4 POLICY COHERENCE FOR DEVELOPMENT:
A "WHOLE-OF-UNION APPROACH"
(30918)
13323/09
COM(09) 458
| Commission Communication: Policy Coherence for Development — Establishing the Policy Framework for a Whole-of-the-Union Approach
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| Legal base | — |
| Document originated | 15 September 2009
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| Deposited in Parliament | 18 September 2009
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| Department | International Development
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| Basis of consideration | EM of 7 October 2009
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| Previous Committee Report | None; but see (28929) 13135/07: HC 41-xxxv (2006-07), chapter 8 (17 October 2007); also see (26496) 8137/05; (26497) 8138/05; and (26498) 8139/05: HC 34-v (2005-06), chapter 4 (12 October 2005)
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| To be discussed in Council
| 17-18 November 2009 General Affairs and External Relations Council
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| Committee's assessment | Politically important
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| Committee's decision | Not cleared; further information requested
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Background
4.1 Policy Coherence for Development (PCD) recognises that aid
alone cannot address the needs of the developing world; that there
is a need for greater coherence in policies across sectors that
affect developing countries, with policy in areas like agriculture,
trade, investment, migration and others having a profound impact
on developing countries, yet often working at cross-purposes.[18]
4.2 The policy framework was set in 2005, as part
of the package of measures adopted to accelerate progress towards
the Millennium Development Goals — in particular Commission
Communication 8137/05: "Policy Coherence for Development:
accelerating progress towards attaining the Millennium Development
Goals" [19]
— and the European Consensus on Development.[20]
The 12 EU-recognised PCD areas:
— Trade;
— Environment;
— Climate change;
— Security;
— Agriculture;
— Fisheries;
— Social dimension of globalisation, employment
and decent work;
— Migration;
— Research;
— Information Society;
— Transport; and
— Energy.
4.3 In chapter 9 of this Report we consider the second
biennial Report by the Commission on its and Member States' performance
so far.[21] There, the
Commission says that reporting on PCD progress in the 12 policy
areas "has been important as a way to raise awareness and
to demonstrate the importance of the broader EU policy agenda
for development", and the strengthening of the PCD instruments
was necessary in order "to better harness the potential of
EU policies for development." However, in order to make real
progress:
"the EU needs to change its approach. Rather
than monitoring the impact of all policies on developing countries
the EU could promote PCD more effectively through a more focussed
approach. The EU should select some key development challenges,
analyse how it can contribute to achieving them through the broad
array of its policies and instruments, and ensure political mobilisation
around these challenges.
"In this third phase the EU should also
move towards a partnership approach to PCD. The EU and developing
countries could for instance launch a reflection on the consultation
mechanisms provided for in the impact assessment guidelines, the
Cotonou Agreement and possibly also the Africa-EU Partnership
and improve them if necessary."
The Commission Communication
4.4 The Commission says that although there is clear
evidence of the importance of PCD, and although there is a general
commitment to PCD, as evidenced by Council Conclusions in May
2005 and Nov 2007, and the European Consensus on Development,
sustaining the development aid effort requires Official Development
assistance (ODA) to be complemented by other financial sources;
and that harnessing the development potential of these additional
financial flows depends on efforts by developing countries and
their external partners such as the EU to "design development
friendly policy frameworks".
4.5 Three key factors are identified: "developing
countries own policies; development cooperation; and the global
policy framework, including EU policies and their impact on developing
countries." "Acknowledging the importance of all three
categories", this Communication seeks to look at the EU's
approach to PCD and "make suggestions to the Community and
the Member States on how to use PCD in a more targeted, effective
and strategic way."
4.6 Though the PCD commitments agreed in 2005 have
provided "a useful framework for the EU's PCD work so far,
… new developments make it necessary to rethink our approach
to PCD":
— The
growing impact of internal policies in external relations:
Closer interactions and ever intensifying globalisation means
that the impact of other EU policies on developing countries has
become much more systematic; as the dividing line between external
and internal policies is becoming more blurred, the concept of
PCD needs to be taken into account more systematically;
— Growing non-ODA financial flows to
developing countries: the total financial flows to developing
countries are much larger than Official Development Assistance
(ODA); their impact on development depends on the quality and
"development-friendliness" of the policy framework;
— Using the EU's strengthened PCD mechanisms
and prioritisation: progress reports thus far have developed
awareness and expertise, resulting in the EU being in a position
to take "a more pro-active and focussed approach";
— The developing countries' perspective:
Developing countries are becoming increasingly interested in broader
EU policies; PCD has been notified by both sides as an issue for
the 2010 revision of Cotonou. In the meantime, revised Commission
guidelines for Impact Assessment underline the importance of ensuring
that stakeholders in developing countries are informed about forthcoming
initiatives.
