Executive summary



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Adapted from source: www.europa.eu.int


TABLE 3 : LIST OF ACP COUNTRIES: SIGNATORIES TO LOMÉ & COTONOU AGREEMENTS

ORIGINAL SIGNATORIES – 1975 Lomé I





Bahamas

Barbados

Benin

Botswana

Burkina Faso

Burundi

Cameroon

Chad

Central African Republic

Congo (Brazzaville)

Congo (DRC)

Côte d’Ivoire

Equatorial Guinea

Ethiopia

Fiji

Gabon

Gambia

Ghana

Grenada

Guinea

Guinea Bissau

Guyana

Jamaica

Kenya

Lesotho

Liberia

Madagascar

Malawi

Mali

Mauritania

Mauritius

Niger

Nigeria

Rwanda

Samoa

Senegal

Sierra Leone

Somalia

Sudan

Swaziland

Tanzania

Togo

Tonga

Trinidad & Tobago

Uganda

Zambia






Lomé II 1980 (New member states)





Cape Verde

Comoros

Djibouti

Dominica

Kiribati

Papua New Guinea

Sao Tomé & Principe

Seychelles

St Lucia

St Vincent & the Grenadines

Solomon Islands

Suriname

Tuvalu



Lomé III 1985 (new member states)





Angola

Antigua & Barbuda

Elize

Mozambique

St Kitts & Nevis

Vanuatu

Zimbabwe









Lomé IV 1990 (new member states)





Dominican Republic

Haiti






Revision of Lomé IV 1995





Eritrea

Namibia






Cotonou Agreement 2000





Cook Islands

Marshall Islands

Micronesia

Nauru

Niue

Palau

South Africa









2004 Accession to Cotonou





Timor Leste





Adapted from source: www.europa.eu.int

The European Development Fund came into being in 1958 and stood alone as a separate fund because at the time the European Community had no other external actions. The European Development Fund (EDF) is a pluriennial fund for grants to the ex-colonies and has gone through 9 five-year processes to reach the form it now takes in the 9th EDF and the recently approved 10th EDF whose value is yet unknown. The present EDF which still stands outside the budget provisions of Heading 4, but for which the European Parliament still needs to give discharge on the use of its resources, consists of:

Long-term envelope €10 billion

Regional envelope € 1,3 billion

Investment facility € 2,2 billion (applied by the European Investment Bank)

(There is a conditional balance of €1 billion to which reference will be made in Chapter 3.)

Provision for the two organs of the ACP Group, amount, for the Centre for Development of Enterprise (CDE), to €90 million and for the Technical Centre for Agriculture and Rural Development, to €70 million.20 For 2006/7 €64m is earmarked out of the conditional €1bn. To this must be added €25 million for the management by the CDE of PROINVEST, an EC body to promote investment and do in-depth investment studies.
When the UK entered the EEC in 1973, special arrangements had to be made for the British developing country newly independent states to be included in this special relationship with the EEC. The process of inclusion of the new group of states went through birth pangs which have subsequently helped to cement the solidarity of the ACP Group:


  • the EEC forewent reciprocity in trade preferences in the Lomé Convention 1975 so, thenceforth, preferences were one-way;




  • the development element in the agreement was reinforced with compensation mechanisms to help stabilise export earnings (STABEX) and rehabilitation of the mining industry (SYSMIN) – which are replaced by FLEX (fluctuations in export losses, although the former provisions still appear in the Partnership Agreement);




  • special protocols gave privileged access in commodities – sugar, rum, beef & veal and bananas;




  • through inspired leadership of the then Ministers and Presidents in the developing countries, the potential animosities between anglophone and francophone countries (and later lusophone countries in 1985) were overcome and the leaders brought about a brotherhood remarkable in the annals of Africa and in crossing the Atlantic and Pacific Oceans, these two branches adding a unique element to the developing countries Group;




  • the inclusion of geographically distant parts such as the Caribbean and the Pacific was justified in logical and clear terms – Minister Michael Manley (later to be Prime Minister of Jamaica) gave a six-point plan for the integration of the African, Caribbean and Pacific regions under the roof of the ACP; and




  • the ACP Group was founded in 1975 as a legal entity with an international persona under the banner of the Georgetown Agreement which affirmed the common identity of the members of the ACP Group.

