Select Committee on International Development First Report


THE FUTURE OF THE EC DEVELOPMENT BUDGET

Coordination and Complementarity

51. The chronic underspends of the Community's development budget reveal an organisation more concerned with political headlines than genuinely effective expenditure. Funds which could make an enormous difference to the eradication of poverty are instead allocated and not spent in an attempt to appease particular interests. We would add a further conclusion to be drawn from this situation. Underspends of this magnitude bring into question the whole approach of the Community to its development work, suggesting serious inefficiencies which have to be addressed. In particular Philip Lowe accepted that there was currently "a deficit at European Union level" in "coordination and complementarity between EC aid and bilateral aid from member states".[101] Clare Short also called for greater coordination with the member states and other multilateral donors[102] and Richard Manning criticised the Community's involvement with "lots and lots of small projects which are quite unmanageable".[103] It is clearly a mistake for the Community to attempt to duplicate work done better and more efficiently by others. Philip Lowe admitted that in current Community programmes "we are much more orientated to infrastructure and much more orientated to social schemes [where] arguably some of our member states would be much better and more innovative in producing results on the ground".[104]

52. Philip Lowe also suggested areas where he thought the Community enjoyed a comparative advantage, including political neutrality, a presence in nearly all developing countries, effective liaison with multilateral institutions in structural adjustment processes, a competence in trade matters and regional integration.[105] He told the Committee that the Austrian Presidency had organised a meeting in October 1998 "which set up an action plan to see how we could better identify these areas where we could develop comparative advantages and save our efforts".[106] Greater coordination and complementarity of development work depends on such an analysis and we recommend that the Community agree with donors a statement of their respective `comparative advantages` in development work. This would not be a legalistic text, nor mechanically applied, but it could well prove a useful basis for a more complementary approach. The German Government has indicated its intention to pursue these issues during its Presidency of the Council. We welcome this and look forward to progress being made.




101   Q130 Back

102   QQ231, 288 Back

103   Q21 Back

104   Q131 Back

105   Q131 Back

106   Q131 Back


 
previous page contents next page

House of Commons home page Parliament home page House of Lords home page search page enquiries

© Parliamentary copyright 1999
Prepared 29 January 1999