|
Country Strategy Paper
and
Multi-annual Indicative Programme 2003 – 2005
The European
Programme for Reconstruction
and Development (EPRD)
is governed by a
Country Strategy Paper
(CSP), established by the
European Commission based on South Africa’s development
agenda and EC development policy. The Country
Strategy Paper
and its substrate, the Multi-annual Indicative Programme
(part B of the CSP), are
agreed and signed by the European Union and South
Africa. Presently, the CSP/MIP 2003-2006
is being implemented.
Summary of Country Strategy
Paper:
Agreement
Table of Contents
Executive Summary
Ambassador's Speech
Agreement between the Republic of South Africa and the
European Commission
The
Government of the Republic of South Africa and the European
Commission hereby agree as follows:
(1) The
Government of the Republic of South Africa, represented by
Deputy Minister of Finance, Mr Mandisi B. Mpahlwa, and the
European Commission, represented by Ambassador M Lake,
hereinafter referred to as the Parties, have held
discussions in Pretoria, South Africa during 2002 with a
view to determining the general orientations for
co-operation during the period 2003 - 2005.
During these
discussions, the Country Strategy Paper and an Indicative
Programme of European Community Aid in favour of South
Africa were drawn up in accordance with Article 6 of
Regulation (EC) No 1726/2000 of the European Parliament and
the Council of 29 June 2000 on Development Co-operation with
South Africa (“the Regulation”). These discussions complete
the programming process in South Africa.
The Country
Strategy Paper and the Indicative Programme are annexed
hereto. They initially cover a period of three years from
2003 to 2005. Subject to the approval by the Council and the
European Parliament of an amendment to Article 6 of the
Regulation to allow the Multi-annual Indicative Programme to
cover a period of four years instead of three, the duration
of the programme will be extended by one year. It will thus
coincide with the duration of the Regulation.
(2) The
indicative programmable financial resources, which the
Community envisages to make available to South Africa,
amounts to around €386 million for the period 2003 - 2005.
An indicative amount of €129 million is envisaged for the
year 2006 and can be added to the total if and when the
above amendment to the Regulation is adopted.
(3)
Financing decisions for projects
and programmes can be taken by the Commission at the request
of the Government of South Africa and non-government
beneficiaries, within the framework of the present Country
Strategy Paper and Indicative Programme and within the
limits of the annual appropriations. The said projects and
programmes shall be implemented according to the rules and
procedures indicated in Article 7 of the Regulation.
(4) The
European Investment Bank may contribute to the
implementation of the present Country Strategy Paper by
operations financed from its own resources.
(5) In
accordance with Article 6(4) of the Regulation, the
Committee shall annually undertake an operational review of
the Indicative Programme and the Country Strategy Paper.
(6) The
agreement of the two parties on this Country Strategy Paper
and the National Indicative Programme will be deemed final
on the expiry of eight weeks following the date of signature
hereof, unless either party indicates to the contrary before
the end of this period.
Done in
Pretoria, Republic of South Africa on the 31st day of July,
2003 in three originals.
COUNTRY STRATEGY PAPER AND MIP TABLE OF
CONTENTS
PART A: CO-OPERATION STRATEGY
Executive summary
Chapter 1: The EC
co-operation objective
Chapter 2: The
national policy agenda of South Africa
Chapter 3: Analysis of
the political, economic and social situation
3.1 Political Situation
3.2 Economic & social situation
3.3 Sustainability of current policies
3.4 Medium Term Challenges
Chapter 4: Assessment
of past and ongoing EC co-operation
4.1 Role and Context of
Co-operation with South Africa
4.2 Past and Ongoing EC Co-operation: analysis of results
4.2.1 Main sectors of intervention
4.2.2 Main results and recommendations from the country
strategy evaluations
4.2.3 Main results and recommendations from the Civil
Society consultative process
4.2.4 Main lessons derived from recent studies, mid term
reviews and evaluations of EC programmes
Chapter 5: Response
strategy
5.1 Principles and
objectives for co-operation
5.2 Priorities for co-operation
5.3 Crosscutting issues
5.3.1 HIV/AIDS
5.3.2 Capacity Building
5.3.3 Civil Society and non state actors involvement
5.3.4 Governance
5.3.5 Gender
5.3.6 Environment
PART B: INDICATIVE
PROGRAMME
Chapter 6: Multi-Annual
Indicative Programme
6.1 Introduction
6.2 Financing Instruments
6.3 Modalities of implementation
6.4 Focal Sectors
6.4.1 Equitable access to and sustainable provision of
social services
6.4.2 Equitable and sustainable economic growth
6.4.3 Deepening Democracy
6.4.4 Regional co-operation and integration
6.5 Other Programmes
6.6 Intervention Framework
6.7 Indicative timetable for commitments
ANNEXES
Annex 0/1: Intervention
Framework
Annex 0/2: Tentative MIP Programming
Annex 0/3: Multi-Annual Indicative Programme: policy
framework in main areas of co-operation.
