EN    EN EN 
EN    EN  COMMISSION OF THE E UROPEAN COMMUNITIES 
Brussels, 23.06.2008 
SEC(2008)2062 
  
COMMISSION STAFF WORKING DOCUMENT 
Annex to the  
REPORT FROM THE COMMISSION TO  THE COUNCIL AND THE EUROPEAN 
PARLIAMENT 
Annual Report 2008 on the European Community's Development and External 
Assistance Policies and thei r Implementation in 2007 
(COM(2008)379) 
EN 2   EN TABLE OF CONTENTS 
COMMISSION STAFF WORKING DOCUMENT Annex to the ............................................ 1 
REPORT FROM THE COMMISSION TO  THE COUNCIL AND THE EUROPEAN 
PARLIAMENT Annual Report 2008 on the Eu ropean Community's Development and 
External Assistance Policies and their Implementation in 2007 ................................................ 1 
1. POLICY ...................................................................................................................... .6  
1.1. Introduction.............................................................................................................. .... 6 
1.2. Annual Policy Objectives............................................................................................. 7 1.3. Implementation of the European Consensus on Development .................................... 8 1.4. Coherence between development and other policies ................................................... 9 1.5. Mainstreaming of cross-cutting issues....................................................................... 12 1.6. Aid effectiveness and co-financing............................................................................ 15 1.7. Partnership with United Nations and World Bank..................................................... 19 
1.8. Poverty focus in middle-income countries................................................................. 23 1.9. Sectoral policy / strategy developments..................................................................... 24 1.9.1. ENP ..................................................................................................................... ....... 31 
1.9.2. Aid for Trade........................................................................................................... ... 31 
1.10. Outlook 2008 (conclusions and perspectives)............................................................ 32 2. IMPLEMENTATION................................................................................................ 34 2.1. European Neighbourhood and Partnership ................................................................ 34 2.1.1. Bilateral cooperation .................................................................................................. 3 4 
2.1.1.1. Introduction.......................................................................................................... ...... 34 
2.1.1.2. Aid effectiveness and donor coordination.................................................................. 36 2.1.1.3. Working towards the MDGs ...................................................................................... 37 2.1.1.4. Regional cooperation and integration ........................................................................ 37 2.1.1.5. Implementation ........................................................................................................ .. 38 
2.1.1.6. Monitoring............................................................................................................ ...... 43 
2.1.1.7. Perspectives.......................................................................................................... ...... 44 
2.1.2. Cross-Border cooperation (CBC)............................................................................... 45 2.2. European Development Fund..................................................................................... 46 
EN 3   EN 2.2.1. Introduction............................................................................................................ .... 46 
2.2.2. Africa.................................................................................................................. ........ 48 
2.2.2.1. Introduction.......................................................................................................... ...... 48 
2.2.2.2. Aid effectiveness and donor coordination.................................................................. 49 2.2.2.3. Working towards the MDGs ...................................................................................... 49 2.2.2.4. Regional cooperation and integration ........................................................................ 50 2.2.2.5. Implementation ........................................................................................................ .. 51 
2.2.2.6. Monitoring............................................................................................................ ...... 52 
2.2.2.7. Perspectives.......................................................................................................... ...... 52 
2.2.3. Caribbean (incl. OCTs) .............................................................................................. 54 2.2.3.1. Introduction.......................................................................................................... ...... 54 
2.2.3.2. Aid effectiveness and donor coordination.................................................................. 55 2.2.3.3. Working towards the MDGs ...................................................................................... 55 2.2.3.4. Regional cooperation and integration ........................................................................ 56 2.2.3.5. Implementation ........................................................................................................ .. 56 
2.2.3.6. Monitoring............................................................................................................ ...... 56 
2.2.3.7. Perspectives.......................................................................................................... ...... 57 
2.2.4. Pacific (incl. OCTs) ................................................................................................... 5 9 
2.2.4.1. Introduction.......................................................................................................... ...... 59 
2.2.4.2. Aid effectiveness and donor coordination.................................................................. 59 2.2.4.3. Working towards the MDGs ...................................................................................... 60 2.2.4.4. Regional cooperation and integration ........................................................................ 60 2.2.4.5. Implementation ........................................................................................................ .. 61 
2.2.4.6. Monitoring............................................................................................................ ...... 61 
2.2.4.7. Perspectives.......................................................................................................... ...... 62 
2.2.5. Global Programmes.................................................................................................... 64 
2.3. Development Cooperation Instrument ....................................................................... 65 
2.3.1. Asia .................................................................................................................... ........ 65 
2.3.1.1. Introduction.......................................................................................................... ...... 65 
2.3.1.2. Aid effectiveness and donor coordination.................................................................. 66 2.3.1.3. Working towards the MDGs ...................................................................................... 67 
EN 4   EN 2.3.1.4. Regional cooperation and integration ........................................................................ 68 
2.3.1.5. Implementation ........................................................................................................ .. 69 
2.3.1.6. Monitoring............................................................................................................ ...... 70 
2.3.1.7. Perspectives.......................................................................................................... ...... 71 
2.3.2. Central Asia............................................................................................................ .... 72 
2.3.2.1. Introduction.......................................................................................................... ...... 72 
2.3.2.2. Aid effectiveness and donor coordination.................................................................. 73 2.3.2.3. Working towards the MDGs ...................................................................................... 73 2.3.2.4. Regional cooperation and integration ........................................................................ 73 2.3.2.5. Implementation ........................................................................................................ .. 74 
2.3.2.6. Monitoring............................................................................................................ ...... 74 
2.3.2.7. Perspectives.......................................................................................................... ...... 75 
2.3.3. Middle-East............................................................................................................. ... 76 
2.3.3.1. Introduction.......................................................................................................... ...... 76 
2.3.3.2. Implementation ........................................................................................................ .. 76 
2.3.4. Latin America........................................................................................................... .. 78 
2.3.4.1. Introduction.......................................................................................................... ...... 78 
2.3.4.2. Aid effectiveness and donor coordination.................................................................. 79 2.3.4.3. Working towards the MDGs ...................................................................................... 79 2.3.4.4. Regional cooperation and integration ........................................................................ 80 2.3.4.5. Implementation ........................................................................................................ .. 80 
2.3.4.6. Monitoring............................................................................................................ ...... 83 
2.3.4.7. Perspectives.......................................................................................................... ...... 84 
2.3.5. South Africa ............................................................................................................ ... 85 
2.3.5.1. Introduction.......................................................................................................... ...... 85 
2.3.5.2. Aid effectiveness and donor coordination.................................................................. 85 
2.3.5.3. Working towards the MDGs ...................................................................................... 86 
2.3.5.4. Regional cooperation and integration ........................................................................ 86 2.3.5.5. Implementation ........................................................................................................ .. 86 
2.3.5.6. Monitoring............................................................................................................ ...... 87 
2.3.5.7. Perspectives.......................................................................................................... ...... 87 
EN 5   EN 2.3.6. Accompanying measures for S ugar Protocol countries ............................................. 89 
2.3.7. Investing in people ..................................................................................................... 90 
2.3.8. Non-State actors and local authorities in development.............................................. 92 2.3.9. Migration and asylum ................................................................................................ 93 2.3.10. Environment and sustainable management of natural resources including energy ... 94 
2.3.11. Food security.......................................................................................................... .... 95 
2.4. Democracy and Human Rights .................................................................................. 98 2.5. Stability ................................................................................................................. ... 104 
2.5.1. Crisis response and preparedness............................................................................. 104 2.5.2. Global and regional tran s-border challenges............................................................ 106 
2.6. Nuclear Safety.......................................................................................................... 11 1 
2.7. Humanitarian Assistance.......................................................................................... 114 2.8. Macro-financial assistance....................................................................................... 117 3. FEATURE ARTICLES............................................................................................ 118 4. RESULTS ................................................................................................................ 128 4.1. Project results: Results-Or iented Monitoring (ROM).............................................. 128 
4.2. Evaluation: review of the 2007 work programme.................................................... 131 4.2.1. Organisation of the evaluation function................................................................... 131 4.2.2. The 2007 work programme...................................................................................... 132 4.2.3. Lessons learned from evaluations finalised in 2007 ................................................ 133 4.2.4. Synthesis of main lessons learned............................................................................ 136 4.2.5. Outlook for 2008...................................................................................................... 13 6 
5. AID MANAGEMENT............................................................................................. 136 5.1. Developments in aid delivery modalities and channels ........................................... 136 5.2. Progress on qualitative issu es in aid management ................................................... 140 
5.3. Cooperation with international organisations and other donors .............................. 142 
5.4. Simplification of procedures.................................................................................... 144 
5.5. Visibility and communication.................................................................................. 145 6. ANNEXES ............................................................................................................... 145 6.1. Introduction to financial tables................................................................................. 145 6.2. Financial tables......................................................................................................... 1 48 
EN 6   EN 1. POLICY 
1.1. Introduction 
2007 marked a major achievement within the framework of the external actions of 
the European Union as the Presidents of the European Commission, European 
Parliament and Council of th e European Union signed the European Consensus on 
Humanitarian Aid . This agreement further refines and consolidates the EU’s 
humanitarian policy by affirming a common EU vision and a practical approach for 
helping millions of people worldwide who su ffer from conflicts and natural disasters. 
It was the first year of the implementation of the new Financial Perspectives and the 
implementation of the new external acti on instruments for the delivery of EC 
assistance for the period 2007-2013 as well as the programming of the 10th European 
Development Fund, which covers the ge ographical cooperation with the ACP 
countries and the Overseas Countries and Territories. 
In July, the Development Assistance Co mmittee (DAC) of the OECD issued a 
review of the aid policies and programmes of the Europ ean Commission – including, 
for the first time, humanitarian aid1. The Peer Review team, led by the United States 
and Australia, recognised the unique contribution made by the European 
Commission; as a federator of aid from the 27 EU Memb er States, which accounts 
for more than half of all Official Devel opment Assistance (ODA), as well as the sixth 
largest donor. 
In terms of greater public development aid and aid for trade commitment 
compliance, the European Union is on the right track, despite a slight decrease in 
total aid in 2007. Giving 60% of total ai d, the EU is committed to continue 
increasing its contribution effort while consolidating its status as the world's leading donor. “Aid for Trade” clarifies the EU’s strategy to deliver on its 2005 promises 
made at the World Trade Organisation (WTO ) Ministerial in Hong Kong to increase 
its spending on Trade-Relate d Assistance, beginning in 2010,  to €2 billion per year – 
which will include €1 billion from the Co mmunity aid budget and €1 billion in 
bilateral aid from the Member States. 
To render EU development policy more efficient, the Commission and Member 
States adopted a Code of Conduct, which cont ains ten principles for a better division 
of labour among EU donors in developing countries. The implementation of the 
Consensus has also been advanced by an EU Report on Policy Coherence for Development (PCD) and Communications on gender
2, and on State Fragility3. The 
European Union's first Report on Policy Coherence for Development (PCD) was 
adopted in September and highlights the interaction and the complementarities 
between development policy and twelve other internal and external EU policies that 
impact developing countries. A Communication entitled European Agenda for 
                                                 
1 DCD/DAC/AR(2007)2/EC/PART1/FINAL and DCD/ DAC/AR(2007)2/EC/PART2/FINAL of 4 and 9 
July 2007 respectively 
2 COM(2007)100 final 
3 COM(2007)643 final 
EN 7   EN Culture in a globalizing world4 highlights the role of cultu re within both Europe and 
EU external relations. 
The implementation of the European Neighbourhood Policy (ENP), which was 
discussed in September during the first EN P Ministerial Conference by all EU and 
ENP states and more than 700 participan ts representing the governmental sector, 
non-governmental organisations and busin ess groupings, made important progress.  
The adoption of the Joint Africa-EU Strategy at the Lisbon Summit on 9 December 
together with its first Action Plan confir med the long-standing EU-Africa partnership 
to new realities, new challenges and new oppor tunities and thus es tablishes clear and 
measurable priorities for 2008-2010 that wi ll serve as a common roadmap for action. 
1.2. Annual Policy Objectives 
In 2007, the Commission's external action was geared towards achieving the 
following five objectives:  
• Establish a renewed market access strategy  that addresses trade barriers and create 
new openings for trade and investment  worldwide while taking into account 
competitiveness, social and environmental concerns; 
• Conclude negotiations on Economic Partne rship Agreements, which represent a 
cornerstone for the regional integrati on of the ACP countries and for their 
development; 
• Reinforce the European Neighbourhood Policy  in areas that support deeper 
economic and trade integration, greater mobility for ENP citizens in the EU, and a Neighbourhood Investment Fund. Set out  proposals for successor arrangements 
with Ukraine, Moldova and Israel, w hose Action Plans expire in 2008. Make 
proposals for enhanced EU presence in Black Sea cooperation, including regional 
ENP partners as well as Russia and Turkey;  
• Negotiate Association Agreements with several major partners in Asia and Latin 
America, while making progress in the negot iations with major strategic partners 
such as Russia, China and Ukraine; 
• Continue to implement the European Security Strategy , in the area of human 
security in particular. Con tinue stabilisation efforts in the Middle East and in 
South Asia. 
As documented throughout this report, cons iderable progress was made in each of 
these areas. Moreover, the Commission also  made progress in the following fields, 
for which it had announced stra tegic initiatives in 2007: 
• Establish Erasmus Mundus 2009-2013, a programme promoting cooperation 
between higher education institutions and the mobility of students, researchers and 
                                                
 
4 Joint Communication of Commission Directorates General Education and Culture, Development and 
External Relations. COM(2007)242 final 
EN 8   EN academic staff between the EU and third countries. The programme also aims at 
fostering intercultural unde rstanding and improving quali ty in higher education; 
• Prepare a Communication on complementarity , division of labour and scaling up 
of development aid; 
• Prepare a Communication reviewing the cu rrent condition of EU-Africa relations 
(including the EU Strategy for Africa and the Joint EU-Africa Strategy). 
1.3. Implementation of the Europe an Consensus on Development 
The European Consensus on Development provides a strategic foundation for EU 
development cooperation that is firm and c oherent. It integrates the commitments of 
the international community; it states its support for the Mi llennium Development 
Goals (MDGs); and it reflects global change s and challenges, particularly in relation 
to security, migration and the so cial dimension of globalisation. 
The Consensus provides a common visi on of development policy for both the 
Member States and the European Community  (EC). It shows the way to improve the 
interaction between individual Member States ' aid and that of the EC. It reflects a 
greater involvement of all EU  institutions in the formul ation of this common policy 
vision. With regard to the geographical scope of the Cons ensus, it guides EC and 
Member State development cooperation act ivities in all developing countries. 
The Commission has ensured that the objectiv es and principles of the Consensus are 
expressed in the regional strategies. In 2007, the Commission elaborated regional and 
country strategies for all ACP countries  for the period 2008-2013. These regional and 
country strategy papers were developed in compliance with the Consensus. Key 
pillars of this process, even when success in implementing these guiding principles is 
uneven, include country ownership; al ignment with national development 
programmes and strategies, non-state actor and local authority participation; and 
Commission and Member State joint analysis of the political, social and governance 
situations. The implementation of the Consen sus was also taken a step further with 
the issuing of a strategy to address situat ions in fragile states with appropriate 
approaches and instruments. 
A new EU-Africa Partnership was adopted at the Lisbon Summit in December. This 
new partnership is a true measure of th e European Consensus and further deepens 
EU-Africa relations. Indeed, the deepening of the political dialogue  (on issues such 
as migration, and peace and security, to name  but a few) as well as the variety of the 
areas covered (on issues such as educati on, research, information technology, space) 
attest to a broader rela tionship between the EU a nd its African partners. 
Responding to the call for more coordina tion and harmonisation between EU donors, 
the Commission proposed to the Member States a Code of Conduct for the division of labour. The Code adopted by the Council pr esents principles for determining best 
use of the collective capaci ties and resources of the EU  in support of partner 
countries. These innovations form an importa nt milestone in the implementation of 
the Paris Declaration on Aid Effectiveness. Treaty reform, as recently agreed, should 
facilitate their gradual implementation in the coming years. 
EN 9   EN Finally, the EU's commitments to the M DGs have been reaffirmed in 2007; in 
particular through the Commission's support to the UN Secretariat General's MDGs 
Initiative, together with several other mu ltilateral institutions. The EU is preparing 
for a series of important ev ents in 2008 that should prov ide internati onal political 
momentum to renew efforts towards meeting the MDGs commitments by 2015. 
1.4. Coherence between development and other policies 
To advance the implementation of the Eu ropean Consensus, in September the 
Commission issued the first ever EU Report on Policy Coherence for Development5. 
Beyond the Consensus, the policy framework that served as a reference for this 
report was set in 2005, as part of the pack age of measures to accelerate progress 
towards the MDGs6. The report reviews progress made  in strengthening coherence 
between twelve policie s that affect developing count ries and EU development policy 
objectives, and identifies outstanding issues7. 
Indeed, policies other than  development cooperation have a strong impact on 
developing countries. What’s more, the EU concept of Policy Coherence for 
Development, enshrined in the Treaty a nd reinforced by the European Consensus, 
aims to build synergies between those polic ies and development objectives. This in 
turn will serve to increase the effectiveness of development aid. Ensuring that these resources are not wasted or used ineffici ently as a result of policy incoherence is 
crucial, especially when considering the EU's commitment to increase official development assist ance substantially. 
EU trade policy provides developing count ries a favourable market access regime. 
Specifically, the EU’s market access regi me offers Most-Favoured Nation (MFN) 
import duty rates of 4% for non-agricultu re products and 18.6% for agriculture 
products,
8 for an overall average of just 6.9%. In the context of the EU Generalised 
System of Preferences (GSP) exports from developing countries enjoy a zero percent 
duty rate or receive a 3.5 percentage point  discount on this rate  (see section on GSP 
below). Under the Everything But Arms (EBA ) initiative, this m eans that goods from 
Least Developed Countries (LDCs) enjoy tariff- and quota-free access to the EU 
market. Moreover, the EU grants duty-free treatment for the vast majority of ACP 
exports since the Lomé Convention entered into force in 1975 and this has been further extended with the EPAs. 
The most generous tariff preferences for developing countries ar e those granted to 
LDCs (under EBA) and ACP countries ( under the Cotonou trade regime in 2006-07 
and since January 2008 under the EPA Ma rket Access Regulation). Developing 
countries enjoy important tariff preferences , especially on th e European market. 
                                                
 
5
 http://ec.europa.eu/development/icenter/ repository/CONS_COMM_PDF_COM_2007_0545_F
_ACTE_en.pdf 
6 Commission Communication on 'Policy Coherence fo r Development – Accelerating progress towards 
attaining the Millennium Development Goals' – COM( 2005) 134 final of 12 April 2005 and May 2005, 
General Affairs and External Relations Council (GAERC) Conclusions on the Millennium 
Development Goals (Doc. 9266/05). 
7 Trade, Environment, Climate change, Security, Agriculture, Fi sheries, Social dimension of 
globalisation, Migration, Research, In formation Society, Transport, Energy 
8 WTO European Communities Trade Policy Review 2007. 
EN 10   EN Even so, it is important to note that the sh are of the poorest countri es in international 
trade remains marginal, while their relative share in imports to the EU has fallen in 
the face of competition from other countries, and, in particular, from other developing countries. Therefore, to facilitate  their closer integration into the world 
economy, it is important not only to reduce ma rket access barriers, but also to take 
into account and to address a range of othe r factors that include those relating to the 
competitiveness and supply side capacity of individual developing countries. 
EU trade policy is multi-dimensional – multilateral, regional/bilateral and 
autonomous. Yet, under each of these dimensi ons, EU trade policy includes elements 
that respond to the particular needs of de veloping countries and support their further 
development and beneficial integration into the global trading system, including 
through achieving improved performance w ithin the EU market. Accordingly, 
examples of how the EU pursues its pro- development policy objectives can be found 
at all levels: multilaterally, through the WT O negotiations; regionally and bilaterally, 
through the negotiation of trade agreements with other countries or regions such as 
the EPAs with the ACP countries and s upport to developing countries' own regional 
integration processes; and unilaterall y, through the Generalised System of 
Preferences. The EU is also very actively engaged in the provision of Aid for Trade 
to developing countries to support them in  overcoming the challenges of integration 
both at the regional and global level. In this context, regional integration offers one 
important way toward improving the posi tion of developing countries and their 
ability to compete in international market s by creating larger regional markets and by 
improving the general business environment. This is particularly important for the 
poorest countries as these efforts can improve  their international competitiveness by 
attracting more investment and by placing them  in a better position to take advantage 
of emerging market opportuni ties in non-traditio nal export markets, including those 
of other developing countries. 
In agriculture, the EU has come a l ong way in making its Common Agricultural 
Policy more development-friendly. With lo w or zero tariffs on most products, access 
to the EU market is generally favourable to developing countries. Important progress 
was made through successive reforms on expo rt subsidies as well as the distorting 
effects on markets of domes tic agricultural subsidies. EU development cooperation 
supports agricultural and rural de velopment in Africa particularly. 
On the fisheries front, a ne w generation of Fisheries Pa rtnership Agreements should 
lead to the replacement of  all existing fishery agr eements by 2008. The principal 
objective of the new generation of agreemen ts is to move beyond merely securing 
European fleet access, but to introduce responsible and sust ainable fishing by 
supporting the fishery policies of partner c ountries also. While progress has been 
measured already, further improvements ar e possible – in the evaluation of fish 
stocks in developing countri es in particular. In addi tion, the financial envelopes 
linked to the Fisheries Partnership Agreemen ts can be substantial, and the use of 
such funds needs to be monitored so as to  ensure that local fishery activities are 
supported. Likewise, the control, monitori ng, and surveillance systems that counter 
illegal, unreported, and unregulated fishing will continue to require further international cooperation. 
As for climate change, all efforts deployed under the ambitious EU climate policy 
will directly benefit the poorest and most vulnerable developing countries as these 
EN 11   EN policies look toward the long term goal of limiting temperature change to an average 
of 2°C relative to pre-industrial levels. Pa rtner countries will also benefit from the 
positive externalities of scientific research programmes and investments in appropriate technologies.  
Further investigation and pr oactive measures are needed, however, to avoid the 
potential negative effects of the EU bio-fuels policy. Improvements toward 
integrating climate change concerns into  the policy dialogue between the EU and 
developing countries are needed. Increased  support for adaptation in development 
cooperation programmes is similarly neede d. The Commission proposal to establish 
a Global Climate Change Alliance (GCCA ) between the EU and its developing 
country partners, particularly the most vulne rable ones, is an important step in that 
direction
9. This was the main topic of the "European Development Days" conference 
that was organised in Lisbon last November. 
As for security,  the EU deploys a broad range of instruments for both security and 
development. In the recent past, the EU ha s been strengthening th e links between the 
two, but the diversity of contexts and situati ons as well as the complexity of the EU's 
institutional setting as a security actor c onstitute important challenges. Active efforts 
include integrating conflic t prevention in developmen t cooperation, addressing 
situations of fragility, promoting transparency and equity in the management of natural resources, supporting disarmament, demobilisation and reintegration and security sector reform, controlling arms e xports and the illicit trafficking of small 
arms, human beings, narcotics and expl osives. However, to respond to the 
requirements of the African continent fu rther efforts are needed and concrete 
initiatives are considered through a package of development and security measures in 
the framework of the EU-Africa partnership. 
In energy, the EU is engaged in several ma jor initiatives to s upport the provision of 
adequate, affordable and sustainable energy services in developing countries, most 
notably the EU Energy Initiative for Poverty Eradication and Sustainable Development and the EU-Africa Partnershi p on Energy. The new energy policy for 
Europe, that aims to deliver sustainable, secure and competitive energy to all EU 
Member States, also aims to integrate Eu rope's energy and development policies into 
a win-win approach. Developing countries, pa rticularly in Africa, will benefit from 
the EU's efforts to diversify energy s upply and to develop energy-efficient and 
renewable energy technologies. 
Finally, to meet development ambitions in  general and the MDGs in particular, 
capacity building and international cooperati on in science and technology are viewed 
as policy areas of pivotal importance. On  the one hand, science and technology need 
to be approached in connection with education and investment in innovation 
capacities, while on the other, sectoral pol icy areas such as demographics, food and 
agriculture, health, environment, sustai nable energy, ICTs, and trade should be 
linked. Likewise, promoting 'brain circulation'  rather than 'brain drain' and capacity 
building in research and technology to in crease access to research programmes for 
developing countries are tw o areas in which policy cohe rence for development can 
be further enhanced. In addition, the di fferent thematic areas of the Research 
                                                
 
9 See also feature article The challenge of reconciling MDGs and the fight against climate change  
EN 12   EN Framework Programme (RFP) include spec ific international cooperation actions 
(SICAs) that can address the particular need s of developing countries on the basis of 
mutual interest and mutual benefit. I ndeed, the complete opening of the seventh 
Research Framework Programme (2007- 2013) to third countries, including 
developing countries, can help strengthen the capaciti es of the participating 
countries. It will be toward these ends that  the Commission will c ontinue to work to 
encourage greater synergies between di fferent policies and instruments, and 
development objectives in 2008. 
1.5. Mainstreaming of cross-cutting issues 
Democratic governance 
Democratic governance is not only an end in itself, it is also crucial for sustainable 
development in sectors such as education, ju stice, transport, water, and health, and 
thus for the timely achievement of the M DGs. Indeed, democratic governance is vital 
for efficient service delive ry. The Commission is ther efore committed strongly to 
promote and to support the efforts of pa rtner countries to improve democratic 
governance within all sectors of each of their respective societies. This is done by 
supporting initiatives at both local and nationa l levels that strengthen accountability, 
increase transparency, expand popular par ticipation in development processes and 
fight corruption and mismanagement. More specifically, relyi ng upon solid standards 
of conduct and promoting sound princi ples of openness, transparency and 
professional merit in the context of the e fforts to strengthen democratic governance, 
the Commission strongly encourages the de velopment of a prof essional and unbiased 
civil service. Although the Commission is already well advanced in addressing 
governance challenges at sector levels, mo re work is being done to improve and 
systematise implementation further. In doing so, the Commission underscores that 
governance is unique to the spec ific situation and context of  each country; that it is 
important that donors are not normative; and that governance reforms are home 
grown, owned by the partner country, and s ought progressively (i.e. a "good enough 
governance" approach should be applied). 
Gender 
Promotion of equality between men and women takes an important place in EU 
foreign policy. Gender equality is taken in to account both in political dialogues and 
in external assistance. A Communication on Gender Equality and Women's 
Empowerment in Development Cooperation  adopted in March for the first time 
advances a strategy at the European level10. This strategy provides guidance for 
making gender mainstreaming more effective, proposes specific actions in five fields 
and describes the various ways of prom oting gender equality through the new aid 
delivery methods. The Council called on th e Commission to prepare an action plan 
on gender equality and women's empowerme nt in development cooperation and to 
ensure its follow-up. In additi on, so as to ensure more effective mainstreaming of 
gender equality in the Commission's acti ons, a Communication will be prepared on 
the mainstreaming of horizontal issues (e nvironment, human rights, gender equality, 
HIV/AIDS). 
                                                 
10 COM(2007)100 final 
EN 13   EN In several country strategy papers for the 10th European Development Fund (2007-
2013) the promotion of equality was thoroughl y taken into account in the analysis of 
the situation and in the Commission's stra tegic answer. The ENP action plans agreed 
with the partner countries contain provisions to promot e the role of women in 
economic and social progress and to fight  against discriminations and violence 
towards women. Women's rights issues are addressed in the sub-committees that 
ensure the monitoring of the ENP – in  the human rights and democracy sub-
committees in particular. 
Within the Euro-Mediterranean partnership, the Commission played a crucial role to 
ensure the monitoring of th e Istanbul Framework of Action and of measures to 
promote women's rights and their full partic ipation in the civil,  political, social, 
economic and cultural fields. An ad hoc mee ting was held in October to discuss the 
follow-up given to the conclusions of Istanbul  during its first year of implementation. 
A report on the main initiatives implemented by the Euro-Mediterranean partners was finalised near the end of 2007, while two further ad hoc meetings will be held in 
2008. 
The Commission supports state and non-stat e actors active in th e field of gender 
equality promotion through vari ous instruments, including the "Investing in People" 
thematic programme, the regional programme on gender equality and the European Instrument for Democracy and Human Rights. 
The Commission engaged in a strategi c partnership with UNIFEM and the 
International Training Centre (ITC/ILO) to ward promoting equality for development 
and peace and toward incorporating gender equality and women's human rights in the new aid methods. This partnership focuses on the role of women in conflict and post-
conflict situations and more  particularly on the good appl ication of United Nations 
Security Council Resolution 1325. 
The Initiative for Peace Building, a projec t funded through the European Instrument 
for Democracy and Human Rights (EIDHR) and implemented by a network of civil 
society organisations, aims to devel op analytical tools and resources for 
policymakers – including the European in stitutions – on the issue of women's 
protection in conflicts and the role of  women in the promotion of peace and 
international security. 
Awareness-raising, exchanges of good pract ice, and qualification of Commission 
staff in mainstreaming gender issues in programmes and projects were continued 
through training and by the creation of a network of gender focal points throughout 
the Commission's Delegations. Capacity building activities wi ll continue in 2008. 
Statistical capacity building activities were supported so as to enable countries to 
provide accurate information for monitori ng progress and measuring the impact of 
development actions. Gender-disaggregated statistics are consistently recommended 
in order to increase unders tanding of women's and men's roles in maintaining the 
three pillars, economic, social and environm ental, of sustainable development and to 
develop appropriate policy responses. 
Children 
EN 14   EN In accordance with the European Consen sus on Development, all Commission 
external assistance programmes and project s must take children's rights into 
consideration. This approach is beginning to show its fruits and will have positive effects in the long run. Severa l country strategy papers adopted in 2007 show real 
inclusion of children's rights in how activities and target  populations are addressed. 
In addition, the Commission entered into a partnership with UNICEF to prepare a 
"comprehensive toolkit to address child rights in European development cooperation 
and external relations" (see point 2.3 belo w). This toolkit aims to help all 
stakeholders (including Co mmission staff) directly or indirectly concerned with 
children's rights and needs, to address and mainstream these in programming and 
project implementation. 
Social cohesion and employment 
The importance of employment for a more integrated way of reaching the MDGs was 
expressed in the Millenni um Declaration of the 2005 World Summit, where a UN 
inter-agency group proposed appr opriate indicators for a new target “[to] achieve full 
and productive employment and decent wo rk for all, including women and young 
people” under MDG 1 (Eradicate extrem e poverty and hunger). Since then, in 
addition to promoting employment directl y, there is a substantial and increased 
international acknowledgment of the need to  step up efforts to promote employment 
as a cross-cutting issue in other areas of  development aid (such as education, post-
conflict reconstruction, rural development, and so on). 
A Staff Working Document entitled Promoting Employment through EU 
Development Cooperation  was approved in April. The document underscores the 
importance of promoting full and productive  employment and decent work for all – 
with a focus on youth and women so as to av oid increasing the gap between the rich 
and the poor. The Staff Working Document  proposes to increase EU support to 
developing countries in their efforts to im plement the decent wo rk agenda. Priority 
should be given toward crea ting new productive jobs in the formal economy as well 
as toward improving the living and working conditions in the informal economy. The 
paper also serves as a trigger for a broa der debate with EU Member States on how 
best to promote employment through de velopment policies within the overall 
framework of the Decent Work Agenda. Th e outcomes should be reflected in the 
programming of EU aid. 
To facilitate the mainstreaming of employment, social protection and decent work in 
external cooperation, the Commission has or ganised thematic regional seminars with 
Commission Delegations and ILO local o ffices since 2006. Latin America was the 
focus of the 2007 joint seminar. These seminars aim to implement the joint strategic partnership at local level, to improve mutual understand ing, cooperation, synergies 
and contacts. 
Environment 
In the programming of the new generation of country and regional strategy papers, 
environmental integration efforts were directed toward gaining attention to 
environmental protection and sustainabl e natural resources management both 
through specific actions within the interven tion sectors and as a cross-cutting theme. 
EN 15   EN Emphasis was put on the preparation of count ry environmental profiles and the use 
of strategic environmental assessments as a means to integrate environmental 
sustainability as well as clim ate change concerns in se ctor policies and programmes 
and large plans. 
Public consultations were he ld on the key elements and pr iorities of a possible EU- 
wide strategy in this area, building on the 2001 integration strategy as well as 
addressing new challenges. The methodol ogical approach de veloped in the 
Commission's environmental integration handbook was shared with EU Member 
States. Meetings were also held with Member States and development partners 
during the first part of the year to disc uss progress on the environmental dimension 
of the 10th EDF. 
Activities in the area of capacity-building and awareness raising continued. 
Environmental integration seminars and onl ine training reached a total of over 300 
staff, quite evenly split between the Commission and relevant institutions of partner countries. Awareness-raising talks for Commission staff and the wider public 
focused on issues such as deforestation avoidance, ecological footprint mapping, and 
sustainable consumption and production. Providing Commission Delegations with 
relevant knowledge on environmental issues , such as climate change, is crucial to 
enable Commission staff in the field to enga ge in dialogue with partner countries to 
explain the position of the EU and ensure that mitigation and adaptation approaches 
are appropriately considered in ec onomic development and poverty reduction 
strategies. Consequently, engaging De legations on climate change and other 
environmental issues will c ontinue to intensify in 2008. 
1.6. Aid effectiveness and co-financing 
Aid effectiveness 
The EU is preparing for the mid-term revi ew of the Paris Declaration in the third 
High Level Forum that will take place in Accra in September 2008. 
The Paris Declaration on Aid Effectiveness advances 12 commitments which are to 
be implemented before the end of 2010. A dditionally, the EU (Member States and 
Commission) signed up to four  additional ambitious objec tives, both as individual 
donors and as collective group. The EU ta rgets were stated in the European 
Consensus and were reconfirmed by the Commission and Member States in Council 
Conclusions in April 2006 and November 2007. 
The EU additional targets are to: (i) pr ovide capacity-building assistance through 
coordinated programmes with an increasin g use of multi-donors arrangements; (ii) 
channel 50% of government–to-government  assistance through country systems, 
including by increasing the percentage of  assistance provided through budget support 
or swap arrangements; (iii) avoid the es tablishment of new project implementation 
units; and (iv) reduce the number of uncoordinated missions by 50%. 
With respect to the four additional EU targets, the Commission has adopted two 
strategies: one for increasing the use of country systems and the other for joint 
missions. The process has started for the de velopment of strategies for coordinated 
technical cooperation and the reduction and avoidance of parallel project 
implementation units. 
EN 16   EN Monitoring progress 
Monitoring progress on both the Paris Declara tion and the four EU additional targets 
is vital for ensuring transparency as well as identifying where progress is necessary. 
According to the Council Conclusions of 2006, the monitoring exercise on the four 
EU additional targets has to be conducted in the existing mechanisms which are the 
OECD/DAC system. 
The 2006 OECD Survey on Monitoring th e Paris Declaration provides data 
calculated on the basis of a sample of 34 partner countries and is considered a 
baseline exercise. A second Survey to be  conducted in 2008 will allow for measuring 
progress since the  2006 survey. This survey will cover more (emerging) donors, as 
well as more partner countries. 
Concrete steps facilitating the aid effec tiveness agenda 
The adoption of the  EU Code of Conduct on Comp lementarity and Division of La bour 
in Development Policy11, represents a landmark advance in the implementation of the 
EU's promise to deliver "more, better a nd faster aid". Implementation of the EU 
Code of Conduct is already taking place thr ough consultations at field-level between 
Commission Delegations, EU Me mber States, partner count ries and other donors. To 
facilitate the consultation process on the implementation of division of labour in the 
field, the Commission also orga nises regular technical semi nars for Member States. 
The EC's Financial Regulations now ma ke co-financing with Member States 
possible, in particular in the form of fund managing and delega ted cooperation. The 
Commission is preparing a Compendium on Best Practic es in Division of Labour  
with case studies of best practices from across the donor spectrum. The compendium 
will also identify bottlenecks and drivers of division of labour, and will attempt to develop indicators for division of labour (i.e. a measure fo r the fragmentation of aid). 
A study on EU co-financing
12 provides information on “who’s doing what with 
whom and how” in terms of co-financing at  EU level and identifies key lessons 
learned from bilateral, EC and decentralis ed co-financing experiences as well as 
determining possible future actions for de veloping a comprehensive EU strategy for 
co-financing. 
The Donor Atlas 200613 provides baseline data on states in situations of fragility for 
a possible discussion among the intern ational community on cross-country 
complementarity in fragile situations. 
Timely and substantial inputs were prov ided into the pert inent international 
processes, promoting the coordination, coherence and visibility of EU and 
Commission positions in intern ational organisations. This ha s been particular true for 
FAO and UNCCD, institutions which have be en through a reform process (to be 
continued in 2008). 
                                                 
11 At the Council meeting on 15 May  
12 Study on EU co-financing, Sigrid Willibald, November 2007 
13 http://ec.europa.eu/development/icenter/repository/eu_donor_atlas_2006_en.pdf  
EN 17   EN To move the aid effectiveness agenda forwar d, it is equally important that it is dealt 
with in sectors of coopera tion. This is done thr ough thematic coordination 
mechanisms and platforms. Progress wa s made, particularly in the Rural 
Development sector. A process of ela boration of specific guidelines on Aid 
Effectiveness was launched by the Global Donor Platform on Rural Development 
during the Second EU Forum on Rural Developm ent in Berlin in June. Other sectors 
where donor coordinating mechanisms exist/h ave been strengthened  at an operational 
level include Agriculture, in particular Agricultural Research for Development and Livestock. 
Financing for development (the "Monterrey process") 
In the context of the 2002 Monterrey International C onference on Financing for 
Development, the EU (Commission and Me mber States) agreed on a series of 
thematic commitments. This was the first time the EU spoke with "one voice" in the area of development policy. The Council ha s mandated the Commission to monitor 
and provide annual progress reports on these commitments. Ownership and 
confidence of EU Member States in this pr ocess is very high and in view of the UN 
World Summit in 2005 has led to agreement of additional commitments. 
The EC monitors the implementation of the following commitments: the scaling up 
of ODA (commitments 2010-2015); innovative sour ces of financing; debt relief; aid 
effectiveness; more predictable, less volatile aid mechanisms; exogenous shocks; 
untying of aid; Global Public Goods; re form of the International Financing 
Institutions; and trad e and development. 
These commitments have become key elements of the European Consensus on 
Development. Aid effectiveness and aid fo r trade have, over time, developed into 
almost independent strands (linked to th e progress of work in the OECD/DAC and 
WTO). The Council has repeatedly insisted  on maintaining the link with Monterrey 
and has called on the Comm ission to report progress on  aid effectiveness (i.e. 
division of labour) and aid for trade (i.e. EU  aid for trade implementation strategy) in 
the context of the Monterrey report. 
The "Monterrey report 2007" enabled th e Commission to highlight Europe's 
commitment to the millions of people aff licted by poverty, as most Member States 
met or exceeded their promises for 2006. It also showed that Europe is at the forefront in the development of innovative sources of finance for development and 
the aid effectiveness agenda. At the same time, the report allowed to place pressure 
on those Member States that ar e still struggling to fulfil co mmitments. In that sense, 
this monitoring exercise ensures that commitments are put in place by the Member States, moving Europe from rhetoric to re ality in the arena of development policy. 
The "Monterrey report 2008" is being prepared as part of the Accra/Doha package to 
be adopted by the Commission in June 2008
14. Replies from most of the Member 
States to the annual questi onnaire, covering all commitme nts, are available. The 
report will assess progress achieved (ODA to Africa and support for new debt 
                                                 
