Fix it or scrap it: reforming European foreign aid

Agues that within the proposals for EU external relations reforms, the need to focus on reforms for EC aid has been largely neglected. Should EU member states "re-nationalise" foreign aid considering the dismal record of the aid managed by the EC?

Since the adoption of the Maastricht Treaty in 1992, foreign aid has become a "community" policy, managed by the Commission under the guidance and supervision of the Council of Ministers, where EU countries are represented. EU member states have thus delegated responsibility to the Commission for managing a substantial portion of their development assistance. EU member states have "locked in" their commitment to further European integration by bounding themselves by treaty to develop a common development policy.

European development aid remains strongly compartmentalised across geographic lines. The co-operation with each one of these regions is governed by its own set of agreements. This structure has created insurmountable inertia that makes it particularly difficult to reform it and define sectoral strategies across regions.

Whilst the generosity of Europe is uncontested and undisputed, the strategic objectives of the EU's nascent foreign policy appear to be overriding Europe's traditional commitment to the alleviation of poverty in developing countries. Aid remains largely concentrated on middle-income countries, and an increasing proportion has been re-directed towards Central and Eastern Europe and the Mediterranean basin.

The gradual overtaking of development aid by foreign policy is illustrated by the latest proposal of the EU Chief for Common Foreign and Security Policy, Javier Solana, who wants to scrap the autonomy of EC aid policy altogether and fully integrate it into foreign policy. On the positive side, this reform will significantly strengthen the political thrust of EC foreign aid in a period when the EU has reiterated its commitment to promote democracy, good governance and the rule of law abroad. There are however inherent tensions between foreign policy and development aid. The short time-span of diplomacy and the long-term objectives of development co-operation are not always compatible.

The author clearly sees current EU proposals subordinating aid to foreign policy concerns. The options remaining are to either "re-nationalise" development aid, or reform it by integrating it more explicitly in the EU's external relations apparatus. In any event, the EU should unequivocably decide whether it wants to maintain EC foreign aid as an autonomous policy field or as an instrument of foreign policy. [adapted from author]