Doc. 8281

16 December 1998

North-South development co-operation in the 21st century: a contribution to the Council of Europe's second campaign for global interdependence and solidarity — Europe against poverty and social exclusion

Report

Committee on Economic Affairs and Development

Rapporteurs: Mrs Josette Durrieu, France, Socialist Group, and Mr Claude Frey, Switzerland, Liberal, Democratic and Reformers' Group

Summary

      The Council of Europe's second campaign for global interdependence and solidarity: Europe against poverty and social exclusion was launched in Lisbon in September 1998. It has two goals. First to draw the attention of Europeans to the wide, and growing, wealth gap not only between the richer and the poorer countries in the world, but also to such a gap arising in Europe itself. Secondly, to permit the formulation of better strategies to face these challenges.

The report focuses on development co-operation. Especially in the present difficult world economic situation, it is important that Europe maintain its development co-operation ambitions orienting them even more towards the furtherance of democracy, human rights and the rule of law in recipient countries. Only if development assistance is seen as efficient in producing equitable growth and greater social justice in recipient countries can 'aid fatigue' in donor countries be overcome.

I.        Draft resolution

1.        The Assembly welcomes the current Council of Europe campaign on global interdependence and solidarity: Europe against poverty and social exclusion and recalls its Recommendation 1319 (1997) on the desirability of holding such a campaign. It counts on the campaign not only to render the public more aware of the growing inequalities in wealth between rich and poor in the world as well as in Europe, but also to permit a search for better strategies to combat them.

2.        The Assembly recognises that the climate for development cooperation between Council of Europe member states and the world's poorest nations has changed considerably since the Council's first campaign in 1988, due to strained finances of donor countries and a certain ‘aid fatigue’ among the public, including disillusionment with a perceived lack of efficiency of development assistance or even misuse of funds in certain recipient countries.

3.        The Assembly believes, however, that some donor and some recipient countries have learnt considerably from any past mistakes and stand ready to use future development assistance more efficiently. It considers such assistance now more necessary than ever to improve such areas as public health, transport infrastructure, education and the position of women – sectors which normally do not benefit from private investment but are essential for economic and social development – especially at a time when the global economic crisis hits the poorest developing countries with particular severity.

4.        The Assembly in this context recalls its Resolution 981 (1992) on the new North-South relationship, in which it listed essential conditions for development assistance in needy recipient countries. These are: the respect of human rights, readiness to carry out economic and social reform, especially for the promotion of women, reduction of military expenditure, protection of the environment; and natural catastrophes requiring emergency assistance. To these must now be added resolute measures against economic crime and corruption, in conformity with Assembly Resolution 1147 (1998) on the threat to Europe from economic crime.

5.        The Assembly expects member states, in their future development cooperation policies, to adhere to these principles and to others agreed within international fora such as the OECD's Development Assistance Committee. It also hopes that these principles will guide European Union member states in their current reform of its Lomé Convention with a large number of developing countries.

II. Explanatory memorandum by Mrs Durrieu and Mr Frey

Contents

I.       Introduction

II.        The present state of developing countries

III.        A second campaign for global interdependence and solidarity: Europe against poverty and social exclusion

IV.       Conclusion

I.        Introduction

1.       In September 1998, the Council of Europe launched its second "Campaign for Global Interdependence and Solidarity: Europe against poverty and social exclusion". Planned to end in the spring of 1999, the Campaign has as its goal to raise European awareness of remaining, or even growing, wealth discrepancy between, firstly, rich and poor countries in the world ("Europe in the world") and, secondly, between rich and poor people within Europe's own confine ("The world in Europe"). Another ambition is to permit the formulation of better strategies to face these challenges. 1

2.        This report, prepared within the Committee on Economic Affairs and Development, concentrates on the first of these aspects, that is, on the more traditional North/South problematic, which has for years formed part of its mandate. The Rapporteurs will therefore leave it to other Assembly committees, and in particular the Committee on Social, Health and Family Affairs, to cover other relevant aspects. The report as its point of departure the Assembly's Recommendation 1319 (1997) on the organisation by the Council of Europe of a second European Campaign on North-South interdependence and solidarity in 1998 (Rapporteur: Mr Davis, United Kingdom, SOC; Doc. 7770), pointing to the relevance of the themes of the Campaign in today's Europe.

3.       This report has a dual purpose: firstly, to demonstrate why strengthened co-operation and development action is needed for the developing countries and, secondly, what this Campaign placed under the authority of its oldest general institution could do for Europe.

II.       The present state of developing countries

A.       An uncertain economic future

4.       Looking at the national, or even regional, level, one is first struck by the great heterogeneity of developing countries. Generally speaking, two groups can be distinguished: the first is composed of Asia and Latin America. It is highly industrialised with low or advanced technology and is at present seriously affected by the financial crisis afflicing the global economy. The second group consists of large parts of Africa and the Caribbean and is marked by stagnation or even regression, rather than economic development. This leaves the countries of North Africa and the Mashrik, many of which are oil exporters. More often than not, they are characterised by serious imbalance, marked by virtually mono-industrial development centred essentially on the exploitation of oil.

5.       Only recently, Asia was still regarded as the driving-force of world growth, but the region has for several months been experiencing a serious financial crisis: the Asian system is proving far more fragile than had appeared. All levels of society are affected. There have been numerous company bankruptcies and bank failures, and this has led to a great increase in unemployment. Heretofore, the economic profile of Asia could be summarised in three facts: new, intensive industrialisation, cheap labour and undemanding social legislation. Development was seen in purely economic, or even financial, terms. It was perceived as the permanent search for, and increase in, profits. This theory of development, which ignores political and social aspects, was generally supported and encouraged by the rich countries - or, at least, by most senior financial executives in their private sectors, many of whose companies relocated some of their activities in order to reduce production costs. In reality, growth benefited only a tiny segment of society, since its results were not redistributed. In several of these countries democracy has not been established. Decision-making power remains in the hands of a small number of people for whose benefit growth took place. In these conditions, the system could not be supported by the population, remained fragile and subject to stock-market fluctuations.