14 The package will comprise a short political umbrella Communication, the reports on financing for 
development, aid effectiveness, aid for trade, and on policy coherence. 
EN 18   EN architecture), highlight drawbacks (decr easing ODA levels in 2007- 2008) and make 
proposals for a single EU line to take at Doha. 
Non-state actors and local authorities in development  
As reflected in the "European Consensus" and in several conclu sions, resolutions and 
opinions, civil society and its various act ors play a key role as promoters of 
democracy, social justice and human rights.  The EU recognises the vital contribution 
of non-state actors (NSA) by virtue  of their dual role as st rategic partners  in political, 
social and economic dialogue  and key aid delivery actors. The EU promotes 
constructive and continuous di alogue with all types of non-state actors and local 
authorities, which is essential to ensure in tegration of the priori ties and concerns of 
stakeholders in development strategies and programmes, to strengthen their voice in 
the development process and to advance political, social and economic dialogue. 
Throughout 2007, the Commission engaged in discussions on the multi-annual 
strategy for the new thematic programme "Non  State Actors and Local Authorities in 
Development" which replaces the form er budget lines "NGO Co-financing" and 
"Decentralised Cooperation". The strategy for 2007-2010 was approved by Member States and adopted by the Commission in June following consultation with civil 
society and dialogue with the European Parliament. Lessons learned and policy 
evolution as regards partic ipatory approaches resulted in several important 
innovations, including relaxing eligibility cr iteria for all types of NSA and local 
authorities as well as stakeholders in partner countries. Furthermore, in the context of devolution and to ensure stak eholder participation in pa rtner countries, Commission 
Delegations will, in future, assume greater management responsibility for interventions conducted at country leve l, including launching local calls for 
proposals. 
The overarching objective of the programme is poverty reduction in the context of 
sustainable development, including pursuit of the MDGs and ot her internationally 
agreed targets. More specifically, the progr amme aims to (i) promote an inclusive 
and empowered society in partner countr ies so as to facilitate stakeholder 
participation; (ii) raise public awaren ess on development issues and promote 
education for development in Europe ; and (iii) support coordination and 
communication activities of NSA and local authority networks in Europe. The 
Commission adopts annual action programme s (AAP) to implement this strategy. 
The 2007 AAP was adopted in December fo llowing the approval of Member States. 
Subsequently, the first (local and ce ntral) call for proposals was launched. 
The provisions of the Cotonou Agreement have facilitated and consolidated 
participatory approaches  in cooperation with ACP countries. The revision of the 
Agreement in 2005 provided the opportunity to  strengthen these provisions further, 
by facilitating NSA access to funding and by extending the provisions on participatory approaches to local author ities. Participation of NSA and local 
authorities was a fundament al principle of the 10
th EDF programming process that 
occurred throughout 2006 and 2007. The prog ramming guidelines were distributed 
widely and placed online to facilitate the participation of a broad range of actors. 
Progress made regarding participation of  NSA and local authorities in policy 
dialogue is regularly assessed. In 2007, th e Commission produced a summary report  
EN 19   EN on the experience of its Delegations with  consultation of st akeholders in the 
elaboration of country st rategy papers under the 10th EDF. The results of the report 
are mixed. While the quality of particip ation varied, each of the 64 countries 
reviewed engaged in dialogue with stake holders. Nevertheless, in several cases, 
policy dialogue was limited to information rather than consu ltation. Even so, the 
number of countries where thorough consu ltation of NSA has o ccurred has increased 
since the Mid Term Review of programmi ng in 2004. The full report is available on 
the DG Development website on Europa. 
A further important issue in 2007 was the growing mome ntum across the board to 
examine the role of civil so ciety in the aid effectivene ss agenda. Indeed, NSA have 
been long considered the "mi ssing link" in the Paris Agen da. In this context, the 
Commission has been following the delibe rations of an "Advisory Group" (AG) 
established by the Working Party on Aid Effectiveness (WP-EFF) to develop 
concrete recommendations on how best to  include NSA in the international 
discussions on aid effectiveness in the lig ht of the HLF in Accra in September 2008. 
EU12 Member States: Capacity Building Scheme for Development Policy 
(CBS III) 
During the second semester the Commission he ld bilateral discussions with each of 
the MS-12 toward initiating and launching the third Capacity Building Scheme for 
Development Policy (CBS III) for MS-12. CBS is a demand driven programme to 
provide training and technical assistance to MS-12 so as to build  their capacity for 
development cooperation on a “just-in-time,  just-enough” basis. The objective of 
CBS III is to help the MS-12 capitalise on their recent achievements in development cooperation undertaken under Capacity Buil ding Schemes I and II and to take 
coherent steps ahead while paying particular attention to the fulfilment of obligations 
undertaken at the EU level. This progr amme will continue from CBS II (albeit 
having a different form and substance) wh ich attained its fina l phase. Discussions 
with MS-12 focused on their needs for capacity building in development aid, 
modalities of implementation and operationa l aspects and how and to what extent 
CBS III can satisfy these. 
1.7. Partnership with United Nations and World Bank 
United Nations 
Relations between the United Nations and the European Union have grown over time 
into a rich and diverse network of c ontacts, cooperation and dialogue covering 
virtually all areas of the EU's external rela tions and spanning the entire scope of the 
UN Charter, from peace, security and human  rights to social and economic affairs, 
including development and humanita rian activities and trade policy. 
The Commission, in line with the European Security Strategy (2003), is committed 
to a strong UN equipped to confront global issues and develop global solutions. It 
supports UN reform and the implementati on of the 2005 World Summit Outcome. In 
2007, the Commission backed UN plans to promote inter-agency system-wide coherence, especially the launching of “De livering as One” initiatives in eight pilot 
countries, and is considering the possible implications for its future cooperation with 
UN Agencies, Funds and Programmes. In the spirit of system-wide coherence, the 
EN 20   EN UN is now increasingly pract icing inter-agency coopera tion and speaking with one 
voice on policy issues in its dea lings with the European Union. 
This year, the focus of the whole internat ional community was on climate change. In 
September, the UN Secretary-General or ganised a High-level event on Climate 
Change in New York City, and the year  ended with the adoption of the Bali 
Roadmap at the UN Climate Change C onference in December. The Commission 
participated actively in both events, whic h were organised together with the EU 
Presidency. The European Development Days sought to tackle the same theme by finding global and European solutions to the issues at hand while strongly promoting the relationship between deve lopment and climate change. 
2007 marked the mid-way point towards the 2015 target date for the MDGs. The UN 
Secretary-General launched the MDG Africa Steering Group with major multilateral and regional development partners to devise strategies and to prep are actions to bring 
sub-Saharan Africa, in partic ular, on track to meet the MDGs. President Barroso is a 
member of the Steering Group and the Co mmission actively shared its experience 
and views in the Group. 
2007 was the first full year of operation of the new UN Peacebuilding Commission 
(PBC). Together with other EU actors, th e Commission participated in its work on 
both country-specific and thematic issu es. The PBC adopted integrated peace-
building strategies for Burundi and Sierra Leone and agreed track ing and monitoring 
mechanisms to follow-up on their implem entation. The PBC also held several 
debates on thematic issues of horizontal relevance to its work on peace-building; 
such as strategic frameworks for peace-bu ilding, indicators and monitoring; local 
governance and decentralization in post-c onflict settings; re gional peace-building 
experiences; budget support in post-conflict countries; and gender and peace-building.  
The Commission continued in other ways to  participate actively in UN processes, 
together with EU Member States, by promoting the adoption of important 
development-related resolu tions and policy documents at the General Assembly, 
ECOSOC and other UN bodies. As an example, representing the EC as a full FAO member, the Commission played a key role at the 34
th session in November, which 
successfully set in motion the FAO reform process. 
The Commission continues to build a partners hip with the UN system as a whole, as 
well as with individual UN entities, covering policy and normative work as well as operational activities. In this context, several high level meetings between the 
Commission and the UN took place, be ginning in January when the new UN 
Secretary-General Ban Ki-moon  made his first mission outside the USA to Brussels 
to meet the Commission and other EU Institutions. During the year, Commission-UN policy dialogues and meetings to review cooperation included sessions with the FAO 
in March, agreeing upon future priorities (climate change, statistics, Africa); the 
Office on Drugs and Crime (ODC) in May fo cusing on trafficking issues; the World 
Health Organisation (WHO), in both June an d October, addressing issues such as 
priorities for Africa, health funding, social  determinants of health, and the ILO in 
November especially on the decent work  agenda. The Commission also supported 
the work of the UN-led International Wo rking Group on Sport for Development and 
Peace (SDP IWG). In an effort to fully use the potential of sport for development, 
EN 21   EN this group made further progress in enga ging with national governments on policy 
recommendations to support the integration of sport and phys ical activity into their 
national and international development stra tegies and programme s. The Commission 
gave its input to the fina l policy recommendations, whic h will be published in 2008 
to coincide with the Beijing Olympics. 
Finally in December, there was a high-le vel meeting to review the Commission-
UNDP strategic partnership, which noted joint achievements on issues such as 
electoral assistance and conflict and disast er needs assessments. The meeting also 
identified areas of mutual interest for 2008-2011: electoral assi stance, strengthening 
of parliamentary systems, justice and secu rity sector reform (SSR), disarmament, 
demobilisation and reintegration (DDR), harmonization of governance indicators, 
fragile situations, post-conflict and post-disaster needs assessment and climate change. 
Cooperation also continues with other UN entities such as UNICEF, on children’s 
rights and protection, and MDG indicators; or UNIFEM, with  which a Partnership on 
Gender Equality for Development and Peace was agreed. 
International Financial Institutions 
The Commission has reinforced its policy dialogue with the international financial 
institutions (IFIs), partic ularly with the World Bank, the International Monetary 
Fund (IMF) and the regi onal development banks. 
World Bank and International Monetary Fund 
The fourth High Level "Limelette" Meeti ng between the European Commission and 
the World Bank on their cooperation in Af rica was held on 17-18th September in 
Brussels, in the framework of the so-ca lled 'Limelette cooperation process'. This 
process, which started in Limelette, ne ar Brussels, brings together senior 
management and field officers of the two institutions for a candid policy dialogue on 
how to better coordinate and harmonise  Commission and World Bank policies in 
Africa. During this meeting, jo int action plans were agreed. 
Policy dialogues took place with the World Bank and the IMF in the regions of the 
candidate or potential candidate count ries, the Eastern Neighbourhood and Central 
Asia, as well as in the Mediterranean region. This cooperation takes place under the umbrella of a Memorandum of Understanding for each of these three regions. Following an EU-IFIs annual consulta tion in April focusing on Neighbourhood 
strategies and programming for the Eu ropean Neighbourhood and Partnership 
Instrument, the World Bank offered conc rete proposals to strengthen cooperation 
between its country strategies and EU ac tion plans. In additi on it was agreed to 
pursue joint work on public finance manage ment indicators in selected neighbouring 
countries. In summer, the International Fina nce Corporation (IFC) joined the existing 
EU-IFIs Memorandum of Understanding for the Mediterranean region. The Council 
of Europe Development Bank became a si gnatory of the EU-IFIs memorandum of 
Understanding on NIS. Within the framework of the IFIs' Advisory  Group created in 
2007, operational coordination also started between the new IPA instrument for 
potential candidate and candidate countries  in the Balkans and the IFIs' supportive 
EN 22   EN operations in the region. In the case of Kosovo's final status settlement process, 
specific operational cooperation also took place. 
Another kind of relationship between th e Commission and the World Bank consists 
of European coordination among the European Union members of the Board of Directors of the WB (EU EDs) and the Commission. One way in which the 
Commission reinforces this co ordination is by organising  an annual visit by the EU 
EDs to the European Institutions in Brussels . The group paid their fourth visit to the 
European Institutions in Brussels on Fe bruary 5-6. They me t Commissioners from 
the External Relations Group, as well as NGOs  and the Parliament. In addition to the 
annual visit, the Commission encourag es the adoption of common European 
positions by the EU EDs on items to be discussed within the World Bank Board by transmitting Commission positions whenever possible on these items for discussion 
at the weekly coordination meetings in  Washington, DC between the EU EDs and 
the Commission Delegation. The EU EDs presented more than thirty common 
statements to the Board in 2007, conti nuing its practice of previous years. 
The bi-annual ministerial joint World Bank/IMF Spring and Annual Meetings took 
place respectively on 14-15 April and on 20-22 October in Washington, DC. The 
main topics discussed between the Commission and the World Bank were 
governance reforms, the strate gic direction of the World Bank Group, climate change 
(a new Global Climate Financing mechan ism is being developed), and Middle 
Income Countries. Commissioner Michel ad dressed the Ministerial Development 
Committee on both occasions, while Commissi oner Almunia attended the Ministerial 
IMFC. The Commission has an obser ver status in both meetings. 
Finally, bilateral high level policy discus sion took place between the Commission 
and the World Bank/IMF. Mr. Zoellick paid an orientation visit to the Commission 
on 12 June before his appointment as WB  President and met Commissioner Michel 
again in November in Brussels. Mr Strauss-Kahn was elected by the Executive Board 
in September as the new Managing Director  of the IMF, replacing Mr. de Rato, who 
stepped down after the IMF Annual Meeting. 
Regional Development Banks 
On January 25-26, a high level meeting was held for the first time in Brussels 
between the EU Executive Directors (EU ED s) of the Regional Development banks 
(Inter-American, African, and Asian Deve lopment Banks) and Commission Senior 
Management. This meeting had the same  format as the meeting between the 
Commission and the EU EDs at the Wo rld Bank mentioned above. European 
coordination among EU Directors in the Boar ds of regional development banks is 
only in an early stage. 
The Commission launched a reinforced cooperation process with the African 
Development Bank (AfDB) this year by organising a High-Level meeting between the senior management of the Commissi on and the AfDB which was held on 3-4 
September in Brussels during which an action plan was agreed between the two 
institutions (similar to th e existing EC-WB Limelette meetings mentioned above). 
The 2007 edition of the African Economic Outlook (AEO) was managed by the OECD, but the AfDB assumed the lead in 2007 for future editions. The AEO is a 
valuable compendium on the economic and so cial development statistics of African 
EN 23   EN countries. Indeed, the AEO is widely used by practitioners in various organisations. 
The Commission has financially supported th e publication of the AEO in previous 
years and decided in December to contribu te financially to the next two editions. 
Regarding the Interamerican Development Bank, a new Memorandum of 
Understanding (MoU) was prepared and signed for the period 2007-2011. The MoU's main priorities are in the areas of social c ohesion, regional integration, 
climate change, renewable energy and statistics. With regard to the Asian Development Bank (ADB), a Memorandum  of Understanding was signed on 
cooperation with Eastern Europe and Central Asia leading to annual consultations on 
strategies and programmes. 
1.8. Poverty focus in middle-income countries
15 
The Commission is active in more than 80 Middle Income Countries (MIC). These 
countries are the home to over 50% of th e developing world’s population of which 
around a billion have an income of  less than two US dollars a day. 
In these countries the Commission pursues  a mix of external actions. The EC's 
commitment to eradicating poverty and promoting sustainable development, 
including the pursuit of the MDGs has traditionally b een, and remains, dominant in 
Asia and Latin America, where many people are excluded from the benefits of rapid 
economic growth and where the income di stribution gap remains high, leading to 
social exclusion and inequality. In these countries, in view of the existence of relatively developed social and economic in stitutions and struct ures, the Commission 
promotes the achievement of poverty reduc tion and sustainable development across a 
broad front of possible interventions. These include support to sectors such as trade, 
regional integration, ag riculture, environment, climate change, security, migration, 
the social dimension of globalisation, employment and decent work, and international scientific cooperation, includin g health research. The mix of 
interventions in each country is determined by national conditions and priorities, in 
accordance with the Development Cooperatio n Instrument (DCI) which became the 
main funding mechanism for assistance to As ia and Latin America upon its entry into 
force on 1 January. EC assistance to enlarg ement countries and to countries in the 
'Neighbourhood' region, while based on promo ting sustainable social and economic 
development, also aims to strengthen mu tually beneficial ties with the EU, as 
established in the European Neighbourhood Policy Instrument (ENPI) and Instrument for Pre-accession Assistance (IPA), which also came into effect on 1 January. In addition, action is taken to  respond to crisis, reconstruction and 
rehabilitation needs in countri es such as Iraq. In assistin g these countries, the needs 
of the poorest communities are also addresse d. In Latin America, with the exception 
of Nicaragua, all countries are MIC. Each  of these countries will receive around €100 
million of aid annually, during the peri od 2007-2010. Progress made in economic 
reform and social policies has led to a slight  reduction in poverty levels in the MIC. 
However, absolute poverty remains high, affecting 40% of the population, according to the latest UN estimates. Latin America is the most unequal regi on of the world in 
terms of income distribution and this s ituation is not improving substantially. 
Accordingly, EU programmes provide suppor t to fight poverty and promote reforms. 
                                                
 
15 The definition of Middle Income Countries used here is that of World Bank List of Economies 
http://siteresources.worldbank.org/ DATASTATISTICS/Resources/CLASS.XLS  
EN 24   EN Key EU strategies towards MIC in Latin America include support to regional 
integration, the promotion of social cohe sion, and increasing tr ade links and other 
business opportunities between Latin Ameri ca and Europe. All these EU strategies 
are expected to raise personal incomes and reduce inequality. EU policy dialogue 
with partner countries and their regional groupings has been broadened recently, to 
include competitiveness, mi gration, governance and enviro nment, energy and climate 
change-related issues. 
During the 2007-2010 period, Middle Income C ountries (MIC), wh ich represent 11 
countries in Asia, are expected to receive an average of €290  million per year of EC 
programmable cooperation, re presenting approximately 35%  of total EC cooperation 
allocated to Asia. In line with a differentiated and flexible approach, EC development cooperation has adapted to different needs and specific conditions. 
Social and economic progress has been re gistered in Asian MIC countries as 
expressed by the general steep reduction in levels of pover ty, sometimes on an 
impressive scale as in China. However the absolute number of poor people remains 
very high and income disparities have been widening. The EU has also supported the regional integration process through its support to ASEAN in particular. Policy 
dialogues, both at bilateral and at regional level, have acquired a growing relevance 
in different fields including economic i ssues, environment/energy/climate change 
and dialogues with civil society. 
All countries in the ENPI Eastern Region are now classified as  MIC. While poverty 
in the region has been reduced, social ine quality and exclusion are still increasing at 
country and regional level. Introducing ENPI and increasing assistance in the form of 
sector budget support add to the efficiency  of the EC assistance; however regional 
needs remain significant. Despite being recl assified as a low-MIC, Moldova remains 
the poorest country in Europe. Thus, povert y reduction is central to the Moldovan 
Government’s economic growth and pove rty reduction strate gy, its National 
Development Plan, and to the EC’s assistance under ENPI. The Southern 
Mediterranean region also has to deal with the pr oblem of poverty; however, 
societies in this region, usually based upon religious values of solidarity, are more 
redistributive and the percentage of citizens living in poverty is smaller than the global average. EC assistan ce through ENPI focuses on support to administrative, 
economic and social reforms, strengthening institutions and mitigating the social effects of the transiti on process. The sustainability of  socio-economic development is 
often included as the priority for EC assistance. However, coherent national 
strategies and commitment to reform in this area are needed. 
1.9. Sectoral policy / strategy developments 
Human and social development 
A thematic strategy for human and social development, Investing in People , was 
adopted on 10 May
16 for the period 2007–2013. Driven by the ambition to help 
partner countries to achieve the MDGs, a nd with an overall budget of €1.06 billion in 
2007-2013, the strategy proposes to support acti vities under four main pillars: good 
health for all, education, knowledge and sk ills, gender equality, and other aspects of 
                                                 
16 C/2007/1957  
EN 25   EN human and social development (including social cohesion, employment, decent 
work, children and youth, and culture). 
To promote the development of skills, knowledge and quality higher education, an 
Erasmus Mundus External Cooperation Wi ndow was launched in 2007 (based on the 
success of the 2006 call for proposals). This window is complementary to and in synergy with the Erasmus Mundus program me and promotes cooperation between 
higher education institutions and the mobility  of students, researchers and academic 
staff between the EU and third count ries. The Erasmus Mundus External 
Cooperation Window call for proposals publis hed in 2007 (for the academic year 
2008-2009) promotes both academic cooper ation and mobility of students, 
researchers and academic staff of the EU and participating ENP countries. Likewise, 
the Tempus programme continues to contri bute to the creation of an area of 
cooperation in the field of higher education for the period 2007-2013
17. Tempus 
supports the modernisation of higher educa tion in partner countries in the Western 
Balkans, Eastern Europe and Central Asia , North Africa and the Middle East. It 
promotes both the voluntary convergence with  EU developments in higher education, 
deriving from the Lisbon Strategy to create more jobs and growth, and the Bologna 
Process to establish a Europ ean Area of Higher Education. 
Working together with Member States and other donors and stakeholders, the 
Commission played an increasingly central and influential role internationally in 
education and health. In collaboration w ith the World Bank and the UK Government 
to mobilise political commitment to deliver on promises on education, in May, the Commission organised a hi gh level education event Keeping Our Promises on 
Education . As in previous years, the Commissi on played a key role in the 'Global 
Fund to fight HIV/AIDS, Tuberculosis and Malaria' (GFATM) to which the EC contributed €100  million in 2007 alone. Total EC contributions have reached €622.5 
million over the last 6 years. From Ma y 2006 until April 2007, the Commission held 
the position of Vice-Chair of  the Board of the GFATM. From July 2006 to June 2007 
the Commission was also Co-Chair of the 'E ducation for All – Fast Track Initiative' 
(FTI) and focused during its chairmanship on promoting donor harmonisation and aid effectiveness as well as  on improving the quality assu rance of the processes of 
the Initiative. The financial contribution to  these global initiatives on health and 
education is part of the Commission's political commitment of supporting social 
sectors under the DCI. 
Furthermore, the Commission worked with the G8 Presidency and European G8 
members to maintain a strong commitment of the G8 to scaling up efforts to combat 
HIV/AIDS, tuberculosis and malaria and to strengthen health systems. A policy 
initiative, conceptualised by the Commi ssion Delegations, was launched, in the 
context of the European Programme for Action to Confront HIV/AIDS, Malaria and 
Tuberculosis through External Action (2007-2011)
18, to strengthen the response to 
the HIV/AIDS crisis in Southern Af rica. On 1 December , the Commission 
collaborated with the EU Presidency and Member States on the EU Statement Keeping the Promises to Stop HIV/AIDS  for World AIDS Day. 
                                                
 
17 http://ec.europa.eu/ tempus/  
18 COM(2005)179 final 
EN 26   EN A joint Communication of Directorate Generals Education and Culture, 
Development and External  Relations on Culture European Agenda for Culture in a 
globalizing world was adopted in May19. This document highlight s the role of culture 
in Europe and in EU external relations and proposes objectives for a new common 
EU agenda for culture. On the one hand, the paper recommends a twin track approach that systematically integrates the cultural aspect in all external policies, projects and programmes, while enhancing the sustainability of our actions through 
better understanding of the cultural context of our partner countries. On the other 
hand, the paper proposes to fund cultural actio ns that contribute to  the preservation 
of cultural heritage as well as to the em ergence of viable cultural industries. The 
Communication aspires to set up an EU-ACP  cultural fund for the strengthening of 
distribution and production of AC P cultural goods and services. 
Agriculture 
The Commission has enhanced its engageme nt in agricultural development with 
African institutions, particularly the African Union Commission (AUC) and its 
specialised agencies, the NEPAD Secretariat and other organisations at the continental and regional levels. Areas of i nvolvement include land  policy, veterinary 
disease control (including avian flu), sa nitary and phyto-sa nitary standards, 
agricultural research, natural resource ma nagement and early warning systems for 
food security. On 24 July, the Commission adopted a Communication Advancing 
African Agriculture
20. As confirmed by the Counc il Conclusions adopted on 20 
November, the EU will support agricultural development in Afri ca in the framework 
of a long-term cooperation with the African organisations at regional and continental 
level that are coordinating the Comprehe nsive African Agricultural Development 
Programme (CAADP). This support, based on seven priorities aims to reinforce the 
sector growth, namely through improving ag ricultural policies and governance. The 
Commission also organised, with the German Presidency, the second European 
Forum on Sustainable Rural Development in Berlin from 18 to 21 June. The theme was "Sustainable growth and poverty reducti on in rural Africa: how  can Europe be a 
more effective partner?" 
The Commission continued its work on implementation of the 2004 EU Land 
Guidelines
21, continuing its dialogue with major actors such as the AUC, the World 
Bank, FAO (particularly within the Intern ational Conference on Agrarian Reform 
and Rural Development – ICARRD), th e International La nd Coalition and the 
Commission for the Legal Empowerment of the Poor. In 2007, the Commission fully 
restored its partnership with the Consu ltative Group on Internat ional Agricultural 
Research (CGIAR) and strengthen ed its cooperation with IFAD. 
In the context of the accompanying measures for Sugar Protocol countries, 
established to cushion the impact of the reform of the EU sugar regime, on 18 April 
the Commission decided on the indicative a llocation of the available budget between 
eligible countries. It also adopted support strategies for the last five of eighteen 
countries concerned, and proceeded with the implementation of its support for the others. 
                                                
 
19 COM(2007)242 final 
20 COM(2007)440 final 
21 http://ec.europa.eu/development/icenter/repository/EU_Land_Guidelines_Final_12_2004_en.pdf  
EN 27   EN Food security 
On 4 May the Commission adopted the food security thematic strategy and its multi-
annual indicative programme 2007-2010. This strategy plays a central role in the implementation of EC food security polic y which complements the humanitarian and 
the geographical approaches, in crisis s ituations and in development contexts 
respectively. The thematic strategy aims to reduce f ood insecurity worldwide by 
improving the livelihoods of the rural and urban poor and of the most disadvantaged 
groups. The programme is intended to work with a range of different public and non-
governmental partners, and will support: (i) the delivery of inte rnational public goods 
contributing directly to food security (e.g. agricultural rese arch, food security 
information systems, trans-regional and contin ental initiatives, etc) ; (ii) food security 
in situations of post-crisis transition and in fragile states ; and (iii) innovative policies 
and strategies in the field of food securi ty (pilot projects, support to civil society 
initiatives promoting South-South and North-South dialogue on food security). 
Environment 
On desertification the Commission actively contributed to the preparatory work, and 
the adoption at the 8th Session of the UNCCD  Conference of the Parties (CoP-8) in 
September 2007 in Madrid, of the UN Co nvention to Combat Desertification 
(UNCCD) progressive reform package. The Ten-Year Strategic Plan and Framework 
to Enhance the Implementation of the UNCCD establishes the principles for a 
streamlined and consistent operational structure for th e UNCCD with clearer roles 
for the various institutions and bodies, timely management tools and results based management allowing matching of resour ces to objectives and deliverables. 
As the 2001 Environment Integration Strate gy was due for review, and also in 
response to the Special Re port of the Court of Auditors on the Commission's 
performance in the area of environment in  development, an inter-service group on 
environmental integration in development cooperation was created. Public 
consultations were held on the key elemen ts and priorities of a possible EU-wide 
strategy in this area. Meetings were also held with Member States and development 
partners during the first part of the year  to discuss progress on the environmental 
dimension in the 10
th EDF. 
On 20 June, the Commission adopted the thematic strategy for the environment and 
sustainable management of natural res ources, including energy (ENRTP) and its 
multi-annual indicative programme 2007-2010 . This strategy aims to integrate 
environmental protection requirements into the EC's development and other external 
policies as well as to help promote its e nvironmental and energy policies abroad in 
the common interest of the EU and partner countries and regions. It includes two new 
initiatives related to climate change and renewable energy; the Global Climate Change Alliance (GCCA),  and the Global Energy Efficiency and Renewable Energy 
Fund (GEEREF). The strategy addresses ch allenges that have a profound effect on 
the lives of poor people, in particular rapidly degrading key ecosystems, climate 
change, poor global environmental govern ance and inadequate access to (and 
security of) energy supply. It is charact erised by flexibility in the choice of 
implementing partners, allowing partnershi ps with, among others, community-based 
organisations, research organisations, civil society, the private a nd financial sectors 
and international bodies and organisations. 
EN 28   EN In September, the Commissi on issued the Communication Building a Global Climate 
Change Alliance between the EU and poor developing countries most vulnerable to 
climate change . The GCCA aims to deepen dialogue that adds to a shared vision for 
a post-2012 UN climate change agreement,  exchange of experience, and the 
advancement of concrete cooperation on c limate change adaptation and mitigation 
between the EU and the most vulnerable c ountries, in particular Least Developed 
Countries (LDCs) and Small Island Deve loping States (SIDS). The European 
Development Days in Lisbon (7-9 Novembe r) were a first occasion for the EU to 
present this initiative.22 
The EU Action Plan for Forest Law Enforcement, Governance and Trade (FLEGT) is the European Union's response to illegal  logging and associat ed trade. The Action 
Plan proposes voluntary part nership agreements (VPA) between producing countries 
and the EU. These VPA are legally binding agreements by which the partner country 
and the EU commit to work together to  promote better forest governance, law 
enforcement and implement a timber licensing scheme. In 2007, Indonesia, Malaysia, Ghana and Cameroon formally started negotiating w ith the Commission 
on a VPA. Congo, Central African Republic, Gabon
, Liberia have indicated they are 
keen to enter into a partnership agreem ent and are now preparing for this. The 
Commission, together with Member Stat es, has responded favourably to these 
requests and is actively supporting the consu ltative and policy pr ocesses at national 
level.  
Infrastructure 
The EU-Africa Partnership on Infrastru cture was launched by the AUC and the 
European Commission at the African Un ion Headquarters in Addis Abba on 24 
October. The main focus of the Partners hip is trans-boundary, regional and national 
infrastructure: transport, water and energy infrastructure as well as ICT networks. By 
facilitating continental inte rconnectivity and strengthening regional networks, the 
partnership is a coordinated EU response to  NEPAD’s Infrastructure Action Plan and 
Africa’s goals of regional inte gration, economic growth, an d increased trade to reach 
the MDGs. 
Strong stakeholder commitmen t at the launch of the partnership resulted from a 
closer dialogue between the European Commission, the AUC and the Regional 
Economic Communities, which serves as a sound foundation for advancing the coordination and alignment of infrastructure  policies and strategies at a continental 
and regional level. Policy development with in the partnership is led by the AUC and 
strongly supported by the Eur opean Commission in terms of capacity building and 
skills enhancement. In support of interc onnectivity, start-up funding is provided to 
develop continental priorities and in frastructure corridors and networks. 
Working within the integrated framewor k of the partnership has enabled the 
European Commission to foster linka ges between the programming of 10
th EDF 
national and regional programme s and the objectives of the EU Infrastructure Trust 
Fund, administered by the European Inve stment Bank. This innovative trust fund 
blends grants and loans, which leverages additional finance for infrastructure. The 
                                                 
22 For details, see feature article Climate Change in Developme nt and External Assistance  
EN 29   EN approach has strengthened dialogue with EU Member States and European 
development financial institutions, facilitating coordinated efforts to scale up aid to African infrastructure. 
Water and sanitation 
The policy focus in water and sanitation has been principally to enhance coordination 
between the Commission and the Member States. Following an independent review of the EU Water Initiative (EUWI), a mu lti-stakeholder platform to catalyse 
coordinated EU support for water and sanita tion, new measures are producing better 
coordination at headquarters a nd at country level, and more  effective streamlining of 
EC and Member State activities. The Afri can component of EUWI has developed a 
constructive dialogue between the African Ministerial Council on Water and the EU 
on the African-EU Strategic Partnershi p on Water Affair s and Sanitation, a 
Partnership signed by Heads of State in 2002. 
Increased efforts to maintain the nati onal policy dialogues in Ethiopia, Congo 
Brazzaville and the Central African Repub lic produced improved coherence between 
water and growth and povert y reduction strategies. The EUWI Finance Working 
Group focused on capacity building and methodologies for developing sector 
financing strategies. Support to trans boundary water management was enhanced 
through activities supported by the ACP-EU Water Faci lity and through the EU-
Africa Partnership on Infras tructure. Within the Partne rship, the water component 
focused on river basins prioritised by NE PAD in its 2005 Infrastructure Action Plan 
for Transboundary Water Management (N iger, Senegal, Congo, Lake Chad, Nile, 
Okavango and Zambezi) and on expanding sup port for other basins. Support covers 
the establishing and developing of basin au thorities, capacity building as a necessary 
foundation for sustainable infrastructure development and contributing to project 
preparation and implementation. The Latin American component of the EUWI is 
taking shape with the conti nued implementation of wate r development projects as 
well as international research collaborat ions addressing the systems and basin 
management aspects. 
Energy 
Energy access, energy security and concerns on climate change are the central policy 
challenges. The Commission in creased its efforts to enhance coordination and 
synergies in the energy sector and the concerns on climate change – as demonstrated during the European Development Days c onference held in Lisbon in November. 
These efforts were supported by the Council Conclusions of 14 May and the launch of the Africa-EU Energy Partnership at the Lisbon Summit in December. 
Consequently, the EU Energy Initiative is  becoming a strengthened platform for 
better coordination and more streamlined EU Member State and EC support to the 
sector. Similarly, an enhanced dialogue with the AUC and the Forum of Energy 
Ministers of Africa (FEMA) produced an  Action Plan for 2008-2010 for the Energy 
Partnership. 
EC support to energy has increased with its inclusion as a priority area in the EU 
development policy (the European Consen sus), and the awareness created by the 
ACP-EU Energy Facility as well as th e energy component of the EU-Africa 
Partnership on Infrastructure. Energy is a development sector in 16 countries of the 
EN 30   EN 10th EDF Indicative Programmes, half being in  Africa. Additional support to energy 
is included in the thematic programme on environment and sustainable management of natural resources, in cluding energy (ENTRP). 
Transport 
Policy and strategy development has continue d to strengthen the sectoral approach 
for delivery of affordable, safe and sust ainable transport through developing sector 
programmes, wherever possible financed  by sector budget s upport. Within the 
framework of the EU-Africa Partnership on Infrastructure, em phasis was given to 
increasing complementarity between 10
th EDF national and re gional programme to 
develop the Trans-African Transport Corri dors, thereby enhancing interconnectivity 
between countries and regions . These efforts have led to transport being a focal 
development sector in 38 ACP countries so  far, of which 35 are in Sub-Saharan 
Africa. 
The European Commission continued as th e lead donor of the Sub-Saharan Africa 
Transport Policy Programme (SSATP). SSATP  is a partnership of 35 Sub-Saharan 
countries, Regional Economic Communitie s and donors that facilitates the 
development of transport policies and im plementation strategies to strengthen 
economic growth and reduce poverty. It is recognised as a key policy instrument of the AU-NEPAD Infrastructure Action Plan  and of the EU-Africa Partnership on 
Infrastructure. 
The European Commission enhanced its coordination with the other two main 
financiers of transport in Africa, th e African Development Bank and the World 
Bank. Coordination was pursued on a bilatera l basis and by participation in the G8-
created Infrastructure Consortium for Africa, which in 2007 had transport as its thematic focus. This international coor dination, linked with well-developed country 
sector-wide coordination, fosters the ow nership, alignment and harmonisation 
principles of the Paris Declaration. 
New technologies 
Policy development has focused on continued advocacy of the role new technologies 
play in contributing to economic growth and delivery of so cial services. The 
Commission's strategy gives priority to increasing access to affordable broadband telecommunications. Working closely with international partners, the Commission 
was able to support the management and fi nancing arrangements that accelerated 
efforts to extend a broadband telecommunications loop to maritime and land-locked countries in Eastern and Southern Africa – the “EASSy” submarine cable. Similarly, 
coordination with the European Space Agency provided strategic support to 
advancing satellite-based telemedi cine applications in Africa. 
The EU-Africa Summit in Lisbon boosted progress with Global Monitoring for the 
Environment and Security (GMES) and mark ed the initial steps towards an Earth 
Observation Programme for Africa. It also created an EU-Africa Partnership on the Information Society, Science and Space Technologies (I3S) - an integral part of the EU-Africa Joint Strategy. Increased effort s were undertaken to prepare for “2008 
Africa – the Year of Science” with a fo cus on capacity building in science and 
technology in the ACP States, and a coopera tion agreement with the International 
EN 31   EN Telecommunications Union for creating a unique Telecom Regulation Framework in 
Africa. 
Within the framework of the EU-Africa Partnership on Science (Lisbon 2007), the 
Commission launched an enhan ced dialogue with EU Member  States that aims to 
develop a strategy for Innova tion, Research, Sciences an d Technologies to better 
respond to Africa's development. This Part nership on Science need s to build on the 
existing African Science and Technol ogy Consolidated Plan of Action. 
1.9.1.  ENP 
Important progress was made in the implementation of the European Neighbourhood 
Policy (ENP), a comprehensive policy framework encompassing the strengthened relations between the Union and 16 of its southern and eastern neighbours. Two new 
Action Plans were agreed, with Lebanon in January and Egypt in March, bringing the 
total amount of the ENP Action Plans to twelve. 
The first ENP Ministerial Conference, enti tled “Working Together – Strengthening 
the European Neighbourhood Policy", was or ganised in Brussels on 3 September. 
The event was attended by all EU and ENP states and gathered more than 700 
participants representing the governmental sector, non- governmental organisations 
and business groupings. Discussions focused particularly on opportunities for trade 
liberalisation, mobility and the challenges of climate change and energy security in 
the ENP area. 
On 5 December the Commission presented the Communication A strong European 
Neighbourhood Policy
23. Recommendations include in creasing the EU “offer” on 
economic and trade integration with the pa rtners, reducing obstacles to short-term 
travel, facilitating more exchanges and tack ling frozen conflicts in the ENP area 
more vigorously. In the Medi terranean region, the EU pursu es its objectives within 
the overall framework provided by the Euro-Mediterranean Partnership. 
Following the latest round of enlargement, bringing the EU borders  to the Black Sea, 
in April the Commission adopted a Comm unication introducing the "Black Sea 
Synergy", a regional cooperation initiative for the Black Sea region. The official 
launch of the Black S ea Synergy will be marked by th e Black Sea Region and the EU 
Ministerial Meeting on Fe bruary 14, 2008 in Kiev. 
Relations between the EU and the Russian Fe deration remain distinct from the ENP. 
In 2007 two summit meetings be tween EU and Russian leader s took place. The focus 
of relations was on implementation effort s and negotiation of a new overall EU-
Russia agreement. The Commission also continues its involvement in regional 
cooperation in Northern Europe and the Ba rents Region through ac tivities within the 
framework of the Northern Dimension. 
1.9.2.  Aid for Trade 
At the WTO Ministerial held in Hong K ong in 2005, the European Union pledged to 
raise its support for Trade-Related Assist ance to €2 billion per year from 2010 (€1 
                                                 
