SECRETARY General of the Caribbean Community (CARICOM) and Caribbean Forum of African Caribbean and Pacific (ACP) States (CARIFORUM) Mr. Irwin LaRocque feels that new European Union (EU) external aid policies of using per capita income to determine ACP countries eligibility for development assistance is misguided.
Even as he expressed CARIFORUM”s deep appreciation for the support of the EU and its European Development Fund (EDF) Grant assistance over the years, he said that this was one issue on which the CARIFORUM countries differ with the EU.
He said that the EU external aid policies based on principles of differentiation (differentiated levels of development assistance) and graduation from ACP/ EU development cooperation should be reviewed.
Indicating his view of the potential negative implications of such a policy in relation to the 11th EDF, he stressed: “The use of per capita income to determine a country’s development and its need for grant and concessional funding does not provide the true picture.
“Per capita income is, at best, an arithmetic ratio that does not address levels of poverty, distribution of income, levels of indebtedness, vulnerability and capacity to self-generate sustainable economic and social development.”
He added: This is an area on which we (CARIFORUM) welcome continued policy and political dialogue with our European Partners, particularly within the context of Small Island Developing States (SIDS) and the Post 2015 Development Agenda.”