The European Development Fund and Economic Partnership Agreements: Economic Paper 75

African, Caribbean and Pacific (ACP) countries face a huge transformation as they attempt to adapt to a more liberalized global market. They have agreed to negotiate Economic Partnership Agreements (EPAs) with the (EU) to assist with this adaptation.

The European Development Fund (EDF) is the main instrument of the EU for helping these countries. This Economic Paper argues that despite the commitments about aid made by the EU at the 2005 G8 summit in Gleneagles, Scotland, the EDF is under-resourced. Moreover, there are serious doubts as to the effectiveness of the fund in providing time-sensitive assistance to ACP states. Instead, the contributors propose a separate EPA adjustment facility. If EU countries meet their target aid figures, they could fund both the traditional EDF programs and an EPA adjustment program. This book is for economists and international trade specialists concerned with the effects of trade liberalization on developing economies.