Activities of Heidi HAUTALA related to 2014/2205(INI)
Legal basis opinions (0)
Amendments (48)
Amendment 5 #
Motion for a resolution
Citation 16 a (new)
Citation 16 a (new)
- having regard to the Investment Policy Framework for Sustainable Development (IPFSD) of the UNCTAD1, _____ 1http://unctad.org/en/PublicationsLibrary/ diaepcb2012d5_en.pdf
Amendment 11 #
Motion for a resolution
Citation 18 c (new)
Citation 18 c (new)
- having regard to the ILO Decent Work Agenda,
Amendment 14 #
Motion for a resolution
Recital A
Recital A
A. whereas the role of the public sector is fundamental to the achievement of Sustainable Development Goals (SDGs); whereas private sector is the engine of wealth creation and economic growth in all market economies, generating 90 % of jobs and income in developing countries; whereas the private sector accounts for 84 % of GDP in developing countries according to the United Nations (UN) and has the capacity to provide a sustainable base for domestic resource mobilisation provided that it is properly regulated in order to respect human rights and environment and linked to concrete long term improvements in the domestic economy, sustainable development and inequality reduction; but whereas income and wealth inequalities within and among countries have increased since the early 1980s, including in high-income countries, since the implementation of the Washington Consensus policies;
Amendment 17 #
Motion for a resolution
Recital A a (new)
Recital A a (new)
Aa. whereas private sectors' contribution to SDGs can take two main forms: good governance in business practises and investment in sustainable development;
Amendment 21 #
Motion for a resolution
Recital B
Recital B
B. whereas substantial investments are required, with estimates of the funds needed in developing countries amounting to USD 2.4 trillion more per year than what is currently being spent; whereas private financing can complement, but not substitute public funding;
Amendment 27 #
Motion for a resolution
Recital B c (new)
Recital B c (new)
Bc. whereas the 1986 UN Declaration on the Right to Development affirms development as a fundamental human right; whereas the Declaration commits to a "human rights based" approach, characterized by the realisation of all human rights (economic, social, cultural, civil and political); and whereas the Declaration commits equally to strengthen international cooperation;
Amendment 30 #
Motion for a resolution
Recital B d (new)
Recital B d (new)
Bd. whereas Foreign Direct Investment (FDI) has the potential to contribute to the achievement of Sustainable Development Goals (SDG), as reflected in UNCTAD's proposal for Investing in SDGs: an Action Plan for promoting private sector contributions1, provided that FDI is properly regulated and linked to concrete improvements in the domestic economy, i.a. in terms of transfer of technology and the creation of training opportunities for the local labour force, including women and young people; 1http://unctad.org/en/PublicationChapters /wir2014ch4_en.pdf
Amendment 32 #
Motion for a resolution
Recital B e (new)
Recital B e (new)
Be. whereas import tariffs play a vital role in providing government revenues and enabling nascent industries to grow within developing countries' own domestic market; and whereas import tariffs on processed agricultural products can create space for value addition and job creation within rural economies, while also promoting food security;
Amendment 36 #
Motion for a resolution
Recital B g (new)
Recital B g (new)
Bg. whereas the cooperative sector worldwide has about 800 million members in over 100 countries and is estimated to account for more than 100 million jobs around the world;
Amendment 39 #
Motion for a resolution
Recital B h (new)
Recital B h (new)
Bh. whereas 2012 was declared by the United Nations the International Year of Cooperatives, to highlight their role on development, empowering people, enhancing human dignity and helping achieve the Millennium Development Goals (MDGs);
Amendment 44 #
Motion for a resolution
Recital C c (new)
Recital C c (new)
Cc. whereas fiscal space of developed and developing countries is de facto constrained by requirements of global investors and financial markets; whereas according to the IMF, developing countries are particularly affected by corporate tax avoidance, as they rely more on corporate income tax for raising revenues than OECD countries; whereas practices which facilitate tax dodging by transnational corporations and individuals are widely used by the EU Member States ;
Amendment 49 #
Motion for a resolution
Recital C f (new)
Recital C f (new)
