Exumbran Development Commission (EDC)
The Exumbran Development Commission (EDC) is a commission of the Exumbran Convention founded by the Agreement on the Exumbran Development Commission, which entered into force with the Treaty of the Exumbran Convention, and which thereafter came to be known and treated as the Exumbran Council Regulation on the Exumbran Development Commission (ECR.EDC). ECR.EDC regulates purpose, funding, organization, and key procedures of the EDC. The main purpose of EDC is to fund projects for economic development in member states with below average development, in accordance with the third objective of the Exumbran Convention as mentioned in article 2 of its founding treaty.
EDC consists of an Executive Committee (EDC-EC) and an Advisory Board (EDC-AB).
The EDC budget is the EDC Budget Rate (DBR) multiplied with the sum Average Product Difference (APD) of member states, provisionally estimated at half a billion US$ in 2013.
Currently, the EDC Budget Rate (DBR) is set at 0.2%.
The budget of the office of the Commission and its Executive Committee is 1 mln US$ per year. (The host country is expected to arrange suitable part time positions for EC members at an university close to the Commission office.)
Members of the Advisory Board receive a yearly fee of 5000 US$, which costs an approximate 0.1 mln US$ per year.
The other 99.8% of available funds are used for subsidies (see below).
Average Product Difference (APD)
For any member state X with a GDP below Exumbran average (total Exumbran GDP divided by total Exumbran population), Average Product Difference (APD) is:
APDX = ( GDP/capitaExumbran.average − GDP/capitaX ) × population.sizeX
APD of a member state with a GDP above the Exumbran average is 0 (zero).
ΣAPD or 'sum APD' is the sum total of the APD of all member states.
The Target Distribution of Funds (TDF) is a loose target for the long-term average distribution of EDC funds among member states. The Commission can deviate from this distribution significantly, but may need Council approval for some deviations (see below).
The Target Share of Funds (TSF) for any member state is the EDC Budget Rate (DBR) multiplied with its APD (which is equal to APDX divided by ΣAPD, then multiplied with the total EDC funds available).
TDF is the list of TSFs for all eligible countries:
|Kpwahele & Nɣurumba||1,667,002||.3%|
Any governmental body in/of a member state (national, regional, local) can file a request for EDC support if the average GDP/capita in its area of jurisdiction is below the average GDP/capita of all inhabitants of the member states.
There is a points system for support requests, where the larger the number of points a request has, the larger its chance of acceptance:
- 1 point per relevant co-requesting governmental body, divided by the total number of governmental bodies with relevant jurisdiction, then multiplied by 2. (If the project is in city 'A', which is in region 'B' in country 'C', and the governments of A, B, and C co-request subsidy for the project, then that results in 3 points divided by 3 (assuming that there are no other relevant governments), then multiplied by 2: 3/3*2=2.)
- 1 points if the project is supported by research done by the national EIDI.
- 3 points if the project is supported by research done by an EIDI in another member state.
- 3 points if the requesting country receives less than one third of its Target Share of Funds (TSF) in the relevant period.
Advisory Board (EDC-AB)
EDC-AB consists of at least 15 and at most three times as many members as there are member states. Every member state must be represented by at least one Board member. The Board selects and appoints members by co-option, but candidates may be suggested by the Executive Committee. These and all other Board procedures normally proceed through email. (In normal circumstances, Board members do not (ever) have to meet.)
Board members are selected and appointed to increase the overall knowledge and expertise of the Board. At the very least, Board members represent the following academic disciplines: development economics, economic growth theory, economic geography, and economic history. Within these fields, both mainstream and main alternative theories and approaches are represented.
Executive Committee (EDC-EC)
EDC-EC consists of 3 members appointed by the Exumbran Council after having obtained majority approval from the Advisory Board.
All requests for EDC support are received and managed by EDC-EC.
If the requested subsidy exceeds 100 million US$, then the Exumbran Council decides after having heard the advice of the EDC-EC and of the Exumbran Parliament. If the requesting country receives less than two-thirds of its Target Share of Funds (TSF) in the relevant period and/or the requested subsidy is less than 10 million US$, then the EDC-EC decides on granting the subsidy or not according to the procedure outlined below. In other cases, the Council decides having heard the advice of the EDC-EC and of the Parliament. The procedures for Council advice and for decision are identical.
Having received a request, the EDC-EC selects an appropriate number of experts from the Advisory Board (at least 3) to referee the request. This number of referees can be smaller if the request is for a small subsidy, if it is expected to be uncontroversial, and/or if it has many points (see above), but must be larger otherwise. If all judgments are positive, the request is accepted. If there is disagreement between the referees, then the request will be sent to all Advisory Board members. If in such a case, after sufficient time for exchange of opinion and discussion, a majority of Board Members votes in favor of the request, it is accepted.
(to be added)