Letter from Rt Hon Hilary Benn MP
During my evidence session to the Commons' European
Scrutiny Committee on implementation of EC external assistance
in preparation for enlargement on 4 February, you asked about
my views on the Commission's capacity to effectively monitor sector-wide
programmes and the like in the field.
This is a very important question. EC development
co-operation is far from perfect. The EC also faces many of the
same difficulties we do in providing aid through national structures
and systems. But, the reform process in place to make EC aid more
effective should start to address some of the organisation's shortcomings.
There are signs of improved performance in the field, albeit countered
by examples of bad practice elsewhere. With the decentralisation
of management responsibilities entering its final phase, we however
expect, and are noting, some improved local capacity to engage
and co-ordinate. Delivery is also starting to speed up.
Delivering aid through sector-wide programmes
and in the form of direct budget support is in our view the most
effective way to build national capacity and ensure aid supports
national priorities. DFID has adopted this approach and is pressing
the EC to do the same. On the ground, this often amounts to carefully
co-ordinated operations, bringing together all involved donors
and the national counterparts. Increasingly the EC takes part
in this process as it is moving away from a project-oriented approach
to development. The success or failure of sector-wide programmes
then becomes a collective responsibility.
New policy guidance from the EC points to a
more important role for direct budget support and sector-wide
programmes in the future. From sources in the field, we know that
this is starting to happen with an increasing amount of funds
channelled as direct budget support, with or without a specific
sector focus. About 25% of the European Development Fund is now
programmed in this manner. We have also witnessed a correlation
between EC's local capacity and level of engagement in sector
dialogue and programmes. Again, the deconcentration process should
help strengthen capacity in the field.
In my view, reform is a long-term process. We
will therefore continue to press the Commission, other Member
States and the European Parliament to ensure significant results.
Being the world's third largest provider of grant aid, we have
every interest in turning the EC into an effective development
player and a key contributor to the Millennium Development Goals.
With the new Commission taking office later this year, I hope
there is a continued commitment to reform. I will certainly do
my utmost to make this happen.
Hilary Benn
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