Cf. whereas social dialogue and trade union rights constitute an essential pillar of the ILO Decent Work Agenda and an important tool to ensure that private sector engage effectively in the fulfilment of SDGs; but whereas in a largely globalised economy, labour's bargaining power has been reduced through liberalisation, which jeopardises in return fulfilment of the rights listed in the Universal Declaration of Human Rights of 1948 and the ILO Decent Work Agenda;
Amendment 58 #
Motion for a resolution
Recital F
Recital F
F. whereas existing research shows that a large majority of PPPs is an expensive financing model and is not based on robust impact analysis, while there are weak evidence on their development outcomes; whereas PPPs raise challenges in terms of state indebtedness, transparency and accountability; but whereas well-designed and efficiently implemented PPPs have the capacity to mobilise long-term private and public finance, generate innovation in technologies and business models, and incorporate built-in mechanisms to ensure that such partnerships are held accountable to development results;
Amendment 61 #
Motion for a resolution
Recital F a (new)
Recital F a (new)
Fa. whereas privatisation of basic utilities in Sub-Saharan Africa in the 1990s has i.a. hampered the achievement of MDGs on both water and sanitation, as the focus of investors on cost recovery has among others intensified inequalities in the provision of such services, at the expense of low-income households; whereas in light of the failure of water privatisation, the transfer of water services from private companies to local authorities is a growing trend in the water sector all around the world;
Amendment 65 #
Motion for a resolution
Recital G
Recital G
G. whereas nearly two thirds of European Investment Bank (EIB) lending to Asifrican, Caribbean and Pacific (ACP) countries in the past ten years has been geared towards private sector operations; whereas the EIB Cotonou Investment Facility has been recognised as a unique, risk-bearing revolving fund for financing higher-risk investment in support of private sector development;
Amendment 71 #
Motion for a resolution
Recital H a (new)
Recital H a (new)
Ha. whereas social dialogue is an important tool to support gender equality in the workplace and to guard against exploitative production patterns that adversely affect the lives of young women workers;
Amendment 76 #
Motion for a resolution
Recital I
Recital I
I. whereas, in the context of the Agenda for Change, blending is recognised as an important instrument for leveraging additional resources by combining EU grants with loans or equity from public and private financiers; but whereas the European Court of Auditors Special Report 16 (2014) on the use of blending concluded that for nearly half of the projects examined, there was insufficient evidence to conclude that the grants were justified, while for a number of these cases, there were indications that the investments would have been made without the EU contribution;
Amendment 81 #
Motion for a resolution
Recital I b (new)
Recital I b (new)
Ib. whereas European Development Finance Institutions have an important role in providing long-term finance for private sector in developing and reforming economies;
Amendment 87 #
Motion for a resolution
Paragraph 1
Paragraph 1
1. Welcomes the Commission's initiative to endorse the private sector in becoming, alongside other governmental and non- governmental development organisations, a true partner in achieving inclusive and sustainable developmentAcknowledges that private investment in developing countries can contribute to achieving the UN Sustainable Development Goals if properly regulated; in particular, takes the view that private sector contribution can take two forms: good governance in business practises and investment in sustainable development, which implies private sector's commitment to transparency and accountability in honouring sustainable development practises and responsibility to avoid harm, including through environmental externalities;
Amendment 93 #
Motion for a resolution
Paragraph 1 b (new)
Paragraph 1 b (new)
1b. Points out that private sector is a very broad term encompassing different kind of actors, ranging from local farmers and traders to huge multinational firms; deems that any policy of the EU seeking to involve the private sector in development needs to specify which private sector is being targeted;
Amendment 105 #
Motion for a resolution
Paragraph 2
Paragraph 2
2. EStresses that policy coherence for development is essential in promoting the private's sector contribution to SDGs; emphasises that all partnerships and alliances with the private sector must focus on shared value priorities that align business goals with the EU's development objectives; be co-designed and co-managed to ensure that risks, responsibilities and profits are shared; be cost-effective; and have precise targets, clear accountability and transparency;
Amendment 113 #
Motion for a resolution
Paragraph 3
Paragraph 3
