Searchlight Logo
special_image

    • News
      • Front Page
      • News
      • Breaking News
      • Press Release
      • Features
      • Special Features
      • From the Courts
      • Sports
      • Regional / World
    • Opinions
      • Editorial
      • Our Readers’ Opinions
      • Bassy – Love Vine
      • Dr. Fraser- Point of View
      • R. Rose – Eye of the Needle
      • On Target
      • Dr Jozelle Miller
      • The World Around Us
      • Random Thoughts
    • Advice
      • Kitchen Corner
      • What’s on Fleek this week
      • Health Wise
      • Physician’s Weekly
      • Business Buzz
      • Hey Rosie!
      • Prime the pump
    • ePaper
    • Obituaries
      • In Memoriam / Acknowledgement
      • Tribute
    • Contact Us
      • Advertise With Us
      • Letters To The Editor
      • General Contact Information
      • Contact our Webmaster
    • About Us
      • Interactive Media Ltd
      • St. Vincent & the Grenadines
    • Subscribe
    • News
      • Front Page
      • News
      • Breaking News
      • Press Release
      • Features
      • Special Features
      • From the Courts
      • Sports
      • Regional / World
    • Opinions
      • Editorial
      • Our Readers’ Opinions
      • Bassy – Love Vine
      • Dr. Fraser- Point of View
      • R. Rose – Eye of the Needle
      • On Target
      • Dr Jozelle Miller
      • The World Around Us
      • Random Thoughts
    • Advice
      • Kitchen Corner
      • What’s on Fleek this week
      • Health Wise
      • Physician’s Weekly
      • Business Buzz
      • Hey Rosie!
      • Prime the pump
    • ePaper
    • Obituaries
      • In Memoriam / Acknowledgement
      • Tribute
    • Contact Us
      • Advertise With Us
      • Letters To The Editor
      • General Contact Information
      • Contact our Webmaster
    • About Us
      • Interactive Media Ltd
      • St. Vincent & the Grenadines
    • Subscribe
One Region
September 11, 2012

Cutting EU aid should be resisted, but begging bowl not enough

Except Haiti, all the Caribbean countries that are members of the 79-member African, Caribbean and Pacific (ACP) Group are in danger of losing the level of aid they receive from the European Union (EU) under a differentiated approach being considered by the European Commission. The differentiated approach would make the status of Caribbean states as Middle Income Countries the basis for reducing aid to them.{{more}}

This is a very serious matter. It is one that should command the urgent attention of all Caribbean governments, the Caribbean Community (CARICOM) Secretariat and the Caribbean Development Bank.

It is not overstating the case to say that EU assistance to the Caribbean for its productive sector and infrastructure is an essential component of government revenues, allowing them to spend on social welfare programmes. If EU assistance is reduced, Caribbean countries can expect to see an expansion of poverty and a reduction of social welfare programmes, with an attendant increase in unemployment and violent crime.

The one thing that the Caribbean countries have to resist this “graduation” is the Cotonou Agreement – a Treaty between the EU and the ACP that was negotiated in 2000. Under the Cotonou Agreement, the terms of development assistance to ACP countries should not be altered, unless there is an amendment to the Treaty when it comes up for review in 2015.

I say “should not be altered” instead of “cannot be altered”, because the EU walked away unilaterally from a “Sugar Protocol” that ACP countries thought was unbreakable. Effectively, the preferential market for ACP sugar in the EU eroded overnight, creating havoc in the sugar industry and leading to unemployment and loss of revenues. It has to be hoped that a similar approach will not be taken by an EU unilateral imposition of its “differentiated approach”.

It is now up to Caribbean governments and their embassies accredited to the EU to do the hard work necessary to ensure that the terms of the Cotonou Agreement are not altered in 2015 to allow for them to be “graduated” from the levels of aid they now receive.

The status of most Caribbean countries as Middle Income Countries is the criterion that has been used by institutions such as the World Bank for “graduating” them from eligibility for concessionary loans. It is also the criterion used in the World Trade Organization (WTO) to deny them special and differential treatment for trade. Thus, under existing WTO regimes, Caribbean countries are treated in the same way as, for instance, the US, Canada, Japan, India and Brazil. In this connection, the EU could try to apply its new differentiated approach in arrangements for Middle Income ACP countries.

If the terms of the Cotonou Agreement are altered in 2015, then the Caribbean countries will fall under the Differentiated Development Co-Operation Instrument that the European Commission wishes to introduce for more than 60 countries. The only ones that will be spared will be “Less Developed Countries” – the poorest of the poor, and in that regard only Haiti in the Caribbean will qualify.

There are Middle Income countries in Africa and the Pacific that would be as adversely affected as the Caribbean by the attempt to reduce aid to Middle Income States. These states should be the Caribbean’s natural allies and work should begin urgently to join them to the cause of laying out the case to the EU about why per capita income should not be the only criterion by which decisions on the level of aid should be made.

But in 2003, ACP solidarity was shattered when the 79 member states were divided into several distinct groups to negotiate separate Economic Partnership Agreements with the EU. In this connection, it will be difficult to pull the entire ACP Group together again to resist amendments to the Cotonou Agreement in 2015. Yet, this is work that must start immediately.

