The EU and Global Public Goods: Challenges and Opportunities Mikaela Gavas, ODI, m.gavas@odi.org.uk 21 January 2013
Contents 1. The changing development landscape and the EU 2. Is the EU equipped to deal with global public goods? 3. The EU in international negotiations 4. A five-point action plan for the EU on global public goods 2
The changing development landscape and the EU
The changing landscape Changing geopolitical and economic realities Rising powers Multilateral architecture G7 to G20 Eurozone crisis Changing wealth and poverty patterns 1990 = 93% of the world s poor in LICs 2007 = 72% of world s poor in MICs (Sumner, 2010) Changing development discourse Mutual interest, global public goods, beyond aid, post-mdgs 4
5 Changing patterns of growth
New sources of development finance 1998 0% 2008 5% 1% 17% 82% DAC ODA Emerging donors Private donors Climate finance 30% 9% 56% 6 Source: OECD DAC
7 Source: Chandy & Gertz (2010) The changing global poverty landscape
Changing patterns of poverty in nonfragile states Source: Kharas and Rogerson (2012) 8 Source: Kharas & Rogerson (2012)
Aid to MICs is reducing (% from OECD online) 9
Things we need to fix globally Financial instability Pandemics Trade rules Climate change Globalisation Food insecurity Knowledge Conflict Migration Energy insecurity Fisheries Natural resource nexus 10
Highly exposed How exposed is the EU to the changing landscape A traffic light approach Exposed Less exposed Least exposed 11 Source: Kharas & Rogerson (2012)
Is the EU equipped to deal with global public goods
13 An EU strategy for dealing with global public goods Policy level: Which global public goods to focus on, why and how? Institution level: How to organise within Europe so that Member States and the EU institutions are all pulling in the same direction. Instrument level: How to engage with countries or groupings of countries with varying development levels, needs and priorities. International level: How to get international agreement on the global regimes needed to entrench global public good provision
The policy EU Agenda for Change: Aid concentration on governance and growth Differentiation with a view to aid graduation Joint work with an emphasis on joint aid programming Aid strategy for an aid agency 14
The institutions 15 Source: Gavas (2010)
The instruments 16 Source: Gavas (2011)
The EU in international negotiations
18 EU models of governance
EU international climate policy: norms vs. interests Norms Interests 19
A five-point action plan for the EU on global public goods
A five-point action plan for the EU on global public goods 1. Draft a joint EEAS/EC Communication detailing how the EU intends to adapt to a changing global landscape with a series of joint Communications on a selection of issues that the EU can realistically tackle, based on comparative advantage; 2. Agree a well-resourced partnership instrument, focused on tackling regional and global problems and on the provision of global public goods as outlined in the Communications, with a development instrument focused on 'traditional' aid to reduce poverty; 3. Ensure the EEAS plays a key role in improving the EU s internal coordination, as well as the coherence of EU external action and instruments, as they affect developing countries; 4. Agree a more or less permanent division of labour between the Member States and the EC, based on the logic of comparative advantage whereby the EC and the Member States find their competitive niche and form delivery partnerships on global public goods; 5. Concentrate Member State energy on global public goods through the EU rather than bilaterally.
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