GREEN PAPER
on relations between the European Union and the ACP countries
on the eve of the 21st century
Challenges and options for a new partnership
CHAPTER I.
GLOBAL CHANGES AFFECTING ACP-EU RELATIONS
This report should be cited as: European Commission. 1996. Green Paper on relations
between the European Union and the ACP countries on the eve of the 21st century -
Challenges and options for a new partnership. Brussels: European Commission
DG VIII page
A. The international context and its consequences for the ACP countries and Europe
Unprecedented changes have occurred on the international scene since the beginning of
ACP-EU cooperation, the scale of which is illustrated by:
1. Economic globalization and interdependence
The growth of trade, the unification of capital markets and the globalization of
production and distribution networks represent both opportunities and new risks for Europe
and the ACP states.
The emergence of new motors of development in Asia and Latin America itself a factor of
globalization modifies both the geography of international growth and the direction of
private capital flows. Many countries which in 1960 were included among the world's less
developed states, often with large populations, now have greatly reduced poverty and
significantly improved human development indicators.
The new economic constraints are forcing all states and societies to adjust by
implementing radical reforms. EU countries must make their economies more competitive,
reform their social systems, and tackle the problem of declining social cohesion. High
unemployment, rising poverty and social exclusion are a major concern and may lead to both
countries and individuals to turn in on themselves. Budgetary constraints, linked
ultimately to the pressure of an ageing population on social security systems, do not make
the task of reform any easier.
The ACP states are only marginal players in global trade (2%) and international
investment flows (less than 1%). They must integrate more fully into global trade,
diversify their production base and their export outlets. As in other regions, regional
synergies and cooperation, both economic and political, would contribute to this process.
Action on a national scale appears increasingly inadequate as the growing
interdependence between the social and economic systems of various regions, the appearance
of new systemic environmental dangers, migration, terrorism, drugs, and international
organized crime, call into question the notion of national sovereignty. Global regulation
is progressing very slowly; it seems likely that the parallel trends apparent today a
stronger multilateralism and regionalism will continue.
2. The ever faster spread of technological innovation
The information society is a spectacular aspect of globalization which could accelerate
change, reduce technological gaps and open new roads to development. Conversely, the lack
of basic infrastructure in the poorest countries, the concentration of production of new
technologies in certain industrialized countries and the possibility of a
culturally-motivated rejection of these technologies risk widening the gap between poorer
and richer countries and increasing social inequality.
Europe is striving to be ultra-competitive in high-technology sectors. ACP countries
must create the right conditions for technology transfers and adapt new technologies to
their own needs. These two aims are complementary, as the notion of what constitutes
"advanced technology" is constantly evolving. The most advanced technologies can
now be used to solve problems in developing countries without a prior transition period.
Technology plays a crucial role in the quest for sustainable development. However, the
cost of protecting the environment may, in the short term, be in conflict with the aim of
increasing the competitiveness of ACP countries. It is imperative to reach international
agreement on clean technology and how to share the costs of environmental protection
between industrialized and developing countries.
3. Uneven demographic trends
The world population is growing at an unprecedented rate: from 2 billion people in
1930, it reached 4 billion in 1975 and is close to 6 billion today. According to recent
projections, the figure will be near 8 billion in the year 2020. Should the entire world
population attain the standard of living and levels of consumption of industrialized
countries today (including certain newly industrialized countries), pressure on the
environment would become intolerable. Moreover, population growth is accompanied by an
increase in urbanization, especially in poorer countries.
The imbalance between the populations of the North and South will be reflected in the
balance of power in the multilateral system, especially if accompanied by economic
performance, as exemplified by Asia's new prominence.
While the global rate of population growth is expected to fall, sub-Saharan Africa is a
notable exception. This region still has very strong population growth (2.9% annually),
which is not easily compatible with the aims of sustainable development. Rising
urbanization is putting acute pressure on infrastructure and social services, especially
education. Getting to grips with urban development and managing the local environment will
increasingly be a prerequisite of political stability in Africa.
Massive inter-African migration is a factor promoting economic integration. However
these movements are often uncontrolled and may also become an important cause of political
risk and instability.
North-South migrationary pressures, especially between Africa and Europe, are likely to
rise considerably; this prospect underlines the relevance of development.
4. The end of the Cold War and the emergence of a multipolar world.
Economics plays an ever greater role in external relations, while the end of East-West
rivalry has rendered ideology-based support obsolete and given middle-sized nations more
influence and a degree of autonomy in foreign affairs. The direct responsibility of states
for their internal and external security has been reestablished in both North and South.
The new geopolitical reality is taking shape as the coexistence of regional entities.
Asia, in particular, has become an economic player of the first order and is expected to
reinforce its political presence on the international scene in the years to come.
While the European Union is engaged in an important phase of stepping up the process of
integration, it is also transforming its identity. On the one hand, the events that led to
its founding are receding into the past; on the other, it is preparing to deal with the
fundamental questions posed by its eastward expansion, which will make the Union more
diverse and will call for special efforts to ensure the acceptance of its values of peace,
solidarity and cooperation.