Annex 1a: EC ongoing programmes
Annex 1b: Overview of past and ongoing co-operation
Annex 1c: EIB Activity in South Africa: Status Report
Annex 2a: Members States Country Strategy Paper
Annex 2b: Total ODA to South Africa
Annex 3: Political and economic situation
3.0 South Africa at a glance
3.1 Political Situation
3.2 Economic and social situation
3.3 Public Finance
3.4 External environment including regional co-operation
agreements
Annex 4: Assessment of the national policy and policy
implementation in the focal sectors
4.1 Social services
4.2 Investment, employment and local economic development
4.3 Safety and Security
EXECUTIVE
SUMMARY
Since 1994
South Africa has made significant progress in consolidating
democracy and the rule of law, establishing an enabling
policy and legislative framework, transforming the public
sector and achieving macroeconomic stabilisation. Major
issues remain to be addressed for SA to achieve development,
reconstruction and sustained reconciliation: slow economic
growth, high and rising unemployment, widening income
inequality and high levels of crime. The HIV/AIDS pandemic
is also having a dramatic effect on life and living
conditions in SA. Strategic government priorities for SA
accordingly include: moving to faster job-creating economic
growth, investing in human resources and skills development,
more effective, integrated and efficient government, rural
development and urban renewal, eradicating poverty,
expanding access to, and improving the quality of social
service provision and fighting crime and corruption. The
emphasis of the current and future government programme of
action is to ensure greater efficiency in the implementation
of policy and the delivery of services.
The
partnership between SA and the EU is framed by the Trade,
Development and Co-operation Agreement (“the TDCA”), which
provisionally entered into force in 2000. First indications
after two years are that trade flows between SA and the EU
have substantially increased. Development Co-operation has
supported policies and reforms carried out by the SA
authorities with the aim of fighting poverty, promoting the
insertion of SA in the world economy and consolidating the
foundations of a democratic society in which human rights
and fundamental freedoms are respected. Although ODA in SA
is limited and recent, it has contributed to the development
of new delivery models and to the reduction of the backlog
in service provision to disadvantaged populations.
Encouraging results have justified a move to budget support
in selected sub-sectors with greater ownership and lower
transaction costs.
The areas of
co-operation of the Multi-annual Indicative Programme (“the
MIP”) 2000-02 remain high on the Government’s agenda and
therefore relevant for SA-EC co-operation during the period
2003-06. The overall objective of the SA-EC strategy for the
period 2003-06 is to support the SA policies and strategies
to reduce inequality, poverty and vulnerability and to
mitigate the HIV/AIDS pandemic and its impact on society. It
will focus on four main objectives: equitable access to and
sustainable provision of social services, equitable and
sustainable economic growth, deepening democracy and
regional integration and co-operation.
The emphasis
on improving the delivery of services is accompanied, in the
new SA-EC strategy, by a systematic effort to strengthen the
capacity of the population to participate in development
processes. A renewed effort will be made on job creation and
integration of excluded populations in productive
activities. The role played by civil society as a partner in
service delivery, in advocacy and in government
accountability is confirmed as crucial. Civil society actors
will be involved in most areas of co-operation.
Consolidation of sector policies and improved public finance
management is expected to result in an increase of budget
support programmes and a reduction in the number of
interventions within each area of co-operation.
In this
context the enhancement of trade co-operation will be
reflected in some development programmes under the MIP
2003-06 (chapter 6 and Annexures 2 and 3 of the Country
Strategy Paper )
and will also be covered by continued
direct trade negotiations.
----------------------------------------------------
Speech of the Ambassador and Head of the European Commission
Delegation H.E. Michael Lake on the occasion of the signing
of the EU Country Strategy and Multiannual Indicative
Programme 2003-2006, at Pretoria on 14 August 2003
Deputy Minister, fellow
Ambassadors, Senior Officials, Ladies & Gentlemen from the
media, Honoured Guests
I am deeply honoured to
be able to endorse the EU’s new Country Strategy and
Multiannual Indicative Programme in the presence of the
Deputy Minister, our National Authorising Officer, and also
in the presence of the Representatives of the Member States
of the European Union and particularly the Accession States
that will very shortly now become full members of the
enlarged European Union. In particular I also salute the
Ambassador of Italy, now holding the Presidency of the
European Union. As I observed recently, since my arrival in
your country some two years ago, I have never failed to be
struck by the contrast, in almost every aspect of SA life,
between the first world and the third world.
