the eu and developing countries Flashcards
EU interest in Developing World
Historical Legacy (former colonies)
Moral Obligation (alleviation of poverty)
Economic Imperative (trade relations)
Global Security (environmental security; failed states)
Developing World Interest in EU
Access to Single European Market (SEM)
EU potential/actual protectionism e.g. CAP
EU market distortion
Key source of FDI; technology; aid
Structure and preferences within EU
external relations
EU weight within WTO (world trade organisation) and International
Financial Institutions (IFIs) vis-à-vis US
Range of Activities
(EC and Member States)
Food Aid
Emergency Aid
Technical Assistance
Humanitarian Aid
Development Finance
Financial Aid and Debt Relief
EDF (energy) Grants, Risk Capital and Loans to Private Sector
Considerations in EU-
Developing World Relations
‘Asymmetric interdependence’ - unequal levels of dependency
EU co-ordination with other actors e.g. part
of EDF contribution to Lomé IV tied to World
Bank structural adjustment programmes - EU coordination with multilateral actors can sometimes dilute its own development policy goals, leading to conflicts of interest.
EU international obligations e.g. WTO - The EU must align its trade and development policies with WTO rules - Tensions may arise if WTO obligations clash with development goals
Development Policy: Area of Parallel
Competence - meaning both the EU and its member states can act in this domain independently or jointly. - lack of coherence between EU-level and national-level policies can undermine the overall effectiveness of development efforts.
What is Lome IV
Lomé IV refers to the fourth Lomé Convention, which was an agreement between the European Union (then the European Community) and the countries of the African, Caribbean, and Pacific (ACP) group. It was signed on December 15, 1989, in Lomé, Togo, and remained in effect until 2000, when it was replaced by the Cotonou Agreement.
Lomé IV was part of a broader series of Lomé Conventions (I-IV), which aimed to foster economic and development cooperation between the EU and ACP countries
EU ‘pyramid of preferences’
vis-à-vis Developing World
Less Developed African, Caribbean and
Pacific states (ACP) - These are the least developed countries (LDCs) within the African, Caribbean, and Pacific (ACP) group.
Benefits:
They often receive the highest level of trade preferences under schemes like the Everything But Arms (EBA) initiative, which allows duty-free and quota-free access to the EU.
This aligns with the EU’s commitment to support the poorest nations
Remaining ACPs -
Generalised System of Preferences
beneficiaries
Most Favoured Nation (MFN) status
describes the hierarchical structure of trade preferences that the European Union offers to its trade partners
The pyramid reflects the EU’s aim to use trade policy as a tool for development
Critics argue that the pyramid perpetuates economic dependency
ACP group
African, Caribbean and Pacific
Cotonou Agreement (June 2000)
The ACP Group consists of 79 states:
48 countries from Sub-Saharan Africa; 16 from the Caribbean and 15 from the Pacific
The EU and Lomé IV
Trade and aid
Financial framework about ECU 27 billion
1990-2000
Free access to the EC’s markets for 99 %
of all ACP products
Non-reciprocal tariff concessions (subject
to MFN minimum for EU exports)
Export income guarantees e.g. STABEX
(agriculture) and SYSMIN (mining)
The EU and Cotonou
Twenty year agreement (2000-2020)
€13.8 billion of development aid for period 2000-
07 from European Development Fund (EDF) plus
€9 billion under-spend from previous programmes;
2008-13: €22.7 billion
Four fundamental principles of EU-ACP
agreement:
– Equality between parties and ACP ‘ownership’
for its development
– Inclusion of non-state actors
– Political dialogue and mutual obligations
– Differentiation between ACPs and fostering
regional development strategies
Based on five interdependent pillars:
- A political dimension
- Participation
- A poverty-reduction strategy
- A new framework for economic and trade
co-operation
- Reform of financial co-operation
First revision in June 2005:
- International Criminal Court, co-operation
against terrorism, weapons of mass
destruction
- Protection of sexual and reproductive health and rights of women
Second revision in March 2010:
- Growing importance of regional integration
- African Union (AU) becomes partner
- Security and fragility, peace-building and
conflict prevention
- Food security, HIV-AIDS, sustainable
fisheries, Climate change
The EU and Samoa Agreement
legal framework for EU relations with 79 countries:
47 African, 16 Caribbean, 15 Pacific countries, and
Republic of Maldives.
Sets out common principles and covers 6 priority areas:
democracy & human rights; sustainable economic growth &
development; climate change; human & social
development; peace and security; migration and mobility
Common foundation at ACP level combined
with three regional protocols for Africa, the Caribbean and
the Pacific with a focus on the regions’ specific needs.
Trends in EU-ACP Relations
‘Phased programming’ of aid from Lomé IV
onwards
Targeting of aid and sanctions on aid
Increased differentiation
Emphasis on regional integration and integration ACPs into world economy
Politicisation of EU development policy
Main Criticisms of EU Policy Towards Developing World
Exploitation asymmetric relationships - Partnership
in rhetoric only - The partnerships may be partnerships in rhetoric only, with the EU exerting disproportionate influence and shaping policies that serve its own strategic and economic goals, rather than fostering genuine mutual benefit.
Double standards e.g. CAP; sustainable
development - The EU is accused of applying double standards, where it preaches equity and sustainability but implements policies that harm the developing world’s economic and environmental prospects
Common Agricultural Policy (CAP) provides massive subsidies to EU farmers
Representation of EU self-interest in neo-liberal order - The EU is seen as prioritizing its own economic and strategic interests under the guise of development
Securitisation; direct link to ESS. - The EU’s development and foreign policies are increasingly tied to security concerns. For example, aid and trade agreements may be linked to issues like controlling migration, countering terrorism, or preventing instability in regions that could affect Europe’s security.
exports
n 2009 the EU and its MSs provided 56 per cent of total official development assistance (ODA) worldwide.
EU member states (MSs) are the largest trading partner of DCs, absorbing about one-fifth of their exports in 2009 and accounting for a similar portion of their imports
EU has a significant indirect influence through its active participation in international organizations that manage the world economic system – for example, the World Bank, the World Trade Organization (WTO)
