The urgency of development needs

Additional resources to finance development
Africa
Improving international governance

  Evolution of french ODA (graph): link

  France leads the G7 in terms of relative effort

France’s ODA has been increasing since 2002. This trend is the concrete reflection of the political commitment, made by the French president at the Monterrey Summit in 2002, to bring the level of our ODA up to 0.5% of gross national income (GNI) by 2007, then to 0.7% by 2012. As a result, French ODA is expected to reach €7.4 billion in 2005 (0.44% of GNI), putting France ahead of the European commitment made in Barcelona in March 2002  [1] France encourages its G7partners to commit publicly to the target of 0.7%. It supported the European Council’s decision to set more ambitious aid targets for member states for 2010 and 2015. In terms of relative effort, France remains the leading G7 country, ahead of the UK, Germany and Canada. France is also the leading contributor by volume and relative share of ODA in the European Union as the leading contributor to the European Development Fund (EDF). [2]

  Beyond an increase in ODA...

But France also advocates the implementation of innovative resources for development. The international community is aware of the high likelihood that the MDGs will not be attained in 2015, particularly in Africa. The goals cannot be achieved unless the resources allocated to them are doubled. The first way to help attain the MDGs is obviously to increase ODA. Commitments have been made on ODA, but even if they are honoured in full, the amounts available would still fall short of needs. It is therefore essential to implement supplementary innovative financing mechanisms. These new sources of financing should also improve the quality of financing for development. Only stable, predictable aid flows can guarantee the long-term implementation of human development programmes (education, health).

  ...France advocates the introduction of international solidarity levies

For these reasons, France, particularly the French president, has expressed on several occasions its support for the introduction of innovative financing mechanisms, particularly international solidarity levies.  [3]

To that end, several discussions have taken place, notably within the Landau working group (see inset) and the enlarged Quadripartite Group, set up in January 2004 and now omprising Algeria, Brazil, Chile, France, Germany and Spain. Drawing on those discussions, France, supported notably by Germany, has proposed the introduction of a pilot solidarity levy on airline tickets, the income from which could be allocated to the fight against HIV/AIDS and other major pandemics. France hopes to rally a large number of countries to this project by the time of the New York Summit in September 2005, so that it can be implemented as soon as possible.

  Harmonising and enhancing aid effectiveness

France also intends to play a leading role in the area of aid effectiveness and harmonisation. At France’s invitation, the second High-Level Forum on Joint Progress Towards Enhanced Aid Effectiveness gathered 130 delegations in Paris between 28 February and 2 March 2005. The event followed the work of the Working Party on Aid Effectiveness and Donor Practices in OECD’s Development Assistance Committee (DAC). The Paris Declaration, adopted at the end of the forum, expresses two decisive advances:

• The declaration formalises the consensus on enhancing aid effectiveness based on five fundamental concepts: harmonisation of donor practices, appropriation by beneficiary countries of their development and poverty-reduction strategies, donor alignment on those strategies, results-oriented management, and mutual responsibility of donors and beneficiaries to achieve the results in terms of development.

• Progress in those .ve areas will now be measured using 12 quantitative indicators. France will do its utmost to ensure that by September 2005 the developed world, as it agreed to do in Paris, associates those 12 indicators with 12 goals, at once ambitious and realistic, and achieve those by 2010. Within the European Union, France defends rapid implementation of the recommendations of the Council of November 2004, which called for greater coordination and harmonisation of EU and European bilateral aid, particularly through joint multi-year programmes.

  France’s pre-eminent role on debt

France traditionally plays an active role on debt, particularly as Chairman of the Paris Club since 1956. Alongside Japan, France is the leading bilateral contributor to the debt-relief initiative for heavily-indebted poor countries (HIPC initiative).France has committed a total of $13 billion for the 37 countries eligible for the initiative. At end-2004, France had cancelled $3.5 billion worth of HIPC debt and remains committed within the international .nancial community to the rapid and full implementation of the initiative.

France also supported the agreement between G8 .nance Ministers in London on 11th June 2005 to cancel 100% of the multilateral debt of HIPCs that have reached completion point. This is an important step, which increases the resources available to poor countries for achieving the MDGs. The agreement also preserves the financial viability of international institutions, since, at the request of France, donors have agreed to contribute the resources required to offset the cost of its implementation.

For countries that are not eligible for the HIPC initiative, France is fully involved in the implementation of the Evian approach, adopted by the Paris Club in  [4] on the initiative of the French presidency of the G7, with a view to ensuring the long-term sustainability of debt and put an end to rescheduling cycles within the Paris Club.

  Cancellation of multilateral debt: a necessary but insufficient instrument

Debt cancellation must be integrated into donors’ overall strategy to raise development .nancing. The additional resources that will be freed up for poor countries as a result of the cancellation of the multilateral debt of HIPCs will not be sufficient to attain the MDGs. France therefore places great importance on the creation of innovative .nancing instruments for development.

  Towards a commodity shock buffer mechanism

Poor countries are extremely vulnerable to commodity price fluctuations. Their export income is generated by a small number of products: 50% of countries derive more than 50% of their export revenue from only three products. The current situation of African cotton-producing countries attests to that vulnerability.

