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European Union
Paul Collier backs European transparency law
Guest post from Paul Collier, author of ‘The Plundered Planet: How to Reconcile Prosperity With Nature’ and member of ONE’s Africa Policy Advisory Board.
The ‘resource curse’ is one of the most persistent paradoxes of international development. For decades the natural resources of poor countries have been plundered: the few expropriating what should benefit the many, and the current generation squandering what should also benefit future generations. The current global boom in commodities provides many poor countries with an unprecedented opportunity to escape poverty, yet the default option is for history to repeat itself. One of the most pressing issues in the fight against global poverty is how to prevent this repetition.
Repetition is not inevitable. For example, Germany learnt from hyperinflation. But to avoid a repeat of the resource curse the pressures for plunder must be faced down. Some of the necessary actions must be taken by the governments of resource-rich countries, but we ourselves need to take complementary actions.
Fortunately we are now at a moment of opportunity, and Germany’s support will be crucial. The European Commission has published proposals that would oblige all European extractive industry companies to become more transparent in their operations abroad. If enacted, these companies will have to publish the payments they make to the governments of every country where they operate. The legislation aims to go at least as far as ground-breaking US legislation that was passed in 2010. This means that a global standard for legally binding transparency in the extractive industries is within reach for the first time. The French President is in full support of this initiative. Even Britain, where more extractive companies’ are headquartered than in any other EU-member state, used a G20 finance ministers meeting to express unequivocal backing. It is unsettling that the German government, a champion of extractive transparency in years past, is silent at this historic moment.
The draft disclosure requirements will provide the perfect complement to actions taken within the poor countries themselves. Citizens need the data that would be made available by these companies to better hold their governments accountable for the money they receive for the country’s natural resources. Over 600 civil society organisations worldwide have signed up to the ‘Publish What You Pay’ coalition. Citizens, many of whom have risked arrest to fight embezzlement, will be newly empowered with the tools they need to force positive change. As the Arab Spring so ably demonstrated, ordinary citizens care deeply about transparent and accountable governance.
Of course transparency is only a means to an end. The prize is the better use of huge resource revenues, enabling a dramatic improvement in social and economic development. In 2008 exports of oil, gas and minerals from Africa were worth roughly nine times the value of overseas aid ($393-billion versus $44-billion), creating considerable government income through licences and taxes. In many countries those revenues account for the vast majority of government revenues – more than 80% in the case of Angola. Even if enhanced transparency were only to improve the efficiency of natural resource revenue spending incrementally, it would easily yield more than Germany’s entire aid program for sub-Saharan Africa.
In a time of economic austerity across Europe policies like these which help African governments to mobilise their own resources for development are even more important. Aid budgets are now under pressure. In the long-run, fostering greater reliance on taxes can help develop cohesive states and reduce aid dependency.
The discussions on the detail of the new European legislation are now critical. For the new legislation to effectively empower citizens in situations like this, it needs to include the disclosure of financial information at the project level. Only these disaggregated figures give citizens and local communities the information to hold government accountable. In addition, financial information only at the country level will not help citizens curtail the official under-pricing of national assets, such as the case of the Democratic Republic of Congo where contracts have officially been sold for a sixteenth of the market price – an indication that kick-backs are taking place.
Project-level disclosure is also a way to improve the functioning of the natural resource market and therefore makes good business sense: wide discrepancies in the valuation of assets can be hidden by aggregating data at the country-level. A more efficient market system can operate if this secrecy ends. It is no coincidence that major investors successfully joined hands with civil society to have project –level disclosure included in the ground-breaking US legislation.
The good news is: the current draft of the European Commission includes project-level disclosure and both the French President Sarkozy and the British Premier Cameron support this critical detail.
Germany has been a strong champion for extractive transparency ever since the Heiligendamm G8 summit. This is evidenced by the long-standing support Germany gave to EITI, a voluntary multi-stakeholder transparency initiative that has worked well in resource rich countries that showed the will to improve their transparency. However, it is for those countries which ignore EITI that the new legislation is needed and Germany can reinforce its role as an international leader on extractive transparency by supporting the new law.
But while the German government has indicated its general support for this EU legislation some European partners have noticed that a number of German ministries remain sceptical of the key feature described above: project-level disclosure. In line with its excellent track record on improving extractive transparency, Germany should now endorse the current strong legislation. Improved accountability in the natural resource sector leads to more stability in resource rich countries and better markets – both central aims of the German resource strategy.
We are now at a rare moment: we know that some legislation will be enacted. But as with all legislation, the devil is in the detail. Lobbyists for the interests of continuing plunder and irresponsible business practices are attempting to dilute key features while paying lip-service to noble objectives. If we permit the lobbyists to win we become complicit in frustrating change: remember, the default option is for the current resource booms to be the biggest missed opportunity for poverty reduction in history. Germany needs to decide now whether it is happy to be complicit in frustrating this chance for change or if it wants to join the fight against a repetition of the hugely destructive resource curse.