3. Highlights the vast potential of the EU's value added in partnering with the private sector, in close coordination with its Member Statessupporting private sector development in developing countries, in close coordination with its Member States; calls on the EU to respect developing countries' policy space to create regulatory frameworks conductive to pro- poor private sector development, which implies among others to acknowledge their right to set a robust import tariff regime that allows nascent manufacturing to prosper; their right to set automatic safeguards mechanisms against import flooding that would destabilise domestic industries and threaten local jobs and their right to put in place regulations to maximize domestic revenue mobilisation as part of Financing for Development;
Amendment 118 #
Motion for a resolution
Paragraph 3 a (new)
Paragraph 3 a (new)
3a. Acknowledges equally the right of all countries, particularly developing countries, to impose temporary capital restrictions to prevent financial crisis caused by short-term and volatile private financial flows; calls for the removal of constraints to this right from all trade and investment agreements, including at the WTO;
Amendment 124 #
Motion for a resolution
Paragraph 4
Paragraph 4
4. Points out that SMMEs in developing countries face much heavier regulatory burdens than those within the EU, and that they lack legal protection and property rights and operate in the volatile informal economyStresses the need to promote local private sector in developing countries, i.a. through access to finance, promoting entrepreneurship, etc.; calls on donors and development agencies to increase their support to build capacity of domestic Micro, Small and Medium Enterprises (SMMEs) in developing countries;
Amendment 132 #
Motion for a resolution
Paragraph 5
Paragraph 5
5. Underlines the need for increased support towards partnering with developing countries to overhaul their regulatory frameworks by creating an environment friendly for private initiatives; calls on partner goverto find the right balance between creating a climate conductive to investment on the one hand, and protecting public interests and environments to introduce a sunset clause whereby redundant measures can be annulledhrough regulation on the other, i.e. by guaranteeing accessibility and affordability of services for all; notes that legislation should be subject to impact assessments aimed at gauging negative job creation and threats to environmental standards;
Amendment 136 #
Motion for a resolution
Paragraph 6
Paragraph 6
6. Calls for DG DEVCO to work with DG Enterprise in repHighlights the need to maximising domestic resource mobilicsating regional support structures for SMMEs in developing countries aimed at helping them enter legality, get access to finance and capital, obtain market access and overcome legal obstaclon and minimising tax evasion in developing countries as a way to enable Least Developed Countries and fragile states to build more effective and stable governance institutions, as a prerequisite to private sector development; to that effect, calls on the EU to upgrade its financial and technical assistance in developing countries;
Amendment 142 #
Motion for a resolution
Paragraph 6 b (new)
Paragraph 6 b (new)
6b. Reiterates EU's responsibility in supporting a fair global tax system, which implies establishing effectively mandatory requirements for public country-by- country reporting of Transnational Corporations; establishing Public Registers of the Beneficial Owners of Companies, Trusts and similar legal entities; ensuring automatic exchange of tax information and a fair distribution of taxing rights while negotiating tax and investment treaties with developing countries; deems equally that DFIs should only invest in companies and funds that are willing to publicly disclose beneficial ownerships and report back their financial accounts on a country-by- country basis;
Amendment 146 #
Motion for a resolution
Paragraph 6 d (new)
Paragraph 6 d (new)
6d. Recalls that tariff regimes are an essential component of a regulatory environment tailored to pro-poor private sector development and job creation; but notes with concern that Economic Partnership Agreements (EPAs) mandate import tariff reduction across a wide range of ACP countries economic sectors, while eliminating all tariffs on EU imports would considerably lower tariff revenues, in some cases by as much as 15- 20% of government revenues; urges the EU to frame its trade policy in line with the principle of Policy Coherence for Development;
Amendment 150 #
Motion for a resolution
Paragraph 6 f (new)
Paragraph 6 f (new)