Existing instruments do not enable poor countries to withstand commodity price shocks. Therefore, at France’s initiative, the principle of a “shock facility” was accepted at the finance G7 in April 2005. The exact mechanism of its implementation is being discussed. In particular, France will monitor the equitable financing of the facility.

  A longstanding commitment that continues to strengthenIn priority, ODA must go to Africa, the continent worst affected by poverty and the most behind on the MDGs. Africa remains the priority intervention zone for French development assistance. Two-thirds of French bilateral aid goes to Africa. A special effort is made for least developed countries (0.12% of GDP), with a view to achieving the target set by the United Nations of 0.15% of GDP by 2012. This commitment is longstanding and continues to strengthen.

  Debt-reduction and development agreements (C2Ds)

Africa is the primary bene.fiiary of debt relief and general budget aid. France, which is one of Africa’s biggest creditors, has always played a driving role in the treatment of developing country debt. Within the framework of debt cancellations granted to countries eligible for the HIPC initiative, France has also implemented debt-reduction and development contracts  [5](C2Ds). These are the specific mechanism by which the French government cancels those countries’ ODA debt, i.e. surpassing the effort of the Paris Club through the HIPC initiative.

Graph : Geographical breakdown of net transfers 2003. Link

  Unfailing support for NEPAD This support for Africa re.ects the principles of the New Partnership for Africa’s Development (NEPAD), which aims to improve political and economic management in member countries collectively and spur regional integration and infrastructure development in a spirit of partnership with developed countries.

The support that France has provided to NEPAD since its creation, increased at the Evian Summit, is structuring the development actions it operates south of the Sahara.

  A limited number of priority areas for greater effectiveness

In addition to increasing the resources deployed, the French government has concentrated its bilateral aid to Africa on certain areas, with a concern for effectiveness. In the priority sectors of the MDGs (education, water, health, agriculture, environment), multi-year strategies have been adopted. Priority sectors for aid are also beginning to be defined in every partner country, through partnership framework papers that set out a limited number of priority areas for development assistance, after consultation with other donors (in particular the European Union) and the beneficiary country.

The actions undertaken in this area aim to reduce poverty and inequality. They are underpinned by the right of all to benefit from access to education, to quality health care and a preserved environment. The goal is to promote sustainable development, both in social and environmental terms. The European Union is committed to stepping up its action in favour of access to basic social services and combating environmental damage. Ultimately, France supports an approach that fosters a redistribution of assets (land, health, knowledge, etc.), including more equitable redistribution of income to eliminate poverty and promote growth.

  Consolidating the rule of law and improving management in partner countries

Improving governance in partner countries is another strong focus of France’s ODA policy. The increase in aid will be more effective if partner countries improve their governance, which is the strategy that was de.ned at the Monterrey Conference in 2002. Governance and democracy have also been placed at the top of the prerequisites for achieving sustainable development by African heads of state within the framework of NEPAD.

With its partners, France is committed to consolidating the rule of law and improving management. Strengthening governance and peace and security is also one of the priorities chosen by the European Union for its future operations in Africa. These could take the form of support for the African Union (AU) and the African Peer Review Mechanism, and twinning between EU and AU institutions.

  Supporting processes of political reform

France supports the processes of political reform in which its partners are engaged. In societies where the value of the human person is affirmed, the public authorities that respect individual and collective freedoms and are representative of citizens enjoy greater legitimacy. France’s action is aimed at consolidating the rule of law and democracy, strengthening the capacity to manage the state - by making administrations more efficient and closer to citizens - and encouraging regional integration. This action is not limited to national governments, but includes work with all development actors, particularly at local level. The rule of law is also strengthened by the introduction of instruments to facilitate dialogue between actors and enhance social cohesion.

  Capacity-building in partner countries

In order to take the priorities of its African partners properly into account, France bases its actions on Poverty Reduction Strategy Papers (PRSPs), which most partner countries have implemented. To assist the drafting of PRSPs, France has shifted the focus of its technical assistance to capacity-building in partner countries, particularly through a contribution to regional competency centres. The support for Afristat (Economic and Statistical Observatory for Sub Saharan Africa) since its creation is an illustration of that principle.

  Playing an active role in multi-donor funds

France’s bilateral aid is also increasingly disbursed within a harmonised framework. In most beneficiary countries, French aid is coordinated with other donors for the implementation of the PRSPs adopted by each country. France also contributes to multi-donor programme aid. For example, its action on basic education comes under the commitment to “Education for All” taken on at the World Education Forum (Dakar, 2000) and the “Education for All” - Fast Track Initiative partnership, focused on achieving the MDG of universal primary education.

Through the Fast Track partnership, France contributes to the implementation of the Monterrey consensus by increasing funds for basic education in countries that benefit from the nitiative; by supporting the necessary improvement of donor coordination and harmonisation; and by assisting partner countries to draft credible, sustainable sector strategies. France has already committed €54 million to the three African countries selected for the “Fast Track Initiative” (Burkina Faso, Mauritania and Niger) and will continue its commitment as new countries are covered.

