The Commission’s new approach to international partnerships might require radical change for development collaboration, with investors already smelling profits, NGOs and civil society actors warn of the loss of a fair development policy. Udo Bullma criticises the current direction, calling for a transformative strategy that combines economic progress with social and ecological development.
Udo Bullmann is a German member of the European Parliament and S&D Coordinator on the Development Committee.
European Commission President Ursula von der Leyen’s strategic guidelines as well as the mission letter for the newly nominated European Commissioner for International Partnerships, signals a fundamental change of direction in the EU’s development cooperation policy, emphasising the need to capitalise on its geo-economic potential.
This new approach focuses on scaling up resources for the Global Gateway initiative, particularly in infrastructure, with the goal of generating mutual benefits for both the Global South and Europe. Notably, this effort aims “to help secure the supply of raw materials, clean energy, and clean technology.”
Investments can and should benefit the poor
Infrastructure investments have played a critical role in promoting inclusive growth, reducing poverty, and addressing inequality in many developing countries. Projects, particularly those focused on expanding access to electricity, water, sanitation, telecommunications, roads, and railways, have markedly improved economic opportunities for the poorest populations and enhanced their overall quality of life. For example, access to electricity boosts productivity and income opportunities for disadvantaged households, particularly in rural areas, while also improving health and education outcomes. Similarly, enhanced transport infrastructure can reduce travel times, thereby unlocking employment, entrepreneurship, and access to social services.
According to the International Energy Agency, in 2023, at least 750 million people worldwide lacked access to electricity, 80% of whom lived in Sub-Saharan Africa. Additionally, 2 billion people did not have access to safe drinking water, and 3.6 billion lacked adequate sanitation. In Africa, 70% of the rural population was disconnected from transport systems. Therefore, investing in these infrastructures is crucial to promoting the sustainable development of the Global South.
Not all investments are inherently beneficial
Investments do not automatically benefit a society. Good investments are those that are not solely focused on profitability but also prioritise human well-being. Such investments must be designed to benefit wider populations, particularly the socio-economically excluded in the Global South. Countries such as Brazil, China, and India have heavily invested in infrastructure over the past two decades, not only to sustain high growth rates but also to alleviate poverty.
A notable example of people-centred investment under the Global Gateway initiative is a pilot project in Lesotho, led by the European Commission. This project aims to expand the country’s electricity network using renewable energy sources while adapting solutions to ensure access for poorer and vulnerable rural communities.
EU Global Gateway initiative, neo-colonial and pro-business according to NGOs
NGOs have criticised the EU’s Global Gateway initiative, calling it a ‘neo-colonial’ tool that mainly benefits Europe’s strategic interests.
Sustainable Development Goals are indispensable
Geo-economic objectives of the Global Gateway initiative, as outlined by the new Commission, are undoubtedly relevant for Europe’s future. True mutual benefits, however, for the EU and its partner countries can only be realised if these investments primarily aim to advance the Sustainable Development Goals (SDGs) in the Global South. This includes safeguarding the environment, combating climate change, and addressing poverty and inequality, which are key factors undermining social cohesion and stability and fuelling challenges such as migration.
Addressing poverty and inequality is particularly relevant, as the World Bank estimates indicate that the number of people living in extreme poverty, with less than $2,15 a day, was 712 million in 2022, significantly increasing from 2019.
This surge was driven by the pandemic, the war in Ukraine, and a global recession, all of which have had particularly severe effects on social welfare, education, and healthcare systems. This is why human-centred investments must be accompanied by robust support for key social infrastructures, such as basic education, healthcare and social protection. Interventions in these areas must not diminish, but rather increase.
As a result, the SDG agenda cannot remain a mere commitment on paper. It must serve as the core guiding framework for all European Commission actions in international partnerships, especially within the Global Gateway initiative.
Assess where the money goes
There is a lot of mistrust in how money for international partnerships is spent. Considerate actors know that neoliberal trickle-down promises do not work.
The previous European Commission has introduced assessment instruments — most notably the Inequality Marker — which, alongside the SDG framework, must be reinforced and expanded.
These tools will ensure that investments benefit the most socio-economically disadvantaged populations, including low-income households, women, and minorities, while also ensuring that the distributional impact of interventions is properly measured.
In addition, fostering the active role of civil society organisations and NGOs in the planning and monitoring of investments is essential. This approach will help ensure that interventions remain people-centred and aligned with the needs of vulnerable communities.
This focus on transparency and measurable outcomes will help meet the expectations of European taxpayers, who, according to numerous public opinion surveys, largely support financing development cooperation, provided it benefits the most vulnerable groups in the Global South.
In the broader geopolitical context, this approach will help the EU carve out a distinctive position in the Global South. By focusing on truly inclusive development and social justice, the EU can effectively make a difference to the policies offered by Russia and China. Rather than merely vying for influence, the EU can stand out by championing social justice and inclusive growth — values that are central to the European social model, the core of its own success story.
Source: euractiv.com