6.       As for Latin America, it experienced renewed growth after the Mexican financial crisis of 1995, although it is now affected by the world crisis of 1998. An improvement in economic activity is to be observed in several countries but, despite this, caution is needed: taken individually, every country in the region is still vulnerable and threatened by a fall in international investment. Furthermore, Argentina and Mexico are still experiencing the after-effects of the 1995 crisis, particularly with respect to employment: the unemployment rate is still high in both countries and is further accentuated by the increase in the working population.

7.       In Africa the situation is undoubtedly gloomier. It is true that South Africa can now be placed in the previous group, as can some North African countries, but this is far from being the case of the countries of sub-Saharan Africa. The following description is to be found in the OXFAM report "Africa, Make or Break: Action For Recovery" concerning the crisis the continent is at present experiencing: Economic stagnation, social breakdown, run down infrastructure, a paralysing burden of debt, prices totally unadapted to exports of unrefined products, environmental deterioration: all these are factors threatening to postpone prospects for development in Africa until the next century, with the terrible consequences this involves for people's living conditions. Unless there is an upturn, more than 300 million people - ie half the population of the region - will be living in poverty at the end of the decade.

8.       For donors, agencies, institutions and states, the case of Africa is a problem that is difficult to solve: in 1993 it was observed that the continent received four times more aid per capita than Asia. Although its share of aid was increasing, the gap with the rest of the world was steadily widening. In addition, sub-Saharan Africa was seriously affected by the problem of debt: debts were increasing constantly and were far too burdensome, if the repayment capacity of the countries concerned is taken into account. Thus the stock of the foreign debt of the developing countries had reached $1901 billion at the end of 1995, an 8 per cent increase over 1994. In 1997, the 41 most indebted countries in the world owed a total of $2150 billion. Debt therefore prevents any sustainable and sustained development within the countries and discourages potential foreign private investors. This explains the proposals from various quarters to cancel debts either wholly or in part. This was in particular the case in 1990 when in Resolution 952 the Parliamentary Assembly of the Council of Europe called on OECD member countries "to cancel, entirely or partially, the official development assistance loans of the poorer developing countries", and "to reschedule or consolidate the remaining foreign debt of the Third World, for instance through longer repayment periods, upper limits on interest rates, a limitation of debt servicing to a certain percentage of incomes from exports, or 'debt-against-nature' swaps".

9.       This description of the African situation helps to explain why the majority of countries that make up the group of the Least Developed Countries (LDCs, ie countries with annual per capita income below $600) are African: among the 48 countries now in this category (see The World Economic and Social Report 1997, published by the World Bank) are to be found Angola, Benin, Burkina Faso, Burundi, Cape Verde, the Central African Republic, Chad, Comores, Djibouti, Equatorial Guinea, Eritrea, Ethiopia, Gambia, Guinea, Guinea-Bissau, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, Mozambique, Niger, Rwanda, Sierra Leone, Somalia, Sudan, Togo, Tanzania, Uganda, Zaire and Zambia. In Asia, are Afghanistan, Bangladesh, Bhutan, Cambodia, the Lao People's Democratic Republic, Myanmar and Nepal; in Oceania, the Maldives, Kiribati, Samoa, the Solomon Islands, Tuvalu and Vanuatu; lastly, in Latin America and the Caribbean, Sao Tome and Principe, and Haiti.

10.       In each of these developing countries only a small section of the population benefits from growth, however small it may be, the rest of society tries to survive on a day-to-day basis, for lack of aid or the effects of development. The result is the existence of two-, or more, speed societies, as is the case in India and China, where the weight of tradition is also a factor.

11.       To this is added galloping urbanisation, connected with rapid population growth. Since the Second World War the developing countries have frequently given birth to sprawling conurbations that attract all categories of the population. Of the 20 largest cities in the world in 1990, 14 were in developing countries and it is forecast that this figure will have risen to 17 by the year 2000. In both cases Mexico City is at the top of the list with a population of 20.2 million in 1990 and 25.6 million in the year 2000. Three new cities will appear on the list: Lagos (Nigeria), Karachi (Pakistan) and Dacca (Bangladesh). Their anarchic, irrational development is leading to problems of employment, management and social harmony, and naturally problems concerning the quality of the physical environment and health. Their excessive growth slows or prevents economic advance and agricultural yields, which are essential for ensuring autonomous food security.

12.       Food insecurity is one of the most crucial consequences of poverty and inadequate or non-existent development in the developing countries. At present, between 800 million and one billion people are suffering from hunger. Of these, almost 200 million children under 5 are suffering from malnutrition and nutritional deficiencies which are very likely to have irreversible effects on their health and development. Children born in Mali, Niger or Burkina Faso are more likely to suffer from malnutrition until they are five than they are to go to primary school.

13.       Asia and Africa are particularly affected by this problem, but in the last few years the situation has also deteriorated to the East and South of the Mediterranean Basin. Two facts may explain this: first, an unbalanced development policy; second, and this is a result of the first, chronically inadequate action with respect to food-producing agriculture: in some regions, such as the Mediterranean Basin, development policies have up to now essentially focused on industrialisation and exporting agricultural production. Thus in the hope that aid will arrive from outside, the central governments of developing countries have encouraged the production of cocoa, sugar, nickel, etc and neglected food-producing agriculture, at the expense of local populations who often do not have the means of paying for imported products. If they do, they have to adapt to a new diet.

14.       Moreover, food-producing agriculture is subject to sometimes very difficult climate conditions which allow only uncertain harvests, as the results of El Niño and the hurricane Mitch have demonstrated, for example. Production methods very often remain archaic; technology transfers that results in sustainable increased yields able to meet demand is rare. Lastly, the deterioration of arable land is increasingly limiting indispensable extended cultivation, while the population explosion requires ever-increased production. The persistence of food insecurity is regarded as both one of the major reasons for, and a consequence of, the fact that poverty is not decreasing (see Final Declaration of the World Food Summit in Rome, 13 - 17 November 1996).