23 COM(2007)774 final 
EN 32   EN billion from the Community aid budget a nd €1 billion in bilateral aid from the 
Member States) as a contribution to the collective efforts of donors and developing 
countries to increase the production and trade capacities of developing countries. 
During the year, intensive discussions between Member  States and Commission 
experts took place to shape a common stra tegy enabling the Union to deliver an 
effective, coherent and co-ordinated res ponse to the partner countries’ trade-related 
priorities. On 15 October, the Council a dopted the "EU strategy on Aid for Trade". 
The Commission and Member States are now  working on the concrete follow-up 
activities, including lin king these orientations to th e ongoing programming processes 
for the ACP countries, in order to rapidly deliver on the strategy. So as to ensure a 
wide geographical coverage of  EU Aid for Trade, similar efforts will be made in 
other regions. 
The strategy is an important complement to active trade negotiations on multilateral, 
regional and bilateral leve ls, such as the Doha Development Agenda and the 
Economic Partnership Agreement negotiations. It addresses releva nt broader issues, 
covering classic Trade-Related Assistance (inc luding assistance in the fields of trade 
policy and regulations and trade developmen t) as well as assistance to efficient 
capacity building related to trade infrastructu re and trade adjustment issues, i.e. to 
contribute to partner countries' efforts to m itigate fiscal effects of trade liberalisation. 
In addition to increasing the volumes of its assistance devoted to Trade-Related 
Assistance and wider Aid for Trade, through the implementation of this strategy the EU expects to enhance the quality of its aid. It aims to render its Aid for Trade more 
pro-poor, to specifically promot e regional integration processes (in particular of the 
ACP countries, for which around 50% of th e increase in TRA is to be made 
available), and to strengthen EU capacity to  deliver aid effectively using more joint 
planning and delivery approaches under country and regional leadership. The 
strategy contains provisions to monito r its implementation by the Commission and 
the Member States and to report on results. 
1.10. Outlook 2008 (conclusions and perspectives) 
The priorities and focus for the Europ ean Commission's development policy in 2008 
will be articulated around five main  policy documents: a package of 
Communications on EU development policy; a Communication on economic 
development and regional integration; a Communication on the implementation of 
the Joint EU-Africa Strategy; a Communica tion on EU-Africa-China cooperation and 
a Green Paper on future relations with  Overseas Countries and Territories. 
A Communication on development policy, The EU as a global partner for 
development: doing more, better and faster , will outline the EU contribution to the 
Third High Level Forum on Aid Effectiven ess (Accra, September 2008) and to the 
Follow-Up Conference on Financing for Deve lopment to Review the Implementation 
of the Monterrey Consensus (Doha, Nove mber-December 2008). It will also address 
policy coherence for development issues, drawing lessons from the debate on the first EU report on this topic issued in Sept ember, Aid for Trade and the state of play 
regarding the MDGs. The Communication w ill be supported by policy papers 
covering the five themes. 
EN 33   EN With regard to aid effectiveness, it is e xpected that the High Level Meeting in Accra 
in September 2008 will provide a unique pl atform for the EU to demonstrate its 
performance, as well as an opportunity to involve non EU-donor s in applying the 
recently approved EU Code of Conduct on Division of Labour among donors. A 
comprehensive paper will include a declaration on the need for division of labour, the Code of Conduct, some positive examples of applying the Code in selected countries, a compendium on best practices in the division of labour and reporting on 
the Member States' and the Commission's se lf-assessment of comparative advantage, 
the achievement of the additional commit ment and the Commission's performance. 
Concerning the Monterrey commitments, the High Level Meeting in Doha in December 2008 will review progress on the co mmitments made in 2002 on financing 
for development. The report prepared by the Commission will cover the whole range of EU commitments. 
A Staff Working Paper on policy coherence for development will draw lessons from 
the discussions on the first EU Policy Cohe rence for Development report (issued in 
September) and will present more specific and concrete recommendations to enhance the coherence of EU policies with development objectives in three policy areas, namely migration, research and climate change. The development package will also include a monitoring report on the implementa tion of the EU Aid for Trade Strategy 
adopted in 2007. This document will cover th e activities of the Member States and 
the Commission in supporting trade in partne r countries and will assist in tailoring 
EU support to achieve the overall Aid for Trade strategy objectiv es by 2010. Finally, 
an annex on the MDGs will provide an assessment of progress so far, outlining the policy and institutional context as well as several key focal areas for action. 
The second policy document is a Comm unication on economic development and 
regional integration in the ACP. The paper will consider the best approach to foster 
economic development and regional integrat ion in the ACP, with a strong focus on 
private sector development. The objective will be to develop a strategy to ensure 
complementarity of actions and instruments existing at EU and Member States level. 
The third pillar will be a Communication on the Implementation of the Joint EU-
Africa Strategy: concrete follow up meas ures to the Joint EU-Africa Strategy . The 
document will present the second evaluation of the implementation of the EU Strategy for Africa. It will integrate the prio rities identified in the first action plan 
implementing the Joint EU-Africa Strategy a nd set the necessary guidelines for their 
implementation. The Communication will be based on a questionnaire circulated to Member States in early 2008 to create an  EU monitoring document. Synergies with 
the Monterrey Communicat ion will be ensured. 
The fourth Communication will be on The EU, Africa and China – cooperation for 
Africa’s peace, stabilit y and sustainable development . It aims to articulate an 
innovative agenda for a trilateral dialogue and cooperation as a response to major 
new developments in the EU's relations  with both partners  and South-South 
cooperation. The impacts on security, stabil ity, sustainable development in Africa 
and on global governance, notably of China' s emergence as a leading partner for 
Africa in the past few years, require a po licy response by the EU and an effort to 
improve the coherence of our agendas re garding both Africa and China. It will 
propose a constructive dialogue, cooperation and ways to manage competition in 
EN 34   EN such a way as to make it beneficial to p eace, prosperity and sustainable development 
in Africa.  
The fifth priority will be a Green Paper on  the future relations between the European 
Union and the Overseas Countries and Territo ries (OCT). This will be a discussion 
document intended to stimulate debate a nd to launch a consultation process. The 
Green Paper will put options on the table and constitute a basis for discussion about a modernisation of the OCT-EU association. It is intended as a preparation of a 
substantial revision of the Ov erseas Association Decision, wi thin the limits of the EC 
Treaty. 
Finally, the Commission will produce a Communication on local governance and 
development, which will also be the focu s of the European Development Days in 
2008. 
2. IMPLEMENTATION 
2.1. European Neighbourhood and Partnership  
2.1.1.  Bilateral cooperation 
2.1.1.1.  Introduction 
This was the first year of implementing a ssistance to the EU's neighbours through the 
European Neighbourhood and Partnership In strument (ENPI). ENPI provides the 
framework for Community assistance in support of the relations with 16 ENP 
partners, with the Russian Federation and for cross-border cooperation programmes 
on the EU's external border. The over all budget for cooperation with neighbouring 
countries for the period 2007–2013 stands at €12 billion (€11.2 billion from ENPI and the rest from thematic programmes and instruments). This constitutes a 32% increase in real terms fr om the previous budget period. 
All the country strategy papers for th e period 2007-2013, as well as the regional 
South and East and the Inte rregional and Cross Border Cooperation (CBC) strategy 
papers were adopted in March. These define  priorities for financing and allocations 
for each of the programmes. To enhance ENPI's effectiveness, the Commission 
established additional financial mechanisms  during the year. A Governance Facility 
provides additional support to countries  making particular progress in the 
implementation of reforms. A Neighbourhood  Investment Facility pools grant 
resources to leverage invest ment in partner countries from European development 
and finance institutions. The introduction of a policy-dr iven single instrument, 
managed on the basis of uniform programmi ng and implementation principles for all 
beneficiary countries and endowed with in creased resources, allowed for a more 
ambitious and coherent policy towards all of the EU's neighbours in the east and in 
the south. It also strengthen ed the integrated nature of the European Neighbourhood. 
Bilateral relations 
The implementation of the ENP Action Plans of Armenia, Azerbaijan and Georgia, 
adopted in 2006, is already underway. The region enjoyed substantial growth in 
2007, fuelled by oil and energy-related activiti es, but limited redistribution of wealth 
EN 35   EN remained a matter of concern. The unreso lved conflicts in Nagorno Karabakh, South 
Ossetia and Abkhazia continue to underm ine regional stability  and significantly 
hamper development. In addition, in December clashes with the opposition and street riots led to early presiden tial elections in Georgia. 
Moldova made significant progress in implementing reforms based on the EU-
Moldova ENP Action Plan. It conclude d Visa Facilitation and Readmission 
Agreements with the EC, which ente red into force on 1 January 2008, and a 
Common Visa Application Centre was opened under Hungarian leadership in 
Chisinau in April 2007. The EU granted Moldova additional Autonomous Trade Preferences which entered into force on 31 January 2008. The EU continued its 
active involvement in the Transdnistria set tlement efforts. The mandate of the EU 
Border Assistance Mission to Ukraine and Moldova (EUBAM) was extended until 
2009. Negotiations on a new Enhanced Agreement between the EU and Ukraine started in March. Agreements on Visa Fa cilitation and Readmi ssion entered into 
force on 1 January 2008. There was posi tive cooperation on foreign policy and 
substantial progress on ener gy cooperation. Although the year was marked by long 
pre- and post-election periods of instability, which slowed down the pace of implementation, the ENP Action Plan con tinued and Kiev received an additional 
financial allocation from the ENPI Governance Facility.  
As the Russian Federation is not part of the ENP, financial cooperation between the 
EU and Russia was geared towards th e implementation of the "four Common 
Spaces" of the EU-Russia St rategic Partnership – a fr amework for the bilateral 
cooperation. The EU maintain ed special interest in supporting the development of 
neighbouring Kaliningrad Oblast. 
Most of the economic and social reform s supported in the ENP Action Plan with 
Tunisia  made good progress. Meetings of six subcommittees took place, including a 
first meeting of the subcommittee on human  rights and democracy. Furthermore, in 
November the EU-Tunisia Association Council met for the first time in two years. 
Implementation of the ENP Action Plan w ith Morocco continue d to make progress 
and sub-committees met regularly. In July  the EU-Morocco Association Council 
decided to launch a reflection process on the strengthening of bila teral relations. As a 
reward for successful implementation of the reforms, Morocco received an additional 
financial allocation from the Governance Facility. 
The Egypt ENP  Action Plan was adopted in March. Assistance will focus on reforms 
in the areas of democracy and human rights, competitiveness and the sustainability of development. Negotiations on a Memorandum of Understanding between the EU and 
Egypt on a Strategic Partne rship on Energy were concl uded and Egypt hosted the 
“EU-Africa-Middle East Energy Conference” in  Sharm-el-Sheik. EU-Israel relations 
developed further, resulting in Israel’s participation in the 7
th Framework Programme 
for Research and Development, in the Entrepreneurship and Innovation Framework 
Programme  as well as in establishment of the EU–Israel business-to-business 
dialogue. Jordan made further progress w ith the implementation of its ENP Action 
Plan. A second round of sub-committees wa s held, including a dialogue on human 
rights. The Commission and Jordan stepped up cooperation in the energy sector and 
signed a Joint Declaration. The adoption of the Action Plan in January marked the 
launch of the ENP in Lebanon. In addition, the Commission devoted  its attention to 
EN 36   EN the implementation of the financial pack age of €50 million for actions aiming to 
reinvigorate and rehabilitate the c ountry after the 2006 military conflict. 
The Commission continues to be  the largest donor of assistance to the Palestinians. 
Together with support granted through in ternational organisations and numerous 
NGOs, EC support to the Palestinian peopl e reached an unprecedented amount of 
€550 million. In June the EU resumed normal relations with the Palestinian Authority, including the resumption of financial assistance. The Temporary 
International Mechanism (TIM) continued to provide vital assistance directly to the 
Palestinian population. The Commission contin ued to respond to the difficult socio-
economic situation in the Hamas-controlled Gaza Strip, but difficulties in access significantly hamper the assistance. 
The EU also continued its c ooperation with those countries  that have, heretofore, no 
legal agreements providing the basis for EN P relations. In relations with Algeria, 
priority was given to putting the Associati on Agreement's potential into practice. In 
April the second Association Council meeting was held. The technical 
subcommittees met regularly and worked effectively. However it is still premature to anticipate the adoption of an ENP Action Plan by Algeria. Relations with Libya 
developed. In October the Council reque sted the Commission to submit draft 
negotiation directives with a view to a fu ture EU-Libya framework agreement. The 
negotiations are expected to  start in 2008. Political rela tions between the EU and 
Syria remained tense in 2007, but efforts we re made to ease them, including a visit 
by Javier Solana to Damascus. No progr ess was made regarding the Association 
Agreement. Nonetheless, the Syrian gove rnment continued to implement economic 
reforms. No real progress was noted in  Belarus. The EU continued its 
sanctions against the Belarusian government a nd – after persistent violations of trade 
unions rights – withdrew the Generalise d System of Preferences. Only some 
technical talks between the Commission  and Belarus were held on energy and 
transport. Intensification of contacts might  follow if the political situation permits. 
Belarus is offered to fully benefit from ENP if it takes convincing steps towards democratisation. 
2.1.1.2.  Aid effectiveness and donor coordination 
In most of the countries of the ENPI region enhanced donor co-ordination with a 
view to creating str ong synergies and linkages betw een the various EC programmes 
and the programmes of other donors is well  established. This is usually achieved 
through coordination with IFIs (includi ng the EBRD, EIB, World Bank and the 
African Development Bank) or coope ration with EU Member States. 
In the ENPI-South region, the successful implementation of the Temporary 
International Mechanism (TIM ) serves as a good exampl e of what effective donor 
coordination can achieve. The Member Stat es and the Commission have channelled 
most of their aid in favour of the Pale stinian population thro ugh the TIM since mid-
2006. That year, the Commission committed a total amount of €389 million for the 
TIM; Member States and other donors contributed an amount of €131 million. 
Implementing the TIM continued to be a collaborative effort with strong co-
ordination locally complemented  with co-ordination in capitals. Based on the lessons 
drawn from the TIM's success, a new instrument will be put in place in 2008 making full use of the existing local coordination groups in full liaison with the Palestinian 
EN 37   EN Authority administration, the Office of the Quartet Representative and the Ad Hoc 
Liaison Committee  structures. 
In the ENPI-East region, donor coordinati on is improving, with regular exchanges 
between the Commission, Member States and international donors often hosted by 
the local Commission Delegations. Appropriate  coordination mechanisms are being 
created in several countries. For exam ple, this year donor coordination and 
harmonisation in Moldova further benef ited from the Development Partnership 
Framework signed in 2006 between the government and key donors, including the 
Commission. It contains perf ormance indicators for both government and external 
partners to assess progress towards measur es for increased aid effectiveness. In 
addition, this year Ukraine joined the Pa ris Declaration. However, government-led 
donor coordination is still weak in the region. From 2008 there will then be full-
fledged Commission Delegations in all East ern ENPI countries, which will further 
enhance the coordination process. 
2.1.1.3.  Working towards the MDGs 
ENPI gives a high priority to the promoti on of sustainable development and fighting 
poverty, including through measur es leading to the progre ssive participation of 
beneficiary countries in th e EU’s internal market.  
Based on monitoring results, it appears th at 72% of active projects in ENPI-South 
countries directly or indire ctly address one or more MDGs. MDG 8 ("developing a 
global partnership for development") is best  represented in the Mediterranean region, 
with 65% of the monitored active projects  falling into this objective. A high 
proportion of the projects focused on the de velopment of an open rule-based trading 
and financial system – including the comm itment to good governance, development 
and poverty reduction. MDG 7 c oncerning environmental sust ainability is addressed 
by 28% of monitored projects in progress.  Most of these projects focus on regional 
integration involving all the partner countries. 
In the ENPI-East region virtually all EC  projects and programmes are geared to, 
directly or indirectly, reducing povert y and reaching other MDGs. For instance, 
support to institutional reform focuses on good governance, which ultimately also 
represents a benefit for the most vulnerable layers of the population. Specific projects 
in several countries focus on child protect ion, e.g. in Moldova and Georgia. To 
combat HIV in Ukraine, the Commission is funding a project focussing on the armed 
forces. EC assistance to the vocational educ ation reform in Armenia will lead to a 
reduction in unemployment and thus reduc e poverty. The special North Caucasus 
Programme has a strong component to support primary education. 
2.1.1.4.  Regional cooperation and integration 
ENPI programmes for regional cooperation pl ay an important role in fostering 
cooperation between countries on issues of mutual intere st, both in Eastern Europe 
and the Mediterranean basin. 
This year, €97.4 million was made available for regional cooperation with 
Mediterranean partners on a variety of projects. The Commi ssion continued to 
support civil society initiatives in s upport of the Peace Process through a new 
allocation for the Partnership for Peace programme, which encourages cooperation 
EN 38   EN between Israeli and Arab people through se veral civil society initiatives. A new 
programme provides support to regional disa ster preparedness, building on earlier 
Commission-supported pilot proj ects. Its aim is to reinforce prevention capacity at 
regional and local level in the wake of  man-made natural disasters. Other 
programmes approved this year focu s on women's rights and support civil 
organisations, and the promotion of Med iterranean cultural heritage. Finally, the 
Commission made available €32 million in support of the multi-lateral investment 
fund for the Middle East, FEMIP, which w ill allow the EIB to provide technical 
assistance as well as risk capital support bot h through direct investments as well as 
increasingly through particip ations in regional funds. 
New regional programmes in partner countri es along the Eastern border of the EU 
received funding this year. These include  programmes to support the beneficiary 
countries' administrations in the implementa tion of air and land transport safety and 
security measures, to deepen the integrat ion of the energy markets in the region and 
to develop energy efficiency and renewable energy more extensively. A new programme started on sustainable forest mana gement to strengthen the rule of law in 
this field. The successful European Uni on Border Assistance Mission to Moldova 
and Ukraine (EUBAM) was also financed. The Commission will also intervene in Belarus in order to destroy the country's  stockpiles of anti-personnel landmines. 
Other activities continued in 2007 in the do mains of natural resources, energy and 
transport. Several projects deal with the use and preservation of water resources, the 
improvement of water govern ance or the integr ated trans-boundary management of 
river basins in the region. A specifi c programme supports energy cooperation 
between the EU, the countries bordering the Black and Caspian Seas and their neighbours. This year it focused on th e convergence of energy markets, the 
enhancement of energy security, sustainabl e energy development and the raising of 
investment in energy projects of common a nd regional interest. Progress was made to 
improve international transport in the Bl ack Sea region, the Caucasus and Central 
Asia. Ambitious projects were launche d to improve maritime links with the 
neighbouring countries, notably through the development of 'Motorways of the Seas' 
for the Black and Caspian Seas. Specific expe rtise was also dedicated to the transport 
of dangerous goods and LPG along the TRAC ECA corridor, while intensive training 
and support was provided to the region's freight carriers. The objective is to create an 
effective transport market involving the EU and its neighbours.  Finally, through a 
pilot project launched this year, the Co mmission provided 35 scholarships for the 
academic year 2007-2008. These will enable university graduates from ENP countries and Russia to pursue a Master's in  European Integration at the College of 
Europe so as to further develop their profe ssional skills and to enable them to better 
understand the European Union. 
2.1.1.5.  Implementation 
2007 was a transition year, marked by the a doption of annual ac tion programmes in 
the new ENPI framework for all Southern and Eastern countries. In total, €1.7 billion 
in assistance was decided in favour of th e 17 countries of the Eastern and Southern 
border of the Union from the 2007 EC Budge t. In the Eastern ENPI countries, the 
annual action programmes included energy sect or reform in Ukraine and Azerbaijan, 
with particular attention to energy efficien cy and sustainability ; poverty reduction in 
Moldova, with special attention to the reform of the social assistance sector; and 
EN 39   EN fighting unemployment in Armenia, where the Commission uses sector support to 
contribute further to the development of  vocational education and training. For 
ENPI-South, new programmes focused mainly on support to social sectors, including 
basic health and educati on (around 40%) and economic issues (around 30%); but 
also governance, regulatory framework a nd capacity building (around 24%), and 
energy and environment, includi ng demining actions (around 6%). 
As under the MEDA regulation, the Maghreb countries continued to be important 
beneficiaries of Commission support. Morocco faces important social challenges. 
Programmes were supported to fight poverty, and to provide medical insurance for 
the poorest, alphabetisation and non-formal  education. Support for administrative 
reform, including the modernisation of human resources management and decentralisation continued. Tunisia obt ained new support for accompanying the 
implementation of the Association Agreement and the Action Plan, building on a similar programme operational since 2004. Thus , Tunisia continues to benefit from 
twinning programmes with a view to enha ncing and modernising its administrative 
capacity. The same objective is pursued w ith a new programme that promotes the 
modernisation of public finance manageme nt by introducing 'budgeting by objective'. 
Two other new programmes, an environment and energy programme and interest rate subsidy in support of industr ial de-pollution, are intended to enhance sustainability. 
Cooperation with Algeria was given new impetus through the adoption of two new programmes. The first supports the deve lopment of small and medium-sized 
enterprises, building on an earlier programme which has supported over 400 
Algerian SMEs. The second concerns the modernisation of prisons by modernising imprisonment conditions and supporting vocat ional training and re-integration. The 
Commission made available another €2 m illion to Libya in support of the EU-
supported HIV/AIDS Action Plan for Benghazi. 
Egypt remains one of the main benefici ary countries of the ENPI-South region. A 
substantial package was committed to suppor t the Education Sector Policy Support 
Programme, a coordinated multi-donor effort  in support of comp rehensive education 
reforms that emphasises decentralisation, qua lity improvement and higher efficiency. 
To support implementation of the ENP action plan adopted in March, additional funds were made available for twinning pr ogrammes. Recent examples of twinning 
actions have been in the field of Tourism,  Postal Management and Maritime Safety. 
In Lebanon, socio-economic development was much affected by the persistent political deadlock. In addition, the loss of life and extensive damage to the Nahr el 
Bared Palestinian refugee camp affected th e stability of the c ountry. At the Paris 
Donors Conference in January, the Commissi on reiterated its pledge in support of 
Lebanon's reconstruction and socio-econom ic reform programme. Under the 2007 
bilateral national action programme, Leba non was granted substantial resources for 
economic recovery, political reforms, access to finance, and de-mining and clearance 
of unexploded ordinance. 
In Jordan, the Commission continued to support  the extensive reform efforts that the 
government is implementing by approving a National Financing Plan covering three 
priorities: the development of the services sector and its export capacities through a 
services modernisation programme; the la unching of an ambitious public finance 
reform programme, and a vital de-mining pr ogramme at Jordan's northern border that 
will make Jordan completely mine-f ree by 2009. In Syria cooperation focused 
mainly on economic reforms via a Trade Enhancement Programme to accompany the 
EN 40   EN opening up and diversification of the Syrian economy. A smaller Business 
Environment Simplification Programme will assist Syria in simplifying procedures 
for economic operators, reducing red tape, and improving services to the business 
community. Lastly, a small envelope was de cided in favour of Israel, allowing the 
launch of the first twi nning project in the fiel d of Data Protection. 
This was a difficult year for the Palestinian people, with social and poverty indicators 
continuing to deteriorate. Po litical developments were significant with the effective 
take-over of Gaza by Hamas and the formation of a new independent government. These developments directly affected th e orientation and implementation of EC 
assistance. The Temporary International Mechanism (TIM) continued its operations 
throughout the year in the West Bank and in Gaza, with the Commission, making 
available €350 million to all areas of th e TIM. The Commission also developed a 
scheme to support economic activity and employment by helping to reduce the stock of arrears of the Palestinian Authority due to the private sector. €20 million have 
been allocated and payments began this year. In addition, the Commission continued other projects, including its  regular and sign ificant support to UNRWA with a €66 
million contribution. In East Je rusalem, support was provided for social initiatives. 
The Partnership for Peace Programme, which
 aims to promote the Middle East Peace 
Process through direct civil so ciety relationships, continue d. Funds were also made 
available to improve food security a nd to support the work of the Quartet 
Representative. Taken together, total reso urces made available to the Palestinian 
people this year amounted to over €550 million. 
In Russia, the Kaliningrad region remains a major focus of assistance. Due to its 
location as a Russian enclave within the EU, Kaliningrad has a strategic importance 
for both Russia and the EU. A major project started to assist th e regional government 
in the implementation of public administration reform and to raise Kaliningrad's 
profile as a favourable investme nt destination. Border cros sings are also a priority. A 
border crossing station at the Lithuania- Kaliningrad border now contributes to 
expanding trade and accelerati ng the traffic flow between the EU and the Russian 
Federation, and a new one is being built on  the Poland-Kaliningrad border. Another 
focus for EC assistance to Russia was the special programme for economic recovery for the North Caucasus, implementation of which continued.  The health and 
education components of this programme are now well on their way, and during the 
year, medical as well as class room equi pment was delivered to the region, and many 
health care specialists and school teachers received training. In the area of 
environment protection and waste water tr eatment, the construction of the sludge 
incineration plant in Saint Petersburg was completed – the largest and most complex 
investment project ever financed through EU funds. 
In Ukraine and Moldova, institutional refo rm, e.g. establishing an independent, 
impartial, efficient and prof essional judiciary, remained an  important priority. Legal 
approximation in Ukraine continued to be supported through the Ukrainian-European 
Policy and Legal Advice Centre. Economic reforms and the private sector also received backing, e.g. thr ough projects assisting SME in both countries. This year 
implementation of the first Twinning Facil ity project in an Eastern ENPI country 
began in Ukraine in the field of energy s ector reform. In Moldova, preparations for 
twinning are well advanced and the first proj ect is expected to start in 2008. Support 
to local development was a priority for EC assistance in all regions in Ukraine, with 
several actions aimed to elevate the infras tructure of municipal services and to 
EN 41   EN improve local management. Health care reform  is another focus. In Moldova, access 
to essential social services for vulnerabl e layers of the popula tion, including primary 
health care and social assistance, was improved by an important EC-funded 
initiative. In Ukraine, young drug users we re assisted through a project aiming to 
establish a specific system of social serv ices. In Belarus, the Commission continued 
to provide access for young Belarusians to hi gher education abroad if they were 
unable to study at home for political reasons. Support was provided for the independent Belarusian media, for the production of independent radio and TV 
programmes for Belarusian citizens, and for training journalists. Further assistance 
included promotion of human rights, s upport for Belarusian NGOs and local 
authorities and for regions aff ected by the Chernobyl disaster. 
In Georgia, judicial reform was one of the main priorities for EC assistance. Public 
finance management reform was also a focus area and a sector support programme was signed. These initiatives focused on the Ministry of Justice and its services and 
on the Ministry of Finance (i ncluding its tax and customs departments). In order to 
tackle the social consequences of tr ansition, continued su pport was provided to 
reform primary health care, concentra ting on the Kakheti regi on. Other sizeable 
projects in the social domain focusing on specific regions c ontributed to poverty 
reduction and economic development. In a ddition, a large project concerning child 
welfare reform started. A specific and continuing concern of EC assistance to 
Georgia was rehabilitation in the Georgi an-Ossetian and Geor gian-Abkhaz conflict 
zones. In Armenia, administ rative reform was further su ccessfully suppo rted by the 
Armenian-European Policy and Legal Advi ce Centre. In the ar ea of education, 
interventions were mainly aimed to rehabi litate and develop the vocational education 
system. Reforming child care and child protection were priorities. Regional 
development projects concentrated on regi onal development strategies, regional 
planning and investments for SME, and ag ricultural development. In Azerbaijan, 
institutional reform projects focused on the social protection sector and the Ministry 
of Transport. A major initiative to support regional economic development, 
ultimately focusing on poverty reduction, has gone ahead, as has a large border management project at the bor der between Azerbaijan and Ir an. Preparations are well 
advanced for the start of  twinning projects in 2008. 
EN 42   EN Table 1 ENPI-Sector   Breakdown by sector of external aid financed on the General Commission Budget 
managed by EuropeAid in 2007
Commitments ( € million)
Payments ( € million)
Bilateral and Multilateral ODA/OA (EuropeAid only).1 161 M€, 70%207 M€, 12%61 M€, 4%87 M€, 5%
150 M€, 9%Social Infrastructures: Education, Health,
Water, Government & Civil Society,
Other 
Economic Infrastructures & Services :
Transport, Communications, Energy,
Other services
Production : Agriculture, Forestry &
Fishing, Industry, Mining & Construction,
Trade & Tourism
Multisector/Crosscutting : Environment,
Other
Budget Support, Food Aid, FoodSecurity
Others - Including Emergency
assistance, reconstruction relief
935 M€, 67%47 M€, 3%
100 M€, 7%
175 M€, 12%108 M€, 8%48 M€, 3%Social Infrastructures: Education, Health,
Water, Government & Civil Society,
Other 
Economic Infrastructures & Services :Transport, Communications, Energy,
Other services
Production : Agriculture, Forestry &Fishing, Industry, Mining & Construction,
Trade & Tourism
Multisector/Crosscutting : Environment,
Other
Budget Support, Food Aid, Food Security
Others - Including Emergency
assistance, reconstruction relief
 
€ millions 2007
Commitments          1 666    
Payments          1 412    
Bilateral and Multilateral ODA/OA (EuropeAid only).Table 2 ENPI-Total   External aid financed on the General 
Commission Budget managed by EuropeAid 2007
 
EN 43   EN 2.1.1.6.  Monitoring 
In the Southern ENPI region, external results-oriented monitoring (ROM) was 
pursued and further developed, capitalising on  the results of the previous years. A 
total of 141 active projects with an overa ll value of €1.4 billion were monitored (99 
national and 32 regional). As in earlier year s, particular attention and follow up was 
paid to projects with serious deficienci es for one or more of the ROM criteria. 
Table 3 Southern ENPI Mon itoring Results per ODA Sector 
2.02.32.52.83.0
Social Infrastructure and Services Economic Infrastructure and Services Production sectors Multisector - Crosscutting
Relevance Efficiency Effectiveness Impact Sustainability
 
In the Eastern ENPI region, 267 proj ects and programmes were monitored. 
Programme performance over the period 2003-2007 shows a stab ilisation of the 
overall scores in five main ROM criteria.  The average result for the region is 2.84 
(out of 4), thus significantly above the statistical average of 2.50 ("on track"). This 
general positive picture emphasises the conclu sion that assistance in the region (the 
monitored projects and progr ammes still belonged to the Tacis programme) can be 
considered effective and sustainable. 
Table 4 Eastern ENPI Monitoring Results per ODA Sector 
2. 02. 32. 52. 83. 0
S ocia l In fra stru ctu re  a n d S e rvice s E con om ic In fra stru ctu re  a n d
ServicesProduction sectors Multisector - Crosscutting
Relevance Efficiency Effectiveness Impact Sustainability
 
EN 44   EN 2.1.1.7.  Perspectives 
This year saw the operational start of the European Neighbourhood and Partnership 
Instrument (ENPI). Based on the lessons learned as far as 2006, ENPI makes EC external assistance simpler, more coherent and more flexible. It will now come with 
fewer annual priorities for increased im pact, new financing facilities (Neighbourhood 
Investment Facility, Govern ance Facility) and new fo rms of cooperation (Cross-
Border-Cooperation, Twinning and TAIEX), and it will be strictly policy-driven, in 
accordance with the ENP. ENPI funds a llocated to Mediterranean and Eastern 
European countries will continue to depe nd on their needs and ab sorption capacity as 
well as their implementation of agreed reforms. 
For both geographic zones, in and be yond 2008 implementation will continue 
steadily of existing commitments in prior ity sectors such as energy, transport, 
mobility, border management, economic integration and trade, regulatory framework and justice reforms, as well as the gradual introduction of the Neighbourhood 
Investment Facility (NIF). For ENPI-Eas t countries the main change brought about 
by the new instrument is the intensification of sector budget support.  In this context, 
the indicative sector allocations of the 2008 annual action programmes will focus on 
e.g. energy efficiency and mutual trade pr omotion in Ukraine, social and economic 
development in Belarus, or the justice sect or in the three countries of the Southern 
Caucasus (Armenia, Azerbaijan, Georgia) . Overall, good governance, regulatory 
reform, administrative capacity building,  poverty reduction and socio-economic 
reform continue to be the main priorities  for the partner countries in the East, as 
defined in the respective nati onal indicative programmes 2007-2010. 
For ENPI-South countries the cooperation priorities remain coherent with the 
strategic orientations for 2007-2013, namely to support economic and sector reforms 
and to promote regional integration with the EU Single Market and among 
neighbouring countries themselves. In this li ght, the indicative sector allocations of 
the 2008 annual action programmes will ma inly focus on economic issues like 
economic diversification and competitivene ss in Algeria, Tunisia and Egypt, support 
to the private sector in Moro cco or trade facilitation in Jordan. Support to the social 
sectors and governance and the regulatory fr amework will also be prioritised, e.g. the 
planned health sector reform in Algeri a and Morocco and the promotion of good 
governance in Egypt, as will capacity building, and growth and sustainable 
development. Finally, in support of the Pa lestinian Reform and Development Plan 
announced at the Paris Donors Conference he ld in December, the EU will implement 
PEGASE from February 2008. This programme will provide a flexible and effective 
financial mechanism, replacing the TIM.  It will be the Commission's main 
instrument to deliver financial support to  the Palestinian Au thority and to the 
Palestinian population. PEGASE will be open to the participation of EU Member 
States and other internati onal donors and will operate  in the West Bank, East 
Jerusalem and the Gaza strip. 
Integrated social services for expo sed families and children in Ukraine
 
Ukraine has inherited a Soviet sy stem of child-care that promot ed the use of large state-run 
institutions to care for children. However, institutions are almost always harmful for 
children’s development, and although poverty play s a significant part in their admission to 
residential care, most children are in care for so cial reasons. To preven t this from happening 
EN 45   EN and to reduce the number of children placed in bo arding institutions, this project has helped to 
create favourable conditions and develop alternative social serv ices in order to ensure the 
right of vulnerable children to live in a safe and secure family environment. The project has 
produced impressive results. In the Kiev regi on, 135 cases of potential infant abandonment 
were prevented, 179 children were re-integra ted into their biological families, 42 children 
were placed in foster care and 153 were adopted. The number of social workers has almost 
tripled and legislation was improved with a particular focus on prevention of family 
breakdown and a strong requirement for state authorit ies to act in the best interest of the child. 
 
The Temporary International Mechanism 
Initially established in June  2006 by the European Council for a period of three months, the 
mandate was extended several times. The Commission, 15 EU Member States, Norway, 
Switzerland, Canada and Australia  have contributed to the TI M. This year, the Commission 
provided €350 million. By end 2007, over €600 million had been allocated by all donors, over 95% coming from the Commission and EU Memb er States. The TIM is now expected to 
cease operations at the end of March 2008, to  be replaced by a new EU mechanism called 
PEGASE. 
The TIM performs its operations through three 'windows' that together have helped to 
alleviate the suffering of Palestinians caused by  the worsening socio-economic situation. This 
has been achieved by providing  medicines and other supplies, electricity and other essential 
utilities, and direct financial allowances to poor and vulnerable Pales tinians based upon need. 
The TIM has developed efficient and effec tive methods to ensure transparency and 
accountability. Verification and aud it procedures were built as an integral part of operating 
systems and audit plans were established for all allowance schemes and for the utility (fuel delivery) programme. 
2.1.2.  Cross-Border cooperation (CBC) 
CBC is the new tool within ENPI to e nhance cross border cooperation between EU 
Member States and 17 partner countries for the period 2007-2013. On the basis of a 
strategy paper approved in March, 15 CB C programmes, (9 land border, 3 sea 
crossing and 3 sea basin programmes) w ill be established along the Eastern and 
Southern borders of  the enlarged EU. 
The challenge in 2007 was to prepare all the CBC programme documents for 
approval. Programme documents are draf ted by Joint Task Forces and working 
groups established for all programmes and composed of local, regional and national 
actors from both Member States and part ner countries. The preparation of these 
documents follows a bottom-up approach. Each will include a socio-economic analysis of the eligible border regions, l eading to a strategy to be adopted for the 
seven-year programme period. Pr iorities and measures are th en identified as well as 
activities needed to achieve the targets. Th is will set the basis for future calls for 
proposals and projects. 
By the end of year, all programmes (with  the exception of Spain-Morocco and CBC 
Atlantic) had identified their responsib le Joint Managing Authorities in the 
respective EU Member States. The various participating countries worked together 
EN 46   EN intensively to formulate cooperation prio rities, even in sensitive areas where open 
dialogues are sometimes difficult. The Baltic Sea programme was the first 
programme adopted by the Commission in December. The other programmes should 
be ready for adoption by the Commission in mid-2008. The first calls for proposals 
should be launched in the second half of  2008 by the respective Joint Managing 
Authorities. 
2.2. European Development Fund 
2.2.1.  Introduction 
On 31 December, the five-year financing cycle under the 9th EDF, covering the 
period from 2002 to 2007, came to an end. The 9th EDF had been allocated €13.5 
billion, including €2.2 billion for the Invest ment Facility managed by the European 
Investment Bank. To this initial allocatio n €4.1 billion was added gradually from 
uncommitted balances from the previous  EDFs and from funds from projects 
supported under those previous EDFs that were decommitted during the 9th EDF. 
Moreover, as both EDF contracts and paymen ts reached record levels in 2007, and as 
the Commission was able to achieve its objective of committing the entire 9th EDF 
budget before end 2007, before the entry into force of the next EDF, the implementation of development cooperation has accelerated. This is the first time 
that an entire EDF has been committed before  the entry into force of the next EDF. 
Preparatory work on the 10
th EDF advanced during the year  with the adoption of the 
implementing regulations24 and the aid allocation criteria25. The 10th EDF financial 
regulation was expected to be adopted by early 2008. On the basis of the aid 
allocation criteria, the national allocatio ns could be determined, including the 
allocation of an "incentive tranche" rela ted to the quality of governance action plans 
elaborated by the partner c ountries. Fifty-one country stra tegy papers for the period 
2008-2013 were finalised and adopted by the Co mmission before the end of the year, 
which represents some €9 billion. Most othe r country strategy papers were expected 
to be adopted in the first half of 2008, while the regional stra tegy papers and the 
intra-ACP strategy paper should be fi nalised in the second half of 2008. 
The financial envelope adopted for the 10th EDF by the European Council comes to 
€22.7 billion, which includes the following: 
Table 5 EDF10 
Amount in M€26
1. National and regional cooperation 17 766
1.1 National indicative programmes (NIP)   
 A-envelopes (programmable funds)  13 500
 B-envelopes (for unforeseen needs) 1 800
                                                 
24 Council Regulation (EC) No 617/2007 of 14 May 2007; Official Journal OJ L 152 of 13.6.2007, p. 1 
25 Commission Decision C(2007)3617 of 1.8.2007 
26 The amounts in bold are those adopted by the ACP-EC Council of Ministers on 2 June 2006 
EN 47   EN - initial allocation 601
- reserve for B-envelope replenishment and FLEX 1 199
1.2 Regional indicative progr ammes (RIP) (~13% of A-
envelopes) 1 783
1.3 Reserve for NIP/RIP real locations after reviews 683
2. Intra-ACP cooperation 2 700
Sub-total operational credits fo r the ACP managed by the 
Commission 20 466
3. Investment facility (managed by the EIB) 1 500
Total operational credits for the ACP 21 966
OCT 286
Support expenditures 430
Total ACP + OCT + support expenditures 22 682
Own resource contributions from the EIB   
 - ACP 2 000
 - OCT 30
As soon as each EU Member State has ratified the 10th EDF Internal Agreement, and 
all EU Member States and at least two thirds of the ACP states have ratified the revised ACP-EC Partnership Agre ement, commitment of the 10
th EDF funds will 
begin. 
Table 6 NIP allocations 
NIP allocations
W.Africa
E.Africa
C.Africa
S.Africa
Carribean
Pacific35%
35%11%10%6% 3%
 
EN 48   EN Table 7 RIP allocations 
RIP allocations
W.Africa
E.Africa
C.Africa
S.Africa
Carribean
Pacific33%
37%9%9%
7%5%
 
2.2.2.  Africa 
2.2.2.1.  Introduction 
This was a very special year in EU-A frica relations. Following the adoption in 
December 2005 of a common and comprehens ive EU Strategy for Africa, the EU 
and the AU in 2007 took the partnership one  step further in the build-up to the 
second EU-Africa Summit, which was held in Lisbon in December. For two days, 
leaders had substantive discussions on a large number of key political issues, including peace and security, governance and human rights, trade, regional 
integration and infrastructure, migration and climate change. Many participants (on 
both sides) highlighted the pos itive developments in Africa in recent years – more 
growth, more democratic elections, more confidence on the international stage, and 
the emergence of the AU as a strong and independent international actor and a key partner for the EU. Difficult issues, incl uding the Economic Partnership Agreements 
(EPAs) were openly discussed. 
At the end of the summit, the leaders of  the two continents  – representing 80 
European and African countries and almost  1.5 billion people, adopted a political 
pledge: the Lisbon Declaration, a Euro -African consensus on values, common 
interests and strategic object ives. The main policy documents adopted at the meeting 
were the Joint Africa-EU Strategy and the First Action Plan (covering priority actions under eight them atic partnerships for 2008-2010). On this basis, the EU and 
Africa together will now gradually move  the EU-Africa dialogue and cooperation 
“beyond development” (working more closely on issues such as trade, peace and security, and the envi ronment), “beyond Africa ” (jointly addressing issues such as 
UN reform and the situation in the Middle East, Myanmar, and the Balkans as well 
as global issues such as terrorism or climate change) and “beyond institutions” (a 
stronger role for civil soci ety, the private sector a nd other non-state actors). The 
challenge is now implementation and delivery of tangible results. It should be noted 
that this new strategic pa rtnership commits the EU as a whole, including on the 
financial side with global ODA commitme nts to increase to 0.56 % of GNI by 2010 
and 0.7% by 2015 and half of the incr ease to be allocated to Africa. 
EN 49   EN The implementation of the Joint Strategy a nd our overall relations with the AU will 
benefit from the creation in January 2008 of an EU Delegation to the AU in Addis 
Ababa. 
2.2.2.2.  Aid effectiveness and donor coordination 
In 2005, the EU launched a pilot initiati ve as a concrete step towards the 
coordination of policies  and harmonisation of procedures. Mozambique was one of 
the four countries selected. In 2007, there was significant progress towards 
coordinated sector budget suppor t in agriculture, road transp ort and health as well as 
harmonisation of donor programmes. In addi tion, the first phase to reform public 
finance systems that provide functionali ties for direct online budget execution has 
been concluded. The Overseas Development Assistance to Mozambique Database (ODAmoz) is a new EC-funded electronic tool  that provides information on Official 
Development Assistance (ODA) to Mozam bique. It was launched in May and has 
greatly improved transparency and harmonisation of external aid to Mozambique, providing the government with a so lid basis for planning and budgeting.  
Other good practices and cases of operational complementarity  are developing on an 
ad hoc basis in the field. Based on a Nati onal Plan for Aid Efficiency and a strong 
technical secretariat, the government of Bu rkina Faso was able to follow the main 
recommendations of the Paris Declaration. W ith the help of various sectoral and sub-
sectoral working groups and of a strict di vision of labour betw een the partners the 
cooperation efficiency in creased substantially. 
The country strategy paper (CSP) for Si erra Leone was drafted jointly by the 
government of Sierra Leone, the Co mmission and the UK Department for 
International Development. The joint exercise in Sierra Leone sets a unique example of joint programming and marks an important step towards fulfilling the EU’s commitments on harmonisation and comple mentarity of donors’ activities. For 
example, other CSPs were jointly draf ted for South Africa and Somalia. The EU 
played an important role in developing th e Joint Assistance Strategies in Zambia, 
Tanzania, Uganda, Kenya, Ghana and Mali, in particular the joint donor response – 
to be based on a division of labour – to th e poverty reduction st rategies of these 
partner countries. 
2.2.2.3.  Working towards the MDGs 
Poverty reduction and the achie vement of the MDGs remain at the centre of the EU's 
agenda, especially in Sub-Sa haran Africa. Half way toward s the target date of 2015,  
Africa is still progressing too slowly towards most of the MDG-related targets and indicators. Nonetheless, there are enc ouraging trends. According to the United 
Nations 2007 MDG Report, the proportion of  people living in extreme poverty is 
beginning to fall in Sub-Saharan Africa, despite rapid population growth. Moreover, 
progress has been made towards increasing enrolment in primary education in Sub-
Saharan Africa. However, at 30%, the ratio of ch ildren of primary school age out of 
school still remains unacceptably high. 
Infant and child mortality rates have improve d modestly over the past fifteen years, 
but accelerated improvements are urgently n eeded. Health accounts for a large part 
of EU Official Development Assistance ( ODA) to Sub-Saharan Af rica and aims for 
EN 50   EN equitable health services, givi ng a priority to child healt h. As far as the Commission 
is concerned, in addition to  direct project and progra mme support to the health 
sector, it is primarily providing support as general budget support, where some 
indicators are linked to improved health po licies, strategies and outcomes. Moreover, 
a large part of EC direct aid for health is channelled through international organisations and global initiatives, such as the Global Fund to fight HIV/AIDS, TB 
and Malaria (GFATM) a nd the GAVI alliance. 
The MDG targets on water and sanitation re main off-track in Sub-Saharan Africa, 
where in 2004 only 42% of people in rural areas had access to clean water and 37% had access to basic sanitation facilities. Between 2004 and 2007, the EU has committed €500 million under the ACP-EU Water Facility, focusing on countries where current access levels are particularly low. 
2.2.2.4.  Regional cooperation and integration 
In Sub-Saharan Africa, the regional cooperation and integration agenda was 
dominated by negotiations on Economic  Partnership Agreements (EPAs)  with the 
four African regions. The EPAs will contri bute to promoting regional integration and 
development by supporting progressive inte gration of African states into the 
international economy as well as giving improved access to the EU market, which, in turn, will bring trade growth and economic development. 
By the end of the year, interim agreements  were reached with almost all countries 
with which agreement was needed so as to avoid trade disruption and to improve 
market access to the EU. In Central Africa,  an interim EPA was initialled with 
Cameroon and negotiations are continuing with the other count ries of the region 
toward a full EPA. Gabon and Congo Brazz aville, the two other non-LDCs in 
Central Africa, are considering their adhesion to the interim agreement. In West Africa the Commission has signed interim ag reements with Ivory Coast and Ghana, 
and in 2008 the objective is to conclude  a full EPA with the Economic Community 
of West African States (ECOWAS), in cluding the West African Economic and 
Monetary Union (UEMOA) plus Mauritania. In East Africa interim agreements were 
reached with the East African Community a nd the wider Eastern and Southern Africa 
group. In Southern Africa, interim agreements  with five countries in the region have 
been signed. A clear agenda and timetabl e for progressing towards a full EPA in 
2008 has been set. 
In 2008, EPA negotiations will continue in order to turn the interim agreements into 
comprehensive economic partnership agr eements which foster genuine regional 
integration. The Commission has provide d significant financial support to the 
preparation of the EPAs as well as to im proving institutional capacity building and 
bolstering EPA negotiations under the Tr adeCom Facility. In 2007, €16 million was 
earmarked to further integration of ACP stat es into the multilateral trading system of 
the WTO and to finance support to the e nhanced integrated framework. Work is 
underway on regional programming under the 10
th EDF with major attention to trade 
and EPA-related support. Moreover, unde r national indicative programmes the 
Commission and ACP States ha ve allocated significant fina ncial resources to poverty 
reduction and economic growth  in ACP countries  through private sector 
development.  
EN 51   EN In the context of support to regional organisations, the European Commission is 
increasingly using the mechanism of cont ribution agreements (CA) to improve the 
efficiency and effectiveness of delivering ai d to its partners. The CA allows regional 
organisations to use their own rules and pr ocedures, provided that they have been 
confirmed as comparable with international standards. This substantially improves the speed and efficiency of decision-maki ng and promotes the ownership of regional 
programmes. Already in 2005, the Common Mark et of Eastern and Southern Africa 
(COMESA) has signed a CA for an am ount of €33.5 million with the European 
Commission to advance the re gional economic integrati on process. So far, its 
implementation has made good progress. Three additional CAs will be implemented with COMESA with funds committed under th e 9th EDF, covering a broad range of 
sectors such as adjustment costs, agricult ure and conflict preven tion. In West Africa, 
the Commission has signed CAs with the West African Economic and Monetary Union (UEMOA) and the Economic Community  of West African States (ECOWAS) 
aiming to strengthen the regional integrati on agenda of both or ganisations and to 
support the EPA negotiations. 
2.2.2.5.  Implementation 
In Sub-Saharan Africa, 268 new projects for a total of €2.2  billion have been 
approved. The total commitments and pa yments under the EDF in Sub-Saharan 
Africa totalled €11,150 million in commitment s and €10,126 million in payments in 
the period 2002-2007.  
The EU continued to support the govern ments of Sub-Saharan Africa in the 
implementation of their poverty reduction stra tegies. At institutional level, several 
projects were launched in the field of  good governance. For example, Burundi was 
granted €19.75 million for the preparation and implementation of sectoral policies in 
justice, decentralisation, human rights and gender equality. In Rwanda, the 
Commission provided budget support to allow for the overhauling of public finance 
management and the implementation of ne w social policies, which led to the 
improvement of key social indicators. At  operational level, the focus was on the 
modernisation of infrastructu re in general and the road sector in particular, where 
improvements are most urgently needed. The Commission financed, for instance, the 
completion of a road that is part of the regional corridor connecting southern Chad 
and the Central African Republic to the port of Douala on the Atlantic coast. 
During the year, infrastructure (27%), health and education (9%); and economic 
development (8%), received the greatest share of EDF commitm ents. Moreover, the 
Commission devoted considerable additional resources to global initiatives such as 
the Global Fund to fight HIV/AIDS, TB and Mala ria as well as to EU initiatives such 
as the EU-ACP Water and Energy Facil ity and the African Peace Facility. In 
addition, the Commission launched an Infr astructure Trust Fund for Africa, for 
which a contribution of €108.7 million has been decided. The Trust Fund should generate increased infrastr ucture spending and underpin  longer-term development. 
There was a continued investment in ge neral budget support a nd sectoral policy 
support programmes, which accounted for 44 actions, corresponding to 22% of the 
new actions approved during the year. 
EN 52   EN 2.2.2.6.  Monitoring 
Independent monitors assessed 368 operations  in 43 countries in Sub-Saharan Africa. 
These operations consisted of  360 national or regional pr ojects or programmes as 
well as eight specific  components of regional program mes. The total budget of the 
operations monitored was €4.6 billion, of wh ich €4.4 billion were financed from the 
EDF. 
Scores can range from 1 (serious deficien cies in performance) to 4 (excellent 
performance). An average score of 2.5 indicat es that a programme or project is on 
track and achieving expected results. 
The results of the monitoring exercise s howed that projects in Africa performed 
rather well this year, presenting an overa ll average score of 2.66 for all criteria. 
Africa achieved high scores with regard to the releva nce of design, impact and 
sustainability of the projects monitored. Ho wever, improvements are needed in the 
social and economic sector as well as in production, infrastructure and services. 
Table 8 Africa Monitoring Results per ODA Sector 
2,02,32,52,83,0
Social
Infrastructure
and ServicesEconomic
Infrastructure
and ServicesProduction
sectorsMultisector -
CrosscuttingCommodity
Aid and
General
Programme
Assistance
Relevance Efficiency Effectiveness Impact Sustainability
 
2.2.2.7.  Perspectives 
Over the year, planning continued for the 10th EDF, covering the financing of EC 
cooperation activities for the period 2008-2013. Programming exercises have been 
carried out and draft strategy papers comple ted with all but thr ee countries in Sub-
Saharan Africa. Thirty one  country strategy papers  and indicative programmes 
defining the cooperation and aid activities have been approved for an amount of €8 
billion. The programming process at national as well as at regional and all-ACP level 
will be finalised in 2008. 
Out of the envelope for national and regional cooperation under the 10th EDF, more 
than 90% (or €16 billion) is earmarked for geographic cooperation with Sub-Saharan Africa. Out of this amount, €12 billi on will be programmed within national 
indicative programmes at the start of the 10
th EDF. Of this amount, an estimated €3.4 
billion (28%) will be provided under general budget support to the national 
EN 53   EN treasuries. A further €1.8 billion (15%) is ex pected to be mobilised in the form of 
sector budget support in the contex t of sector wide approaches.  
More than a quarter (over €3 billion) of the national indicative programmes will be 
invested in transport infrastructure. Th ese investments often have a regional 
dimension and will be complemented with investments in infras tructure funded from 
the regional and the all-ACP envelopes, incl uding the EU-Africa Infrastructure Trust 
Fund, to enhance regional in tegration and continenta l interconnectivity. Total 
investment in infrastructure in  Sub-Saharan Africa under the 10th EDF is expected to 
exceed €5 billion. 
Other important sectors are governance, including peace and security, for which 
more than €1.5 billion is programmed, and rural development and agriculture for 
which more than €1 billion is earmarked. Additional support to the agricultural sector is foreseen for up to €280 million over the period 2007-2010 for the African sugar protocol countries benefiting from EC  Budget-funded accompanying measures to 
help them restructure or dive rsify out of the sugar sector. 
In order to help countries to plan MDG -related public funding better, the European 
Commission, in consultation with EU Memb er States, has been developing the MDG 
Contract that will provide recipient countries with l onger term, more predictable 
general budget support under the 10
th EDF. The MDG Contract targets well 
performing countries that have successfu lly implemented budget support in the past 
and show a commitment to achieving a nd monitoring the MDGs. This form of 
budget support will provide a guaranteed leve l of support each year within a strong 
framework for monitoring performance and results. 
Grassroots poverty reduction in Rwanda 
The Ubudehe programme in Rwanda is a lleviating rural povert y through community 
participatory approaches based on traditional Rwandan cultural practices. The 
programme is part of a larger effort to decentralise the hierarchical Rwandan 
governance system. Its main objective is to revive and foster collective action at 
community level. By empowering the marginalised as well as strengthening the communities’ ability to make decisions locally, the programme helps to improve 
governance, to restore trust in local st ructures and to build accountable local 
institutions. The programme was first pilo ted in the Butare province in early 2001. 
The Commission has financed the programme bo th in its initial pilot phase and, more 
recently, in its national roll-out. By mid 2008, the programme will have injected €25 
million at grassroots' level nationwide. 
 
