2.mod1 ae aidco

EuropeAidIntroduction

Just because you’re doing good, doesn’t mean you’re doing it well.

EuropeAid

“Aid Effectiveness is…?”

EuropeAid

Overview

EuropeAidOverview

What would you do with 50 years and 1.5 trillion euros?

EuropeAid

Helping the poor, to some extent: “a voluntary transfer of resources from one country to another, at least partly given to benefit the recipient country” “acting as a signal of diplomatic approval, strengthening a military ally, acting as a reward for good behaviour desired, to extend cultural influence, or to provide commercial access.”

Helping the poor: “flows of official financing administered with the promotion of the economic development and welfare of developing countries as the main objective.”

Harming the poor: “the billions that have hampered, stifled and retarded Africa’s development.”

Not helping the poor: “when you take money from the poor people in a rich country and give it to the rich people in a poor country.”

EuropeAidA Very Brief History

After the War: What works for Europe…World Bank, IMF, Marshall Plan (‘48-’52: $13bn). Aid to fix the ex-colonies (and maintain influence). Modernise & industrialise…

The Sixties: All we need is industry.State-led. Roads, railways, dams = growth = development but too big and long-term for Gov’s. Plus help the agri sector in the meantime.We’ll be done in a decade. The Seventies: Maybe not… Basic human needs as well as growth. Roads, Schools & hospitals. Oil prices & interest rates = recession = loan payments , commodity prices

Evolution as we learn…or stumbling in the dark?

EuropeAid

The Nineties: It’s the Government, stupidGreed is only good in the private sector. corruption, rule of law, capacity. Aid if you have good policies (Burnside & Dollar). Aid fatigue = volumes

The Noughties: More is Better, Better is Better $50bn by 2010?) MDGs, AE (ownership, budget support), Celebrity Aid, Military Aid.

The Eighties: Greed is good Bring on the market, less Big Government, liberalise don’t subsidise, follow the Asian Tigers. Structural Adjustment in return for a loan to help with your loan. $15bn a year from poor to rich. The lost decade for development?

Today: The Backlash?First on the cuts list, “Africa’s future is up to Africans”, The White Man’s Burden, Why Foreign Aid Isn’t Working, Dead Aid…

EuropeAid

“More than half the people of the world are living in conditions approaching misery…For the first time in history, humanity possesses the knowledge and the skill to relieve the suffering of these people.”

Guess Which Celebrity Said…

US President Harry Truman, 1949

EuropeAidHow Much Are We Talking

About?

EuropeAid

10

Bilateral = 75%, Multilateral = 25%

EC - $13bn (9% of budget)UN – $3.8bnEU - $50bn

Gates - $3bnGlobal Fund - $1.2bn

How Much Are We Talking About?

EuropeAid

UN General Assembly:

Each economically advanced country will progressively increase its official development

assistance to the developing countries and will exert its best efforts to reach a minimum of 0.7% of its gross

national product by the middle of the decade.

1970

EuropeAidDo We Give What We Promised?

By 2010:•$130bn / year

•Aid to sub-Saharan Africa doubled

EuropeAidWho is it Spent On?

EuropeAidWho is it Spent On (EC)?

EuropeAidWho is it Spent On? (EU)

EuropeAidOrphans and Darlings?

Country Income per Person

ODA per Person

Madagascar 320 19

Mozambique 320 43

Guinea 400 12

Tanzania 400 30

Ecuador 3,080 14

Jordan 2,850 64

Historical, political, economic, security…

EuropeAidDoes it Work?

Global GDP per head

Living on < $1 per day

EuropeAidDoes it Work?

Getting by on less than $1 per day…

EuropeAidDoes it Work?

EuropeAidDoes it Work?

Human Development Index

EuropeAid

Gross National Happiness?

Sustainable development Cultural values Natural environment Good governance

EuropeAid

Yes it works! Botswana, Indonesia, Korea, Tanzania…

No it doesn’t!! DRC, Haiti, Papua New Guinea, Somalia…

Let’s ask the economists, does aid lead to growth? Yes, no, maybe. And what about growth & poverty?

It Depends…Policies (Burnside & Dollar), what we do & how, combined effect (direct, policy, institutions & governance, macro-economic stability.

EuropeAidDoes it Work?

Percentage of the world’s population that lives in developing countries: 84

Number of people worldwide who will die today due to poverty: 20,000

Number of children who will die this year from easily preventable diseases: 10,000,000

Number of people without enough to eat today:840,000,000

EuropeAidOverview

“There is no magic bullet. These are just basic problems requiring basic work.” Jeffrey Sachs

EuropeAidWhat are they?2001: 192 UN MS + international organisations agree 8 development goals (not growth!). Aim: halve poverty by

2015.

EuropeAidAre we achieving them?

EuropeAidAre we achieving them?

Some doing well: e.g. Asia (Chinese poor by 200m)Some not doing well: Sub-Saharan Africa.

Growing criticism: arbitrary targets, focus on setting instead of jumping the bar.

Has led to: increased interest in effectiveness of aid & what works on the ground rather than goal-setting.

EuropeAidOverview

“A little less conversation, a little more action please.” Elvis Presley

EuropeAidWhat’s the idea?

EuropeAidWhat’s the idea?

Government Driving

Predictability, Transparency

Results, Accountability

Donors Joined-up

EuropeAidWhat We’re Trying to Get Rid Of

No. of indicators the island of St Vincent has been asked to monitor on HIV/AIDS? 191

No. of donor missions to Ethiopia in 2007?221

Percentage of aid projects that are for less than $1m?80

No. of NGOs working on health in the west coast of Aceh? 22

No. of bank accounts the Mozambique Gov has to have to meet donor requirements? 1,000

Number of aid coordination forums in Senegal? 82

EuropeAidInternational Commitments

2000:

MDGs

2000:

MDGs2002

: F4D

2002:

F4D

2005: PCs2005: PCs

2008: AAA

2008: AAA

2005: G82005: G8

2008:

F4D

2008:

F4D

2008:

MDGs

2008:

MDGs

2003:

Rome

HLF

2003:

Rome

HLF

EuropeAidEU Commitments

2004 – Ad-Hoc Working Party on Harmonisation

2005 – EU Consensus on Development

2006 – More, Better, Faster

2007 – Strategy for Africa

2007 – Code of Conduct on Division of Labour

– Joint Framework for Country Strategies – Financing for Development

2008 – Backbone Strategy on Technical Cooperation

EuropeAidWhat It Means on the Ground

Mozambique - ODAMoz

EuropeAidWhat It Means on the GroundLao PDR – Government-Donor Sector Working Groups

EuropeAidWhat It Means on the Ground

Ethiopia – Division of Labour

EuropeAidWhat It Means on the GroundGeorgia – A Donor Compact

EuropeAidOverview

“If you give a man a fish he will eat for a day. If you teach a man to fish he will always have food. If you teach a woman to fish, the whole family will always have food. And if you just talk about fishing, you’re probably a consultant.”

EuropeAid

IdeasDelivery

Commitments

Technical Cooperation

Division of Labour

The Others

On the Ground & Outside the Box

EuropeAid

Overview

EuropeAid