15.       Poverty is presented in two different ways: on the one hand, there is lack of income or resources, which may be evaluated by calculating average daily per capita income. Thus the official required minimum is $1 per day. It is considered that this sum enables a person to eat enough to survive for one day. But, in addition to this type of poverty, of which food insecurity is one of the expressions, there is "human" poverty, which concerns human development more generally. An index of human development (Human Poverty Index, HPI) established by the UNDP evaluates the poverty line. It indicates the level of insufficiencies or shortages in a given society on the basis of three criteria: longevity, knowledge or know-how, and decent living standards (access to health services and water, malnourished children under 5, etc). The Human Development Report, 1997, published by the UNDP states that this index is more than 50 per cent in at least seven countries: Niger, Sierra Leone, Burkina Faso, Ethiopia, Mali, Cambodia and Mozambique.

16.       On the eve of the twenty-first century, more than a quarter of the populations of developing countries still live in the most absolute poverty, according to the HPI, and 1.3 billion people live on less than $1 a day. 950 million of them live in Asia. South Asia is particularly affected by the phenomenon, with 550 million poor people living below the poverty line. But it is in sub-Saharan Africa that the highest proportion of poor people in relation to total population is to be found: some 220 million people live below the poverty line, and it is possible that by the year 2000 half the population of Africa will be affected by this scourge. Although much less affected, Latin America and the Caribbean are far from unaffected: 110 million people live in poverty. Brazil and Haiti are particularly concerned and there is a fresh upsurge in the problem.

17.       Within the populations concerned, two categories - rural communities and women - are particularly subject to poverty. For the former, the precariousness of their agriculture does not enable them to ensure their subsistence sustainably. They are often far from centres of activity where most health and educational infrastructure is to be found. Women are often deprived of access to education for reasons that are not always economic. As was recalled during the last session of the European Parliament in February 1998, women's rights are constantly flouted in Afghanistan. The Talibans evoke religious reasons to justify this situation. Furthermore, studies have shown that 38 per cent of women in all developing countries and, more particularly, 61 per cent in the Least Developed Countries (LDCs) are illiterate. They are therefore excluded from the modernisation of their societies which suffer as a result.

18.       These two groups are the prime victims of deficiencies in the health system and difficulty of access to it. At present some 17 million people in developing countries die of infectious or parasitic diseases every year. There is, in particular, a significant upsurge in tuberculosis in Asia and Africa. It should not be forgotten either that more than 90 per cent of people who are HIV positive live in developing countries and that AIDS prevention work is particularly difficult in these regions because of the population's lack of information.

19.       Despite this rather gloomy description of the situation in the developing countries, we should not ignore the fact that there has been some progress, both economic, and in the health and education spheres. Indeed, the devaluation of the CFA franc, which was more or less imposed by France, may be regarded as a means of integrating Africa in the global economic system. Furthermore, between 1980 and 1995, Burkina Faso and Gambia, although ranked among the LDCs, as well as Senegal and Zimbabwe, reduced infant mortality by between a third and a half. Furthermore, over a period of about 25 years, life expectancy has been extended by 10 years and per capita income doubled. Moreover, the standard of living was rising in Asia until the recent crisis, and Latin America is in a period of growth.

20.       But, as we have just seen these improvements are still fragile; they are as much the result of intermittent development policies as of aid given by the developed countries. It nonetheless remains that these last figures are an indispensable minimum, given the situation of the countries concerned by this report. But they cannot prove the existence of sustainable, sustained development. This last concept includes both the economic and social aspects and the political sphere: in the latter there is also a degree of instability, even real instability.

B.        Political repression and instability

21.       Underdevelopment is political as well as economic. Not all developing countries are yet democracies; there are still many totalitarian regimes and dictatorships. As mentioned above, the acute financial crisis Asia is now experiencing - and Africa and Latin America as well - proves the need for democratisation to facilitate the distribution of growth and thus favour sustained, sustainable development that respects the individual. Monocratic regimes favour the interests of only one person or one group and their objectives are usually simply glory, the satisfaction of megalomaniac desires and short-term political advantages that engender political irrationality, as was observed in former Zaire with its late ruler Mobutu. Political systems are very often linked to nepotistic attitudes. The élite thus created remains very distanced from the rest of the population and its daily concerns.

22.       When studying the politics of developing countries one often encounters military dictatorships too, such as the junta that has ruled Burma for many years. The demonstrations of support for Aung San Suu Kyi, the driving-force for democracy in the country, who was awarded the Nobel Peace Prize in 1991 and has been under house arrest since her release in July 1995, prove, if proof were needed, the political aspirations of the population for greater respect of individual freedoms. With respect to this country - and many others - dictatorship may be considered a major obstacle to its smooth development. Financial resources are used for personal ends or to consolidate the regime. Credits are therefore allocated to the army and the domestic security forces generally. Rulers seldom pay any attention to education or health questions or, more generally, to individuals, though sustainable, sustained development centres on them.

23.       In addition, although corruption undeniably exists in democratic regimes, it is far more common in dictatorships: a large part of the population has few rights and no access to the benefits of growth, while another, numerically very small, part benefits from it continuously and often constantly tries to benefit from it still more. Corruption is, or was, particularly rife with respect to the use of development aid. Agencies and voluntary organisations have reported numerous cases of misappropriation of aid. Aid is either used for personal ends or directed towards activities entirely unrelated to their primary objective: for example, a few years ago the ruler of Côte d'Ivoire, Félix Houphouët-Boigny, built an enormous cathedral in Yamassoukro, the town where he was born. The existence of corruption is now recognised in the countries of South Asia, which are hard hit by the financial crisis. Former private investors, who are often from rich Western countries, are beginning to admit that the old system could not last. Corrupt acts were closely linked with totalitarian regimes, such as that in Thailand. In exchange for "gifts" to those in power, foreign companies were ensured the ability to produce in these countries, considered politically stable.

24.       Since the early 1990s, this propensity for fragility deriving from the very nature of the regimes themselves has found expression in the appearance of domestic conflicts, essentially in sub-Saharan Africa. They combine ethnic and/or religious intolerance and struggles for power. This was the case in Burundi, then Rwanda, where the situation is still unstable, and in Zaire, which has become the Democratic Republic of Congo and a new regime has recently been set up after a long, violent armed struggle (then to be itself challenged by insurgents). Furthermore, some regimes are democratic only in name. Changes in leadership during periods of uncertainty, often after elections, show there is a great distance between the proclamation of democracy and its actual existence. Burundi has had this experience, after the bloody ethnic disturbances it went through.

