COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 29.01.1998 
COM(1998) 40 final 
Report on financial and technical assistance to, and economic co­
operation with the developing countries in Asia and Latin America, as 
covered by the Council Regulation (EEC 443/92) of 25 February 1992 
(O.J. L52, 27.02.92, p1) 
(presented by the Commission) 

PREAMBLE^. 
THE STRUCTURE OF THE REPORT. 2 
1. ECONOMIC AND SOCIAL DEVELOPMENTS IN ASIA AND LATIN AMERICA. 
1991-1995 3 
1.1. OVERVIEW 3 
1.2. ASIA 5 
1.3. LATIN AMERICA ll 
2: EUROPEAN COMMUNITY (EC) DEVELOPMENT CO-OPERATION WITH THE 
ASIAN AND LATIN AMERICAN COUNTRIES . 17 
2.1. GENERAL OVERVIEW OF POLICY 17 
2.1.1. THE POLICY FRAMEWORK FOR ASIA 17 
2.1.2. THE POLICY FRAMEWORK FOR LATIN AMERICA 17 
2.2 EVOLUTION OF ALA COOPERATION, 1991-1995 18 
2.3. THE ALA REGULATION N° 443/92 OF 25 / 2 / 1992. 21 
2.4. ASSOCIATED BILATERAL CO-OPERATION AGREEMENTS AND MULTILATERAL RE­
LATIONS. 23 
3: THE DETAILS OF COMMUNITY CO-OPERATION WITH ASIA AND LATIN 
AMERICA, 1991 TO 1995. 25 
3.1. GENERAL QUANTITATIVE OVERVIEW OF COMMUNITY COOPERATION 25 
3.2. QUALITATIVE COMMENTARY: FINANCIAL AND TECHNICAL COOPERATION AND 
ECONOMIC COOPERATION 29 
3.2.1. ASIA 29 
3.2.2. LATIN AMERICA 30 
4. CONCLUDING POINTS. 32 
NOTES TO TABLES 33 
Report on financial and technical assistance to, and economic co­
operation with the developing countries in Asia and Latin America, as 
covered by the Council Regulation (EEC 443/92) of 25 February 1992 
(O.J. L52, 27.02.92, p1) 
Preamble. 
The purpose of this report is to respond to an obligation set down in the Council Regula­
tion of 25 February 1992 (EEC 443/92) en 'financial and technical assistance to, and 
economic co-operation with, the developing countries in Asia and Latin America'. In 
particular article 16 of the Regulation requires that; 
' at the end of each five year period1 the Commission shall submit a compre­
hensive report giving the results of the regular evaluation undertaken to show not only 
how the projects and programmes have been implemented but also the advisability of 
maintaining or amending the aid guidelines. ' 
In response to a request of the Council made on 1 June 1995, the Commission has already 
commenced work on a substantial and comprehensive evaluation of the European Com­
munity's development co-operation with those countries covered by the Lomé convention 
(ACP) and the developing countries of Asia, Latin America and the Mediterranean 
(ALAMED). As the Council has already been informed, the Commission has committed 
itself to make the report on this evaluation exercise available to the Council in the course of 
1998. 
The present report in no way anticipates, nor is it in any sense to be construed as a prelimi­
nary version of this more extensive and comprehensive evaluation exercise. Rather the pur­
pose of this document is to provide a factual presentation of the Community's assistance 
to, and co-operation with, the Asian and Latin American (ALA) countries covered by the 
Regulation cited above, for the first five years of its operation (1991-1995) in the context 
of the social and economic developments that have occurred in the ALA countries during 
that period. However to ensure consistency and coherence this report draws heavily upon 
the same body of basic data used in the evaluation exercise, in particular as regards the 
commitments and disbursements of concessional development co-operation finance to the 
countries of Asia and Latin America. 
These data present various analyses of all the forms of aid taken together to the ALA 
countries, not only those covered by Regulation 443/92. As a result of this wide coverage, 
the data only permit a relatively broad judgement to be made as to how the development 
co-operation funds covered by the Regulation have been committed and disbursed, and the 
extent to which the requirements of the Regulation have been met. Thus it will be recalled 
that the Regulation, whilst it makes a general statement of Community development co­
operation policy, and indeed is the only legal text establishing a general framework for co­
in this case the period 1991 to 1995 inclusive. 
I* 
operation with the ALA countries, provides the legal basis for the operation of four Budget 
lines. These are B7-3000 and B7-3001 for Asia, and B7-3100 and B7-3110 for Latin 
America, the first in each case covering Financial and Technical Assistance, the second 
Economic Co-operation. Total commitments made under these four Budget lines are avail­
able and are presented in the Annexes to this report. However, a detailed analysis of such 
commitments is not available and this limitation makes the present assessment of the ac­
tions undertaken with the resources attributed to these Budget lines, based on data with a 
wider coverage, at best, approximate. 
It is also important to recall that the Regulation covers assistance and co-operation with 
China and Macao, Iran, Iraq and the Yemen. The tables that form an integral part of this 
report make allowance for this coverage. 
The Structure of the Report. 
The main part of this report has three major sections of which the first consists of a de­
scription of social and economic developments in the relevant countries of Asia (South and 
South East Asia and China - subsection 1.2) and Latin America (sub section 1.3) during the 
reference period and highlights the differing development experiences of these regions. 
Section 2 outlines the principles underlying Community development policy and examines 
the extent to which these have been given operational meaning through the Regulation. 
Section 3 examines the commitments and disbursements of official development assistance 
(ODA) - drawn from the Community's regular annual budget - made by the Commission 
during the reference period under the principal headings. The report ends with a short con­
cluding section. 
1. Economie and Social Developments in Asia and Latin America, 
1991-1995 
1.1. Overview 
Table 1.1.1: Basic Data 
Total population (mill., 1994) 
Population growth (% annually, 1980-95) 
Growth of GDP (annual average, % 1990-95) 
Growth of GNP p.c. (annual average, %, 1985-95) 
Debt service ratio (% exports, 1995) 
Under 5 mortality rate (per '000 live births, 1995) 
Income share of the lowest quintile (% 1990s) 
Poverty Gap (% 1993) 
Illiterate population (mn) 
Carbon Dioxide emissions (tonnes per capita, 1992) 
Total Carbon Dioxide emissions (Million tonnes, 
1992)b South Asia East Asia Latin America 
1,270.0 1,761.8 463.9 
2.1 1.5 1.9 
4.6 10.3 3.2 
2.9 7.2" 0.3 
24.6 12.8 26.2 
106 53 47 
8.8 6.9 4.5 
12.6 7.8 9.1 
416 210 43 
0.7 2.1 3.4 
1,625 870 2,251 
1. Data for Latin America includes Caribbean 
2. Data for East Asia covers South East Asia which includes Vietnam, Cambodia, Laos, and China. 
Source: World Bank- World Development Indicators, 1997, World Development Report 1997 
a: East Asia includes Pacific, b: It should be noted in respect of global carbon dioxide emissions; that national totals of 
carbon dioxide emissions are of limited analytic relevance because they depend on both population size and the level 
of industrial activity. Per capita emissions provide a better yard stick for comparing the emissions that result from the 
average individuals share of national industrial activity. UNEP World Resources, 1996-97, p. 314. 
Asia has enjoyed relatively high rates of economic expansion in recent years (see Table 
1.1.1). The South Asian economies, for instance, have expanded at an average annual rate 
of 4.6 percent in real terms during the reference period. Though the region still has the 
highest share of the population in poverty in the world, nonetheless partly as a result of 
relatively strong growth, the share of poor in the population diminished from 45% to 43%. 
Human poverty, reflected by social indicators, is however still widespread: more than 50% 
of under-five children in South Asia are underweight, and only 48% of adults are literate. 
South East Asia has experienced much higher growth rates in the reference period. In 
substantial measure these growth rates reflect the growing integration of the developing 
countries economies into the mainstream of world trade, and in particular those of South 
East Asia, and the rapid development of their exports and imports (see Tables 1.1.2 and 
1.1.3). Nevertheless in a number of countries the institutional and structural basis on which 
rapid growth and development have been built has shown important weaknesses: lack of 
effective regulation and control over the economy by the government in general and within 
the financial sector in particular, insufficient attention given to the impact of growth on the 
environment, and in some cases insufficient efforts in education so as to upgrade produc­
tivity as wage differentials increase vis-a-vis China and Vietnam, Cambodia and Laos. 
As regards Vietnam, Cambodia and Laos, in Vietnam the results of the liberalisation pro­
gramme, launched at the end of the nineteen eighties, have been positive. The growth of 
GDP in real terms averaged 8.3 percent in the period 1990-1995. Despite the loss of East­
ern European markets, exports boomed, reflecting the expansion and diversification of the 
economy Over the period 1992 to 1995 the average annual growth in exports was in the 
order of 30 percent. Cambodia, with a population of 9 million (roughly double that of 
Laos) lags behind its smaller neighbour economically. GDP per capita in Cambodia is esti­
mated to have been US $270 in 1995 compared to US $350 in Laos. 
Nowhere has economic growth been more pronounced than in China. China has moved on 
from the events of Tiananmen Square and continued to implement economic reforms begun 
after Deng Xiaoping's rise to power in 1978. By the end of the reference period China was 
the Community's fourth largest and fastest growing trading partner. 
Table 1.1.2: Imports of the EU(12) from Latin America and East-, South- and South-
East Asia, 1992-1995, Ecu bn. 
1992 1993 1994 1995 
Latin America 
South Asia 
ASEAN 
China 
Memorandum 
item 
Total Elf im-24.6 
8.0 
21.9 
16.8 
487.1 22.1 
9.4 
25.5 
19.6 
493.2 27.0 
10.9 
29.8 
22.7 
543.2 29.2 
11.7 
32.2 
24.8 
575A 
Source: European Commission. The European Union and World Trade, 1996. a: Extra EU 
Latin America has recorded improved but average rates of growth over the period to 
1995 and a significant expansion of exports to, and imports from, the EU (see tables 1.1, 
1.2 and 1.3). Indeed, Latin America today is looking back at a decade of major changes and 
far-reaching political and structural reforms which have substantially transformed most 
countries and strengthened their economic performance. Yet important as these recent 
changes have been, they have not yet been fully translated into a substantial improvement in 
social development based on stronger economic performance so enabling a more equitable 
distribution of income and wealth to be achieved. The region is the only region in the de­
veloping world besides Sub-Saharan Africa where the incidence of poverty (according to 
the head-count measure) has actually increased over the period 1987-1993 (from 22% to 
23.5%). 
Table 1.1.3: Exports of the EU to Latin America and East-, South- and South-East 
Asia, 1992-1995, Ecu bn. 
1992 1993 1994 1995 
Latin America 
South Asia 
ASEAN 
China 
Memorandum 
item 
Total Elf im­20.5 
7.9 
19.3 
6.9 
436.1 24.1 
9.4 
23.2 
11.3 
491.1 29.0 
10.5 
27.8 
12.5 
541.8 
ports 
Source: European Commission. The European Union and World Trade, 1996. a: Extra EU 30.5 
12.2 
33.2 
13.1 
589.7 
liiliilll! •Ill 
1.2. Asia 
Progressively the European Union has conducted its bilateral co-operation with the major­
ity of countries and regions of Asia, as elsewhere, in the framework of Trade and Co­
operation Agreements. In addition to the principles and approach set out in the ALA 
Regulation (443/92) to which this report is addressed, the EU's general objectives, as re­
gards all aspects of policy including development co-operation, have most recently been set 
out in the Commission's communication "Towards a New Strategy in Asid\ [COM (94) 
314]. These include contributing to sustainable development and poverty alleviation in the 
least prosperous countries of Asia, pursuing all actions necessary to ensure open markets 
and a non-discriminatory business environment conducive to an expansion of Euro-Asia 
trade and investment, and supporting efforts by Asian countries to co-operate at the re­
gional and sub-regional level. 
The countries of South Asia (with the exception of Sri Lanka), experienced a certain de­
celeration in their rates of economic growth over the period 1990-95 (see table 1.2.1). In 
India, the dominant economy in the region, political uncertainty slowed the implementation 
of the far reaching reforms introduced in 1991; nonetheless substantial progress has been 
achieved and by 1995 the fiscal and balance of payments deficits had been reduced, infla­
tion had fallen and foreign exchange constraints had been eased. Direct foreign investment 
has risen steadily to reach US $620 million in 1994. 
South Asia's record on resource mobilisation in the reference period was somewhat mixed. 
In India the ratio of domestic savings to GDP has been relatively weak at approximately 20 
percent over much of the period and has impeded investment in much needed infrastructure 
and other capital projects. Pakistan, with a savings to GDP ratio which varied between a 
high of 17.3 percent in 1992 to lows of 13.2 percent in 1991 and 1993, fared even worse in 
its efforts to mobilise domestic savings. 
In most South East Asian countries, economic expansion has been particularly rapid dur­
ing the reference period with high rates of economic growth, varying between 8.7 percent 
in Malaysia and Singapore to 7.6 percent on average annually in Indonesia, being sustained. 
The Philippines alone proved an exception to this general pattern of rapid economic 
growth. However, the reforms introduced in that country had begun to take effect in the 
latter part of the reference period and GDP per capita in the Philippines rose sharply in the 
mid nineties, unemployment fell and inflation was contained at single digit figures. Domes­
tic savings in the economies of this region have been relatively buoyant (only in the Philip­
pines did savings to investment ratios fall below the mid thirties and in Singapore they 
ranged between 45 percent in 1995 to 48 percent in 1994) and, in addition, a strong inflow 
of funds from abroad have boosted capital formation. 