4.7 The Commission accordingly proposes that the
EU should develop a "Whole-of-the-Union" approach by
"establishing a policy framework to better harness other
policies and non-ODA financial flows to development objectives."
Three key lessons need to be taken into account in adjusting PCD
"to the changing political reality":
— focus
on a few PCD priorities and "pro-actively take account of
development objectives in formulating its selected initiatives;
— do more to mobilise non-ODA resources
and better harness the potential of these public and private financial
flows for development;
— strengthen dialogue with developing countries
on PCD issues.
4.8 In close cooperation with the Member States the
Commission will accordingly "elaborate a PCD work programme
identifying the priority issues and outlining how the EU through
all its instruments and processes contribute to development objectives".
The aim would be "to create the political momentum, identify
the financial means needed for the PCD priority issues, and help
develop a clear set of objectives and targets."
4.9 The Communication goes on to propose a focus
on specific global challenges:
— combating
climate change;
— ensuring global food security;
— making migration work for development;
— seeking opportunities to use intellectual
property rights for development;
— promoting security; and
— building peace for development.
4.10 The criteria for these choices are that the
issue must:
— be
high on the EU's agenda;
— be important for developing countries
and the attainment of the MDGs;[22]
— present concrete opportunities for incorporating
development objectives; and
— be linked to a long term agenda.
The Government's view
4.11 In his Explanatory Memorandum of 7 October 2009,
the Minister of State at the Department for International Development
(Mr Gareth Thomas) says that although this Communication narrows
the focus of PCD "it provides little tangible detail on how
this will make PCD more effective or how the Commission will concretely
implement it." He says that he "will push for these
details to be set out in the forthcoming Council Conclusions."
4.12 The Minister nonetheless welcomes "in broad
terms … the overhaul of the PCD framework and in particular
welcomes the recognition of the need for an increased voice for
developing countries in broader EU policies."
4.13 The Minister also professes himself "pleased
to see the Commission focus PCD on the major global challenges
to development such as climate change and growth and fragility,
which draw together many strands of PCD and help to give it a
practical application."
4.14 He also recognises the importance of non-ODA
financial flows for development, especially in middle-income countries.
But he is "concerned about any potential re-opening
of the ODA definition, which would distract attention from the
need for donors to meet their existing targets".
4.15 The Minister would also like to see "more
information on how the 'whole of the union' approach proposed
by the Commission impacts on different developing countries (for
instance Middle Income Countries as opposed to Low Income Countries)",
and says that "it is a UK priority that the focus remains
on poverty reduction and on attainment of the Millennium Development
Goals."
4.16 Finally, the Minister says that the Communication
is currently under consideration by the Development Cooperation
Working Group, and expects Council Conclusions on this Communication
to be agreed at the 17th and 18th November
2009 GAERC.
Conclusion
4.17 The Minister has made his concerns clear.
We would like the Minister to write to us ahead of the GAERC meeting
with details of the Conclusions that he expects to be adopted,
which we hope will meet them. In the meantime we shall retain
the document under scrutiny.
4.18 We also noted in our consideration of the
related the Commission Communication, 13468/09, EU 2009 Report
on Policy Coherence for Development, that we understand that
the Conclusions will also incorporate Conclusions on that Report.
We reiterate the hope that we expressed there: that they will
again provide both a basis upon which both to drive this important
process forward and assess progress in two years time, and that
he or his successor will provide his views on their success in
doing so.
18 See http://www.oecd.org/department/0,3355,en_2649_18532957_1_1_1_1_1,00.html
for further discussion of PCD. Back
19
Which we considered on 12 October 2005, see headnote, and which
were debated in European Standing Committee on 3 November 2005. Back
20
Joint Statement by the Council and the representatives of the
governments of the Member States meeting within the Council, the
European Parliament and the European Commission - 'The European
Consensus on Development', December 2005 (OJ 2006/C 46/01). Back
21
(30920) 13468/09: Commission Communication: EU Report on Policy
Coherence for Development. Back
22
The Millennium Development Goals (MDGs) are eight goals to be
achieved by 2015 that respond to the world's main development
challenges. The eight MDGs break down into 21 quantifiable targets
that are measured by 60 indicators: Goal 1: Eradicate extreme
poverty and hunger; Goal 2: Achieve universal primary education;
Goal 3: Promote gender equality and empower women; Goal 4: Reduce
child mortality; Goal 5: Improve maternal health; Goal 6: Combat
HIV/AIDS, malaria and other diseases; Goal 7: Ensure environmental
sustainability ; Goal 8: Develop a Global Partnership for Development.
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