European Union

The members of the European Union have a mixed record of success when it comes to international development. Many of the northern European states have a long history of generous financial contributions and successful policy development, but most of the larger nations have not been as committed to tackling poverty as they could have been.

However there is hope that this is changing with the recent agreement by EU members, in anticipation of the G8 summit in July 2005, to double aid by 2010. This commitment by all 25 members of the EU will help to fund many initiatives and save many lives that otherwise would have been lost.

Despite this recent commitment by EU member states there is still concern that the EU as an institution is failing in its development goals. Although it has given preferential market access to the Least Developed Countries (LDCs), it has a largely ineffective development department which seems unable to distribute the funds which the EU has actually granted it.

Another major gripe that developing nations have with the EU is over subsidies given to EU farmers. Under the Common Agricultural Policy (CAP) the EU tries to stabilise farmers’ incomes by buying surplus supplies of agricultural products when prices fall below the minimum agreed price.

To maintain the higher price level they restrict imports meaning that developing nations cannot sell their agricultural goods at a competitive rate within Europe. In addition to limiting imports, the EU also subsidises agricultural exports meaning that producers in developing nations have to face unfair competition in their own domestic markets.

As well as hurting the Third World the CAP forces up the taxes of EU citizens and increases the food bill of EU consumers. There has been international pressure to reform CAP for years but this has been resisted by France and Germany, the two main beneficiaries of the CAP program.

The World Trade Organisation (WTO) trade talks taking place in December 2005 will be a major test of how committed the EU really is to helping tackle poverty. If it is serious about helping Africa it will need to commit to major reforms of the CAP system, reforms which may be difficult for some in the agricultural sector but which will be welcomed by almost everybody else.



We must make our voices heard, we must demand action from those who claim to represent us.
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