In Vietnam, Cambodia and Laos, economic growth and increases in foreign investment 
have been recorded. In Vietnam, both export and import growth have benefited from the 
liberalisation of the foreign trade and investment regime and from freer access to Vietnam 
for non nationals. Foreign investment, though modest by South East Asian standards, has 
been increasing rapidly. Since the Foreign Investment Law was enacted in 1988 (and fur­
ther liberalised in 1992) the flow of direct foreign investment has been mounting steadily to 
reach US $1.8 billion by 1995 and US $2.3 billion by 1996. The experience of the smaller 
Indo-Chinese nations has been similar. Laos sustained an average annual economic growth 
rate of 6.5 percent in real terms during the first half of the nineties, whilst that of Cambodia 
was 6.4 percent during the same period. 
The Chinese economy is the world's tenth largest, using traditional GNP data; if the more 
technically meaningful purchasing power parity measure of GNP is applied China ranks as 
the world's fourth largest economic power. Its economy grew at a near record rate in 1992 
and 1993 when the annual rate of economic expansion topped 13 percent. Rising inflation, 
physical bottlenecks and institutional weaknesses struck at the sustainability of these 
growth rates and necessitated a more cautious approach. Real growth dropped to 10 per­
cent in 1995 and slid back further to an estimated 8.5 percent last year largely as a result of 
tight fiscal measures initiated to counter inflationary trends. At the same time inflation 
which had reached 21 percent in 1994 dropped to 15 percent in 1995. 
Table 1.2.1 Growth of GDP 
Average annual rate of growth (percent) 
1980-90 1990-1995 
South Asia 
Bangladesh 4.3 4.1 
India 5.8 4.1 
Pakistan 6.3 4.6 
Sri Lanka 4.2 4.8 
South East Asia 
Indonesia 6.1 7.6 
Malaysia 5.2 8.7 
Philippines 1.0 2.3 
Singapore 6.4 8.7 
Thailand 7.6 8.4 
Vietnam ... 8.3 
China 10.2 12.8 
Source: World Bank - World Development Indicators, 1997 China is rapidly integrating 
with global capital markets, and 
is absorbing an increasing share 
of cross border financial flows 
to developing countries. The 
World Bank estimates that cur­
rently 40 percent of foreign di­
rect investment, 10 percent of 
international equity funds and 5 
percent of international bond 
flows to the developing nations 
are directed to China. China's 
foreign trade recorded a US $16 
billion surplus last year with ex­
ports up by 3 percent to US 
$153 and imports rising 4 per­
cent to US $137 billion; by the 
end of the reference period 
China was the European Un­
ion's fourth largest and fastest 
growing trading .partner. De-
spite a relatively depressed operating environment realised foreign investment rose from US 
$38 billion in 1995 to US $40 billion last year. In a recent (September 1997) report the 
World Bank predicts that as the current stabilisation programme takes effect it is expected 
that the inflow of foreign investment will again accelerate to the record levels of the early 
1990s and that China will revert to its status as one of the leading destinations for foreign 
direct investment by the end of the decade. The Bank expects that by the year 2,000 China 
will account for as much as 40 percent of the increase in the developing countries exports 
in the current decade. By the year 2020 the Bank estimates that China may triple its share 
of world trade to 10 percent, becoming the world's second largest trading nation after the 
United States. 
Demographic indicators reflect the changing structures of Asian society. The fertility rate in 
India, measured by births per woman fell from 5 in 1980 to 3.2 by 1995; in Bangladesh 
births per woman dropped from 6.1 in 1980 to 3.5 by 1995 whilst in Pakistan the corre­
sponding figures were 7 and 5.2. South East Asia's fertility indicators, lower at the outset, 
registered less striking declines - from 4.2 to 3.4 in the case of Malaysia and 3.5 to 1.8 in 
the case of Thailand. Only in the Philippines and in Indonesia were rates of fertility ap­
proximating to those of South Asia recorded. Population momentum, an indicator which 
reflects the proportion of young people in a given population, has remained high in both 
regions. 
Table 1.2.2 Demographic Indicators 
South Asia 
Bangladesh 
India 
Pakistan 
Sri Lanka 
Total (1994) 
South East Asia 
Indonesia 
Malaysia 
Philippines 
Singapore 
Thailand 
Vietnam 
Total (1994) 
China 
Source: World Bank Population 
(million, 1995) 
120 
929 
130 
18 
1.270.0 
193 
20 
69 
3 
58 
73 
478.8 
1200 Population 
growth 
(average annual % 
rate 1995-2010) 
1.5 
1.3 
2.5 
1.1 
1.8a 
1.3 
1.8 
1.8 
1.0 
0.7 
1.6 
1.6a 
0.8 
y"" Urban Population 
(Largest city - growth rate % 
1990-1995) 
5.7 
4.2 
4.3 
4.4 
2.0 
3.1 
1.0 
2.2 
1.9 
2.3 Population 
Momentum 
(base=1995) 
1.6 
1.4 
1.6 
1.4 
1.4 
1.6 
1.5 
1.2 
1.4 
1.6 
1.3 
- World Development Indicators, 1997. UNDP Human Development Report 1997 a: 1994-2000 Life 
Expectancy 
(1994 -years) 
56.4 
61.3 
62.3 
72.2 
61.3 
63.5 
71.2 
67.0 
77.1 
69.5 
66.0 
64.3 
68.9 
Population momentum is the ratio of the population at zero growth to the population in the base year, 
assuming that the replacement fertility rate is maintained. It refers to the phenomenon whereby in a situa­
tion of zero actual population growth, the movement of large cohorts of women of reproductive age through 
the age pyramid nonetheless generates more births than are offset by deaths in the older cohorts. For high 
income countries the equivalent measure of population momentum is 1.1. The same figure applies to East­
ern Europe. 
Standard poverty indicators such as under five mortality, access to clean water and to 
sanitation, all pointed to improved living conditions. By the mid nineties, 81 percent of In­
dia's population had access to clean water and 29 percent had access to sanitation; for 
Pakistan the figures were 74 and 47 percent respectively. 
In countries of South East Asia these indices have shown such marked improvements that 
they are no longer an issue. 96 percent of Thais and 84 percent of Malaysians had access to 
sanitation; even in the less prosperous countries, Indonesia and Philippines, the figures 
were 51 and 77 percent respectively. Summary indicators such as the commonly cited 
World Bank upper poverty line (US $1 per day) headcount index reflected an improve­
ment, particularly in South East Asia. 
Table 1.2.3.: Poverty and income distribution 
Asia 
China 
India 
Bangladesh 
Pakistan 
Indonesia 
Philippines 
Malaysia 
Thailand 
Vietnam Poor 
(< ISPPPperday, 
%)1981-95 
29.4 
52.5 
11.6 
14.5 
27.5 
5.6 
0.1 Gini index 
41.5(1989)b 
33.8 (1992)b 
28.3 (1995)b 
32.1 (1992)b 
31.7 (1993)b 
40.7 (1988)b 
48.4 (1989)b 
46.2 (1992)b 
35.7 (1993)b Although just over 52 percent of the 
Indian population and 29 percent of 
the Bangladeshi population had to 
do on less than US 1$ per day in 
1993, in South East Asia only the 
Philippines recorded equivalent pov­
erty levels. Elsewhere poverty levels 
varied between 15 ^ percent of the 
population in Indonesia and 6 per­
cent in Malaysia. 
Source: UNDP -Human Development Report 1997, World Bank -World 
Development Report 1991a: Source: World Bank, Poverty Reduction and 
the World Bank: Progress and Challenges in the 1990s. May 1996. Data refer 
to 1993. b: survey year 
Health indicators too improved. The under five mortality rate had reached 115 per 1,000 
live births in India and Bangladesh by the mid nineties whilst in Pakistan it was down to 
137; at the beginning of the decade 
Table 1.2.4 Health: People per Physician 
South Asia 
Bangladesh 
India 
Pakistan 
Sri Lanka 
South East Asia 
Indonesia 
Malaysia 
Philippines 
Singapore 
Thailand 
Vietnam 
China 1980 
8424 
2694 
3500 
7172 
12458 
3917 
7848 
1111 
6803 
4151 
1100 1993 
12844 
2459 
1923 
6843 
7028 
2441 
8273 
714 
4416 
2279 
1063 the comparable figures were 142 
and 180 respectively for India and 
Bangladesh and 158 for Pakistan. 
In the less prosperous South East 
Asian countries - Indonesia and the 
Philippines under five mortality in 
the mid nineties were 36 and 53 
respectively. The numbers of health 
personnel per citizen likewise 
showed a marked increase region 
wide. Bangladesh proved an ex­
ception to a general rule where the 
number of people per physician 
rose from 8,424 in 1980 to 12,884 
Source: World Bank - World Development Indicators, 1997 g 
by 1993. South East Asia's ready access to health care is reflected in people to physician 
ratios - for Malaysia the figure dropped from 3,917 in 1980 to 2,441 by 1993 whilst in 
Thailand the figures were 6,803 in 1980 and 4,416 in 1993. 
In Vietnam, Cambodia and Laos the cumulative effects of prolonged civic strife and heavy 
diversion of resources to the security sector is reflected in diminished living standards for 
the greater part of the population. Cambodia ranks 148 in the UNDP Human Development 
index and Laos 141, significantly below Vietnam at 115. Life expectancy in Cambodia is 
49.7 years (51.7 years in Laos), compared with 62.7 years in Vietnam. Mean years of 
schooling in Cambodia are 2.0 compared with 2.9 in Laos and 4.6 in Vietnam. 13 percent 
of Cambodia's population have access to sanitation compared to 53 percent in Vietnam. 
The infant mortality rate is 120 per thousand live births in Cambodia compared to 101 in 
Laos and 59 in Vietnam. 
China's high economic growth rates have been accompanied by a massive reduction in 
poverty; between 1991 and mid 1995 the number of rural people living in absolute poverty 
fell from 94 million to 65 million. Today absolute poverty in China is almost exclusively 
rural phenomenon and tends to affect whole communities rather than particular individuals. 
It is largely concentrated in the interior provinces of the relatively inhospitable north and 
south west, where infant mortality and other poverty indicators remain high relatively to the 
more prosperous coastal and north eastern regions. Largely as a consequence of innovative 
rural development programmes, rural incomes depend to a decreasing extent on farming. 
There are currently more than 18 million rural and village enterprises employing some 95 
million former agricultural labourers and generating almost a third of industrial output. The 
income flowing from these industries has boosted the self image of the rural communities 
and, perhaps more concretely, their living standards 
Table 1.2.5: Gender and Education: Primary Educa- Progress in breaking down 
tion: Percent of Female Pupils gender barriers has been 
v _ s , uneven. Whilst the coun-
1980 1993 tries of South East Asia 
have made important ad­
vances in this domain, the 
role of women in South 
Asia leaves some scope for 
development. Women's 
opportunities to participate 
actively in economic and 
communal life are limited. 
Many of South Asia's 
women are under-skilled 
and their labour force par­
ticipation is restricted to 
the non-formal, low paid 
production sector. Lack of 
access to formal education, 
in part attributable to a shortage of female teachers in rural areas, creates a situation in 
which women, and particularly women of rural origin, are effectively excluded from the 
formal labour market. Female executives are few in Bangladesh - a mere 2 percent of the South Asia 
Bangladesh 37 
India 39 43 
• Pakistan 33 31 
Sri Lanka 48 48 
South East Asia 
Indonesia 46 48 
Malaysia 49 49 
Philippines 49 50 
Singapore 48 
Thailand 48 49 
Vietnam 47 
China 45 47 
Source: World Bank- World Development Indicators, 1997 
nation's total administrative and managerial staff are female compared to 2.3 percent in In­
dia, 3.4 percent in Pakistan, and 7 percent in Sri Lanka. These figures contrast sharply with 
those for South East Asia. In Singapore and the Philippines some 34 percent of managerial 
and administrative positions were held by female staff whilst women in Indonesia and Ma­
laysia accounted for 63 and 45 percent of professional and technical workers. 
Official development aid accounted for a relatively minor part - 10 percent- of the inflow of 
external resources to the developing countries of South East Asia in 1994, and for 3.6% of 
GNP. In the case of South Asia the volume of official development assistance accounted 
for slightly less than half (or 46 percent) of total net resource inflows from abroad, and for 
about 2% of GNP (US$ 7 bn.). Net private capital flows to South Asia reached US$ 5.2 
bn. in 1995, of which US$ 1.8 bn. were FDI. East Asia (including China), in comparison, 
received a total of US$ 84 bn. in 1995, US$ 51.8 bn. of which were in the form of FDI. 
East Asia received US$ 9 bn. in ODA in 1994, equal to 1.1% of its GNP. The EC's assis­
tance to China during the reference period was concentrated in the agriculture sector. Proj­
ects were agreed to promote improved productivity and technology transfer. In 1995, the 
final year of the reference period, priority shifted to human resource development and sup­
port to China's reform and liberalisation programme, business co-operation and the envi­
ronment. 
