EURODAD ASBL/VZW

European Network on

Debt and Development

Eurodad Annual Report 2004

Eurodad Annual Report 20041

EURODAD ANNUAL REPORT 2004

About Eurodad

The European Network on Debt and Development (Eurodad) is a regional network of 48 NGOs and national coalitions from 15 countries across Europe. The members represent the lead organisations in Europe on issues of debt, financing for development and poverty reduction.

The Network was founded in 1990 by a group of European NGOs who were active in awareness-raising and advocacy on debt and related issues. They realised they needed a European focal point for information exchange, research and joint lobbying. During the 1990s Eurodad was a key player in pushing for action on multilateral debt cancellation and for an end to orthodox structural adjustment. Eurodad also played a major part in initiating civil society responses to initiatives such as the Heavily Indebted Poor Country Initiative and the Poverty Reduction Strategy Papers.

The Network’s overall aim is the pursuit of global economic justice and the elimination of poverty. The Network seeks to contribute to efforts striving for equity and the improved effectiveness of economic strategies, policies and practices. The Network focuses in particular on debt cancellation, financing for development and poverty reduction strategies. The main political targets for its advocacy are the European finance, foreign affairs and development ministries, plus the relevant multilateral agencies, in particular the World Bank and International Monetary Fund. The Network facilitates cooperation between members, and acts as an information hub - both between members, with civil society groups in other regions and with the wider international development community on its focus issues.

Eurodad is very grateful to its funders. These are the Dutch Ministry of Foreign Affairs, the Swedish International Development Agency and our forty-eight members, many of whom generously contribute amounts significantly above their core membership fee.

From the Chair of the Board – Eurodad status and activities 2004

2004 was a year in which campaigners finally secured official recognition that existing debt relief initiatives were insufficient and an acknowledgement that more should be done. And, five years on from the creation of the Poverty Reduction Strategy process, major official evaluations confirmed many civil society criticisms of its implementation. Staff at the Eurodad office in Brussels and in its member organisations across Europe played a major role in researching, advocating and campaigning to make this happen. They have produced studies, summarised and distributed information about policy developments and political opportunities, done media work, and organised and spoken at many meetings.

Eurodad’s primary work areas during 2004 were debt cancellation and Poverty Reduction Strategies, with some additional work on innovative sources of development finance. These are vital strategic issues which must be tackled if global commitments to reach the Millennium Development Goals by 2015 are to become a reality.

Eurodad members have forged exciting plans for 2005. Many are working under the banner of the Global Call to Action Against Poverty. This is a major mobilisation of organisations across the world determined to push rich country governments to do more on debt, aid and trade. With this extra push from the outside there are growing expectations that the important ministerial and head of state meetings during the year will yield some significant break-throughs. The Eurodad network will continue to play an active role in advocacy and campaigning. Eurodad will convene strategy meetings, gather and circulate intelligence about official positions, to provide briefings on complex issues, and to galvanise member actions around specific political opportunities.

To strengthen its ability to carry out these important functions Eurodad has introduced new systems and approaches. This year Eurodad implemented the conclusions of the 2003 strategic review and General Assembly. These were to complement its production of original research with an increased emphasis on encouraging member activity and advocacy, and on synthesing existing research produced by others. Lessons and contacts from this activity have been built into our new work approaches and priorities.

Charged with carrying out this mandate was a new Coordinator Alex Wilks who started in early June. Wilks came to Eurodad from the Bretton Woods Project, which he had run since 1995. The knowledge and contacts he developed at this UK-based but internationally-known network monitoring the World Bank and IMF are all extremely relevant for Eurodad. Other new staff also came on board in the middle of year – Hetty Kovach and Gail Hurley - who have significant experience of analysis and networking in relevant fields.

In sum, Eurodad was able to live up to the expectations of its members and contribute significantly to the anti-debt/anti-poverty movement in Europe. 2004 was a crucial and challenging year for the organisation and the network. At the point where we are now I can say that it was a very successful year, too.

Susanne Luithlen,

Political Coordinator, Erlassjahr.de and chair of the Eurodad board, May 2005.

Debt: 2004 activity highlights

Debt campaign strategising

Multilateral debt cancellation

  • European Union

UN Multi-Stakeholder Consultations

Paris Club

Innovative sources of finance

Debt campaign strategising

In 2004, Eurodad convened and facilitated meetings in Brussels, Washington and London,which aimed at building a common platform on debt issues between campaigners. Eurodad planned and executed the meetings so that campaigners could improve their understanding of each others’ positions and plan how to work together most effectively. Some of the meetings were followed up with teleconferences.

Participantsfelt these were fruitful exchangesand valued Eurodad’s neutral but energetic facilitation role. Some common language has been adopted for use by campaigners on debt governance and a series of more detailed draft consensus points under discussion represent the building blocks of a consensus position for next year. Southern colleagues appreciated the opportunity to feed into the discussions at the Annual Conference.