25.       There is an equally dramatic conflict in Sierra Leone, though the media have shown little interest in it. In this developing country, which is classified as an LDC, there has been a total loss of values, and central and local authorities have completely disappeared. The population is subject to a range of armed bands, composed, among others, of children and adolescents armed with machine guns and similar weapons, obtained illegally or otherwise. Such internal wars of course favour the activities of arms dealers and are a great encouragement to exports, including illegal ones.

26.       Conflicts also cause an influx of refugees in neighbouring countries. The number of people living in developing countries who move every year as refugees or displaced persons, temporary workers, legal or illegal migrants is estimated at 75 million. Of these, 12 to 15 million are displaced persons and 14 to 16 million are political refugees within developing countries. As far as African conflicts are concerned, almost all are in the poor part of Africa. The host countries are therefore also developing countries or even LDCs. Their economies are not strong enough to bear a sudden population increase of this order. Thus, the political and economic crisis of one country rebounds on its neighbours and may destabilise the whole region.

27.       The conflicts in Haiti and the Comores are not of the same order: in Haiti, more than eight years' struggle between the former dictatorial, then, military, regime was needed before a regime that claims to be democratic could be installed. More recently, in the Comores, national independence was found guilty of the underdevelopment of the archipelago and this is why a large proportion of the population has demanded attachment to the former metropolis, France.

28.       A third point needs to be remembered when describing the situation of developing countries: the international political situation and, more precisely, the end of the Cold War. It has had two major consequences. Firstly, it has resulted in the massive reduction, or even the end, of so-called "strategic" aid - ie donors - here, only states - granting aid with the principal objective of buying support and creating a sort of sphere of influence with beneficiary developing countries. West and East (let us remember that the former USSR was one of the main donors, although the aid was often military) competed for zones of influence. It should, however, be pointed out that such aid began to fall off in the 1980s.

29.       The end of such "strategic" aid is undermining the power of some dictators for lack of financial support. It is therefore becoming easier for donors, particularly multi-lateral agencies, to define, and apply conditions for, the granting of aid. Their objectives and those of their members are now the same. This also strengthens their powers to intervene in developing countries and increases their capacities and resources. This has created a new influence, which is less political but more favourable to sustained and sustainable development. Aid is no longer conceived superficially, but is beginning genuinely to respond to the hopes and expectations of all populations in difficulty.

30.       The work affecting more the structures and infrastructure of society and the non-governmental organisations (NGOs) is being given a greater role, as the European Union Green Paper on relations between the European Union and the ACP countries on the eve of the 21st century says. This document discusses the future of the Lomé Convention. The NGOs knowledge of the situation on the ground and their frequent specialisation in a particular sphere or type of intervention make them favoured and indispensable interlocutors for donors.

31.       These new relations between North and South, between rich countries and developing countries, are the result of new European international relations. Indeed, the other result of the end of the Cold War has been the full reappearance on the world scene of the countries of Central and Eastern Europe. As European states, they are now the priority focal point of the Council of Europe's work, which is faithful to Article 1 of its Statute: "The aim of the Council of Europe is to achieve a greater unity between its members for the purpose of safeguarding and realising the ideals and principles which are their common heritage and facilitating their economic and social progress". As for the European Union, it has entered into close relations with most of them. Many Central European countries will be involved in the next enlargement of the EU, planned for a few years hence.

III.       A second "Campaign for Global Interdependence and Solidarity: Europe Against Poverty and Social Exclusion"

A.       Europe's role in development cooperation

32.       Generally speaking, Europe is present and active, either at bilateral or multilateral level, in all major aid agencies and institutions. The latter include the UN, the OECD and its agencies, such as the Development Assistance Committee (DAC), on which Europeans are in the majority, or the World Bank and its associations and institutes, such as the International Development Association (IDA), on which, again, they have a strong presence. In addition, centres for research on development have been established on the initiative of the European Union, the Council of Europe or independently. They include the European Centre for Development Policy Management (ECDPM), based in Maastricht and the Institute of Development Studies in Sussex in Great Britain. The ECDPM was founded in the 1980s to find new modes of development co-operation within the framework of relations between the European Union and the ACP countries (Lomé Convention). As for the Council of Europe, it has established the North-South Centre in Lisbon, whose role is to raise pubic awareness of the problems of underdevelopment and encourage dialogue between Europeans and the developing countries.

33.        The European Union regards development as an important part of its external action and has therefore set up various instruments, each one adapted to the region concerned:

*       for the ACP countries, the Lomé Convention and the European Development Fund (EDF);

*       for the countries of central and eastern Europe and the former USSR, the PHARE and       TACIS programmes;

*       for the countries neighbouring southern Europe, a Mediterranean policy;

*       development co-operation programmes and support for the private sector for Latin America and Asia (DCLAA).

There is also a whole series of other supportive actions: the co-operation programmes for European industrialists wishing to invest in the most advanced developing countries in Asia, Latin America and Central and Eastern Europe (ECIP), a humanitarian and food aid fund to react in emergencies, university exchange programmes with the countries of Central and Eastern Europe, the former USSR, Latin America, Asia and the countries of the Mediterranean Basin, programmes to further favour a European presence in Asia, support for development actions carried out by actors in the field, specialised programmes, and assistance for the Middle East peace process. This set of instruments and programmes shows how resolutely Europe is turned towards the rest of the world.

