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Policy Coherence for Development

The European Union (EU) is a key player in promoting global development cooperation, since it is the largest donor of development Aid, apart from being a significant economic and trade partner of developing countries.

Decisions in one policy area are bond to have influence on other policy sectors as well. In general, development policies of European Member States and the European Union are shaped according to external demand (from developing countries) and by internal, domestic stakes such as motives in the field of security, trade or even migration issues. This means there is always a trade-off between development issues and other policy areas. In order to promote poverty eradication and sustainable development these different spheres have to be supportive or at least should not undermine Development Cooperation. Unfortunately, often unintentionally, development efforts are contradicted by other political decisions at the national or European level. This incoherence of policies causes negatives effects on developing countries and makes Development Cooperation policies as well as other policies less effective.

The EU commitment towards policy coherence is not only a political commitment in the context of the MDGs. It also has a legal basis in the EC Treaty, in article 178: «The Community shall take account of the development policy objectives in the policies that it implements which are likely to affect developing countries».

THE PROBLEM Why is PCD important? Policies that are incoherent with development policy goals are costly to the EU and Developing Countries. Although the EU Development Cooperation is an important means towards supporting poverty reduction in Developing Countries, it is not enough to achieve the compromise signed by several Countries regarding the Millennium Development Goals (MDGs). On the other hand, different policies other than Development Cooperation can produce meaningful impacts on Developing Countries.

Policy incoherence weakens the efficiency and impact of Aid. Why is PCD important? Mainly because it aims to increase the effectiveness of Development Cooperation by making sure that other policies are aligned with Development policy goals. In other words, Policy Coherence for Development (PCD) reflects the need to improve the effectiveness of Development Cooperation which is often negatively affected by decisions in other policy sectors or instruments. On the other hand, PCD can also be a response of Developing Countries who highlight policy incoherencies to justify their demands for donors to make more serious efforts towards sustainable development and the recognition that the Official Development Aid (ODA) is far from being the only international financial flow as far as progress on development is concerned. Enhanced coherence is necessary to make development cooperation more effective and to make sure interests of developing countries are taken into account when designing European and national policies that have effects on developing countries.

EXISTING ANSWERS

The concept of Policy Coherence first emerged in the European Union politics during the 1970’s and after some first reflections and debates on consistency in European external policies and first thoughts on PCD, it provided basis for articles in the Maastricht Treaty (1993). According to this Treaty, all EU policies have to be coherent and conform with the objectives of Development Policy.

In 2005, the European Commission identified Policy Coherence for Development as a tool for accelerating progress towards attaining the MDGs. In addition, other European Union Institutions are becoming increasingly aware of the fact that Development Cooperation by itself can’t meet the needs of Developing Countries and therefore have made important commitments to enhancing PCD. For instance, the Council in its May 2005 GAERC conclusions, explicitly requested the review and improvement of the EU policy making structures with the aim of integrating Development considerations into non-aid policies. In other words, the Policy Coherence for Development is affirmed and the EU must monitor and promote policy coherence for development in 12 priority fields: Trade, Environment, Climate Change, Security, Agriculture, Fisheries, Social dimension of globalisation, Employment and decent work, Migration, Research and innovation, Information society, Transport and Energy.

NGO RESPONSE

Several actors can play an important role regarding the promotion of PCD. The Commission has a role in identifying and reinforcing development perspectives in the early stages of formulating new policy proposals; the Council has a role in reviewing the progress on implementation of the PCD commitments on a regular basis; the Member States have to engage their government departments as needed in follow up in the 12 thematic areas and exchange good practice on policy coherence and the NGOs should promote PCD in their own Member States and in the EU.

Having this in consideration, the “Call for Coherence” programme of NGOs working in development cooperation emerged as an answer to raise public debate during the Finnish EU presidency on policy coherence by examining how different policy sectors need to be harmonised with the objectives of Development Policy, what kind of solutions exist to improve coherence and how they and their implementation can me made more effective in the future.

MORE INFO

Conclusions of the Council and of the Representatives of them Governments of the Member States meeting within the Council on Policy Coherence for Development: Work Programme 2006-2007 (2723rd EXTERNAL RELATIONS Council meeting); April 2006; Luxembourg.

Conference on Policy Coherence for Development: Final Report, KEHYS; 2006.

Policy Coherence for development: NGO’s Challenge for the Finnish Government and the European Union for the EU Presidency 2006; KEHYS; 2006.

Policy Coherence for development: Work Programme 2006-2007 (EC Staff Working Paper).

Report Best practice in Coherence Instruments CONCORD & Evert Vermeer Foundation (EU Coherence Programme); June 2006; Brussels.