The ECDPM Weekly Compass is your reliable source on the latest policy issues concerning international cooperation, with a focus on the EU and its relations with countries in Africa, the Caribbean and the Pacific - in your mailbox Friday afternoons.


Editor's Pick

EU negotiates future development funding: where will the money go?
For those concerned with development and Africa, the two big questions during the negotiations of the EU’s next budget (2014-2020) are how much money will be available, and what is it going to be earmarked for, and which countries are going to get it. Member states ministers finalised a key round of budget talks last week. In an article on the Talking Point blog ECDPM’s Ulrika Kilnes looks at the progress they made so far in the negotiations on external action expenditure, differentiation and budgetisation of the European Development Fund.

Policy News

Private sector and development: common or conflicting interests?
“Profit and developmental objectives can be obtained together, but more needs to be understood about where the alignment of interests takes place” explain ECDPM’s Bruce Byiers and Anna Rosengren in a new discussion paper on the private sector’s role in development. But before we can identify common interests, it is important to be clear about what we mean by "engaging the private sector". The paper distinguishes between “private sector development” - focusing on domestic economies of poor countries - and engaging the “private sector for development” - making international business contribute to inclusive growth. Although there are overlaps, these two forms of engagement operate through different channels and thus have different practical implications and impacts. A clear understanding of reasons behind past successes and failures should form the basis of ongoing policy discussions.
UN proposes new ways to raise USD 400 billion a year for development
Substantial amounts of money are needed to address global challenges, but low levels of domestic savings and limited access to private capital flows in developing countries and fiscal pressures in donor countries makes raising sufficient financial resources difficult. Innovative sources of development financing might be a way to fill the gap. The World Economic and Social Survey 2012: In Search of New Development Finance, released this week, analyses current and proposed mechanisms for innovative development finance such as coordinated taxes on carbon emissions, air traffic, and financial and currency transactions. The report confirms their potential, but concludes that realizing this requires strong political will, new types of international agreements and changes in global governance.
How can Tanzania stop losing tax revenue
A new report estimates that Tanzania is losing around USD 1 billion a year in revenues through tax evasion, capital flight and tax incentives. Lost revenue could be used to double the education and health budgets and triple spending on agriculture, argues the report. This would also allow Tanzania to reduce its reliance on foreign aid. The report makes several recommendations to the government for a more radical approach to raising sufficient tax revenues. An effective tax system is also vital in light of future income from Tanzania’s recently-discovered oil and gas.

Engaging African diasporas for peace: cornerstones for an emerging EU agenda
A more proactive and strategic EU engagement with African diasporas in order to tap into their specific knowledge and experience could help to adapt EU policies in the field of peace and security, argues a new paper from the Institute for Security Studies. Initiatives can range from very loose forms of interaction like information sharing or informal dialogue to the involvement of groups in concrete projects or formalised forums. Better coordination within the EU institutions and with EU Member States could lead to a more coherent conflict analysis and the mainstreaming of diaspora engagement. The Joint Africa-EU Strategy’s Peace and Security Partnership and EU regional strategies for the Sahel and the Horn of Africa can also provide frameworks to address the role of diasporas. A more profound and systematic approach could also be developed the paper argues.
EU policymakers: who is who and what can they do?
The European Peacebuilding Liaison Office updated its overview document mapping roles and responsibilities of EU policymakers relating to peacebuilding and conflict. It also outlines of the division of labor between the different actors involved. As the document has been prepared as a resource for civil society organisations working on conflict, it also identifies opportunities for advocacy work.

Additional Articles in the Weekly Compass-Extended Version

More recently uploaded resources are available in the Weekly Compass-Extended Version.
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No 116, 6 July 2012

Dear Reader,

     Cyprus assumed the rotating 6-month presidency for the EU Council on 1 July. The future Multiannual Financial Framework will continue to be a major debate. Development priorities include EU support of sustainable change in transition societies, engagement with civil society, social protection, financing for development and food security. Development Ministers will meet on 15 October to discuss these issues as well as the post-2015 Millennium Development Goals framework. EU Foreign Ministers are scheduled to discuss the state of play of the EU-SADC Economic Partnership Agreement in November.
     The EU this week also adopted its priorities for the United Nations General Assembly meeting being held in September. They include peace, security, human rights and development.
     Reuters reported yesterday that the WTO will show restraint in the demands they make on the poorest candidate countries and to allow them flexibility in applying the WTO's rules. The WTO's General Council on July 25-26 should formally agree the proposal.  
     UK International Development Secretary, Andrew Mitchell, was named one of the three Co-Chairs of the new Global Partnership for Aid Effectiveness at the final meeting last week of the OECD’s Working Group on Aid Effectiveness which the Global Partnership replaces. The other two co-chairs, one from an emerging economy and the other from partner country, as well as the 18 members of the Steering Committee will be identified by end of July.  Civil society is allotted one seat in the Steering Committee. The Global Partnership endorsed a common, open standard for publishing  aid information and agreed a set of 10 indicators to monitoring the Global Partnership.
     The African Union Summit on boosting intra-African trade will be held in Addis next week. According to the agenda of the Summit, the Heads of State will proceed to the election of the Chairperson and Deputy Chairperson of the African Union Commission, though press reports indicate this is probably unlikely as disagreements between member states continue.
     Faten Aggad will present ECDPM’s Briefing Note, Can the Pan-African Programme revitalise the JAES? to next week’s European Parliament Development Committee. James Mackie of ECDPM and Dirk Willem te Velde of ODI will also present the European Report on Development 2011-2012. Confronting scarcity: Managing water, energy and land for inclusive and sustainable growth which was prepared for the EC by ODI, DIE and ECDPM to the Committe as well as to the Eiuropean Council. Watch live or a recording after here.
     The European Parliament’s Foreign Affairs Committee will be discussing the EU Horn of Africa strategy and external action priorities at their meeting next week. Watch live or a recording after here.
     For more on the latest policy issues concerning international cooperation, with a focus on the EU and its relations with countries in Africa, the Caribbean and the Pacific, see the Weekly Compass-Extended Version.

All the best,

Melissa Julian

Off The Track   

How will transparency initiatives impact development agencies?
This post on the website blog reports on a discussion that took place on the International Aid Transparency Initiative and its impacts on US-based development agencies.


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