This post first appeared in the Handelsblatt newspaper.
Bill Gates in Brussels: Living Proof in Action!
“Inspiring!” - “Deeply impressed!” – “Excellent!”
“The greatest speech I’ve heard in my eight years in the European Parliament’s Development Committee!” Gay Mitchell MEP
This week Bill Gates took Brussels by storm – a whirlwind 24 hours of meetings and events with EU leaders, culminated in his Living Proof speech in front of a full house in the European Parliament’s main chamber this afternoon.
The cause of this enthusiasm was a very simple, but effective message – aid works, and especially in these times of crisis, it is critical that the European Union continues its leadership as the world’s second biggest donor. Bill Gates made the case for continued EU investments in vaccines and agriculture and showed how development aid has helped change the world for the better in recent decades.
His visit couldn’t have been timelier. The 27 EU Member States and the European Parliament have recently kicked-off negotiations on a seven-year budget for the EU, of which €57 billion is at stake for future development spending. By showing that the Europe’s generosity has had a real impact on people’s lives in developing countries and by encouraging Parliamentarians to stand up and fight for EU aid in the next seven year budget, Bill Gates has helped strengthen the resolve of existing aid champions and reached out to many that are yet to become supporters of our cause. The new President of the Parliament Martin Schulz wrapped up his first address to the Parliament by reiterating the importance of development spending, “irrespective of political colours, the European Parliament will stand shoulder to shoulder with you”.
Today the EU’s top decision makers were reminded quite how much is at stake in the budgets they are responsible for. The ONE team, working with the Bill and Melinda Gates Foundation, will make sure words are matched by action in the difficult negotiations to come!
Watch what he had to say:
For Bill Gates’ joint video statement with European Commissioner for Development Andris Piebalgs, please click here.
Watch Bill Gates live at the European Parliament
Today, Bill Gates will address the Development Committee of the European Parliament in Brussels. After his speech, the newly elected president of the European Parliament, Martin Shultz, will make closing remarks.
Watch the debate live here from 2-3:30 pm CET (1-2:30 GMT/UTC), and share your thoughts using #livingproof on twitter!
Gates will be talking about Living Proof, which shares stories and facts about the incredible progress being achieved by people in developing countries as a result of smart aid investments. Since stepping down from his role as CEO of Microsoft Bill Gates has dedicated himself to the work of the Bill and Melinda Gates Foundation. The Foundation works with ONE in fighting extreme poverty and poor health in developing countries.
The address on Living Proof comes at a crucial time – this year the European Parliament and EU member states will decide on the EU’s next 7-year budget. The current proposals foresee 57 billion euros for development cooperation, and ONE will be working hard to ensure that European leaders protect this funding aimed at the poorest countries in the world.
Tune in to ONE.org for more info and actions on EU aid in the coming months!
Bill Gates to share the Living Proof in the European Parliament
Tomorrow, Bill Gates will address the Development Committee of the European Parliament in Brussels.
Since stepping down from his role as CEO of Microsoft Bill Gates has dedicated himself to the work of the Bill and Melinda Gates Foundation. The Foundation works with ONE in fighting extreme poverty and poor health in developing countries particularly through Living Proof, which Gates will be present in Brussels tomorrow at the European Parliament. “Living Proof” shares stories and facts about the incredible progress being achieved by people in developing countries as a result of smart aid investments.
His address comes at a crucial time – this year the European Parliament and EU member states will decide on the EU’s next 7-year budget. The current proposals foresee 57 billion euros for development cooperation, and ONE will be working hard to ensure that European leaders protect this funding aimed at the poorest countries in the world.
After Bill Gates’ speech, the newly elected president of the European Parliament, Martin Shultz, will make closing remarks. Watch it all live here on the ONE blog tomorrow from 2-3:30pm CET (1-2:30pm GMT/UTC).
Be sure to follow the action and let us know your thoughts using #livingproof on twitter! ONE needs you this year to help secure EU development aid until 2020!
Presidential debate – European Union style
Next week members of the European Parliament (MEPs) will elect a new President. Ahead of the poll, the European Voice organized a “Presidential Debate” between the three candidates: Nirj Deva, a Sri Lanka-born British Conservative MEP, Martin Schulz a German MEP and the current President of the Socialists group, and Diana Wallis, a British Liberal MEP.
