A new Asia-Europe partnership for development
By Shada Islam
It used to be fairly simple – but it did not get results. Aid from rich industrialized
countries to poorer ones was seen as the key to growth and development.
Ministers and officials spent hours haggling over aid packages and critics
routinely referred “hand-outs” to poor countries.
Official aid from rich to poor countries remains a vital tool in the combat against
poverty. However, for many middle-income countries in
dwarfed by private sector financial transfers.
In the 21st Century, working for growth and development is no longer merely
about increasing development aid.
This is particularly true in
to middle-income status. True, while extreme poverty is still a reality in
and access to private financial flows – with little aid.
Andris Piebalgs, European Commissioner responsible for development told an
ASEM conference in
treat
“In some countries it is about putting in place basic services, in others it is about
accompanying growth, jobs and development…we will listen to countries needs
and adapt our instruments and cooperation,” the Commissioner told the 200
high-level Asian and European experts and officials as well as representatives of
international organizations and civil-society groups, attending the meeting in
Certainly, poverty-alleviation is still an over-arching global challenge. An
estimated 1.4 billion people continue to live in extreme poverty and, according to
the World Bank, the current global economic crisis will take a serious toll, with as
many as another 53 million people being thrust into living on less than $1.25 a
day, the definition of “extreme poverty”.
The meeting in
poverty eradication and achieve the anti-poverty Millennium Development Goals
(MDGs), adopted by world leaders in 2000 - and which call on developed
countries to set aside 0.7 per cent of their GNI (gross national income) for
Official Development Assistance (ODA) by 2015.
The current economic crisis has shown that aid is still very important in poorer
Asian countries such as
in larger countries, aid accounts for much less in terms of GDP: in
7
and in
a point likely to be made when world leaders meet in
conference in September this year.
Sustainable development hinges on more than aid. As Koos Richelle, Director
General for Development at the European Commission pointed out in
has “never got countries out of poverty.” Growth and development comes from
“the policy of the country and efforts of the people,” he said.
Crucially, ensuring growth requires the mobilization of a range of “non-aid”
policies to support development. It is conditional on good governance –
including fair taxation and anti-corruption action - adopted by national
governments. The focus is on political and economic reform and building market
economies. Development cannot be imposed from outside, it has to be “owned”
by countries. Developing countries have to implement the correct policies and
strategies, involving both state and non-state actors.
“We wish to work in a spirit where countries take ownership of their own
development…we don’t have any longer a donor-recipient approach but work as
equal partners in a challenging global village,” said Piebalgs.
In other words, development cooperation is no longer about charity, it is about
enlightened mutual self-interest. As
globalised world, an increase in prosperity in one country or region translates
into rising trade, investments and sales in other parts of the world.
ASEM provides a good framework for innovative and creative thinking on how to
make aid more effective, ensure better coordination among donors, facilitate
trade and encourage open markets. Encouraging private investments and
financial flows, fostering public-private partnerships, bolstering the work of civil
society actors and ensuring policy coherence so that all international policies
work in the same direction – namely to reduce poverty, hunger and disease – are
important.
“Smarter aid”, ie assistance that is more selective, innovative and effective, has
to be the name of the game.
These and other issues need to be explored further within the ASEM context.
First, because the EU is the largest provider of ODA in the world, giving almost 4
billion euros a year in assistance to the less well-off Asian countries which are
members of ASEM.
Second, there are still many people living in extreme poverty in
Third, there is a compelling need for stronger cooperation and coordination
between the EU and Asian countries which are also aid donors, including
and
Fourth, the EU and Asian countries need to reassess whether aid development
cooperation should continue to play a significant role in
countries and emerging economies –
resources.
At a time when overall aid resources are limited, there is an argument in favour
of focusing development funds on poorer Asian countries. This does not mean
ignoring the plight of poor people in
require that more creative thinking is used to raise funds in such nations.
“EU aid should act as a catalyst for additional investment,” Pielbags told the
meeting in
or more additional euros.” Having given a 200 million euro grant to
Ministry of Education and announced the setting up of an Asian Investment
Facility, Piebalgs also said
investment, support infrastructure projects but also help countries in health and
education.
The meeting in Yogyakarta underlined that “Europe and
multi-dimensional partnership that goes beyond aid.” The ASEM 8 summit in
leaders to elaborate on forging a new partnership which goes further – much
further – than aid.