Policy Updates

On July 18, 2024, the European Parliament endorsed Ursula von der Leyen for a second term as President of the European Commission through a secret ballot, where she received 401 votes, 41 votes above the 361 votes needed for a qualified majority.

Von der Leyen received 289 votes against, 15 abstentions, and 7 votes were invalid. The secret ballot suggests von der Leyen managed to garner support from a coalition of pro-European, democratic groups across the center-left and right. Experts noted that this could indicate that a centrist coalition is possible, though future policy decisions will need to be built on a case-by-case basis amidst ongoing polarization.

During the debate that preceded the vote, von der Leyen outlined her political priorities for the next five years. The main proposals related to EU global engagement included appointing a Commissioner for Enlargement and one for the Mediterranean, developing a new economic foreign policy through the Global Gateway, and focusing on strategic partnerships, particularly with Africa ahead of the EU-Africa Summit in 2025.

Von der Leyen emphasized the need for the EU to remain a leader in international climate negotiations and proposed new initiatives, such as a European Climate Adaptation Plan and a Clean Industrial Deal. Her agenda included a focus on security and defense, with plans to create a European Defense Union, appoint a new Commissioner for Defense, as well as developing a new European Migration and Asylum strategy and a Pact for the Mediterranean. Von der Leyen's focus on health has decreased since the pandemic, with a focus mainly on a Critical Medicines Act, an action plan for hospital cybersecurity, and a strategy to support medical countermeasures through HERA.

The focus of the EU's new seven-year budget will be on simplicity, flexibility, speed, and strategic priorities. It will streamline funding allocation, moving away from a program-based budget to a policy-based one. External action financing is expected to further align with EU interests. Von der Leyen also highlighted support for the introduction of new EU resources.

Von der Leyen's proposals reflected the current geopolitical landscape and internal EU dynamics, focusing on strengthening the Union’s resilience and strategic interests. Her agenda also proposed a significant increase in research and innovation spending, the establishment of new roles, such as a Commissioner for Equality and a Commissioner for Intergenerational Fairness, the set-up of a new European Competitiveness Fund, and policies addressing housing, youth, and agriculture.

On July 18, 2024, UK Prime Minister Keir Starmer, during the European Political Community Summit, announced that the UK would work with the 'Global South' to tackle irregular migration, committing GBP84 million (US$108 million) over the next three years to address the drivers of irregular migration in Africa and the Middle East.

The funding is slated to work to improve education and employment opportunities as well as help to build resilience to global shocks like conflict and climate change, which are two of the leading causes of irregular migration.

Funding which will come from the UK’s ODA budget includes:

• GBP13 million (US$15 million) to expand Migration for Development programs in North and East Africa;
• GBP21 million (US$25 million) in support for key host and transit countries, including Libya, Ethiopia, Egypt, and Chad provided via multilateral channels;
• GBP26 million (US$31 million) for the Middle East and the wider region to support Syrian refugees; and
• GBP24 million (US$29 million) in direct funding to support communities in Sudan, Chad, and Ethiopia.

On July 3, 2024, following the swearing-in of the new Dutch cabinet, Dutch Prime Minister Dick Schoof announced the government declaration in the House of Representatives, highlighting key policy areas and approaches for the cabinet.

Schoof reaffirmed the commitment to the EU and NATO as the cornerstone of the Netherlands’ security and prosperity. He pledged continued support for Ukraine against the Russian invasion and committed to enshrining the NATO standard of 2% of GDP defense spending into law.

Schoof emphasized reducing dependence on external sources and enhancing national resilience through strategic autonomy in energy, food security, and raw materials. He committed to honoring all existing international treaties and minimizing additional national measures, especially in nature and climate policies, to maintain competitiveness.

Schoof also mentioned proactive engagement with the EU to address national concerns and seek exceptions where agreements disproportionately impact the Netherlands, particularly in migration and agriculture.

On July 2, 2024, Japanese NGO Keizai Doyukai and the ADB Group convened in Tokyo to discuss enhancing private sector investment in Africa, with a particular focus on engaging youth.

Established in 2009, Keizai Doyukai’s Africa committee seeks to foster growth through increased trade and investment, reflecting a commitment to mutual development.

The meeting also addressed climate finance, critical minerals, and climate change adaptation. CEO of Shibusawa and Co. Ken Shibusawa highlighted the upcoming TICAD9 in 2025, emphasizing youth engagement as a major theme. Vice President of the ADB Group Kevin Kariuki highlighted Japan's recent US$10 million funding for the AGIA, which aims to make projects more attractive to private investors. The Bank Group’s chief economist, Kevin Urama, stressed that Africa's growth heavily depends on private sector involvement.

Shibusawa and Kariuki cited successful ventures, like the Menengai geothermal project in Kenya, to illustrate Japan's strengths. The ADB, with its deep ties in Africa, provides risk mitigation tools and advises Japanese investors in the region. Discussions also explored using Japanese development assistance to drive private infrastructure investment, demonstrating Keizai Doyukai’s ongoing efforts to bolster economic ties and private sector engagement in Africa.

On June 27, 2024, the Strategic Agenda 2024-2029, which emphasized the EU's commitment to peace, cooperation, and economic prosperity amid a reshaping of the global political landscape marked by strategic competition and instability, was adopted by the European Council.