Census support in Nigeria 
The census support project in Nigeria  is the largest and most successful Commission-
funded project ever in Nigeria. With €116.5 million, the Commission's contribution 
accounts for over half of the total budget. The census filled a yawning gap in the statistics necessary for developing, implementing and monitoring economic and 
social policies. It provided not only accurate  and complete data but was also accepted 
by the majority of Nigerians. Past censuses in Nigeria had been disputed and rejected 
EN 54   EN by large sections of the population. The final results were published in May. The 
statistics now available may provide a basis upon which further aid may be 
distributed in the future. The project wa s implemented with other donors, most 
notably the United Nations Development Programme (UNDP), the United States 
Agency for International Development (U SAID) and the United Nations Population 
Fund (UNFPA) as well as Nigerian  civil society organisations.  
 
Access to financial services for poor people 
The EU/ACP microfinance framework programme  is a flagship for the 
Commission’s support to microfinance. The programme aims to expand poor 
people’s access to a wide range of quality financial services. For example, with funding from the EU/ACP microfinance pr ogramme, ProCredit ha s strengthened the 
capacity of its microfinance bank in the Democratic Republic of Congo (DRC). The 
grant enabled the bank to introduce technology- based products and to  install the very 
first ATMs in the DRC. Moreover, ProCre dit has opened 100 point-of-sales devices 
in Kinshasa to facilitate pe ople’s access to financial serv ices. Funds were also used 
to establish branches outside the capital, where access to financial services is limited. 
In the first year, the ba nk exceeded its own targets, growing from 6,700 savings 
accounts to almost 30,000 and providing 4,500 new loans. 
2.2.3.  Caribbean (incl. OCTs) 
2.2.3.1.  Introduction 
The EU strategy for the Caribbean is articulated around a vision of the future 
founded upon a history of shared values , in parallel with maximising the 
opportunities of the Cotonou Agreement27. The strategy aims at an enhanced EU-
Caribbean Partnership consisting of a set of  interrelated facets, including a political 
partnership based on shared values; addressing economic and environmental 
opportunities and vulnerabilities, promoti ng social cohesion and combating poverty 
including the fight against HI V/AIDS, strengthening of health care systems, as well 
as the fight against illic it drugs and tax fraud. 
As specified in the Cotonou Agreement, the current trade system will be replaced by 
a wider economic partnership agreement (E PA) as from 1 January 2008. The aim of 
the EPA is to promote regional integrat ion and economic development. The EPA, 
which was initialled in December, will s upport the ambitious regional integration 
process that is already under way, helping to maximise its benefits. 
The proposed 10th EDF country strategies address bot h the private and public sector. 
Focal sectors include governance and co mpetitiveness, infrastructure and 
interconnectivity, macroeconomic budgetary  support and povert y reduction. Non-
focal sectors include EPA capacity building related to the regional programme for additional trade-related assistance acco mpanying the EPA, and good governance in 
the tax area. 
                                                
 
27 COM(2006)86 final 
EN 55   EN Implementation of the 9th EDF for OCTs got off to a slow start, but by the end of 
2007 all primary commitments had been made. The majority of the 9th EDF 
territorial and regional programmes and proj ects for the OCTs will still be operating 
in 2008. Following amendment of th e overseas association decision28 and the related 
implementing regulation29, the programming exercise for the 10th EDF was launched 
and it should be completed for most OCTs in 2008. In addition, an in-depth 
discussion on the future of OCT-EU relations is foreseen, by means of a Green Paper 
to be published in 2008. 
2.2.3.2.  Aid effectiveness and donor coordination 
In the Caribbean, donor coordination is lim ited to the few bila teral donors present 
there. There is, for example, close cooperation with the UK Department for 
International Development, which particular ly provides technical assistance to the 
Eastern Caribbean countries, and with the Inter-American Development Bank and 
the Caribbean Development Bank, in particular  with regard to th e implementation of 
regional integration programmes. The Comm ission is co-financi ng, with the World 
Bank, a school rehabilitation project in Gr enada; the Caribbean Regional Technical 
Assistance Centre, with UNDP, in Barb ados. In Dominica and Grenada, the 
Commission jointly prepared budget suppor t programmes with the World Bank as 
well as an agricultural census and revi ews in collaboration with the Food and 
Agriculture Organization (FAO). Togeth er with the World Bank, which has 
contributed to some public expenditure and financial accountability assessments, the Commission is supporting public finance ma nagement reform in the Caribbean. 
2.2.3.3.  Working towards the MDGs 
The Dominican Republic was chosen as one of the UN Millennium Project's pilot 
countries to coordinate, monitor and fo llow-up on the progress towards the MDGs. 
This has been taken into consideration in the preparation of the 10
th EDF national 
indicative programme, which includes €60 million for human and social 
development. The funds, which represent 40% of the total funds av ailable, are to be 
channelled through general budget support. Th is allocation is intended to cover the 
long-term human and social development ac tivities aimed to achieve the MDGs, in 
particular the goal of universal primary edu cation. In order to fu lfil this objective, 
€52 million was already allocate d to education under the 9th EDF. 
Primary education is also one of the main concerns in Haiti, which remains one of 
the most fragile and poor countries in th e region after 25 years of political and 
economic turmoil. Education remains essential for poverty reduction and the socio-economic development of the country. An  EU-funded progra mme worth €14 million 
has been put in place to s upport the quality of educati on. It is coordinated by the 
                                                
 
28 Decision 2001/822/EC of the Council of 27 November 2001 on the association of the overseas countries 
and territories with the European Community, OJ L 314, 30.11.2001, p. 1. Decision as amended by 
Decision 2007/249/EC (OJ L 109, 26.4.2007, p. 33). 
29 Regulation (EC) No 2304/2002 of the Commi ssion of 20 December 2002 implementing Council 
Decision 2001/822/EC on the association of the overseas countries and territories with the European 
Community, OJ L 348, 21.12.2002, p. 82. Regulation as amended by Regulation (EC) No 1424/2007 
(OJ L 317, 5.12.2007, p. 38). 
EN 56   EN Canadian International Development Agency (CIDA), the Inter-American 
Development Bank (IADB) and the World Bank. 
The Commission is also s upporting several projects and programmes to combat 
HIV/AIDS, which is a major concern in the Caribbean, where infection levels are the 
second highest worldwide. The Commission is  the largest individual donor assisting 
the Caribbean OCTs in this area and r ecently approved a €6 million grant from the 
9th EDF to support the Caribbean Dutch and Br itish OCTs in their efforts to reduce 
the spread of the disease. The programme ta rgets eleven beneficiary territories and is 
being implemented by the Pan American Health Organisation (PAHO). 
2.2.3.4.  Regional cooperation and integration 
After intense dialogue, a full EPA has been in itialled with all 15 Member States of 
the Caribbean Community (CARICOM) in D ecember, covering services, trade in 
goods and development support. The Caribbean  is the first ACP region to agree on a 
full EPA. Some 20 sectoral programmes c overing all areas of the agreement are 
being elaborated, translating the cooperati on provisions of the EPA into concrete 
actions. These programmes are intended to specify all necessary actions the region has to undertake at national and regional level in order to meet the commitments 
defined by the EPA. The Caribbean regi onal programme that is currently under 
preparation will be focusing on implementing the EPA accompanying measures. 
2.2.3.5.  Implementation 
By the end of the year, a total of €258 million under the 9
th EDF had been 
committed. In the Caribbean, 14% of this year's commitments were devoted to infrastructure, 12% to education and 11% to economic sector development programmes. €37 million were provided fo r emergency relief operations. General 
budget support and sectoral policy support programmes accounted for 16% of the new programmes approved in 2007. The cu mulated commitments and payments 
under the EDF in the Caribbean region totalled €945 million in commitments and 
€706 million in payments over the period 2002-2007.
 
2.2.3.6.  Monitoring 
In the Caribbean, 110 operations in 18 count ries were monitored, amounting to €919 
million of which €738 million were financed from the EDF. The combined portfolio 
included 72 national or regional projects and programmes as well as 38 specific 
components under regional programmes. 
The region performed well, presenting an overa ll average score of 2.67 for all ROM 
criteria. Slight weaknesses existed in soci al infrastructures and services as well as 
production. A special study on performance was conducted early in the year due to a 
low average efficiency score in 2006. As a result, corrective me asures were taken 
which have slightly increased the efficiency score. 
Table 9 Caribbean Monitoring Results per ODA Sector 
EN 57   EN 2,02,32,52,83,0
Social Infrastructure and
ServicesProduction sectors
Relevance E fficiency Effectiveness Impact Sustainability
 
2.2.3.7.  Perspectives 
The conclusion of the programming exercise for the 10th EDF was delayed in various 
countries of the region, while awaiting th e determination of the incentive tranche 
linked to the quality of a governance action plan prepared  by the partner countries 
and to be added to the initi al aid allocation. Only 6 of the 15 country strategy papers 
were adopted in 2007. The remaining strategy pa pers are expected to be finalised in 
the first half of 2008. 
The new programming exercise 2008-2013 represents an important political 
commitment by the EU towards the Caribbea n. A new generation of  country strategy 
papers has been developed under the 10th EDF programming process.  General budget 
support is considered as the most efficient way of aid delivery and will be considered 
therefore a priority wherever conditions permit. Under the 10th EDF the total amount 
destined for national and regional indicative programmes is around €731 million. 
The Caribbean has experienced a signifi cant expansion of budge t support. All the 
Caribbean countries, with the exception of Belize and Suriname, have undergone the 
preparatory steps to qualify for budget support. For the period 2008-2013,  €731 
million have been earmarked so far, for geographic cooperation at national level with the Caribbean countries. One third of this  amount is earmarked for general budget 
support and another 23% is earmarked for sector budget support, mainly in support 
of sector wide approaches in  the area of governance. The next most important sector 
is infrastructure, for which 28% of the national indicative progr ammes are set aside 
so far. The validation of conditions for budget support in the OCTs should start in 
2008. In the follow-up it is also foreseen to  channel most of the funds of the 10
th 
EDF to the OCTs through budget support. 
Six Caribbean countries are also party to  the EC-ACP sugar protocol and benefit 
from very significant accompanying measur es (for a total of €325 million) to help 
restructure and/or diversify out of the sugar sectors. The multi-annual indicative programmes for the period 2007-2010 were a dopted in the course of the year. 
Support for the rum sector 
The rum industry is of historical and economic relevance to the Caribbean. The 
sector's contribution to the region's economie s is significant, dire ctly or indirectly 
employing 50,000 people. Rum is the fourth  largest traditi onal export product, 
EN 58   EN providing over €200 million a year in fore ign exchange. The lib eralisation of the 
spirits markets between the EU and the US left the rum industry in the Caribbean struggling. In 2002, the Commission laun ched the Integrated Development 
Programme for the Caribbean Rum Sector  (IDPCRS) worth €70 million, to prevent 
the socio-economic deterioration that would have been brought about by the 
continuing process of trade liberalisation. The programme will run until 2010 and has 
already contributed to enhancing the comp etitiveness and profitability of the rum 
sector. In particular, it has opened the sector markets in Eu rope by helping it to move 
from being a supplier of commodity rum to being a supplier of branded products. 
Moreover, the co-funding scheme that has been put in place acts as a catalyst for new private sector investment in  the sector and the region.  
 
Restoring an historic bridge in the Netherlands Antilles 
Willemstad, the capital of Curacao and the Netherlands Antilles, is built around the 
entrance of the largest natural harbour in the Caribbean. The two parts of the city 
have been linked for more than a century by a floating bridge of remarkable design. 
The Queen Emma Bridge – affectionate ly known as the “Swinging Old Lady” – 
swings up to 20 times a day, welcoming ship s to the island of Curacao. Up to 15,000 
pedestrians use the bridge daily. Thus, the br idge is not only a historic landmark and 
tourist attraction, but also serves as the mo st important logistical link in the city 
centre. This unique monument is part of the UNESCO World Heritage City of 
Willemstad. The EU has granted €9 million to  finance the restoration of the bridge 
and the works are now in full swing. The obj ectives of the project are to safeguard 
and enhance the attractiveness of the city centre of Willemstad, while contributing to 
the development of the t ourist sector in Curacao. 
The works to restore this world famous pontoon bridge started in August 2005 and 
are now completed. Given the monumental na ture of this project both the original 
design and the materials were used, whereby most of the timber and sections of the 
steel structure were replaced. The metal railing and typical light masts were likewise 
restored. In the interim, ferry and bus  services were provided to minimise 
inconvenience to the public . The project also include d an information campaign 
while guides were trained to provide informa tion as well as site tours. By means of 
special boat excursions, concurrent restor ation could be viewed at various works 
sites; whereupon the restoration in itself became a tourist attraction as the bridge’s 
history and restoration provi ded an impressive exhibition. 
 
Reducing poverty in the Dominican Republic 
The Commission contributed to reducing poverty and improving the livelihoods of 
500,000 slum dwellers in 16 marginalised  neighbourhoods of Santo Domingo. Local 
communities were involved to improve health and sanitation infrastructure, as well 
as the treatment and conservation of dri nking water and solid waste management in 
the neighbourhoods concerned. The project ha s taken into account  the socio-cultural 
needs of the communities and has fostered participatory approaches to create 
ownership. This has made the project effici ent and sustainable. With the Commission 
EN 59   EN contribution of €21.8 million, pollution gene rated by garbage and water waste has 
been reduced significantly. Likewise, the drin king water distribution system has been 
improved. Likewise, 44.7 kilometres of new pipe-systems as well as works on water 
management and control have improved sanita tion and health of the local population. 
For the collection of garbage some micro-enterprises have been created. These micro-companies are managed locally a nd continue to produce revenue, which 
makes them and the entire projec t sustainable in the long run.  
2.2.4.  Pacific (incl. OCTs) 
2.2.4.1.  Introduction 
Melanesia gradually began to calm af ter the shocks of 2003-2006 breakdown of 
government control in the Solomon Islands; pol itical turmoil in Ti mor Leste; a fourth 
coup d'état in Fiji. The Commission supporte d the Regional assistan ce Mission to the 
Solomon Islands, stabilisation and recovery in Timor Leste, and political dialogue for 
a return to democracy in Fi ji under Article 96 of the Co tonou Agreement. Following 
rioting in Tonga, Polynesia was the subject  of close monitoring during the year. 
Several major events marked EU-Pacific relations, including the launch of a regular 
EU-Pacific Islands Forum (PIF) to support political dialogue on issues such as 
security and governance, economic growth a nd international trad e, the environment 
and development cooperation. The dialogue wi ll consist of a triennial Ministerial 
Troika in Brussels and annual Senior Officials’ Meetings in Suva (Fiji) as the Headquarters of the PIF Secretariat. 
Economic Partnership Agreement (EPA) nego tiations led to a Pacific ACP Interim 
Agreement on 23 November, currently signed by Papua New Guinea and Fiji but open to signature by all Pacific ACP countries. This opens the way for a 
comprehensive EPA (including services, fisher ies and investment) to be finalised in 
2008. As regional programming was synchroni sed with EPA nego tiations, it can now 
proceed on the basis of this core agreement as well as the broader arrangements identified. This will ensure that adequate development assistance is in place to flank 
trade commitments. 
2.2.4.2.  Aid effectiveness and donor coordination 
(1) On the basis of the European Consensus,  synergies were sought with Member 
States (France, the UK, Germany and Ire land) notably to se cure appropriate 
levels of Aid for Trade, as well as to help achieve the MDGs and to form an internationally significant alliance  in the area of climate change,  aid 
effectiveness and donor coordination. 
In line with the priorities  identified in the 2006 Co mmission Communication on EU 
relations with the Pacific Islands
30, some important steps were taken to implement 
the principles of aid effectiveness. The government of the Solomon Islands signed a 
Memorandum of Understanding with the Commission and New Zealand's International Aid and Development Agen cy to enhance effectiveness of the 
education sector reform programme by pr omoting country ownership and alignment 
                                                
 
30 COM (2006)248 final 
EN 60   EN with national strategies as well as harmonisation and mutual accountability for 
development results. The Commission incr eased harmonisation by promoting the use 
of co-financing arrangements. The Commission signed two agreements with the World Bank to support public financial ma nagement reforms in Timor Leste and 
rural development in the Solomon Islands. A contribution agreement with the Asian Development Bank provided for post tsunami reconstruction in the Solomon Islands 
in response to tsunami of April. 
2.2.4.3.  Working towards the MDGs 
A lack of reliable data makes it difficult to  measure the region's progress towards the 
MDGs. Nonetheless, it is possible to identify  some areas where it is forging ahead. 
Primary school enrolment is relatively high. Fiji, Kiribati, Samoa, Tonga and Vanuatu currently enjoy enrolment rates of over 95%. However, quality of education and drop-out rates remain important issues to resolve. The Commission has continued to support education, both at  national and regional level through, for 
instance, the Pacific Regional Initiatives  for the Delivery of Basic Education. 
Progress towards gender equa lity and empowerment of women has been made but 
disadvantages remain. In 2007, special pol icies and programmes were designed and 
implemented to address this deficit. For example, Papua New Guinea was selected for a joint Commission/UN partnership on Gender Equality for Development and 
Peace. 
Despite improving health indicators in mo st of the region, si gnificant regional and 
sub-national disparities rema in. Support for improving health  infrastructure has been 
provided to Kiribati, Tonga and the Cook Islands. Papua New Guinea received US$2 
million under the Global Fund to fight  HIV/AIDS, TB and Malaria. 
2.2.4.4.  Regional cooperation and integration 
The Pacific Islands Forum, supported by its network of regional agencies belonging 
to the Council of Regional Organisations  in the Pacific (CROP), has achieved 
notable successes with regard to aligning regional policies and programmes on issues 
such as climate change, fisheries and non- proliferation. The Pacific Plan, adopted by 
the Pacific countries in 2005, is the ma in instrument for promoting regional 
integration. It identifies priority initiatives under the four inter-related goals of economic growth, sustainable developmen t, good governance and security. The EU's 
regional policy supported the Pacific Plan by establishing a regular political dialogue 
as well as contributing to specific areas such as trade, education and training, 
fisheries, agriculture, tourism and envir onmental protection. Political dialogue will 
continue in 2008, most notably in the ar eas of regional secu rity and governance, 
economic stability and growth, internationa l trade and environmen t. The finalisation 
of a regional cooperation strategy is envi saged for 2008. High priority will be given 
to natural resources conservation, regional integration, and trade. 
A WTO-compatible goods-only interim agr eement has been signe d with Papua New 
Guinea and Fiji, the two countries which account for virtually all goods trade with 
the EU. A full regional EPA adding fisher ies, services, rules and appropriate 
development provisions is expected to be concluded by the end of 2008. 
Programming for the 10
th EDF regional programme ran in parallel to EPA 
EN 61   EN negotiations and by the end of 2007 the grounds for a regi onal indicative programme, 
to be concluded in 2008, had been laid. 
2.2.4.5.  Implementation 
By the end of the year, a total of €122 million had been committed under the 9th 
EDF. This included the additi onal allocations provided to some Pacific countries and 
OCTs following the end of term review as well as the provisions to support EPA 
negotiations and agricultural exports wo rth €10 million. The greatest share of EDF 
commitments in 2007 was devoted to governme nt and civil societ y support (28%). 
Water projects accounted for 22% of ne w programmes, followed by environment and 
education with 10% each. Under the EDF in the Pacific, the combined commitments 
totalled €362 million while payments to talled €258 million in the period 2002-2007.  
On the Solomon Islands, the Commission de livered essential equipment and training 
to the national Competent Authority to strengthen its capacity to certify the 
compliance of fish products in line with EU  health and sanitary regulations. In Papua 
New Guinea and Samoa the Commission ha s supported water supply and sanitation 
projects to reduce, for example, water-bor ne diseases. A Disast er Risk Management 
initiative has been launched in eight Pacifi c countries to respond more effectively to 
natural disasters. Vanuatu saw the roll- out of two major pr ogrammes to foster 
economic growth by supporting 33 producers' associations as well as the tourism 
industry. Harmonised regulations, rules and procedures have been developed in the 
area of fisheries stock assessment a nd management across the region. Those 
measures have contributed significantly to  the enhancement of fisheries management 
methods and safeguarding the depletion of natural resources. 
2.2.4.6.  Monitoring 
A total of 98 national and regional projec ts as well as regional programmes were 
monitored in the Pacific region. The tota l budget of the operations monitored was 
€227 million. 
With an average score of 2.52 across all sect ors, the performance of cooperation was 
on track. However, the score has signif icantly decreased since 2006. This is 
particularly due to weak pe rformance on efficiency and sustainability in the social 
infrastructure and services as well as production sectors. Monitoring results were 
used to improve project management and the design of future actions. 
Table 10 Pacific Monitori ng Results per ODA Sector 
2,02,32,52,83,0
Social Infrastructure and Services Production sectors
Relevance Efficiency Effectiveness Impac t Sustainability 
EN 62   EN 2.2.4.7.  Perspectives 
The 9th EDF end-of-term review concluded successfully and all projects were 
approved, including those financed from the additional €10 million allocated to the Regional Programme in 2006, on the basis of  the mid-term review. On 18 October 
Commissioner Michel, who was in Tonga for the 19
th Post-Forum Dialogue, signed 
13 of the 15 country strategy papers and indicative programmes. Thus, programming 
of the 10th EDF is nearly finished. By the y ear’s end Timor Leste programming was 
finalised and the 10th EDF allocation for Fiji will be programmed based on the 
progress of the Cotonou Article 96 political dialogue. 
The Commission is now pursuing a strate gy that builds on its multi-country 
operations experience acquired during the 9th EDF, toward mutual learning and 
creating economies of scale. To ensure implementation modalitie s are coordinated, 
nine of the smallest Pacific islands adopt ed the same focal sectors, namely water 
and/or energy in an environmental pe rspective of sustainable development. 
For the period 2008-2013,  €337 million have been earmarked so far for geographic 
cooperation at national level wi th the Pacific count ries. In terms of sector allocations, 
the largest share of €118 million is to be provided to rural development and agriculture, representing 35% of the total allocations. Environmental issues will be 
mainstreamed to ensure sustainable manage ment of natural resources, notably in the 
water and energy sector, which is to be funded with approximately €93 million that 
makes up 28% of the overall commitments. 
Due to the small scale and remoteness of most Pacific countries, Vanuatu and Samoa 
so far are the only countries in the regi on to receive budget support. Further efforts 
are needed to extend the use of this ai d implementation modality in the region. 
Assistance provided through general or sector budget support under the 10
th EDF 
will represent 10% of the allocation to the region.  
Social sector support in Tonga 
The social sector support project in Vava 'u has successfully constructed schools and 
health centres and expanded and refurbished the staff quarters of the hospital, schools 
and health centres. The involvement of ci vil society in implementing the project has 
met with wide-spread recognition and sa tisfaction among the island population. 
These focused investments on this particul ar island of Tonga reached their final 
stages by the end of 2007 and have had a positive impact on the island’s living standards.  
 
EN 63   EN Table 11 EDF-Sector   Breakdown by sector of external aid financed on the European Development 
Fund (EDF) managed by EuropeAid in 2007
Commitments ( € million)
Payments ( € million)
Bilateral and Multilateral ODA/OA. Excl non-ODA/OA resources (Peace facility,…).1 247 M€, 35%
751 M€, 22%372 M€, 11%323 M€, 9%462 M€, 13%335 M€, 10%Social Infrastructures: Education, Health,
Water, Government & Civil Society,
Other 
Economic Infrastructures & Services :
Transport, Communications, Energy,
Other services
Production : Agriculture, Forestry &
Fishing, Industry, Mining & Construction,
Trade & Tourism
Multisector/Crosscutting : Environment,
Other
Budget Support, Food Aid, FoodSecurity
Others - Including Emergency
assistance, reconstruction relief
852 M€, 30%
799 M€, 28%195 M€, 7%
156 M€, 5%
274 M€, 10%557 M€, 20%Social Infrastructures: Education, Health,
Water, Government & Civil Society,
Other 
Economic Infrastructures & Services :Transport, Communications, Energy,
Othe r se rvice s
Production : Agriculture, Forestry &Fishing, Industry, Mining & Construction,
Trade & Tourism
Multisector/Crosscutting : Environment,
Other
Budget Support, Food Aid, Food Security
Others - Including Emergency
assistance, reconstruction relief
 Development in the Cook Islands 
This project aimed to raise the standard of social services delivery in the outer 
islands. The stakeholders, including the users of services provided, project 
management, the relevant government agen cy and private sector representatives, 
have confirmed improvements to the teach ing and learning environment, enhanced 
aesthetics, increased opportunities for di stance education, an improved attitude 
towards education, improved health care a nd safety, increased income and instant 
access to medical information through broa dband internet access. The project is 
having a significant impact on gender issu es. The status of women is being 
promoted. Through a component for non-state actors, the project is benefiting groups 
mostly composed of women and youth. E nvironmental conservation and preservation 
of local cultural herita ge are also supported.  
EN 64   EN Table 12 EDF-ACP   Breakdown by sector of external aid financed on the 
European Development Fund (EDF) managed by EuropeAid in 2007
Commitments (€ 
million )Payments (€ 
million )
Africa 2 427               2 327               
Caribbean 272                  247                  
Pacific 142                  49                    
Overseas Countries & Territories 110                  34                    
ACP Unallocated 538                  176                  
Total 3 489               2 833               
Bilateral and Multilateral ODA/OA. Excl non-ODA/OA resources (Peace facility,…). 
2.2.5.  Global Programmes 
The EU has maintained its support to peace in Africa through the Peace Facility for 
Africa. Launched in 2004, the Facility has so far helped to fund AU peace support operations and capacity building in the ar ea of peace and security. The Commission 
has financed the AU Mission in Sudan to  restore peace in Darfur with €305.6 million 
since 2004. It continued support to the Centra l African Republic and most recently to 
Somalia where €15.5 million have been t hus far committed. In 2007, the Peace 
Facility was replenished with an add itional €139.2 million, bringing the total amount 
to €439.2 million of which €39.2 million came from EU Member States' additional voluntary contributions. Under the 10
th EDF, the Peace Facility  will be provided with 
€300 million for an initial three-year-period (2008-2010). 
In 2007, the ACP-EU Water Facility31 fully committed some €500 million to 
improve water and sanitation for those most  in need. About 80% of the available 
funds were allocated to two calls for proposals, with other co-funding actions 
absorbing the balance. They resulted in agreem ents to co-fund 175 wa ter projects in 
50 ACP countries. When implemented, the projects will provide access to safe water for 20 million people and improve sanitary  conditions for nine million people. 
Outside the scope of the calls for proposals,  financial support was granted to the Nile 
Basin Initiative, the African Water Faci lity and the EU-Africa Infrastructure 
Partnership. 
Some 90% of the €220 million available w ithin the scope of the ACP-EU Energy 
Facility
32 were allocated to a call for proposals.  As a result, a total number of 75 
projects in 38 ACP countries were a pproved with large amounts allocated for 
electrical transmission line s and hydropower projects. F unds were also assigned to 
actions under the EU-Africa Infrastructure  Partnership, which aim to provide 
                                                 
31 For further information, visit http://ec.europa.eu/europeaid/water-facility  
32 For further information, visit http://ec.europa.eu/europeaid/energy-facility  
EN 65   EN institutional support to Central, Eastern a nd Southern African Power Pools and to the 
African Forum for Utility Regulators. 
The Intra-ACP programmes of the 9th EDF had been fully committed by the end of 
the year and implementation of activities wi ll continue during th e operational period 
of the 10th EDF. In 2007, the total commitments  under the 9th EDF amounted to €407 
million. Several innovative support programmes were initiated. The Migration Facility received an alloca tion of €25 million from the 9
th EDF. The Natural Disaster 
Facility, aimed to ensure preventive actio ns and regional and national institutional 
capacity reinforcement, was granted €12 million. ACP states have been offered 
capacity building support, for example, on the implementation of multilateral environmental agreements and on rural de velopment and trade related activities. 
Finally, the Commission will contribute €19.5 million to an innovative programme 
that deals with capacity building for Multilateral Environmental Agreements 
(MEAs). The core component consists of MEA hubs placed with regional bodies in 
the three main ACP regions. Other components provide support for the Clean Development Mechanism, both to ensure investments in emission reductions in 
developing countries and to combat desertif ication, as well as to help eliminate 
obsolete pesticides. 
The sectoral/thematic division of commitments: 
Table 13 Total commitments  
Social: Health/Education €567 million 
Institutional support/capacity building €89 million 
Natural Resources and Infrastructure €323 million 
Trade and Private Sector Support €115 million  
Coordination/Others €20 million 
Total €1 114 million 
 
2.3. Development Cooperation Instrument  
2.3.1.  Asia 
2.3.1.1.  Introduction 
The interdependence between EU and Asian countries has reached unprecedented 
levels, and strengthening EU -Asia relations has continued to be one of the EU’s 
external policy priorities. The overall relationship with Asia is complex; for this reason, the EU has been fostering dialogue and cooperation with all Asian partner 
countries and numerous sub-regional pa rtners and policy forums. To further 
strengthen political and economic rela tions, regular summits took place with 
individual countries and within the AS EM framework. EU and ASEAN Heads of 
States and Governments gathered in Singa pore on 22 November to celebrate thirty 
years of formal EU-ASEAN relations and endorsed the EU-ASEAN Plan of Action. 
The tenth China-EU Summit was held in Beijing on 28 November and the 8th EU-
India Summit took place in New Delhi on 30 November. Furthermore, the Commission has moved to negotiate free trad e agreements with South Korea, India 
and ASEAN, as well as partnership and c ooperation agreements with Asian partners. 
EN 66   EN The EU pursues an increasingly close relationship with Asia by going beyond 
traditional cooperation, to economic in tegration and deepening of political 
cooperation. The strategic framework for th e Commission’s actions in Asia is based 
on the Communication Europe and Asia33, which concentrates on political and 
security issues, economics, development, energy security, climate change/environment as well as socio-cultural  affairs and regional integration within 
ASEAN. Cooperation and policy approaches with Asian sub-regions and countries 
have been developed through a series of  follow-up Communicat ions on South-East 
Asia, India and China. 
Cooperation activities between EU and Asia  are financed through the development 
cooperation instrument (DCI). Assistance to partner countries  should support the 
implementation of policies aimed to eradi cate poverty and to achieve the MDGs. The 
Commission adopted 18 indivi dual country strategies and a regional strategy, 
covering cooperation with Asia for th e period 2007-2013, for which an amount of 
some €5.2 billion has been earmarked, and implementation is underway. The EU also 
increasingly finances programmes to seve ral Asian countries through the industrial 
cooperation instrument (ICI), which, in addi tion to traditional developed partners 
(including Japan and Korea), now includes five  other countries and territories in the 
region. 
Although during the year Asia progressed towards the achievement of the MDGs, 
poverty remains a significant ch allenge, as the region is st ill home to two thirds of 
the planet’s poor people. Nevertheless, in 2007 Asia surpassed NAFTA to become 
Europe’s main trading partner, accounting fo r a third of Europe’s total trade flows. 
Moreover, European FDI in Asia amounts to a third of European investment abroad, and is growing. 
2.3.1.2.  Aid effectiveness and donor coordination 
Progress on aid effectiveness has been most  encouraging in countries like Cambodia 
and Vietnam, but also in Laos, where the aid effectiveness agenda has been 
translated into a national commitment with strong government leadership. The 
Commission contributed to donor  coordination and dialogue with the governments of 
partner countries, taking the lead in working groups for areas like the education 
sector in Indonesia, wh ere a major Commission intervention for sector budget 
support is being prepared, the education se ctor programme and the aid effectiveness 
subgroup on cost norms in Vietnam. In Bu rma/Myanmar, the Commission played a 
key role in the preparation and manage ment of joint donor programmes for the 
Global Fund to fight HIV/AIDS, TB and Malaria (GFATM) and the education sector. 
Together with local EU Presidencies, the Commission contributed to initiatives to 
implement the EU code of conduct, ac ting within the existing donor cooperation 
frameworks.
 In Cambodia the EU Road Map for aid effectiveness adopted in 2006 
has been implemented and in  Indonesia an EU road ma p on assistance coordination 
and rationalisation was agreed. 
                                                 
33 COM(2001)469 final 
EN 67   EN DCI has encouraged stronger ownershi p of partner governments and their 
cooperation in preparation and implementa tion of the programmes. Resources are 
being concentrated on fewer strategic priori ties and sectors, especially education, 
health, governance and environment. It fac ilitates joint financing arrangements with 
other development partners, prompting more coordinated missions and approaches as 
well as a harmonised and more efficient dial ogue – which is especially important in 
fragile and volatile contexts (Afghanist an, Bangladesh, Burma/Myanmar, Nepal, 
Pakistan, and Sri Lanka). However, pr ogress on promoting more coordinated 
approaches and support to capacity devel opment has been slower than expected. 
As a result, the proportion of aid channelled and implemented through country 
systems is growing rapidly. In 2007 less th an one third of Commission disbursements 
on pre-2007 aid commitments were paid  through country systems (roughly €200 
million). However, of new aid commitmen ts (€330 million) near ly half will be 
disbursed through the budget system  of beneficiary countries.  The practice of 
establishing Project Implementation Units ha s been almost completely abandoned for 
new commitments. 
2.3.1.3.  Working towards the MDGs 
The 2007 MDG progress report for Asia and th e Pacific concludes that "Asia is one 
of the world's most dynamic regions and has been forging ahead on many of the MDGs". The region as a whole is found to  be on track for reaching the targets on 
reducing extreme poverty, primary educati on, including gender parity in primary 
enrolment, as well as mortality of under-fiv es. Progress is less satisfactory for HIV, 
AIDS and tuberculosis, access to water and sanitation, underweight children, and 
deforestation. There are huge differences  in performance among countries. For 
instance, while China, Indonesi a, Malaysia and Thailand have already met the target 
on reducing extreme poverty, the progress ma de by India and the Least Developing 
Countries is slow. On primary education South Asia, except India and Nepal, is 
progressing slowly even though it approaches  the goal. Some Asian countries are 
progressing too slowly on cutting under-five mortality. Several countries in Asia and 
South East Asia are advanc ing too slowly on underweight  children. All South East 
Asian countries except Vietnam have continue d to lose their forests. Access to safe 
water in urban areas and to sanitation re mains a problem, especially in rural areas. 
Under the new DCI, the Commission cont ributed to the progress of the Asian 
countries towards the MDGs , aligning its intervention with the efforts of the 
beneficiary country government policies and poverty reduction strategies where 
possible. Particular priority is given to the social sectors: health and education 
represent 18.3% of active contracts,  but 25% of new commitments. The 
Commission's political commitment of supporting social sectors under the 
geographical programmes covered by the DCI thus has a tangible impact in Asia.  
In 2007, the Commission committed funds to  alleviate poverty and hunger (MDG-1) 
in Cambodia, Laos, Mongolia and Vietnam.  Programmes to aid uprooted people 
were adopted for Afghanistan, Banglades h, Burma, Thailand and Nepal, and food 
security programmes for Bangladesh, DP RK and Burma/Myanmar. The Commission 
allocated funds to support primary edu cation (MDG-2) in Burma/Myanmar, Nepal 
and Pakistan.
 
EN 68   EN Through health sector support programme s, the Commission has directly or 
indirectly contributed to MDG 4, 5 and 6 in Afghanistan, Bangladesh, 
Burma/Myanmar, India, Indonesia and th e Philippines. New funding was provided 
for a health sector programme in India and the Global Fund to fight HIV/AIDS, TB 
and Malaria (GFATM) in Myanmar. In ad dition, the 2007 regi onal annual action 
programme includes programmes supporting preparedness to highly pathogenic 
avian influenza and emerging diseases (M DG-6) in Asia. Water sector reform 
programmes were completed in Afghanistan, China, and India or at Asia regional 
level to ensure environmen tal sustainability (MDG-7). 
Through other programs, the Commission s upported good governance and the rule of 
law.  New programmes were committed for Afghanistan, Banglad esh, Indonesia, 
Laos and Vietnam.  Pursuance of the MDGs was also  facilitated through the new 
SWITCH programme which strengthens su stainable consumption and production, 
thus contributing to MDG target 12, goa l 8 ("Develop a Global Partnership for 
Development "). 
2.3.1.4.  Regional cooperation and integration 
Supporting ASEAN and SAARC ar e focal areas in the re gional strategy paper and 
multiannual indicative programme for Asia a dopted this year. Assistance to ASEAN 
will focus on its integration efforts as outlined in the ASEAN economic community 
blueprint and will bui ld on European experience in regional integration issues such 
as statistics, customs and standards. Assistance to SAARC will support the SAARC 
Free Trade Agreement process, the regional sector policies developed by the organisation as well as the region's civil aviation safety standards. 
There was significant progress in ASEAN, with adoption of the ASEAN Charter, 
including charter on human rights and thre e blueprints for integration at the 
commemorative summit in November, fo llowed by the EU-ASEAN summit. The 
Commission adopted two new programme s the total €10.7 million budget value for 
which support statistical capacity devel opment and improvement of migration and 
border management. Implementation of a programme on IPR cooperation continued 
and an energy facility programme was completed. The energy facility has been instrumental in putting renewable ener gy on the agenda in the ASEAN member 
states by financing a large number of demons tration projects and also in bringing 
together energy policy makers from the re gion to define regional energy policies. 
The IPR programme has created a strong ne twork of IP offices in the region, 
strengthened legislation in ASEAN member states and established curricula for IP 
management at universiti es throughout the region. EC  assistance focused in 
particular on capacity development and co mpetency transfer on regional integration 
to the ASEAN Secretariat and respective nati onal institutions of the member states.  
In SAARC, progress in cooperation has been more moderate. However, a new 
programme of economic cooperation of €2.5 million aims to facilitate the 
implementation of the South Asia Free Trade Agreement (SAFTA) which foresees that SAARC member states will harmonize their standards and abolish intra-regional customs tariffs. 
EN 69   EN 2.3.1.5.  Implementation 
In response to rapidly rising opportuni ties and demand for policy and reform-
oriented development cooperation, over re cent years a growing proportion of EC 
development assistance in Asia has been provided through programme-based 
approaches that aim to support countries in their implementation of key reforms, 
especially when related to the MDGs. In th e first year of implementation of the DCI, 
roughly two thirds of EC developmen t funds for Asia (€652.9 million), or €477 
million, were committed in the context of policy and reform-oriented programmes and projects, many of them in partnershi p with other donors – including Member 
States. 
The Commission's contribution to erad icating poverty and hunger encompassed 
measures for food security in Afghanist an, Bangladesh, Burma/Myanmar and DPRK. 
DPRK benefitted from the delivery of ag riculture equipment to cooperative farms 
and the start of three
 new community-based food secur ity projects implemented by 
European NGOs. Financial contributions we re made to continue supporting Afghan 
returnees and refugees in ne ighbouring countries. Funds were also provided to assist 
Burmese refugees in Thailand and Banglad esh as well as displaced people within 
Burma/Myanmar. The Commission also helped to find a long term solution for the Bhutanese refugees in Nepal. 
High-profile higher education symposiums  and fairs in three Asian countries 
promoted cooperation and exchanges between Asian and European higher education institutions (Asia Link). Through th e TEIN programme, about 30 million Asian 
researchers from seven Asian developing coun tries so far (and four teen expected in 
the future) are linked together and with Eur ope for data exchange and joint research. 
23.5% of new commitments were for health  related actions, including additional 
support to the health sector in Burma/My anmar and India. In Burma/Myanmar, the 
Commission contributed to the Global F und to fight HIV/AIDS , TB and Malaria 
(GFATM), which aims to reduce the bur den of communicable diseases on the 
population. In India, a €110 million contribu tion to a health sector programme 
improves the quality and accessibility of heal th services with particular focus on 
women and child health status. At the re gional level, the Commission delivered 
timely funding to support the multi-donor trust fund both for the prevention of Avian Influenza and for the fight against infectious diseases. The completion of the RHIYA programme demonstrated good promotion of reproductive health among youth in 
Asia. 
Strengthening the rule of law and good governance is a major focal area for EC 
assistance throughout the region. In Sr i Lanka the Commission supported the 
International Independent Group of Eminen t Persons and respect for human rights. 
Support to public finance management wa s provided in Bangladesh, Cambodia, Laos 
and Pakistan. The Commission contributed €15 million to establish a comprehensive 
and effective voters’ registration system in Bangladesh to help ensure that the 
elections scheduled for end of  2008 will be fair and restor e legitimate government. In 
Afghanistan, the Commission contributed to the reconstructi on and process of 
establishing rule of law. Further funding was provided for the Law and Order Trust 
Fund financing police. Almost €20 million went to provide support for the Afghan 
EN 70   EN customs academy and construction of two bor der crossing points, thus contributing 
also to increasing revenues to the Afghan budget.  
The Commission committed funds to suppor t sustainable economic and social 
development through trade-related assist ance in SAARC, Laos , Philippines and 
Vietnam. At the regional level, the Asia  Invest programme has further promoted 
cooperation in the field of SME developmen t. Developing Asian countries have also 
benefitted from the completion of Asia Trust Fund for targeted trade-related technical assistance. In the area of rural developmen t, a new sustainable livelihoods 
programme for Mongolia was supported. The Commission committed itself to 
support capacity development in civil aviation in India. 
2.3.1.6.  Monitoring 
218 active projects, with a total budget of  €982 million, were monitored in Asia, 
resulting in 213 monitoring re ports. The average results on all five criteria were 
above the middle line of 2.5, thus acknowledge d as “being on track”. Projects in the 
areas social infrastructure and servi ces, multi-sector/crosscutting and production 
sectors account for 80% of all monito red projects and 77% of EC funding. 
The effectiveness, relevance and design qual ity as well as the sustainability of 
programmes implemented in the Asia re gion remained stable between 2005 and 
2007
34. There is clearly scope for improvement, particularly as regards efficiency and 
impact. The identified weaknesses are addressed during implementation while lessons learned are taken into account in pr eparation of new programmes, especially 
as regards defining both realistic objectives and results, and relevant indicators, so as to ensure the ownership of the beneficiarie s and the sustainability of the programmes. 
Table 14: Asia Monitoring Results per ODA sector 
2,02,32,52,83,0
Social Infrastructure and
ServicesEconomic Infrastructure and
ServicesProduction sectors Multisector - Crosscutting Humanitarian Aid/Emergency
Assistance
Relevance Efficiency Effectiveness Impact Sust ain abilit y
 
Only samples of at least 10 monitoring repo rts are considered statistically relevant, 
therefore no information is provided for t hose sectors having less than the minimum 
number of monitoring reports. The grad ing scale has a maximum of 4 points. 
                                                 
34 This conclusion is based on a sample of 18 re-monitored projects. 
EN 71   EN 2.3.1.7.  Perspectives 
The Commission will further focus its ex ternal aid under DCI on MDGs and support 
to regional integration. Beneficiary ownership is crucial for success and 
sustainability of aid programmes. The Comm ission will engage with other donors in 
policy dialogue with governments, so as to ensure that the necessary policy and 
regulatory frameworks are in place to facilitate donor assistance success. The 
Commission will also ensure that future programmes have more substantial capacity and institutional deve lopment components. 
Delivery on the aid effectiveness commitmen ts and implementation of the EU Code 
of Conduct will remain pr iorities. The Commission will make use of new 
opportunities under the DCI Regulation, and s eek the support and engagement of 
Member States, and will work closely with other donors. Improved donor coordination will allow the Commission to di rect its interventions further toward 
better results and impact.
 The EC will aim to define be tter indicators for measuring 
progress and initiating disbursements. 
Post-tsunami reconstruction 
Three years after the tsunami, the Europ ean Union, acting in cooperation with the 
international community, is recognised as an  effective partner in the implementation 
of the recovery strategies  in Indonesia, Sri Lanka and Maldives. This includes 
recreation of local communities and liveli hood, rehabilitation of the environment 
including waste management, rebuilding in frastructures and transports, recreation 
and enhancement of capacity building and governance. 
 
