Memo to the commissioners responsible for international partnerships and reform of the multilateral development banks
The European Commission has revamped its strategy toward developing countries, with better coordination of European Union donors (‘Team Europe’), blending of aid with private finance, less paternalism, better branding and an emphasis of financing physical infrastructure (the Global Gateway). These changes are welcome but bring risks: inability to deliver on promised financing volumes, potential conflict with the Sustainable Development Goals, and tensions with emerging and developing economies, which accuse the EU of double standards. To address these risks, you should recommit to the SDGs as the primary objective of the Global Gateway, embed infrastructure investment in a comprehensive development strategy, create a separate instrument to fund international emissions mitigation and ensure it is amply resourced, create an institutional mechanism to coordinate Team Europe, seek member state coordination and consolidation of seats on the boards of multilateral development banks (MDBs), and use this to leverage MDB reform and operations through country climate platforms.
Key actions:
- Maximise the impact of the Global Gateway
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Defuse tensions with emerging and developing partners
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Improve coordination internally and externally