ChallengestoEUPoliciesonDevelopmentCooperationwithLatinAmerica 2 23 Forum on Aid Effectiveness ( HLF ), comprising bilateraland multilateral donors , as wellasa numberofrecipientcountries , hasadoptedimportant documents , suchastheRomeDeclarationon Harmonisation ( 2003 ) andthe ParisDeclarationontheEffectivenessofAid ( 2005 ) .Thelatter , inparticular , definedanewparadigmintherelationshipbetweendonorsandrecipients , calling thelatter “ partnercountries ”, inaspiritofcoresponsibility.Thedeclaration , signedbymorethan100donorsanddevelopingcountries , wasintendedtophase outrelationshipsbasedonconditionalityandtotackletheproblemsresulting fromtheproliferationofdonorsandthefragmentationofaid.Furthermore , all ofthisisbasedontheprinciplesofownership , alignment , harmonisationand mutualaccountability. 2.1 DevelopmentCooperationPolicieswithMICs:RelevanceforLatinAmerica Theexistenceof “ pocketsofpoverty ” hasbeenclaimedasjustificationfor themaintenanceofaidflowsto middleincomecountries ( MICs ) .Buttheaid reductionstoMICshaveoftenbeenjustifiedonthegroundsthattherealproblem inmanyofthesecountriesisinequality , notpoverty.Itisarguedthatitisnot justifiabletohandoverexternalresourceswhentheinternalactorsthemselves rejectthe redistributive policies needed to reduce poverty and inequality. However , thisargument wouldbecorrectonlyifreducingaid waslikelyto encourageinternalchangesandpropoorpoliciesindevelopingcountries , butthis isunlikely. ThereareotherimportantreasonsformaintainingaidtoMICsandtheyare particularlyapplicabletothesituationinLatinAmerica.AsAlonso ( 2007 ) has indicated , iftheaimistoeradicatepoverty , progressmustalsobemadeinthe MICs , giventhenumbersofpoorpeopleinthesecountries.Second , theaid systemwouldbeestablishingaperversesystemofincentivesandraisingamoral hazardissueifprogressindevelopmentweretobepenalisedbyareductionin aid.Third , itisimportanttoavoidbackwardstepsincountrieswhereprogress hasnotbeenconsolidated , andincountriesathighriskduetotheirexternal vulnerabilitytofinancialorothercrises.Fourth , thesecountriesalsooftenactas regional “ anchors ” intermsofeconomicdevelopmentandregionalstability ( for example , MexicowithregardtoCentralAmericaandBrazilwithregardtothe AndeanandSouthAmericancountries ) .Fifth , thefighttoreducepovertyand promotesustainabledevelopmentpartlydependsontheadequateprovisionand maintenanceofglobalandregionalpublicgoodsandthesecannotbeensured withoutthesupportoftheMICs.Finally , inadditiontobeingrecipientsofaid , thesecountriescanalsobedonorsthroughinnovativeSouthSouthcooperation
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China, the EU and Latin America : current issues and future cooperation
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