The EEC now signed an agreement called the Lomé Convention (Lomé I) and the members of the group grew from 18 (Yaoundé) to 46 while the number of EEC countries had increased from 6 to nine. The enlargement process of the EU is given in Table 4:



TABLE 4 : MEMBERSHIP OF EUROPEAN UNION INDICATING ACCESSION DATES


Treaty of Rome 1957

1973 – UK Accession

1981

1986

1995

2004

Applicant Countries






















Belgium

Denmark

Greece

Spain

Austria

Cyprus

Bulgaria (2007)

France

Ireland




Portugal

Finland

Czech Republic

Romania (2007)

Germany

U.K.







Sweden

Estonia

Croatia

Italy













Hungary

Turkey

Luxembourg













Latvia




The Netherlands













Lithuania



















Malta



















Poland



















Slovakia



















Slovenia




Adapted from Europa – The EU at a glance www.europa.eu.int



Some of those interviewed regarded the geographic dispersion of the ACP Group over the Caribbean, the Pacific and Africa as a weakness with potential fault lines for its cohesion. This view is not universally held: the more plausible opinion holds that the spread over diverse peoples and countries in the developing world gives the ACP Group a unique advantage in bringing, firstly, the two outlying parts of this organisation into the centre of the Africa debate where the world focus lies presently, and secondly, provides sub-Saharan Africa with fresh and objective vision and analysis in its debates and development policy. Moreover, the ACP Group, with the African diaspora which is attracting even further attention, has an historic, social and cultural link which is only now surfacing in practical ways – the Bob Marley phenomenon which stretched across the Atlantic, is evidence of the sentimental and psychological strength of this link.
In this respect, the ACP Group has a unique advantage over the African Union because the relationship with the Caribbean is at its strongest in sub-Saharan Africa. But, there is also the ethnic link between the Pacific and Madagascar which has yet to find its expression in the ACP context. These social attachments comprise yet another sentimental and useful relationship, as is the presence of citizens whose ancestors originated from the Indian sub-continent. They are potentially a cultural bridge to the formation of formal ties with India. Mauritius, South Africa, Trinidad and Guyana already celebrate the relationship. Combined, these several cultural links lend a role to the ACP Group unlike any other.
The relationship with Europe is long-standing and both the Commonwealth and the Agence Intergouvernementale de la Francophonie make the relationship the foundation of their activities in the cultural field and cross-border publishing, films, TV documentaries, music, drama and art are seen not just as a social/cultural link but also an economic and productive link. The first recommendation of this Study relates to the unique interlinking in the ACP Group. Pursuant to the successful ACP Group Conference of Ministers of Culture, there is a fruitful follow-up that can earn and provide solidarity as required by the Presidents and Heads of Government. It is recommended that a study be launched into the formation in the Secretariat of an Event Division with the purpose of seeking co-operation in the private sector/impresario sector for organising music, art and performing arts events and TV documentaries on which the ACP Group can put its stamp of approval – at a price – thereby generating disposable funds, but also indemnifying it from losses. The stamp of approval of the ACP Group could become the seal of Good Housekeeping to which reference would be made. It is noteworthy that the Agence Intergouvernementale de la Francophonie lists cultural events in the economic rubric of its activities – an income generator.

In the time of the Cold War, the numerical strength of the ACP Group gave it a political leverage and an importance for the EEC. Its weight both in representing a large portion of the developing world and its numerical political strength was recognised by the EEC by the continued renewal of the Lomé Convention through five versions until its replacement by the Cotonou Partnership Agreement in 2000 and its revision in February 2005. Notable was the role of ACP votes in electing Pascal Lamy to the Head of the WTO.