  • Acted as a bridge between Europe and other geographical regions;
  • Obtained and pooled political intelligence;
  • Agreed on common language on debt governance to use in campaign work.

Multilateral debt cancellation

Eurodad has disseminated information and analysis on the HIPC Initiative via the Debt-Watch listserve and other channels. In particular Eurodad has informed members and other contacts about the specifics of the proposals for further multilateral debt cancellation which first emerged ahead of the G8 summit in June. This topic was a major discussion item at the Eurodad annual conference in November – with important information exchange and coordination.

In addition, we produced a critique of the four options proposed by the World Bank and IMF for the HIPC sunset clause which has also been translated into French. Eurodad also spoke on the HIPC Initiative at a conference in Rome organised by the Latin American debt NGO coordination the Estrategía Andina-CentroAméricana-Amazónica.

Eurodad produced a background paper for and spoke on HIPC status and new debt sustainability proposals at the global IFI strategy meeting,Malaysia, in January. This was a gathering of 70 people from across the world, including a strong Southern presence. Eurodad also spoke on these issues at the European IFI strategy meetings held in Italy and in the UK. In October Eurodad attended a civil society meeting in Brussels with Bank President James Wolfensohn and made a short presentation on the proposed new Bank/Fund debt sustainability framework.

At this year’s Annual Bank/Fund Meetings in Washington, Eurodad:

  • Organised the launch event of UNCTAD’s new report on debt sustainability in Africa;
  • Spoke on a panel on this issue at a dialogue with senior World Bank and IMF representatives, presenting our concerns over the new framework;
  • Attended an advocacy meeting between European civil society groups and all European Executive Directors to the World Bank.

European Union

Although much of the important policy-making on debt and development finance issues is carried out at the level of the member states there are also important actors and opportunities at the European level. Eurodad has continued to build good links with relevant officials and parliamentarians in Brussels.

Eurodad convened a meeting for some network members with officials of the European Commission unit with responsibility for the HIPC Initiative and PRSPs to explore in particular the role of the EC in international debt policy-making debates and whether any EC follow-up to the Cohen report “Beyond the HIPC Initiative” that was funded and launched by the Commission. Following this exchange, Eurodad:

  • Facilitated a meeting by a delegation of Latin American CSOs working on debt to meet relevant officials in Directorate Generals Development/RELEX/Trade.

Regarding the EU Presidencies and the European Parliament, Eurodad:

  • Took the lead on drafting a joint NGO letter to EU Development Ministers to urge a proactive EU stance on multilateral debt cancellation and the human development approach to debt sustainability;

UN Multi-Stakeholder Consultations on Sovereign Debt

Eurodad is acting as the European “focal point” for the multi-stakeholder consultations on debt being organised by the UN Financing for Development Office. Eurodad convened a meeting in Washington with civil society groups and UN staff, disseminated information and encouraged participation by networks and organisations in other geographical regions. Eurodad has also drafted a response to the UN’s outline paper and compiled responses from other regions.

Paris Club

Eurodad was part of a delegation with French and British network members which visited the Presidency of the Paris Club this year on the eve of Iraq’s visit to the Club. At this meeting, Eurodad was able to make the case for independent arbitration rather than creditor-imposed solutions and ask for the Paris Club’s stance on the various arbitration proposals. We were also able to offer support to members’ press releases and publicity surrounding the event, assisting with the drafting and translation of press statements and dissemination of information.

Innovative sources of finance

Eurodad commissioned a report on the International Finance Facility, which was produced by Development Initiatives. This was circulated in March and tabled at meetingsin Brussels and Paris. In July Eurodad attended and spoke at an expert meeting organised by a Swedish government thinktank (EGDI) on their draft study "A Multilateral System fit for Financing Development".

Eurodad co-organised and attended a North-South dialogue on investment strategies in Amsterdam in September. This had representatives of significant Southern networks (ie FOCUS on the Global South, SEATINI, Third World Network) among others to discuss approaches and common messages on private and public North-South financial flows.

Economic Policy Empowerment Programme

For just over three years, ending in March 2004, Eurodad ran a capacity-building and research programme with activities in 12 countries in Africa and Asia. This aimed to facilitate the enhanced involvement of Southern civil society organisations in bringing a more poverty-focussed perspective to national processes on economic development policies.

The concluding months of this programme achieved impressive results. The external review showed that significant benefits had been achieved in mapping and examining economic literacy in a range of African and Asian countries. As well as the document- and web-based listings and analysis of civil society activities in this area, Epep staff organised a range of skill-share and training meetings, placed articles in a range of publications and produced and commissioned papers on relevant topics. It also played a significant role in linking different civil society actors who could benefit from collaboration. An example was when a German Eurodad member (WEED) requested assistance in preparing a research visit to Sri Lanka to study the influence of the World Bank in water privatisation, as part of a new campaign being launched by German NGOs.