General budget support in Vietnam 
Vietnam was one of the first countries in  Asia to receive General Budget Support 
(GBS). GBS in Vietnam is directly linked to the country's socio-economic 
development plan. Donors provide funds  through non-earmarked contributions. 
Coordination with EU Member States is  very strong. The Commission and Member 
States used policy dialogue contributions to ensure GBS paid close attention to 
poverty reduction. This firs t GBS cycle achieved th e following results: The 
proportion of the state budget spent on edu cation and health increased from 15% in 
2000 to 21% in 2005. This additional investment contributed to noticeable improvements in basic education and healt h. All MDG targets in these areas are now 
on track. Primary school enrolments have increased by 6 percentage points. Under-
five mortality has decreased from 48 d eaths per 1000 births to 24. Access to clean 
water and sanitation has risen from 76% to 79% and 25% to 32% respectively.  
 
Sector budget support for health in the Philippines 
The Commission is the main donor to the gove rnmental health sector policy support 
programme, which targets primary health care to poor people with a particular emphasis on maternal health care. 16 provi nces receive direct budget support and 21 
others will soon be covere d, including provinces of Mi ndanao affected by conflict. 
EN 72   EN The first fixed tranche was paid in th e last quarter of 2007. Reliable data for 
monitoring and evaluation of local government performance is being developed. This 
will provide the main input for the prepara tion of the variable tranche payment. The 
Commission actively participates in the re view processes, both at central and at 
provincial level. Budget suppor t creates a spirit of part nership around policy issues, 
which is vital to pursuing the Commi ssion's objective of ensuring equitable 
development that eliminates poverty.  
2.3.2.  Central Asia 
2.3.2.1.  Introduction 
The EU's recent enlargements, the extension of the ENP to the South Caucasus and 
development of its relations with Russia have brought Europe and Central Asia much 
closer together, both in terms of political  cooperation and economic partnership. The 
strategic interest in supporting political and economic stability and development in 
Central Asia, particularly given the re gion’s proximity to Afghanistan and the 
presence of substantial energy resources in certain Central Asian countries also make 
the region an important partner. It had ther efore become vital to strengthen the EU's 
relationship with the five Central Asia n Republics of Kazakhstan, the Kyrgyz 
Republic, Tajikistan, Turkmenistan, and Uz bekistan. The common goal of achieving 
stability and prosperity by means of peacef ul inter-action makes Europe and Central 
Asia partners for increased cooperation. 
On 21-22 June the European Council adopted a new Central Asia strategy, The EU 
and Central Asia: Strategy for a New Partnership35, which marks a new level of 
political dialogue and cooperation with the countries of the regi on and for the first 
time establishes guiding principles for great er EU engagement in Central Asia. It 
focuses on intensified cooperation in key area s such as education;  human rights and 
the rule of law; economic development, tr ade and investment; energy and transport; 
the environment; and common threats a nd challenges from terrorism and drug 
trafficking. Meanwhile, the EU is supporti ng energy sector reform as a means to 
underpin long term economic development in the region. 
The Commission’s 2007-2013 assist ance strategy for Central Asia36, adopted in 
April, foresees a doubling of budget allocations to €750 million under the DCI. Eighty percent of EC assistance is direct ed to bilateral cooperation taking into 
account the policy agenda of th e individual Central Asia countries an d their distinct 
political and social realities, with a fo cus on attainment of the MDGs. Twenty 
percent is going to regional challenges, such  as preservation of the environment and 
water management, energy and transport,  border management, and combating drug 
trafficking. The alignment of priorities fo r Central Asia in these sectors with the 
regional ENPI strategy enables also the Centra l Asian partners to participate in ENPI 
regional projects. 
                                                
 
35 http://www.consilium.europa.eu/uedocs/cms _data/librairie/PDF/EU_CtrlAsia_EN-RU.pdf   
36 http://ec.europa.eu/external_rel ations/ceeca/c_asia/07_13_en.pdf  
EN 73   EN 2.3.2.2.  Aid effectiveness and donor coordination 
The Commission made further efforts to  promote donor coordination and aid 
effectiveness, and implementation of the EU  code of conduct. During the year, the 
Commission joined a group of donors establis hing a joint interven tion strategy in 
Kyrgyzstan and in Tajikistan in suppor t for implementation of national poverty 
reduction strategies. Donor coordination in these two countries is also very active 
around public finance management issues – an area in whic h the Commission 
supports several projects. 
The Commission initiated consultations with the Member States regarding 
implementation of the EU strategy for Centra l Asia adopted in June. Fifteen percent 
of the aid committed in 2007 in Central As ia will be delivered through country 
systems, thereby increasing ownership. 
2.3.2.3.  Working towards the MDGs 
According to the MDG 2007 Progress Report for Asia and the Pacific, several 
Central Asian countries, such as Kazakhs tan, Kyrgyzstan and Uzbekistan, have 
already achieved the MDG targets relate d to reduction of extreme poverty, gender 
disparities or environmental targets. Despite their achievements, Tajikistan and Kyrgyzstan remain among the poorest countries in Asia. Improving primary education is needed in most countries  except Kazakhstan and Tajikistan. Further 
progress is needed, notably in the field of health water and sanitation in rural areas. 
Progress as regards HIV/AIDS is reco rded in Kyrgyzstan, Kazakhstan and 
Tajikistan, but surprisingly this is not th e case for tuberculosis, for which the 
prevalence has increased in several countries. 
External aid under the DCI contributes to  the fight against poverty and toward 
achieving the MDGs. This includes sizeab le food security programmes for  
Kyrgyzstan and Tajikistan, with a total budget of €18 million, and a sector policy 
support programme for social  protection for Tajikistan. Projects include community-
based social development in rural Kyrgyz stan and one improving living standards in 
Tajikistan. 
The Commission also contributed to MDGs  through its support and new funding to 
health care reform in Kazakhstan, suppor t to education system reform in 
Turkmenistan and vocational education development in Kazakhstan. The Tempus and Erasmus Mundus programmes for Central Asia are of particular importance for 
the development of Kyrgyzstan, Tajikistan, and other countries that suffer from a 
shortage of university graduates. 
2.3.2.4.  Regional cooperation and integration 
EU cooperation with Central Asia developed considerably  this year with the EU-
Central Asia ministerial meeting in Berlin in March and adoption of the EU Strategy for Central Asia as well as a Central Asia strategy paper and multiannual indicative programme. The strategy paper identifies priority  areas for region al cooperation, 
namely education, energy, transport, e nvironment and border management. As a 
response to the new EU strategy, the 2007 a nnual action programmes gave increased 
emphasis to education (Tempus and th e Erasmus Mundus External Cooperation 
EN 74   EN Window, which aims to boost human resources development through student 
mobility) and to private sector development (Central Asia INVEST). 
2.3.2.5.  Implementation 
All new credits available for Central Asia (€60.3 million) were committed and €40.1 
million had been already paid by the end of the year. These commitments focus on health, education, judiciary reform, social  protection, and priv ate sector and rural 
development. Most assistance was provide d in the form of projects, except in 
Tajikistan where social protection received sector budget support. 
The EU supported the implementation of  the Partnership and Cooperation 
Agreements with Central Asian countri es. These agreements  and the related 
development assistance aim to  facilitate transition, as we ll as encouraging economic 
growth and trade. 
The regional Tempus programme continues to support education reform, curriculum 
development and university modernisati on through partnerships  between higher 
education institutions. Vocational education a nd training is also supported in three of 
the five countries so as to help th e population access new opportunities in the 
growing and evolving priv ate sector. Strengthening gove rnance, including public 
finance management and economic transiti on reforms, is a major concern. Progress 
in the realisation of medium term expend iture frameworks has been achieved with 
the Commission's help in Kyrgyzstan and Tajikistan. Kazakhstan benefited from 
support to local governance. The Commission has continued to support civil society 
through the Institution Building and Partnership Programme. To ensure 
environmental sustainability, the Commi ssion has contributed to the successful 
protection of the Tadjik-Kyrgyz trans- boundary Pamir-Ali region conservancy area. 
It has also supported the Central Asia Regional Environment Center. 
2.3.2.6.  Monitoring 
Table 15: Central Asia ROM Moni toring Results per ODA sector
 
2,02,32,52,83,0
Social Infrastructure and Services Economic Infrastructure and Services M ultisector - Cro sscutting
Relevance Efficiency Effectiveness Impact Sustainability
 
Only samples of minimum 10 monitoring reports are considered st atistically relevant, therefore no information is provided for 
those sectors having less than the minimum number of monitoring reports. Maximum grading is 4 points.  
A total of 99 active projects for a tota l budget of €93 million were monitored, 
resulting in 78 monitoring reports. Monito red projects covere d three areas that 
EN 75   EN represent 92.8% of all projects implement ed, namely social infrastructures and 
services (53), economic infrastructure and services (24) and multi-sector/cross 
cutting issues (15). The relevance (2.70) and efficiency (2.73) ratings  of social 
infrastructure and services projects were  the highest. However there is scope for 
improvement, especially concerning the su stainability of bilateral programmes and 
the effectiveness of regional projects. This is  the largest sector w ith 53 projects and a 
total budget of €50.7 million. 
The relevance, efficiency and effectivene ss of national projects obtain higher marks 
than the regional ones, also as regards impact and sustainability. Most regional 
projects in Central Asia are managed out side the region (non-devolved) – often 
resulting in lower scores for relevance ( 2.5) and project design (2.7). The efficiency 
of non-devolved regional projects is less sati sfactory (2.5) than that of national and 
devolved projects (2.8). However, these w eaknesses are addressed in implementation 
while lessons learned are taken into acc ount when designing new programmes and 
further devolution of aid management to Delegation. 
2.3.2.7.  Perspectives 
The Commission will cooperate closely with EU member states in implementing the 
EU Strategy for Central Asia. Support for achieving the MDGs will remain at the centre of assistance to  the region, but the Commission will take into account the 
increasing differentiation of the countries c oncerned. In response to the new strategy 
and in line with strategic guidelines under the DCI Central Asia indicative 
programme 2007-2010, new regional and bila teral cooperation programmes will be 
implemented. High priority will  be given to programmes in  the field of education and 
rule of law/judiciary reforms, which are crucial for development and modernisation. 
Bilateral assistance will be further focused and consolidated, so as to provide more 
comprehensive support to partner countries ' medium-term development strategies. 
This will be linked with str onger engagement of the Commission, together with other 
donors, in policy dialogues. Commission assistance will address capacity and 
institutional development, including streng thening of public finance management in 
Kyrgyzstan and Tajikistan, as a way of helping both countries in meeting all 
conditions for sector budget support and provi sion of assistance through their country 
systems. The Commission will continue s upport for addressing problems of concern 
for the entire region; establishing, in particular, effective border management and cooperation on water management. 
Integrated community-based development in Kyrgyzstan 
Poverty levels remain extremely high in  Kyrgyzstan, aggravated by significant 
regional differences in economic developm ent, particularly between the richest 
region of Bishkek and the poorest sout hern oblasts. This project supporting 
integrated community-based development, therefore focuses on the poorest southern-
Kyrgyz oblasts of Jalalabat, Osh and Batken. By combining economic growth 
(through agricultural development, income  generation and soci al rehabilitation), 
social community empowerment and local administration strengthening, it addresses in an integrated way the complex nature of rural poverty. With the involvement of 
the local population in the project, and services steadily growing throughout the 
implementation, changes in living conditions were noticeable in all targeted areas. 
EN 76   EN  
Legal and trade-related assistance: post-soviet modernisation 
After the dissolution of the USSR and regaining its inde pendence in 1991, 
Kazakhstan needed to draft and implement its  own national legislation, to improve its 
investment climate and to raise its trade volumes. A Commission-funded project 
provided expertise in a number of areas to support these efforts. As a result, several 
pieces of legislation prepared through the project have been a dopted and a significant 
contribution was made to the country's preparation for WTO accession. The project 
has benefited the public administrati on as well as the business sector. 
 
2.3.3.  Middle-East 
2.3.3.1.  Introduction 
Three countries in the Middle East are c overed by the DCI – Iraq, Iran and Yemen. 
Substantial assistance was devoted once again over the year to reconstruction in Iraq, 
as well as to assisting neighbouring states (J ordan, Syria) to manage a major influx of 
Iraqi refugees, as the country remained extr emely insecure. This insecurity, as well 
as the weakness of Iraq’s institutions , created an extremely challenging aid 
environment. While almost half of Commission funding for Iraq was channelled 
through the UN/World Bank multi-donor trust f und IRFFI, established at the end of 
2003, bilateral Commission financing was also  given to a major new rule of law 
assistance initiative, as well as to su pport displaced persons and refugees. 
In Yemen, the Government remained committed to its reform agenda – establishing a 
Supreme National Authority for Comba ting Corruption, adopting a financial 
disclosure law for public procurement, a nd reforming the civil service – and the 
Commission maintained its support for th at process by increasing the Yemen 
allocation under the DCI budget line by an additional €4 million. The overall 
situation in Yemen remained difficult, with continued fighting in the northern 
governorates and signs of social unrest am id rising food and fuel  prices. Commission 
assistance focused on good governance (electoral and democratic support as a follow-up to the 2006 EU elections obser vation mission) and on local community 
development through the Social Fund for Development. 
Finally, the Commission conti nued to support the EU3 nego tiations with Iran in the 
hope that an unblocking of the nuclear dossier would open the way for enhanced 
cooperation. 
2.3.3.2.  Implementation 
The Commission has supported Iraq reconstruction since 20 03. EC aid concentrates 
on fighting poverty through alleviating the difficulties encountered by the Iraqi people. The programme covers all areas of  activity, from basic services to human 
development and capacity building to support to  the political process, with a special 
emphasis on elections. So far most EC aid has been channelled through the 
International Reconstruction Fund Facility for Iraq (IRFFI) as part  of the multilateral 
effort. This approach has facilitated the deployment of EC support in difficult and 
EN 77   EN challenging conditions and very difficult secu rity concerns where direct Commission 
actions would not be feasible. Efforts have also been made to launch bilateral actions 
with Iraq such as support to  civil society orga nisations in the fi eld of human rights 
and technical assistance to the key Iraqi institutions.  
This year, the Commission provided support fo r the rule of law and justice. This 
builds upon the experience gained already in this sector and complement the 
Integrated Rule of Law Mission for Iraq (EUJUSTLEX) supported by the Council. Funds were also allocated to IRRFI to s upport the electoral proc ess with the United 
Nations Development Group Iraq Trust F und and to public finance management 
reform with the World Bank Iraq Trust Fund. Finally, the Commission granted 
special humanitarian and stru ctural support for the provis ion of basic health and 
education services for Iraqi re fugees in Syria and Jordan. 
As Yemen is one of the poorest countries in the world, EC cooperation with this 
country concentrates on supporting the provi sion of basic economic and social needs 
of the Yemeni population. In 2007, the Commission supported Yemen through a 
contribution to the Social F und for Development. Created te n years ago, this fund is 
recognised as an effective agent for the promotion of social and economic development. Promoting good governance and democracy is another key priority for cooperation and the "Support to the Elector al process and Parliament" programme 
will provide critical support to the democratic process and institutions. 
Despite a difficult  political context for the cooperati on with Iran, the four existing 
projects promoting good governance and human rights (essentially through UN 
organisations) proceeded sati sfactorily. In addition, a proj ect in the field of drug 
rehabilitation started early in the year. 
Iraq: Learning, informing, healing, reintegrating 
Iraq has a long history of ar bitrary arrests and the use of torture in prisons. NGOs 
working in this field have noted the widesp read problem of ill-treatment of prisoners, 
torture and the prevalence of arbitrary deten tion. Allegations refer to restriction on 
access to economic and social rights such as education and health care, harassment 
and mistreatment of wome n. The Commission has been supporting the promotion of 
a human rights culture in Iraq by supporting civil society human rights organisations. 
A project entitled Promotion of Human Rights in Iraq through Iraq Civil Society 
Organisations  is implemented by the United Nations Development Programme 
(UNDP) and the United Nations Office for Project Services (UNOPS), in 
collaboration with Un Pont Per and in pa rtnership with the Al Fuad Rehabilitation 
Centre for Torture Victims. This project ai ms to assist torture victims through social 
and medical rehabilitation and psychol ogical and physical support, providing 
capacity building on human ri ghts and detention in Iraq an d organising specialized 
capacity building trainings for Ira qi civil society organizations. 
The project has already produced some very positive results, including rehabilitation 
services for 453 victims (including 148 tort ure survivors), speci alised training for 
surgeons and surgery for 130 ear amputees, the establishmen t of the Justice Network 
                                                 
37 www.jnpiraq.net  
EN 78   EN for Prisoners comprising 30 NGOs and th e creation of a specific website37. 
 
2.3.4.  Latin America 
2.3.4.1.  Introduction 
Latin America, together with the Cari bbean, saw the fifth consecutive year of 
economic growth and the fourth year of  growth over 4%. Unemployment fell to 
around 8%, the lowest rate in 10 years38. This favourable economic situation had a 
positive impact on the activities the Commission implemented during the year. The overall objective of these was to prom ote political, economic and commercial 
relations and cooperation in order to conso lidate the EU's strate gic association with 
Latin America to support the development of a stable, democratic and prosperous 
region. 
For the period 2007-2013, €2690 million have been allocated for development 
cooperation, which is crucial for establishi ng closer links between the EU and Latin 
America. The DCI states that Community  assistance should s upport, generally, the 
implementation of policies directed towa rd poverty eradication and toward the 
achievement of the MDGs. With regard to Latin America, the DCI states that the main objectives are to support social cohesion and regional integration, the 
reinforcement of good governance and public institutions, a common EU-Latin America higher education area, and to  promote sustainable development. 
Within this framework, several strategic priorities were established. These include 
maintaining the high level of political di alogue, both at regional and sub-regional 
levels (Mercosur, Andean Community, a nd Central America). Important meetings 
held during the year included the Rio Group meeting in Santo Domingo as well as 
the sub-regional Ministerial summits that  were organised on the same occasion. 
Under the DCI, 21 strategy papers for La tin America for the period 2007-2013 were 
adopted – taking into account that development policy should have a particular focus 
on poverty alleviation and social cohesion issues
39. Health and, more significantly, 
education, represent about 30% of the sect oral focus of future cooperation. This 
honours the Commission's political commitment in terms of financial allocations to 
social sectors under the geographical pr ogrammes covered by the DCI. Several 
annual action programmes were prepared. For 2008, particular emphasis will be given to sector-wide approaches and polic y dialogue with Latin -American countries. 
Pursuing its integrated trade policy in  Latin America and focusing on creating 
economic and social opport unities through trade and aid, the Commission continued 
negotiations for the conclusion of the Merc osur agreement and launched negotiations 
in view of comprehensive Association Ag reements (political dialogue, cooperation 
and preferential trade) with  the Andean Community and with Central America. 
Several rounds of negotiations  took place during the year. 
                                                
 
38 On the basis of the ECLAC (UN Economic Commission for Latin America and the Caribbean) 
preliminary analysis for the year 2007. 
39 For 17 countries, 3 sub-regions (Central America; A ndean Community and Mercosur) and 1 for the Latin-
American region as a whole  
EN 79   EN 2.3.4.2.  Aid effectiveness and donor coordination 
Increasing co-ordination with other donors con tinues to be a priority, with particular 
attention to co-ordination with Member States. The Commission promotes, organises 
and is involved in regular meetings with Member Stat e representatives and other 
donors to exchange lessons and to ensure coherence between its policies and other 
cooperation activitie s and programmes . Sector approaches have encouraged a more 
harmonised and effective pooli ng of development potential. 
The Commission put into action many activitie s to adapt the EU Code of Conduct on 
division of labour in the field with be neficiaries and donors. In Nicaragua the 
Commission and Member States  donors started to implement elements of the Code. 
In Peru, the Commission ensured that th e government, through the Peruvian Agency 
for International Cooperation (ACPI), took fu ll part in the entire  aid effectiveness 
programme and established it s leadership role for donor coordination a nd the Paris 
agenda. 
2.3.4.3.  Working towards the MDGs 
According to the Millennium Development Goals Report 200740 the region as a 
whole has already met at least five of th e MDG targets. In ot her areas progress has 
been rapid enough to put Latin America on track to meet the 2015 deadline. 
Nevertheless, tackling income inequality, one of the highest among all developing 
areas, and the very high unemployment ra te among young people, remain challenges. 
Another very important region-wide issue is that the proportion of land covered by 
forests has declined from 50 per cent in 1990 to 46 per cent in 2005. 
This year, the Commission financed a €7.3 million programme  strengthening 
institutional capacities of se lected municipalities to re duce poverty in the Northern 
and North-Eastern regions of Brazil (MDG 1). Its objective is to improve the 
technical and institutional capacity of small and medium-size municipal 
administrations to plan, finance, mana ge and evaluate programmes and projects 
directed toward urban and/or peri-urban development, poverty reduction and social 
inclusion. The programme will also disse minate and demonstrate methodologies, 
experiences and best practices in inter- municipal association and civil society 
participation that could be adapted to the Brazilian reality and further incorporated 
into the national policies. 
The implementation of a €5.8 million project started to help forest management, 
support sustainable production and strength en civil society in the Brazilian Amazon 
(MDG 7). The project should contribute to su stainable development of the area of 
influence of a major road in the state of  Pará. Activities will include installing a 
forest monitoring system and a national re gister of public forests to support the 
Brazilian Forest Service (SFB) and the Na tional Centre for Forest Management 
(CENAFLOR). Local sustainable production will be supported th rough training and 
networking for producers, farmers and land t echnicians. The market for sustainable 
products will be increased. Civil society will be strengthened by promoting approaches based on dialogue and negotiation.  
                                                
 
40 http://www.un.org/millenniumgoals/  
EN 80   EN The Commission committed €12 million to help young people find a decent job in 
Argentina (MDG 8) by broadening access to  high-quality education and vocational 
training opportunities and promoting the completion of secondary education and 
increased labour qualifications of young people from 16 to 29 years. The policy 
management of the system for permanent education of young people and adults (EPJA) will be strengthened at provinci al and national levels . Secondary education 
for young people and adults in 12 provinces will be improved, as will the relevance 
and quality of the training offered to youths and young adults. Implementation should start in 2008. 
2.3.4.4.  Regional cooperation and integration 
The Latin American countries have embarked on regional integration processes that 
have already had a considerable impact. Within the developing world, Latin America as a region is in lead position on the in tegration path. Regiona l integration is a 
priority area for Commission support. 
Four initiatives were appr oved to strengthen integration within Mercosur (EC 
contribution €12 million) . The first aims to build institutional capacity and 
strengthening the role of the Mercosur Secr etariat at a moment when the Secretariat 
assumes new responsibilities su ch as the implementation of  the Fund for Structural 
Convergence (FOCEM).  The second aims to fortif y the judicial and legal 
institutional structure
41. The third concerns  Mercosur’s Strategic Plan for the 
Education Sector and contributes to the co nsolidation and expans ion of the Student 
Mobility Programme (similar to Erasmus programme) for Mercosur undergraduates. 
The last initiative aims to foster joint po licies and strategies in the field of the 
information society at the level of Mercosur to reduce the digital di vide in the region 
and follows the adoption of the “Work Plan of Buenos Aires for Development of the 
Information Society” in May 2006.  
The Commission continued to support the General Secretariat of the Andean 
Community and launched a project (EC contribution €6.5 million) to support 
economic and social cohesion within the region. The objective is to improve the 
capacity to formulate and implement region al economic and soci al cohesion policies 
by creating an Andean Centre of Excelle nce for Economic and Social Cohesion and 
financing concrete actions in transnationa l and cross-border areas that demonstrate 
the positive impact of regional integration to Andean citizens and the added value of 
EC cooperation. This follows the adopti on of the Andean “Integrated Social 
Development Plan” (PIDS) in September 2004. 
2.3.4.5.  Implementation 
The Commission approved 27 bilateral coop eration actions. Thes e seek to foster 
social cohesion and education, strengthen good governance and institutional capacities, and encourage regi onal integration. In Centra l America the Commission 
continued to move towards budget support as a privileged aid delivery method. 
                                                
 
41 The official establishment of the Mercosur Permanen t Court of Review in Asunción on 13 August 2004 
was the first landmark towards this direction. 
EN 81   EN Cooperation with Nicaragua evolved reasona bly well in the first year of the new 
government of Mr. Ortega. Following a lengt hy inception phase, needed to establish 
common ground, the Commission and the Nicaraguan government made substantial progress in several areas which resulted, in  particular, in the commitment of around 
€20 million for new geographic actions at the end of the year to support education, 
business and investment climate, and govern ance facility. In Nicaragua and Ecuador 
the Commission decided to deliver a total €26.9 million through two budget support 
actions for the education sector. In Bo livia, the Commission launched programmes 
worth a total of €36 million to support th e government's efforts in reducing the 
cultivation of coca, promoting sustaina ble socio-economic development in the 
producing regions and facilita ting access of the population to basic social services. 
In Peru, a programme on local capacity bu ilding for the families of small producers 
in the Surrounding Zone in the Biosphere Reserve of Manu (ZAMANU), in the regions of Cusco and Madre de Dios, made great progress in achi eving its objectives. 
The programme seeks to improve small farm ers' opportunities for commercialisation, 
reduce high levels of poverty and malnutr ition, and address the weak institutional 
links between the civil societ y organisations and local a nd regional authorities. So 
far, the situation of 420 out of 560 fam ilies has improved as concerns production and 
nutrition. Ownership among the families, communities and bio-farms is high. A regional programme for Peru and Boliv ia supporting economic initiatives and 
organisations of rural producers (OECA
42), has allowed beneficiaries to comply with 
organic production standards, to guarant ee supply and to increase the quantity and 
quality of their production. Co ffee cooperatives have been able to develop initial 
payment (in Peru) or pre-financing (in Bolivia) services that increase their 
independence from other financing s ources (banks, buyers , federations). 
In Guatemala's Huehuetenango department , small producers account for 10% of the 
coffee production (the remaining 90% - 600,000 bags – that the department exports 
are produced by multinationals). The Commission has supported these small 
producers in obtaining environmental, social  and organic quality certification. The 
EC programme helps producer associations  to manage, process and commercialize 
directly (avoiding local intermediaries) their production for a better price. This is an 
opportunity to increase th e revenues of the families concerned. Furthermore, 
production diversification improves agri cultural practices and protects the 
environment. 
The regional cooperation programmes43 aim to develop closer  and sustainable links 
between civil society in Latin America and Europe. This was a ve ry successful year 
for the regional programmes, both in terms of results and impact. 
EUROsociAL  (EC contribution €31.3 million, 2005-2009)44. This Programme aims 
to contribute to increasing social cohe sion in Latin America by developing national 
authorities’ capacities to formul ate and manage public polici es in that area. Over a 
two year period, more than 600 institutions and nearly 4000 public servants – more 
than 80% from Latin America countries – have  participated in the programme. It has 
                                                 
42 Organizaciones Económicas Campesinas 
43 http://ec.europa.eu/europeaid/where/latin-a merica/regional-cooperation/index_en.htm   
44 http://ec.europa.eu/europeaid/where/latin-ameri ca/regional-cooperation/eurosocial/index_en.htm   
EN 82   EN promoted the creation of sectoral networks of institutions and administrations active 
in public policy-making and advocacy. 
Alßan (Programme for Higher Education and Training Scholarships in the European 
Union for Latin American citizen s: EC contribution €88.5 million, 2002-2010)45. By 
the end of the year, the programme had aw arded 3,319 grants to na tionals of the 18 
Latin American participating countries.  In 2007, a total of 806 students were 
awarded scholarships for an average of tw o years of study in a European institution. 
A new programme is being prepared within  the framework of the new phase of the 
Erasmus Mundus programme (Erasmus Mundus 2009-2013). The Erasmus Mundus External Cooperation Window call for proposals published in 2007 (for the academic year 2008-2009) promotes academic cooperation and mobility of students, researchers and academic staff between the EU and Brazil, Mexico and Chile. 
ALFA (Latin America Academic Trai ning Programme: EC contribution €55.5 
million, 2000-2006)
46. Out of 225 approved projects, 54 were still active. During the 
second half of the year, prep arations began for phase thre e of the programme with an 
EC allocation of €45 million. Actions will in clude 'Joint Partnerships' of European 
and Latin American institutions and 'Structural Measures' that aim to reform education systems in Latin America. 
AL-INVEST
 (EU-Latin America Trade and Invest ment Promotion Programme: EC 
contribution €42.9 million, 2003-2007)47. During the year, 46 pr ojects were approved 
for the benefit of Latin American as well as European SMEs. Activities included the 
organisation of business meetings and t echnical assistance and capacity-building 
projects for private-sector organisati ons. By the end of 2007, over 42,000 SMEs had 
received assistance under th e programme which has gene rated, since its creation 13 
years ago, more than €602 million worth of EU-LA business. 
EURO-SOLAR (EC contribution €24 million, 2006-2010)48. Euro-Solar aims to 
reduce poverty, allowing remote rural co mmunities without electricity access to 
benefit from renewable electric energy. The programme’s total budget is €30 million, 
of which €6 million is provided by the ei ght beneficiary countries (Guatemala, El 
Salvador, Honduras, Nicaragua, Ecua dor, Peru, Bolivia and Paraguay). 
URB-AL (EC contribution €64 million, 2007)49. The programme develops networks 
between local authorities on issues of local  and regional interest to promote social 
cohesion. In phases 1 and 2 a total of 171 pr ojects, in the framework of 13 networks 
have been supported. On-going activities ar e expected to fini sh by the end of 2008. 
The current phase 2 programme will be foll owed by a third phase for which an EC 
contribution of €50 million was allocated. 
OBREAL (Observatory of EU-LA Rela tions: EC contribution €1.35 million, 2005- 
2007)50. The Observatory is a network set up by 23 academic institutions and 
                                                 
45 http://ec.europa.eu/europeaid/where/latin-america/regional-cooperation/alban/index_en.htm   
46 http://ec.europa.eu/europeaid/where/latin-ame rica/regional-cooperation/alfa/index_en.htm   
47 http://ec.europa.eu/europeaid/where/latin-ameri ca/regional-cooperation/al-invest/index_en.htm   
48 http://ec.europa.eu/europeaid/where/latin-america/regional-cooperation/euro-solar/index_en.htm   
49 http://ec.europa.eu/europeaid/where/latin-america/regional-cooperation/urbal/index_en.htm   
50 http://www.obreal.unibo.it/   
EN 83   EN research centres from Europe and Latin Am erica. It aims to identify partnership 
possibilities between the two re gions in several key policy areas: trade and financial 
relations, regional integration, democracy, human  rights and the rule  of law, social 
and development cooperation, governance and multi-regionalism, civil society and 
institution-capacity building. 
2.3.4.6.  Monitoring 
17 countries were visited and 224 projects monitored, of which 184 are active and 38 
are completed (and were the subject of ex -post monitoring). Tw o were sector policy 
support programmes. A large number of thes e projects (nearly 60%) were concentred 
in five countries (Colombia, Per u, Brazil, Nicaragua and Guatemala). 
99% of projects with an EC contributi on above €1 million were monitored against 
30% of projects with an EC contributi on under €1 million. The average financial 
amount is €5 million, although this figure va ries significantly (f rom €0.3 million to 
€57 million). In addition to monitoring repo rts and notes for the 184 active projects, 
with a total budget of €895 million, seven coun try reports (Brazil, Guatemala, Peru, 
Bolivia, Nicaragua, Colombia and Chile) and a "Compendium of lessons learnt" 
were produced. 
The overall average note of 2.81 reflects very  good performance (based on a target of 
2.5 which means that projects are on track and where 4 is maximum note) compared with results in 2005 and 2006. Projects show very good re levance (2.86), 
effectiveness (2.81) impact (2.85) and sust ainability (2.91) and good efficiency 
(2.63). The scores for the five criteri a were very good (a ) 7%, good (b) 63%, 
problems (c) 29% and serious deficiencies (d) 1%. There are nine projects with 
serious deficiencies (against 32 projects in 2006) which represents only 0.5% of the 
total. 
The best results (2.88) were re ached in social infrastructu re and services (education, 
health, water supply, etc.), which represents nearly half of the pr ojects and half of the 
budget monitored. The second best performer is multi-sector/crosscutting (environment-related, urban and rural developm ent projects), which represents nearly 
a quarter of the projects and 20% of the budget monitore d, with an av erage of 2.83. 
The production sector came third with an average of 2.73 while other sectors were 
based on a sample too small to be representative. The criteria with the best scores in all sectors are: relevance, impact prospects and potential sustainabi lity. This year by 
region, the Andean Community shows the be st results with a score of 2.83, and by 
country the best results were achieved in Uruguay with 2.96. 
Table 16 Latin America Monito ring Results per ODA Sector 
EN 84   EN 2,02,32, 52,83,0
Social Infrastructure and Services Production sectors M ultisector - Crosscutting Humanitarian Aid/Emergency
Assistance
Relevance Efficiency Effectiveness Impact Sustainability
 
2.3.4.7.  Perspectives 
EC cooperation with Latin America over the period 2007-2013 will contribute to the 
achievement of the MDGs, making effectiv e use of the DCI in promoting social 
cohesion, an essential condition of poverty reducti on, and supporting regional 
integration. Cooperation will also focus on reinforcing good governance and public 
institutions, supporting a common EU-La tin America higher e ducation area and 
promoting sustainable development. 
The Commission will seek deeper coor dination with EU Member States. 
Coordination with other multilateral donors will  also be reinforced. On aid delivery 
methods, the Commission will strive to ma ke greater use of budget support, when 
and where the appropriate conditions exist, in order to strengthen ownership and to 
support beneficiary countries' national policies, accountability and procedures. 
In 2008 the political dialogue between the two regions will experience one of its 
highest moments with the fifth Europ ean Union-Latin America and Caribbean 
Summit of Heads of State and Government to  be held on 16-17 May in Lima (Peru). 
The two key themes for the Summit will be (i ) poverty, inequality, inclusion and (ii) 
sustainable development (environmen t, climate change and energy). 
Disaster Prevention in the Andean Community 
Since March 2005, the EU is financing th e PREDECAN project (EC contribution 
€9.45 million) that supports processes direct ed toward disaster reduction in the 
member countries of the Andean Communit y. The project focuses on five issues, 
namely to help national, regional and local  governments to include natural disaster 
risk prevention in their policies and organisa tions at State level to reduce risks, share 
information and knowledge about risks between the Andean countries, improve planning and development, provide educat ion and training and implement pilot 
projects. The project has already had a po sitive impact on risk awareness among 
technical and government staff, e.g. the st aff of civil defence organisations and the 
planning and finance ministries in the f our Andean countries. The ministries of 
education and civil defence institutions ar e especially interested in making risk 
reduction a transversal theme in education. Pilot projects helping local governments 
to manage risk reduction in an integrat ed way began in September. Following the 
earthquake of 15 August, PREDECAN s upported Peru's Civil Defence with 
EN 85   EN professional advice on efficiency and sustainable reconstruction. 
 
Food Security in Bolivia  
In 1996 the EU started the Programa de apoyo a la seguridad alimentaria (PASA) 
food security support programme (EC contribution  €80.6 million until 2006), 
supporting policy making institutions and fina ncing a wide range of projects in poor 
rural municipalities. These projects range  from training and technical assistance 
supporting agricultural productivity  and irrigation works to road infrastructure that 
benefited some 40,000 families in rural areas. Thanks to the programme, in the last 
decade Bolivia has developed a comprehens ive view on food security, allowing for 
more consistent policy formulation and th e targeting of interventions to the most 
deprived. The programme substantially im proved access to food and it helped reduce 
the income volatility and risk vulner ability of the peas ant population. The 
programme has become a full-fledged Boliv ian institution that has been recently 
decentralized, endowing it with a great er functional autonomy. This recent 
government decision shows maximum national ownership and long-term 
sustainability. 
2.3.5.  South Africa 
2.3.5.1.  Introduction 
The programming of development c ooperation for the period 2007-2013 was 
concluded with the adoption of a count ry strategy paper and a multi-annual 
indicative programme. The strategy paper was fo r the first time elaborated jointly by 
the Commission, South Africa and eleven EU Member States. The strategy paper 
defines the reduction of poverty and inequal ity as the overriding objective of the 
development cooperation between Sout h Africa and the EU for the period 2007-
2013. The indicative programme translates th is joint response into a Commission-
South Africa programme of action. It fore sees an indicative allocation of €980 
million for the seven-year period. It was approved by the European Parliament and signed in Pretoria on the 10
th of October by Commissi oner Michel and Finance 
Minister Trevor Manuel. The main areas of cooperation are empl oyment creation and 
capacity development for service delivery and social cohesion. Other areas include 
governance and regional and pan-African support. 
The overall relations between South Africa and the EU have been strengthened with 
the adoption in May of an action plan fo r implementing the strategic partnership, 
which calls for deepened political dialogue  and political cooperation and seeks to 
develop cooperation in a wide range of areas. 
2.3.5.2.  Aid effectiveness and donor coordination 
Under the leadership of the National Treasury, the South African government 
convened donors to share experiences in putti ng the Paris Declarati on into effect. An 
evaluation has been launched to prepar e for the Accra High Level Forum on Aid 
Effectiveness in 2008. Five donor coordinati on groups have been established to map 
donor activities and to enga ge with the government on the policy framework and 
programmes of action. 
EN 86   EN 2.3.5.3.  Working towards the MDGs 
South Africa is likely to achieve most of the MDGs by 2015. However, due to the 
high levels of unemployment, difficulties re main in relation to poverty eradication. 
Increased government spending on social se rvices, including soci al grants, has gone 
some way towards alleviating poverty am ongst the poorest households. Nonetheless, 
mass poverty remains pervasive with just  under 50% of the population living under 
the poverty line established by the South African government. Institutional reforms 
are required to address unemployment  and weaknesses in service delivery. 
2.3.5.4.  Regional cooperation and integration 
The negotiations for an Economic Partne rship Agreement (EPA) led to intense 
discussions on regional economic  integration, intra-regiona l trade and international 
trade. South Africa already has a WTO-co mpatible free trade agreement with the 
EU51 as well as an agreement on trade in wine and spirits, that are unaffected by the 
expiry of the Cotonou trade regime. Therefore,  it has chosen to remain outside of the 
agreement for the time being; but the door  remains open for it to join the SADC 
EPA. South Africa is expected to remain engaged in the negotiations towards a full 
EPA and to join the other SACU countries under a single trade regime in the future. 
2.3.5.5.  Implementation 
Sectoral budget support and sectoral polic y support programmes accounted for more 
than half of the programmes approved this  year. In total, disbursements worth €105 
million were made. 
Three major new programmes were approved that complement the two focal areas 
for South Africa, namely employment crea tion and capacity development for service 
delivery. The programmes, worth €153 milli on, will be implemented mostly through 
sectoral budget support and will contribute to achiev ing the MDGs through sector 
specific support to local economic development in the Eastern Cape (€16 million), 
"water for growth" (€107 million) a nd science and technology (€30 million). 
In the economic sector, two major sect or budget support programmes for private 
sector development have been implemente d. Beneficiaries have been largely small 
and medium size enterprises. This resulte d in the creation of an equity fund for 
women entrepreneurs as well as the estab lishment of ICT business centres delivering 
support to more than 100 companies to be tter prepare for local as well as global 
competition. Three local economic devel opment programmes providing grants and 
technical support to small scale businesses ha ve started to generate local employment 
and economic growth in the rural area s of three South African provinces. 
The Conflict and Governance Facility supports research  institutes and NGOs to 
promote improved decisions on issues rela ted to conflict and governance. Research 
financed under this programme has alrea dy contributed to better informed policy-
making and implementation and consequently has enhanced good governance and 
democratisation in South Africa.  
                                                 
51 The Trade and Development Co operation Agreement (TDCA) 
EN 87   EN 2.3.5.6.  Monitoring 
Fourteen projects for a total budget €159 million were monitored, showing good 
results with an overall average score of 2.59 for all parameters. Five of the projects 
visited were being re-monitored and four of  them showed distin ct improvement in 
the overall performance. At the end of  the year, a large monitoring study was 
conducted on the whole cooperation portf olio of the Commi ssion Delegation in 
South Africa. This study was followed by two stakeholder workshops on the projects 
that have been identified as "off-track". If  successful, this pilo t exercise might be 
repeated by other Delegations with important  portfolios at nationa l or regional level. 
2.3.5.7.  Perspectives 
The move towards budget support in South Africa has generated more efficiency, 
ownership and alignment with government polic ies. This trend is likely to continue 
in the future as it will fu rther enhance the sustainabili ty of development policies. 
Moreover, a strong emphasis will be placed on multilateral donor coordination, 
especially with EU Member States and the European In vestment Bank. Preparations 
for the larger programmes to be fi nanced in 2008 began this year. 
MDG 7 reached 
The introduction of innovative approach es, systems development, access to 
international best practice and capacity development have enabled South Africa to 
achieve the target of the MDG7 long be fore 2015; i.e. to reduce by half the 
proportion of people without access to safe drinking water. The European 
Commission has contributed significantly to  this success. The third water sector 
support programme alone provided for the s upply of water to one million people and 
basic sanitation to 250.000 people. 
EN 88   EN Table 17 DCI - Geo-Sector   Breakdown by sector of external aid financed on the General Commission 
Budget managed by EuropeAid in 2007
Commitments ( € million)
Payments ( € million)
Bilateral and Multilateral ODA/OA (Eu ropeAid only).720 M€, 52%
93 M€, 7%112 M€, 8%143 M€, 11%173 M€, 13%121 M€, 9%Social Infrastructures: Education, Health,
Water, Government & Civil Society,
Other 
Economic Infrastructures & Services :
Transport, Communications, Energy,
Other services
Production : Agriculture, Forestry &
Fishing, Industry, Mining & Construction,
Trade & Tourism
Multisector/Crosscutting : Environment,
Other
Budget Support, Food Aid, FoodSecurity
Others - Including Emergency
assistance, reconstruction relief
144 M€, 11%210 M€, 16%
608 M€, 49%
145 M€, 11%103 M€, 8%
69 M€, 5%Social Infrastructures: Education, Health,
Water, Government & Civil Society,
Other 
Economic Infrastructures & Services :Transport, Communications, Energy,
Othe r se rvice s
Production : Agriculture, Forestry &Fishing, Industry, Mining & Construction,
Trade & Tourism
Multisector/Crosscutting : Environment,
Other
Budget Support, Food Aid, Food Security
Others - Including Emergency
assistance, reconstruction relief
 
€ millions 2007
Commitments          1 362    
Payments          1 279    
Bilateral and Multilateral ODA/OA (EuropeAid only)Table 18 DCI - Geo-Total   External aid financed on the 
General Commission Budget managed by EuropeAid 2007
 