The next European Parliament President will have to negotiate the EU’s next 7-year budget for the period 2014-2020. ONE will be working them to ensure the Commission’s proposed €57bn for development aid targeted on poor countries isn’t cut. Within the debate the EU’s Budget (although not development spending) was mentioned. Martin Schulz, the favourite to win, supports the increased EU Budget proposed by the Commission. He believes that with more tasks to be carried out by the EU, more money is needed. During the 90-minute debate, Martin Schulz also promised to fight against the European Parliament’s marginalisation in big negotiations. Diana Wallis and Nirj Deva insisted on the need to break with the tradition of splitting the presidency between the two major political parties, the Conservative EPP and the Socialist S&D, Schulz’s party. Nirj Deva promised that if elected he would be a neutral and non-partisan president while Diana Wallis highlighted the positive signal the Parliament could send by electing a woman and a British citizen. She also pledged to work with national parliaments to connect with citizens.
Tune in to our blog next week to find out who won the vote and will be hosting a very important visitor in their first week in office!
Denmark assumes EU presidency – what’s in it for the world’s poor?
Today, Denmark marked the start of their 6 month EU Presidency by presenting its proposed work programme in Copenhagen. Holding the Presidency means Denmark will be a key player during a difficult economic period in Europe when decisions will be taken on crucial development issues including the EU Budget and transparency in the oil, mining and gas industries.
The Budget won’t be finalised until the end of 2012 but the Danes aim to advance the negotiations as far as possible by the end of their Presidency in June. ONE will be working with Danish NGOs and across Europe to ensure the Commission’€57bn budget proposal for development cooperation in poor countries isn’t cut by EU Member States.
On transparency, Denmark is keen to get EU legislation passed by June obliging oil, mining and gas companies to publish all payments they make to governments in countries where they operate. If the EU gets the detail of these proposals right it should enable civil society in developing countries to hold their governments accountable and fight corruption.
Denmark has also prioritised agricultural and fisheries policy in its Presidency, working to reduce agricultural subsidies in the EU in a way that benefits access to markets for developing countries. Denmark also aims to ensure the reform of EU fisheries policy in order to guarantee that the world’s fish resources are used sustainably for the benefit of the communities that depend on fishing.
On EU trade policy Denmark wants to ensure closer political dialogue with partner developing countries through commercial relations and reciprocal market access, and wants to ensure that these trade relations are sustainable and contribute to poverty reduction.
Since the Lisbon Treaty was signed all EU policies have to be consistent and coherent with its development policy. Denmark has promised to work towards creating a better coherence between EU policies in all the areas that affect developing countries. In terms of development policy itself, they admit that linking humanitarian aid and long-term development aid will be a major task, and commit to focusing on getting results and being transparent.
Finally, the Danish government will lead the EU in the fight for the establishment of a global tax on financial transactions. Such a tax could be used to finance development cooperation and help developing countries to combat climate change.
LIVE: European Development Days
The European Development Days are Europe’s premier forum on international affairs and development cooperation, every year attracting political leaders and world-renowned authorities on development.
This year ONE has partnered up with Oxfam International, Caritas Europa, and Polish Humanitarian Action, to organise a high-level event on “How to prevent another famine in the Horn of Africa: the role of the EU in building resilience”.
Follow the debate live, here on ONE.org, on Friday 16 December at 11am CET (10 am GMT):
This panel will bring together practitioners from the field and policy-makers in the EU to exchange experiences on responding to the Horn of Africa famine and discuss how to prevent another crisis on this scale. The speakers include Kristalina Gerogieva, European Commissioner for International Cooperation, Humanitarian Aid and Crisis Response, Fran Equiza, Oxfam GB’s regional director for the Horn, East and Central Africa, and Marc Breusers from Caritas Belgium.
You can also follow the discussion on twitter via the #EDDendfamine hashtag.
Update:
Kristalina Georgieva EU Commissioner for International Cooperation, Humanitarian Aid & Crisis Response, “welcomes and endorses the charter to end extreme hunger” – read the charter here.
Ask your question at the European Development Days
Right now, the Horn of Africa – Somalia, Ethiopia, Kenya, and Djibouti – is experiencing the worst food crisis in 60 years, with 13.3 million people in crisis and 250,000 people at imminent risk of starvation. Yet while drought may be an act of nature, famine is not.
Last month, more than 400,000 ONE members sent a resounding message signing our Hungry No More campaign petition urging G20 leaders to break the cycle of famine.
Now, on 15 and 16 December, the European Development Days are taking place in Warsaw, Poland. The European Development Days are Europe’s premier forum on international affairs and development cooperation, every year attracting political leaders and world-renowned authorities on development.
This year ONE has partnered up with Oxfam International, Caritas Europa, and Polish Humanitarian Action, to organise a high-level event on “How to prevent another famine in the Horn of Africa: the role of the EU in building resilience”.
