Why Europe matters: the facts
Representing 27 nations and 0.5 billion people, the European Union (EU) is a key player in the field of international development co-operation.
The European Union is the world's largest...
- development aid donor and provider of humanitarian assistance
- single market and the main trading partner of most developing countries
- voluntary and peaceful bloc in the world
The EU is recognised globally as a key development actor, donor and policy-maker - one that has the power to make a significant contribution to international development on a global scale.
The facts
The European Community (EC) has provided aid since its creation in 1957 and is now responsible for around 20% of the world's official Overseas Development Assistance (ODA). Add the bilateral aid given by its 27 Members and the EU accounts for a huge amount of resources - well over half the world's ODA.
The EC alone is the World's fourth largest donor, spending US$11.7 billion in 2007. The EU is the main trading partner of most developing countries, and provides assistance to over 160 countries, including all 49 least developed countries (LDCs).
Why EC aid?
There are a number of reasons why the EC can be an efficient aid channel. These are related to specific features of EC aid such as the type of aid that it delivers, its position as a politically neutral donor with a clear set of values underpinning its work and the reach and scale it has developed over time.
The main justification for having aid programmes at the EC level comes from the 'subsidiarity' principle that informs all Community-level activities. This states that any policy that is managed at the Community level does so because it can achieve its objectives more efficiently than if it was done only at national level.
Beyond aid
The EU has provided leadership on climate change and has made significant contributions to the areas of peace and security. However, trade and agriculture are a vital part of development policy where the EU has a key role to play, and there is still a long way to go.
In the World Trade Organisation (WTO), the EU speaks with one voice. EU governments are powerful stakeholders in the G8, the International Monetary Fund (IMF), the World Bank, and the United Nations.
Also, the EU receives more immigrants per capita than any other part of the world. It is therefore crucial that it has good relations with countries in the global South, from which many of these immigrants come, maximising the benefits of migration for development.
EU aid or EC aid?
- The term 'EU aid' normally includes bilateral aid disbursed by the Member States and aid channelled through and managed by the European Commission. The term 'EC aid' or 'European Community Aid' normally refers only to the latter i.e. aid managed by the European Commission, and excludes bilateral aid from individual Member States.