The EU outlined the following priorities:

• Bolster Europe’s economic competitiveness, including deepening the Single Market in strategic sectors like energy, finance, and telecommunications;
• Strengthen security and defense capabilities within the EU;
• Reinforce EU sovereignty and unity to address strategic competition, climate change, technological advancements, and global instability;
• Strengthen external influence by supporting Ukraine in defending its sovereignty, promoting stability in its neighborhood and beyond, fostering strategic partnerships, and coordinating internal and external policies to address global challenges effectively;
• Uphold human dignity, freedom, democracy, equality, and human rights, while safeguarding the rule of law and enhancing democratic resilience;
• Invest in defense readiness, supporting Ukraine, combating crime, and addressing cyber threats, while enhancing cooperation with NATO and other partners;
• Ensure the proper functioning of the Schengen area, addressing irregular migration, and promoting legal pathways;
• Support the international legal order, promoting peace, democracy, and sustainable development, and reforming the multilateral system;
• Boost economic growth, supporting social welfare systems, investing in skills and education, and reducing disparities across the EU; and
• Pursue a merit-based approach to EU enlargement, supporting aspiring members, and undertaking necessary internal reforms.

On June 27, 2024, USAID announced US$66 million to Zambia, which is designated by the US as a Feed the Future accelerator county, to mitigate worsening drought conditions, strengthen food security efforts, and build local resilience.

Zambia's crop loss has reached between 60-95% due to drought conditions, increasing food prices by 83%. USAID is providing emergency assistance to address the urgent nutritional crisis, as well as help farmers in Zambia strengthen longer-term resilience.

The US and Zambia are working together to help implement the Feed the Future program, including through implementation of the Feed the Future Accelerator effort.

From June 17 to 20, 2024, Canada hosted the 54^th Annual Meeting of the Board of Governors of the CDB and announced more than CAD11 million (US$8 million) in funding for economic development in the Caribbean.

The funding included:

• CAD5 million (US$4 million) to the Inter-American Development Bank for the Compete Caribbean+ project to enhance private sector productivity and foster regional economic growth;
• CAD4 million (US$3 million) to the Environmental Foundation of Jamaica for the Jamaica Urban Solutions for the Environment project to increase climate resilience through gender-responsive and nature-based solutions for urban areas vulnerable to climate hazards; and
• CAD2 million (US$1 million) in top-ups to UNFPA for the program EQUAL SRHR to improve the protection of women and girls in Guyana and Trinidad and Tobago, including those who are Venezuelan migrants, by advancing SRHR and protection from GBV.

On June 20, 2024, the G7's Accountability Working Group released the G7 Apulia Progress Report 2024: Advancing Sustainable Development in Africa.

The annual Progress Report is an accountability tool that monitors the implementation of the development policies adopted by the richest countries in the G7 framework.

The report reviewed progress on G7 development commitments from 2015-2022, showing increased ODA flows to Africa despite regional and global crises. G7 cooperation supported key areas such as economic transformation, food security, climate resilience, and gender equality. Significant initiatives included the African Continental Free Trade Area, the Global Shield against Climate Risks, and the Affirmative Finance Action for Women in Africa. The report emphasized the need for enhanced G7 cooperation with African partners, especially in addressing economic and climate challenges.

The Italian G7 Presidency selected Africa as the focus for the Report, recognizing the continent's significant potential for sustainable development and its crucial role as a partner in advancing progress towards achieving the SDGs, Agenda 2063, and the Paris Agreement.

On June 17, 2024, the second edition of the Australian Lowy Institute's 'aid map' documents showed overall ODA flows to Southeast Asia from all sources declined to US$26 billion in 2022, following a reduction in COVID-19 related support.

Some traditional donors, including Australia, showed a small decline in ODA transfers. Substantial reductions appeared in flows from China and the ADB.

Southeast Asia also saw a significant decline in climate-oriented development finance. Lowy indicated that climate finance had declined by 15% over the previous year.

The map covered financial flows by 107 development partners to 120,000 projects.

On June 13 and 16, 2024, Canadian Prime Minister Justin Trudeau announced CAD5 billion (US$3.6 billion) and CAD52 million (US$38 million) at the G7 Summit and the Summit on Peace in Ukraine, respectively, in support of Ukraine.

The CAD5 billion (US$3.6 billion) contribution will contribute to the G7 Extraordinary Revenue Acceleration Loans for Ukraine. Through the initiative, G7 countries intend to bring forward the revenues from frozen Russian sovereign assets, providing Ukraine with approximately CAD69 billion (US$50 billion).

The CAD52 million (US$38 million) contribution was allocated in support of Ukraine’s recovery and rebuilding efforts. This included:

• CAD20 million (US$15 million) to support Ukraine’s urgent efforts to replace damaged energy equipment and infrastructure; and
• CAD15 million (US$11 million) for civilian services, including:
  • Supporting vulnerable children and youth, and the reintegration of displaced children returning to Ukraine through children protective services;
  • Improving access to justice for survivors of war crimes;
  • Increasing families’ and civil society’s awareness about the missing persons process; and
  • Supporting male survivors of conflict-related sexual violence, including prisoners of war.
• CAD15 million (US$11 million) to help Ukraine's recovery, including:
  • Supporting the IMF to help Ukraine acquire the technical assistance and training needed for economic reforms and eventual accession to the EU;
  • Improving Ukraine’s capacity to safely clear mines and other remnants of war; and
  • Providing Ukraine’s government with technical assistance from Government of Canada experts in the justice and energy sectors.