34.       The European Union also uses the services of the European Investment Bank (EIB). Thus, between 1990 and 1994, loans outside the European Union amounted to more than 6 billion ECUs. Since 1992, the EIB has played an essential role in the framework of the Redirected Mediterranean Policy, established in 1991: its purpose is to support the development of the industrial sector in Mediterranean countries, particularly in partnership with European Union businessmen, according to the principle of horizontal co-operation. (Through its Committee on Economic Affairs and Development, the Parliamentary Assembly is developing relations with the EIB.) Thus the European Union is proving to be the principal donor, if bilateral aid is taken into account. It contributes more than 50 per cent of total world aid. In 1994, the financial resources given by Europe could be broken down as follows:

*       ACP countries: 2000 million ECUs, ie 33 per cent;

*       countries of Central and Eastern Europe: 835 million, ie 14 per cent;

*       DCLAAs: 648 million, ie 11 per cent;

*       other Mediterranean countries: 427 million, ie 7 per cent;

*       former USSR: 205 million, ie 3 per cent;

*       the capital of the European Bank for Reconstruction and Development (EBRD): 168       million, ie about 3 per cent;

*       ECIP: 39 million, ie 1 per cent.

To this must be added 1645 million, ie 28 per cent, for transversal actions. These consist of food aid (589 million), humanitarian aid (825 million), and the external part of common policies (231 million).

35.       With respect to food aid and humanitarian aid, often classed as emergency aid, the European Union established the ECHO programme, European Community Humanitarian Office, in 1992. Its purpose is to improve the efficacy of European aid at the time of natural disasters and conflicts in other countries. Its establishment is also the expression of European willingness to show a "humanitarian", perhaps less technocratic, face. Although it has not yet been used to its full capacity, since its establishment in late 1994 ECHO has initiated more than 2400 humanitarian operations in some fifty countries. Of these interventions, more than 80 per cent of projects have been carried out in partnership with NGOs, international aid organisations and United Nations agencies. It should be recalled in this connection that the Green Paper on relations between the European Union and the ACP countries on the eve of the 21st century stressed the role of NGOs in putting in place and consolidating civil society in developing countries.

36.       European aid seeks to respect three principles: partnership, conditionality of aid, and the effectiveness that results from consistency. The first implies that aid programmes should be drawn up on the basis of negotiations between equal interlocutors. The second suggests promoting the values of democracy and human rights. The link between development and respect of democracy and the freedom of the individual has been affirmed for a number of years. It was mentioned in particular in an Assembly report on development cooperation drawn up in 1992 (Resolution 982; Doc. 6594; Rapporteurs: MM Aarts and Holtz): "Development co-operation should primarily be based on the poverty criterion, but should furthermore take into account four additional criteria as regards developing countries: their respect of human rights, their willingness to carry out economic and social reform, their preparedness to reduce military expenditure, and their efforts to preserve the environment". The third, effectiveness and consistency, can be brought about only if aid is based on dialogue between partners, and transparency of the attribution, and then the use, of aid.

37.       These three principles are more or less summed up in the Lomé Convention IV. Free access to the European Union market is provided for all industrial products from ACP countries. The agreement includes a system for stabilising export receipts for certain products such as coffee, rubber and nickel. Reference is made to human rights. A co-operation instrument, the European Development Fund (EDF), a Centre for the Development of Industry (CDI) and a Technical Centre for Agricultural and Rural Cooperation have been set up.

38.       Priority actions are decided upon and prepared in collaboration with interlocutors from the ACP countries. They concern the environment, self-sufficiency in food, trade with Europe and between ACP countries, industrial development, the private sector, technology transfers, technological development, education, health, cultural co-operation, democracy and human rights. In short, the European Union is seeking to support the economic and social development of these countries on the basis of co-operation programmes negotiated with beneficiary governments and the private sector of the countries concerned. Its ultimate aim is to favour sustained and sustainable development. The definition of this was set out by the World Commission on the Environment and Development in 1987: development which responds to the needs of the present without compromising the ability of future generations to respond to their needs in their turn.

39.       To these three basic principles of European aid should probably be added the search for equity and therefore solidarity with the poorest people. Thus, during the G7 meeting in Denver in June 1997, Europe was recognised as the most generous group in the club with respect to development aid: in 1995 it gave four times more aid than the United States and, in particular, seven times more aid to African states than did the U.S. and six times more than Japan.

40.       In addition, it should be recalled that, although private international investment was the most dynamic - at least until the present crisis - its action is often concentrated in countries characterised by the beginnings of growth. For example, in 1996, ten developing countries received more than three-quarters of such investment. This being the case, the developing countries are still a probable area of expansion, if they enter a period of sustainable growth and if legislative and institutional reforms are introduced. It nevertheless remains the case that public provision is primordial, especially official development aid, which is directed towards countries and activities which are of less interest to private investors. Such is the case with the LDCs. A large number of ACP countries are in this category: Angola, Benin, Burkina Faso, Burundi, Cape Verde, the Central African Republic, Chad, the Comores, Djibouti, Equatorial Guinea, Eritrea, Ethiopia, Gambia, Guinea, Guinea-Bissau, Haiti, Kiribati, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, Mozambique, Niger, Rwanda, Samoa, Sao Tomé and Principe, Sierra Leone, Solomon, Somalia, Sudan, Tanzania, Tuvalu, Uganda, Vanuatu, Zaire and Zambia.

41.       There is one more idea worth raising in this context, namely the "quadrilogue" exchange of views among important actors in the development cooperation process. It aims to promote co-operation, such as in the framework of the North-South Centre, between governments, parliamentarians, NGOs and local and regional authorities. Although the quadrilogue is sometimes hard to manage, it may make it possible to have a more precise, more comprehensive view of the problems of the developing countries. Development aid is no longer seen as simply injecting financial resources. As it has been generally accepted that development should be based on the individual, it seems obvious that we should work as closely as possible with the populations of developing countries. Local authorities and NGOs are therefore indispensable interlocutors for governments and parliamentarians who, on the donors' side, decide upon and organise their aid and, on the beneficiary countries' side, must learn to manage it so that it is as beneficial as possible.

42.       These ideas about development aid have been adopted and applied by the Development Assistance Committee (DAC), the Sahel Club, both of which are responsible to the OECD, and other institutions, Europe playing an important role in this. In the 1990s, however, Europe has started to show signs of "aid fatigue". Political discourse continues to be ambitious, or even optimistic, everywhere but disenchantment reigns at operational level, especially as a result of the budgetary constraints prevalent in all European countries at present. This was clear in the mid-way revision of the Lomé Convention IV: the official question everyone was asking was "How can the Convention be improved for the post-1999 period?", but, unofficially, it was worded quite differently: "Will there be a Lomé Convention V, or a similar instrument, after 1999?"

