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The EU-AFD Facility on Inequalities
Funded by the European Union and implemented by AFD, the Research Facility on Inequalities aims to strengthen knowledge on inequality in low and middle income countries. After the success of the first phase implemented in some thirty countries between 2017 and 2020, AFD and the EU have launched a second phase in 2021 in four countries: South Africa, Colombia, Indonesia and Mexico.
Initiated in 2017, this €4 million program, funded by the European Union and coordinated by AFD in collaboration with research centers in partner countries, had a dual objective:
- To better understand socio-economic inequalities, their determinants, their evolution and their effects in order to better respond to them in terms of public policies;
- Engage in joint reflection on inequalities with EU Member States in the context of the United Nations 2030 Agenda and the Sustainable Development Goals.
An addendum to the initial agreement was also signed in 2020 between the European Commission and AFD. This addendum is accompanied by additional funding of 520,000 euros enabling AFD to continue the research work on inequalities undertaken during the first phase of the Facility.
22 research projects conducted in 32 countries and 9 cities
Three types of projects were implemented in the first phase of the Research Facility on Inequalities:
- Global projects to study the determinants and dynamics of socio-economic inequalities in developing and emerging countries.
- City and country projects that respond to the needs of partner countries and aim to support them in developing public policies to reduce inequalities. These projects were carried out in close collaboration with the governments concerned.
- Projects that provide tools for better analysis of inequalities.
Following the success of the Facility's first phase, AFD and the European Commission have agreed to continue the program in a second phase: the Extension.
4 partner countries: South Africa, Mexico, Colombia and Indonesia
This new phase, financed with 3 million euros by the EU over the period 2021-2025, will focus on four countries: South Africa, Mexico, Colombia and Indonesia.
The Extension intends to support these four partner countries in formulating policies to reduce inequalities in the context of the 2030 Agenda. The policies developed under the Extension will be the result of a close dialogue with the governments and will be based on research conducted with local research centers. These policies will also build on the results achieved so far by the Facility, both in terms of methodologies developed and synergies established.
Building on nearly ten years of collaboration, the EU and AFD have launched the third phase of the Facility on Inequalities. Taking a more operational orientation, it focuses on how investments – particularly in infrastructures and the private sector – can help reduce inequalities.
Coordinated by AFD with €1.68 million from the European Commission for 2026-2028, the Facility has three priorities:
- Mainstreaming inequalities from the start: the Facility will inform the scoping and early design of public and private investments by providing analyses that highlight their potential effects on inequalities;
- Practical guidance: the Facility will develop tools and methodologies to help Team Europe actors better integrate redistributive objectives into infrastructure projects;
- Better tracking of distributional impacts: using inequality-specific indicators, the Facility will help strengthen the monitoring and analysis of the impacts of Global Gateway investments on different population groups.
This applied research work and practical tools will help the European Union and its Member States make informed, evidence-based investment decisions that integrate inequality-reduction objectives into their external action, in line with the Global Gateway strategy. By taking inequality in consideration at every stage of the investment process, the Facility will help ensure that Global Gateway investments are more inclusive and better targeted towards the most vulnerable – including the bottom 40% of the population.
Key Documents
Watch the replay of the final event of the Extension
Bridging Divides: Evidence-Based Policies for Inequality Reduction and Sustainable Development
International conference of the EU-AFD Research Facility on Inequalities