6f. Notes with concern that rules on investment protection, which give very strong rights to foreign investors, have reduced governments policy space to regulate in the public interest, especially in the case of Investor-State Dispute Settlement; in this context, reasserts that governments and parliaments of developing countries must retain the right to regulate private investment, including the right to discriminate in favour of investors that support the country's development; more broadly, urges the EU to strengthen the development dimension of international investment agreements (IIAs) and balancing the rights and obligations of States and investors;
Amendment 154 #
Motion for a resolution
Paragraph 7
Paragraph 7
7. Welcomes the EUR 500 million EIB Impact Financing Envelope (IFE) under the Cotonou Investment Facility that allows the EIB to step up its engagement with the private sector in riskier areas and in more challenging environments; deplores the cut in the EIB's lending envelope for AsiaStresses that all EIB investments under the Cotonou Investment Facility should be aligned to country owned development strategies, in line with the principle of democratic ownership;
Amendment 165 #
Motion for a resolution
Paragraph 9
Paragraph 9
9. Highlights that the potential of the private sector'sRecognises that private investment and finance in developing countribution to long-term sustainable development goes beyond its financial resources, and includes its experienes, if properly regulated, can help to support local economies, increase access to products, services and expertise, and the local establishment of value chains and distribution channels, resulting in job creation, increased reach and effectiveness, and increased access to technology and provide decent jobs; to that effect, calls on the EU to channel public support only to those private sector investments that comply with principles of responsible financing and deliver positive development outcommercially available and affordable products, services and technologys, particularly in terms of fighting against poverty and inequalities, promoting women's rights and opportunities and protecting the environment;
Amendment 169 #
Motion for a resolution
Paragraph 9 b (new)
Paragraph 9 b (new)
9b. Stresses that social dialogue is essential to ensure that private sector engages effectively in development; insists upon developing countries' responsibility to support social dialogue between private sector employers, workers and national governments as a way to improve good governance and state stability; in particular, calls on developing countries to ensure that social dialogue is extended to Export Processing Zones (EPZs) and to industrial clusters;
Amendment 175 #
Motion for a resolution
Paragraph 10
Paragraph 10
10. EmphCalls on the EU to assises that the private sector must be pt developing countries to put into practice the four strategic pillarts of the policy dialogue, alongside all other development partnersILO Decent Work agenda, namely job creation, rights at work, social protection and social dialogue, with gender equality as a crosscutting objective;
Amendment 180 #
Motion for a resolution
Paragraph 10 b (new)
Paragraph 10 b (new)
10b. Highlight the positive role of cooperatives as catalysts of socially- inclusive development and their capacity to empower communities through jobs and income generation; in particular, points out that workers have formed shared service cooperatives and associations to assist in their self- employment in the informal economy, while in rural areas, savings and credit cooperatives provides access to banking services that are lacking in many communities and finance the formation of small and micro businesses; hence, calls for a strong commitment of the Commission to encourage the development of cooperatives in developing countries as an important tool of social inclusion;
Amendment 185 #
Motion for a resolution
Paragraph 11
Paragraph 11
11. Underlines the fact that DG Enterprise has numerous tools to help SMEs that wish to do business abroad; calls for DG DEVCO to make more efficient use of such instruments to ensure that European SMEs are involved in multi-stakeholder partnershipsCalls on the EU to contribute to the reinforcement and building of structures, networks and institutions of domestic private sector actors, especially MSMEs, taking their role in national and regional policy making;
Amendment 190 #
Motion for a resolution
Paragraph 12 a (new)
Paragraph 12 a (new)
12a. Notes with concern that many developing countries find themselves in a very weak bargaining position in face of some foreign direct investors making extensive use of tax subsidies and exemptions, thereby weakening their ability to mobilise domestic resources; calls on the EU and donor community to scale up their cooperation on tax matters as a means to improve democratic governance, especially in fragile states; and calls on developing countries to enact regulations to ensure that the private sector contributes to development through fair and transparent taxation;