43.       "Aid fatigue" is expressed, first, in a diminution of official development aid from the member countries of the DAC in general. This form of aid fell by 4 per cent between 1995 and 1996 to $55 billion. Taken individually, the members of the Committee are still far from reaching the objective set by the UN in the 1970s of allocating the equivalent of 0.7 per cent of GDP to development aid. More generally, the whole of the OECD is affected by such lassitude and this is resulting in serious operational difficulties for some specialised agencies, such as the United Nations Industrial Development organisation (UNIDO).

44.       What are the reasons for this? The economic situation in Europe is one explanation: despite improvements, unemployment is increasing in some countries, and has stagnated at a high level in others. Its main consequence is the lasting impoverishment of a section of society. More generally, many European states are now experiencing serious financial difficulties that they must resolve. To this must be added the costs of reunification in Germany, and in all European Union countries, the need to respect the Maastricht criteria in order to be able to use the Euro from 1999. As was mentioned above, Europe is in the midst of construction and reconstruction. Some aid has been redirected to the countries of central and eastern Europe, most of which are already members of the Council of Europe and candidates for membership of the European Union. Therefore Europe's main interests are at present European. As one of our rapporteurs explained during the "Intergovernmental Round Table on Raising public Awareness of International Development", held in Llubljana in January 1998, this attitude confirms the adage "Charity begins at home".

45.       Furthermore, aid is now almost exclusively perceived through emergency aid and the "media hype" that surrounds it. This was particularly the case in Somalia during Operation Restore Hope. It is a matter of relieving civilian populations in emergencies. One might also think of Operation Survival in southern Sudan or vaccination programmes in Salvador.

46.       But Europeans, although in favour of increasing the European development aid budget in theory, as the Eurobaromètre survey showed in April 1997, display a degree of lassitude regarding the lack of improvements for the populations of developing countries. It is true that a large proportion of aid often proves ineffective since the situation within the beneficiary country does not allow its optimum use. This was in particular the case in Sudan and Somalia, which were prey to internal, inter-ethnic conflicts when aid reached them. These examples also remind us that food crises are often the result of political problems. Going against all moral principles, food is used as a weapon. It also happens that for lack of co-ordination, aid is distributed haphazardly and ultimately proves inadequate.

47.       Lastly, European "aid fatigue" may also be explained by the increase in the number of NGOs. This probably confused Europeans at first, then caused their donations to fall. Furthermore, the competition between such agencies has helped to undermine the financial bases of some of them and forced them for a time to concentrate their efforts on internal management or publicity. In these conditions, the second "Campaign for Global Interdependence and Solidarity: Europe against poverty and social exclusion" could make a valuable contribution to restimulating Europeans' interest in the activities of European institutions in the world.

B.        Reawakening the interest of Europeans in development cooperation

48.       In view of the difficulties developing countries are now experiencing, it is essential to re-establish Europe's role as a donor. In order to do this, public awareness must first be raised to the problems of poor countries. It is true that the Eurobaromètre survey of April 1997 found that 83 per cent of Europeans were in favour of increasing the European aid budget, but, in practice, they are tending to lose interest in the fate of the developing countries.

49. Furthermore, the deterioration in the situation of some of their fellow citizens means that the latter must be helped too. Worried about their deteriorating financial situation and increasing pauperisation, European countries have a duty to use all the resources needed to remedy these two crucial problems. What the Campaign tries to do is, however, to show that, as Europe looks after itself, it should not forget that there is also a world in need beyond its confines.

50.       Transparency and clarity are essential for the preparation of projects and programmes. It often happens that states delegate their responsibility for aid to agencies to which they make financial contributions. The inefficacy of their action has resulted in their being discredited. In order for them to find renewed favour with donors, they have a duty to strive for clarity, and perhaps to limit their administrative costs.

51.        Most European countries are members of the Council of Europe, while the United States, Canada and Japan, which are all important donors, have observer status. (Canada also has observer status in the Parliamentary Assembly, in which it plays a very active role). The Council of Europe could, therefore, be the framework in which the major principles of development policies are shaped especially at inter-parliamentary level. In this, it would link up with the work of the DAC and IDA which have been trying to harmonise their members' development aid as far as possible for many decades. The goal is at least to reach a common European position so that organisations and agencies distributing aid are more effective.

52.       The second "Campaign for Global Interdependence and Solidarity: Europe against poverty and social exclusion" is not a utopian one. It will obviously not miraculously transform the relations between rich countries and poor countries. The keynote should be openness. The organisers are using the Campaign as a framework in which to explain the failures and successes of current development policies, present the situation of the developing countries, and demonstrate why European aid is indispensable.

53.       Lastly, it should stimulate dialogue among Europeans in order to make them more involved in the aid process and win their support for the continuation of this policy. Presenting, explaining and analysing, should be the keywords of the Campaign, addressed to both adults and children. Furthermore, the principle of the quadrilogue, or similar concepts, may be used to improve or amplify results. The debate the Campaign will stimulate about the problems of the developing countries and, more broadly, the difficulties resulting from poverty and social exclusion should not be the exclusive preserve of traditional decision-makers about aid. It should involve as many people as possible, whatever their place in society.

54.       The Campaign is again being organised by the Council of Europe and will help to promote the values of this institution, namely, human rights, democracy and the rule of law. It should be conceived and perceived as a vast forum encouraging dialogue and new ideas and initiatives.

55.       Like the first Campaign ten years ago, it will express European willingness to resist the temptation of "Euro-egoism". "Euro-egoism" refers to Europe's drawing in upon itself to concentrate exclusively on its own difficulties and concerns.

