Work
02.September 2004 - 00:00
Reducing poverty through Community action
The Union is committed to the goals charted in the UN Millennium Declaration, in other words to reducing world poverty. In their statement on Union development policy the Council and Commission have affirmed that poverty reduction has to be the prime objective in Community development cooperation as a whole (see http://europa.eu.int/comm/development/body/legislation/docs/council_statement.pdf#zoom=100). That principle is also laid down in Article III-218 of the Treaty establishing a Constitution for Europe.
How will the Commission work towards poverty reduction using Community development cooperation measures? How will it be ensured that Community development cooperation resources are employed to support the world’s poorest countries, that is to say, in the places where poverty is most rife?
Answer given by Mr Nielson on behalf of the Commission
Eradicating poverty is the greatest global challenge facing the world today. One-fifth of all human beings live in extreme poverty. The EU has an important role to play in this fight. It accounts for 55% of global aid flows – about €30 billion per year – of which more than a fifth is managed by the Commission. Assistance is provided to more than 160 countries, territories or organisations worldwide.
As stated in the Council and Commission Declaration of November 2000, the main objective of Community development policy is to reduce and, ultimately, to eradicate poverty. In practical terms the Community pays special attention to the situation of low-income countries (LICs) in its allocation of development co-operation resources. In 2003, 43 % of Community aid resources were allocated to low income and least developed countries. Support to middle income countries is also given to those with a high proportion of poor people and which are fully committed to implementing coherent poverty-reduction strategies.
The EU Constitution reinforces the focus of development assistance on the fight against poverty. The Millennium Development Goals (MDGs) adopted in 2000 by 189 United Nations (UN) members, guide its policies and interventions. The Community contributes to progress on all the MDGs – obviously including poverty reduction – by targeting its assistance to six key areas that are critical to the achievement of the goals and where it can add particular value:
the link between trade and development (the Community has exclusive competence for trade issues, trade is considered as an engine for growth,);
regional integration and cooperation (necessary to achieve integration of developing countries into the global economy, the EU itself is an example of successful regional integration);
support for macroeconomic policies and equitable access to social services (the Community has progressively increased its budget support particularly to countries committed to implementing poverty reduction strategies which focus on the health and education sectors) ;
transport (the Community has developed expertise and experience that are recognised by beneficiaries and other donors such as the World Bank; it can mobilise the financial resources required for major development of transport infrastructures);
food security and sustainable rural development (rural poverty is a dominant feature of developing countries. The Community can provide a regional approach, critical mass and links with research and development);
institutional capacity building, in particular good governance and the rule of law (the nature of a political dialogue, and “neutrality” of the Community are key assets).
One of the MDGs seeks to cut by half the proportion of people without safe drinking water – 1 billion people at present. The African, Caribbean and Pacific States-European Union (ACP-EU) Council of Ministers recently agreed the establishment of a € 500 million ACP-EU Water Facility.
More information on the objectives and activities of Community development aid is available from the 2004 Annual Report on Community development policy and external assistance, which was transmitted to the Parliament in July 2004(1).
Fighting poverty requires increased financing. The EU made a commitment at the European Council in Barcelona in 2002 to collectively increase its Official Development Assistance (ODA) in support of the Monterrey consensus on financing for development. This should lead to an additional €8 billion a year from 2006 onwards (reaching 0.39% of EU Gross National Income, (GNI)). Based on current forecasts, a total of over € 19 billion of cumulative additional EU ODA will be available during 2003-2006.
However, reducing poverty goes beyond providing financial assistance. It is very much a matter of getting the incentives right in developing countries – creating a sound macroeconomic environment, an appropriate framework for investments, as well as ensuring good governance with funds properly and effectively managed, achieving high standards of transparency, and tackling corruption.
It is also about improving developing countries’ access to the world trading system. The EU was instrumental in putting development at the heart of the Doha Development Agenda. The recent agreement in Geneva underlines the importance of the development dimension. The Commission’s efforts are geared at ensuring that the outcome of the DDA is a genuine opportunity for all developing countries, not only the larger emerging economies, but also the small states and least developed countries. Therefore, the Commission has substantially increased its assistance in order to help developing countries to reap more benefits from trade. Its support in this area now runs to around €700 million in new commitments per year, focused on regional integration efforts of developing countries towards better integration into the world economy.
