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European Economic and Social Committee

REX/247
EU-Africa Strategy

Brussels, 18 September 2008

OPINION
of the
European Economic and Social Committee
on the
EU-Africa Strategy
(exploratory opinion)
______

REX/247 - CESE 1530/2008 FR/SS/GW/ht

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In a letter dated 11 July 2007, Commissioner Louis Michel, Commissioner for Development and Humanitarian Aid, asked the European Economic and Social Committee to draw up an exploratory opinion on

The EU-Africa Strategy.

The Section for External Relations, which was responsible for preparing the Committee's work on the subject, adopted its opinion on 17 July 2008. The rapporteur was Mr Dantin.

At its 447th plenary session, held on 17 and 18 September 2008 (meeting of 18 September 2008), the European Economic and Social Committee adopted the following opinion by 89 votes to none, with no abstentions.

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1.  Conclusions and recommendations

1.1  In the globalised context of this new century, there is a need for considerable evolution in the relations between Europe and Africa, by drawing on the lessons of the past, in particular by working towards a partnership based on equal rights and obligations. After decades of cooperation and development aid, extreme poverty in Africa is worsening and deepening: the fruits of misdirected growth, characterised by low job creation, are unevenly distributed and therefore entrench inequalities; over 55% of the sub-Saharan population lives on less than a dollar a day; over 70% of the total number of jobs are in the informal subsistence sector, and over 57% of them are in agriculture. The picture that emerges is one where decent and productive jobs are dramatically scarce.

1.2  The stakes are high, especially in terms of Africa's development and stabilisation, but also in terms of Europe's security and ability to achieve steady sustainable growth.

1.3  The development policies followed up to now by the European Union pursuant to the various agreements (Lomé, Yaoundé, Cotonou) and the funding devoted to them have not achieved the desired results, especially as regards creating decent jobs. That said, this state of affairs cannot continue, and change being indispensable, the Committee welcomes the success of the EU-Africa Summit held in Lisbon on 8-9 December 2007.

1.3.1  It particularly welcomes the fact that employment is treated as a cross-sector issue.

1.4  The EESC believes that developing decent employment is central to reducing inequality and poverty, fostering social integration and living with dignity, which are vital for stemming extremism and conflicts and achieving the stability required.

1.5  The Committee believes that in order to create decent employment, measures geared to this essential objective must be taken by acting on the parameters set out below, and which, although intrinsically different, are linked by strong synergies that generate interactive reactivity and form a single policy.

1.5.1  Growth is mainly natural-resource based and creates little employment. It must be re-directed to the primary processing and refinement of products. Investment should be geared to this end, with emphasis on sectors with high added value.

1.5.2  The private sector is of the utmost importance, and through it, SMEs. The EU should make SME development a pillar of its cooperation policy.

1.5.3  Current rises in raw material prices are an additional reason for making the agricultural sector a strategic development priority. Since agriculture accounts for a considerable proportion of land use and rural employment, it should contribute to self-sufficiency in food, the development of processing industries, and to halting the rural exodus at the same time.

A short, medium and long-term agricultural policy must be set up and priority given to ensuring that there is a budget for its implementation. This policy should be drawn up and implemented in coordination with agricultural organisations.

1.5.4  Developing human resources is an indispensable factor in all development strategies. Thus, there is a need to analyse employment needs and the labour market, make forecasts, and anticipate the major challenges involved in adapting vocational training to employment.

1.5.5  While regional and sub-regional economic integration has progressed significantly, trade potential has yet to be fully exploited. In particular, measures should be coordinated in order to harmonise customs procedures, improve infrastructure and guarantee the free movement of citizens. From this perspective, the Committee regrets that regional negotiations on economic partnership agreements, which include economic integration among their objectives, have not been concluded at the time of writing.

1.5.6  Social dialogue should accompany and enhance all development polices, especially through collective bargaining. For this reason, there is a need to establish or foster strong and independent employer and employee organisations.

1.5.7  The involvement of non-state actors is indispensable for creating decent jobs and should therefore be central to the common EU-Africa strategy. They should therefore be involved in drawing up national and regional indicative programmes.

1.5.8  "Good governance" is the key to investor confidence. From this perspective alone it is essential for job creation. It should be considered in its entirety and include respect for human rights and workers' rights, including trade union freedoms, labour standards and action to combat corruption. On this last point, the EU and its Member States should make financial aid contingent upon the traceability of aid flows to the end-user.

2.  Introduction

2.1  In a letter dated 11 July 2007, Commissioner Louis Michel, Commissioner for Development and Humanitarian Aid, asked the European Economic and Social Committee to draw up an exploratory opinion on the diverse issues raised in the Communication entitled "From Cairo to Lisbon – The EU-Africa Strategic Partnership", in particular the question of how to reduce the employment deficit in Africa.

2.2  The EESC welcomes this request which, whilst in keeping with the spirit of the development policies applied in Africa for many years, seeks to raise new questions as to the future situation, in particular with reference to the decisions of the EU/Africa Summit, outlined in the declaration entitled The Strategic Partnership, which is accompanied by a First Action Plan (2008-2010) for its implementation.

2.3  By requesting the opinion of the Economic and Social Committee on employment, the Commission is making it clear that it has identified employment as the primary objective of its development policy and that economic and social stakeholders have a role to play in eradicating poverty by creating decent jobs. The EESC is delighted to note this.

After taking a brief look at the policies of the past and their results and following an overview of the situation in Africa today and its future policies, this opinion will highlight the key areas where the Committee believes action needs to be taken to help create decent jobs. This research will take into account the guidelines and action plan which were adopted at the EU/Africa summit held in Lisbon on 8 and 9 December 2007. Accordingly, it will be based, in particular, on the EESC's previous opinions on development in Africa[1].

