European Parliament hearing on aid effectiveness
On 22 January, Eurodad Director Jean Saldanha spoke as part of the public hearing on aid effectiveness held by the European Parliament Committee on Development.
The hearing will feed into a forthcoming report by DEVE Member Tomas Tobé that comes at a crucial moment as negotiations for the EU’s multiannual budget are ongoing and the EU is debating the future of its development finance architecture.
Acknowledging the positive and proactive role the European Parliament has played in keeping development effectiveness on the EU’s agenda, Eurodad focused on the key role of ODA as a vital and irreplaceable resource for eradicating poverty and tackling inequalities. Development effectiveness principles are key to unleash the catalytic potential of ODA, while recent assessments show a lack of substantial progress in their implementation. Current practices such as the persistence of informal aid tying and the lack of sufficient checks and balances in the EU’s approach to blended finance, risk to undermine the EU’s commitment to the development effectiveness principles. Reversing this trend will require a time-bound action plan to complete unfinished business and setting up instruments, such as the EU’s scheme to offer guarantees for private sector investments outside Europe, differently to ensure local economies can benefit.
In recent weeks, EU institutions are discussing proposals to reform the EU’s development finance architecture. These discussions are heavily focused on setting up new institutions without addressing the failures of existing ones. This processcomes with high transaction costs while do not address the core issue of addressing the ‘development effectiveness deficit’ in the current set-up.
Below you can find Jean’s speaking points and the recording of the public hearing ‘Effectiveness, efficiency and results for EU aid for sustainable development’, she took part in together with Susanna Moorehead, Chair of OECD’s Development Assistance Committee, Thomas Gass, vice-director of the Swiss development cooperation agency and co-chair of the Global Partnership for Effective Development Cooperation and Vitalice Meja, Director of Reality of Aid Africa.