When European Commission
President, Romano Prodi, was here for the World Summit on
Sustainable Development, I insisted on taking him from the
cocooned splendour of Sandton a mere two kilometres down the
road to Alexandra to visit the clinic we were funding. From
1st World comfort and technology to 3rd World poverty and
deprivation, all in the space of a few hundred metres. This,
together with my impressions from travelling your
magnificent country, especially some of its remoter regions,
has served to reinforce my understanding of the greatest
challenge facing South Africa, the government and its
peoples.
It is to bridge that gap
between plenty and poverty, between skilled and unskilled,
between prosperity and subsistence. We are proud of the
contribution we make to address this challenge through the
European Programme for Reconstruction and Development (EPRD)
in South Africa. This unique partnership with the South
African Government and our local civil society associates
has allowed us to pinpoint areas of real need, target
priority sectors and implemented large-scale programmes of
tailored assistance to communities throughout the country.
Prior to 1994, the
European Union channelled close to R3 billion in funds to
about 700 small projects, targeting victims of apartheid.
Under the 1st and 2nd Multi-annual Indicative Programmes,
1994 – 2002, the EU provided in excess of R8 billion towards
tackling development issues in South Africa. Year by year it
is the EU’s biggest development programme worldwide, after
Tanzania, in terms of annual commitments, and fourth or
fifth biggest in terms of annual expenditure.
Why is the EU prepared to
make this new commitment to South Africa? South Africa’s
relative economic success since 1994 places it in the ranks
of the middle income developing countries. There are many
other countries in greater need of assistance, in Africa and
beyond. Next year we celebrate the tenth anniversary of the
abolition of apartheid. Memories of the iniquity of
apartheid fade, and it is not out of any misplaced sense of
guilt or nostalgia for the anti-apartheid struggle that the
EU is prepared to renew its commitment. There is a sense of
solidarity between the peoples of the European Union and
South Africa, and that is an important political and moral
underpinning of our programme. But, in practical terms and
put at its simplest, the EU’s support for South Africa is
extended and consolidated because, by and large, and with
all the problems of implementation that we live with in our
day-to-day-work, the EU’s development programme works. We
live the problems with our South African partners, we create
some problems with our sometimes arcane procedures and
bureaucratic requirements, our South African partners create
some problems on their side, but we see the results of the
EU’s support.
This support has helped
to bring potable water and sanitation to hundreds of
thousands of beneficiaries in some of the most remote and
isolated areas of the country. Significant contributions
have been made to adult education and training. Schools have
been renovated and rebuilt in provinces suffering from
economic deprivation and extreme poverty. Health services
have been improved, with growing emphasis being placed on
HIV/Aids in both urban and rural areas. Houses have replaced
shacks in communities that had been condemned to living in
township squalor. There has been significant investment in
the small business sector and local economic development has
been underpinned through numerous initiatives. Support has
been given to build South Africa’s democratic progress,
whether through the National Assembly, the Provincial
Legislatures or South Africa’s vibrant civil society.
Together with our South African partners we have together
worked towards a better life for all South Africans, and
what has been achieved serves, at project, programme or
sector level, whether in terms of policy or by way of
practical implementation as a model for us to study and
emulate in any other country where donors are active and
governments are honestly seeking to better the lot of their
countryfolk.
Allow me on this
important occasion to launch our Annual Report 2002 – it
details exactly the activities I have been talking about in
the final year of the 2nd Multiannual Indicative Programme.
We are here today to sign
the 3rd such Programme, covering the years 2003-2006, with
the South African Government. This new Programme will secure
funding in the region of R1 billion annually until 2006. In
line with our country strategy for South Africa, we shall
maintain the focus on poverty alleviation, but with growing
emphasis on core crosscutting issues such as HIV/Aids, good
governance, environmental protection, the great need for
capacity building and gender equality. This, against a
backdrop of the new political spirit on the continent and
the growing importance of Nepad in Africa.
In closing, through the
EPRD we will continue to work together with our partners
here to ensure the long-term development of this country, to
give concrete expression to the enormous sense of solidarity
shared between the ordinary people of Europe and of South
Africa, and to show that development cooperation can be an
effective vehicle in delivering the levels of development
that Africa desperately needs.
I thank you. |
Development