The reuniting of the ACP and the rejuvenation and re-invigoration of its purposes are essential to the process of standing up collectively for its member states. The Caribbean should waste no time in organizing a process of weaving the strands of the ACP into the collective whole they were in the effective negotiations for the beneficial Cotonou Agreement and the Lome Convention that preceded it. It is these two Treaties with the EU that set the framework and terms for the non-reciprocal trade, aid and investment benefits that have helped to lift ACP countries over the last 30 years.

Worryingly, officials in the European Commission are now calculating allocations to ACP countries for the 11th European Development Fund for the period 2014-2020. If they conduct the calculations and allocations on the basis of “graduating” Middle Income Countries, then the battle to resist amendments to the Cotonou Agreement in 2015 will be lost even before it begins.

This is why the ACP countries should lose no time in organizing a united front to resist the European Commission’s proposal. Solid technical reasoning is as necessary to the process as are vibrant diplomatic arguments and high-level government contacts between the ACP and the EU. The technical work should be carried out by a single Caribbean unit, utilizing the best skills available to the region, and it should set out measurable outcomes for the funds that are being requested. For, if ACP Middle-Income countries are to justify why aid should not be reduced now, they must be prepared to show how it will be used effectively to transition to diversifying their economies, enhancing their productive sector, and standing on their own feet. A begging bowl is not enough.

The work must start now to make the ACP cohesive again. The Caribbean, which has much to lose, should be in the forefront of that effort.

(The writer is a Consultant and former Caribbean diplomat)

Responses and previous commentaries at: www.sirronaldsanders.com

  • FacebookComments
  • ALSO IN THE NEWS
    NDP romps home 14-1
    Front Page
    NDP romps home 14-1
    Webmaster 
    November 28, 2025
    THE PEOPLE SPOKE emphatically in Thursday’s general elections in St Vincent and the Grenadines (SVG)propelling the New Democratic Party (NDP) into the...
    ULP’s ‘Come Home Rally’ attracts thousands
    Front Page
    ULP’s ‘Come Home Rally’ attracts thousands
    Webmaster 
    November 28, 2025
    A MAMMOTH CROWD thronged the Arnos Vale 2 Playing Field for the ‘Come Home Labour Family’ rally of the Unity Labour Party (ULP) as it closed out the 2...
    Political Parties close out elections campaign with big entertainers
    Front Page
    Political Parties close out elections campaign with big entertainers
    Webmaster 
    November 28, 2025
    “THE WIND OF change is blowing throughout this land,” declared Dr Godwin Friday, leader of the New Democratic Party. He was speaking at the party’s cl...
    Front Page
    NMCM: main polling day complaint, long lines
    Webmaster 
    November 28, 2025
    VOLUNTEERS UNDER THE auspices of the National Monitoring and Consultative Mechanism (NMCM), who have been monitoring the general elections campaign, h...
    Jamaica’s Andrew Holness Congratulates Dr. Friday
    Press Release
    Jamaica’s Andrew Holness Congratulates Dr. Friday
    Webmaster 
    November 28, 2025
    EVEN BEFORE his swearing in as prime minister, regional leaders have been sending messages of congratulations to Dr Godwin Friday on the victory of hi...
    Regional leaders send congratulations to Dr. Friday
    News
    Regional leaders send congratulations to Dr. Friday
    Webmaster 
    November 28, 2025
    TRINIDAD ANDTOBAGO’S Prime Minister, Kamla Persad Bessesar, was also among regional leaders to send early congratulations to Dr. Godwin Friday. “Tonig...
    News
    Regional leaders send congratulations to Dr. Friday
    News
    Regional leaders send congratulations to Dr. Friday
    Webmaster 
    November 28, 2025
    TRINIDAD ANDTOBAGO’S Prime Minister, Kamla Persad Bessesar, was also among regional leaders to send early congratulations to Dr. Godwin Friday. “Tonig...
    Online educator drops in on students at St Vincent Grammar School
    News
    Online educator drops in on students at St Vincent Grammar School
    Webmaster 
    November 28, 2025
    BY GRACE FRANCIS WITH A VIEW to setting foot in every country in the Caribbean, online educator, Kerwin Springer, of Trinidad and Tobago paid a visit ...
    Party leaders travelled north on Thursday
    News
    Party leaders travelled north on Thursday
    Webmaster 
    November 28, 2025
    LEADER OFTHE Unity Labour Party (ULP), Dr Ralph Gonsavles, and leader of the New democratic Party (NDP), Dr Godwin Friday both went to constituencies ...
    Calvert Jones recognized by the OAS
    News
    Calvert Jones recognized by the OAS
    Webmaster 
    November 28, 2025
    A PRESENTATION BY Vincentian artist, Calvert Jones at the 10th Inter-American Meeting of Ministers of Culture and Highest Appropriate Authorities puts...
    From the Courts, News
    Teenage thief activates $900 bond, sent to prison
    Webmaster 
    November 28, 2025
    A TEENAGER, who used another person’s vehicle without permission and was bonded in the sum of $900, is now imprisoned for four months for stealing fro...

    E-EDITION
    ePaper
    google_play
    app_store
    Subscribe Now
    • Interactive Media Ltd. • P.O. Box 152 • Kingstown • St. Vincent and the Grenadines • Phone: 784-456-1558 © Copyright Interactive Media Ltd.. All rights reserved.
    We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.Ok