EN 89   EN 2.3.6.  Accompanying measures for Sugar Protocol countries 
These measures cover the period 2006-13. Th ey aim to help eighteen ACP countries 
traditionally exporting sugar to the EU (namel y the signatories to the Sugar Protocol) 
to adjust to the new market conditions creat ed by the reform of the EU sugar regime. 
The legal bases for this specific suppor t were adopted in 2006, with significant 
funding envisaged in the Financial Pers pectives ((€1 244 million for 2007-2013, of 
which €667,338 for 2007-2010). This budget is distributed among the beneficiary 
countries according to their n eeds, depending on the level of impact of the reform 
and on the importance of the sector in th eir economies. For the period 2007-2010, the 
Commission allocated 49%, 42% and 9% of  the budget indicatively to the concerned 
Caribbean, African and Pacifi c countries, respectively52. 
EC assistance under these measures is c ountry-specific, based on their adaptation 
strategies. It aims to strengthen the compe titiveness of the sugar sector, where this is 
a sustainable process, to support the develo pment of alternative activities, or to 
mitigate broader impacts, in particular social and environmental. Programming of the assistance was finalised in 2007
53. For the 12 countries54 which had established their 
adaptation strategy in 2006, the assist ance strategy adopted in 2006 was 
complemented in 2007 by a multi-annual indicative programme for 2007-2010, in 
conformity with the requirements of the DCI. The five countries55 which had not yet 
determined their adaptation strategy in 2006, did so in 2007, allowing for the Commission to adopt an assistance strategy for 2007-2013 and a multi-annual 
indicative programme for 2007-2010. 
This year, the implementation of the 2006 financing agreements proceeded 
(satisfactorily, at least from the perspe ctive of disbursement rates), while new 
financing decisions for the 2007 budge t were adopted for all countries
1. At this stage, 
it is too early to assess the progress in implementation of the strategies, or their 
social, economic and environmental impacts. 
As to the reform of the EU sugar regime , as planned, no further price reduction took 
place in 2007-2008 (beyond the 5% cut already applied to the reference price for raw 
sugar in 2006-2007). The impact of the EU price reductions on ACP economies, at this stage, also has to be seen in the cont ext of the appreciation of the exchange rate 
of the euro against the dollar. 
Finally, a significant change in the EU-ACP trade regime for sugar was agreed in 
2007, with the conclusion of Economic Pa rtnership Agreements (interim or 
complete). While upholding the commitment to duty free quota free access for LDC 
sugar from 2009, the EU will offer simila r access to all ACP sugar from 2009 as 
well, subject to a specific safeguard clause for non-LDC countries. For 2008/09, 
zero-duty import quotas, additional to t hose of the Sugar Protocol and of the 
"Everything but Arms" agreement, have been granted to the Caribbean (60.000 T), 
                                                
 
52 C(2007)1688 
53 With the exception of Fiji, due to the political difficulties following the military coup in December 
2006. 
54 Madagascar, Malawi, Mauritius, Mozambique, Swaziland, Tanzania, Zambia, Barbados, Belize, 
Guyana, Jamaica, St Kitts and Nevis. 
55 Trinidad and Tobago, Republic of Congo, Ivory Coast, Kenya, Zimbabwe. 
EN 90   EN the Pacific (30.000 T), Eastern and Southe rn Africa (75.000 T), the East African 
Community (15.000 T), and the Southern African Development Community (50.000 
T), for those countries that have initialled an EPA. A minimum price obligation for 
importers will be maintained until 2012. Cons idering this new trade regime between 
the EU and the ACP, the EU denounced th e Sugar Protocol in 2007 (in conformity 
with its article 10), so that its existence terminates on 30 September 2009. 
2.3.7.  Investing in people 
In January 2006, the Commission a dopted a Communication entitled Investing in 
People  on the thematic programme for human and social development. The DCI is 
providing just over €1 billion for this pr ogramme to support actions in areas that 
directly affect people's living standard s and wellbeing, with a focus on the poorest 
and least developed countries and the most disadvantaged sections of the population. 
On this basis, a strategy has been appr oved to support activities under four main 
pillars, namely good health for all; education, knowledge and skills; gender equality; and other aspects of social and human development (including social cohesion, 
employment, decent work, children and youth, sport, and culture). 
Health 
The Commission pursued its efforts toward s health within developing countries 
using aid modalities in line with countrie s' specificities and its commitment to donor 
coordination, leading to an increasi ng number of active gl obal budget support 
operations in ACP countries and an expa nsion of sector policy support programmes 
in other regions, in particular Asia. This year, the Commission joined the 
International Health Partnership that aims to improve donor harmonisation and 
coordination in several selected countries.  The lack of human resources for health 
has become more critical in 2007. As a consequence the EC is increasing its 
involvement in this field. For example, in Zambia the Commission is supporting the 
retention of human resources in the health  sector through sector budget support. It 
has also committed €10 million to support the development of human resources for health in the African Portuguese-speaking countries. 
The areas for support financed through them atic budget lines are the fight against 
poverty-related diseases, the promotion of sexual and reproductive health and rights, 
as well as addressing crisis concerning th e human resources for health. Under the 
thematic programme, the Commission made  a contribution of €62 million to the 
Global Fund to fight AIDS, TB  and Malaria as part of the larger commitment to 
contribute €100 million annually from bot h the EC Budget and the EDF. The 
response to HIV/AIDS and other poverty dise ases, such as malaria and tuberculosis, 
remains an important priority. The Comm ission also supported an international 
conference on the control of cervix cancer in developing countries. The conference 
was a landmark as it brought together for the first time, politicians and policymakers 
from around the world, industry and regulat ors, research groups, and civil society 
organisations including women’s right s groups. The Commission supported a 
comprehensive approach ranking from prev ention to treatment while emphasising the 
need for further research on the relevance of promoting HPV vaccine in developing 
countries.  
Education, knowledge and skills 
EN 91   EN €22 million was made available to the Education For all Fast Track Initiative multi-
donor Catalytic Fund to increase financial resources in countries with a financial gap so as to support their educa tion sector plan and to accele rate the pace of enrolling 
children in school, improving the quality of  teaching and learning, and ensuring that 
students complete primary education. 
International aid is essential to consolidate progress towards education for all. It must 
be more predictable over a longer term, and target those countries most in need. The 
Fast Track Initiative (FTI) has become a key vehicle for this end eavour. It is a global 
partnership between donors, developing co untries and civil society to ensure 
accelerated progress towards the MDG of universal primary education. All low-
income countries which demonstrate seri ous commitment to universal primary 
completion can receive support from FTI. It  also provides an important coordinating 
mechanism for donor agencies. 
FTI encourages the mobilization of financia l resources in support of the development 
and implementation of education sector pl ans of participating countries. Ideally, 
sufficient resources are made available directly by bilateral and multilateral partners in addition to increased domestic expenditure . When this is not possible, the FTI can 
provide transitional support from one of its  two multi-donor trust funds: the Catalytic 
Fund and the Education Program Developm ent Fund. The Catalytic Fund Strategy 
Committee has reaffirmed that  this fund should reduce fi nancing gaps that cannot 
otherwise be filled. Stre ngthening country level  processes has  emerged as a need, 
which can be addressed  by focusing on four key issues , namely planning, appraisal 
and endorsement processes; donor coordina tion and harmonization; monitoring; and 
financing modalities. 
Gender 
This was the first year of implementa tion of two projects carried out by UN 
organisations. A project implemented by UNIFEM aims to integrate the gender 
dimension in the elaboration and analysis of the budget of the state. A project in 
partnership with UNICEF facilitates the aban donment of harmful practices such as 
female genital mutilations. A call for propos als was launched to support civil society 
organisations that promote gender equality in the Mediterranean. 
Other aspects of social and human development 
Employment, social inclusion and protection 
With EC funding of  €7.3 million, a contribution agreement with the ILO was 
negotiated in order to implement two diffe rent innovative actions. The first supports 
governments and social partners in lo w-income and middle-income developing 
countries to have the tools and the capaci ty to monitor trends and measure progress 
on decent work results over time and to apply high-quality policy analysis. The second aims to manage labour market adjustme nt to maximise the benefits of trade in 
developing countries, specifically to impr ove knowledge of the effects of trade 
policies on employment, the quality of empl oyment, the participation of women and 
men in employment, income, and the inform al economy; with activities foreseen in 
several pilot countries all around the world. 
Culture 
EN 92   EN The programme provides €50 million to culture for the period 2007-2013 with the 
objective of improving access of local popul ations to culture. This will include 
strengthening of local cap acities, intercultural dial ogue, the development of 
platforms and networks to exchange expe rtise and good practices  and the promotion 
of public-private partnerships. A first cal l for proposals was launched in December. 
Children's rights and needs 
This year, children's rights and needs became,  for the first time, a specific chapter of 
EC external assistance under the Inves ting in People programme, allowing the 
Commission to have a more focused and coherent approach on children-related 
issues. In this framework, several actions  were initiated. A contribution agreement 
was signed with UNICEF to prepare a compre hensive toolkit to a ddress child rights 
in European development cooperation and ex ternal relations. Th e toolkit aims to 
support the implementation of the UN Conve ntion on the Rights of the Child as a 
whole, including through bette r participation of children in policies or strategies 
concerning them either directly or indi rectly and by improving the achievement of 
the Millennium Declaration and its goals . Specifically, the capacity of targeted 
stakeholders should be improved to identify  and address child ri ght issues in their 
work and design more integrated and eff ective policies and programmes in the areas 
of peace building, rehabilitation and devel opment cooperation that respect, protect 
and fulfil those rights. The EC provi ded €3.5 million out of a total €4 million. 
Another contribution agreement was signed w ith ILO/IPEC to fight against the worst 
forms of child labour in the framework of conflict situati ons. It aims to contribute  to 
peace building by preventing children to be recruited by armed forces and groups and to provide assistance to child ren trapped in the worst form s of child labour in conflict 
and post-conflict situations. The EC c ontributed €1.1 million out of a total €1.3 
million. Finally, a call for proposals is fo reseen for an amount combining €3.4 
million from the 2007 allocation and a pproximately €10 million from the 2008 
allocation. This call for proposals is divide d into two lots, one addressing children 
indirectly affected by conf licts (orphans, displaced, ma imed, etc) and the other 
addressing children affected by th e trafficking of human beings. 
2.3.8.  Non-State actors and local aut horities in development  
Ownership and participation are core princi ples of EU development policy, as stated 
in the European Consensus on Developmen t. The Commission plays a key role in 
facilitating and promoting dialogue between state and non-state actors on 
development priorities and strategies in partner countries. The Commission 
continued its efforts to promote participator y approaches, considering civil society as 
essential actors of change. A new thematic programme, Non-State Actors and Local Authorities in Development, replaced the NGO co-financing and decentralised 
cooperation budget lines. Although its overa rching objective is poverty reduction in 
the context of sustainable development, in cluding the pursuit of the MDGs and other 
internationally agreed target s, it is an “actor-oriented” programme aimed to build 
capacity through support for "own" initiatives by non-s tate actors and local 
authorities in both the EU and partner countries. 
Throughout the year, the Comm ission engaged in discussions with Council and the 
European Parliament on the scope, objectiv es and priorities of the strategy. This 
EN 93   EN refines the orientations taken in the DCI a nd defines strategic priorities for a four-
year period (2007-2010). Follo wing its approval on 21 June, the Commission also 
adopted its annual action programme  2007 on 14 December after having 
systematically involved the key stakeholders  in the Palermo process, Member States 
representatives, Members of the Eur opean Parliament and civil society 
representatives. This structured "quadril ogue" with Commission services enables all 
parties to create the conditions for more  efficient aid delivery, and improves the 
policy formation process. Concrete result s were achieved in simplifying certain 
administrative procedures for awarding proj ects, taking on board suggestions made 
by development NGOs with regard to fi nancial rules and procedures. On-line 
registration of potential app licants into a new data base, PADOR, has been launched. 
This eases the administrative burden for applicants and provi des the Commission 
with a tool for improving both its knowledge  and its understanding of  the needs of its 
implementation partners. 
In the spirit of the Paris D eclaration, the Commission f unded the DECIM initiative, a 
light donor coordination mechanism in count ries where institutional support to civil 
society organisations can benefit from a sy stematic attempt to achieve programme 
synergies and fill development gaps in five critical areas: an enabling legal framework; public advocacy, policy dialogu e and governance; delivery of social 
services and creation of soci al capital; financial sustaina bility; and capacity-building, 
knowledge-sharing and networking. The Co mmission also selected 270 projects  
proposed by European development NGOs fo r a total contribution of €194.3 million. 
In addition, 58 projects to raise the awareness of the European public were supported for a total of €29.9 million; 22 of which, representing a contribution of €9.4 million, are to be implemented exclusively in the 10 new Member States that joined the EU in 
May 2004. 
2.3.9.  Migration and asylum 
This year, the Commission built on previ ous progress and extended its external 
actions in the area of migration. For example, the 10
th EDF allocated increased 
funding to migration and it was the first year of the thematic programme for migration and asylum, which has been allocated €384 million for the period 2007-2013. This represents a substantial increase when compared with its predecessor, the 
AENEAS programme (€120 million increase in three years). Calls for proposals 
covering spending for 2007-2008 were launche d (€27 million for the Southern route; 
€21 million for the eastern; €2 million for the Middle East and Gulf States; €6 million for Asia and €6 million for Latin America and the Caribbean). A €15 million targeted project was agreed with UND P on the links between migration and 
development and a €4 million project on Asylum with UNHCR. Other activities included the launch of an ACP migration facility and cooperation platforms in 
Eastern Africa. 
The work to enhance dialogue and coopera tion on migration issues under the Global 
Approach with sub-Saharan and North Afri ca was further strengthened. At the same 
time, the Global Approach was extended  to the eastern and south-eastern 
neighbouring regions, building upon and rein forcing existing cooperation in these 
regions. International consensus and dialogue  on migration was al so made stronger. 
July saw the Global Forum on Internationa l Migration and Development; November, 
the Euromed ministerial meeting on Migra tion; while December, the second Africa/ 
EN 94   EN EU summit in Lisbon. The Lisbon summit r ecognized the importance of migration 
and the Action Plan of the Joint Strategy contains a partners hip on migration, 
mobility and employment. The Commission played  an integral role in these events 
and will continue to advance their follow up. 
The Commission adopted a report on Poli cy Coherence for Development in 
September, which also covers migration. Working towards the practical application 
of policy coherence, the Commission ensure d that all new country strategy papers 
include migration profiles. 
The Council Conclusions adopted in Decemb er welcomed the progress of the Global 
Approach to Migration and within this context defined a suitable approach to 
mobility partnerships and circular migrati on. Mobility partnershi ps will be piloted 
with Moldova and Cape Verde in 2008. 
2.3.10.  Environment and sustainable management of  natural resources including energy 
Under the DCI, provision is made for a th ematic programme for the environment and 
the sustainable management of natural re sources including energy (ENRTP). A total 
budget of €889.5 million has been foreseen for the period 2007 to 2013. In the ENRTP thematic strategy paper, five priorities constituting the core of the programme are identified for the first programming period (2007-2010). Supported 
with a budget of €469.7 million, these priori ties (i) work upstream in assisting 
developing countries to ach ieve the MDG7 on environm ental sustainability; (ii) 
promote the implementation of EU initiatives  and help developing countries to meet 
internationally agreed environmental comm itments; (iii) promot e coherence between 
environmental and other policies and e nhance environmental expertise; (iv) 
strengthen international environmental governance and policy development and, (v) 
support sustainable energy opti ons in partner countries. 
The 2007 annual action programme was adopt ed by the Commission on 3 December 
with a budget of €79 million. Through calls for proposals and several targeted project 
proposals, this action programme focuses on major environmental issues, such as 
climate change, desertification, biodivers ity, forest preservati on (including the EU 
Forest Law Enforcement, Governance and Trade – FLEGT – initiative). It will support capacities enhancement of developi ng countries for the implementation of 
Multilateral Environmental Agreements (MEAs), in particular the United Nations Framework Convention on Climate Change, the Convention on Biodiversity and the 
Convention on Desertification. Within the overall objective of promoting 
international environmental governan ce, the 2007 action programme provides 
support for international negotiations and environmental monitoring, assisting the 
operation of key multilateral environmental agreements and other, largely UN, processes and supporting coherent interna tional policy formulation for sustainable 
development. 
A specific programme on energy efficiency and renewable energy is also included. In 
the context of the EU's general policy objectives in the field of energy to 
simultaneously win the battle against climat e change, to eradicate energy poverty and 
to secure global energy supplies, the Global Energy Efficiency and Renewable 
Energy Fund (GEEREF) was created with an  allocation of €25 million from the 2007 
budget. The objective of GEEREF is to pool  public and private funds through an 
EN 95   EN innovative public-private part nership so as to offer ne w risk sharing and co-funding 
options for various investors in the areas of energy efficiency and renewable energy. 
The programme also supports the EU Wa ter Initiative and EU  Energy Initiative 
through the facilitation of policy dialogue, coordination, analysis  and consultation 
processes in the energy and water sectors at global, interregional, regional and sub-
regional levels. 
The ENRTP thematic programme complement s environmental activities planned and 
implemented under the external cooperati on programmes. While the latter cover 
local actions, the ENRTP has a clear focus on actions of global or  regional relevance. 
This includes activities in the forest se ctor related to forest governance mainly 
through actions in support of the implement ation of the EU FLEGT initiative. An 
ACP FLEGT support project for €10 million was financed. In the area of biodiversity 
and protected areas, the Commission c ontinued its long-term support for the 
conservation and sustainable management of  the tropical forest  in Central Africa 
(ECOFAC programme) through the implemen tation of the fourth extension of 
ECOFAC (€38 million). The DRC, which repres ents nearly half of  the tropical area 
in the region, gave a boost  to the importance of ECOF AC by joining the programme. 
In Asia, support for a €100 million program me called SWITCH will help the region 
to move towards more sustainable cons umption and production practices, while 
promoting trade in environmental goods a nd services. SWITCH-Asia supports ‘green 
growth’ and the development of environm ental technology. It focuses on issues 
relating to the consumption of  natural resources that link directly to increased 
greenhouse gas emissions and environmental degradation. As part of the external 
fisheries policy, the Commission pursued its actions for the promotion of the 
sustainable use of marine resources outsi de EC waters. The Co mmission pursued the 
strengthening of fisheries management in ACP countries and the promotion of 
regional cooperation through a €30 million pr ogramme under the 9th EDF. In total, 
the EC financial support56 to the fishery sect or in developing countries amounted to 
about €190 million in 2007. 
Several geographic programmes incorporate actions for capacity building in the field 
of environment but in addition, specific projects have been set up such as a €19.5 
million capacity building programme for Af rican, Caribbean and Pacific countries 
(9th EDF) in order to assist ACP countri es with their obligations under multilateral 
environment agreements. 
2.3.11.  Food security 
The world food situation is currently char acterised by new driving forces, namely 
income growth, climate change, high ener gy prices, globalization and urbanisation, 
which are transforming food availability, access, dive rsity and markets. The 
influence of the private sect or in the world food system is also rapidly increasing. 
Changes in food availabili ty, rising commodity prices  and new producer-consumer 
linkages have crucial implications for the livelihoods of the poor  and food-insecure 
people57. This year's cereal harvests in all regions of the world show a marginal 
                                                 
56 Including EDF and the financial compensatio n under the Fishery Partnership Agreements 
57 Food Policy Report N° 18 The World Food Situation, New Driving Forces and Required Actions, 
Joachim von Braun, IFPRI, December 2007. 
EN 96   EN growth of less than 1% from 2006, which follows increases of 5.1 and 3.1 % in the 
previous years. Increased production is ma inly concentrated in Asia (China and 
India) and in Southern Afri ca but reflects also an impr ovement, in comparison with 
2005, in Eastern, Western and Central Africa58. At half way between the adoption of 
the MDGs and the 2015 target date, sub-Sa haran Africa is not on track to achieve 
any of these goals. Persistent food in security is compounde d by conflicts, poor 
governance, adverse climatic conditions a nd the HIV/AIDS pandemic. These factors 
build on a chronic situation of poverty, whic h is still overwhelmingly rural, despite 
the growing phenomenon of urban food insecu rity, particularly in  Latin America and 
Asia. 
In its Communication A thematic strategy for food security – advancing the food 
security agenda to achieve the MDG59, the Commission has recognised the need for 
a new, comprehensive EC approach to st ate fragility and innovative food security 
responses to access, availability, nutritional diversity and quality at all levels. From 
this year onward, country programmes aime d to eradicate chroni c poverty are mainly 
supported through the geographical instrume nts. The humanitarian instrument 
addresses food crises and delivers food assistance through DG ECHO, and the new 
food security thematic programme (FSTP) ensures overall coherence in the approach to food security, mainly at global, contin ental and regional levels. However, the 
FSTP also intervenes at national level in order to ensure the continuity of assistance in the transition from relief to developmen t in failed and fragile states (LRRD). 
The FTSP's objective is to improve food secu rity in favour of the poorest and the 
most vulnerable and contribute to achievi ng the first MDG, through a set of actions 
which ensure overall coherence, compleme ntarities and continuity of Community 
interventions. This year's annual action programme amounted to €201.5 million and addressed several strategic priorities. €45 million was allocated for contributing to 
food security through research and technology. The CGIAR and its fifteen 
International Research Centres will be supported in its impor tant role in the 
development of applicable know ledge in the fields of food security, natural resources 
management and conservation of genetic resources. Exploiting the potential of 
continental and regional approaches to  improve African countries' trade by 
strengthening surveillance a nd control of food safety a nd quality systems received 
€10 million. 
€80.3 million were foreseen for addressing food insecurity in exceptional situations 
of transition, and in fragile and failed st ates where bilateral cooperation with 
governments is not feasible through ordina ry geographical instruments. In 2007, the 
EC strengthened the concept of LRRD and improved the coordination between relief and rehabilitation actions by taking into  account long-term development needs, 
including prevention and prep aration to crises. An LRRD analysis framework and 
main lines of actions for post-conflict and post-disaster situations were developed. A 
special allocation was provide d to chronically food-inse cure Asian and Caucasian 
countries (Bangladesh, Kyrgyzstan, Tajik istan, Georgia, Armenia, Yemen) for 
allowing a transition to longer-term assist ance to be provided in the future by 
geographical instruments (DCI and ENPI) in the area of social protection – €65.2 
                                                
 
58 Perspectives de l'alimentation, Analyses des Marchés Mondiaux, November 2007. The State of Food 
Insecurity (SOFI) 2006, The State of Food and Agriculture (SOFA) 2007FAO 
59 COM(2006)21 final 
EN 97   EN million. Finally, €0.7 million were dedicated to fostering advocacy and advancement 
of the food security agenda, harmonisation and alignment with development partners 
and donors. 
At the Commission's invitation, the Perm anent Interstate Committee for Drought 
Control in the Sahel (CILSS) and the Sahel and West Africa Club (SWAC/OECD) 
organized in Brussels the 23rd annual m eeting of the Food Crisis Prevention 
Network in the Sahel and West Africa. St rengthening networking to facilitate the 
exchange of information is a permanent concern of the Commission and one of the 
most effective ways to prevent food crises. 
Table 19 DCI - Thema-Sector   Breakdown by sector of external aid financed on the General 
Commission Budget managed by EuropeAid in 2007
Commitments ( € million)
Payments ( € million)
Bilateral and Multilateral ODA/OA (Eu ropeAid only)322 M€, 38%
32 M€, 4%
90 M€, 11%53 M€, 6%271 M€, 33%64 M€, 8%Social Infrastructures: Education, Health,
Water, Government & Civil Society,
Other 
Economic Infrastructures & Services :
Transport, Communications, Energy,
Other services
Production : Agriculture, Forestry &
Fishing, Industry, Mining & Construction,
Trade & Tourism
Multisector/Crosscutting : Environment,
Other
Budget Support, Food Aid, FoodSecurity
Others - Including Emergency
assistance, reconstruction relief
254 M€, 34%
29 M€, 4%
66 M€, 9%221 M€, 30%123 M€, 16%
53 M€ , 7%Social Infrastructures: Education, Health,
Water, Government & Civil Society,
Other 
Economic Infrastructures & Services :Transport, Communications, Energy,
Othe r se rvice s
Production : Agriculture, Forestry &Fishing, Industry, Mining & Construction,
Trade & Tourism
Multisector/Crosscutting : Environment,
Other
Budget Support, Food Aid, Food Security
Others - Including Emergency
assistance, reconstruction relief
 
EN 98   EN € millions 2007
Commitments             833    
Payments             745    
Bilateral and Multilateral ODA/OA (EuropeAid only)Table 20 DCI - Thema-Total   External aid financed on the 
General Commission Budget managed by EuropeAid 2007
 
2.4. Democracy and Human Rights 
The EU is firmly committed to continue developing a deeply rooted culture of 
democracy and human rights worldwide, in order to ensure that civil, political, 
economic, social and cultural rights are trea ted equally without any discrimination in 
their applicability. Democracy and human ri ghts are perceived as universal values, 
inextricably linked and to be pursued in their own right. They  are also seen as 
integral to effective work on poverty alleviation and achieving the MDGs, as vital tools for conflict prevention and resolution, and as the indispensable framework for 
combating terrorism. Democratic processes of  accountability are also key factors to 
ensuring government transparency a nd combating corruption. Ensuring human 
rights, rule of law and inclusive democracy are im portant to avoid alienating 
communities and to create the necessa ry conditions for human security. 
There is general acceptance of the need  for long term interventions and local 
ownership of the development and democr atisation process, engaging governments 
and all leading local stakeholders, incl uding national parliaments. Human rights 
affect every area of work and life. Fo r this reason, the Commission pursues a 
mainstreaming approach to its promotion. Par ticular attention is gi ven to the rights of 
specific groups such as children, indigenous  peoples and people with disabilities. 
Time and resources are invested into ensuring that the means and ways used in achieving development objectives promote a nd at the minimum do not conflict with 
universal human rights principles. A study on lessons learnt, consultation 
mechanisms and procedures as well as best  practices from projects which affected 
indigenous peoples and communities in th e ACP countries, particularly Suriname 
and Kenya, was commissioned in 2007. The study is due to be finalised in February 
2008 and its recommendations should identi fy priority areas where indigenous 
peoples' rights and issues shoul d be better integrated as we ll as specific projects for 
support to indigenous peoples' rights and i ssues that can be accommodated under the 
programming for the 10
th EDF. 
Activities to implement EU policies fo r democracy and human rights worldwide 
include political dialogue, diplomatic initiatives and assistance financed from instruments for financial and technical c ooperation, including DCI, ENPI, IPA, the 
Instrument for Stability, the EDF and the European Instrument for Democracy and 
Human Rights (EIDHR). EIDHR compleme nts and reinforces action on human 
rights and democracy under other instrume nts. Work with, for and through civil 
society organisations gives EIDHR its crit ical profile. It promotes the kind of 
EN 99   EN openness which civil society needs in order to  thrive and supports it in becoming an 
effective force for dialogue and reform. It  tackles human rights issues at the front 
line, with particular reference to huma n rights defenders, high lights the ubiquitous 
problem of torture and ill-treatment and supports democratic reform and human 
rights at local level. 
For 2007-2010, EIDHR aims to enhance resp ect for human rights and fundamental 
freedoms in countries and regions where they are most at risk; strengthening the role 
of civil society in promoting human right s and democratic reform, in supporting the 
peaceful conciliation of group interests, and in consolidating political participation 
and representation; supporting actions in areas covered by EU Guidelines, including 
on human rights dialogues, human rights defe nders, the death penalty, torture, and 
children and armed conflict; supporting and strengthenin g the international and 
regional framework for the protection of human  rights, justice, the rule of law and 
the promotion of democracy; and building c onfidence in and enhancing the reliability 
and transparency of democratic electoral pr ocesses, in particular  through EU  Election 
Observation Missions. This year six globa l calls for proposals, for some €53.5 
million were issued. These made available €11.5 million for projects to enhance respect for human rights and fundamental freedoms in countries and regions where 
they are most at risk; €31.5 million to  support actions on human rights and 
democracy issues in areas covered by the EU guidelines on to rture, human rights 
dialogues and human rights defenders; and €10.5 million to support and strengthen 
the international and regional framework for the protection of huma n rights, justice, 
the rule of law and the promotion of demo cracy, in particular International Justice 
and Regional Master's Degrees outside the European Union. 
In addition, country-based support schemes covered 47 countries, where local calls 
for proposals and support measures will be implemented for an indicative amount of 
€31.8 million. Strategic partnerships  to support and strengthen  the international and 
regional framework for the protection of human  rights, justice, the rule of law and 
the promotion of democracy included th e UN Office of the High Commissioner for 
Human Rights, the International Criminal C ourt, the Special Court for Sierra Leone, 
the Council of Europe, the OSCE/ODIHR, the Masters Degree in Human Rights and 
Democratisation, the EU-UN Fellowship Pr ogramme, and other education, training 
and research activities. 
Lessons learned 
EIDHR continued to be subject to mu ch scrutiny and evaluation. Improvements 
regarding programming and implementation we re made. There has been a shift from 
project evaluations to thematic, progr amme and methodological ones covering a 
wider range of projects and providing a bette r overview of its im pact. An evaluation 
of support to torture rehabi litation centres was launched in 2007 and its results will 
be available in 2008. Recent evaluation reports are available on death penalty 
abolition projects, covering all EIDHR assi stance in this field since 1998, and on the 
Council of Europe's network of schools fo r political studies, which the Commission 
co-finances through EIDHR
60. 
                                                 
60 http://ec.europa.eu/europeaid/where/worldwide/eidhr/working-documents_en.htm  
EN 100   EN Several recommendations appear in most  EIDHR evaluations, including those to 
increase dialogue with implementing partners  during projects, to increase sharing of 
information and lessons learned between Delegations and Comm ission headquarters 
on the implementation of the programme, mo re systematic monitoring, combining 
project visits by EC task managers with visi ts of external consultants (ROM), and to 
increase and improve use of logical fr amework approaches and project cycle 
management. This year's annual action programme reflected these issues, in 
particular as regards support measures and coordination. Commission Delegations 
can spend up to 3% of the respective a nnual operational c ountry allocation on 
support measures accompanying the impl ementation of country-based support 
schemes (activities in the field of communication, capacity-building actions for civil society local partners, meetings with local organisations, etc). 
Electoral assistance and observation 
Support to the electoral process is particul arly important in the strategy to promote 
democracy and is mainly implemented in two ways. With legal, technical and logistic support, electoral assistance aims to strengthen national capacities to conduct 
peaceful and well-organised elections in an open, competitive and transparent process. Through the deployment of EU El ection Observation Mi ssions, electoral 
observation aims to legitimise and e nhance public confidence in the electoral 
process, to deter fraud, to strengthen resp ect for human rights, and to contribute to 
the resolution of conflicts. This year  the Commission identified, formulated and 
launched the implementation of electoral  assistance projects in Togo (€13.6 M), 
Bangladesh (€15M), Guinea Conakry (€8.7 M) , Chad (€5 M), Timor Leste (€1.5 M), 
Comoros (€0.4 M). Donor coor dination is particularly relevant for electoral 
assistance and the commitments of the Paris Declaration are taking root at country level. In most cases, EC contributions  are channelled through common "basket 
funds" managed by UNDP that combine most of the donor assistance to the electoral 
process. 
Developing methodological tools and coordi nation and collaboration with the main 
actors in the field continued to be a priority. The EC Methodological Guide on 
Electoral Assistance  finalised in 2006 has been wi dely disseminated. A training 
manual for the EC/UNDP Joint Training on E ffective Electoral was also developed 
for the 2007 edition of this training seminar.
61 This seminar brought together for five 
days more than 100 participants from EC a nd UNDP staff but also representatives of 
electoral management bodies and government  institutions, staff from bilateral 
development agencies, international organizations and selected international electoral experts. This year, the Commission joined the Steering Committee of ACE, the most important electoral knowledge network and largest repository of information, tools 
and methodologies on electoral assistance.
62 The Commission shares the goal of the 
ACE network, to promote more professional,  effective and sustainable administration 
of elections worldwide. It supports the network financiall y and in substance, with 
comparative data, studies and reports deri ved from EC-funded projects and from the 
tools and methodologies deve loped by the Commission. 
Election observation 
                                                 
61 www.ec-undp-electoralassistance.org  
62 www.aceproject.org  
EN 101   EN In 2007 the EU successfully implemented election observation missions in ten 
countries: Aceh, Mauritania, Nigeria, Ti mor Leste, Sierra Leone, Guatemala, 
Ecuador, Togo, Kenya and Pakistan with a total of some 800 observers deployed on 
the ground. These missions played a key role in providing an appreciated 
professional assessment of the electoral process, in particular in countries where the 
election was controversial (e.g. Nigeria, Kenya ). However, the year was also marked 
by a few missions that were postponed (Bangladesh early in the year, Nepal's June and November's postponements) or cancelled (Thailand). 
The EU Electoral Observation Mission' s methodology is mainly based on the 
principles of independence, impartialit y, transparency, and long-term observation. 
EU election observation involves the assessm ent of the strengths and weaknesses of 
an electoral process and the presentation of recommendations that will provide an 
important basis for determining furthe r assistance after the elections. This 
methodology has improved in the past years and it has been praised by the media and 
partner bodies for its accuracy. The s econd edition of the EU EOMs handbook was 
updated and finalised. 
EN 102   EN Table 21 EIDHR-Sector   Breakdown by sector of external aid financed on the General Commission 
Budget managed by EuropeAid in 2007
Commitments ( € million)
Payments ( € million)
Bilateral and Multilateral ODA/OA (Eu ropeAid only)133 M€, 94%9 M€, 6%Social Infrastructures: Education, Health,
Water, Government & Civil Society,
Other 
Economic Infrastructures & Services :
Transport, Communications, Energy,
Other services
Production : Agriculture, Forestry &
Fishing, Industry, Mining & Construction,
Trade & Tourism
Multisector/Crosscutting : Environment,
Other
Budget Support, Food Aid, FoodSecurity
Others - Including Emergency
assistance, reconstruction relief
118 M€, 91%4 M€, 3%8 M€, 6%
Social Infrastructures: Education, Health,
Water, Government & Civil Society,
Other 
Economic Infrastructures & Services :Transport, Communications, Energy,
Othe r se rvice s
Production : Agriculture, Forestry &Fishing, Industry, Mining & Construction,
Trade & Tourism
Multisector/Crosscutting : Environment,
Other
Budget Support, Food Aid, Food Security
Others - Including Emergency
assistance, reconstruction relief
 
EN 103   EN Table 22 EIDHR-Geo   Breakdown by region of external aid financed on the General Commission 
Budget managed by EuropeAid in 2007
Commitments ( € million)
Payments ( € million)
Bilateral and Multilateral ODA/OA (Eu ropeAid only)6 M€, 4%
10 M€, 7%
117 M€, 82%6 M€, 4% 4 M€, 3%
ENPI East ENPI South
Asia Latin America
ACP Regional
12 M€, 9%
11 M€, 8%
22 M€, 17%
15 M€, 12%38 M€, 29%32 M€, 25%
ENPI East ENPI South
Asia Latin Amer ica
ACP Regional
 
€ millions 2007
Commitments         142    
Payments         130    
Bilateral and Multilateral ODA/OA (EuropeAid only)Table 23 EIDHR-Total   External aid financed on the 
General Commission Budget managed by EuropeAid 
2007
 
EN 104   EN 2.5. Stability 
2.5.1.  Crisis response and preparedness 
For several years EC external instrument s have been providing the Commission’s 
contribution to the Union’s overall crisis responses, be it in response to natural 
disasters or to political cris es in third countries, in the latter case often alongside EU 
Joint Actions under Common Foreign and Security Policy (CFSP) or European Security and Defence Policy (ESDP). Betw een 2000 and 2006, this role was played 
by the Rapid Reaction Mechanism (RRM) for non-humanitarian crisis responses. 
Despite modest financial envelopes (in th e order of €30 million pe r year) and a tight 
limit on the duration of programmes (maximum six months), RRM-funded projects have played a significant role  in several crisis response undertakings by the EU, in 
many cases kick-starting programmes und er the geographic instruments or 
dovetailing CFSP/ESDP. The RRM was successf ully used followi ng the crisis in 
Afghanistan, in response to the tsunami a nd for the Aceh Peace Process, for the EU 
Border Assistance Mission to Moldova and Uk raine, and in response to a series of 
other crises in Africa, Latin America, the Western Balkans and the Middle East. 
The launch of the Instrument for Stability (IfS) this year considerably enhanced the 
Commission’s crisis response capacity (in ad dition to introducing an allocation for 
crisis preparedness (see belo w), and creating the possibili ty to address longer-term 
trans-regional security threats over the longer term (see 2.5.2). Compared to the 
RRM, the crisis response component of the IfS represents a cons iderable increase in 
financial allocations (€93 million in 2007, and an average of €200 million per year 
during the period 2007-2013) and in the du ration of programmes (18 months, with 
the possibility of extension, and/or of succedent interim response measures). 
IfS crisis response measures can address a wide range of issues , including support to 
mediation, confidence building, interim admi nistrations, strengthening the rule of 
law, transitional justice, disarmament/dem obilisation/re-integration of combatants 
(DDR), equitable access to natural resour ces, disaster response and rehabilitation. 
Such activities can be supported in situatio ns of crisis or emerging crisis, when 
support cannot be provided rapidly e nough under other financial instruments. 
Typically, the IfS can be mobilised in th e case of a major new political crisis or 
natural disaster, a window of opportunity to pre-empt a crisis or advance on conflict 
resolution, the urgent need to secure the c onditions for the delivery of EC assistance, 
or alongside CFSP / ESDP actions. Approval procedures are designed to ensure rapid 
adoption of programmes. 
In its first year of operation the IfS alre ady financed a significant number of crisis 
response projects with a total budget of €91 million
63. Geographically, the measures 
adopted are widely distributed. The larges t share of funds has been allocated for 
measures in Africa (DRC, Uganda, Guinea-Bissau, Chad, Darfur, Zimbabwe, Somalia), followed by the Middle East (Lebanon,  Palestine, Iraqi Refugees in Syria), 
the Balkans (Kosovo), Latin America and the Caribbean (Colombia, Bolivia, Peru, Haiti), and Asia-Pacific (Afghanista n, Thailand, Sri Lanka, Burma/Myanmar, 
                                                
 
63 For full details, see Annual Report from the European Commission on the Instrument for Stability in 
2007 , COM (2008) 181. 
http://europa.eu.int/eur-lex/lex/LexUriServ/L exUriServ.do?uri=CELE X:52008DC0181:EN:NOT  
EN 105   EN Philippines, Fiji). Two thematic facilities were devised, with a view to providing 
support for policy advice and mediation, on the one hand, and, in the context of the Commission's Chairmanship of  the Kimberley process in 2007, to address the issue 
of conflict resources, on the other. The identified measur es cover a broad range of 
issues, targeted on the specific needs of each conflict/post-conflic t situation: short-
term advice to develop and catalyze post-conflict security system reform, 
complementary measures in areas wher e ESDP missions are deployed (e.g. DRC, 
Afghanistan, Chad), support to regional peace-building capacity (AU – AMISOM 
Somalia, AU-UN Mediation in Darfur), ru le of law and transitional justice 
(Afghanistan, Kyrgyzstan, Colombia, Haiti) , support to interim ad ministrations (ICO 
Kosovo), conflict resolution and reconcili ation, post-conflict or  -disaster needs 
assessments (Lebanon, Peru), support to displaced populations (Lebanon, Syria), and conflict resources (ded icated facility). 
In addition to this sizeable and growing crisis response compone nt, the IfS innovated 
by introducing a ‘crisis preparedness’ co mponent of €7 million. The Peace-building 
Partnership aims to mobilise and consolidate civilian expertise for peace-building activities. It mainly focuses on strengtheni ng the up-stream capacity of partners to 
rapidly respond to a crisis scenario, and ma inly addresses civil society organizations 
and think-tanks, but also in ternational organizations a nd agencies in EU Member 
States. The first annual ac tion programme financed capaci ty-building, early warning 
activities and exchange of e xperience on best practice for civil society organizations; 
early warning and early recovery work w ith UNDP and the AU; and training for civil 
stabilization missions. The Peace-building Pa rtnership will build upon existing work 
with civil society organizations which is cu rrently being undertaken in the context of 
a preparatory action for the establishment of  a conflict prevention network. Finally, a 
web-portal has been launched under the Pa rtnership, which will allow organizations 
to provide information regarding their areas of activity related to conflict prevention, 
crisis management and peace-building to the Commission. This information will initially serve as a directory in order to facilitate the enhancement of a policy 
dialogue. 
Work is also underway to further im prove the Commission’s crisis response 
capacities. In line with earlier recomme ndations of Michel Barnier’s report
64, the 
network of Commission Delegations in th ird countries is be ing strengthened 
specifically as regards the coordination and f acilitation of crisis responses, with the 
objective of progressively building several regional poles of multi-sector expertise. 
Work is also continuing on the further reinforcement of disaster response 
coordination between humanitarian respons es, civil protection, and other crisis 
responses, both at headquarters level and in the field. The EC civil protection 
mechanism, deployable within and out side the EU through the mechanism’s 
Monitoring and Information Centre (MIC), was further strengthened during the year 
to allow the Commission to facilitate and in some cases co-finance (up to 50%) the 
transport of civil protection assistan ce to a disaster affected country. 
                                                 