10 
1.3. Latin America 
Table 1.3.1: Basic economic Indicators 
Population, GDP, GNP 
mill. bn.$ p.c, $ 
1994 1994 
Latin America 
Brazil 
Argentina 
Chile 
Mexico 
Ecuador 
Nicaragua 
Source: UNDP Human Development Report 1997 1994 
463.9 1,549.0 3,188 
156.9 554.6 2,970 
34.3 281.9 8,110 
14.0 52.0 3,520 
89.6 377.1 4,180 
11.2 16.6 1,280 
4.0 1.8 340 Latin America is not a homoge­
nous entity, but includes coun­
tries at very different levels of 
social, economic and political de­
velopment. Income p.c. ranges 
from $340 in Nicaragua, one of 
the poorest and least advanced 
countries in the world, to more 
than $ 8.000 in Argentina. These 
differences have to be kept in 
mind when looking at the devel­
opment of Latin America over 
the last decade. Thus the tables in 
this section present data for a 
representative selection of Latin 
American countries. 
Most Latin American countries have shared a number of problems, such as widespread 
poverty, unequal income and wealth distribution, and high levels of external debt. Nonethe­
less despite the liberalisation undertaken, markets in many countries still remain distorted 
and uncompetitive due in particular to state intervention and oligopolistic market struc­
tures. This has made it difficult, in many cases, for natural resource based development to 
be complemented by the strengthening of the manufacturing and service sectors. 
Table 1.3.2: External debt 
Latin America 
Brazil 
Argentina 
Chile 
Mexico 
Peru 
Nicaragua 
Source: World Bank GNP 
1980 
36.0 
31.2 
35.6 
45.5 
30.5 
47.6 
108.5 
- World Devel External debt 
1995 
41.0 
24.0 
33.1 
43.3 
69.9 
54.1 
589.7 
opment Rq as % of 
exports of good 
services 
1980 
wrtl997 201.8 
306.5 
242.4 
192.5 
232.4 
194.2 
426.5 s and 
1995 
212.0 
269.8 
320.2 
127.7 
170.5 
399.5 
1,272.7 Debt service as % 
goods 
1980 
36.3 
63.3 
37.3 
43.1 
44.4 
44.5 
22.3 of exports of 
and services 
1995 
26.1 
37.9 
34.7 
25.7 
24.2 
15.3 
38.7 
Even though debt levels are still high, growth of debt has now slowed down in many coun­
tries, reflecting the positive impact of Brady debt relief programmes. The strong increase in 
exports, together with a fall in interest rates has brought down the debt-service ratio to 
somewhat more manageable levels. In particular a number of countries, most noticeably 
Brazil, have managed to reduce substantially their debt-to-exports and debt-to-GNP ratios. 
11 
However, the debt crisis of the 1980s proved to be a catalyst for reforms and démocratisa­
tion which led to improved economic performance. The economic reforms undertaken in 
recent years by almost all countries have three major elements: 
Macroeconomic stabilisation: The main objective was to lower inflation. This was 
achieved throughout the region through a combination of sound fiscal and monetary poli­
cies. Annual inflation in Latin America has fallen from almost 900% per year in 1993 to 
26% in 1995 (see table 1.3.3 below, based on UN data). Another cornerstone of macro-
economic stabilisation has been fiscal adjustment. Most countries in the region have re­
duced significantly their fiscal deficits, whilst still experiencing pressures and problems re­
sulting from inefficiencies in tax collection and the management of public expenditure 
which could compromise medium- and long-term macroeconomic stability. In particular 
many Latin American countries have large and inefficient bureaucracies and face problems 
of corruption. 
Trade liberalisation: Over the past decade most Latin American countries have unilater­
ally liberalised trade, partly within the framework of the Uruguay Round negotiations and 
partly within the context of World Bank and International Monetary Fund-sponsored 
structural adjustment programmes. Average applied tariff rates have fallen from 45% to 
13%), and non-tariff barriers have been drastically reduced. However, many tariff bindings 
made as part of the Uruguay Round multilateral negotiations were substantially higher than 
the actual tariffs applied, and this could, theoretically, lead to tariff increases, without vio­
lation of their Uruguay Round commitments. Despite these risks, the tariff reductions made 
in past years have clearly had an important effect on trade which has grown strongly, in 
particular intra-regional trade, the latter fostered by regional co-operation schemes, such as 
MERCOSUR and the ANDEAN-COMMUNITY. 
Deregulation of the economy: First important steps have been undertaken, in particular 
with regard to privatisation, but much remains still to be done. Latin American economies 
are still heavily regulated, labour market reforms are not far-reaching enough and unem­
ployment rates in most countries are already high, and have risen further particularly in 
Mexico, Uruguay, Venezuela and Argentina. Many markets remain inefficient and uncom­
petitive, partly because they are still characterised by oligopolistic forces. 
Nevertheless, in response to these reforms and to a more favourable international economic 
environment (improving terms of trade, higher growth in the US and the EU, Latin Amer­
ica's main export markets, etc.), growth over the last five years has picked up. As a conse­
quence, income per head has grown somewhat over the reference period. 
12 
!»4SSJ»«WB)«»0WWW«W»M«WWTOSWMW«WW^ • «...™«.. ". . r,.., .. „ 
GDP, av. annual GDP p.c, av. Inflation, annual rate, 
growth, annual growth, % 
% % 
7957-90 7997-95 7957-90 7997-95 1980-89 1993 1995 
Latin Amer­
ica 0.9 3.0 -1.1 1.1 388.4 892.7 25.9 
Brazil 1.3 2.6 -0.7 0.8 740.5 2,489.1 22.0 
Argentina -0.9 5.2 -2.3 3.9 162.0 7.4 1.7 
Chile 3.0 7.2 1.3 5.4 10.6 12.2 8.2 
Mexico 1.7 0.8 -0.4 -1.0 15.9 8.0 52.0 
Ecuador 1.7 3.8 -0.9 1.5 29.1 31.0 22.8 
Nicaragua -1.8 1.8 -4.4 -2.0 1,591.5 19.5 11.1 
fm$ffiiW%mW- s%svi' * ' '^'"c" ^ .^ "" '"" * SN v* '******* ' \ **>** ' s ' 4 •• > ' 
$MêiM$$ÊMà -X' -.-. % s < * - ' " w s •.••••' v •• >&•• * N< v / % 
Source: CEPAL 1996 
Trade liberalisation has been quite successful. Export growth has increased during the first 
half of the nineteen nineties, but imports, particularly of manufactures, grew even faster. 
This was due to the strengthening of economic growth as efforts at reform and stabilisation 
restored consumer- and producer confidence. A structural weakness is that Latin American 
exports are still concentrated in a few sectors, mainly commodities, in particular agricul­
tural goods, which limits the potential for export growth. In addition, certain features of the 
macroecbnomic stabilisation programmes adopted, in particular the pegging of currencies 
(such as the Argentinean peso) to the dollar, have led to overvalued exchange rates which 
favoured imports over exports. 
As a counterpart of this deficit, capital inflows have grown over the last years. In 1995, 
Latin America received US$ 54 billion in capital inflows, of which 40 per cent constituted 
FDI, 37 per cent portfolio investment and the rest bank- and trade-related "lending. The 
strength of FDI and portfolio investment flows may be considered a response to micro-
economic reforms, such as privatisation, and deregulation of the economies; others, mainly 
short-term capital inflows as a response to high real interest rates, thereby contributing to 
the overvaluation of currencies. Nevertheless, increasing capital inflows, in particular For­
eign Direct Investment, also show growing international confidence in Latin American 
economies. There are, however, risks associated with the volatility of international financial 
flows, in particular portfolio investment. These risks and the possible adverse effects on the 
economic development have been highlighted by the Mexican peso crisis in 1994/95 which 
had a disastrous impact on the Mexican economy, and caused - via its impact on confidence 
in financial markets - short economic recessions in Argentina and Uruguay. The still rela­
tively underdeveloped financial markets of the region, coupled with increasing current ac­
count deficits and in some cases still large budget deficits could prove a serious risk to fi­
nancial stability in the region. 
13 
Table 1.3.4: ExternaUrad^ 
Latin America 
Brazil 
Argentina 
Chile 
Mexico 
Ecuador 
Nicaragua Exports volume, av. annual 
growth, 
% 
1980-90 
5.2 
6.1 
3.1 
5.7 
12.2 
3.0 
-4.4 1990-95 
6.6 
6.6 
-1.0 
10.5 
14.7 
8.9 
-8.7 Imports volume, av. an­
nual growth, 
% 
1980-90 
-0.5 
-1.5 
-8.6 
1.4 
5.7 
-3.9 
-4.1 1990-95 
15.1 
8.5 
45.8 
14.5 
18.7 
10.0 
7.3 
Source: Human Development Report 1997, World Development Report 1997 
Latin American saving- and investment rates are low by international standards, and saving 
rates even show a falling trend (with the notable exception of Chile). Even if, in the short 
term, insufficient domestic savings can be complemented with substantial foreign savings to 
finance necessary investment, such substantial inflows are unlikely to continue indefinitely. 
Most important for improving depressed savings rates is a thorough reform of the fiscal 
system, including not only fiscal adjustment but also of the tax and social security systems. 
So far the latter have started only in seven countries of the region. 
Graph 1.3.1: Saving and Investment in Latin America compared to the Newly 
Industrialised Countries of Asia. 
1960 1965 1970 1975 1980 1985 1990 1993 
• . • LATIN 
AMERICAN 
GROSS FIXED 
INVESTMENT FIXED 
INVESTMENT GROSS 
NATIONAL AND 
FOREIGN 
SAVING NICTS GROSS NATIONAL AND 
FOREIGN 
SAVING 
Source: G. Palma, Whatever happened to Latin America's savings? UNCTAD 1996 
14 
Table 1.3.5: Poverty and income 
distribution 
Poor Gini index 
(<1$PPP 
per day, %) 
1981-95 
Latin 
America 24.6a 
Brazil 28.7 63.4(1989)b 
Argentina 
Chile 15.0 56.5(1994)b 
Mexico 14.9 50.3 (1992)b 
Ecuador 30.4 46.6 (1994)b 
Nicaragua 43.8 50.3 (1993)b 
"•Jv 
Source: UNDP - Human Development Report 1997, World Bank -
World Development Report 1997 
a: Source: World Bank, Poverty Reduction and the World Bank: Prog­
ress and Challenges in the 1990s. May 1996. Data refer to 1993. 
b: survey year According to World Bank estimates, 
almost one quarter of the population of 
the region lives in poverty. The UN 
Economic Commission for Latin Amer­
ica and the Caribbean, using a less re­
strictive definition, estimates about 39 
per cent of the population to be poor. 
Inequality in Latin America, in both in­
come and asset (particularly land) distri­
bution, is the highest in the world. While 
the richest 20 per cent of the population 
have average incomes of US $17,000, 
the poorest 20 per cent have an average 
p.c. income of US $ 930. According to a 
recent World Bank report, given the 
high inequality in the region, growth 
rates would have to be twice the current 
rate of growth in order to reduce the 
number of people living in absolute pov­
erty. 
Nonetheless health indicators have improved substantially for almost the whole region over 
the last decades. Life expectancy increased and, on average, reaches levels close to those in 
high income countries. Under-five mortality rates fell further in all countries between 1990 
and 1995, most significantly in Peru (from 116 per 1,000 live births to 55) and Bolivia 
(from 160 to 105). Between 70% and 95% of the population in Latin America today have 
access to health services. 
Table 1.3.6: Health 
Latin America 
Brazil 
Argentina 
Chile 
Mexico 
Ecuador 
Nicaragua Life expectancy 
I960 years 
55 
65 
57 
57 
53 
47 1994 
69 
66 
72 
75 
72 
69 
67 number of people/ 
doctor 
1980 
1,458 
1,301 
1,149 
2,308 1993 
970 
844 
330 
942 
615 
652 
2,039 
Source UNDP -; Human Development Report 1997, World Bank 
World Development Indicators 1997 
Policy priorities should be to improve the access of the poor to health care, and in general 
to reform health care systems to strengthen the overall capacity, improve performance and 
secure sustainable financing. 
15 
Adult literacy has increased over the last 25 years, reaching between 80% and 100%. Al­
most all children receive primary education today, but enrolment in secondary education is 
still substantially lower than in industrialised countries. When looking at enrolment data, it 
shows that women in general represent about 50% of all pupils. 
Table 1.3.7: Education 
Latin America 
Brazil 
Argentina 
Chile 
Mexico 
Ecuador 
Nicaragua Gross enrolment ratio 
for all levels 
(% of age 6-23) 
1980 
59 
54 
65 
65 
68 
69 
53 1994 
70 
72 
77 
72 
66 
72 
62 Gross enrolment ratio 
secondary 
(% of relevant age group) 
1980 
42 
34 
56 
52 
48 
53 
42 1995 
51 
• 43 
72 
70 
58 
55 
41 
Source: UNDP -Human Development Report 1997, World Bank - World Development Indicators 1997 
Therefore, at least at the educational level, women do seem to enjoy equal opportunities. 
Women do, however, face discrimination in all other areas of society. They are more likely 
to be affected by poverty, unemployment, and are disproportionately represented amongst 
those working in the informal sector. 
Despite progress in improving access to primary education throughout Latin America, the 
poor also have very inadequate access to secondary education, and their access to univer­
sity education throughout the region is minimal. An adequate and efficient educational sys­
tem is crucial for sustainable growth through improving productivity and thereby raising 
growth rates, and reducing inequality. Reforms of the educational system, and a better tar­
geting of educational resources, in particular towards primary and secondary education, 
remains necessary. 
Official development assistance represented about 1.7% of total Latin American GNP, or 
US$ 6 bn. in 1994, up from 1.4% in 1990. This figure is dwarfed by the amount of private 
capital flowing into Latin America which reached US$ 54 bn. in 1995. However, these 
capital flows are concentrated in a small number of countries, Brazil alone receiving 35% of 
the total. Latin American countries will further need international support, especially to 
continue to reduce poverty, build up and improve social, institutional and economic infra­
structures to make economic growth sustainable and ensure that the benefits of growth are 
distributed more equally. 
