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In the news: EU aid

EU aid is a ‘smart investment’

By Jenny Lei Ravelo13 November 2012

EU flag. A nongovernmental organization has released a new report on EU aid ahead of another budget discussion next week. The message: €51 billion ($64.8 billion) in aid could provide as much as €11 billion in net gains for the bloc. Photo by: Rock Cohen / CC BY-SA

A nongovernmental organization has released a new report on EU aid ahead of another budget discussion next week. The message: €51 billion ($64.8 billion) in aid could provide as much as €11 billion in net gains for the bloc.

The report from ONE tries to convince European leaders, who remain in disagreement, to keep the proposed €51 billion aid budget for 2014-2020. It tries to make the case that EU aid is “a smart investment” and not just purely altruistic. It argues that investing in productive investments, such as infrastructure, for example, could boost trade and imports from aid recipient countries.

But these positive gains are dependent on aid being “channeled effectively”  a critical point also mentioned in the report. This could pose problems when convincing EU leaders to keep the proposed budget, as aid effectiveness remains a complex issue in development. Proposed funding for the European Development Fund and the Development Cooperation Instrument for the next Multiannual Financial Framework is at €30 billion and €21 billion, respectively.

The report, according to ONE’s Johanna Stratmann, is the first to “quantify the impact of EU aid on donor and recipient countries” alike. It is among the many reports and campaigns aid advocates produce every year to protect foreign aid from government cuts.

Such actions are more apparent in recent years amid government austerity measures because of the global economic downturn.

EU heads of state are set to meet Nov. 22-23 to discuss the 2014-2020 budget. They are expected to arrive into an agreement by the end of the year.

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About the author

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Jenny Lei Ravelo

Jenny Lei Ravelo is a staff writer for Devex. She covers breaking international development news in the Middle East, North Africa, Asia and the Pacific for the Development Newswire, often focusing on aid worker security. Jenny is also a regular contributor to the GDB and other Devex publications.


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