64 Michel Barnier, For a European Civil Protection Force: Europe Aid , May 2006. 
http://ec.europa.eu/commission_barroso/president/pdf/rapport_barnier_en.pdf  
EN 106   EN 2.5.2.  Global and regional trans-border challenges 
One of the components of the IfS aims to develop longer-term EC actions to counter 
global and trans-regional threats arising from organised crime, trafficking, 
proliferation of nuclear, biological and chem ical agents and also threats to critical 
infrastructure and public health. 
In September; a strategy paper (with an indicative programme 2007/2008) was 
adopted. Its main priorities for longer-term actions are to block the proliferation of 
weapons of mass destruction, global and tran s-regional efforts to address the threats 
posed by trafficking, terrorism and organise d crime, and building capacity within the 
EU and the international community for e ffective crisis response. An appropriate 
regional balance and coherence and compleme ntarity of all IfS actions with those 
supported through other EC instruments, including the EDF, will be ensured. The 
first indicative programme includes a range of actions relating to the trans-regional 
threats. It also foresees the devising of  a mechanism (expert support facility) to 
mobilise expertise in the domains covered by the IFS in order to ensure the proper 
preparation of the actions. The other com ponents of the IfS addr ess crisis response 
and preparedness (see section 2.5.1). 
On 23 October the European Court of Ju stice annulled the Co mmission financing 
decision of 21 December 2004 approving a project  relating to border security in the 
Republic of the Philippines on the ground of excess of competence. The Court ruled 
that this Decision pursued an objective concerning the fight against terrorism and 
international crime falling outside the fr amework of the development cooperation 
policy pursued by the ALA Regulation (const ituting its legal basi s). In order to 
comply with this judgment, on 20 D ecember the Commission adopted a Decision 
regularising and enabling the c ontinuation of the project, which qualifies as a Special 
Measure under Article 9 of th e IfS regulation. Article 4(1)(a ) of the latter gives the 
Commission the competence to provide technical and financial assistance to third 
countries in the field of counter-terrorism. 
Mine action 
The overall goal of EC mine action has alwa ys been to contribute to the elimination 
of mines (including Explosive Remnants of  War) and to solve the related economic 
and social problems caused by these weapons. That is why “mine action” has always 
been part of EC assistance and developm ent programmes in third countries. This 
year, Commission support in this area con tinued to be carried out in line with the EC 
Mine Action Strategy and rela ted Multi-annual Programming 2005-07. Mine action 
policy was pursued through various instru ments for a total of €33 million committed 
to support action in Belarus, Bosnia-Her zegovina, Cambodia, Cyprus, Ethiopia, 
Guinea-Bissau, Jordan, Lebanon, Senegal and Sudan. Activities supported included 
mine clearance, mine risk education, APL st ockpile destruction and assistance in the 
safe return, resettlement and establishmen t of livelihoods of internally displaced 
persons and refugees.  
EU Small Arms and Light Weapons (SALW)  
The Commission continued supporting the implementation of the EU Small Arms 
and Light Weapons (SALW) Strategy. The Commission has been pursuing the 
EN 107   EN integration of issues related to small arms  into country and regional strategy papers. 
This offers partner countries the opportuni ty to give the appr opriate political and 
funding priority in engaging these issues in  the context of EC external assistance 
programmes. The main project was assistan ce to overcome the consequences of the 
Novobohdanivka ammunition depot explosions in Ukraine. SALW-related projects, 
both at regional and national level, were accompanied by seminars and initiatives aimed to increase the Commission’s particip ation in policy debates, ensuring more 
coherence between CSFP and EC-funded init iatives and to strengthen cooperation 
with other non EU-partners. In this c ontext, a seminar was organised by the 
Commission together with the AUC. Additi onally, a preparatory action on SALW for 
the Western Balkans SALW was smoothly implemented and concluded.  
Non proliferation of weapons of mass destruction 
A Commission pilot project programme on e xport control of dual use materials was 
implemented by BAFA (Germany’s export co ntrol agency) with the assistance of 
national experts from Member States in Albania, Bosnia and Herzegovina, China, 
Croatia, the former Yugoslav Republic of Macedonia, Montenegro, Morocco, Serbia, Ukraine and the United Arab Emirates. A pilot programme in Russia was also conducted. The bulk of the activities of the centres in Moscow and Kiev on 
redirecting scientists' work continued to be  devoted to managing research projects. A 
programmatic approach has been elaborated to focus funding parties’ investment in 
areas that meet the highest priority non-proliferation obj ectives, e.g. counter 
terrorism, global security, nuclear sa fety, bio-safety and bio-security. 
Avian Influenza crisis 
Because of the highly pathogenic nature of  the H5N1 virus, responsible for human 
casualties and huge economic losses, the EU has continued its st rong response. The 
Commission has been a driving force at th e front of a consensual international 
answer. In 2007, the EU contributed with an additional commitment of €94 million 
to the fight against the cons equences of the disease and to a sound preparedness for a 
possible pandemic, raising the total EU c ontribution since the Be ijing conference of 
January 2006 to €413 million. The Commission was a co-organizer of the International Ministerial Conference of Ne w Delhi in December. It remains by far 
the major contributor to the Avian and Huma n Influenza facility, a fund administered 
by the World Bank that aims to fund nationa l action plans against AI in Asia, Eastern 
Europe and Mediterranean countries. 
International cooperation against drugs 
EC (and EU) cooperation with third countri es against drugs is a component of a 
broader policy. This includes political and policy dialogue (most often in the form of 
"Drug Troikas"), active participation in multilateral discussions and arrangements 
(Commission on Narcotic Drugs, Dublin Group and Paris Pact), and trade preferences linked to good governance, inter alia , in the area of drugs. This 
cooperation remains a very important area of  development assistance. The total stock 
of EU projects stands at nearly € 760 million, 45 % of which are funded by the 
Commission and the rest  by Member States. 
EN 108   EN Afghanistan has continued to replace the Ande an region as the main recipient of EC 
development assistance in the area of dr ugs. Most efforts remain focused on rural 
reconstruction and alternative development in  opium-growing regions, together with 
initiatives to strengthen the justice and police systems, as well as border 
management. These efforts are complemented by support to regional cooperation between Afghanistan and its ne ighbours against the diversio n of chemical precursors. 
About half of the bilateral efforts geared  to the Andean countries are devoted to 
Colombia, with the rest divided somewhat evenly between Bolivia and Peru. All of 
them remain in the area of alternative de velopment. They have been complemented 
by two Andean-wide regional initiatives, one against synthetic drugs (launched this 
year); and the other against the diversion of precursors. Efforts increasingly focused 
on demand reduction, even if supply contro l components remain important, continue 
under three regional programmes in the fo rmer Soviet Union: BUMAD (Belarus, 
Ukraine, Moldova Anti-Drugs), SCAD (Southern Caucasus Anti-Drugs) and 
CADAP (Central Asia Drug Action Progra mme). Some components of the Border 
Management for Central Asia program me and the European Union Border 
Assistance in Moldova and Ukraine al so seek to reduce drug trafficking. 
All of these bilateral and regional effort s continue to be complemented by several 
inter-regional projects: demand and harm-re duction projects in the Muslim world in 
Asia and Latin America and the Caribbean, supply reduction initiatives (on the new challenge of drug trafficking from Latin Am erica and the Caribbean to West Africa) 
and projects to influence the policy directi on of the Paris Pact Process. Of significant 
interest as regards policy formulati on are the support of a NGO global forum on 
drugs and the financing of an  expert group for a more evidence-based assessment of 
the global drugs policies since the Special Session of the UN General Assembly on 
Drugs in 1998. 
EN 109   EN Table 24 IFS-Sector   Breakdown by sector of external aid financed on the General Commission Budget 
managed by EuropeAid in 2007
Commitments ( € million)
Payments ( € million)
Bilateral and Multilateral ODA/OA (Eu ropeAid only)9.0 M€, 34%
15.0 M€, 56%2.6 M€, 10%Social Infrastructures: Education, Health,
Water, Government & Civil Society,
Other 
Economic Infrastructures & Services :
Transport, Communications, Energy,
Other services
Production : Agriculture, Forestry &
Fishing, Industry, Mining & Construction,
Trade & Tourism
Multisector/Crosscutting : Environment,
Other
Budget Support, Food Aid, FoodSecurity
Others - Including Emergency
assistance, reconstruction relief
0.7 M€, 4%
17.5 M€, 96%Social Infrastructures: Education, Health,
Water, Government & Civil Society,
Other 
Economic Infrastructures & Services :Transport, Communications, Energy,
Othe r se rvice s
Production : Agriculture, Forestry &Fishing, Industry, Mining & Construction,
Trade & Tourism
Multisector/Crosscutting : Environment,
Other
Budget Support, Food Aid, Food Security
Others - Including Emergency
assistance, reconstruction relief
 
EN 110   EN Table 25 IFS-Geo   Breakdown by region of external aid financed on the General Commission Budget 
managed by EuropeAid in 2007
Commitments ( € million)
Payments ( € million)
Bilateral and Multilateral ODA/OA (Eu ropeAid only)15.0 M€, 56%
0.0 M€, 0%5.2 M€, 20%6.3 M€, 24%
ENPI East ENPI South
Asia Latin America
ACP Regional
2.5 M€, 14%
0.3 M€, 2%
3.2 M€, 18%
0.9 M€, 5%
2.4 M€, 13%9.0 M€, 48%
ENPI East ENPI South
Asia Latin Amer ica
ACP Regional
 
€ millions 2007
Commitments          26.57    
Payments          18.20    
Bilateral and Multilateral ODA/OA (EuropeAid only)Table 26 IFS-Total   External aid financed on the General 
Commission Budget managed by EuropeAid 2007
 
EN 111   EN 2.6. Nuclear Safety 
The EU continued its support for enhanced  nuclear safety in Russia and Ukraine 
under the TACIS Nuclear Safety Progr amme. The main challenges include 
strengthening the regulatory au thorities, promoting an effective nuclear safety culture 
at all levels and developing the management of spent fuel and radioactive waste. The 
Commission paid the second part of the thir d pledge (€49.1 million) of the New Safe 
Confinement project in Chernobyl. The Ar menian Medzamor power plant, which 
seems likely to continue operating for some years in view of the economic situation, 
remains a matter of concern. As the overall safety situation still has to be improved 
according to IAEA standards, the EU con tinued to provide on-site assistance and 
support to the Armenian Regulatory Au thority. Since 1 January the TACIS 
programme has been replaced by the Instrument for Nuclear Safety Cooperation (INSC). The Instrument for Stability is also relevant for nuclear safety, especially for 
combating illicit trafficking of nuclear a nd radioactive materials in former Soviet 
Union countries, assistance in export c ontrol of dual-use goods and improving 
chemical, biological, radiological and nucle ar (CBRN) materials trafficking control. 
EN 112   EN Table 27 NSI-Sector   Breakdown by sector of external aid financed on the General Commission Budget 
managed by EuropeAid in 2007
Commitments ( € million)
Payments ( € million)
Bilateral and Multilateral ODA/OA (Eu ropeAid only)1.1 M€, 1%
77.0 M€, 99%Social Infrastructures: Education, Health,
Water, Government & Civil Society,
Other 
Economic Infrastructures & Services :
Transport, Communications, Energy,
Other services
Production : Agriculture, Forestry &
Fishing, Industry, Mining & Construction,
Trade & Tourism
Multisector/Crosscutting : Environment,
Other
Budget Support, Food Aid, FoodSecurity
Others - Including Emergency
assistance, reconstruction relief
0.7 M€, 1%
55.6 M€, 99%Social Infrastructures: Education, Health,
Water, Government & Civil Society,
Other 
Economic Infrastructures & Services :Transport, Communications, Energy,
Othe r se rvice s
Production : Agriculture, Forestry &Fishing, Industry, Mining & Construction,
Trade & Tourism
Multisector/Crosscutting : Environment,
Other
Budget Support, Food Aid, Food Security
Others - Including Emergency
assistance, reconstruction relief
 
EN 113   EN Table 28 NSI-Geo   Breakdown by region of external aid financed on the General Commission Budget 
managed by EuropeAid in 2007
Commitments ( € million)
Payments ( € million)
Bilateral and Multilateral ODA/OA (Eu ropeAid only)77.0 M€, 99%1.1 M€, 1%
ENPI East ENPI South
Asia Latin America
ACP Regional
0.7 M€, 1%
55.6 M€, 99%ENPI East ENPI South
Asia Latin Amer ica
ACP Regional
 
€ millions 2007
Commitments          78.01    
Payments          56.27    
Bilateral and Multilateral ODA/OA (EuropeAid only)Table 29 NSI-Total   External aid financed on the General 
Commission Budget managed by EuropeAid 2007
 
EN 114   EN 2.7. Humanitarian Assistance65 
Through its Directorate-General for Human itarian Aid (DG ECHO) , the Commission 
provides humanitarian assistan ce to the victims of natura l or man-made disasters in 
third countries, on the sole ba sis of humanitarian needs.  This year, the Commission's 
needs-based response to humanitarian cris es in over 60 countri es was channelled 
through 85 funding decisions, totalling €769 milli on. In contrast to previous years, 
there were no major new crises in the fiel d of humanitarian aid, whether they be 
natural disasters or complex emergencie s. Nevertheless, natural disasters, 
accentuated by climate changes, continue to increase both in frequency and severity, 
affecting more often and more severe ly already vulnerable populations. 
This year, natural disasters created seri ous damage: earthquakes in Peru and in 
Solomon Islands; floods in Africa, Bangl adesh, India, Indonesia, Nepal, North 
Korea, Vietnam and in Latin America; cy clones in Nicaragua (Felix), Mozambique 
(Favio) and in Bangladesh (Sidr); Hurricane Dean in the Caribbean; tropical storm in 
Haiti and Dominican Republic (Noel)  and droughts in Honduras, Moldova, 
Paraguay, Kenya, Somalia and the Sahel region. The Commission had to respond 
speedily to help thousands of suffering peopl e, sometimes already affected by crises. 
In terms of "man-made" crises, no new co mplex crisis emerged, but the Commission 
had to manage worsening humanitarian si tuations, sometimes protracted complex 
emergencies already existing in previous years. Some examples are Sudan, where the situation remains very worrying: violen ce and extortion towards the civilian 
population in conflict-affected Darfur cont inues and have again forced many to flee 
elsewhere in the country or to take ref uge in neighbouring countries. At the same 
time, there are still clear humanitarian needs in Southern Sudan, which slowly 
recovers from over two decades of war.  Floods affecting th e north of Sudan, 
including Darfur and Southern Sudan, in Ju ly have further compounded the situation. 
In the Democratic Republic of Congo, the fi ghting and tensions in  the East of the 
country restarted during the summer, particul arly in the North and the Southern part 
of Kivu, causing there as well num erous population movements and new 
humanitarian needs. Somalia was also f aced with both natural disasters (droughts) 
and violence, forcing many to leave their homes. 
The Commission pays particular attention to ‘forgotten’ crises, i.e. situations where 
major humanitarian needs receive little atte ntion from donors (reflected in the level 
of official aid received) and low media c overage. This year, the following forgotten 
crises were identified: (i) Sahrawi refuge es in Algeria, (ii)  Chechnya and the 
neighbouring republics affected, (iii) the population affected by unrest in Kashmir 
and Jammu, India, (iv) the pe rsisting crises of the Bhutanese refugees as well as the 
Maoist insurrection in Ne pal, (v) the population affected by the conflict in 
Burma/Myanmar both within the country itself as well as in its neighbouring 
countries and (vi) the population affected by the crisis in Colombia  as well as in the 
neighbouring countries. These forgotten cris es received nearly 13% (€60.7 million) 
of the initial operational budget to respond to their forgotten needs. Except for 
Colombia, these crises were already id entified as "forgotten crises" in 2006. 
                                                
 
65 For more details on the Commission's interventions in the field of humanitarian assistance, please refer 
to the relevant Annual Report ( http://ec.europa.eu/echo/information/publications/annual_rep_en.htm ) 
and Financial report ( http://ec.europa.eu/echo/statistics/echo_en.htm ) 
EN 115   EN In line with the Commission's communication66 which has established the principle 
of "one instrument per polic y area" in order to improve the efficiency of Community 
action as well as the Comm ission's communication on the financial perspectives 
2007-2013, it was decided that the responsibilit y for the management of food aid be 
transferred from Directorate General Eur opeAid to DG ECHO, with effect from 1st 
January. DG ECHO manages the food ai d budget within the framework of its 
mandate to save and preserve life during emergencies and their immediate aftermath. 
Main interventions in 2007, by region 
In 2007, the Commission allocated a total of  €422 million (i.e. 55% of its total final 
budget) to ACP countries, with the larges t funding for Sudan w ith a total of €110.45 
million, and the Democratic Republic of Congo (€50 million). The other major interventions in Africa which required mo re than €20 million of funding were Chad 
(€30.5 million), Zimbabwe (€30.2 million), Sahel (€25.5 million), Uganda (€24 
million) and Ethiopia (€20 million). In No rthern Caucasus, the Commission pursued 
its funding to the victims of the Chechnya conflict in approvi ng a total amount of € 
20.8 million. 
In the Middle East, the Commission pur sued its response to the dramatic 
deterioration of the humanitarian situation, caused by the escalation of tension in the 
Palestinian Territories and the fighting in a Palestinian refugees' camp, by providing 
more than €88 million of humanitarian aid. Th is aid permitted to cover the needs of 
the most vulnerable populations of the West  Bank and Gaza Strip and of Palestinian 
refugees in Lebanon, Jordan and Syria. Finally, this amount was also used to respond to the internal crisis of Iraq, including refugees in neighbouring countries. Finally, in 
Asian countries, €27 million were addressed to vulnerable people affected by the Afghan crisis and natural hazards in Af ghanistan, Iran and Pakistan, €19 million 
were allocated to help vulnerable populat ions in Myanmar and Burmese refugees 
along the Thai-Myanmar border, €17 million for the victims of the conflict in Sri 
Lanka, as well as €19.5 million to South As ian countries – without taking into 
account DIPECHO
67 funding – for the recovery of  communities affected by floods. 
€31 million was allocated in humanitarian assistance to Latin America, €12 million 
of which for the victims of the Colombia c onflict and the rest in response to several 
natural disasters, such as the earthquake in Peru (€8 million) and hurricane Felix in Nicaragua (€6 million). 
Humanitarian policy 
On a policy level, an important milestone was reached with the Commission's 
proposal for a European Cons ensus on Humanitarian Aid
68 which was adopted by 
Member States, the European Parliament and the Commission in December, in recognition of the increasi ngly challenging environment for humanitarian response 
and to drive forward a more effici ent and coordinated EU approach. 
                                                
 
66 COM(2004)101 
67 The "Disaster Preparedness ECHO" programme. See: 
http://ec.europa.eu/echo/fi eld/dipecho/index_en.htm  
68 Based on the Communication Towards a European Consensus on Humanitarian Aid  adopted in June. 
COM(2007)317 final 
EN 116   EN Disaster preparedness 
In several regions of the world the Co mmission supports disaster preparedness 
interventions. The Commission continued to support programmes69 launched in 2006 
(South East Asia, Central As ia and Central America) a nd new funding was allocated 
to other regions for a total of €19.5 million. In the Caribbean, the 6th Action Plan (€4 
million) was launched with priorities to re inforce DIPECHO in Haiti, to consolidate 
Disaster Preparedness in urban settings, to  include more English-speaking Caribbean 
countries plus countries new to DIPECH O, such as Suriname or Guyana. New 
DIPECHO Action Plans were also adopted for South Asia (€7.5 million), including 
for the first time Afghanistan, Central America (€1.5 million) and South America 
(€6.5 million), focusing on the Andean Commu nity and Venezuela.  The Commission 
aims to integrate and mainstream disaster  preparedness in its relief interventions, 
when and where appropriate, and continues to  work with other relevant stakeholders 
for integration of disaster risk reduc tion (DRR) in sustainable development 
interventions. 
Budget 
Application of the needs based principles lead to the following geographical division  
of the funds for humanitarian aid committed in 2007, compared to 2006: 
TABLE 30: HUMANITARIAN ASSISTANCE IN  2007 ('000 €)  2006  
Unit/Region Hum. 
aid Food 
aid Dipecho EDF Total % Total % 
A/1: Africa, 
Caribbean, Pacific 220 910 169 650 4 000 28 200 422 760 55.0% 322 060 48.0% 
All Africa    2 000 2 000    
Horn of Africa 106 000 106 450  5 500 217 950  161 050  
Great Lakes 61 500 24 000  4 000 89 500  84 050  
West Africa 32 600 14 000   46 600  56 150  
Caribbean, Pacific 5 810 2 000 4 000 4 500 16 310  1 610  
Southern Africa, Indian 
Ocean 15 000 23 200  12 200 50 400  19 200  
A/2: New Independent 
States, Middle East, 
Mediterranean 93 290 31 607   124 897 16.2% 177 900 26.5% 
NIS (Chechnya, 
Caucasus, Tajikistan …) 22 500 3 307   25 807  33 000  
Middle East, 
Mediterranean 70 790 28 300   99 090  144 900  
                                                 
69 Notably in the DIPECHO programme 
EN 117   EN A/3: Asia & Latin 
America 127 801 14 065 15 500  157 366 20.5% 124 541 18.6% 
Asia 96 801 13 000 7 500  117 301  99 941  
Latin America 31 000 1 065 8 000  40 065  24 600  
Thematic funding + 
grants 24 000 4 900   28 900 3.8% 20 500 3.1% 
Technical Assistance 
(experts & field offices)  25 400    25 400 3.3% 19 000 2.8% 
Use of re-assigned 
revenue 307    307  817  
Support Exp. (audits, 
evaluation, information, 
etc.)     8 900 1.2% 6 189 1.0% 
TOTAL 491 708 220 222 19 500 28 200 768 530 100% 671 006 100% 
Table 31 Relative share of regions  and support activities in funding70: 
   
   
 2007 2006 
ACP 55% 48% 
NIS, Med. 16% 27% 
ALA 21% 18% 
Other 8% 7% Humanitarian Aid 2007
NIS, Middle East, 
Medit.16,2%Asia, Latin 
America
20,5%Technical 
assistance
3,3%
ACP countries
55,0%Thematic funding, 
grants
3,8%Support 
Expenditure, use 
of reassigned 
revenue
1,2%
 Total 100% 100% 
 
2.8. Macro-financial assistance 
After consulting the Economic and Fina ncial Committee and securing a Council 
Decision, the Commission implements ma cro-financial assistance (MFA) in 
association with support programmes of the IMF and the World Bank. MFA 
incorporates a set of principles which underline its exceptiona l character (ad hoc 
Decisions from the Council), its complementarities to financing from international financial institutions and its macroeconomic conditionality. It is an instrument designed to help countries experiencing se rious, but generally short-term macro-
                                                
 
70 Humanitarian aid, food aid and disaster prepared ness budget lines and Europ ean Development Funds as 
far as ACP countries are concerned 
EN 118   EN economic imbalances (balance of payments  and fiscal difficulties). In close 
coordination with IMF and World Bank pr ogrammes, MFA has promoted policies 
that are tailored to specific country needs with the overall objective of stabilising the 
external and internal financ ial situation and establishing  market-oriented economies. 
In 2007, MFA authorisations of new operations totalled €125 million. This included a grant to Moldova of up to €45 million, of which a first tranche of €20 million was 
disbursed
71. Lebanon received exceptional EC fi nancial assistan ce of up to €80 
million (€50 million in the form of loans and €30 million in the form of grants)72. 
3. FEATURE  ARTICLES 
The challenge of reconciling MDGs a nd the fight against climate change 
“2007 was a great year for the fight agai nst climate change”,  noted UN Framework 
Convention on Climate Change executive s ecretary Yvo de Boer. Indeed, in 2007, 
global public opinion and the scientific and political communities united and mobilised support to address the glob al challenge of climate change. 
The latest scientific findings of Nobe l Prize winner Inter- governmental Panel on 
Climate Change (IPCC)
73 demonstrate convincingly that  climate change will produce 
negative consequences around the world. Food security, productive infrastructures, 
and many densely populated living areas are un der direct threat in  the medium term; 
as well as the very survival of several island states. Unless effective countermeasures are taken, climate change could reverse progress towards the MDGs. However, the 
Stern Review (2006) on the Economics of Climate Change
74 emphasised that the 
efforts to avert global climate change and those aiming to promote growth and 
development are not mutually exclusive. It  is argued that the cost of inaction far 
outweighs the volume of investments needed to mitigate climate change (i.e. damage to the global economy could range from 5- 20% of global annual GDP), early action 
could reduce economic losses to just 1% of global annual GDP. 
The UN Framework Convention on Climat e Change (UNFCCC) and the Kyoto 
Protocol are the established frameworks for multilateral negotiations on climate change. The Bali Conference in December agreed on an action plan for detailed negotiations with a view to reaching agreement by December 2009 on a climate 
regime for the reduction of global greenhouse gas emissions to take effect in 2013. 
The negotiations on the core subject of emission reduction (“mitigation”) will, inter 
alia, cover policy approaches related to re ducing emissions from deforestation and 
forest degradation. The Bali Action Plan al so addresses enhan ced action on climate 
adaptation including funding – as well as reinforced technol ogy development and 
                                                
 
71 Council Decision 2007/259/EC of 16 April 2007 
72 Council Decision 2007/86 0/EC of 10 December 2007 
73 http://www.ipcc.ch/ipcc reports/ar4-syr.htm  
74 http://www.hm-
treasury.gov.uk/independent_reviews/stern_review_economics_climate_change/sternreview_index.cfm  
EN 119   EN transfer. It is to be noted that the annua l cost of adaptation in developing countries 
has been estimated by various instituti ons at between 16 to 86 billion USD75. 
The G8 also pays particular attention to  the international climate change agenda. 
Already in 2005, the Gleneagles plan of action focused primarily on (energy) 
mitigation. The G8 Heiligendamm Summit of June 2007 emphasised the importance 
of adaptation and the reduction of CO² emissions – which are exacerbated by 
increased deforestation and la nd-clearing activities – as priority areas for cooperation 
with developing countries in the area of climate change. This work will be taken 
further by the Japanese G8 Presidency in 2008. 
The cross-cutting nature of climate change: need for mainstreaming 
Given that climate change cuts across a ra nge of themes addressed by our external 
action, several EU policy processes and cooperation activities – which may not be 
explicitly labelled “climate change” – a ddress climate change and its negative 
consequences nonetheless. This is true in  particular for polic ies related to the 
forestry, energy or rural development s ectors, for example. Moreover, several 
Country Strategy Papers, establishing th e multi-annual framework for cooperation, 
foresee interventions related to climate cha nge. The challenge is now to ensure that 
climate change is consistently taken into account in these instruments, with the aim 
of mainstreaming climate change in all development activities76. Work in this area 
builds on the 2004-2008 EU Ac tion Plan on Climate Change and Development that 
the Commission and Member States are im plementing together. The Action Plan 
covers all developing countries. First a nd foremost the Action Plan promotes 
mainstreaming certain aspects of climat e change into deve lopment cooperation. 
These include four strategic areas: policy dialogue; mitigation; adaptation and capacity-building. In 2007, the first finalis ed progress report on the EU Action Plan 
gave important pointers towards improving the mainstreming effort.
77 A specific 
instrument of key importance is the th ematic programme for the environment and 
sustainable management of natural resources including en ergy (ENRTP), established 
under the Development Cooperation Instrume nt, with global scope. Some of the 
current and planned activiti es supported by the European Commission are presented 
below. 
Engaging in bilateral and regiona l climate change partnerships 
Climate change was at the top of the age nda of each and every recent international 
summit. In the wake of the Bali meeting, the EU engaged with the authorities of 
more than 40 key countries to share it s views. By leading the international 
community against climate change; by pushi ng for ambitious adaptation, increasing 
technology cooperation, access to carbon ma rkets and combating deforestation, the 
EU is investing in protecting the MDGs  from the threat of climate change. 
                                                 
75 The UNFCCC estimates that annual adaptation costs in developing countries could be between $16 and 
$80 billion. The World Bank's estimates are in the range of $10 to $ 40 billion, Oxfam's are around $ 50 
billion, and UNDP's are about $86 billion. 
76 See also chapter 2.3 under Environment 
77 The progress report recommends an  enhanced dialogue with partne r countries on climate change, 
improved coordination among EU donors and clear assignment of responsibilities, and dedicated 
resources for the implementation of mainstreaming activities and the Action Plan. 
EN 120   EN Bilateral relations between the EU and its international partners include a chapter on 
climate change encompassing political dial ogue both at technical as well as at the 
highest political levels. W ith India and China for instance, whose economies are 
booming, and where environmental sustainability  is therefore crucial, cooperation is 
largely about sharing knowle dge and technology. In the EU-India Joint Action Plan 
of 2005, both parties recognise the urgency of  dealing with climate change, and the 
cross-cutting nature of its impacts. Actions undertaken  include cooperating in the 
fields of energy (including joint worki ng groups on energy, specific studies on bio-
fuels, eco-design, carbon capture and stor age), on the consequences of climate 
change (e.g. through studies on the impacts of  melting glaciers in the Himalayas and 
on measuring greenhouse gas emissions in I ndia). Similar forms of cooperation are 
being developed with China. For example,  a joint project to design a near-zero 
emission coal power plant has recently attracted wide poli tical attention. 
The Commission is also expa nding its dialogue and coopera tion on climate change at 
regional level. The Africa-EU Partnership on Climate Change was launched at the Africa-EU Summit in Lisbon in December. It will provide for dialogue, cooperation 
and exchange on specific actions to res pond to climate change and will be an 
effective channel for holding deliberati ons on a shared Africa-EU vision. The 
Partnership will consist of two pillars: climate change and land degradation (desertification). A similar set of instrument s tailored to the regional specificities is 
under consideration with the Latin American countries. 
The Africa-EU Energy Partnership – also  launched in Lisbon – will provide a 
framework for political dialogue between Africa and the EU on energy issues, with 
an important link to climate change. The Partnership will stimulate the energy cooperation between EU and Africa at vari ous levels, in part icular as regards 
improving access to modern, affordable and sustainable energy services, energy 
security and expertise to adapt to and m itigate climate change within the energy 
sector. The Energy Partnership will be supported by several existing and new funding instruments that will promote sustai nable and climate friendly investments.  
Allying with the poorest countries to address the effects of climate change 
In September, the EC launched the Global Climate Change Alliance (GCCA).
78 This 
initiative specifically targ ets poor developing countries most vulnerable to climate 
change, in particular Least Develope d Countries (LDCs) and Small Island 
Developing States (SIDS). The GCCA aims to deepen political dialogue, toward a 
shared vision for a post-2012 UN climate change agreement, and to step up cooperation in the following priority area s: adaptation, reducing emissions from 
deforestation, participation in the global ca rbon market, disaster risk reduction and 
integrating climate change into poverty re duction efforts (more details in the box) . 
Global Climate Change Alliance: key areas for increased cooperation 
Support for adapting to the ef fects of climate change : The GCCA will for example 
support the implementation of national adaptation action plans as well as innovative 
research solutions for adaptation. 
                                                 
78 The GCCA is also a key element of the external relations pillar of the Green Paper on Adaptation in 
Europe, adopted in June 2007. 
EN 121   EN Reducing emissions from deforestation : In LDCs, 62 % of total emissions originate 
in land-use change, primarily deforest ation. The GCCA will support innovative 
solutions to avoid deforestation as well as expand existing initiatives such as the 
FLEGT initiative. 
Enhancing participation in the global carbon market through the Clean 
Development Mechanism (CDM):  The CDM has the potentia l to bring significant 
foreign investment to poor countries. So far, however, the poorest countries have 
attracted only few CDM inve stors. By building capacities and providing technical 
support, the GCCA will try to promote a more equitable geogra phic distribution of 
CDM projects. 
Promoting Disaster Risk Reduction : There has been an increase of natural disasters 
linked to extreme weather conditions. The GC CA will assist the most disaster prone 
countries in building their capacities to prepare for, mitigate and prevent natural 
disasters. 
Integrating climate change in to poverty reduction efforts : Climate change needs to 
be integrated or "mainstreamed" into pov erty reduction strategies to ensure 
sustainability. Firstly, the GCCA will support partner countries in their 
mainstreaming efforts. Secondly, the Commi ssion is identifying the means to address 
climate change mainstreaming systematically at the occasion of the mid-term review 
of Country and Regional Strategy papers for the purpose of mainstreaming climate 
change fully into all c ountry and regional strategies by 2014 – when the new 
programming cycle starts. 
The Commission will launch this initiati ve with €60 million, but much larger 
amounts are needed to address the clim ate change challenge. Therefore the 
Commission is looking towards the worl d’s donor community, particularly EU 
Member States, to contribute. Sweden wa s the first to pledge €5.5 million during the 
Bali climate change negotiations. The GCCA funding mechanism will be designed to 
complement existing climate related initiatives, while responding directly to the 
needs of the countries concerned.  
Policy areas strongly linked to climate change  
Energy 
Energy production is a key chapter of both the mitigation and adaptation agendas. 
The Global Energy Efficiency and Re newable Energy Fund (GEEREF), budgeted 
under ENRTP, is designed to provide risk cap ital to support projects in the area of 
renewable energy and energy efficiency th rough the development of regional sub-
funds throughout the world. The fund will be launched with over €100 million up to 
2010 with EC contributing €80 million. It is expected to mobilise €300 million from the private sector with up to €1 billion po ssible in longer-term. The ENRTP will also 
support developing countries in improving th eir management of energy resources, 
including renewable energy and redu ction of gas flaring and venting
79. In 2007, the 
Energy Facility – a specific cooperation Inst rument to promote energy services to 
poor rural populations – awarded more than  €88 million to renewable energy projects 
                                                 
79 see also Chapter 2.3 under Environment 
EN 122   EN in the African, Caribbean and Pacific States, contributing to a carbon-free 
development path. 
Water & Agriculture  
Climate change will seriously threaten  agriculture, food security and rural 
livelihoods, implying production and income losses in developing countries. Its 
likely effects will differ across regions, posi ng additional risks re lated to movement 
of populations seeking better living conditions. This will require a resp onse in terms 
of adaptation of crops, livestock and farm ing practices to new climatic situations. 
This involves agricultural research and i nnovation at the crop/livestock level as well 
as at the level of farm systems. The EC is a main contributor to the work of the 
Consultative Group on International Agricult ural Research (CGIAR). It will support 
the new CGIAR research programme specifi cally dedicated to climate change and 
agriculture through the Food S ecurity Thematic Programme. 
In many areas, adaptation will also involve more attention to water management, by 
means of water harvesting tec hniques, irrigation and drai nage. Climate change calls 
for the improved management of risks, for instance through development of less 
volatile farming methods, the creation of sa fety nets, and the wider application of 
(micro) insurance. Insurance applications can significantly reduce the effects of climate related risks, but will require add itional efforts to ensure that the poorer 
segments of the population will be fully taken into account. The EC will provide support to the so-called Global Index Insura nce Facility (€25 m illion), an initiative 
that has been taken with International Financial Corporation (IFC) and the World Bank to expand the use of index insurance in  sub-Saharan Africa, with applications 
in various fields, including agriculture, food security a nd disaster risk reduction. 
Forests  
Deforestation and land-clear ing activities account for ar ound 20% of world wide CO² 
emissions. For developing countries the pr oportion of emissions emanating from 
deforestation is very high. Forests contribut e to the livelihood of almost 90% of the 
1.2 billion of people living in extreme poverty in the world. The fate of forests as a 
cause, cure and victim of climate change  will ultimately affect millions of people 
living in developing countri es, especially those whos e livelihoods depend on them 
for food, medicines, housing, energy and inco mes. Deforestation is  often a result of 
the expansion of agriculture and livestock activities and of  illegal logging, which is 
often encouraged by poor governance and corruption. 
The EC has been for a long time an importa nt supporter of protection and sustainable 
management of forests. Important programme s for the preservation of tropical forests 
have been extended in Brazil, Latin Amer ica and Central Africa. The EU's Forest 
Law Enforcement Governance and Trade (F LEGT) Action Plan aims to improve 
forest governance and stop illegal logging. The Action Plan stresses the key role of the private sector and civil society and blends measures  in producer and consumer 
countries to eliminate illegal  timber from trade with the EU. The cornerstones of 
FLEGT are Voluntary Partnership Agreem ents (VPAs) with producer countries 
suffering from problems of illegal logging and poor governance. VPAs use the influence of EU markets toge ther with development coop eration to improve forest 
management and governance. Malaysia, Indonesia, Ghana and Cameroon have 
EN 123   EN entered negotiations for concluding VPAs . Ecuador and severa l African countries 
(Congo, DRC, Central African Republic, Cote d'Ivoire, Gabon and Liberia) have all 
expressed an interest in pursuing them. Othe rs are likely to join too as experience 
mounts. 
Disaster Risk Reduction 
The number, frequency and the effects of di sasters, in particular climate-related 
disasters, have intensified around the wo rld due to climate change. The EC is 
currently funding Disaster Risk Reducti on (DRR) activities around the globe, at 
country level but also regionally through an ACP-EU Natural Disaster Facility which 
became operational in 2007. In order to stre ngthen its policy base and have a more 
comprehensive approach to DRR, the Co mmission is currently developing a DRR 
strategy for all developing countries, to be  adopted in October 2008. This strategy 
will ensure that synergies between addressing adaptation to climate change and disaster risk reduction are being identifie d and acted upon. DRR is also one of the 5 
pillars of the Global Climate Change Alliance (GCCA). 
INTERCONNECTING AFRICA 
The EU–Africa Partnership on Infrastruc ture: creating and sustaining regional 
infrastructure networks and services 
The inadequacy of infrastructure on the African continent severely constrains 
economic growth and hampers human and social development. Road transport 
accounts for 90% of interurban transpor t but physical links and services are 
inadequate. Rail network coverage is sparse and interconnectivity of networks is low. 
Due to poor interconnection f acilities, intra-African te lecommunications are often 
diverted to the North. Many maritime ports struggle to offer competitive services while inland waterways are poorly integr ated into transport networks. Over 300 
million people – some 42% of Africa’s popul ation – continue to  have no access to 
safe water. Similarly, access to basic san itation is denied to 60% of the population. 
500 million Africans have insufficient access to  electricity, which often encourages 
many to abandon their villages in hope of  a more comfortable life in the capital 
cities. Instead, far too often, migrants wi ll find themselves living in slums and 
degradation. 
An engine for boosting infrastructure networks 
The EU-Africa Partnership on Infrastructure aims to secure the interconnectivity of 
the African continent and its different regions. It is one of the cornerstones of the 
ever-stronger cooperation between Europe and Africa and it will play a key role in the implementation of the Joint EU-Africa Strategy. The Joint Strategy and the associated action plan establish a solid framework for structur ed political dialogue 
and concrete cooperation be tween Africa and Europe. 
The Partnership aims to increase investment in infrastructure and delivery of related 
services substantially. It focuse s on trans-boundary, regional and national 
infrastructure in the widest sense: transpor t networks, water and en ergy infrastructure 
as well as telecommunication networks an d infrastructure-related services. It 
provides a common and comprehensive vision  of the needs of the continent and 
coordinates actions that enhance in frastructure networks across Africa. 
EN 124   EN By facilitating continental interconnectivity and strengthening regional networks, the 
Partnership responds to the development goals of the African Union and its New 
Economic Partnership for Africa’s Development (NEPAD). 
Interconnectivity will enhance integrati on, trade, growth and reaching the MDGs  
By enhancing the infrastructure networ ks the Partnership will secure the 
interconnectivity of the Afri can continent and of its di fferent regions to promote 
regional integration. These inte rconnected networks will thus facilitate Africa’s 
participation in global trade. The Partners hip is a joint EU-Africa framework that 
will help improve and increase the infrastr ucture stock in the continent. Improving 
infrastructure, its related services and th e regulatory frameworks will contribute to 
sustainable economic growth, promote comp etitive trade, crea te employment and 
decent work, foster regional integr ation and ultimately reduce poverty. 
Rapid, sustained and broad-ba sed growth is essential.  A better inter-connected 
Africa, internally and with the rest of the world, will create larger markets and thus facilitate Africa’s reach of  the MDGs. According to some estimates, a one percent 
increase in the infrastructure stock c ould add one percent to GDP growth. This 
demands a commitment to integration within coherent regional trade agreements and harmonization of infrastructure polic ies and regulatory frameworks. Good 
communication and use of appropriate technol ogies can accelerate the process. This 
is where EU and Africa will work together within the Partnership on infrastructure. 
What are Africa’s infrastructure needs? 
In 2005, the Commission for Africa made an es timate of the continent's infrastructure 
needs. It reported that Africa needs an additional US$ 20 billion a year investment over and above current expenditure levels. To fill this gap, Official Development Assistance will not be enough and active participation of private sector and 
development financial institutions will be required. The purpose of two major 
ongoing studies is to define th e priorities for investment: the African In frastructure 
Country Diagnostic (AICD) study will assess th e extent to which countries can scale 
up infrastructure expenditure; the AU-NE PAD Medium and Long Term Framework 
Study (MLTSF) will help to prioritise regional and continental projects. 
Financing the Partnership 
The Partnership draws upon several financ ial mechanisms – a Trust Fund, Regional 
and National Programmes and a programme fo r the start-up phase of the Partnership.  
EU Infrastructure Trust Fund for Africa – a new and innovative financing resource
 
The EU Infrastructure Trust Fund for Africa is an innovative co-financing instrument 
of the EU-Africa Partnership on Infrastructu re. It brings together the EC, Member 
States, the European Investment Bank (E IB) and European Development Financing 
Institutions to pool their respective effo rts and resources to co-finance relevant 
projects directly. The Trust Fund provides grants that will attract and leverage 
additional funds from other donors and privat e investors. These grants will cover (i) 
interest rate subsidies; (ii) technical assistance, including preparatory work for 
eligible projects such as environmental im pact assessments, proj ect supervision and 
targeted capacity building;  (iii) direct grants for project components with a 
EN 125   EN substantial demonstrable social or envir onmental benefit; and (iv) initial-stage 
funding of insurance premiums necessary to  ensure the launch of infrastructure 
projects. 
In the first six months, the Trust fund is  already endowed w ith €108.7 million from 
the EC, and €27 million from contributing Me mber States. In addition, the EIB and 
other donors could commit resources in ex cess of €250 million. A Secretariat, hosted 
by the EIB, will ensure, inter alia , the visibility of the Trust Fund operations and 
provide an information access point for all stakeholders. 
To date, three projects ha ve been already approved: 
• The East African Submarine Cable System (EASSy): a €173 million project 
financed with both public and private f unds, to construct and operate a 10,000 km 
fibre optic submarine cable that will pr ovide broadband connection to the Eastern 
part of Africa. With a c ontribution of €2.6 million for the hiring of a specialised 
team to manage this highly technical venture, the Trust Fund leverages an 
additional funding of over €25 million fr om the contributing financiers (EIB, 
KfW, AFD), allowing the successful completion of the EASSy project. 
• FELOU Hydroelectric System: the Trus t Fund will provide €10 million as an 
interest rate subsidy, leveraging an a dditional €33 million from the EIB. These 
funds will support the construction and operation of a hydropower plant on the 
Senegal River. This project, estimated at €102.5 million, will improve access to energy services in three c ountries (Mali, Senegal, and Mauritania), improving 
their energy supply and security. 
• For the Ethiopia-Kenya Power System s Interconnection, the €550,000 provided 
by the Trust Fund will leverage an additional contribution of over €350,000 from the KfW and the AFD. These funds will a llow the completion of a feasibility and 
environmental impact assessment study, estimated at over €1.5 million. 
Regional and national programmes
 
The EU Africa Partnership on Infrastructure  will also draw upon resources from the 
10th European Development Fund (EDF). Based on current funding figures, 
allocations to infrastructure could in crease from €3.75 billion (9th EDF, 2002-2007) 
to approximately €5.6 bill ion (10th EDF, 2008-2013). A substantial proportion of 
this will finance the Partnership operations. 
Support to the start-up phase of the Partnership  
Several actions that support the infrastructure AU Programme include: 
• €55m – Capacity Building Programme for AU including resources for NEPAD's 
Infrastructure Short Term Action Plan (i-STAP); 
• €10m – Energy Facility supporting capacity  building to African Power Pools and 
the African Forum of Utility Regulators; 
• €20m – Water Facility and other instru ments supporting projec t preparation in 
African trans-boundary river basins; additional support to  transboundary basins is 
EN 126   EN also provided in partne rship with AMCOW and through the African Water 
Facility; 
• € 18 million – River Nile Basin Initiative support; 
• €6 million – Telecom sector regulatory reform; 
• a €10m – relevant preparatory AU actions and studies in transport, energy and 
ICTs financing support programme; 
The Principal Partners – the Africa n Union and the European Commissions  
The African Union Commission – its vision  
Interconnecting the African continent is seen as key for regional integration, which is 
considered by the AUC as a crucial catalys t of Africa’s Renaissa nce. The AUC aims 
to reach this fundamental objective through harmonization of infras tructure policies, 
strategies as well as legal and regulatory frameworks. Increasing regional integration 
within the framework of the Partnershi p will help the AUC mobilizing resources 
more effectively in order to  support the realisation of Africa’s development through 
its Regional Economic Commun ities and Member Countries. 
The European Commission brings valuable experience in developing infrastructure 
networks  
The EU has a long-standing experience of working with infrastructure programmes 
in individual African countries. The EU al so has extensive expe rtise to share with 
Africa from its experience of developing Trans-European Networks (TENs) of 
regional infrastructure for achieving economic  growth and regional integration. The 
EU has developed principles that (i) deliver a rigorous an d clear methodology for 
identifying priority projects and (ii)  build consensus among countries on the 
harmonisation of regulatory frameworks. Such knowledge will enrich the AU-EU dialogue. 
The EU-Africa Partners hip on Infrastructure is a valuable complement to the long-
term attention given by the European Uni on to the infrastructure development in 
Africa: only in the years 2005 and 2006 (accord ing to estimates of the Infrastructure 
Consortium for Africa) the European Union committed more that €5 billion for 
interventions in the infrastructure field (which includes €1.4 billion for water and 
sanitation projects, €1.9 billion for energy projects and €2.3 billion for transport projects). 
The Partnership facilitates infrastructure sector sustainability 
The Partnership offers an integrated framew ork in which to coordinate the operations 
of the different stakeholders working at c ontinental, regional and country level to 
enhance each infrastructure sector to attain  and sustain its indi vidual goals. These are 
summarised as follows. 
(i) Transport: the goal is to reduce the cost and improve the quality  of infrastructure 
and services by promoting optimum use of existing multimodal transport systems 
EN 127   EN and support adequate maintenance of the ex isting infrastructure then by completing 
trans-African and regional networks. 
• Better road conditions and fewer road bl ocks and delays at custom posts will 
reduce the journey times and, more impor tantly, journey co sts to ports and 
regional distribution centres. This m eans business and trade between adjacent 
countries will expand. 
• Better roads and services will make farming more profitable. Better access to 
markets will allow poor people to benef it more from growth, to expand their 
farming production and to diversif y into more profitable crops. 
• Better roads and services will increase acc ess to health care facilities, reducing 
lost time due to illness a nd increasing household productiv ity and life expectancy, 
particularly in rural communities. 
(ii) Energy: the goal is to facilitate essential investments in generation and 
transmission of energy based on renewa ble resources, develop cross-border 
connections and grid extensions, and pr omote regional energy agreements that 
improve affordability and access to energy services. 
• Improved access to electricity and the availability of affordable and reliable 
energy services will allow Africa to increase industrial production and to provide 
added value to agricultural products, c ontributing towards economic growth and 
creating opportunities th at will lead to a reduction in poverty. 
• Improved access to electricity will allow pe ople to live with dignity in their home 
towns and villages. They would not be forced to look for more comfortable 
lifestyles elsewhere in capitals where they often end in slums. 
• Improved access to clean energy will lead to  a reduction in the number of people, 
most of whom are women, who suffer or die from indoor air pollution caused by 
wood burning stoves. It will also allow poor  people to spend more time on income 
generating activities because of savings in  time to collect fuel for heating and 
cooking. 
(iii) Water: the goal is to sustain the use of the available (and finite) water resources 
in meeting populations' water and sanitati on needs and improve national and local 
river basin catchment management together  with a larger impact at trans-boundary 
levels. 
• More effective management of water re sources is needed to secure water 
availability threatened by large seasonal fluctuations, periodic cycles of drought 
and flood, as well as by climate change. 
• Nearly all of Africa’s rivers are sh ared between two or more countries. 
Getting countries to cooperate on the use of the resources of their shared rivers 
through water resources management plans is  essential to redu ce vulnerability to 
droughts and to manage floods better. These pl ans, addressing the needs of all users, 
EN 128   EN should also help to strike a balance between  the use of the water resources as a basis 
for livelihood and conservation of the resource. 
• Freshwater is a finite and precious resource essential for sustaining life and human 
development. It was estimated by the Co mmission for Africa that, by meeting the 
MDG for access to water and sanitation in  Africa, 173 million cases of diarrhoea 
would be avoided each year, saving some US$1.6 billion in therapeutic health treatment costs, gaining some 456 milli on productive days and some 99 billion 
school days annually. 
(iv) Information and Communication T echnologies: The goal is to develop 
connections with the continental a nd regional networks while opening the 
telecommunications sector to competition fo r efficient and low-cost provision of ICT 
services. 
• Information & Communication Technologies will come in support of the health, 
educational and governmental sector and while doing so will contribute to 
achieving the social dimension of the MDGs. 
• Poverty is not reduced by money al one, it requires acce ss to knowledge. 
Information & Communication Technologies, which are at the core of knowledge 
generation, distribution and usage. They are also at the foundation of improving 
business practice and efficiency. 
The Way Ahead 
The EU-Africa Partnership on Infrastructure was jointly launched by the African 
Union and European Commission at the AU Headquarters in Addis Abba on 24 
October. The successful launch gave a significant boost to all parties involved in the Partnership, which provided the needed  confidence to move ahead with its 
implementation. Accelerating infrastructure  and service delivery means using the 
working modalities of the Partnership to pr ioritise investments on Africa's strategic 
networks and to scale-up financing by gove rnments, private se ctor and donors. The 
Infrastructure Partnership will then eff ectively contribute to regional integration, 
trade, economic growth and sustaina ble development to reach the MDGs. 
4. RESULTS 
4.1. Project results: Results-Or iented Monitoring (ROM) 
The ROM system provides an overview of ho w the project portfolio is progressing 
towards results. The ROM is based on regular onsite assessments by independent monitors of active and completed projects and programmes: these are given simple 
scores against internationally agreed crit eria (efficiency, effectiveness, potential 
impact, relevance and likely sustainabil ity) using a structured and consistent 
methodology. For each operation, short ex planations and recommendations on 
quality improvements are addressed to all stakeholders, pr oviding important 
information to complement internal mon itoring. This year the system covered 148 
countries and 1630 operations with a to tal value of near ly €10 billion. 
Table 32: Quantitative overview of outputs  
EN 129   EN Overview 
per region TACIS/E
NPIEast MED/ 
ENPI 
South80 Africa
81 Pacific Caribbean Asia Central 
Asia Latin 
America Total 
2007 
N° countries visited 7 24 44 16 18 16 6 17 148 
Million € covered 516 1.407 4.814 227 919 982 93 895 9.853 
 
