally, at policy level, concern for different socially disadvantaged groups and respective anti-discrimination policies have received attention, with the exception of lesbian, gay, trans- and bisexual (LGBT) issues. However, an implementation gap remains between the policy level and execution in practice. This is mainly due to a frequent lack of capacities within the EC delegations in partner countries especially concerning more recent topics, such as disabilities and LGBT. Moreover, participation and empowerment of marginalised groups themselves is not sufficiently being enhanced.

(Irene Knoke and others, 46 Pages)


An inventory of existing mechanisms to comply with aid commitments by member states

Art.-No.: 2010-18

Year of publication: 2010

This study assesses the commitments made by EU Member States to achieve the 0.7% Official Development Assistance (ODA) / GNI target by 2015. The paper analyses the mechanisms that countries have established and their effectiveness to reach ODA targets.

To ensure that the 2015 0.7% target can still be met, renewed political will and the introduction of multi-annual action plans are needed at the national level. The EU has no mandate to introduce binding mechanisms at EU level since budgeting falls within the competence of Member States. To meet the 0.7% target by 2015, the EU, and in particular the European Parliament, should continue to urge Member States to stick to their commitments. Considering the need to speed up their allocations, innovative financing instruments will play a key role for Member States to meet their ODA pledges. At the same time, the study argues that ODA definition criteria should not be broadened further to include specific climate-change related funding or military expenditure as part of ODA.

(Dr. Pedro Morazán and others, 32 Pages)


Monitoring budget support in developing countries. A comparative analysis of national control mechanisms over budget support in developing countries.

Art.-No.: 2010-11

Year of publication: 2010

This study aims to assess the effectiveness of developing countries’ national control mechanisms in overseeing budget support. The key questions deal with the oversight role and effectiveness of parliaments and supreme audit institutions (SAI) and the extent to which the EC assesses and supports parliamentary structures and SAIs when budget support is provided. The research is based on case studies in three countries: Ghana, Burkina Faso and the Dominican Republic.

Overall, parliamentary budgetary oversight is weak in all countries studied and has not significantly improved since the provision of budget support. In addition, within the framework of budget support, parliamentary performance is inadequately assessed, not yet systematically integrated at policy level and receives only limited EC support. Supreme audit institutions, on the other hand, have attracted more donor attention and their performance has improved in all three country cases. To improve public financial management and to strengthen domestic accountability in the long run, institutions outside the executive, including civil society actors, must gain more weight in the design and management of budget support.

(Dr. Pedro Morazán and others, 96 Pages)


Donate now