The EU Code of Conduct presents operational principles for EU donors regarding complementarity in development cooperation. Their aim is to enhance effectiveness by improving overall development results and impact for poverty reduction and reducing the transaction costs, through a division of labour between donors

General principles

• to improve in-country complementarity and cross-country complementarity,
• to propose an inclusive approach that is open to all donors,
• the Code is voluntary, flexible and self-policing,
• the Code is a dynamic document that establishes principles and targets towards which EU donors will strive to work progressively and accordingly,
• commitment of the Member States and the EC to increase their participation in joint multi-annual programming based on partner countries’ development strategies and to use the EU joint programming framework gradually and voluntary as a pragmatic tool to advance division of labour,
• the partner country should be responsible for coordinating donors. The primary leadership and ownership in in-country division of labour should first and foremost lie in the partner country government,
• no implementation of division of labour at the expense of global aid volumes or predictability of aid flows,
• political commitment and adequate support and impetus need to be made both in headquarters and in the field,
• to avoid situations where all EU donors are absent from a strategic sector for poverty reduction.

Guiding principles

Guiding Principle 1 – Concentrate on a maximum of three sectors in-country
Guiding Principle 2 – Redeployment for other in-country activities
Guiding Principle 3 – Lead donor arrangement
Guiding Principle 4 – Delegated cooperation/partnership (additional to the maximum of three sectors)
Guiding Principle 5 – Ensure an adequate donor support
Guiding Principle 6 – Replicate practices at regional level
Guiding Principle 7 – Establish priority countries
Guiding Principle 8 – Address the “orphans” gap
Guiding Principle 9 – Analyse and expand areas of strength
Guiding Principle 10 – Pursue progress on other dimensions of complementarity
Guiding Principle 11 – Deepen the reforms

Definition of a sector of concentration: the appreciation of what constitutes a sector, being intuitive or informed, should be done in a flexible manner, at partner country level and match the definition of the partner country, that should have identified the sector as a priority in its poverty reduction strategy or equivalent.

In limited cases, where donors face a significant reduction in sector coverage, this target may be increased to engage in more than three sectors, taking full account of partner country views, neglected issues of particular importance and a realistic timeframe to support any change in their country programmes.