Development is about much more than aid, argues ECDPM
On 12 July, the EU’s Accountability report on Financing for Development 2011 was discussed at length in DEVE. Whilst recently missed ODA targets dominated discussions, MEP’s were urged by a representative from the European Centre for Development Policy Management (ECDPM) to look beyond the quantity of aid and instead focus on ‘development effectiveness’ – that is, the quality of aid.
The report released in April 2011 emphasised the failure of member states to reach intermediary goals for Official Development Assistance (ODA). All member states agreed to a collective target of 0.7% of GNI as ODA by 2015, with an intermediary goal of 0.56% by 2010. Whilst ODA levels reached a historic high of €53.8 billion, this represents just 0.43% of ODA. The report also notes ODA levels varied greatly between Member States, with just 9 member states reaching the 2010 target.
Renate Hahlen of DG DEVCO explained to MEPs that the report was well received and a true step forward in transparency for the EU. The official also noted that in comparison to other development donors “we look pretty good” despite missing the 2010 intermediary target by €15 billion. However, Ms Hahlen noted that if aid levels continue to be scaled up at the current rate, it would take 25 years rather than 5 years to reach the 0.7% target. “That means member states need to take extraordinary measures to live up to the commitment”, she added.
However, Ms Hahlen expressed disappointment about the related Council conclusions since they consisted only of the ODA report to the European Council and only partially the ODA commitments. She continued “there was also no reflection on any of the other issues that were covered by the report”. Moreover, the Council Conclusions did not reflect the urgency of actions required for the EU to meet the 0.7% target in 2015, the official argued.
Mr Geert Laporte, Deputy Director of European Centre for Development Policy Management (ECDPM) criticised the EC reports focus on ODA, arguing that the targets set were unrealistic. According to Laporte “Let’s be very realistic, this ODA target will not be reached. We should not have reports where we systematically say that by 2015, in 4 years time, that the EU, in times of economic and financial crisis, will mobilise or spend €50 billion extra on development aid”. The expert therefore welcomed the accountability report, since it advocated a new inclusive approach to finance that looks beyond the quantity of aid. Solutions therefore do not lie in increased aid, but on an approach to development finance for based on co-responsibility of different actors – including traditional and emerging donors, civil society organisations, the private sector and developing countries themselves — to apply a diversity of sources of development finance, stated Mr Laporte.
Moreover, many civil society organisations argue that prevailing financial policy pursued by international organisations is ill fit for poverty reduction, and so development gains will always be minimal no matter the level of aid. David Sogge of the Transnational Institute strongly agrees, arguing “despite their new talk about ‘poverty reduction and growth’, the citadels of the aid system in Washington DC continue pushing the same formulas that frustrate equitable development in poor countries”.
DEVE will table an oral question and resolution on Development Finance in plenary in September.
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