3.  General comments

3.1  Africa is a continent of many faces. It is made up of states that are often different in terms of history, culture, their ethnic make-up, own resources (minerals, oil, diamonds…), climate or indeed as regards democracy, good governance and respect for human rights… This has led to a whole variety of differing economic and social levels. It is therefore difficult to understand or to view this continent in a general and uniform manner. That being said, its countries share a number of common traits, most importantly their relations with Europe, both past and future, or indeed a shared history which will give rise to a common future as part of a joint movement for change.

3.2  In the globalised context of this new century, there is a need for considerable evolution in the relations between Europe and Africa, by drawing on the lessons of the past. This must be structured around an understanding of the need to build a shared future which must be developed around common challenges and common risks, an approach based on mutual interest, rather than on a short-lived shared history, on compassion or loyalty, at the risk of forcing certain partners, on both continents, to confront their own conflicting positions.

3.3  Much is at stake. Only fifteen kilometres from Europe, the African continent concentrates all of the "major risks" of the modern world on its territory: uncontrolled migration, emerging epidemics, climatic and environmental disasters, the threat of terrorism … But it also has the most potential, both in terms of natural resources and in foreseeable consumer and investment demands.

3.4  Undoubtedly, the European Union remains Africa's principal economic partner and its most important donor. Yet this historical monopoly is now being broken up by an offensive from the "emerging backers" – firstly China, but also India, the larger Latin American nations and the Gulf Kingdoms, even Iran, as well as by the return of the USA, which is keen to maintain the security of its energy supplies, to combat the threat of terrorism, to extend Christian values and democracy into new territory, and to counter the "entry into the game" of the Chinese, something they see as a worrying development[2].

3.5  Yet it is also clear that the future security of the European continent, such as its capacity to maintain steady sustainable growth, will be closely and immediately dependent on Africa's development and stability. Europe cannot continue to exist as an island of prosperity over the medium and the long term being located only fifteen kilometres away from a continent whose defining characteristic is misery. At stake is the sustainable development of the European Union, which must realise that now it is Africa which is its border.

3.6  "Europe's strategy towards Africa has long been characterised by an unequal donor-recipient relationship, coupled with an ideologically misguided clean conscience, and a unilateral vision of our interests. This antiquated, unrealistic vision has been extremely damaging. There is a need to turn a new page and establish a new form of partnership, between partners who are equal both in terms of rights and responsibilities, who share an approach based on such factors as sustainable development, good economic, fiscal and social governance and the transfer of technology…"[3].

3.6.1  This strategy, based on an unequal "donor-recipient" or "financial backer-recipient" which has been given a concrete form through the contents of the various agreements that have governed or govern relations between the EU and Africa can only be termed a "failure"[4], given the economic and social situation in Africa today. Clearly, this state of affairs needs changing.

It has reduced the African countries to a state of dependence, particularly in terms of financing, leading them to mortgage the dynamism needed for successful access to the world's economy.

3.6.1.1  After decades of development aid as practised by the European Union, by numerous Member States (often former colonial powers), and by international organisations such as the World Bank, the extreme poverty of Africa is only getting worse.
3.6.1.2  Whereas emerging economies or regions such as China, India, South-East Asia or Brazil are developing into economic powers, and taking their share of international trade, Africa has, bar a few exceptions, yet to take off economically.
3.6.1.3  Why has a country like South Korea which, only a few years ago, lived "for rice and on rice" managed to become one of the world leaders in electronics, shipbuilding, IT services and car manufacturing … and not Africa?
3.6.1.4  Europe still remains the first importer of African products. However, despite nearly twenty-five years of favourable customs tariffs, the volume of exports from Africa to the EU has more than halved, falling from 8% in 1975 to 2.8% in 2000, in relation to the volume of trade worldwide. This preferential customs treatment has not been sufficient. It is the uncompetitive nature of African goods which has compromised the continent's ability to export its goods to Europe.
3.6.1.5  The fruits of Africa's growth, primarily derived from the exploitation of its natural resources, have been unevenly distributed, widening inequalities still further, making the poor as poor or even poorer than they were, while the rich become even richer. All of which is a long way from good economic governance, raising a whole host of ethical concerns. Numerous Africans have spoken out against this state of affairs:

-  "(We must) repatriate the funds illegally obtained in the countries of origin and stored away in foreign bank accounts"[5].

-  "We are ill with poor governance….some countries are even poorer than they were before oil or diamond mining began…others are ruled by leaders whose personal assets outstrip their countries' national debt! This evil hasn't come from outside but from within, from ourselves"[6].

4.  From Cairo to Lisbon: a new EU-Africa strategy

4.1  Policies implemented to date, and the funding they receive, have not always delivered the desired results, especially where creating decent jobs is concerned. That said, and changes being indispensable, the Committee is delighted with the success of the Lisbon Summit on 8 and 9 December 2007. It takes pleasure in the political will which has made it possible to extend cooperation or even to redesign it through a change of direction, and to thus develop both trade and political relations between the two continents.

4.2  Seven years after the Cairo summit, the Lisbon summit has laid the foundations for a new strategic partnership of equals between Africa and the European Union, based on a set of common values, principles and interests which will enable them to address the global challenges on the international scene together: peace and security, governance and human rights, migration, energy and climate change, trade, infrastructure and development.

4.3  Its contents aside, what makes this strategy original and ground-breaking is the implementation, alongside the declaration of an operational phase, of eight priority action plans (cf. Appendix 1 to this opinion), a type of roadmap or working plan which will translate into concrete terms the implementation of strategic priorities and choices identified by the two continents. The progress made in achieving these eight action plans, which like the Cotonou Agreement are extremely ambitious, will be assessed at the next summit in 2012.