Programming
The Cotonou Agreement introduces the idea of performance-based partnerships and abandons the old element of "aid entitlements" (i.e. fixed allocations regardless of performance).
Under the new agreement, the EU can be more selective and flexible in the way it allocated and uses its development resources. Aid allocations will be based on an assessment of each country’s needs and performance and will include the possibility to regularly adjust financial resources in the light of this assessment. In practice, it means that more money can be channelled to "good performers" and that the share of "bad performers" can be reduced.
Aid is allocated to ACP countries in five yearly cycles under the Financial Protocol of the Cotonou Agreement. Under the ninth European Development Fund (EDF) (2002–2007) €13.5 billion was allocated to the ACP region.
The 10th EDF (2008–2013) has a significantly increased budget of €22.7 billion, with €5.6 billion earmarked to support regional programmes, especially investments in regional African infrastructure projects through the EU-Africa Partnership on Infrastructure – an initiative launched in October 2007 in Addis Ababa by the African Union Commission (AUC) and the European Commission.
Through the flexibility provided by the Cotonou Agreement, the 10th EDF enables the EU to funnel more aid money (called incentive amounts) to countries that improve their governance, especially financial, tax and legal systems. While some funds of the 10th EDF have been set aside for unforeseen needs (e.g. related to humanitarian and emergency assistance or to FLEX compensations), most are being programmed in the multi-annual framework for 2008-2013. In the first half of 2012 the programming exercise for the 11th EDF began which for geographic programmes will involve for the first time the European External Action Service as well as the European Commission. As of early 2012 most of the details of the process of programming were contained in internal documents to the European institutions yet independent analysis and a description of the process were provided by the independent foundation the European Centre for Development Policy Management (ECDPM).
Read more about this topic: Cotonou Agreement
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