16 
2: European Community (EC) development co-operation with the 
Asian and Latin American countries . 
2.1. General overview of policy 
The ALA Regulation provides the basic point of reference from which the Commission's 
cooperation policies in respect of Asia and Latin America are formulated. However, the full 
range of the Commission's cooperation policies with Asia and Latin America go far beyond 
the financial arrangements of the ALA Regulation and include inter alia political dialogue 
and the negotiation of co-operation and trade agreements. 
2.1.1. The policy framework for Asia 
With regard to Asia, these broader considerations are set out in the Commissions Commu­
nication to the Council of July 1994 Towards a New Asia Strategy [COM (94) 314] and 
include, inter alia, developing a series of policy fora through which the countries of South 
and South East Asia may be encouraged to integrate their economies more closely into the 
global system, as well as initiatives to promote investment and business friendly environ­
ments in our partner countries and to enable those countries to access state of the art tech­
nology. Similar considerations are set out in the Commission Communication on a Long 
Term policy for China Europe Relations [COM (95) 279]. The new strategy towards 
Asia paved the way for more recent Commission strategy papers on relations with India 
and ASEAN. The EU in its cooperation with the developing countries of Asia attaches the 
utmost importance to respect for human rights, the development and consolidation of de­
mocracy and the rule of law. The EU conducts its bilateral cooperation with many coun­
tries and regions in Asia within the framework of Trade- and Cooperation Agreements, 
complemented by a structured political dialogue both on a bilateral and regional level (such 
as the dialogue with ASEAN). The EU is also taking part in the only collective regional 
security dialogue, the ASEAN Regional Forum. With China, the EC signed the first Trade-
and Cooperation Agreement in 1985. Though the development of bilateral relations was 
interrupted by the 1989 Tiananmen Square events (which led the EU to impose a number 
of sanctions), the normalisation of relations since the beginning of the 1990s has paved the 
way for increased cooperation and the establishment of a new arrangement for political 
dialogue. All those initiatives complement and round out the more traditional objectives of 
poverty alleviation and economic co-operation envisaged in the ALA Regulation and as 
such must form an essential part of any overall assessment of the Community's relations 
with the nations of this region. 
2.1.2. The policy framework for Latin America 
Following the Madrid European Council in December 1995 a new long-term strategy The 
EU and Latin America. The Present Situation and Prospects for Closer Partnership 
1996-2000 aimed at strengthening the partnership and cooperation by the year 2000 was 
adopted. This partnership goes back several decades and has been strengthened considera-
17 
bly over the last 15 years. The political dialogue between the Community and its Latin 
American partners has been institutionalised in the San José process (since 1984) and the 
dialogue with the Rio Group (since 1990), leading to a steady improvement of political re­
lations. This dialogue has been complemented by cooperation agreements. After 'third-
generation'-agreements have been signed with all Latin American countries (except Cuba), 
a new phase of even closer cooperation has started with the negotiation of agreements with 
Mercosur (signed 1995), and Chile (signed 1996) which eventually will probably lead to 
further trade liberalisation between the EU and Latin America countries and regions in the 
framework of 'Open Regionalism'. Against this background of a stronger partnership, co­
operation between the EU and Latin America has been diversified and refined to meet the 
new needs of a highly heterogeneous subcontinent seeking to consolidate the democratic 
process, pursue the quest for international competitiveness and to tackle endemic poverty 
and social inequalities. Traditional Technical and Financial Cooperation is more and more 
complemented by instruments aiming at developing closer economic and business ties, and 
instruments providing increased assistance in areas such as Gender and Development and 
the Environment. Other areas of priority include Démocratisation and Human Rights and 
Education and Training. In addition, the Interparlamentaty conferences, organised on a bi­
annual basis since 1974 have further encouraged dialogue. 
2.2 Evolution of ALA cooperation, 1991-1995 
Within this general framework, during the 1991-95 period, the Community's relations with 
the ALA countries became more comprehensive and systematic, with economic, financial 
and development co-operation expanding significantly. This reflected substantial improve­
ments in the field of démocratisation (associated with a more effective involvement of civil 
society), the positive impact of market and trade liberalisation policies supported by the 
International Financial Institutions (the IMF in particular), regional integration schemes and 
progress in structural reforms, (privatisation of state-own assets, fiscal reform, the reform 
of financial systems, restructuring of the external debt etc.). 
The Community has also become more involved in relief and rehabilitation programmes, by 
financing post-war reconstruction/rehabilitation schemes, particularly in Nicaragua and El 
Salvador. New instruments of decentralised co-operation have been developed by the 
Commission and substantial amount of financial resources has been channelled through 
NGOs and in favour of local private economic entities. Close co-ordination on policy is­
sues, fund mobilisation and operations has been established with the IFIs active in Asia and 
Latin America. In addition, the Community has encouraged the establishment of regional 
fora and organisations in the framework of "open regionalism", as a way to enhance pros­
pects of policy dialogue, trade integration and economic partnership. This South-South 
policy dialogue and economic integration aims at exploiting complementarities and com­
parative advantages and a more efficient use of human, financial and technical resources 
which are needed to cope with general problems having a regional dimension (such as envi­
ronmental protection). 
The evolving nature of the Community's policy dialogue with the ALA countries and a 
better aid co-ordination with other multilateral and bilateral donors has led to a more effec­
tive use of the financial resources available. Over the last few years the Community has be­
come a significant partner for the ALA countries by encouraging policy reforms, providing 
assistance to fight poverty in rural and urban areas, supporting private entrepreneurship and 
SMEs, encouraging new European private financial flows, supporting national "social 
safety nets" during the adjustment and process of transition, and promoting the involve­
ment of grass root local organisations in relief and reconstruction programmes. 
Women in Development 
Women are particularly vulnerable to adverse social and economic developments. They are dispro­
portionately affected by poverty, unemployment, are more likely to work in the domestic and informal 
sector which normally leaves them without social security coverage, have less access to education 
which lessens their opportunities, and in general face discrimination by the society and its institutions, 
such as the legal, political or the educational system. 
Improvement of women's status and promoting gender equality is not only important in its own right, it 
also contributes to overall social and economic development. In particular improving women's access 
to education is crucial. Breaking the vicious cycle of poverty that is sustained by poor child health and 
low levels of education can be attained through better education for women. Female education is a 
powerful instrument to reduce infant deaths, and to improve in general child nutrition and health. Fe­
male education also has an impact on fertility (usually lower for literate women) and the use of contra­
ceptives. In addition, it improves women's ability to actively participate in the labour market, and 
raises their opportunities for formal employment. 
The ALA-Regulation puts a special emphasis on the role of women in the development process and 
stipulates that EC aid policy must 'ensure (...)that specific measures, or even projects, are adopted in 
order to increase their [women'sj active participation, on an equal footing, in the productive process 
and its results, and in social activities and decision making.' (article 5). It also implies that all pro­
grammes and projects within the development co-operation programme with the ALA countries have 
to bear 'in mind particularly the role of women1 (preamble). This was reinforced by the Council's 1995 
Resolution on integrating gender issues in development co-operation (12847/95 of 20.12.1995). 
Implementation of the Regulation thus adopts a dual approach. As promotion of gender equality 
should be an integral part of all activities, since 1994 all projects are screened to ensure proper atten­
tion to gender integration. At the same time, specific projects may be needed to combat gender ine­
qualities. Of total EC aid to the ALA regions since 1992, over 235 MECU has been committed to posi­
tive action projects for women's empowerment, not taking into account actions integrated in projects 
and programmes under different budget lines. A small specific budget line 'Women in Development', 
also exists to finance technical advice and sensitisation activities aimed at improving attention to 
gender issues in mainstream development co-operation. For example, the Commission has funded a 
number of studies ('Gender Profiles) on the situation of women in some Latin American developing 
countries which make it easier to direct projects and programmes effectively towards improving the 
situation of women. 
Co-operation with the ALA countries has also emphasised gender awareness and the role 
of women in development as well as, on a more general level, the need to respect basic hu­
man rights and civil liberties, constitutional reforms, the consolidation of the démocratisa­
tion process and the reform of domestic legal and judicial systems. Indeed, public account­
ability ("good practices"), good governance and the respect of rule of law by ALA partners 
has been an essential pre-condition for a fruitful dialogue and for the mobilisation of the 
Community's financial resources in support. 
The Community's economic co-operation programmes in Asia and Latin America focus 
strongly on the private sector. The thrust of these programmes has been towards improving 
the business and regulatory environment in partner countries in order to stimulate a two 
way flow of trade and investment by developing a wide range of supportive instruments to 
further the development of business, and especially small and medium scale businesses. 
These instruments include institutional support through such structures as the Council of 
European Chambers of Commerce, Business Councils, and various directly funded training 
programmes designed to enhance management skills in partner countries. The Commis­
sion's programmes are not, however, limited to addressing the economic dimension of de­
velopment. The importance of the social sector is recognised as is the need to ensure an 
equitable balance in the distribution of the fruits of progress. Projects and programmes 
founded on Financial and Technical Cooperation are targeted at poverty and focus on 
health, sanitation and human resource development whilst taking account of the gender and 
environmental dimensions of development. 
Population and Reproductive Health 
Tackling population growth through creating awareness on family planning issues and the provi­
sion of good quality services to meet demand is a key development issue. Reducing the hun­
dreds of thousands of maternal deaths and millions of episodes of illness associated with preg­
nancy and delivery is a high priority. In addition, creating a safe environment for young people 
free from the risks of violence, abuse and providing information and services to prevent unwanted 
pregnancies and sexually transmitted infections (including HIV) is an area that is beginning to 
receive increased attention. 
In Asia and Latin America the Commission is supporting the empowerment of women to take 
control of their reproductive lives; it is providing support to the development of better quality 
services that are more freely available to those who need them, and it is working to develop cost-
effective strategies for tackling the spread of HIV/AIDS and other sexually transmitted infections. 
The Special budget line for population polices and programmes in developing countries (B7-631) 
is used to support policy and strategy development and to support innovative projects that are 
complementary to the larger programmes of support to the health sector. The new Council Regu­
lation for B7-631 (EEC 1484/97, J.O. L 202, 30.07.1997, p1) states that the Commission will work 
towards : 
enabling women, men and adolescents to make a free and informed choice about the number 
and spacing of their children; 
contributing to the creation of a socio-cultural, economic and educational environment con­
ducive to the full exercise of choice, especially for women and adolescents, and in particular 
through the condemnation and eradication of all forms of sexual violence, mutilation and 
abuse which affect their dignity and health; 
helping develop or reform health systems in order to improve the accessibility and quality of 
reproductive health care for women and men including adolescents, thereby appreciably reduc 
ing the risks to the health of women and children. 
It is very important to stress that the community approach to co-operation with the ALA 
countries is based on the use of a wide variety of instruments reflecting the diversity of the 
development experiences of the countries of Asia and Latin America. Moreover the mix of 
instruments used changes from country to country and from region to region with the bal­
ance depending on the level of development and whether the need is for efforts to promote 
trade and investment, for project finance, for structural adjustment funds, for financial and 
technical assistance, and/or economic co-operation, or for improved market access. It is 
this diversity which makes development co-operation with the ALA countries such a chal­
lenge for the Community. 
As regards the developing countries in South-East Asia and the Indian sub-continent, the 
evolution and the nature of EC multilateral and bilateral dialogue and co-operation during 
the 1991-95 period reflected the rapid growth achieved in this part of the world, the ar-
20 
rangements for strengthening regional co-operation in the Asian-Pacific basin (ASEAN, 
SAARC, APEC etc.) and the resulting changes in the global balance of economic power. 
The need for policy differentiation has also became more and more evident, in the light of 
diverging degrees of economic and social progress witnessed by the countries in this part of 
the world. Therefore EC strategies in Asia encompassed market-led trade, trade integration 
and investment objectives in fast-growing emerging economies, policy dialogue and sup­
porting reforms in adjusting countries (former command economies), and traditional devel­
opment co-operation in the poorest, focusing on poverty alleviation strategies. 
During the second half of the 1980s and in the early 1990s many-, if not most, of the Latin 
American countries started implementing a démocratisation process by moving towards 
more participatory forms of government, encouraging greater transparency and account­
ability in government and promoting the rule of law. These positive developments and the 
accompanying policy orientations have led to a higher level of political stability in the Latin 
American region. 
These countries proved to be particularly challenging for EC co-operation policy, reflecting 
a different timing and sequencing in the structural adjustment, market liberalisation and 
démocratisation process in each country concerned. During the second half of the 1980s 
and in early 1990s some countries in the region undertook ambitious stabilisation and ad­
justment programmes (Brazil, Argentina and Chile, for instance) and many of them 
(including Costa Rica, Mexico, Venezuela, Uruguay, Bolivia etc.) started addressing acute 
financial and balance of payments problems deriving from an unsustainable external debt 
position vis-à-vis western commercial banks. 
The strengthening of democracy, political stability, economic reforms and regional integra­
tion have led to new FDI flows and huge reconstruction-rehabilitation and development co­
operation programmes, supported by bilateral donors, the Community and the Bretton-
Woods Institutions. During the period under consideration major efforts were deployed by 
the countries in Central and Latin America to foster regional co-operation and integration 
(San José Process, Andean Community, MERCOSUR etc.), reflecting the positive impact 
of new economic liberalisation and trade integration policies. 