  Financing specific instruments for Africa

Lastly, under our multilateral aid stricto sensu, France finances instruments speci.cally targeting Africa. This year France became the number-one contributor to the African Development Fund (ADF). It also raised its contribution to the International Development Association (IDA) by 41%.

France also actively supports the major global initiatives to combat the scourges that affect Africa in particular. For example, in the area of health, France is the number-two annual contributor (€150 million) to the Global Fund to Fight AIDS, Tuberculosis and Malaria, 60% of whose commitments are earmarked for Africa (see inset). France also supports the Global Alliance for Vaccines and Immunisation (GAVI) to catch up the lag in vaccination coverage that persists in many African countries, as well as the “Global Initiative to eradicate Poliomyelitis”, whose main target is in African countries.

  French support for Africa through the European Union

France urges greater involvement of the European Union and all member states in Africa. At France’s instigation, the European Union has agreed to pay more attention to sub-Saharan Africa in the lead-up to the session in New York, firstly by earmarking 50% of new resources generated by the increase in ODA to Africa (as the G8 Summit in Kananaskis recommended), and secondly by de.ning a collective EU strategy for African development, which could make a ifference and involve other development actors. At the request of the Council, the Commission will present this strategy in autumn.

Since 1995 France has been the leading contributor to the European Development Fund (24.3%), the .nancial instrument of the Cotonou Agreement. The agreement makes a growing contribution to the achievement of the MDGs in the 78 ACP countries, in particular through budget aid programmes that fund health and education policies and transport infrastructure.

Graph: Official development assistance: link.

  A European action plan on commodities

Since the French president’s trade initiative for Africa in February 2003, France has worked with its European partners to ensure that the specific features of African economies are taken into account in the area of trade. That effort led to a European action plan on commodities and a specific partnership for cotton, with a view to improving trading conditions for commodities (reform of the Common Market Organisation for cotton), strengthening the productive sector and mitigating the volatility of commodity prices.

With its partners from the European Union, France also encourages developed countries and large emerging countries to open their markets completely (no customs duties or quotas) to products from least developed countries, on the model of the “Everything but Arms” (EBA) initiative.

France will monitor the economic partnership agreements to ensure that they actually contribute to the development of Africa’s economies.

  Better coordination between international institutions

In order for the international community’s commitment to attaining the MDGs and expanding world trade is to be reflected consistently and effectively on the ground, it is essential to strengthen coordination and cooperation between international organisations. This means not only avoiding wasting time and resources, but also pooling ideas and competencies.

France actively supports improving coordination through the UN, the OECD, the IMF, the World Bank and the WTO. Concretely, this support is illustrated at international level by discussion forums such as the OECD’s High-Level Forum on Joint Progress Towards Enhanced Aid Effectiveness, held in Paris in February 2005; by the participation of the IMF and World Bank in the UN Economic and Social Council Ecosoc); by regular contributions from the World Bank Institute (WBI) to WTO negotiations; and by coordination meetings between donors, such as the Cayenne meeting on aid for Haiti, organised by France in March 2005.

  Strengthening economic and social governance

France also argues for the creation of a political body for economic and social governance. This structure would be responsible for improving coordination between governments and international institutions, in order to anticipate global problems better and define common lines of action. The aim is not to create a “world government”, but to improve the consistency and effectiveness of international action in the economic and social fields. This initiative follows the same logic as the enlarged meeting of Heads of State and Government from the North and South on the edge of the G8, inaugurated in 2003 in Evian under French presidency. The structure would consist of the countries of the G20 (major industrialised and major emerging countries) and representatives of the least developed countries. The representatives of competent international organisations depending on the agenda would also participate in the proceedings.

  Restoring Ecosoc’s role of instigation

The effectiveness of Ecosoc will depend on its link with existing organisations. In that respect, improving global governance can only be envisaged through a reform of the UN, which should be based on three priority goals: enable Ecosoc to play its role as a discussion forum on development issues, restore its ability to play a role of instigation and coordination with the system for all economic, social and environmental issues; and promote the reform of the operation and financing of the UN operational agencies to improve the consistency and effectiveness of their action in the field.

  Reform of environmental governance: towards a UNEO

Improving international governance of the environment is also essential. Environmental protection is not just an environmental problem. It has a direct impact on poverty reduction and international security. Strengthening governance and institutions is an essential aspect of the implementation of the Johannesburg action plan for sustainable development.

After more than a year of informal debate within the framework of a working group it set up, France considers that transforming the United Nations Environment Programme (UNEP) into a specialised agency of the United Nations would help the international community to mobilise resources for environmental protection more effectively. This upgrade would give more visibility and political force to nternational action on the environment and strengthen institutional capacities in developing countries.

After the September Summit and within the framework of the 60th session of the United Nations General Assembly , France, together with its partners from the European Union, intends to propose the creation of a working group, under the responsibility of the General Assembly, to study the feasibility and terms and conditions of upgrading UNEP to a UNEO (United Nations Environment Organisation).