LETTERS TO THE EDITOR

Autumn 2009

by Ritva Koukku-Ronde

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The points highlighted by Douglas Alexander are crucially important for development partners everywhere. The combination of economic crisis, poverty and climate change presents a development challenge that none has witnessed before. It situation demands a coherent and well-coordinated response, including a commitment by developed nations to stand by their promises to increase aid even when suffering from economic hardship at home.

But aid alone is not enough. Developing nations will only get lasting economic benefit from such actions if we stick to the principles of sustainable development. This requires governments to create the right conditions for healthy economic activity, including a strong business environment in which private entrepreneurship and investment can thrive. Trade policy also has a big impact on development, so it is vital to bring the World Trade Organisation’s Doha Round to a successful conclusion. And since agriculture and rural development are key sectors for most developing economies, they have to be at the top of our development agenda. Finally, long-term environmental sustainability and climate change must never be left out of the equation. The Copenhagen conference at the end of this year will act as a milestone for international commitments on both counts.

As Douglas Alexander points out, the European Union already plays a key role in each of these fields. It boasts an impressive collection of tools to achieve its goals – development and agricultural policies, negotiating capacity, leverage within international forums, practical cooperation and dialogue with the rest of the world. The next phase of the EU’s internal development must be to bring these instruments together effectively, to create a more coherent approach. The EU needs a consistent and coherent global policy that ensures the promotion of development, trade, climate etc. policies side by side. Only then can the EU fulfil its potential as a strong, responsible and visionary global player.

I believe that institutional structures and arrangements are central to achieving more effective European action. They must balance the need for independence in development policy with the need for better coordination and coherence. A more effective development policy will also require the EU to work with other members of the international community, including so-called emerging donors. The EU should pay special attention to the least-developed countries, especially in sub-Saharan Africa. The Union should also strengthen its dialogue with the U.S., given that together we provide 80% of the world’s ODA and 85% of humanitarian aid. Last January, the Finnish Minister for Foreign Trade and Development Mr Paavo Väyrynen presented to his EU Colleagues the initiative on Transatlantic Partnership for Sustainable Development. Through a strengthened development policy dialogue, this aims at poverty eradication and sustainable development with particular emphasis on the poorest countries. The initiative has been well received on both sides of the Atlantic, and we hope soon to see it discussed between the parties at the highest level.

Finally, in an inter-connected world nothing can replace a truly multilateral system, notably the United Nations. The EU’s ability to act collectively and forge coalitions beyond its borders should be fully exploited. This international financial crisis will not be the last crisis to hit the world. The need for the EU to achieve its full potential as a global player will only grow in future.