Reference Document Nr. 10: Trade and Private Sector Policy and Development

This reference document published in 2011 relates to support programmes financed by EU external assistance in the areas of Trade and Private Sector Policy and Development (TPSPD) and replaces the 2003 Guidelines for EC Trade Related Assistance and the 2003 Guidelines for EC Support to Private Sector Development.

It aims to take into account relevant developments which took place since, both at policy level and in terms of approaches and practices in relation to support programmes in these areas. In particular, it takes into account the global Aid for Trade initiative launched in 2005 and the resulting EU Strategy for the implementation of Aid for Trade adopted in October 2007, as well as the general initiatives to improve the effectiveness of aid and donor coordination: the Paris Declaration on Aid Effectiveness (2005) and the subsequent Accra Agenda for Action (2009).

 It is for all those involved in developing, implementing and monitoring such EU support programmes, in particular the Commission’s cooperation sections in the Delegations of the European External Action Service in the recipient countries, as well as the Commission’s services in Headquarters. It seeks to enhance the Commission’s capacity and effectiveness in designing and implementing TPSPD programmes and projects. The document is therefore of an operational nature.

This document is composed of two parts:

-  Part I gives the context for the TPSPD areas, summarises the importance of TPSPD together with its linkages to broader aspects of development cooperation and wider external assistance, including the one provided to the so-called Neighbourhood countries (Southern- Mediterranean and Eastern Europe). This Part covers the relationship between TPSPD and EU development cooperation and other external policies; an overview of Aid for Trade; the principles and arrangements contained in the Paris Declaration and Accra Action Agenda on Aid Effectiveness; aid delivery methods; cross-cutting issues (governance, gender, decent work, environment); an introduction to the thematic reviews developed in Part II of the document and some of the links between them.

-  Part II contains ten specific thematic reviews dealing with all the major themes covered by TPSPD. Each thematic review can be read in isolation and is designed to give the user an introduction to the topic, explaining

• What the theme covers (definition, terminology, concepts; rationale for intervention in the specific area; legal and regulatory framework, both at the international and country level; key issues and key actors).
• What can be done through support programmes (problem identification and diagnostic tools; broad areas of intervention).
• How it can be done (methods and levels of intervention, sequencing of activities, expected results and result measurement, cross cutting issues, risks). Bibliography and pointers as to where more indepth information can be obtained.

This reference document was prepared by the Unit Private Sector Development, Trade and Regional Integration of DG EuropeAid of the European Commission. Initial contributions from external experts and staff were further developed, structured and tailored by the following persons: Jan ten Bloemendal, Thaïs Leray, Alessandra Lustrati, Sonia Pagliaro and Stefaan Pauwels. The consultation with line DGs of the Commission provided valuable inputs to the final version of this document. Modifications and adaptations will be made when necessary. Comments, questions and suggestions are welcome and can be sent to EuropeAid at the following email address: Europeaid-C4-1@ec.europa.eu