EU Accountability Report 2012 on Financing for Development
The European Commission has published the 2012 EU Accountability Report on Financing for Development, which analyses and illustrates how the EU and its Member States fulfilled their commitments for more and better financing for development.
The report, published on 9 July 2012, confirms that the EU as a whole has kept up progress delivering on its pledges, although the situation differs greatly between issues and Member States. It covers previous year's efforts by the EU and its 27 Member States to support the mobilisation of development finance.
Elements of the Report
The report consists of:
- A communication "Improving EU support to developing countries in mobilising Financing for Development [253 KB] ", which makes proposals for further action to reach agreed common EU aid targets.
- A report, "EU Accountability Report 2012 on Financing for Development [3 MB] ", which provides an analysis and assessments of progress towards the targets (Volume 1 and 2). The 2012 EU Aid for Trade report is attached as Annex 4 (Vol 3 and 4) [9 MB] of the Accountability Report.
The Communication and the complete report are available for download also in one file [12 MB] .
In addition, Member States have agreed to publish their individual replies to the questionnaire and the Commission has prepared short "Donor Profiles" of each Member State on the basis of the replies. The Commission has also prepared a short summary [473 KB] of the report.
The Commission Communication of this year builds on previous progress as well as the new principles set out in the Agenda for Change, and proposes improvements in EU support for mobilising development finance. These proposals are based on data presented in the EU Accountability Report 2012 and the previous Reports published since 2003.
Domestic resource mobilisation is the largest source of development finance. The EU and its Member States are considering ways to provide greater emphasis to this area, notably as part of budget support operations. Support to address tax evasion and harmful tax competition will continue to be given. Substantial progress has been achieved in areas such as multilateral conventions, Tax Information Exchange Agreements as well as double taxation conventions.
Concerning debt relief, the EU and its Member States will continue to deliver on their commitments and are increasingly prioritising actions on the prevention of unsustainable debt and strengthening of the debt management capacity and institutions in Highly Indebted Poor Countries (HIPC) countries.
In relation to international private flows for development, the EU and its Member States have been driving the global Aid for Trade (AfT) efforts, confirming their position as collectively the largest provider of AfT in the world, exceeding agreed targets. They also boosted bilateral trade relations with developing countries and keep promoting regional integration. Maximizing the development impact of migration by facilitating remittances and reducing transaction costs remains a priority for the EU and its Member States.
The current context of the financial crisis and budgetary austerity have brought a new resonance to Innovative Sources of Financing. Facilitating private investment in partner countries by using blending mechanisms, Public Private Partnerships (PPPs) and encouraging Corporate Social Responsibility (CSR) are essential for a thriving private sector development in partner countries.
Since making its Official Development Assistance (ODA) commitments in 2002, EU ODA has seen fluctuations, but overall, EU ODA has been on an upward trend. In 2011, the EU and its Member States provided €53.1 billion in ODA, which is 0.42% of the collective GNI. The EU (European Commission and EU Member States) remains the biggest donor, and the EU's per capita ODA and its ODA/GNI ratios are greater than those of non-EU DAC members. However, EU Member States stand in different positions with regard to the 2015 target; in 2011, 11 Member States saw a reduction in their ODA, while 16 increased their spending. Many EU Member States are also taking actions to increase ODA targeted to Africa. The LDC's share of EU ODA has been increasing both in absolute and relative terms since 2004, reaching 0.15% of EU GNI in 2011. However, reaching the overall ODA/GNI target in 2015 would require the EU and its Member States to dramatically step up efforts and almost double their current ODA in nominal terms. Within the context of climate change and biodiversity, the EU and its Member States are committed to play a leading role on the international stage. In fact, they have reaffirmed their commitment to doing their fair share in this context and pledged to contribute fast-start funding totalling EUR7.2billion for the years 2010 to 2012. The EU's biodiversity-related aid as a share of total EU ODA increased from 2.1% in 2006 to 5.7% in 2010.
Last but not least, the EU and its Member States are working on a range of measures to make aid more effective and to implement commitments in relation to the Paris Declaration principles, the Accra Agenda for Action and the Busan Partnership for Effective Development Cooperation. The priority for the EU and Member States is now to focus on the country level implementation of aid and on the development effectiveness commitments.
Replies to the 2012 questionnaire and donor profiles
* - In case of no update, reply is not published below
Annex 1 of the Questionnaire [97 KB] - Background on the questions and references to the EU commitments.