2.3. The Council Regulation EEC 443/92 of 25/02/1992. 
The Council Regulation EEC 443/92 on financial and technical assistance to, and economic 
co-operation with ALA countries (O.J. L52, 27.02.92, pi) is a key statement of the Com­
munity's approach to development strategies. This Regulation, based upon article 235 of 
the Treaty, is particularly innovative because: 
1) The Regulation pinpoints the need for the Community's development co-operation in­
struments to be closely associated with trade liberalisation strategies (article 1). 
2) The Regulation introduces the principle that any co-operation and resource mobilisation 
should be made conditional upon the respect of basic human rights and fundamental demo­
cratic principles in each EC partner country. In this respect, the text of the co-operation 
agreements negotiated after 1992 all include "human rights" and "démocratisation" clauses 
(article 2). 
21 
3) According to the Regulation, a range of decentralised authorities are eligible for eco­
nomic, technical and financial assistance. Potential beneficiaries could include not only 
central or local public authorities, but also private entities and NGOs (article 3). 
4) The Community's main financial instruments (and their programming ) should be tai­
lored to meet the specific requirements of ALA partner countries (article 3). 
5) The Regulation indicates that, as a matter of priority, financial and technical co­
operation should aim at providing support to the poorest ALA developing countries and to 
the poorest sections of local populations (article 4). 
6) Financial and technical assistance should focus on rural development, food security, en­
vironmental protection, the role of women, the fight against drugs, démocratisation, child 
protection etc (article 5). Economic co-operation, that is scientific and technological co­
operation and partnership, institutional and administrative build up, support for investment 
and trade integration and assistance to the private sector, should serve the mutual interests 
of the Community and its partner countries. Support for regional co-operation is seen as 
being an important part of economic co-operation (article 7). 
Fight against Drugs 
The budget line for aid in support of anti-narcotics measures namely 'North-south co-operation in the fight 
against drugs' was created in 1987 (B7-6210) to finance projects in this domain. The Commission has sub­
sequently sought an enabling regulation to serve as a statutory basis for this budget line namely Council 
Regulation EEC 2946/97 (OJ L287, 21.10.1997, p1) following transmission of a Parliamentary Opinion to the 
Council subsequent to the second reading by Parliament on March 13,1997. 
This budget line does not reflect the full extent of co-operation by DG IB in the fight against drugs in the 
countries which fall in its geographic area of competence because, on the one hand, it does not include the 
cost, over the period as a whole, of the anti narcotics clauses of the GSP (coveringindustrial and agricultural 
products from the Adean Pact countries and agricultural products from the countries of Central America) in 
terms of revenue lost to the Community Budget and nor, on the other hand, does it include funds provided 
for this purpose from other budget lines. 
From 1991 to 1995 funds committed under budget line B7-6210 amounted to roughly Ecu 50 million. 34 per­
cent of these funds were allocated to Latin America, 31.3 percent to Asia, 9.3 percent to the ACP countries, 
19.8 percent to the countries of the Mediterranean basin and 3.5 percent were allocated to several countries 
or served to fund horizontal actions (thematic research) from which a region or a group of countries bene­
fited. 
A breakdown by type of project funded indicates that 52 percent of the funds were allocated to preventive or 
demand reduction programmes, or to the treatment and rehabilitation of addicts, 20 percent went to alterna­
tive development programmes, 10 percent sustained actions against trafficking and supply reduction and 18 
percent provided support to training and research programmes. 
NGOs were the principal beneficiaries of the programme, accounting for half of funding allocations whilst 
governments accounted for 30 percent. Commitments to United Nations Drugs Control Programme made up 
approximately 18 percent of total commitments. Consultants or universities received 2 percent of funds 
committed to carry out research. 
22 
7) To enable the Community to implement these policy guidelines and provide financial, 
economic and technical assistance to its ALA partners, the Regulation mentioned a total 
amount of 2750 MECUs deemed necessary for the 1991- 95 period. Fund mobilisation 
should take place in the framework of an indicative medium-term programming exercise 
due to be carried out with the developing countries concerned. It also decided that some 
10% of this total should be used to finance programmes in the field of environmental 
protection and preservation of tropical forests (article 9 and 10). 
Environmental protection in EC cooperation with ALA countries 
Environmental issues have developed to represent an important aspect of EC cooperation with develop­
ing countries in Asia and Latin America. They are becoming increasingly prominent in the dialogue with 
partner countries, as shown for example by the fact that the environment is integrated into all coopera­
tion agreements with Asian and Latin American partner countries/regions. The importance given to 
environmental issues can also be judged by the level of funding of projects and programmes with spe­
cific environmental objectives. In this regard, a recent independent inventory of funds committed by 
DG1B to environmental projects concluded that, between 1990 and 1995, 596 MECU was committed to 
environmental projects in Asia, and 255 MECU in Latin America. 
A large share of this expenditure is channelled through the ALA budget line, which is thus, in the 
aggregate, meeting the "10 % target" set out in the ALA regulation. However, the figures also include 
two budget lines intended specially for environment in developing countries and for tropical forests. 
These complement activities have been carried out under the ALA budget lines. 
The budget line targeted at environment in developing countries (B7-6200, 15 MECU in 1995, for all 
ALA/MED/ACP countries) is used for innovative pilot projects related to the management of natural and 
urban environment, as well as for strategic studies in the field of environment. Pilot projects funded 
under this budget line are often taken over for further financing by the budget lines governed by the ALA 
regulation. There is thus an important synergy between the two financing instruments. In 1995, work was 
undertaken to establish a legal basis for these activities through the creation of a regulation. That work 
continued through 1996 and was finalised in the beginning of 1.997 (EEC 722/97, J.O. L 108, 
25.04.1997, p1). 
The second "environmental" budget line concerns the protection of tropical forests (B7-6201, 50 MECU 
in 1995 for Asian, Latin American and ACP countries). It is used specifically for the protection and ra­
tional management of tropical forests and the improvements of conditions of forest dwellers and of 
populations living on the fringes of the forests. On 20 December 1995, a regulation was adopted (EEC 
3062/95, J.O. L 327, 22.12.1995, p9) laying down the basic principles and strategies as well as the 
procedures for making the financial commitments from this budget line. NGOs play an important role in 
the execution of programmes and projects financed by both these budget lines. 
Another important tool for ensuring the environmental performance of the cooperation activities fi­
nanced from the ALA budget line is Environmental Impact Assessment (EIA). EIA procedures were 
introduced in 1991, and are constantly being refined and complemented with different support such as 
training courses and guidance material. 
2.4. Associated bilateral Co-operation Agreements and multilateral rela­
tions. 
The implementation of the ALA-Regulation has taken place in the framework of a 
strengthened policy dialogue (which included also cultural and science and technology 
matters) and trade integration process regulated by a new range of bilateral Co-operation 
23 
Agreements ("third generation" Agreements) and, at the multilateral level, by a new rela­
tionship with regional organisations in Asia and Latin America. Thus: 
a) As regards new bilateral relations with partner countries in Asia, over the reference pe­
riod, Co-operation agreements were signed with India (J.O. L 223/94, p23), Sri Lanka 
(JO. L 85/95, p32), Vietnam (J.O. L 136/96, p28), Nepal (J.O. L 137/96, pl4) and Macao 
(J.O. L 404/92 p26). Multilateral co-operation with regional groupings in Asia (ASEAN, 
SAARC etc.) was intensified significantly to encompass a number of fields of common or 
regional interest. 
To provide a framework for this bilateral and multilateral dialogue a new Communication, 
"Towards a new Asia Strategy" [COM (94) 314], was adopted by the Council in Novem­
ber 1994. The new strategy towards Asia includes new long-term objectives and policy pri­
orities aiming at ensuring a more effective and pro-active European political and cultural 
role and economic presence in this most dynamic region of the world economy, and paved 
the way for the ASEM process. This strategy was complemented by Communications on 
future relations with China, India and ASEAN. 
b) Also in the case of Central and South America new Co-operation Agreements have been 
signed with each country in the region, including recently Chile, Mexico and with Merco­
sur and the Andean Pact; Cuba alone has been an exception - there only humanitarian assis­
tance through NGOs has been provided. Moreover following previous declarations of 
European Council in Corfu, Essen and Cannes, the Madrid European Council in December 
1995 adopted a new long-term strategy aimed at strengthening EU-LA partnership and co­
operation by the year 2000. 
24 
3: The details of Community co-operation with Asia and Latin 
America, 1991 to 1995. 
3.1. General Quantitative Overview of Community Cooperation 
This section attempts to show as clearly as possible, using those data that provide a compa­
rable picture for all ALA regions, how the implementation of the programme of develop­
ment co-operation set down in the ALA regulation has proceeded. The data discussed in 
this section and presented in the Annexes are drawn from two sources. 
Firstly the summary Tables 1 and the detailed tables 2A to 2D and 3 A to 3D are taken from 
the data bank prepared for the comprehensive evaluation exercise which is now underway 
in DG IB3. These data provide an overview of commitments and disbursements for the two 
regions (and their various sub-regions), assembled according to a framework based upon 
the OECD DAC classification of official development assistance (Tables 2A-2D) and by 
beneficiary country (Tables 3A-3D). These data include a wider range of actions and in­
struments than strictly covered by the terms of the ALA Regulation and use a classification 
by project type that is somewhat different from the approach provided for in the Regula­
tion. Indeed the OECD DAC classification does not clearly distinguish all the areas of co­
operation mentioned, both in the ALA Regulation and in the basic strategic Commission 
documents for Asia and Latin America (see 2.1.1. and 2.1.2.). For example, table 2B (Latin 
America) shows a total of 126 Mecu committed for the subsector 'Industry, Mining and 
Construction'. In fact, the largest share of this amount is related to projects targeting mi­
cro-businesses in the informal sector. 
The second data source is the data banks maintained by the technical Units in the Asia and 
Latin American Directorates of DG IB. Here the total of commitments is analysed, for the 
years covered, and for Asia and Latin America, by individual budget line. These budget 
lines cover the kinds of actions with which the ALA Regulation is at least in principle con­
cerned or associated and are grouped under 4 headings; 
Financial and Technical Assistance. 
Economic Co-operation. 
Humanitarian Aid. 
Other4 
Data on commitments according to this classification are set down in Table 4 for Asia and 
Table 6 for Latin America. 
However, the ALA Regulation 443/92 is specifically addressed to the management of the 
budget lines for Financial and Technical Assistance ( B 7-3000 and B 7-3100) and for Eco­
nomic Co-operation narrowly defined (B 7-3001 and B 7-3110). Data for commitments 
under these budget lines only are set down in Tables 5 (Asia) and 7 (Latin America). 
3 See for example the relevant tables given in 'Inventory of European Community Aid'ODI, London, De­
cember 1996. 
4 For example, Démocratisation, Women in Development, Demography, Tropical Forests etc.. 
25 
The starting point is Table 1 which sets down an overall view of Commission commitments 
and disbursements for Asia, including China, Macao and the Yemen, and Latin America. 
As already noted this table provides data covering a range of actions much wider than those 
immediately addressed by the ALA Regulation. It does nonetheless provide an illustration -
and as yet the only illustration - of how commitments to Asia and Latin America have been 
met by disbursements. In addition the data for South and South East Asia have been 
grouped together so that the relation between commitments and disbursements can be 
clearly seen. 
It is important to note that the amounts of aid both committed and disbursed in the years 
1991 to 1995 were substantially higher than in the previous periods. It will be noted from 
line 8 of Table 1 that the ratio of total disbursements to total commitments over the period 
covered is 60 percent, with the figure for Latin America being higher (at 64 percent) than 
Asia (58 percent). The figure for South and South East Asia alone is somewhat lower at 56 
percent. Such a figure might be taken as representative of, or as a first approximation to, 
the ratio of disbursements to commitments for operations covered by the ALA Regulation. 
Thus over the period covered by this report total disbursements have fallen well below total 
commitments and the gap now appears to be greater than in earlier periods (the overall 
figure being 64 percent in the period 1986 to 1990). This reflects a substantial fall in the 
ratio of disbursements to commitments for Asia not offset by an increase for Latin America. 
There are a number of possible explanations for the fall in this ratio. Thus it could be due to 
an increase in the sophistication of development co-operation implying that more time is 
needed to get aid programmes operational, as well as to other forces lengthening the time 
lag needed to get projects underway, such as difficulties in absorbing aid resources. 
As regards the balance between disbursements.to Asia and to Latin America, as a percent­
age of the total, these were relatively close over the period 1991 to 1995 (54 percent Asia, 
46 percent Latin America) compared to figures of 63 percent and 37 percent respectively 
for the earlier period from 1986 to 1990. It is clear therefore that the more recent figures 
are distant from the long standing informal understanding that about two thirds of the aid 
under the ALA programme should go to Asia, a proportion that seems to been broadly re­
spected in the period to 1990. This evolution will undoubtedly reflect, at least in part, deci­
sions of the budgetary authorities in the European Institutions. 
Tables 2A-2D also set down an analysis of total aid commitments and disbursements to 
Asia and Latin America classified according to a schema drawn from that used by the 
OECD DAC. Once again the limitations of this classification, as regards this exercise (see 
above), should be stressed. Nonetheless it is possible to catch a glimpse of how the priori­
ties set down in the ALA Regulation have been addressed. Thus it is important to note 
from Tables 2A and 2B that as regards commitments: 
- the still important amount of resources committed to rural development for both Asia and 
Latin America compared to earlier periods; 
- the funds attributed to the heading 'Environment ' as also for 'Women in Development ' 
only include funds specifically allocated to these headings and so underestimate signifi­
cantly the overall EC commitment to these themes. However, the available evidence is that 
the requirement in the Regulation that 10 percent of commitments be directed towards ac-
26 
tions related to the environment has been met. This is the conclusion of the study 
'Evaluation of the Environmental performance of the EC Programmes, 1990-1995' (Vol. 1 
ERMOct. 1996). 
