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The European Union (EU) has decided to re-prioritise its aid delivery to developing countries by emphasising that spending should concentrate on sectors which are key for long term and inclusive growth, to ensure maximum impact on delivery reduction.
Future spending on EU development support would also target countries that are in greatest need of external support and where aid can make the difference, a press statement from the EU has said.
Presenting the “Agenda for Change” of EU Development Policy and a new policy for EU budget, E.U Commissioner for Development, Andris Piebalgs, said “these communications set out a more strategic EU approach to reducing poverty, including through a more targeted allocation of funding”.
“Representing more than 50 per cent global aid, the EU is already the biggest donor in the world, and I want to make sure that it remains the most effective one too,”Mr Piebalgs said.
He said, “We must keep pace with changing realities in the world and adapt the way we fight poverty as a result. That is why I am proposing today that we refocus our aid priorities to ensure that countries are on track to achieving sustainable and inclusive growth.”
The statement said the EU wanted to make sure that every euro reached those that were in need of it most, stressing that fighting poverty abroad was EU’s insurance policy for a more stable and prosperous world.
The main principles of the 12-point Agenda for Change will be progressively reflected in the remainder of the current programming cycles, and then in future EU programming, it said.
The commission will, in spring of 2012, ask EU Foreign Ministers to endorse the new EU budget support approach.
The release said the EU would put more emphasis on human rights, democracy and rule of law through focus on dialogue with partner countries, creating incentives for reforms and asking countries to commit to fundamental values.
It said budget support would be used in fragile countries on case by case basis to ensure vital state functions and support the transition via “state building contracts.”
Budget support it said should contribute to the fight against corruption and fraud and help countries to build their own financial resources in order to reduce dependence on aid in the long run.
It is recalled that in autumn 2010, the EU launched a consultation on the future of development policy and on the instrument of budget support and the Agenda for Change proposals drew on the analysis of the feedback received from global partners, governments, non-governmental organisations and the private sector.