In this new context, both for internal reasons and in order to respond to external
demands, the European Union will affirm its political standing by adopting a more
effective, more global common foreign policy. North-South relations will be one of the
first strands of this policy: Europe can thus affirm its identity in adding a new
dimension to the special relationship between the Union and ACP countries. The end of the
Cold War will give a new strategic and security dimension to development cooperation. At
the same time, Europe will be shouldering new tasks which will increase its economic
responsibilities in fields other than development. Development policy and multilateral
trade policy should be consistent and seen as two facets of the Union's external identity.
B. The external action of the Union and development cooperation policy
1. Development cooperation: a cornerstone of coherent external policy
The Union's external policy has three main components:
- the common commercial policy, based on uniform principles, especially with regard to the
conclusion of tariff and trade agreements and measures to protect trade: the Union has
adopted a broadly liberal overall policy centred on compliance with multilateral
obligations, the building of a better-managed multilateral system, and on the active
pursuit of wider access to external markets;
- systematic cooperation and joint actions in foreign policy, centred on the aims of peace
and security, consolidation of democracy and the rule of law, and human rights and
fundamental freedoms;
- development cooperation: support for sustainable economic and social development of the
developing countries, especially the most disadvantaged among them, their smooth and
gradual integration into the world economy and the campaign against poverty. According to
the terms of the Treaty, Community policy in this area should contribute to the general
objective of developing and consolidating democracy and the rule of law, and that of
respecting human rights and fundamental freedoms;
A number of other Union policies are closely linked to external affairs, especially
environment, agriculture and fisheries, science and research, the information society and
the harmonization of standards for the internal market.
In all these fields, the Union pursues aims which respond to specific concerns.
Development cooperation makes a large contribution to the coherence of the Union's
external actions in that its aims ultimately complement the Union's political and economic
objectives:
- the aim of development is to achieve sustainable economic progress and social
equilibrium aims that underlay the setting-up of the European Union.
- development should help solve global problems (environment, population, epidemic
diseases, trafficking) by making it possible for developing countries to help manage these
problems;
- development cooperation, specifically the role Europe plays in poorer countries,
enhances Europe's image around the world. Europe cannot be accused of commercialism at a
time when market shares in emerging economies are hotly contested. In practice, European
producers will benefit in the medium or long term from increased prosperity in partner
countries with fast-growing populations. Another factor to take into account is that
ACP-EU relations embrace four continents, thanks to which European economies are
well-placed vis-ŕ-vis emerging regional blocks in sub-Saharan Africa, Latin America, Asia
and the Pacific;
- the political aspects of development (democracy, human rights, fundamental liberties,
rule of law), its social benefits (better living conditions, preventing the disintegration
of the social fabric), and its environmental concerns (conflicts and food deficits due to
water shortages and soil degradation) meet some of the security concerns of the EU (risk
of armed conflict, spread of nuclear weapons, terrorism, migration). Moreover, regional
and global economic integration, which the Union supports, contributes significantly to
stabilization.
Development cooperation is an important part of the Union's external policy.
Nevertheless, it must retain enough autonomy to meet the Union's own long-term needs,
which require continuity. Cooperation may contribute to the aims of foreign policy but
must not be ruled by them. The explicit ties between various strands of external policy
are governed by the principle of consistency.
2. Development aid: loss of legitimacy and the demand for efficiency
During the 1980s various factors contributed to a general feeling of disillusionment
with the actual results of development aid: the budgetary constraints of donor countries;
rising unemployment and the worsening of social problems in industrialized countries, with
the consequent tendency to turn inwards; the perception that, in comparison to trade and
investment, aid had played a marginal role in the economic success of certain Asian and
Latin American countries; finally, the evidence that despite certain remarkable results,
such as improved health, education and access to drinking water, many countries in
sub-Saharan Africa, recipients of substantial aid and cooperation resources, had fallen
behind and remained on the margins of global economic and technological development.
This negative reaction to cooperation has been further exacerbated by rising violence,
the spread of fratricidal wars, the bankruptcy of many African states in recent years, the
perception that corruption was endemic and aid was being siphoned off by powerful elites.
Repeated crises have increased substantially the number of humanitarian operations, which
divert resources from development budgets; these interventions have also led to a certain
confusion between emergency aid and more long-term aid, and between humanitarian and
socio-economic needs.
Faced with the downward pressure on development aid budgets, but also aware of the
extent of extreme poverty and the threat it represents in terms of instability and
potential conflicts, today's partners in cooperation have no alternative but to reexamine
the criteria governing the allocation and management of aid in order to achieve a better
and more efficient use of available funds.
Apart from the need to improve results, development thinking itself has moved on.
Global economic changes (liberalization, technological progress, emerging economies) and
the lessons from the success stories of Asia, Latin America, or Africa, have radically
modified the philosophy of development. This is especially true of perceptions about the
role of the state and relations between public and private actors.
