Quick note: US vs. EU financial support to democratization in Egypt


US funding
Some sources are delivering a figure of 165 mio. USD democracy and human rights assistance. “We told the Egyptians we’d take $165 million and provide it directly to the people who were out there demonstrating and to the organizations involved in the Arab uprising,” a senior USAID official told VOA[1]. The agency has already distributed about $63 million to Egyptian pro-democracy groups. About 86% of the funding has gone to US based organisations like NDI and IRI to help bolster political parties ahead of parliamentary elections expected in November.

On the other hand, data available from official sources and research organisations differ sensibly:

On the Foreign Assistance Dashboard[2] for example, figures are shown as follows: 2011 figures:  peace and security: 1,300 Mio USD, Democracy, HR and governance: 25 Mio USD, health: 15 Mio USD, Education and social services: 91 Mio USD, Economic development: 119 Mio USD. 2012 figures (prevision): peace and security: 1,300 Mio USD, Democracy, HR and governance: 25 Mio USD, health: 30 Mio USD, Education and social services: 91 Mio USD, Economic development: 104 Mio USD.  But probably it is not yet including the latest political commitments.

EU funding
In the period 2007-2010, 7% of the annual bilateral allocation for Egypt for 2011-2013 was allocated to democracy, human rights, good governance and justice[3]. For the following period, the envelope for this priority should be in the range of 5-10% of the budget. With an annual ENPI average budget  of 143 Mio EUROS, it means a rough estimation of an allocation between 7 and 14 Mio Euros (10 to 20 Mio USD) for this priority. Some figures have been made available for Libya and Tunis. But for Egypt, it would be premature to announce a support package until the authorities are ready to make a request for assistance and define priority needs. The EU is ready to mobilise support in line with those priorities when they are ready.

Egypt has declined the option of election monitoring from the EU in the upcoming parliamentary elections. For the rest, declarations about EU financial investment in Democracy, Human rights and governance in Egypt are far more discrete than the US announcements. Probably on purpose, but we need to know more.
As per the Ec and EEAS different statements published in the past 6 months or so, the EU is ready to support the democratic and constitutional reform processes in Egypt. Judicial reform, enhanced transparency and the fight against corruption are of particular importance in this process, both to encourage foreign and domestic economic investment and to demonstrate to people a visible change in their daily lives. The EU is also ready to make expertise available[4].

In a visit to Cairo in July[5], Barroso said that the European Commission will establish a program to support democratization and economic growth, funded by €350 million in grants. The SPRING project — an acronym for Support for Partnership, Reform, and Inclusive Growth—will launch in September and have access to an additional €150 million in the coming year.

The president also said the EU is finalizing plans for the “European Endowment for Democracy” and will support Egyptian participation in educational scholarship programs such as the Erasmus and Marie Curie programs. “There is already a lot of reluctance on the part of Egyptian NGO activists and pro-democracy activists to take American money in particular,” said Khaled Elgindy, a Brookings Institute scholar in Washington, D.C., who was on Tahrir Square during the second day of the anti-regime sit-ins. Pro-democracy funds from the Netherlands, the United Kingdom and other international donors have been received more freely.

Other Sources:
Why Egypt is angry over $65 million in US democracy grants, MENAFM, Youm7
(US) Foreign assistance dashboard: http://www.foreignassistance.gov/Default.aspx
ENPI, National Indicative Programme 2011-2013 for Egypt, Concept Note.
Michael Emerson, Review of the Review – of the European Neighbourhood Policy, 8 June 2011.
  
[1] David Arnold, Foreign Aid Stirs Debate Amid Egypt’s Democratic Hopes, Voice of America website.
[2] The Foreign Assistance Dashboard was initiated by the Department of State and USAID under the policy guidance of the National Security Staff.
[3] ENPI website.
[4] Through Twinning, TAEIX etc.

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