(1) COM(2004)536 final
Leipäteksti
The Union is committed to the goals charted in the UN Millennium Declaration, in other words to reducing world poverty. In their statement on Union development policy the Council and Commission have affirmed that poverty reduction has to be the prime objective in Community development cooperation as a whole (see http://europa.eu.int/comm/development/body/legislation/docs/council_statement.pdf#zoom=100). That principle is also laid down in Article III-218 of the Treaty establishing a Constitution for Europe.
How will the Commission work towards poverty reduction using Community development cooperation measures? How will it be ensured that Community development cooperation resources are employed to support the world’s poorest countries, that is to say, in the places where poverty is most rife?
Answer given by Mr Nielson on behalf of the Commission
Eradicating poverty is the greatest global challenge facing the world today. One-fifth of all human beings live in extreme poverty. The EU has an important role to play in this fight. It accounts for 55% of global aid flows – about €30 billion per year – of which more than a fifth is managed by the Commission. Assistance is provided to more than 160 countries, territories or organisations worldwide.
As stated in the Council and Commission Declaration of November 2000, the main objective of Community development policy is to reduce and, ultimately, to eradicate poverty. In practical terms the Community pays special attention to the situation of low-income countries (LICs) in its allocation of development co-operation resources. In 2003, 43 % of Community aid resources were allocated to low income and least developed countries. Support to middle income countries is also given to those with a high proportion of poor people and which are fully committed to implementing coherent poverty-reduction strategies.
The EU Constitution reinforces the focus of development assistance on the fight against poverty. The Millennium Development Goals (MDGs) adopted in 2000 by 189 United Nations (UN) members, guide its policies and interventions. The Community contributes to progress on all the MDGs – obviously including poverty reduction – by targeting its assistance to six key areas that are critical to the achievement of the goals and where it can add particular value:
the link between trade and development (the Community has exclusive competence for trade issues, trade is considered as an engine for growth,);
regional integration and cooperation (necessary to achieve integration of developing countries into the global economy, the EU itself is an example of successful regional integration);
support for macroeconomic policies and equitable access to social services (the Community has progressively increased its budget support particularly to countries committed to implementing poverty reduction strategies which focus on the health and education sectors) ;
transport (the Community has developed expertise and experience that are recognised by beneficiaries and other donors such as the World Bank; it can mobilise the financial resources required for major development of transport infrastructures);
food security and sustainable rural development (rural poverty is a dominant feature of developing countries. The Community can provide a regional approach, critical mass and links with research and development);
institutional capacity building, in particular good governance and the rule of law (the nature of a political dialogue, and “neutrality” of the Community are key assets).
One of the MDGs seeks to cut by half the proportion of people without safe drinking water – 1 billion people at present. The African, Caribbean and Pacific States-European Union (ACP-EU) Council of Ministers recently agreed the establishment of a € 500 million ACP-EU Water Facility.
More information on the objectives and activities of Community development aid is available from the 2004 Annual Report on Community development policy and external assistance, which was transmitted to the Parliament in July 2004(1).
Fighting poverty requires increased financing. The EU made a commitment at the European Council in Barcelona in 2002 to collectively increase its Official Development Assistance (ODA) in support of the Monterrey consensus on financing for development. This should lead to an additional €8 billion a year from 2006 onwards (reaching 0.39% of EU Gross National Income, (GNI)). Based on current forecasts, a total of over € 19 billion of cumulative additional EU ODA will be available during 2003-2006.
However, reducing poverty goes beyond providing financial assistance. It is very much a matter of getting the incentives right in developing countries – creating a sound macroeconomic environment, an appropriate framework for investments, as well as ensuring good governance with funds properly and effectively managed, achieving high standards of transparency, and tackling corruption.
It is also about improving developing countries’ access to the world trading system. The EU was instrumental in putting development at the heart of the Doha Development Agenda. The recent agreement in Geneva underlines the importance of the development dimension. The Commission’s efforts are geared at ensuring that the outcome of the DDA is a genuine opportunity for all developing countries, not only the larger emerging economies, but also the small states and least developed countries. Therefore, the Commission has substantially increased its assistance in order to help developing countries to reap more benefits from trade. Its support in this area now runs to around €700 million in new commitments per year, focused on regional integration efforts of developing countries towards better integration into the world economy.
(1) COM(2004)536 final
Leipäteksti