Another factor contributing to the overhaul of cooperation is the end of the Cold War:
the new political openness has allowed the emergence of a wide consensus on the principles
of democracy and the market economy. International political dialogue has become deeper
and richer by incorporating the experiences of new participants. Since 1990, the great
international conferences on the environment, human rights, population, social
development, the role of women, and food security have demonstrated that very dissimilar
countries can agree on common values and principles concerning essential issues for
development.
These processes have already led to important changes in the concepts of aid and its
role in development, which have been partly incorporated in the ACP-EU cooperation policy.
These changes fall within four main categories:
- an enhanced political dimension (resolution of 28 November 1991 and revised Article 5 of
Lomé IV: human rights, democratic principles, rule of law and good governance);
- stronger ties between relief, rehabilitation and development aid;
- the formulation of new approaches concerning the role of aid and a redefinition of the
parties' respective roles: emphasis is placed on the policy environment, local capacity
building, the role of civil society, and on new ways of including other agents of
development, especially in the private sector;
- a change in priorities, by reducing intervention in productive sectors and integrating
relatively new themes:
- (i) new ways of supporting social development (budget aid and securing social expenses),
taking into account more systematically the impact of cooperation on poorer groups and
greater emphasis on the role of women, demographic issues, education and training;
- (ii) actions in favour of environmental protection, the management of natural resources,
and sustainable development: they involve environmental impact studies in all projects as
well as financing for specific environmental programmes and projects;
- (iii) the creation of an instrument for structural adjustment support at macroeconomic
and sectoral levels;
- (iv) institutional reforms, development of administrative capacity, building civil
society, development of a more participatory approach, and decentralized cooperation;
- (v) a new conception of the economic role of the state, policies to foster private
sector development, and support for trade development.
These changes are expected to increase the effectiveness of development policies.
However, it is too early to assess their real impact.
C. The Union's development role
As a force for stability, a model of cooperation and regional integration, a leading
trading power and the largest single source of official development assistance, the Union
has a major role to play in the development of less fortunate regions.
The Union can contribute in five main ways:
- Through its active participation in the multilateral system, in the fields of security,
trade and investment, economic and monetary cooperation, the Union's actions have an
appreciable impact in the developing countries. The Union's long-standing concern to see
the less developed countries integrated into international trade is now a key
consideration in its dealings with the ACP countries.
- In view of the general principle that Community action should be consistent and
sustained, the Union is duty-bound to ensure that the developing countries are able to
benefit from the process of European integration. Access to the single market, soon to be
completed by the move to a single currency, and the prospect of enlargement, which brings
with it a risk of deflection of trade and investment as well as new trading opportunities,
are key aspects of any European policy towards other regions.
- The Union stands out among multilateral institutions involved in development issues (the
World Bank, IMF, regional development banks, etc.) because it alone is a political entity.
The Union has the political clout needed to back an equitable and sustainable development
model consonant with its own fundamental principles and the socio-cultural values
underpinning its vision of society. The importance it attaches to human rights, social
values, education and training and the preservation of the environment combine with its
firsthand experience of underpinning the liberalization of trade with carefully designed
structural policies, and its efforts in the field of regional cooperation and integration
to make it a unique force in the development field.
- The Union must make full use of its capacity to mobilize enough aid resources to achieve
critical mass and engage in aid policies pursuing long-term objectives. Compared with
other donors - now that US aid budgets have been slashed - the Union is a major source of
official development assistance: with the volume of international aid in sharp decline
since the early 1990s, the share of the total accounted for by the Union (Community and
Member States) is increasing all the time (53% in 1995).
- Lastly, by continuing its internal coordination efforts in application of the principle
of complementarity between the Community's development policy and the Member States'
bilateral policies, the Union can give a fillip to coordination efforts by the
international donor community in various forums (the UN, OECD, G7 initiatives to
strengthen coordination between the multilateral institutions, the Special Programme for
Africa, consultative groups, round tables, etc.). Greater coordination in respect both of
global initiatives and individual recipient countries is now crucial to improving the
effectiveness and efficiency of aid policies.
The renewed momentum recently given to the European project must, at least in part, be
ascribed to Europeans' efforts to deal with the major changes in world affairs described
in this opening chapter. Still far from over, this acceleration serves two objectives: to
enhance Europeans' capacity for action within a political union and to show democratic
solidarity with the countries of central and eastern Europe. To endorse these two
objectives, which are central to the present Intergovernmental Conference (IGC), is to
recognize, in a way, the need in future for a European development policy: Europe cannot
claim to be a player on the world stage without a responsible strategy towards the
different regions of the South, and in particular those most at risk of poverty and
marginalization. It cannot pride itself on its solidarity with Eastern Europe's fledgling
democracies without confirming a partnership with countries feeling their way towards a
just society founded on fundamental human rights.
Contents
Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6
Updated on December 19, 1996
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