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The EU’s aid budget: added value?

The EU’s aid budget: added value?. Patrick Holden Patrick.Holden@Plymouth.ac.uk. Outline. EU ODA: 2011. Institutional characteristics of the EU as a donor. The different EU aid instruments. Specific features of the EU as an aid donor. Conclusions/recommendations.

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The EU’s aid budget: added value?

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  1. The EU’s aid budget: added value? Patrick Holden Patrick.Holden@Plymouth.ac.uk

  2. Outline • EU ODA: 2011. • Institutional characteristics of the EU as a donor. • The different EU aid instruments. • Specific features of the EU as an aid donor. • Conclusions/recommendations.

  3. 2011 EU ODA (total €11,323M) Source: Annual Report on Development aid 2012 (p.177 )

  4. The EU as an aid donor (strengths and weaknesses). Council (Member states) European Commission • EU Country Delegations + European External Action Service • European Parliament

  5. The different instruments • Development Cooperation Instrument • €20.6 bn requested for period 2014-2020 • European Neighbourhood Instrument • €16.1 bnrequested for period 2014-2020 • European Development Fund (outside of the budget). • €30.3 bn requested for period 2014-2020 • Other • pre-accession aid, • (non-ODA) aid for cooperation with industrialised countries • democracy aid, • humanitarian aid, • instrument for stability, nuclear safety...

  6. Features of EU aid • 1. A large percentage to Middle Income Countries/MICs (over 50%). • 2. Some EU ODA – aid to ‘the neighbourhood’ – is not primarily geared towards global development norms (poverty reduction/HD focus). • 3. The EU’s aid and trade link: a mixed blessing.

  7. A lot to criticise but • ‘Repatriation’ of aid to national level would not be a good thingin a time of crisis (some EU member states may be tempted to distort aid radically for selfish purposes). • EU aid is reliable. • EU aid is less vulnerable to radical distortions. • As the major trading entity the EU is an appropriate vehicle for aid.

  8. APPENDIX 1 proposedbudget 2014-2020 • (All figures in constant 2011) prices • Development Cooperation Instrument €20.6 bn • Pre-accession instrument €12.5 bn • European Neighbourhood Instrument €16.1 bn • Partnership Instrument €1 bn • Instrument for Stability €2.5bn • European Instrument for Democracy and Human Rights €1.4 bn • Common Foreign and Security Policy €2.5 bn • Humanitarian Aid Instrument €6.4 bn • Civil Protection and Emergency Response Capacity €0.2 bn • European Voluntary Humanitarian Aid Corps €0.2 bn • Instrument for Nuclear Safety Cooperation €0.56 bn • Macro-financial Assistance €0.6 bn • Guarantee Fund for External Actions €1.26 bn • Emergency Aid Reserve €2.45 bn + • Total proposed budget under 11th EDF €30.3 bn

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