EU escape from bureaucracy?

The EU: 'the sleeping giant' needs to escape from its bureaucratic bonds. Rethinking its financing policy is necessary to get better value for money.

The EU is the largest aid donor in the world, but needs to rethink its financing policy in the next budget round if it is to get better value for money. A new perspective – based more on trade than aid – will be of more use to developing country partners, and settle European taxpayers concerns about financing development policy. “The EU is like Gulliver – the sleeping giant, but in the next seven years – the time of the next budget framework, it can escape from its bureaucratic bonds”.  

Kampeta Sayinzoga, Permanent Secretary and Secretary to the Treasury Rwandan Ministry of Finance and Economic Planning, described how her country became one of the African success stories, moving from direct funding to budget support over the last 16 years. "The new model of EU support moved from aid to budget support by focusing on results not processes," she said.

Investment has to be well done – building capacity to invest productively. There is a huge pool of savings in low-income countries in Africa, which can be drawn on.

The EU should pay more attention to Africa, as a new neighbour, seeing development in Africa as an EU neighbour policy for 2014.

Published on 1 March 2011