56.       It is true that serious poverty has reappeared in Europe and its scale requires states and citizens to combat it. The expansion of NGOs like Les Restos du Coeur in France is an example of this. This is why the title of the second Campaign is for "Global Interdependence and Solidarity: Europe against poverty and social exclusion". The problem of poverty in the developing countries cannot be solved in the same way as poverty in Europe: the conditions are too different. But the Campaign must nonetheless show that the continent does not forget either of these problems. Europe is not a planet and living in "Euro-egoism" would amount to denying the values of humanism that it has been trying to promote for centuries.

57.       The Eurobaromètre survey showed that Europeans are increasingly aware of the need to harmonise policies, including with respect to development, in order to arrive at the desired result more surely. Furthermore, in view of the scale of the work to be undertaken to help the developing countries, Europe seems to be a good framework in which to manage aid.

58.       The conception of aid has changed considerably since the first Campaign: it has become less technocratic and more a matter of work on the ground and therefore of a meeting of minds. The financial aspect of aid cannot be ignored, of course, but aid should also be based on a genuine exchange of know-how. Aid may thus appear, both in the eyes of the inhabitants and of the populations in difficulty, as more human and more attentive to the problems of others. In this immense operation, the role of the North-South Centre should not be underestimated. Since its establishment, its principal mission has been to make Europe more aware of North-South questions, particularly of global interdependence brought about by economic development, as well as the need to protect the environment beyond its frontiers, promote human rights and peaceful co-operation, combat war and genocide, and safeguard respect for cultural differences. It therefore embodies the objectives of the Campaign.

C.        A European conception of development cooperation

59.       Europe and its citizens may become more aware of the problems of the developing countries, but the affirmation of a European conception of development and of the relations between states and groups of states also has its part to play in this. The Campaign will convey this, be the instrument for disseminating it. As Ms Robert recalled in her report to the Assembly on demographic change and sustainable development (Recommendation 1243 (1994) and Order N° 498 (1994); Doc. 7098), the hope of living more comfortably and in greater dignity, and eating one's fill is a perfectly legitimate one. But it is true that it forces, essentially the donors, as well as the beneficiaries, to rethink the structures of their societies and their relations with other countries.

60.       The first point of the European idea of development concerns the well-being of human beings. This is the basis of any development, wherever it takes place. This implies actions with respect to public health, education and equality. These three areas are closely linked in some countries. Indeed, equality between men and women is considered an essential objective if sustained development centred on human beings is to be achieved. This principle, which is being applied with varying degrees of rigour in the developed countries, is adhered to, not only by all the European institutions, but also by all the multilateral organisations and agencies, such as the UN and DAC.

61.       In most developing countries it is essential to strengthen the role of women in society and recognise their rights, particularly with respect to contraception. The number of women who die as a result of illegal abortion has already been recalled in the first part of this study. Women have an essential role to play in solving the demographic problem which often blocks growth in developing countries. But their involvement will be possible only if their access to education is facilitated and if they are regarded as equal partners. With respect to health, in addition to the essential development of methods of contraception that are easier and less dangerous than abortion, it is also indispensable to combat the spread of illnesses such as tuberculosis and AIDS which are impeding economic development. This too requires better information and improved access to medical facilities.

62.       The second point seeks to favour complete, homogeneous development of society. On this subject, let us quote Carl-Dieter Spranger, German Minister for Economic Co-operation and Development: "A modern development policy is a global structural policy ... together and with others, we must work to improve the prospects of the whole community, politically and socially, as well as in material and ecological terms". Complete development may in particular be obtained by encouraging the application of sectoral policies and programmes according to needs.

63.       Intervention by NGOs, which are more often present on the ground, and local authorities, which are more aware of all the problems of the society, beginning with the state of poverty, is therefore indispensable. Poverty cannot be reduced simply by adding to development programmes. Growth and its continuance cannot be achieved without combating poverty. In 1992, the above-mentioned report by MM. Aarts and Holtz on "North-South interdependence and solidarity" listed the five criteria for development co-operation: poverty, respect of human rights, good will to carry out economic and social reform, preparedness to reduce military expenditure and efforts to preserve the environment. Apart from poverty, all of these are entirely dependent on the willingness of the developing countries. The existence of these five criteria conditions the attribution of development aid and the result is that the latter is essentially dependent on the internal and external political behaviour of the potential beneficiary. We should recall in this regard the DAC's important political declaration on development co-operation in the 1990s, adopted in 1989: its members concluded that the vicious circle of underdevelopment which associated rapid population growth, poverty, malnutrition, illiteracy and deterioration of the environment, would only be broken through integrated economic development policies and strategies.

64.       The importance of the attitude of the beneficiary country brings us to the third point of European thinking in this field: making the developing countries more responsible and establishing a dialogue between equal actors in the negotiation of aid, projects and programmes. Equality necessarily implies tolerance and respect for the other's culture. These two values are in particular the basis of the work of the North-South Centre. It encourages dialogue and exchange of knowledge. Its goal is in no way the disappearance of the cultures of the developing countries in order to bring about growth. For a long time, the aim has no longer been to adapt the society to the imperatives of development, but rather to adapt development strategies to the societies concerned.

65. The North-South Centre also puts this principle of equality into practice in the use of the quadrilogue: equality between countries, but also equality between the various interlocutors, whatever their place in the population. The Lomé Convention may be seen as a reference in this connection: since its first version in 1974, the agreement has been based on negotiation, with partnership as its keynote, a principle to which the negotiators of the next agreement will attach particular importance.

66. Such behaviour when preparing programmes and policies gives partners in the developing countries more responsibility. Commissioner Pinheiro, responsible for relations with the ACP countries, explained during the same meeting that giving the poor countries responsibility amounted to encouraging them to take over the development process. This is what is known as "ownership". Michel Rocard, Chairperson of the European Parliament's Development Committee, goes further, explaining that development co-operation should be useful for removing obstacles to development, especially in Africa, rather than intervention in the process, which might not be adapted to real needs.

