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I Information

Court of Auditors

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SPECIAL REPORT No 4/2005

concerning the Commission’s management of economic cooperation in Asia, together with the Commission’s replies

(pursuant to Article 248(4), second subparagraph, EC)

(2005/C 260/01)

CONTENTS

GLOSSARY OF ACRONYMS

The Commission’s replies

GLOSSARY OF ACRONYMS

EXECUTIVE SUMMARY

INTRODUCTION

Background and description of the domain

Table 1

Budget lines

Table 2

Share of projects identified as economic cooperation per country

The audit scope and approach

Table 3

Share of approved Asia-wide projects per country 2002

Table 4

Bilateral and other regional projects visited during the audit

Table 5

Bilateral projects audited compared to total number of projects

Table 6

Asia-wide projects audited compared to total number of projects

Table 7

Asia-wide projects audited during the audit

OBSERVATIONS

Is there an effective strategy for economic cooperation in Asia?

Broad strategy, against a fast changing background ...

... inadequate objectives and indicators in the activity statement ...

... leads to a wide variety of projects and programmes whose performance is difficult to measure

Has the Commission managed the implementation of economic cooperation activities effectively?

Bilateral projects

Delays in approving and setting up projects

Projects delayed and sometimes abandoned ...

... reducing outputs and impact

Monitoring not always satisfactory

Sustainability in doubt

Evaluations lacking

Asia-wide projects

Application procedure heavy and complex

Projects gave positive results ...

... and were well monitored ...

... but sustainability still in doubt

CONCLUSIONS AND RECOMMENDATIONS

Conclusions and recommendations on strategy

Conclusions and recommendations on implementation

This report was adopted by the Court of Auditors in Luxembourg at its meeting of 14 July 2005.

For the Court of Auditors

Hubert WEBER

President

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(1)Source: European Commission, Strategy Paper and Indicative Programme for multi-country programmes in Asia 2005-2006, page 11 (August 2004).

(2)  Council Regulation (EEC) No 443/92 of 25 February 1992 on financial and technical assistance to, and economic cooperation with, the developing countries in Asia and Latin America (OJ L 52, 27.2.1992, p. 1).

(3)  Following the introduction of Activity Based Management by the Commission, relations with Asia are now grouped under Activity 19 10, separated into: 19 10 01 Financial and technical cooperation with Asian developing countries; 19 10  02 Political, economic and cultural cooperation with Asian developing countries; 19 10 03 Aid to uprooted people in Asian countries; 19 10 04 Rehabilitation and reconstruction operations in developing countries in Asia; 19 10 06 Aid for the rehabilitation and reconstruction of Afghanistan.

(4)  The Association of South-East Asian Nations. The 10 members are Indonesia, Malaysia, Philippines, Singapore, Thailand, Brunei, Vietnam, Laos, Burma/Myanmar and Cambodia.

(5)  Estimated from data collated from a variety of sources including Delegations’ websites, country strategy papers, etc. The Commission’s management information systems, CRIS, did not include this information.

(6)  Other programmes are the Asia Urbs programme, promoting networking and cooperation among local authorities between EU and Asia; the Asia Link programme, promoting networking and exchanges among universities in the two regions; and the Asia ProEco programme, promoting partnerships in the field of the environment.

(7)  These programmes are co-financed so actual programme value is higher.

(8)  As specified in the Financing Proposal, approved on 18 June 1998.

(9)  Seen at preliminary study only.

Source: Court of Auditors.

(10)  Asia Invest: the projects of the components Asia Interprise have not been taken into consideration.

Source: Court of Auditors.

(11)  COM(94) 314 final, 13 July 1994.

(12)  COM(2001) 469 final, 4 September 2001.

(13)  Commission Working Document of May 2004 accompanying the Preliminary Draft General Budget of the European Commission for the Financial Year 2005.

(14)  Completed by ‘Reinforcement of the multilateral approach to Asia security issues, global economic regulation (i.e. WTO and global financial regulation), and inclusion of a cultural dimension’.

(15)  In theory priority areas of intervention are identified through the Country Strategy Paper process in collaboration with the partner country. Once an area has been identified the Commission hires contractors to carry out a feasibility study, as a result of which a financing proposal will be prepared which will propose a project and how it should be carried out. Projects above EUR 1 million are approved by the ALA Committee, composed of representatives of the Member States.

(16)  The Commission’s Communication on Evaluation (SEC(2000) 1051).

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THE COMMISSION’S REPLIES

EXECUTIVE SUMMARY

OBSERVATIONS

CONCLUSIONS AND RECOMMENDATIONS

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