- the increased proportion of resources allocated to 'Social Infrastructure and Services' as 
compared for example to the reduced proportion allocated to Economic Infrastructure and 
Services. 
Economic Co-operation 
The ALA-regulation spells out clearly that economic co-operation with the developing partner countries in 
the two regions shall be of high priority. What distinguishes it from financial and technical assistance is the 
emphasis on mutual interest, i.e. economic co-operation should create and reinforce a network of business 
and other economic links between the EU and its partner countries. Economic co-operation programmes 
and projects 'shall contribute to the development of the ALA developing countries by helping them build up 
their institutional capacity so as to create an environment more favourable to investment and development 
and make the most of the prospects opened up by the growth of international trade, including the European 
single market and by enhancing the role of businessmen, technology and know-how from all the Member 
States, particularly in the private sector and in small and medium-sized undertakings. ' (article 7) 
The EC has developed and implemented a wide range of instruments to promote economic co-operation in 
its various forms. 
Investment promotion takes^place in the framework of ECIP, AL-lnvest, and Asia-Invest. ECIP, which not 
only covers the ALA countries, but also the Mediterranean region, finances investment promotion actions 
such as matchmaking exercises, feasibility studies, pilot projects, individual risk capital financing, training 
programmes and management assistance actions. AL-invest and Asia-Invest are programmes financed by 
the Commission to: 
• encourage growth in two-way trade and investment flows; 
• help raise awareness of opportunities in the ALA regions in the European business community; and 
• assist companies from the developing countries in ALA to enter into mutually beneficial co-operation 
with European companies. 
Contacts and co-operation between businesses of the two regions and European companies are also sup­
ported through facilities like BC-Net (Business Co-operation Network ), and BCC (Business Co-operation 
Centre). These provide 'matchmaking' services for companies, focusing on small and medium-sized en­
terprises. 
EC aid is also channelled towards assistance for banking, finance and business services to help a financial 
sector, support privatisation, and strengthen financial institutions in the ALA countries. 
Annual commitments under the budget line Economic Co-operation have increased substantially in the 
period covered by this report since 1990, reaching 56 MECU for Latin America, and 58 MECU for Asia in 
1995. Over the period 1991 to 1995, 16% of total aid to Latin America was committed for economic co­
operation and about 10 percent for Asia. 
On the basis of the DAC data it is not easy to make clear or unambiguous comments about 
the position regarding disbursements (Tables 2C and 2D). Thus, according to this data 
source, for Asia a substantial part of the total (50 percent) remains unallocated by sector 
making it impossible to draw any useful conclusions about the ratio of disbursements to 
commitments by sector for the region over the limited period covered by this report. 
The situation is somewhat better in the case of Latin America where only about one sixth 
of the total disbursements are unallocated by sector, roughly the same proportion as in the 
case of commitments. Thus Tables 2B and 2D, taken together, appear to indicate that the 
ratio of disbursements to commitments for Latin America is somewhat higher in the more 
27 
traditional sectors (natural resources and other productive sectors) than for those sectors 
on which, in principal, economic co-operation activities are now seeking to focus, namely 
economic and social infrastructure, support for governance and civil society and cross cut­
ting issues such as women in development and rural development, etc. However, as noted 
above for Asia, this report is by requirement addressed to the period 1991-1995, and so the 
data for 1996 may present a somewhat different picture. 
Tables 3 A to 3D make possible an analysis of commitments and disbursements by benefici­
ary country. Here it will be seen that a number of countries have exhibited, despite their 
need, a relatively low ratio of disbursements to commitments over the reference period 
(the Philippines, India, Peru, Nicaragua). Nevertheless it should be noted that substantial 
proportions of both commitments and disbursements remain unallocated by country and so 
comments of this kind must remain tentative. 
Moving on from the tables based on OECD-DAC data sources, Tables 4 and 6 set down 
detailed data from internal Commission sources, on commitments, for Asia and Latin 
America, for budget lines financing those actions that may be considered to be covered by 
the general principles set down in the ALA Regulation. 
As already noted, the ALA Regulation provides the basis for the operation of four budget 
lines. Data for commitments for these lines, for Asia and Latin America, are given in Tables 
5 and 7. 
From Table 4 it will be seen that total commitments to Asia increased by two thirds over 
the period 1990 to 1995. Almost all of this increase (about 240 Mecu) was accounted for, 
by proposed expenditure, under the headings Financial and Technical Cooperation (140 
Mecu) and Economic Cooperation (55 Mecu), changes reflecting those aspects of devel­
opment cooperation emphasised in the Regulation. Nonetheless there were also important 
increases in commitments under the Rehabilitation programmes, Food Aid and Emergency 
Relief. 
As regards Latin America, it is important to note at the outset that the EU is now the main 
provider of Official Development Assistance to Latin America and indeed accounted for 
53% of the total transferred in 1995. 
From Table 6 it will be seen that commitments to Latin America more than doubled be­
tween 1990 and 1995, from 257 Mecu to 520 Mecu. Within this total there were important 
increases in commitments to the themes emphasised in the Regulation, namely in Financial 
and Technical Cooperation, 104 to 232 Mecu, and Economic cooperation from 15 to 56 
Mecu. Commitments regarding the tropical forests also rose sharply from nothing in 1990 
to 36 Mecu in 1995. In addition, Emergency aid, negligible in 1990 increased to almost 22 
Mecu in 1995 
28 
3.2. Qualitative Commentary: Financial and Technical Cooperation and 
Economic Cooperation 
3.2.1. Asia 
Financial and Technical Cooperation accounted for about 60% of EC Aid to Asia in the 
1990s. It can - in principle - address all sorts of developmental needs. In Asia, however, it 
focuses almost exclusively on the poor countries, and within them, on the least favoured 
groups of the population and the rural poor. 
Poverty Alleviation 
Even though there is a broad correlation between economic growth and social development, the 
link between the two is complex. The crucial question is: How does economic growth translate into 
social and human development? High levels of economic growth can go hand in hand with in­
creasing social inequality and poverty and adjustment policies often do not sufficiently take into 
account the human dimension of economic reform. Aid policy therefore has to focus on this di­
mension and on supporting the concept of pro-poor growth: Economic growth contributes to 
poverty reduction if it: 
* leads to an improvement of health/education/skills; 
* increases employment (SME - high potential); 
* improves productivity; 
* thereby leads to an increase in real wages; 
In rural areas, where still the highest share of poor live (though there is now a shift towards urban 
areas), pro-poor growth is crucial. Here activities should focus on improving access to education 
and health care, frequently underdeveloped in rural areas, and on creating an enabling environ­
ment for small-scale agriculture, to increase food security, and for micro-enterprises, for instance 
by improving access to credit. 
Poverty represents a major problem in both Latin America and Asia, especially South Asia. The 
ALA-regulation explicitly mentions that the aim of community development and cooperation 
policies shall be human development' (article 2). 
With regard to financial and technical assistance, this 'shall be targeted primarily on the poorest 
sections of the population and the poorest countries in the two regions, through the implementa­
tion of programmes and projects in whatever sectors community aid is likely to play an important 
role.' (article 4). It also stresses that priority should be given to developing the rural sector, and to 
improving the level of food security. Its scope should also be extended to the more advanced 
ALA-countries, in particular, among others, in the field of pilot schemes to help underprivileged 
strata of the population especially in large conurbations, (article 6) 
Poverty alleviation and human development are key issues of EU aid policy. While indi­
rectly, all aid has the potential to reduce poverty through improving the economic, social and insti­
tutional environment, it nevertheless remains necessary to specifically target the poor and pro­
mote human development. Over the period 1991-1995, almost a quarter of total EU aid to Latin 
America and Asia have been committed for Social Infrastructure & Services and Rural Develop­
ment (23% in Latin America, 22% in Asia), as compared to 15% in the previous five-year period. 
This does not include projects in other sectors, such as environment, economic infrastructure or 
others, which are also likely to have a positive impact on poverty. This clearly shows the increas­
ing importance of activities directly focusing on poverty alleviation within EC aid policy. Following 
the mandate of the ALA-regulation, poverty alleviation in rural areas is a top priority for financial 
and technical assistance in the two regions. Large projects regarding, for instance, education and 
health, are normally focused on rural and marginal areas. 
29 
Over 40% of all projects in Asia over the period 1992-1995 have had poverty alleviation as 
their explicit objective. About 70% of EC funded projects have at least indirectly aimed at 
poverty reduction through improvement in food security. But the objective of poverty alle­
viation has been approached also through: 
* improvement of incomes and promotion of employment generating programmes 
for the rural poor; 
* promoting equitable development for women and men; 
* protecting and rehabilitating vulnerable ecosystems; 
* improving access to health and education services. 
Besides this overriding emphasis on poverty reduction, EC funds under Financial and 
Technical Assistance contribute to government's efforts in improving access and quality of 
social services. In India, for example, the support is given to the process of reform of the 
education and family welfare systems. In addition, NGO co-financing has complemented 
EC aid programmes, including the gradual involvement of Asian NGO's in the implementa­
tion of a number of rural development programmes funded under Financial and Technical 
cooperation. 
3.2.2. Latin America 
As regards Financial and Technical Cooperation, it is important to note that: 
* even if still important, the rural development sector does not constitute the core of fi­
nancial and technical cooperation, and its relative importance is decreasing; 
* increased attention was paid to the urban poor (street children and other vulnerable 
groups). Projects in this area often stemmed from pilot projects funded from the budget 
line for "Démocratisation and Human Rights"; 
* micro-businesses (mostly in the informal sector) and credit projects fostered in the early 
90s, but they have recently declined. 
At the end of the reference period, an important increase of resources devoted to: 
1. education and training projects; 
2. support for national sectoral programmes, namely in the areas of health and edu­
cation; 
3. and programmes aiming at institutional strengthening and reform of public ad­
ministration; 
can be observed. 
As for Economic Cooperation, within the reference period the so called "horizontal pro­
grammes": 
* AL-INVEST (business and industrial cooperation); 
* ALFA (universities networks); 
* ALURE (energy sector); 
were launched and consolidated. At the end of the period, another horizontal programme -
URB-AL, aiming to establish and support networks of local administrations (towns and 
regions) - was being prepared. 
30 
Each one of those programmes provides a framework for decentralised initiatives being 
funded, setting up a common ("programme") methodology. Therefore, each one of those 
programmes integrates activities which, over the period 1986-90 and in the early 1990s, 
were financed through "individual" projects. 
In addition, important programmes, mostly sub-regional ones, in the areas of standards and. 
customs regulations were developed and implemented. At the same time, there is still a 
number of individual national projects in the field of trade promotion, but their share within 
total Economic Cooperation is decreasing. Lastly, training projects for key target groups in 
Latin America, i.e. within public administration, business managers, and specialists in 
'regional integration' are funded. 
31 
4. Concluding Points. 
Section 1 of the report describes economic and social developments in the countries cov­
ered by the ALA Regulation over the reference period and points in particular to the im­
provements undertaken and the progress made. It also stresses that much needs to be done, 
in both regions, and in particular points to the importance of sound macroeconomic poli­
cies, good governance and of focusing even more resources on the health and education 
sectors, on institution building and so both directly and indirectly on the problem of pov­
erty. 
Even if the EC budget for financial, technical and economic co-operation with the ALA 
countries is relatively limited vis-à-vis these countries' need for foreign financing (both 
ODA and investments), the EC has been able to make a positive contribution in: 
* sustaining a political and economic dialogue; 
* focusing on poverty alleviation (in the wider sense and including primary health 
& population programmes, primary education, empowerment of women etc.); 
* supporting macroeconomic reforms and institutional building; 
* facilitating trade, investments and transfer of technology; 
* support of democracy and human rights, in particular the transition towards de­
mocracy; 
* the progress of regional cooperation and integration among its partner countries 
in the ALA regions. 
Section 2 describes the general framework of cooperation with the ALA countries, the aims 
and principles set down in the ALA Regulation and shows that a development cooperation 
programme based on these aims and principles will certainly help the ALA countries to ad­
dress the problems set out in section 1. 
Section 3 shows as far as possible given the limited data available that the resources 
made available under the ALA Regulation have been committed in line with the aims and 
principles of the Regulation. It would seem that the present thrust of Community co­
operation policy, and in particular the part of it covered by the ALA Regulation, is address­
ing the key development problems faced by the ALA countries, is making a positive contri­
bution to their resolution as well as supporting and improving mutually beneficial relations 
between the EU and the ALA countries. 
Finally, given the extensive and comprehensive evaluation of Community development co­
operation that will be made available next year, no case can be made, at this stage, on the 
basis of available information, for modifying the ALA guidelines as set down in the ALA 
Regulation. 
32 
Notes to Tables 
This report draws upon different sets of data, each of which has been constructed with a 
different aim in mind. Consequently it is difficult, if not impossible, to reconcile completely 
the figures available. Moreover, in examining and analysing the attached tables, it should be 
borne in mind that the figures presented are unaudited estimates of transactions 
(commitments and disbursements) during the reference period. There is thus a need to ex­
ercise very considerable caution in drawing conclusions in relation to Community develop­
ment co-operation programmes in the ALA countries during the reference period on the 
basis of the data submitted. 