67.        In such an atmosphere of partnership, it will be easier to use development co-operation as a means of managing globalisation, "of reducing its risks and exploiting its potential," in the words of Jacques Santer, President of the European Commission. The purpose of aid is to integrate the developing countries in the global economy. Once development is firmly under way, aid will gradually diminish to be replaced by traditional trade flows. The ultimate goal of aid is its own elimination

68.       In addition to its ideas concerning the goals of aid, the second Campaign will also convey more general European principles about the relations between states. In accordance with the goals of the Council of Europe, it will fight for the advancement of human rights, which are too often flouted, and of democracy, which is still fragile in many countries. In this respect, the North-South Centre, like the Parliamentary Assembly and the European Parliament, is an ideal instrument for disseminating such ideas and supporting the fight. To this should be added the fight against corruption, and the reduction in arms sales. Corruption and arms sales are major hindrances to sustainable, genuine development in the societies where they exist.

69.       Lastly, the second Campaign should enable Europe to express its refusal of the new global bipolarity which is gradually being established: the world is no longer subject to the decades-long East-West divide, but another divide, which may be a long-term threat, seems to be developing between North and South or, to be more precise, between the rich and poor countries, as "North" and "South" do not always accurately describe the geographical position of the countries concerned. However that may be, the maintenance of more effective, more consistent aid is necessary for Europe.

70.       Indeed, if one looks at the relations between Europe and the developing countries, one sees that aid is a means of reducing the migration flows of populations in difficulty to this continent. The continuing, even increasing, poverty of poor countries is a threat to the economic stability of Europe. This is how the late development expert Mahbub Ul Haq put it: "As long as the rich countries continue to try to push back the poor of the Earth, the evils of increasing poverty - such as drugs, epidemics, AIDS, viruses and the deterioration of the environment - will cross frontiers and threaten the populations who belong to the wealthy minorities of the planet. ... In the longer term, the result will be less and less contained and controllable migration". We should recall the terms used in the previously mentioned Robert report on demographic change and sustainable development: the developing countries legitimately aspire to a better, dignified life. If the rich countries do not work to improve the life of these populations in such countries, they will obviously try to live better elsewhere. Development aid may therefore be an effective, certainly less repressive, even less violent, means of combating illegal immigration. This shows clearly that rejecting the new bipolarity is not simply a moral issue, or one of solidarity, but is also a political and economic one.

71.       The Euro-Mediterranean partnership which has been in preparation for some years, is an expression of this rejection. Through the Redirected Mediterranean Policy dating from 1991 and other older actions and programmes, such as the Euro-Arab dialogue in the 1970s conducted by the European Union, or again, through the Lisbon Centre, Europe is trying to establish close relationships of partnership with its southern neighbours. In practical terms, the European Commission favours the establishment by the year 2010 of an immense free trade zone comprising between 600 and 800 million people, or almost forty states. In time it will be possible to transform this area into a Euro-Mediterranean Economic Area. In this connection, the Rapporteurs pay tribute to the other European economic institution, the European Free Trade Association (EFTA), whose members are Iceland, Liechtenstein, Norway and Switzerland. It has concluded an impressive number of free trade agreements both with countries around the Mediterranean and countries in Central and Eastern Europe.

72.       However, while remaining faithful to the crucial North-South trade axis, Europe is not thereby denying the importance of trade within sub-continents or between the various underdeveloped regions. Economic mechanisms should not operate only within the framework of relations between rich and poor countries: they should also facilitate trade between the developing countries themselves. The gulf that separates them from the rich countries will only be reduced if they become as fully part of the global economy as possible.

IV.        Conclusion

73.       The present situation of the developing countries, as well as the political and economic ambitions of the Europe under construction, show that the organisation of the second "Campaign for Global Interdependence and Solidarity: Europe against poverty and social exclusion" corresponds to real needs. The end of the ideological divide between East and West has thrown down a challenge to Europe: is it capable of showing solidarity which is commensurate with its economic strength? This operation in favour of the poor is an answer: it shows a Europe both attentive to the difficulties of others and aware of its own interests.

74.       For the developing countries, the Campaign is a means of making their voices and their differences heard on the international stage outside the traditional frameworks. On the eve of the twenty-first century, communications and information are king. It is therefore unimaginable that the technological village which our planet has become should be divided by an ever-wider, and almost unbridgeable, gap for want of communications. The ultimate objective of the second "Campaign for Global Interdependence and Solidarity: Europe against poverty and social exclusion" should be to try to eliminate that gap.

Reporting committee: Committee on Economic Affairs and Development

Budgetary implications for the Assembly: none

Reference to committee: Doc. 7666 and Reference No. 2124 of 7 November 1996.

Draft resolution unanimously adopted by the committee on 25 November 1998.

Members of the committee: Mrs Degn (Chairperson), MM Elo, Bloetzer, Valleix (Vice-Chairmen), Aliko, Andreoli, Barsony, Behrendt, Billing, Mrs Blattmann, MM. Bonet Casas, Brunhart, Mrs Calner, MM. Cunliffe (Alternate: Davis), Cusimano (Alternate: Turini), Dumitrescu, Mrs Durrieu, MM. Eyskens, Figel (Alternate: Prokes), Frey, Mrs Freyberg, Mrs Frimannsdottir, MM. Galvao Lucas, Gonzalez Laxe, Lord Grenfell, MM Gusenbauer, Gylys, Gyuga, Kacin, Kiratlioglu, Kirilov, Kittis, Kuznetsov, Lambergs, Lazarenko, Leers, Liapis, Mateju, Mautner Markhof (Alternate: Linzer), Mitterrand, Nothomb, Obuljen, Pereira Coelho, Popescu, Poppe, Puche, Regenwetter, Rigo, Rutskoy, Sceberras Trigona, Siebert, Sorocean, Mrs Squarcialupi, Mrs Stepova, Mrs Stoyanova, MM.  Sungur, Telgmaa, Townend, Tripunovksi, Upton (Alternate: Mr Connor), Vasile, Verbeek, Verivakis, Wielowieyski.

N.B. The names of those members present at the meeting are printed in italics.

Secretaries of the committee: MM Torbiörn, Mezei and Ms Ramanauskaite.

1 The following countries are contributing to the campaign, for which the Committee of Ministers has not set aside any specific budgetary resources of the Council of Europe: Austria, Finland, Portugal, San Marino, Slovenia, Switzerland. (They, and other countries, are also organising events that are more or less directly associated with the campaign.