Doubling aid” “

A greater effort by the European Union to bankroll the development of the less advanced countries: that is what emerged from the UN Conference on the funding of development, held in Monterrey (Mexico) from 18 to 22 March (cf. report on the following page). To examine EU policy for development, in the aftermath of the Monterrey Conference, we interviewed Atanasios Theodorakis , assistant director general of the European Commission’s development office. What is the current EU policy for aid to development? “Development policy represents a priority for the Union, given that aid to development, together with trade and political relations, represent the three mainstays of EU foreign relations. The EU now maintains relations with all the developing countries, and has an aid budget of 10 billion euros per year. Already in 2001 we established the priorities together with the poor countries themselves: we wish to be present in the sectors of infrastructures, democratic reforms and the economy”. In what, more specifically, do EU interventions in favour of the poorer countries consist? “Current EU development measures are of two types: the first is the classic project-by-project approach; the second is represented by ‘macroeconomic’ budgetary aid. The current tendency is towards an increase in support to the budgets of poor countries to avoid as far as possible technical delays, wastage and complications. If we wish to achieve the desired results and impact, the aid must be targeted and the funds directed, without this in any way minimizing the importance of contexts such as social exclusion, infectious diseases and the marginalization of trade in Africa. Today the EU is awaiting the ratification of the Cotonou Agreement on the campaign against poverty that makes provision for a series of special instruments to channel aid so that each developing country may conduct its own development policy”. How do you judge the conclusions of the Monterrey conference? “I don’t agree with those who have expressed a wholly negative judgement about the results of the conference. Monterrey produced a consensus that clarifies the international priorities and incorporates, both in spirit and in practice, the principles enunciated by previous international conferences on poverty. Finally the emphasis is put on the responsibilities of the poor countries themselves as regards good ‘ governance’ within their own borders. Of course, it is undeniable that to achieve the objectives fixed by the Millennium Round on world trade by 2015 it will be necessary to double the amount of aid. We know very well, however, that what matters is the EU pledge to reach an aid allocation equivalent to 0.7% of GDP in 2015 through the intermediate stage of 0.39% in 2006. What is the EU’s position on the problem of the foreign debt of the poorest countries? “At the theoretical level, the debate is very heated. At the practical level, the Union contributes a billion euros per year to the reduction of foreign debt. But that’s not enough. Monterrey asked for a greater effort at achieving efficient local government in the developing countries. Local democratization is essential, and the responsibility of the governments of the poor countries themselves was stressed at Monterrey. Efforts also need to be continued as regards foreign debt reduction, but three conditions need to be satisfied: first, the growth of public-sector aid to development, which currently amounts to some 53 billion dollars, a drop in the ocean in comparison with world economic flows; second, public/private partnership with the increase of foreign direct investments; and third, commercial opening to the poor countries, though in this regard I wish to recall the priority sanctioned by the EU: everything except weapons”.