In particular it should be emphasised that it is necessary to pay special attention to the fol­
lowing points. 
Commitments (ODI data) 
Tables 2A and 2B are consistent with table 1. However Table 3 A - commitments Asia by 
country - has a wider coverage than Table 2A and includes data for Iraq, Iran, and the 
Yemen. The totals for Tables 3 A, less the figures for these three countries, give totals very 
close to those in Tables 2A and 1. 
For Latin America the totals from Tables 1, 2B and 3B are virtually the same (rounding 
errors will account for the major part of the minor discrepancies noted). 
Disbursements (ODI data). 
For Asia the totals for Tables 2C and 3C are very close. However it is not yet possible to 
reconcile the differences between these totals and those given in Table 1. As regards Latin 
America the totals in Tables 1, 2D and 3D are once more virtually the same (again round­
ing errors will account for a large part of these discrepancies). 
Data from sources internal to the Commission 
The data given in Tables 4 and 6 and Tables 5 and 7 are drawn from sources internal to the 
Commission. They set down commitments data for the Budget lines for which the ALA 
Regulation provides the legal basis (Financial and Technical Cooperation and Economic 
Cooperation) as well as for those Budget lines which may be considered to be covered by 
the general principles set down in the Regulation. 
In drawing up these tables an element of choice is involved. As a consequence, whilst the 
major part of the commitments of aid to the ALA countries are covered by Tables 4 and 6, 
these Tables must not be considered exhaustive. 
33 
ANNEX 1 
TABLES 
->£i ANNEX 1 
TABLES 
->£i ANNEX 1 
TABLES 
->£i ANNEX 1 
TABLES 
->£i ANNEX 1 
TABLES 
->£i ANNEX 1 
TABLES 
->£i 
TABLE I: IX AID TO ASIA AND LATIN AMEKICA.(m.ECl))1. 
1) Asia commitments 
China and other East Asia 
South Asia 
Soulh-East Asia 
Unallocable 
2) Latin America commitments 
South America 
North and Central America 
Regional 
Unallocable 
3) Asia disbursements 
China and other East Asia 
South Asia 
South-East Asia 
Unallocable 
4) Latin America disbursements 
South Ajncrica 
North and Central America 
Regional 
Unallocable 
5) Asia *& Latin America corns. 
6) Asia & Latin America disbs. Average 
19X6-1990 
273 
25 
168 
50 
29 
181 
69 
42 
29 
41 
183 
19 
110 
34 
21 
108 
39 
26 
8 
34 
454 
291 1991 
383 
21 
295 
46 
21 
286 
134 
73 
16 
62 
261 
33 
135 
66 
26 
196 
78 
62 
7 
49 
669 
457 1992 
470 
II 
230 
153 
76 
338 
160 
129 
6 
44 
300 
24 
174 
75 
28 
231 
88 
66 
21 
55 
808 
531 1993 
504 
21 
302 
146 
35 
401 
170 
140 
49 
42 
264 
16 
144 
53 
50 
273 
100 
98 
21 
54 
905 
537 1994 
451 
40 
203 
165 
44 
390 
173 
182 
20 
15 
246 
11 
132 
76 
27 
247 
108 
75 
17 
48 
841 
493 1995 
696 
62 
288 
200 
146 
486 
232 
212 
28 
14 
369 
22 
189 
112 
46 
275 
100 
94 
33 
47 
1182 
644 Total 
1991-1995 
2504 
155 
318 
710 
322 
1901 
869 
736 
119 
177 
1440 
106 
774 
382 
177 
1222 
474 
395 
99 
253 
4405 
2662 
MEMORANDUM ITEM. 
7) Asia less China and other East Asia2 
a) Commitments 
b) Disbursements 241 
162 361 
224 457 
274 481 
244 406 
234 618 
344 2364 
1320 
RATIOS: Percentage of :-
8) Disbursements to Commitments-
Asia 
Asia less China and other East Asia 
Latin America 
Total 
9) Total Commitments to 
Asia 
Latin America 
10) Total Disbursements to 
Asia 
Latin America 67 
67 
60 
64 
60 
40 
63 
37 68 
62 
69 
68 
57 
43 
57 
43 64 
60 
68 
66 
58 
42 
56 
44 52 
51 
68 
59 
56 
44 
49 
51 55 
52 
63 
59 
54 
46 
50 
50 53 
56 
57 
54 
59 
41 
57 
43 58 
56 
64 
60 
57 
43 
54 
46 
Source: ODI 1996. Small discrepancies may occur due lo rounding. 
" Unallocable has been attributed by proportion. 
3* 
TABLE 2A : EC AID TO ASIA BY SECTOR (COMMITMENTS) 
MECU (rounded amounts) 
Programme Aid * 
Stabex 
Food Aid (Developmental) 
Humanitarian Aid 
Humanitarian aid excl rehabilitation 
Rehabilitation 
Aid to NGOs TOTAL 
1986-1990 
24 
24 
273 
86 
86 
46 1991 1992 1993 1994 1995 
0 
0 
69 
65 
65 100 
84 
84 56 
88. 
88 63 
90 
81 
9 98 
95 
83 
12 
13 14 20 20 23 TOTAL 
1991-1995 
0 
0 
386 
422 
401 
22 
91 
Natural Resources Productive Sectors 
Agriculture 
Forestry 
Fisheries 
Other Productive Sectors 
Industry, Mining & Construction 
Trade 
Tourism 
Investment Promotion 
Economic Infrastructure & Services 
Transport & Communications 
Energy 
Banking, Finance & Bus services 
Social Infrastructure & Services 
Education 
Health & Population 
Water Supply 
Other Social Infrastructure & Services 
Governance & Civil Society 
Multisector/Crosscutting 
Environment 
Women in Development 
Rural Development 
Other Multisector 
Unallocable by Sector 436 
401 
36 
22 
7 
7 
8 141 
141 
6 
2 
0 
4 47 
15 
32 
8 
1 
7 42 
14 
29 
14 
2 
«' 1 
11 86 
49 
37 
22 
3 
0 
18 115 
53 
61 ; 
24 
1 
23 431 
272 
159 
0 
74 
8 
3 
64 
93 31 44 35 33 94 236 
53 
19 
20 
31 
25 
4 
1. 
16 
236 
94 
142 9 
6 
16 
51 
6 
45 
1 
0 
4 
4 31 
13 
16 
5 
8 
2 
0 
108 
33 
0 
75 2 
2 
31 
160 
150 
5 
4 
1 
4 
71 
17 
54 9 
24 
62 
50 
12 
1 
4 
58 
1 
0 
57 1 
0 
93 
54 
19 
34 
1 
3 
154 
65 
37 
52 12 
49 
177 
344 
230 
104 
5 
6 
11 
395 
121 
37 
237 
103 48 13 14 37 114 
ASIA TOTAL 1366 383 470 504 451 696 2504 
3£ 
TABLE 2B : EC AID TO LATIN AMERICA BY SECTOR (COMMITMENTS) 
MECU (rounded amounts) 
Programme Aid TOTAL 
1986-1990 1991 1992 1993 1994 1995 TOTAL 
1991-1995 
Food Aid (Developmental) 131 55 48 56 50 52 261 
Humanitarian Aid 
Humanitarian aid excl rehabilitation 
Rehabilitation 
Aid to NGOs 54 
54 16 
16 22 
22 32 
32 59 
49 
10 59 
47 
12 188 
166 
22 
101 34 37 39 51 43 204 
Natural Resources Productive Sectors 
Agriculture 
Forestry 
Fisheries 
Other Productive Sectors 
Industry, Mining & Construction 
Trade 
Tourism 
Investment Promotion 
Economic Infrastructure & Services 
Transport & Communications 
Energy 
Banking, Finance & Bus services 
Social Infrastructure & Services 104 
76 
27 
76 
36 
34 
5 
36 
21 
15 16 
9 
7 
36 
31 
5 
6 
3 
4 68 
35 
20 
13 
17 
10 
7 
6 
6 70 
41 
21 
7 
18 
9 
9 12 
8 
5 
43 
31 
12 
7 
7 25 
22 
2 
56 
45 
10 
10 
3 
7 191 
115 
48 
27 
170 
126 
0 
43 
29 
13 
17 
113 25 35 40 20 103 223 
Education 
Health & Population 
Water Supply 
Other Social Infrastructure & Services 7 
44 
59 
4 24 
1 
1 17 
16 
1 15 
20 
6 2 
16 
2 68 
24 
11 2 
140 
61 
21 
Governance & Civil Society 10 10 15 14 21 70 
Multisector/Crosscutting 
Environment 
Women in Development 
Rural Development 
Other Multisector 59 
3 
56 49 
4 
39 
6 53 
2 
50 
1 65 
6 
4 
48 
8 66 
16 
5 
44 
1 58 
14 
21 
23 291 
42 
9 
202 
39 
Unallocable by Sector 227 38 42 66 69 58 273 
LATIN AMERICA TOTAL 906 286 338 401 390 486 1900 
3? 
TABLE 2C : EC AID TO ASIA BY SECTOR (DISBURSEMENTS) 
MECU (rounded amounts) 
Programme Aid * 
Structural Adjustment 
Stab ex 
Food Aid (Developmental) 
Humanitarian Aid 
Humanitarian aid excl rehabilitation 
Rehabilitation TOTAL 
1986-1990 
25 1991 1992 1993 1994 1995 TOTAL 
1991-1995 
24 
241 
45 
45 0 
107 
36 
36 108 
48 
48 
0 37 
59 
59 19 
23 
23 
0 57 
36 
36 
0 0 
328 
202 
202 
Aid to NGOs 34 20 13 15 15 18 81 
Natural Resources Productive Sectors 
Agriculture 
Forestry 
Fisheries 
Other Productive Sectors 
Industry, Mining & Construction 
Trade 
Tourism 
Investment Promotion 
Economic Infrastructure & Services 
Transport & Communications 
Energy 
Banking, Finance & Bus services 
Social Infrastructure & Services 
Education 
Health & Population 
Water Supply 
Other Social Infrastructure & Services 
Governance & Civil Society 
Multisector/Crosscutting 
Environment 
Womenin Development 
Rural Development 
Other Multisector 
Unallocable by Sector 0 
0 
4 
12 
0 
12 
0 
2 
0 
2 
536 0 
0 
4 
0 
0 
4 
2 
0 
2 
0 
1 
0 
1 
0 
0 
0 
0 
0 
86 0 
0 
0 
6 
0 
6 
5 
5 
0 
1 
0 
1 
0 
0 
0 
0 
0 
0 
114 0 
0 
0 
11 
' 0 
0 
11 
0 
0 
0 
0 
4 
0 
3 
0 
1 
1 
1 
1 
0 
0 
120 0 
0 
0 
13 
0 
0 
13 
0 
0 
0 
3 
0 
3 
0 
1 
0 
0 
0 
0 
154 2 
0 
2 
21 
0 
21 
0 
0 
0 
0 
6 
4 
0 
0 
210 55 
55 
7 
15 
1 
12 
2 
3 
2 
2 
684 
ASIA TOTAL 902 256 295 248 228 352 1379 
3s 
TABLE 2D : EC AID TO LATIN AMERICA BY SECTOR (DISBURSEMENTS) 
MECU (rounded amounts) 
Programme Aid * 
Structural Adjustment 
Stabex 
Food Aid (Developmental) TOTAL 
1986-1990 
113 1991 1992 1993 1994 1995 
57 52 40 23 25 TOTAL 
1991-1995 
197 
Humanitarian Aid 
Humanitarian aid excl rehabilitation 
Rehabilitation 38 
38 17 
17 21 
21 25 
25 18 
18 45 
43 
2 126 
124 
2 
Aid to NGOs 80 23 25 35 38 31 152 
Natural Resources Productive Sectors 
Agriculture 
Forestry 
Fisheries 
Other Productive Sectors 
Industry, Mining & Construction 
Trade 
Tourism 
Investment Promotion 
Economic Infrastructure & Services 
Transport & Communications 
Energy 
Banking, Finance & Bus services 
Social Infrastructure & Services 
Education 
Health & Population 
Water Supply 
Other Social Infrastructure & Services 31 
25 
6 
31 
25 
5 
10 
1 
3 
6 
35 
3 
14 
17 
1 17 
15 
2 
14 
7 
2 
5 
4 
1 
3 
0 
17 
1 
6 
10 
0 18 
11 
4 
3 
31 
18 
8 
5 
7 
3 
4 
0 
22 
0 
12 
9 
1 46 
32 
8 
6 
