EU launches world aid reform

The European Union unveiled changes to its aid policy on Thursday, focusing more on the world's poorest nations and key sectors such as energy and agriculture at the expense of emerging powers.

Aid programmes to China, Brazil and South Africa will fall while middle income countries such as India or Ghana may also see cuts under the reform - a proposal that was met with concern from international charity groups.

"We must keep pace with changing realities in the world and adapt the way we fight poverty as a result," said EU development commissioner Andris Piebalgs.

"That's why I'm proposing today that we refocus our aid priorities to ensure that countries are on track to achieving sustainable and inclusive growth. I want to make sure that every euro reaches those that need it most," he said.

The 27-state EU is the world's biggest donor, accounting for 50 percent of world aid with 53.8 billion euros ($73.9 billion) handed out last year. The European Commission, the EU's executive arm, manages 20 percent of that aid, or 11 billion euros.

The commission said in a policy paper that it would increase the "volume and share of EU aid to the countries most in need and where the EU can have a real impact, including fragile states."

This will mean drops in aid to the world's emerging powers. Between 2007 and 2013, some 980 million euros are earmarked for South Africa, 140 million euros for China and 61 million euros for Brazil.

In each country receiving aid now, the EU will focus on a maximum of three sectors to avoid dispersing money too widely. Agriculture and energy, which show the most promise for growth, are among those that will reap the benefits.

"We applaud the EU's decision to focus on health, education and agriculture, as these sectors have the greatest impact on improving the lives of those most in need," said Natalia Alonso, head of the EU office of Oxfam charity group.

But, she cautioned, "the proposal to cut aid to some middle-income countries will most certainly have an impact on the poor."