Amendment 196 #
Motion for a resolution
Paragraph 13 a (new)
Paragraph 13 a (new)
13a. Notes with concern that many donor- funded PPP programs are only accessible for firms from donor countries; hence, fears that the promotion of PPPs in developing countries could result in a new form of aid tying; recalls that development aid should be tied to the objective of poverty eradication only, not to the promotion of EU trade interests policy;
Amendment 202 #
Motion for a resolution
Paragraph 14
Paragraph 14
14. Highlights the vast potential for PPPs in agriculture, under a clearly defined legislative framework for property rights, to prevent land grabbing; Stresses that PPPs should not be diverted to subsidising Northern-based transnational companies which can access alternative sources of financing; believes that all PPPs financed through blending mechanism should in all circumstances be aligned on the host country National Plan of development;
Amendment 206 #
Motion for a resolution
Paragraph 15
Paragraph 15
15. Recommends that the EU continues to engage PPPs inprovide financial and technical support to renewable and green energy projects in developing countries; welcomes the fact that one of the priorities of encourages equally the EIB and the European Development Financial Institutions to finance investment projects in support of climate change mitigation and adaptation in Africa, in line withe EIBU's IFE is the investment in energy, widely recognised as a key element in unlocking economic growth in Africacommitment and obligations under the UN Framework Convention on Climate Change (UNFCCC); recalls that priority should be given to small-scale, off-grid and decentralised renewable energy projects, to ensure energy access to rural areas, while avoiding potential negative social and environmental impact of large-scale energy infrastructure;
Amendment 222 #
Motion for a resolution
Paragraph 17
Paragraph 17
17. Highlights that engagement with the enterprise sector requires a flexible approach; recommends a differentiated approach with regards to least developed countries and fragile statesNotes that investment and private sector engagement across SDG sectors are highly variable across developing countries; points out that blending risks leading to a debt bubble, notably in Sub- Saharan Africa and the Caribbean countries with limited revenues to service their debt; accordingly, calls on donors to give the majority of their aid to LDCs in the form of grant;
Amendment 226 #
Motion for a resolution
Paragraph 18
Paragraph 18
18. Welcomes the criteria outlined in the Commission's communication on private sector and development, for the provision of direct support to the private sector; calls for the setting up of a clearly defined framework agreement governing all pbut sees the need for a more detailed criteria; takes the view that any decision to promote the use of PPPs through blending in developing countries should be based on a thorough assessment of these mechanisms, and on the lessons leartnerships with the private sector that can confer the implementation benchmd from past experience; calls for the adoption of international standarkds that need to be followed, and which are currently lacking in the Communicationand criteria for blending projects based on the guiding principles on business and human rights, the best international practices and the internationally agreed development effectiveness principles;
Amendment 230 #
Motion for a resolution
Paragraph 19
Paragraph 19
19. Is concerned that safeguards to guarantee the purposeful use of public finance are not always in place; stresses that measurable output indicatorin particular, notes that the goals of PPPs are often defined in a very general way, while criteria for specific, measurable, attainable and timely objectives are usually absent; stresses that PPPs should be a tool which rewards responsible behaviour by private firms; accordingly, deems that a strong regulatory framework shall be put in place to ensure these investments comply with human rights, social and environmental standards, transparency, while ensuring that the private sector pays its fair share of taxes; insists upon the need to conduct an ex ante pro-poor impact assessment for each PPP project that benefits from official development aid; stresses that measurable output indicators and monitoring as well as evaluation mechanisms must be agreed upon in the preparatory phase of the projects; stresses the importance of risk assessment, debt sustainability, and transparency and investment protection; highlights the importance of the formal consultative and scrutiny role of national parliaments, and of civil society; in order to ensure full transparency and accountability;
Amendment 235 #