29 
13 
8 
8 
7 
7 
0 
0 
20 
1 
8 
10 
1 28 
16 
8 
4 
31 
16 
7 
8 
2 
2 
0 
0 
23 
2 
11 
9 
1 26 
12 
4 
10 
21 
6 
6 
9 
4 
4 
0 
32 
1 
18 
3 
10 135 
86 
24 
25 
126 
60 
31 
35 
24 
17 
7 
0 
114 
5 
55 
41 
13 
Governance & Civil Society 12 14 44 
Multisector/Crosscutting 
Environment 
Women in Development 
Rural Development 
Other Multisector 
Unallocable by Sector 23 
1 
22 
174 7 
1 
6 
0 9 
2 
0 
7 
0 17 
2 
0 
13 
2 22 
2 
0 
19 
1 32 
2 
1 
25 
4 
30 31 39 49 56 87 
9 
1 
70 
7 
205 
LATIN AMERICA TOTAL 535 195 228 272 234 281 1210 
15 
TABLE 3A : EC AID TO ASIA BY COUNTRY (COMMITMENTS) 
MECU (rounded amounts) 
Afghanistan 
Bangladesh 
Bhutan 
Cambodia 
China 
Hong Kong 
India 
Indonesia 
Irak 
Iran 
Laos 
Malaysia 
Nepal 
Pakistan 
Philippines 
Sri Lanka 
Thailand 
Vietnam 
Yemen 
Unallocable by country 
TOTAL ASIA TOTAL 
1986-1990 
14 
227 
8 
6 
118 
8 
471 
43 
5 
19 
1 
8 
85 
87 
28 
85 
9 
9 
147 
1378 1991 
4 
145 
6 
3 
21 
98 
13 
116 
2 
1 
1 
34 
6 
7 
8 
15 
7 
21 
508 1992 
19 
74 
6 
23 
8 
3 
41 
33 
3 
2 
4 
3 
78 
51 
9 
13 
27 
2 
76 
475 1993 
24 
67 
1 
15 
19 
2 
176 
6 
22 
5 
16 
3 
29 
49 
2 
9 
50 
15 
35 
545 1994 
37 
75 
0 
68 
38 
2 
43 
10 
23 
3 
17 
18 
26 
27 
4 
12 
27 
2 
44 
476 1995 
38 
98 
37 
61 
1 
103 
66 
30 
15 
30 
7 
52 
10 
11 
18 
4 
146 
727 TOTAL 
1991-1995 
122 
459 
13 
146 
146 
7 
462 
128 
194 
11 
52 
54 
175 
184 
32 
54 
138 
30 
322 
2731 
TABLE 3B : EC AID TO LATIN AMERICA BY COUNTRY (COMMITMENTS) 
MECU (rounded amounts) 
Argentina 
Bolivia 
Brazil 
Chile 
Columbia 
Costa Rica 
Cuba 
Ecuador 
El Salvador 
Guatemala 
Honduras 
Mexico 
Nicaragua 
Panama 
Paraguay 
Peru 
Uruguay 
Venezuela 
Regional 
Unallocable by country 
TOTAL LATIN AMERICA TOTAL 
1986-1990 
9 
107 
25 
40 
29 
8 
12 
29 
36 
37 
26 
19 
66 
5 
4 
95 
4 
2 
144 
205 
902 1991 
3 
21 
13 
19 
10 
1 
5 
13 
14 
18 
3 
8 
23 
0 
14 
37 
3 
1 
16 
62 
284 1992 
4 
42 
24 
25 
23 
2 
7 
3 
55 
15 
11 
9 
27 
1 
1 
32 
3 
2 
6 
44 
336 1993 
3 
34 
18 
20 
17 
11 
14 
13 
44 
29 
2 
7 
25 
7 
5 
45 
2 
13 
49 
42 
400 1994 
6 
7 
30 
13 
11 
2 
22 
21 
17 
55 
16 
13 
56 
1 
17 
60 
4 
3 
20 
15 
389 1995 
18 
35 
27 
18 
15 
5 
31 
21 
22 
34 
31 
7 
61 
21 
5 
58 
14 
22 
28 
14 
487 TOTAL 
1991-1995 
34 
139 
111 
94 
77 
20 
79 
71 
152 
151 
63 
44 
192 
29 
42 
232 
26 
41 
119 
177 
1896 
v« 
TAB^E 3C : EC AID TO ASIA BY COUNTRY (DISBURSEMENTS) 
MECU (rounded amounts) 
TOTAL 1991 
1986-1990 1992 1993 1994 1995 TOTAL 
1991-1995 
Bangladesh 
Bhutan 
Cambodia 
China 
India 
Indonesia 
Laos 
Nepal 
Pakistan 
Philippines 
Sri Lanka 
Thailand 
Vietnam 
Yemen 
Unallocable by 
TOTAL ASIA country 130 
5 
4 
88 
300 
38 
7 
14 
52 
28 
29 
79 
8 
16 
104 
902 53 
2 
3 
32 
30 
10 
2 
3 
38 
13 
7 
21 
12 
7 
26 
258 64 
5 
16 
21 
50 
9 
2 
2 
40 
13 
3 
19 
14 
9 
28 
294 62 
3 
15 
16 
31 
10 
3 
4 
19 
6 
6 
8 
12 
4 
50 
248 47 
2 
7 
8 
46 
11 
5 
3 
14 
18 
5 
11 
17 
2 
27 
224 101 
2 
18 
20 
45 
18 
"8 
2 
10 
30 
4 
18 
17 
9 
46 
347 326 
13 
59 
97 
202 
57 
20 
14 
121 
80 
25 
77 
71 
31 
178 
1371 
TABLE 3D : EC AID TO LATIN AMERICA BY COUNTRY (DISBURSEMENTS) 
MECU (rounded amounts) 
Argentina 
Bolivia 
Brazil 
Chile 
Columbia 
Costa Rica 
Cuba 
Ecuador 
El Salvador 
Guatemala 
Honduras 
Mexico 
Nicaragua 
Panama 
Paraguay 
Peru 
Uruguay 
Venezuela 
Regional 
Unallocable by country 
TOTAL LATIN AMERICA TOTAL 
1986-1990 
0 
60 
23 
35 
10 
13 
9 
14 
16 
20 
13 
13 
43 
0 
5 
46 
2 
2 
42 
170 
536 1991 
0 
21 
8 
11 
5 
3 
7 
8 
10 
11 
9 
5 
17 
0 
0 
22 
0 
0 
7 
49 
194 1992 
0 
24 
12 
11 
5 
5 
6 
5 
16 
7 
2 
5. 
21 
1 
2 
27 
2 
0 
21 
55 
228 1993 
0 
22 
13 
15 
11 
5 
11 
7 
34 
13 
10 
6 
16 
2 
4 
27 
0 
1 
21 
54 
272 1994 
0 
22 
19 
13 
9 
3 
2 
7 
20 
14 
5 
10 
18 
3 
3 
32 
0 
2 
17 
48 
246 1995 
0 
16 
12 
9 
12 
7 
15 
8 
18 
17 
5 
7 
23 
2 
7 
34 
0 
3 
33 
47 
275 TOTAL 
1991-1995 
0 
105 
64 
59 
41 
23 
41 
36 
99 
62 
30 
33 
95 
8 
16 
142 
2 
6 
99 
253 
1215 
<H 
Financial and Technical 
Cooperation 
Total A 
Economic Co-operation 
Economic co-operation 
ECIP 
Science and Technology 
Scientific Co-operation 
Energy Co-operation 
Total B 
Humanitarian 
Assistance 
Refugees 
Rehabilitation 
Drugs 
Food Aid 
Emergency Relief 
Aids 
Total C 
Other 
Environment 
Tropical Forests 
Women in Development 
Other (n.c.s.) 
Total D 
Total Budget 
line 
73000 
73001 
75000 
66224 
68371 
41041 
73920 
75076 
75080 
720(H) 
72010 
75046 
75040 
75041 
75051 1990 
225.05 
225.05 
2.79 
2.88 
1.07 
7.32 
0.21 
14.27 
18.99 
... 
1.59 
82.20 
... 
0.21 
103.37 
0.1.1 
... 
34.76 
34.89 
377.58 Tahlc 4 
Asia: Commitments (MEcus) 
1991 
210.85 
210.85 
11.99 
5.49 
... 
3.97 
1.12 
22.57 
28.88 
... 
3.79 
74.94 
... 
1.12 
107.61 
0.04 
... 
30.00 
30.04 
371.07 1992 
211.22 
211.22 
13.45 
10.00 
3.97 
3.73 
1.51 
32.66 
62.17 
... 
4.99 
110.81 
1.05 
1.51 
178.02 
0.53 
8.73 
0.08 
35.34 
44.68 
469.39* 1993 
3)0.62 
310.62 
49.41 
12.56 
2.31 
11.71 
1.00 
76.99 
43.37 
... 
1.67 
18.02 
14.00 
1.00 
77.06 
2.46 
11.76 
37.79 
52.01 
520.80 1994 
276.73 
276.73 
42.21 
... 
4.05 
4.51 
0.91 
51.69 
37.07 
10.00 
2.33 
12.00 
... 
0.91 
61.40 
0.80 
9.64 
0.04 
72.70 
83.18 
479.53 1995 
366.29 
366.29 
57.47 
... 
... 
... 
... 
57.47 
38.17 
11.50 
2.16 
84.74 
12.70 
... 
149.27 
3.17 
42.21 
45.38 
618.41 1991-95 
137571 
1375.71 
174.44 
28.05 
10.33 
23.92 
4.54 
241.28 
209.66 
21.50 
15.05 
300.51 
26.75 
4.54 
586.93 
3.83 
33.30 
0.12 
218.04 
255.79 
2203.93 
Note : Commission estimates - these figures are approximations and should only be considered as representing the 
orders of magnitude of the amounts committed under the budget lines specified. 
f3L 
Tabic 5 
EC Commitments to Asia under the ALA Reg 443/92. 
Budget Lines B 73000 and B 73001 (Mccus) 
Budget 1990 1991 1992 1993 1994 1995 1991-95 
line 
Financial and Technical 73000 225.05 210X5 211.22 310.62 276.73 366.29 1375.71 
Cooperation 
Economic Co-operation 73001 2.79 11.99 13.45 49.41 42.21 57.47 174.44 
Total 227.84 222.84 224.67 360.03 360.03 318.94 1550.25 
Note : Commission estimates - these figures arc approximations and should only be considered as representing the 
orders of magnitude of the amounts committed under the budget lines specified. 
Note: This Tabic and Table 7 provide data on commitments for those Budget lines for which the ALA Regulation 
forms the legal basis. 
Hi 
Financial and Technical 
Cooperation 
Total A 
Economic Co-operation 
Economic co-operation 
ECIP 
Science and Technology 
Scientific Co-operation 
Energy Co-operation 
Other (n.e.s.) 
Total B 
Humanitarian Assistance 
Refugees 
Rehabilitation 
Drugs 
Food Aid 
Emergency Aid 
Aids 
Other (n.e.s.) 
Total C 
Other 
Environment 
Tropical Forests 
Women in Development 
Démocratisation 
Other (n.e.s.) 
Total D 
Total Budget 1990 
line 
73100 
73110 
78720 
66224 
68371 
41041 
72120 
76410 
76210 
72000 
72010 
76211 
76200 
76201 
75051 
77030 Table 6 
Latin America: Commitments (IMEcus) 
1991 1992 1993 1994 
10.3.78 134.28 152.52 168.20 203.06 
14.77 
4.49 
3.67 
7.92 
0.84 
3.52 
11.96 
1.46 
62.74 
0.32 
0.83 
28.00 
1.99 
9.99 
1.00 
12.98 
257.28 1995 
231.57 
20.33 
3.66 
1.85 
9.30 
0.69 
3.46 35.28 
5.93 
2.19 
11.79 
1.23 
2.61 46.60 
8.54 
2.01 
16.57 
1.04 
3.59 
35.21 ^9.29 59.03 78.35 
15.62 
2.89 
60.16 
2.86 
1.16 
38.71 19.28 20.00 
4.04 
56.78 
2.10 
0.50 
45.36 4.91 
49.16 
12.25 
1.34 
50.54 46.60 
11.47 
4.15 
14.76 
0.51 
3.07 
80756 
27.77 
9.82 
3.10 
22.43 
21.51 
3.36 
60.04 56.00 
9.79 
6.45 
72.24 
20.00 
10.90 
2.64 
47.86 
28.13 
5.62 
43.38 
3.35 
9.99 
1.01 
14.35 
309.32 1.85 
20.23 
9.99 
1.40 
33.47 
373.08 5.92 
22.08 
15.00 
1.89 
44.89 
429.64 2.17 
22.10 
0.32 
13.00 
3.22 
40.81 
472.46 3.51 
35.69 
0.36 
14.00 
3.71 
57.27 
519.61 1991-95 
899.63 
103.78 134.28 152.52 168.20 203.06 231.57 899.63 
204.81 
39.39 
10.20 
52.42 
3.47 
19.18 
329.47 
102.67 
20.72 
17.58 
236.39 
66.85 
11.98 
238.03 
105.31 121.40 128.06 138.20 148.03 158.53 694.22 
16.80 
100.10 
0.68 
61.98 
11.23 
190.79 
2104.11 
Note : Commission estimates - these figures are approximations and should only be considered as representing the 
orders of magnitude of the amounts committed under the budget lines specified. 
^ 
Table 7 
EC Commitments Commitments to Latin America under the ALA Reg 443/92. 
Budget Lines B 73100 and B 73110 (Mccus) 
Budget 1990 1991 1992 1993 1994 1995 1991-95 
line 
Financial and Technical 73100 10.3.78 134.28 152.52 168.20 203.06 231.57 899.63 
Cooperation 
Economic Co-operation 73110 14.77 20.33 35.28 46.60 46.60 56.00 204.81 
Total 118.55 154.61 187.80 214.80 249.66 287.57 1104.44 
Note : Commission estimates - these figures arc approximations and should only be considered as representing the 
orders of magnitude of the amounts committed under the budget lines specified 
^ 



ISSN 0254-1475 
COM(98) 40 final 
DOCUMENTS 
EN 11 01 02 
Catalogue number : CB-CO-98-040-EN-C 
ISBN 92-78-30391-7 
Office for Official Publications of the European Communities 
L-2985 Luxembourg 
^L