The shift from Lomé to Cotonou is a manifestly political reorientation on the part of the now European Union and attention is drawn to Table 5 below. Development co-operation is placed in the form of a political agenda requiring political obligations by the ACP Group members to be fulfilled as a precondition for the provision of budgetary and project aid out of the European Development Fund to ACP members. Already the consequences of this change of direction have been seen in the case of Zimbabwe and Kenya. Furthermore, peaceful resolution of disputes also affects development disbursements: the EU, with the approval of the ACP Group, diverted funds from the Intra-ACP funding in terms of Annex I Art. 3(b) to the African Union for the Africa Peace Initiative: over these funds the ACP Group has absolutely no supervisory function even though they are at base ACP-specific funds! In the revision of Annex IV of the Cotonou Agreement, in states in conflict, the EC can even take over the functions of the former authorities in development aid21.
The EC has given itself wide room for manoeuvre in diverting some €1,5 billion, with the consent of the ACP Group, to large-scale initiatives such as the health programme managed by the World Health Organisation (Global Fund for combating AIDS, malaria and tuberculosis), the water project and the African Peace Initiative, managed by the African Union. This is a marked change from the past – there is no co-management of these funds as Article 57(4) of the Cotonou Agreement provides: this is also the principle that governed how the Chief Authorising Officer controlled the EDF in terms of Annex IV Chapter 6 – the Chief Authorising Officer is now replaced in the revised Annex IV by “the Commission” and even where the Commission is involved in what is termed “centralised method”, it is hard to discern how “decentralised management” can in any way be involved in these particular disbursements. The funds are spent outside the normal management of the EDF. Furthermore, the ACP-EC Development Finance Committee is also blindsided in how these delegated funds are regulated.
This deviation in the way the EC deals with the distribution of the funds dedicated to the ACP Group is interpreted by some involved in the preparation of this Study as a desire on the part of the EC to spend large sums partly for the purpose of satisfying the need to increase absorption and avoid the impediments encountered in passing through the Partnership principle. The ACP Group needs to take a hard look at the consent it grants and its effect on its bailiwick and this Study recommends that the co-management principle be reintroduced for such delegated funding.
The leap from development accompanied by political inputs as provided for in the Lomé Convention, to the firm linking in the Cotonou Agreement of development funding for recipients to political behaviour, human rights and economic transparency in governance (in line with the EU’s external activities towards other developing countries) is illustrated neatly in Table 5.
This policy shift on the part of AidCo and the Commission for Development is accompanied by other new measures such as budget support instead of project aid, regional “partnership” agreements and delegation of operational powers to the local level with centralised policy control:
TABLE 5: DIFFERENCES BETWEEN LOME & COTONOU AGREEMENTS


Lomé Agreement

Cotonou Agreement

Objectives

3 Pillars

To establish the economic development and social progress of ACP States

Principal Objective : Development of ACP States with the goal of poverty alleviation

To promote trade & co-operation between the EU and ACP member states

Political dialogue matched with the use of conditionality and the option to suspend co-operation in response to human rights abuses, violations of democratic principles and the rule of law

To promote industrial development in the ACP states through closer co-operation with the EC

New trade framework phasing out trade preferences and concentrating on regional partnerships also involving non-state actors, civil society and the private sector as an engine for development.







Distinguishing Characteristics

Distinguishing Characteristics

Special ex-colonial relationship

Third Party relationship in development approach

Predictability of aid

Conditionality of aid based on principles of good governance

Stabex : automatic funding in stabilizing ACP countries export earnings to compensate for losses due to fluctuations in commodity prices

Sysmin : funding to restore ACP countries mining capacity – on individual application

Flex : supports national budgets in cases of significant losses of government revenues due to a shortfall in export earnings

General trade preferences on certain items eg. Sugar / rice / bananas / beef / veal

Phasing out of trade preferences in line with WTO requirements with the goal of establishing reciprocal free trade




Capacity building assistance in support of removal of trade preferences




Phasing in of EPAs – reciprocal free trade between ACP regions and the EU with regional free trade/customs unions assisting as the ‘implementing partner’




LDC’s may ‘opt out’ of EPAs and trade with the EU under the EBA system

Project finance

Macro-economic and budget support

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