Development Co-operation Report 2018

European Union institutions

Leaving no one behind: The European Union institutions’ approach and priorities

The European Commission’s development co-operation aims to eradicate poverty, by fostering the sustainable economic, social and environmental development of developing countries. The new European Consensus on Development affirms that eradicating poverty, tackling discriminations and inequalities, and leaving no one behind are at the heart of the Commission’s policy.

The Commission works to enhance social cohesion; to reduce inequality of outcomes; and to promote equal opportunities for all, inclusive sustainable growth, and universal, sustainable and equitable social protection systems. It is committed to allocating at least 20% of its official development assistance to social inclusion and human development. It implements a rights-based approach to development, respecting all human rights and promoting inclusion and participation, non-discrimination, equality and equity, transparency and accountability. It sees this as key to leaving no one behind. Through the approach it pays particular attention to disadvantaged and marginalised groups, including children and the elderly in vulnerable situations; persons with disabilities; lesbian, gay, bisexual and transgender persons; migrants and indigenous peoples.

The Commission is updating its programming and reporting tools to address inequalities; to further implement the rights-based approach and gender equality commitments; and to assess progress with delivery of the 2030 Agenda and the European Consensus in line with the pledge to leave no one behind.

Financial flows from the European Union institutions to developing countries

Figure 20.1. Net resource flows to developing countries, 2006-16, EU institutions

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Figure 20.2. Net ODA: Trends in volume, 2006-17, EU institutions

P: preliminary data.

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The European Union institutions’ performance against commitments for effective development co-operation

Table 20.1. Results of the 2016 Global Partnership monitoring round (updated), EU institutions

EU insitutions	Alignment and ownership by partner country (%)				Predictability (%)		Transparency
	Use of country-led results frameworks	Funding recorded in countries’ national budgets	Funding through countries’ systems	Untied ODA	Annual predictability	Medium-term predictability	Retrospective statistics (OECD CRS)	Information for forecasting (OECD FSS)	Publishing to IATI
2016	70.3%	60.2%	45.0%	71.8	72.6%	84.6%	excellent	excellent	good
Baseline	-	67.8%	47.9%	62.3	87.3%	69.4%	good	good	good
Trend	-	⇓	⇓	⇑	⇓	⇑	⇑	⇑	=

Note: Please refer to Annex B for details on the indicators. Data on untied ODA, retrospective statistics and publishing to the IATI have been updated according to the latest information available.

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The European Union institutions’ official development assistance

In 2017, the EU institutions provided USD 16.5 billion in net ODA (preliminary data), which represented a 6.7% decrease in real terms from 2016, mostly due to a lower level of loan disbursements.

The EU institutions’ share of untied ODA (excluding administrative costs and in-donor refugee costs) was 71.8% in 2016 (up from 62.3% in 2015). Loans represented 5.3% of gross ODA.

In 2016, almost all of the EU’s gross ODA (98.4%) was provided bilaterally. The EU channelled 18.5% of its bilateral ODA for projects implemented by multilateral organisations (multi-bi/non-core).

Figure 20.3. ODA composition in 2010-16 and distribution of multilateral ODA in 2016, EU institutions

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In 2016, 51.6% of the EU institutions’ bilateral ODA was programmed with partner countries. Project-type interventions accounted for 65% of country programmable aid, while budget support accounted for 21%. Thirty-one per cent of bilateral ODA was categorised as “other and unallocated”.

Figure 20.4. Composition of bilateral ODA, 2016, gross disbursements, EU institutions

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In 2016, USD 2 billion of bilateral ODA was channelled to and through civil society organisations (CSOs), corresponding to 11% of bilateral ODA, remaining stable from 11.6% in 2015.

Figure 20.5. Gross bilateral ODA disbursements to and through CSOs by type of CSO, 2010-16, EU institutions

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Bilateral ODA focused primarily on Eastern Europe and sub-Saharan Africa. In 2016, USD 5.5 billion was allocated to Eastern Europe and USD 4.5 billion to sub-Saharan Africa.

Figure 20.6. Share of bilateral ODA by region, 2016, gross disbursements, EU institutions

Note: Eleven per cent of bilateral ODA allocated was unspecified by region in 2016. This share is not represented on the map.

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In 2016, 38.7% of bilateral ODA went to the top 10 recipients. The European Union has specific agreements and instruments with 79 African, Caribbean and Pacific countries and 16 of its eastern and southern neighbour countries. In 2016, its support to fragile contexts reached USD 6.2 billion (33% of gross bilateral ODA). Support to fragile contexts consisted mainly of project-type interventions (76%) and contributions to pooled funds (9%).

Figure 20.7. Bilateral ODA to top recipients, 2016, gross disbursements, EU institutions

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In 2016, 23.1% of bilateral ODA was allocated to least developed countries (LDCs), which amounted to USD 4.3 billion. The share increased from 22.4% in 2015. Upper middle-income countries still received the highest share of bilateral ODA in 2016 (34.7%). This is partly due to the instrument for pre-accession with nine European countries.

Figure 20.8. Bilateral ODA by income group, 2010-16, gross disbursements, EU institutions

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In 2016, 29.6% of bilateral ODA was allocated to social infrastructure and services (USD 6.9 billion), with a strong focus on government and civil society (USD 3.6 billion). Twenty-seven per cent was allocated to economic infrastructure and services, with a focus on energy generation and supply (USD 2.6 billion), and transport and storage (USD 2.1 billion). USD 2.5 billion was allocated to humanitarian aid. In 2016, the EU institutions committed USD 7.7 million (0.04% of bilateral allocable aid) to the mobilisation of domestic resources in developing countries. The EU also committed USD 8.6 billion (39.6% of bilateral allocable aid) to promote aid for trade and to improve developing countries’ trade performance and integration into the world economy.

Figure 20.9. Share of gross bilateral ODA by sector, 2015-16, commitments, EU institutions

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USD 9.8 billion of bilateral ODA supported gender equality. In 2016, 44.9% of the EU’s bilateral allocable aid had gender equality and women’s empowerment as a principal or significant objective, compared to 52.7% in 2015. A high share of the EU’s aid to population and reproductive health, health, and production focuses on gender.

Figure 20.10. Share of bilateral allocable ODA in support of gender equality by sector, 2016, commitments, EU institutions

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USD 6.6 billion of bilateral ODA supported the environment in 2016. This represented 30.5% of bilateral allocable aid (up from 20.8% in 2015). In 2016, 27% (USD 5.9 billion) of the EU’s bilateral allocable aid focused particularly on climate change.

Figure 20.11. Bilateral allocable ODA in support of global and local environment objectives, 2010-16, commitments, EU institutions

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Note to reader: Annex B provides “Methodological notes on the profiles of Development Assistance Committee members”.