6/04/2008

Progresses on Division of Labour but concerns on aid scale_up

Following evident delay, Italy finally decided to take part into the European Commission Division of Labour Fast Track exercise in the following countries: Bolivia, Ethiopia, Kenya, Mozambique, Senegal, Sierra Leone and Uganda. In Albania, Italy will be one of the EU MS to chair the division of labour exercise. Before Accra, and possibly on the eve of the next EU technical seminar on aid effectiveness mid-June, Italy is also going to select its sectors of engagement in each country.

It is important to note that each decision on division of labour is going to happen between Rome and Brussels not at field level. Italy requested this specific centralized communication arrangement, as the Italian cooperation field offices do not have enough power to independently decide where actually to get engaged. The current centralized structure is also preventing Italy from taking part into “delegated cooperation” experiments.

As for the binding timetables on aid increase, Italy opposed and continues opposing any binding timetable. More worryingly, in 2005 together with Germay, Italy signed the 0.51% ODA target subject to financial national economic situation. Later, the new German government accepted the 0.51% without condition, while Italy apparently never officially changed its initial condition. As for tied aid, Italy had no problem in accepting the recent DAC expansion to all HIPC, while wishing to bring on board aid new donors such as China, on this issue.

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