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Background information on new EU development policy

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Thursday, 20 October 2011

Background information on new EU development policy

Why does EU development policy need to be changed?

Europe and the world are facing far-reaching political shifts; the world is going through economically uncertain times. At the same time, the challenges we face are becoming ever more complex and not enough progress is being made towards eliminating poverty. To make sure that EU policy has the greatest possible long-lasting impact on reducing poverty, it must refocus its efforts.

The context of development cooperation is changing. New actors are become increasingly involved in development cooperation, including the private sector; large emerging countries are becoming active as donors and some of them establishing their own cooperation agencies. Finally, the EU has undergone institutional changes with, among other things, the establishment of the European External Action Service. […]

Recent developments in food and commodity prices show that the exposure of developing countries to shocks arising from climate change and volatile food and energy prices needs to be better addressed, for example with investments in areas such as agriculture and energy.

Studies have shown that billions of Euros could be saved if donors coordinated their work better. The EU and international donors have already made considerable efforts in recent years to harmonise their activities, in order to avoid duplication and increase the impact of their work. But more work is needed in coordinating and making sure that labour is divided sensibly among the different actors.

Budget support will continue to be an important instrument of EU development cooperation, but the Communication also aims at modernising the budget support approach in order to improve its quality, value for money and impact. Budget support will strengthen the contractual partnerships with developing countries in order to build and consolidate democracies, pursue sustainable economic growth and eradicate poverty.

Source: European Commission