Dialogue and development

“ACP (Africa, Caribbean, Pacific) has come to a crossroads. A series of surveys conducted in recent years on the economic evolution of Sub-Saharan Africa (high development rates ranging between 4% to 6%, the emergence of good level decision-makers, the widespread yearning to change the state of affairs, the arrival of new foreign players, migrants’ frequent return to their homelands) have shed light over the Continent’s potentials”. This is the conclusion of Jean-Loup Feltz, Advisor of the General Directorate of the French Development Agency, who drew up a report on the relations and agreements between ACP Countries and the EU, published in April’s issue of Études, contemporary cultural review of France’s Jesuits. ACP represents 78 States: 48 from Africa, 15 from the Caribbean and 15 from the Pacific, amounting to 700 million inhabitants. In the year 2000 the Economic Partnership Agreements (EPA) led to a revision of EU-ACP relations undertaken in 1963. European solidarity culture. The “ACP-EU consortium – Feltz remarks – involves less than a fifth of world population but is nourished by a mosaic of cultures and geographies that represent a geopolitical network of reference for Europe”. To this regard, “APC-EU dialogue opened an innovative and prophetic page in North-South globalization, in compliance with Europe’s solidarity culture”. 80% of EU’s Aid to Development budget comes from Member States’ budget, while 29% is drawn from the Community budget. Between 1963 and the year 2000 it was the object “of seven further conventions that envisage increased financial output amounting to over 50 billion euro for the period, for financial cooperation through the EDF (European Development Funds)”. This measure includes technical cooperation, business cooperation and loans granted by the European Investment Bank (EIB).Worrying stagnation. Nonetheless, despite this commitment, “between 1960 and the year 2000 per capita income in Sub-Saharan Africa increased by 0.3% only”. Indeed, 41 of the 78 ACP Countries are LDCs (Less Developed Countries), while only 56 are members of the World Trade Organization (WTO). Feltz spoke of a “worrying stagnation”, and of “the increasing malaise of non-ACP Developing Countries due to the privileges granted to ACP countries”. The author points out that the Cotonou ACP-EU Convention, signed for 20 years on June 26 2000, envisages “the progressive integration of ACP Countries in international trade”, firstly by “regionalizing” these Countries into six subsystems and by introducing their trade activities into international regulations, “notably in terms of reciprocity”. However, noted the expert, the envisaged negotiations for the Economic Partnership Agreements (EPA) whose ratification was to take place by December 31st 2007, “have been delayed as expected”. For this reason, flowing the joint request of the ACP States and of the European Commission, alternative solutions have been devised. From “free trade” to “fair trade”. Only the Caribbean area signed a full EPA with the EU; 18 African Countries and 2 in the Pacific zone have undertaken negotiations for bilateral provisional agreements. “These developments – declared Feltz – clearly show that short-term and unconditional integration of ACP Countries in world economy is impossible. Apart from a restricted élite, the economies and the social models of these countries are not ready yet”. According to the expert, “EPAs ought to be integrated with specific tools following three approaches: providing expertise in order to handle the impact of the changed regime in each single Country; increasing financial support and development initiatives to prevent detrimental effects of regionalization, especially as relates to the budget” and finally, “carefully monitoring the adoption of regulations aimed at preventing uncontrolled importing and raiders, and in order to hasten these Countries’ compliance with foreign market regulations”. X factors include: “ACP States’ truthful long-lasting adoption of this tool”, whose success will depend “on their political will to succeed”, which requires “time and trust in the dialogue with the EU”. Will the advantages of EPAs in terms of “development and world integration conveyors be rapid and effective enough to overshadow the drawbacks of their implementation?”, asked the economist, who encourages reflection on the impact of the ongoing world crisis upon “the economic relevance of ACP Countries and the legitimacy of WTO since ‘free trade’ will need to become ‘fair trade’”, he concluded.