Strengthening the European financial architecture for development through better coordination
To support partner countries in developing their economies in a green, inclusive and gender-sensitive way, the EU should strengthen coordination between its different institutions, member states and the private sector as part of the European financial architecture for development (EFAD). Karim Karaki and San Bilal look at efforts made to strengthen the EFAD, analyse what is preventing further cooperation and share recommendations for EU policymakers.
Providing better, faster and stronger support towards sustainable development is necessary to foster partner countries’ capacities to develop their economies in a green, inclusive and gender-sensitive way. To address this challenge, the EU should exploit the full potential of its networks and strengthen cooperation and coordination between its institutions, member states, development finance institutions, implementing agencies, public commercial institutions and the private sector as part of the European financial architecture for development (EFAD).
In the past years, European policymakers have acknowledged the importance of stronger cooperation and coordination under the EFAD – not in the least as a way of improving relations between Europe and Africa. In this paper, we look at recent progress made in terms of strengthening the EFAD, zooming in on the EU’s ‘Team Europe’ approach and its Global Gateway strategy, and on cooperation between development finance institutions and between implementing agencies. We analyse the challenges that prevent further cooperation and highlight several recommendations for EU policymakers to ensure that the EFAD is set up effectively and can achieve greater and more transformative impact.