Motion for a resolution
Paragraph 20
Paragraph 20
20. Calls on the Commission and the Member States to ensure that enterprises involved in development partnerships abide by the principles of corporate social responsibility (CSR) throughout the whole lifecycle of projects, including by respecting the UN Global Compact on human rights, UN Guiding Principles on Business and Human Rights, ILO core labour standards, environmental standards, UN Convention Against Corruption; highlights the need for Member States to draw up national plans to implement the UN Guiding Principles on Business and Human Rights and especially the due diligence regulation;
Amendment 244 #
Motion for a resolution
Paragraph 21
Paragraph 21
21. CTakes the view that a strategic framework for private sector investment in SDGs is essential to mobilize and channel funds to sustainable development, while putting in place appropriate safeguards to mitigate its risks; to that effect, stresses the need to adopt legally binding rules on corporate social responsibility; more broadly, calls on the European institutions and bodies to establish a clear and structured framework for governing partnerships and alliances with the private sector in developing countries, which provides guiding principles, set targets, foster dialogue and guarantee inclusiveness;
Amendment 256 #
Motion for a resolution
Paragraph 23
Paragraph 23
23. Welcomes the Commission's intention to expand the scope of blending to include areas beyond infrastructure, such as sustainable agriculture, social sectors and local private sector development; insists, however, that all blending operations must be fully consistent with development policy, making sure that it pursue the SDGs; calls on the Commissionarns against using concessional loans for investments in social sectors such as health and education, as it can hamper the provision of services of general interests, especially for vulnerable population; emphasises that scarce public aid resources should support public investment in the host countries, which are not necessarily expected to yield short or medium term financial returns; insists that all blending operations must be fully consistent with development policy, making sure that it pursue the SDGs; calls on the Commission to evaluate the mechanism of blending loans and grants, particularly in terms of development and financial additionality, transparency and accountability and to strengthen its management capacities with regard to blending projects, as recommended by the Court of Auditors;
Amendment 263 #
Motion for a resolution
Paragraph 24
Paragraph 24
24. CRecalls for an expansion of the current EIB external lending mandate, to increase its role in achieving sustainable development and, in particular, to take a more active parthat EIB financing operations implemented through the Union guarantee granted to the EIB in developing countries shall have as primary objective the reduction and, in the long term, the eradication of poverty; in particular, stresses that the EIB and the European Development Fin the new private sector strategy – through blending, co-financing of projects and local private sector development – with a focus on low- income countries and fragile statesancial Institutions should only cooperate with financial intermediaries not operating in offshore financial centres, which have substantial local ownership and are equipped to implement a pro-development approach supporting the specificity of SMEs in the countries of operation; calls, furthermore, for greater transparency and accountability in partnerships and projects associated with the EIB;
Amendment 270 #
Motion for a resolution
Paragraph 26
Paragraph 26
26. Calls for a stronger commitment on the part of the Commission, when it comes to leveraging its political weight with partner governments and local authorities, to facilitate a greater and more positive interaction with the private sector; hHighlights the fact that Country Strategy Papers, National Indicative Programmes and budget support may be the most valuable instruments in spearheading businessto support regulatory reforms in partner countries to promote domestic industrialisation, engage private sector in decent work and fair taxation;
Amendment 275 #
Motion for a resolution
Paragraph 27
Paragraph 27
27. Emphasises that the responsibility for effective joint action lies not only with the donors and the enterprises involved, but also with the partner governments; stresses that the rule of law, a framework for business reform, anti-corruption measures, public financial management and effective public institutions are paramount to investment, innovation and private sector development; highlight that channelling development aid to these purposes promotes also the possibilities of private sector to function in developing countries;