An example of a training workshop on economic policy-making was the January 2004 conference in Ouagadougou, Burkina Faso. There were 80 participants – nearly 20 local organisations from Ghana, 10 from Mali and 25 from Burkina, plus representatives from IBIS in Ghana and from Diakonia, Christian Aid, Oxfam Belgique, Oxfam Quebec, Lutheran World Relief and a number of embassies. Details of the conference were printed in the national press, and the national television station showed extracts of the conference and interviews with key participants.

Presentations on a range of case studies (see box) were made by experienced members of civil society groups. The case studies covered different issues and forms of engagement and had a strong focus on lessons learnt, as well as accomplishments. They were very positive in tone and rich in detail, and were extremely well received by participants. They also discussed the roles of actors such as elected representatives and international donors. Participants had a vibrant exchange of views on how to apply the insights to their varying country contexts.

The Epep programme ended as planned in March, but much of the learning and contacts generated through Epep activities are being carried forward into Eurodad’s new work programme and into that of a number of Eurodad members. In West Africa Eurodad members with extensive programmes in West Africaexpressed particular interest in following up the Epep capacity-building work there. An Epep staff member therefore assisted the groups to consult organisations in the region and develop a unified capacity-building programme. This looks likely to involve four Eurodad members (Diakonia, ICCO, IBIS and Christian Aid), and over 40 of their partners from Ghana, Burkina Faso and Mali.

Poverty Reduction Strategies: 2004 activity highlights

  • IMF role in Low Income Countries
  • PRSP evaluations and donor responses
  • Donorharmonisation

Eurodad has worked for many years to challenge official views on structural adjustment policies and their application through aid conditionalities. In the last few years attention has turned to the Poverty Reduction Strategies – announced by the International Financial Institutions in response to civil society campaigning in the 1990s.

IMF role in low-income countries

Following awareness-raising and consultation with its members during 2003 Eurodad did further important research and advocacy on the IMF’s actual and potential roles in low-income countries.

In March Eurodad produced a matrix detailing the policy conditions imposed on 18 low-income countries under the IMF's Poverty Reduction and Growth Facility. The Eurodad research provided material for members to contradict IMF claims that it has streamlined conditions and emphasized country ownership.

Later in the year Eurodad, based on consultations with its members, sent an open letter signed by 26 Civil Society Organisations calling for key changes in the way the IMF operates in Low-Income Countries. The letter aimed to influence the IMF’s review of its role in this area. The letter focused on how to ensure that the IMF has a clearer and smaller role in Low Income Countries. The IMF issued a detailed reply to the letter.

Eurodad participated in the high level regional workshop on ‘The IFIs’ PRGF financing tool and its implication for poverty reduction’organised by the African Network on Debt and Development (AFRODAD). The meeting brought together representatives from Southern Governments and NGOs in Kenya, Ghana, Zambia, Rwanda and Zimbabwe to discuss country experiences with the PRGF and explore the issue of conditionality. The meeting provided an opportunity for Eurodad to not only share its findings from the PRGF matrix and analysis, but also to forge greater institutional links with African NGOs and Southern governments and gain a better understanding of their perspective on these issues.

Eurodad attended and contributed to a recent two day International Expert meeting reviewing the IMF’s Independent Evaluation Office (IEO) and its work. The conference, convened by German organization InWent and the IMF’s IEO office, focused on three evaluations - the IMF’s role in Argentina, Technical Assistance provided by the IMF and the IMF’s role in the PRSP process and the PRGF. Eurodad gave specific input on the IMF’s evaluation of the PRSP process.

Poverty Reduction Strategies: evaluating the first five years

Eurodad actively tracked and influenced the twin evaluations of the Poverty Reduction strategies that were prepared by the World Bank and IMF’s evaluation units. It ensured that member organisations were briefed on developments and advocacy opportunities. When the evaluations were produced - in July 2004 – Eurodad briefed members on the implications. Both the evaluations support the PRSP initiative as a worthwhile endeavour, but highlight that it presently falls far short of its potential. Eurodad also produced a summary of the main decisions taken on PRSPs at the WB and IMF Annual meetings. The summary outlined commitments expressed by the Executive Directors at the meetings on PRSPs. Eurodad provides ongoing information about poverty reduction strategies via its PRS Watch Listserve.

It provides in-depth analysis of the key issues surrounding PRSPs, synthesizing donor, academic and NGO reports, and alerting participants to future meetings and conferences.

Eurodad convened a meeting in Brussels in September to explore the findings of the review and consider whether the donor community is doing enough to implement its part of the PRSP bargain. The meeting was attended by over sixty people, with representatives from nine European countries, including many members and many European donor representatives. The meeting was warmly received both by NGOs as an opportunity to engage with the European donor community and by donors, who explored the opportunities and obstacles for them to put the evaluations’ recommendations into practice. The meeting attracted high-level speakers from the IMF Independent Evaluation Office, the World Bank Operations Evaluations Department, the Department for International Development, European Commission and Trocaire.