This brief identifies some of the shared priorities between Africa and the European Union (EU) as well as challenges in their partnership as it currently stands. It also suggests concrete ways forward to strengthen the economic development and trade agenda of the AU-EU cooperation and gives policy recommendations towards a more effective partnership.
Elcano and ETTG have published the report on the rise of public development banks in the European financial architecture for development which shows how PDBs are critical in promoting resilience to shocks (financial, economic, pandemic, climate, etc.), stabilise the economy and foster a more rapid long-lasting recovery. The report also stressesĀ the importance of medium- and long-term finance for development thatĀ can help building markets and promoting economic transformation in aĀ sustainable, green, inclusive and gender-sensitive manner.Ā Ā
The covid-19 pandemic has generated severe health, economic and debt crises for the least developed countries (LDCs). On the one hand, they cannot mobilise sufficient financial resources on their own to cope with the effects of the pandemic because their public revenues are too low and external finance is not always available. On the other hand, many LDCs have been highly indebted, even prior to the crisis.
A series of high-profile events has added up to making 2021 a crucial year to tackle the global sustainable development agenda and present a unique opportunity to drive a virtuous circle of political commitment, regulation, and financial flows towards sustainable recovery in developing countries, which is a key issue of this yearās G20 cycle. Bringing the voice of developing countries in the global multilateral agenda is not easy to tackle due to different and often competing political priorities. This blog draws lessons from the Italian G20 Presidency to inform the development policy considerations and efforts of the upcoming Indonesian, Indian and Brazilian G20 Presidencies. These Presidencies have a great potential to prioritize sustainable recovery in the Global South in their own, as well as in cooperation with the G7 and EU Presidencies when appropriate.
A recent IAI study has argued that several shortcomings in the climate and development finance systems undermine the capacity of countries in the Global South to tackle climate changeĀ¹. Insufficient resources, lack of focus on adaptation, inadequate management of climate risks, the vicious circle between indebtedness and climate vulnerability are some of the major obstacles.
On 29 June, G20 Ministers responsible for development policy convened for the first time under the Italian Presidency. The meeting saw the adoption of a detailed and ambitious policy communique that in addition to prompting international action is also expected to further inform the deliberations of other G20 ātracksā that may affect developing countries. It seems particularly strategic to us that the meeting of Finance Ministers at the end of this week in Venice picks up and further develops on these commitments.