Select Committee on European Scrutiny Twenty-Sixth Report


REFORM OF COMMISSION'S MANAGEMENT OF EXTERNAL ASSISTANCE


(21359)


Commission Communication on the reform of the management of external assistance.
Legal base:
Department: International Development
Basis of consideration: EM of 26 June 2000
Previous Committee Report: None
To be discussed in Council: No date set
Committee's assessment: Politically important
Committee's decision: Cleared on the basis of information supplied by the Government, but further information sought

The Commission Communication

  16.1  We have reported in recent years on a series of assessments and evaluations of EC external assistance programmes, too many to enumerate, which exposed a significant level of inefficiency and lack of impact. In this Communication, the Commission sets out how it proposes to re-organise its management of these external assistance programmes.

  16.2  The Commission Decision to put the changes into effect was adopted on 16 May and, according to the Secretary of State for International Development (The Rt. Hon. Clare Short), implementation was expected to start in June, with the full package of reforms in place by mid-2002.

  16.3  Summarising the document, of which only an early unofficial text is available to us, the Minister says:

"Under the new arrangements a geographical split in the responsibilities of the Directorates General responsible for development will remain. DG Development (Commissioner Neilson) will continue to be responsible for strategy and country programming for the African, Caribbean and Pacific countries and for humanitarian aid. DG External Relations (Commissioner Patten) will be responsible for the EC programmes covering the Mediterranean, Asia, Latin America, the Balkans and the former Soviet Union. DG Enlargement (Commissioner Verheugen) will cover the pre-Accession countries. However, strategy and programming documents will in future need to be approved by the whole Group of Relex Commissioners, i.e. the three above plus Trade (Lamy) and Economic and Monetary Affairs (Solbes), rather than just the lead Commissioner as in the past.

"There will be a new Office, building on the Common Service for External Relations (SCR), and with expanded responsibilities. While Headquarters directorates will be responsible for strategy and programming (allocation of resources and setting criteria for programmes), the new Office will be responsible for project and programme identification, appraisal and implementation. Its board will have Patten (Chairman), Nielson (Chief Executive) and other Relex Commissioners as members. Initially this Office will be within the Commission, but the Communication suggests that it might eventually become a separate agency.

"The new Office will be responsible for implementing 80% of EC aid. However, ECHO (reporting to Nielson) will still administer humanitarian aid; implementation of the Phare Programme will move from the SCR to DG Enlargement from June 2000; and implementation of NGO programmes (Development) and CFSP and Human Rights (External Relations) will probably stay with their DGs.

"A new Quality Support Group will be responsible for quality control and bench-marking across all EC development programmes. It will have a secretariat in DG Development and report to the Relex Group of Commissioners. An evaluation service will be independent of any one DG, and will also report to the Relex Group.

"The Commission are proposing extensive devolution of management and decision making to the EC's network of Delegations. The Commission want to disband their eighty costly and poorly accountable Technical Assistance Offices and instead use programme funds to contract additional staff for headquarters and delegations. Additional staff for delegations will be found by redeployment from Brussels. There is also an intention that partner countries themselves should 'where possible' manage programmes."

The Government's view

  16.4  The Minister says that the Government welcomes these proposals for reform. She comments:

"...Present arrangements are wasteful, poorly managed and ineffective. It is essential for the credibility of EC external programmes that their management should improve radically. Many of the measures set out by the Commission have the potential to increase efficiency, simplify procedures and increase impact. But the extent of reform needed means that success will inevitably be difficult to achieve.

"The re-organisation of EC aid management discussed in this Communication is complemented by wider Commission reforms being overseen by Commissioner Kinnock. These, together, should lead to higher standards. But it is likely that they will take several years to implement and it will be some time before there is evidence of progress on the ground. There are policy as well as management issues which affect the quality and impact of EC Aid. These include the need to convince the Commission and some other Member States that tackling poverty is essential to achieving better stability in the world; to end gesture commitments; and to get the Commission to focus on impact and quality, not just speed of implementation."

Conclusion

  16.5  We also welcome the serious intent demonstrated in these proposals by the Commission to make radical changes to its management of the EC's aid programmes. As the Secretary of State says, there is no doubt that its management needs to improve radically.

  16.6  The timetable for RELEX reform in the draft Action Plan annexed to the Communication is a reassuring sign of this intent. We would be more reassured if it contained commitments to inform the Council of progress, or lack of it where targets have proved difficult to meet. We now clear the document, but we ask the Government to tell us what reports on progress we can expect to receive.


 
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