This panel will bring together practitioners from the field and policy-makers in the EU to exchange experiences on responding to the Horn of Africa famine and discuss how to prevent another crisis on this scale. The speakers include Kristalina Gerogieva, European Commissioner for International Cooperation, Humanitarian Aid and Crisis Response, Fran Equiza, Oxfam GB’s regional director for the Horn, East and Central Africa, and Marc Breusers from Caritas Belgium.
Follow the debate live, here on ONE.org, on Friday 16 December at 11am CET (10 am GMT). Just check out the ONE blog on Friday for more information.
You can also submit a question in advance to the panel in the comments below or tweet it using the #EDDendfamine hashtag.
We will select two to three questions and put them to the moderator, Nazanine Moshiri, East Africa correspondent at AL Jazeera English, to ask the panellists.
I hope you’ll join me on Friday for what promises to be fascinating discussion!
European leaders must remember their promises to the world’s poor when negotiating the globe’s second biggest aid budget
Andris Piebalgs, European Commissioner for Development, presented today his detailed proposals on the future EU development spending to the European Parliament. In his presentation to Members of the Development Committee, he laid out his spending plans worth €57 billion for the EU’s Development Cooperation Instrument (DCI) within the 2014-2020 Budget and the 11th European Development Fund. “In this budget, our main priority of meeting the Millennium Development Goals must be pursued, and the EU remains committed to spend 0.7% of its GNI on development by 2015”, Piebalgs stated.
ONE welcomes the European Commission proposals which put fighting poverty at the heart of plans for all of the EU’s external action, and calls on the European Parliament and Member States to keep their promises to the world’s poor in their upcoming negotiations on the proposals at hand.
Our Acting Brussels Director Alexander Woollcombe explains why 2012 will be such an important year to fight for the European aid budget:
“With one third of the EU Member States saying they want to freeze the overall budget for 2014-2020 at current levels, negotiations will no doubt be fraught, particularly in light of the current economic difficulties. But it is crucial that spending on the world’s poorest is prioritised. EU aid has saved millions of lives in poor countries, but there is still much more to be done. With many European countries off-track in keeping the promises they have made to developing countries, and just four years to go until the deadline for the Millennium Development Goals, now would be the worst time for the EU to cut back on the support that saves countless lives and helps those most in need.”
After the United States, the European Commission manages the second biggest aid budget globally and gives out grants worth €10 billion per year to partner governments, civil society and organisations including the Global Fund against HIV, Malaria and Tuberculosis.
In the period 2004-2009, thanks to the EU aid budget:
- More than 9 million pupils have enrolled in primary education
- More than 720,000 primary school teachers have been trained
- More than 85,000 new female students have been enrolled in secondary education
- More than five million children have been vaccinated against measles
- More than four million births were attended by health personnel
- More than 5,000 health centres and facilities have been built or renewed
- 750,000 people with HIV have received anti-retroviral combination therapy
- 7.7 million people have been given insecticide-treated nets
- More than 31 million people have been connected to drinking water and 9 million to sanitation facilities
- 36,000 km of roads have been constructed or maintained
The ONE team across Europe will be working hard in the coming months to ensure that our leaders will keep their promises to help those most in need. We’ll keep you updated as we enter into the hot phase of budget negotiations in 2012!
Europeans give thumbs up to increasing EU development aid
Despite the current economic turmoil, 84% of European citizens “strongly support” development aid to help people in developing countries out of poverty, according to a Eurobarometer poll launched yesterday. 62% of those asked were in favour increasing aid to at least 0.7% of Gross National Income by 2015, as European leaders have promised.
Currently, many European countries are off track on this commitment, along with the promise to double aid to Africa by 2010 – the region to which 70% of respondents felt to be the part of the world most in need of increased support.
As European leaders start negotiating the next 7-year EU budget, of which €51 billion is proposed to be spent on development aid, ONE will be working hard to ensure Europeans’ voices are heard and promises to help those most in need are kept.
26,856 Europeans of the age 15 and above were asked 10 questions on aid and development cooperation in September 2011 in face-to-face interviews, about 1000 face-to-face interviews per country. Interestingly among all respondents young people were the most supportive of keeping the 0.7% commitment with 9 out of 10 believing it is important to help the world’s poor.
Ahead of the High-level Forum on Aid Effectiveness those questioned thought the two best ways to improve effectiveness of EU aid would be common policies at EU level and more transparency.
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About the Blog
The International ONE Blog is a daily log of the anti-poverty movement. The site is operated by ONE staff, with guest contributions from ONE volunteers, members and allies.
The content of each post and each comment represents the views of that author and does not necessarily reflect the views of ONE. ONE does not support or oppose any candidate for elected office, and any post expressing support or opposition for a candidate is not endorsed by ONE.
TAGS: Africa, Corruption, European Union, Germany, Transparency