Results on performance of operations under the project and regional 
programme modality in 2007 
Table 33: Timeline 2002-2007 
2,52,62,72,82,9
2002 2004 2006 2007Relevance
Impact
Sustainability
Average
Effectiveness
Efficiency
 
Between 2005 and 2007 ROM scores have stabilised. Relevance has increased as 
devolution has led to projects  that respond better to loca l needs. Efficiency still 
suffers from problems with the predictabi lity of funds. This may also hinder the 
achievement of results (decreased effec tiveness). In some cases, objectives are 
overambitious. 
Quality measuring during implementation 
Projects monitored under ROM can be grouped into ones that achieve "good" 
performance and "very good" performance (yellow and green) and projects with 
"problems" and /or "major problems" (orange and red). 
Table 34: percentage of projects "on track" 2005-2007  
                                                 
80 Including Yemen.  
81 Including South Africa, but excluding 5 centrally managed projects 
EN 130   EN 5% 4% 4%67%65%67%
18%21% 21%
10% 9% 8%
0%20%40%60%80%100%
2005 2006 2007very good
good
problems
major problem(s)
 
The share of projects with (major) problem s has decreased from 10% in 2005 to 8 % 
in 200782. Analysis of the ROM data reveals several interrelations. The identification 
and design of a project are ke y pre-requisites for its sust ainability after EC support 
has ended. There is a hi gh correlation between owne rship and the effective 
participation of partners during the desi gn phase. A major lesson of ROM is that 
projects need to put more effort into de veloping appropriate tran sfer strategies to 
better ensure the sustainability of positiv e effects and impacts after EC support has 
ended. Risk management during project im plementation also needs more attention. 
Results by ODA sector 
As in 2006, the majority of projects m onitored fall within the first three ODA 
sectors, accounting for 80% of the monitoring reports produced and 87% of the budget monitored. The lower scoring for the "production sector" is mainly due to delays in implementing activities in the ACP regions, which lead to problems with 
achieving results. 
Table 35: Performance by ODA sector in 2007  
2,42,52,62,72,82,93,0
Social
Infrastructure
and Services
Economic
Infrastructure
and Services
Production
sectors
Multisector -
Crosscutting
Commodity Aid
and General
Programme
Assistance
Humanitarian
Aid/Emergency
Assistance
Other
Unallocated
UnspecifiedRelevance
Efficiency
Effectiveness
Impact
Sustainability
 
Special analysis: ex-post 
A total of 198 completed projects were monitored "ex-post" (as opposed to 1421 
active projects). The share of projects cl assified as very good/good and as having 
                                                 
82 Note: Projects with at least one 'd ' (lowest mark) represent 8,1% wher eas with an average score of 'd' 
the percentage decreases to 0,7% . 
EN 131   EN problems/major problems, remains consistent  for both active and completed projects 
within each region. However, the share of pr ojects performing really well, as well as 
that of projects performing really poorly, becomes larger when ex-post 
measurements are taken into account. G ood projects tend to perform better after 
external assistance has come  to an end, while poorly performing projects tend to 
deteriorate further. 
The main lesson learned from ex-post monitori ng is that, in general, the lessons are 
not being applied. Although most projects have  detailed reporting systems, there are 
very few cases of projects that systema tically record their positive and negative 
experiences with a view to identifying the most appropriate guida nce. This lack of 
capacity to identify and acknowledge how su ccess has been achieved means that the 
same errors are continuously repeate d. Likewise, successes are neither being 
acknowledged nor are they being applie d as helpful guideposts. Another major 
finding is that the most cruc ial factors for projects to maintain, once external 
assistance has ended, are policy support,  ownership, and financial viability. 
Conclusions 
Ex-post assessment of projec t performance, based on the same uniform monitoring 
methodology as that used during a project's lif etime, allows results to be compared. 
This information can greatly support the Commission in mana ging projects and in 
further refining development policies. Pre liminary testing during the year (still 
ongoing) of the ROM methodology for sector  policy support programmes (SPSP) in 
Latin America and the Mediterranean produc ed useful information for refining a 
methodology that will be finalised in late 2008. 
Outlook into 2008 
The main challenges will be finalising the ROM/SPSP test phase, including in ACP 
and Asia, and developing a system fo r better collecting and disseminating 
transferable lessons and best practices. This should include systematic use of forums 
such as initiatives under the aid delivery  methods programme including trainings, 
and Quality Support Groups to ensure that lessons from ROM are integrated in the operations cycle. The quality assurance of  the ROM system should also be improved 
further and ROM should be consistently linke d with internal monitoring so as to 
create conditions for more effective aid delivery. 
4.2. Evaluation: review of the 2007 work programme 
4.2.1.  Organisation of the evaluation function 
The Evaluation Unit in the EuropeAid Co -operation Office is a joint evaluation 
function for three External Relations Dir ectorates-General: Development, External 
Relations and EuropeAid
83. A multi-annual programme for 2007-2013 was validated 
                                                 
83 At the time of the reform of the management of external aid, it was stated that "the evaluation of the 
results of regional and sectoral policies, programmes and programming performance is crucial for the 
success of the external aid policies as a whole, and ne eds to feed back into the programming cycle. To 
ensure objectivity, this level of evaluation should be conducted independently and serve as a feedback 
loop for the services responsible for policy, programming and implementation. The evaluation services 
would be accountable to the Group of Relex Co mmissioners. The Group will decide on the work 
EN 132   EN by the Commissioner for External Relati ons and European Ne ighbourhood Policy in 
agreement with the Commissioner for Develo pment and Humanitarian Aid in March. 
This programme confirmed the three main  axes of the previous period: more 
emphasis on geographical evaluations (partner  countries and regi ons), enlarging the 
scope of thematic and sectoral evaluations , and continuing evaluations of modalities. 
Evaluation of individual proj ects is not the re sponsibility of th e joint evaluation 
function, which is in charge of regiona l and sector polici es, programmes and 
programming cycles and provides met hodological support for all types of 
evaluations. 
4.2.2.  The 2007 work programme 
Eleven evaluations were completed during this year: nine geogr aphical evaluations 
(China, India, Bolivia, Jordan, Moldova, Mozambique, Pacific Region, Southern 
Africa Development Community and Central America) ; one thematic evaluation 
(Agricultural and rural development) and th e synthesis of six jo int evaluations with 
Member States on coordination, complement arity and coherence (the "3Cs"). Full 
texts of the evaluation reports are ma de public on the evaluation website84. 
Four evaluations launched at  the end of 2006 have rais ed methodological challenges 
for EC external aid. Three methodological challenges concern aid disbursement 
through UN offices, development banks and ci vil society; one c oncerns establishing 
an approach for evaluating budget support ba sed on past practical experience. The 
latter will be discussed with other donors. 
Eleven new evaluations were initiated: Chad, Uganda, Angola, Central Africa 
Republic, MEDA Regulation, ASEAN, Laos, Thailand; education, health and 
poverty diseases. 
Completing the publication of the met hodological work in 2006, a set of four 
booklets was published in English, French a nd Spanish and widely disseminated. The 
full text can be found on the evaluation website85. The methodology for country level 
evaluations was presented in seminars in  Spain, Sweden, Germany, Portugal, Czech 
Republic, France, Belgium, Finland, th e United Kingdom and Italy. Government 
representatives of evaluati on units and policy units, NGOs, external evaluators and 
academics participated. 
With regard to dissemination and feedb ack mechanisms, seven seminars were 
organised in the countries concerned to discuss seven evaluation reports (China, 
India, Bolivia, Jordan, Moldova, Mozambi que and Nicaragua). Furthermore, a 
seminar was organised in Brussels to pres ent the six evaluations on the 3Cs and the 
synthesis report; the latter was also pr esented at the Council's Development 
Committee. The evaluation on agricultural a nd rural development was presented in 
                                                                                                                                                         
programme of the evaluation services and act on its reports recommendations". (SEC(2000)814/5 of 15 
May 2000) The new financial instruments repeat the spirit of the mandate of the evaluation: "evaluation 
of the results of the regional and sectoral policies, programmes and programming is crucial for the 
success of the external aid policies. " (ENPI, Article 24; DCI Article 20 ; IfS Article 15; and IPA Article 
22; 10th EDF implementing regulation Article 15) 
84 http://ec.europa.eu/europeaid/ how/evaluation/index_en.htm  
85 http://ec.europa.eu/europeaid/evaluation/methodology/methods/mth_docs_en.htm  
EN 133   EN Berlin during an international conference. The " fiches contradictoires"  (or follow-up 
of earlier evaluations) were published for the reports on the Caribbean, Benin, Latin 
America, Armenia, Tanzania and the TACIS region. 
4.2.3.  Lessons learned from eval uations finalised in 2007 
China: The Commission's cooperation approa ch to China during the period 1998-
2006 was relevant to the Chinese policy cont ext and needs and is consistent with 
long-term EU policy goals. At high levels , the Chinese and European sides share a 
common language on partnership: the move to a dialogue of equals has led to a 
progressive phasing out of development cooperation. Despite policy successes 
concrete results have been limited, because  the Commission and its  Chinese partners 
have experienced some difficulty in ar riving at agreement on project goals and 
modalities. Projects generate knowledge and expertise which are not taken up to the 
EC policy and strategic levels. Too many pr omising pilot projects have not been 
replicated at a national leve l, as the results were not  shared among the Chinese 
provincial governments. Coordination betw een the Commission and Member States 
is strong in form but weak on substance. 
India: EC aid to India gained in relevan ce and was better aligned over the period 
1991-2006. The shift from the project-based appr oach to sector s upport facilitated a 
qualitative improvement in the conti nuing dialogue on development cooperation 
between the Commission and India. Ther e is limited but robust evidence on the 
impact of Commission support to the social sectors (health and education). However, 
sector-specific support has not  contributed significantly to the current devolution of 
power to the locally elected bodies. The pha sing out of rural de velopment and stand-
alone environment projects, whose impact is limited, was appropriate. Recent programmes and projects to promote cross-cultural economic cooperation and 
academic/scientific exchanges are highly valuable responses to the increasing 
diversity and maturity of EU-India relations. 
Jordan: The Commission's strategy during the period 1996-2006 was aligned on 
Jordan's priorities in a dynamic way. Indeed, major shifts in the government's strategy were accompanied by new priorities on the Commission's side in a context of systematic policy dialogue and pragmatic  coordination with Member States. New 
priorities were rapidly and c onsistently applied in the ar eas of poverty alleviation and 
human rights. Joint policy development pr oved to be an effective and efficient 
approach leading to tangible impacts on the competitiveness of small and medium enterprises and in strengthening poor m unicipalities. Impacts were noted on 
economic stability and the management of ur ban water networks. In the trade sector, 
the Commission's interventions were found to  be disappointing in view of the high 
expectations placed on trad e liberalisation and export-ba sed development. In the 
latter case, these expectations were based on implicit assumptions which could not be 
confirmed. It took too much time to corre ct these first assumptions and the new 
assumptions again were mostly implicit.  The consequence was a lengthy learning 
process which in turn delayed corrective action. 
Bolivia: The evolution of the Commission's strategy during the period 1996-2006 is 
assessed positively by the national and internat ional stakeholders and is relevant to 
the needs of Bolivia. Among its interventi on options, the Commi ssion has chosen to 
prioritise flexibility to adapt quickly to changes in the Bolivian context. This choice 
EN 134   EN jeopardises long-term actions and the capacity to apply skills and leadership in some 
sectors. Impact, effectiveness and sustaina bility of the interv entions have been 
assessed as irregular. The weakness of cer tain results comes from the pressure to 
spend in an unstable context,  the poor concepti on of some projects, problems with 
phasing out actions, and difficult implementa tion when not all external factors had 
been assessed correctly. Ther e is a gap between the requ est to use budget support as 
a financial modality and a context that doe s not present many conditions for its use. 
Moldova: EC cooperation with Moldova during the period 2000-2006 was to a large 
extent relevant to national needs and cohe rent with long-term EC objectives. As the 
development context in Moldova is pa rticularly challenging, major economic 
problems must still be addressed. Neverthele ss, some impacts of the EC cooperation 
can be noted: the Commission's technical assistance has significantly advanced 
policy formulation, but the implementation of this new legislation has yet to lead to 
tangible results. For macroeconomic stabilisation, some positive assessments are also noted, but these rely too much on external technical assistance. Capacity building in 
some ministries needs to be developed. The Commission has contributed to civil 
society development, mostly in social service delivery. Du ring the period under 
review, the quality of  the EC cooperation in Moldova was adversely affected by the 
low presence of the Commission in the capital Chisinau; in the meantime this problem has been solved by elevating the status of the office there to a full Delegation. 
Mozambique: EC cooperation during the peri od 2001-2007 was relevant to the 
needs of Mozambique and is consistent with the EU policy goals. The evaluation 
found that the EC cooperation in Mozambique  is of high quality. The effectiveness 
of the Commission Delegation as a part ner of the government, supporting national 
poverty reduction, improved significantly du ring the review period. General budget 
support had positive effects on the harmonisation of donors and alignment to the 
government's own planning process, th ereby allowing a better poverty reduction 
focus. EC support to the national road netw ork is nearly completed and emphasis is 
shifting to lower category roads; however, the maintenance of main roads continues 
to be deficient. EC support to the agriculture sector and food security co ntributes to 
the implementation of government policy and to  the definition of line ministries' core 
functions. Strong support for human rights has no t yet lead to results as concerns the 
performance of courts, justice and prisons. The high potential in the development of 
civil society organisation was not addre ssed. The Commission made significant 
efforts to maximise donor coordination al though complementarity is difficult to 
achieve. 
Southern Africa Development Community (SADC):  The EC's regional 
intervention during the peri od 1996-2007 is relevant, cohe rent and poverty-oriented. 
However, little impact could be measured . The three main sectors which form the 
core of the intervention (tra de, transport and food security ) are closely inter-linked; 
some positive outcomes could be noted at national level but hardly at regional level. The combination of an organisation lack ing capacity (SADC) with an organisation 
where adherence to procedures is very im portant (the Commissi on) contributed to 
delays at all stages. Even if the attent ion has been applied to capacity building 
activities to support the SADC secretariat, the issues of the multiplicity of regional 
organisations could not have been serious ly addressed, neither by SADC nor by the 
EN 135   EN Commission. In addition, the split of SADC  Member States into two EPA groups has 
definitively complicated inter- and intra-regional cooperation. 
Pacific region: The Commission's cooperation with the ACP Pacific Region during 
the period 1997-2007 was relevant to the re gional context. Given the Commission's 
small share of total development aid to the region and the region's remoteness, the 
regional interventions were justifiably focu sed on supporting the regional institutions 
and on themes that are priorities fo r the Commission (environment and natural 
resources management). However, formulated  to support the priorities expressed by 
the regional authorities, the Commission's support was not fully in line with the 
poverty reduction efforts in the region. Th e Commission did not use the full potential 
for coordinating and exploiting the comple mentarities of its regional and national 
strategies in order to maximise  the impact of its assistance. 
Central America: During the period 1996-2006, the Commission's strategy in 
Central America showed a high level of c ontinuity and was relevant to both the 
needs of the region and the Commission's objectives. The EC interventions have 
stimulated the dialogue between Central Am erica and Europe and have influenced 
the further development of regional economic integrati on. However, the evaluation 
report identifies several weaknesses regarding the interventions related to institutional development, supporting civil society and ethnic groups, environment 
activities and various social  problems. The report notes the lack of coordination 
among donors even if some complementar ities had been seen in certain cases. 
Agricultural and rural development: The evaluation report covers the period 
1995-2005. It found that the EC's strategy  as defined in 2002 is a coherent 
framework which covers the concept of poverty reduction, food security and rural 
and agricultural development, but neither sp ecifies these concepts and nor links them 
to one another. The Commission improved th e quality of its programmes by using a 
more participative approach and by being more closely linked to partner countries' 
institutions. The impacts of the intervention are positive, but very limited geographically. Efficiency is weak in spite of flexible financial modalities. Sustainability has improved since 1995 but is still not secured. The Commission has 
played a role in reinforcing the importance of civil society as an actor for development in rural zones and for th e agriculture sect or. Coordination, 
complementarity and coherence with other EU policies (trade, CAP, etc.) could be 
improved. 
Synthesis of six studies in coordination, complementarity and coherence (3Cs): 
Following the completion of six studies on  the 3Cs managed by the group of Heads 
of Evaluation Services of the EU Member  States and the Commission, a synthesis 
report was presented to the Council of Mini sters. Its main findings include: (i) the 
institutional architecture required to re nder operational the 3Cs is incomplete, 
notably concerning management; (ii) inade quate coordination, complementarity and 
coherence reduce the impact of the EU's development aid efforts and leads to unnecessary high demands on developing count ries' human and financial resources; 
(iii) the premises or rationale  for the 3Cs are no t clear enough, especially in the light 
of recent changes in the global policy landscape. Several evaluation reports give some examples of rather promising coordi nation processes and poi nt to a "reservoir" 
of practical experiences that Member States and the Commission could build on. 
EN 136   EN 4.2.4.  Synthesis of main lessons learned 
• The relevance of Commission programmi ng and implementation is generally 
good: the Commission response addresses th e needs of partner countries and is 
coherent with EU goals. 
• Several major positive impacts have been no ted e.g. on the social sectors in India, 
economic stability in Jordan and Mozambi que, the water sector in Jordan, food 
security in Mozambique, and economic integration in Central America. 
• There is a lack of sustainability in implementation strategies since ensuring 
ownership by partner country stakeholde rs receives insufficient attention. 
• Recurrent weaknesses in efficiency ar e reported to be due to delays in 
implementation, lack of flex ibility and cumbersome pro cedures which also limit 
the effectiveness of Commission actions. 
• While the high quality of projects within some sectors (such as rural development) 
is recognized, there is often a poor impact  on sectoral policy of partner countries. 
• An impressive increase in aid expenditures has been realised, but at the risk of 
compromising the quality of the interventions. 
• Good results regarding devolution, especi ally when delegations are flexible 
enough to adapt to the specific context, are counterbalanced by overly fragmented 
visions and insufficient coordina tion among sectors in delegations. 
• The Commission has a particular valu e added in its regional programming; 
however, the linkage between national a nd regional programmes is often weak. 
4.2.5.  Outlook for 2008 
The evaluation programme for 2008 will fo llow the path laid in the multiannual 
evaluation programme for 2007-2013. It is  planned to launch 11 country level 
evaluations (Nigeria, Namibia, Botswana , Burkina-Faso, Vietnam, El Salvador, 
Nicaragua, Egypt, Tunisia, Ni ger and Senegal, the later two being joint evaluations 
with some EU Member States) and f our thematic evaluations (support to 
decentralisation process, re spect of human rights and fundamental freedoms, conflict 
prevention and peace building, employment and social inclusion). The Evaluation 
Unit will also propose a methodological appr oach for evaluating budget support to be 
discussed with other donors. 
5. AID  MANAGEMENT 
5.1. Developments in aid delivery modalities and channels 
Focus on sector approaches and budget support 
EN 137   EN During the year the Commission worked in line with the policy orientations on the 
use of the sectoral ap proach and budget support86. The total value of budget support 
commitments, about €1.79 billion, amounted to almost 23% of total commitments. This is a substantial in crease compared to 2006, expl ained by an increase in 
commitments under the EC Budge t (notably in the Asia region, but also in the ENP 
region). For the EDF, budget support commitme nts remained broadly constant – with 
and increased in general budget support o ffset by a fall in sector budget support 
commitments. 
A new set of financial instruments for provi ding aid came into force. Asia and Latin 
America are now covered by the development cooperation instrument (DCI), and Mediterranean and Eastern European c ountries by the European neighbourhood and 
partnership instrument (ENPI). The introduc tion of these new instruments was an 
important step in harmonisi ng the use of budget support acro ss different regions with 
a common approach to eligibility that empha sises appropriate policies and strategies, 
macroeconomic stability, and public financial management. 
To coincide with the new financial instru ments, new guidance was issued. The guide 
on general budget support, first issued in March 2002, was updated and issued in 
January. A guide on support to sector programmes was issu ed in July (see below). 
Significant progress was made in harmonising the eligibility criteria for the use of 
budget support. In addition, the role of the Public Expenditure and Financial 
Accountability Programme (PEFA) was rein forced with further encouragement to 
use this assessment as the favoured met hodology to examine the status of public 
financial management within a country. 
The Commission approach to aid delivery 
European external assistance is implemen ted through three main delivery modalities. 
The choices depend on a joint Commission/ government analysis of the country and 
sector environment. 
The project approach is used in situati ons such as support to non-state actors and 
regional programmes, or where conditions preclude complete use of government 
systems, for example in conflict or post-conf lict situations. Projects are implemented 
using the Commission’s procuremen t and grant award procedures. 
The sector approach, where a Sector Policy Support Programme (SPSP) is used, aims 
to underpin an agreed sect or policy and a realistic st rategic framework monitored 
through performance criteria and indicators.  SPSPs may be financed by (i) sector 
budget support (SBS), with funds transferred to the national treasury of the 
beneficiary country; (ii) pooling funds w ith beneficiary governments and other 
donors, or (iii) project pro cedures using Commission pr ocurement and grant award 
processes. 
The Commission also supports national or m acro level goals expressed in national 
policy and strategy documents (such as a Poverty Reduction Strategy Paper). This 
assistance is financed through General B udget Support (GBS), with funds transferred 
                                                 
86 See box EC Approach to Aid Delivery  for definitions and policy orientations for the Commission in this 
area 
EN 138   EN to the national treasury of the beneficiary country. It is usually accompanied by 
capacity development activities, generally in the area of public financial 
management. 
At a policy level the sectoral approach and the use of budget support as a preferred 
aid modality follow the orient ations of the European Co nsensus on Development, 
which states that “where circumstances pe rmit, the use of general or sectoral budget 
support should increase as  a means to strengthen ow nership, support partner’s 
national accountability and procedures , to finance national poverty reduction 
strategies (PRS) and to promote sound and transparent management of public 
finances”. In addition, the Paris Declar ation of March 2005 has created positive 
momentum for budget and sector support focusing on ownership, alignment and 
harmonisation. The declaration contains twel ve indicators to measure progress in 
these areas, laying great emphasis on the use of the sector approach and budget 
support. These forms of aid delivery are, by their very nature, aligned with country 
systems, avoid parallel implementatio n structures, and fa vour a synchronized 
approach to capacity development and the use of joint field missions and shared 
analysis. 
Methodological work and training  
Developing the skills and capacities of ke y actors intervening in the design and 
implementation of EC-funded programmes is  crucial for improving their quality, 
impact and sustainability. A significant effort was made to develop methodology and 
training in various areas re lated to sector approaches , such as public financial 
management, institutional analysis and capacity development, applied 
macroeconomics. 
This year substantial methodological work was achieved, in areas such as guidance 
on sector support, decentralisation and local governance, project monitoring, and 
support to reform processes, in particular  in public financial management, and more 
generally in capacity development. 
The new Guidelines on Support to Sector Programmes , covering sector budget 
support, pool funding and EC project procedures, are a major achievement. Building 
on lessons learned since 2003, th ese guidelines promote a c ontext-sensitive approach 
integrating lessons learned in working with  sector approaches in new geographical 
areas and in sectors where projects have  been dominant so far. They explain 
eligibility criteria for sect or budget support and provide reference material in all 
seven areas of assessment, including po licy analysis, annual budget, sector 
coordination, performance measurement,  capacity assessment, public financial 
management, and macroeconomics. The guide lines have been well-received by other 
donors and are useful for supporting aid e ffectiveness work and dialogue among 
sector stakeholders. 
A new series of methodological publica tions, the "Tools an d Methods Series"87, was 
launched in the second half of the year . This series includes three types of 
documents: guidelines providing guidance  on how to design and implement EU 
                                                 
87 All these documents are accessible to the public on AIDCO internet site 
http://ec.europa.eu/europeaid/multimedia/publications/index_en.htm  
EN 139   EN financed programmes; reference document s developing concepts and insights in 
working practices, and concept notes fo cused on deepening the understanding of a 
given topic. The intended public include s Commission staff, but also external 
stakeholders involved in the management of  external assistance in partner countries 
and other donors. The series supports im provements in the quality of EC-funded 
projects in line with aid effectiveness prin ciples as well as enhanced visibility for 
Commission work. In addition to the guidelines on sector  support various documents 
were published. The reference document Institutional Assessment and Capacity 
Development  offers a conceptual framework fo r dealing with institutional and 
capacity assessment mainly in the p ublic sector. The reference document Supporting 
Decentralisation and Local Gover nance in Third Countries provides practical tools 
to develop a shared understanding of decen tralisation and to improve the design and 
implementation of EC support in th is field. The reference document Strengthening 
Project Internal Mo nitoring: How to Enhance the Role of EC Task Managers  has 
two objectives, namely to support effec tive monitoring by project implementing 
partners and to support good management of  monitoring at the le vel of Delegations 
through practical tools. 
Progress was also made in the transport se ctor. Based on the idea of presenting the 
collective experience of Commission colleague s as an aid to Delegations in their 
everyday work, an Operational Handbook for R oad Project Managers in 
Delegations  was published in February. It re flects Commission transport policy 
documents and aims to provide project mana gers with useful in formation to help 
them prepare and implement road infrastructure projects, particularly in ACP countries. 
The work initiated in 2006 for a more strate gic and co-ordinated approach in the area 
of institutional support and capacity devel opment in partner countries was developed. 
In collaboration with two multi-donor ne tworks – the Learning and Exchange 
Network on Capacity Development and "T rain4dev" – the Commission successfully 
launched the development of a "joint le arning package" for use of all donors 
intervening in a given sector, based on its own material and experience. The 
Commission is making a substantial effort to  develop the capacity of its staff through 
regular and innovative training programmes wh ich focus on the development of both 
practical and conceptual ab ilities. Within the donor community, EuropeAid is a 
major "training producer" in the area of ai d delivery methods with more than 215 
sessions organised and more than 4100 partic ipants during the period June 2005- 
December 2007 (see table below). 
Table 36: Methodological Training organised from June 2005 to December 2007 
Project Approach and related 
topics Sector/Budget Support and 
related topics    
Number of courses Number of 
participants Number of 
courses Number of 
participants 
At Headquarters 45 889 73 1218 
At country level 36 754 61 1305 
EN 140   EN Total 81 1643 134 2523 
In the category of project ap proaches, this year new tr ainings were developed on 
enhancing project monitoring systems; managing participatory approaches and 
stakeholder analysis; and taki ng into account the cultural dimension in the design and 
implementation of projects. In the area of  sector and budget support, new advanced 
courses were developed in the area of  public financial management (PFM) and 
applied macroeconomics. Training in PFM is scoring very high, both in terms of 
attendance and in terms of quality (average evaluation score is 4/5). Sector specific seminars continued to be de veloped in the area of wate r, transport, education, 
decentralisation and local gove rnment with very positive evaluations. The quality of 
methodological training is consistently ev aluated as good, very good, or excellent, 
and the total average score is 3.9/5. Impact  assessment exercises were conducted on 
the two main trainings. These confirmed that the courses were well-received by 
participants, particularly in te rms of accessibility and quality. 
5.2. Progress on qualitative issues in aid management 
Design quality of operations 
The Commission has developed a structured system to screen and support quality of 
operations at the stages of identificat ion and formulation – the Office Quality 
Support Group (oQSG) system. During 2007, th e functioning of this system was 
consolidated further. The methodology was revised and doing so proved useful. In 
terms of coverage, 147 meetings were or ganized (53% increase in comparison to 
2006) and almost 900 operations were scr eened (63% increase) corresponding to 
nearly €6.3 billion. The ratio of well-de signed projects subm itted to oQSG has 
reached 88.5%
88. The overall results of the oQ SG are encouraging especially 
considering that considerable strain was put on the system this year for several reasons, including the late approval of the new financing instruments and programming documents, the tight deadlines  imposed by changes in the financial 
instruments and new procedures, the "cut o ff" date of end July for the approval of 
projects financed under the 9
th EDF, and the scale-up of aid. 
Developments in working with indicators  
Several exercises are continuing in th e area of performance measurement and 
indicators. EuropeAid's performance indicato rs are a set of central indicators which 
track data on financial, quality, internal processes and staffing. They were reviewed 
and expanded in 2005. Regular reports on EuropeAid's activity, which include 
indicators, are submitted to the Group of External Relations Commissioners. 
The MDGs are the key development outcomes the EC is working to achieve between 
now and 2015, along with the rest of the international commun ity. The Commission 
has worked with an expert group of Member States and other interested parties, 
including the OECD DAC, UND P and the World Bank, to develop a core set of ten 
indicators drawn from the MDGs, the Mill ennium Development Indicators. Six are 
                                                 
88 As this indicator measures the quality of the documents discussed during oQSG step II, it precludes the 
further improvements before the Financing Decision is taken. 
EN 141   EN directly related to the well-being of children, while three have a specific gender 
dimension. All country strategies include the last available data for each indicator. In 
addition, country strategy papers will also  measure progress agai nst a wider range of 
country-specific indicators, which should refl ect the focal sectors identified as well 
as overall movements in poverty. 
In using the classic project approach, renewe d attention is given to appropriate use of 
the "Quality Frame", a tool for assessing project quality based on three attributes 
(relevance, feasibility and eff ectiveness) introduced with the Project Cycle 
Management Guidelines  issued in 2004. These recommend the use of the logical 
framework approach and of SMART indicat ors identified at each level of the 
framework: results, purpose and overall pr oject objective. These indicators are then 
referred to in monitoring and evalua tion. When using budget support programmes, 
disbursements are linked to the evolution of key outcome indicators such as child 
vaccination, girl enrolment in primary school s, primary school completion rate, etc. 
The Commission wants to equi p itself progressively with  measuring tools enabling 
the assessment of the quantifiable effects of its operations in order to report on development results and e nhance accountability to the European Parliament and 
Member States. This concept of account ability-reporting has been developed in 
agreement with the commitments under the Paris Declaration to enhance donors' and 
partner countries' respective accountability to their citizen s and parliaments and with 
the importance given to progress indica tors in the European Consensus on 
Development and the DCI regulation. For th is purpose, on 1 Se ptember the pilot 
phase started of systematic use of a select ed list of standard result indicators in a 
limited number of sectors including hu man development, good governance, food 
security and rural development, which are key areas for MDGs progress. These 
indicators will be aggregated. To measure the effectiveness of external aid, and to 
appraise trends over a given period of tim e, quantifiable performance indicators are 
applied. 
In making available pertinent developmen t indicators, the Commission's support for 
high quality statistics is instrumental. Th e key elements consist of preparing and 
implementing a national statis tics development strategy
89 that has full national 
political support and that is compatible  with the national development programme, 
such as a poverty reduction strategy. A na tional statistics development strategy will 
prioritise needs for statistic s to develop, monitor and eval uate economic, social and 
environmental policies in a sustainable pr ogramme. This is the quantitative element 
of good governance. Increased demand for quality statistics has resulted in the 
Commission participating in the multi- partner programme for scaling up of 
assistance to statistics. 
Developing thematic networks 
To strengthen EuropeAid's supporting role in improving the quality of operations, 
several thematic networks have been cr eated in recent years to promote better 
sharing of information with Delegations a nd other members of the External Relations 
Directorates General. These networks, e.g. on budget support , transport, water, food 
                                                 
89 See www.paris21.org . Other equivalent methodologies are also available. 
EN 142   EN security, or urban development, are proving to be effective tools. In 2008 new tools 
and technologies will be intr oduced to support the networks. 
5.3. Cooperation with international organisations and other donors 
Cooperation and partnership with the UN and the World Bank has remained 
significant, with contributions amounting to just under €1.3 b illion in 2007. While 
commitments to the UN system fell slightl y, this reflects changed responsibilities 
with respect to food aid, which is now managed by the Commission's Humanitarian 
Aid Directorate Genera l (DG ECHO), and does not  signal a slowdown in 
Commission-UN cooperation. Coop eration otherwise has remained strong with the 
UN and the World Bank working together with the Commission to support programmes in areas such as election mon itoring and assistance, institution building, 
rehabilitation, rural developm ent, education and health. Cooperation also takes place 
with regional development banks such as the African, Asian and Inter-American 
Development Banks. 
Requiring prerequisites before working with  international organi sations provides the 
Commission with the confidence that such organisations meet international standards as regards accounting, external audit, in ternal control and procurement. During the 
year, this compliance analysis was su ccessfully completed for the main UN 
organisations and the World Bank. 
The United Nations 
Sharing common objectives and values, and similar policy priorities in poverty 
reduction, democratic governance, crisis prevention and recovery, inter alia , the 
Commission and the UN are now worki ng together in over 105 countries, as 
illustrated in the latest report on UN– Commission cooperation produced by the UN 
in 2007 with Commission support
90. 
The Commission and the UN continued to streamline the way they work together 
under the 2003 Financial and Administrativ e Framework Agreement (the FAFA). 
The annual meeting saw the adoption of joint reporting guidel ines, and throughout 
the year staff from both the UN and the Co mmission participated in joint training 
initiatives to help foster mutual unders tanding and ensure th at together their 
institutions can deliver a better serv ice to partner count ries. Moreover the 
Commission offered the UN tr aining on how its works with the UN (use of joint 
management, FAFA and applicable procedures). 
UNDP continues to be the Commission's main  partner, with major rehabilitation and 
reconstruction programmes. Support for el ections is also an area where the 
Commission and UNDP have in creasingly cooperated. The Operational Guidelines 
for the Implementation of Elector al Assistance Programmes and Projects , first 
agreed with UNDP in 2006, were  reviewed this year. This  partnership has already 
proved to be of great value to partne r countries and the updated guidelines will 
improve even further the way election suppor t is implemented. At the end of 2006 an 
evaluation was launched of  Commission financing ch annelled through the UN 
                                                 
90 "Improving Lives", produced by the UN office Brussels with Commission support, available on 
www.unbrussels.org/improvinglives.pdf  
EN 143   EN system. Most phases of this evaluation we re completed, including a series of field 
trips to locations where the UN is ma naging EC-funded programmes. The final 
report is expected for the first half of 2008. 
The World Bank  
The Commission remains one of the main donors to multi-donor trust funds managed 
by the World Bank. The Commission is conscious  of the need to ensure that these 
substantial amounts are properly managed, reported on and accounted for. In 2001 it signed a Framework Agreement with the Bank, which is jointly reviewed each year and has been updated on several occasions  in relation not only to financial 
management but also on issues such as visibility. The Bank manages over 900 trust 
funds, each with its own remit, rules and governance structure. Most are relatively 
small. This is a significant management problem for the Bank. The Commission fully 
supports the Bank's efforts to make these tr ust funds more transparent and to simplify 
the procedures which govern them. 
Operational co-ordination w ith the World Bank is extr emely good and relations in-
country between the Commission's Delega tions and the Bank's offices help to 
reinforce the frequent contacts at headqua rters level. The Bank's representative in 
Brussels and the Commission's Delegation in Washington also help to support the 
cooperation. In some of the key programmes, su ch as in aid to the Palestinians and in 
Iraq, the need for a common approach is reinforced. Progress was also made on the continuing evaluation of EC contri butions to World Bank Trust Funds. 
OECD/DAC 
The DAC reviewed the development coope ration policies and programmes of the 
European Community during 2007
91. The OECD report highlights the Commission's 
achievements over the past years as an eff ective aid donor in its own right and as a 
"Federator" of aid from the 27 EU Member States. 
The OECD also shows the Commission's unique role in current development 
thinking: policy coherence; promoting aid effectiveness; developing new aid 
modalities, for example for budget support; an d fragile states. The OECD sees the 
Commission as a driving force for the future . In addition to continuing to lead the 
scaling-up, aid effectiveness and policy c oherence debates, the OECD sees added 
value for the Commission in: managing the growing pool of Official Development 
Assistance as EU Member States increa se aid budgets; creating an EU system of 
performance management for development projects; intensifyi ng the dialogue with 
civil society and communication with th e wider public; and creating an explicit 
framework to engage with multilateral institutions, such as the World Bank and the United Nations. 
Council of Europe 
With the signature in May of a Memo randum of Understanding on enhanced 
cooperation and political dialogue between the EU and the Council of Europe, the 
                                                
 
91 DCD/DAC/AR(2007)2/EC/PART1/FINAL and DCD/ DAC/AR(2007)2/EC/PART2/FINAL of 4 and 9 
July 2007 respectively 
EN 144   EN relations between the two organisations we re deepened. The Commission contributed 
significantly to the negotiating process and is already very active in implementing the Memorandum. This is borne out by the increasing volume of joint projects, reaching over €80 million at the end of 2007. The shared values of pluralistic democracy, the rule of law, and human rights and fundamental freedoms form the 
core areas in which the Commission and the Council of Europe concentrate their 
cooperation, which is particularly fruitful in the countries partic ipating in the EU’s 
Neighbourhood Policy and the Enlargement process. 
OSCE 
In 2007, the usual productive cooperation betw een the EU and the OSCE translated 
into numerous practical accomplishments, su ch as EUBAM (European Union Border 
Assessment Mission) in Moldova, BOMCA (E U Border Management Programme in 
Central Asia) and CADAP (E U Central Asia Drug Acti on Programme) in Central 
Asia, the OSCE-led rehabilitation programme  in South Ossetia, a nd ripe cooperation 
with ODIHR (Office for Democratic  Institutions and Human Rights). 
Cooperation with other donors  
Cooperation was driven by the Paris Declar ation. In addition to participating in 
relevant OECD-DAC forums, the Commissi on established a permanent network with 
the development institutions of the Member States, the European Development Aid Practitioners network to exchange views on best practices. The Commission also 
supports the Outreach Strategy established by the OECD/DAC. 
A major change was the possibility, opene d by the new Financial Regulation which 
came into force in May, to co-finance with bilateral donor s. By the end the year, 
eight aid agencies had expressed their interest  in this form of co-financing and six of 
them are undergoing the assessment procedure, which is a pre-requisite for the EC to 
co-finance in this way. 
The Commission is committed to a proces s of dialogue, mainly with China in 
association with the African Partners and the African Union. This process aims to 
foster understanding of respective policie s and explore potential synergies, on, for 
example, security and stability, or infrastr ucture development. This could lead to a 
broader consultation process including bilate ral dialogue at the highest level (such as 
the EU-China and EU-Africa Summits).  Cooperation with other emerging donors 
such as India, Russia, South Korea and Turkey is also becoming increasingly important. 
5.4. Simplification of procedures 
The Commission has been engaged in a dr ive to make the rules for managing 
external assistance simpler and more visible.  This year's entry into force of a new 
legal and financial framework for the ma nagement of external assistance was 
evidence of this effort. Innovations incl uded revised Financial Regulations and the 
new instruments for external assistance. These not only rationalise the number of applicable legal bases, but also introduce se veral measures that facilitate the delivery 
of external assistance, including (i) identical rules for all instruments (harmonised eligibility rules, procedures and financ ing mechanisms); (ii) the opening up of 
contracting procedures to co -financing mechanisms (with th e possibility to use local 
EN 145   EN rules or rules agreed be tween donors); (iii) greater flexibility in  calculating 
contracting deadlines (the so -called d+3 rule); (iv) higher thresholds for procurement 
procedures; (v) new provisions facilita ting the administration of documentary 
evidence for tenders or for purchases unde r particularly adva ntageous conditions; 
and (iv) the possibility to make grants to  entities without lega l personality or in 
cascade and new cases of full financing. 
All these innovations were inco rporated in a new version of the Practical Guide to 
contract procedures, which also covers the rules applicable to actions financed under 
the European Development Fund92. In addition to innovations  that will be introduced 
with the entry into force of a new legal and financial framework for the 10th EDF, an effort was made to simplify the contractua l documents for the EDF to ensure greater 
coherence in the applicati on of the rules in question. 
5.5. Visibility and communication 
Communicating on the role of the EU remained a priority for the Commission. 
Numerous events took place within the context of the celebrations around the fiftieth anniversary of the Treaty of Rome
93. The Commission also produced a youth 
newspaper entitled 50 Years / 50 Stories of Solidarity  in 15 languages and some 
450.000 copies. This was widely distribute d, including through schools participating 
in the annual 9 May initiative in schools, which this year reached some 97,000 pupils 
from over 4400 classes in around 50 regions. 
The second EU Development Days were held  in Lisbon from 7 to 9 November. This 
year’s forum focused on climate change and how to respond to the needs of already 
vulnerable countries hardest hit by its impacts. A new website on external 
cooperation, available in 22 languages, wa s launched in September. New videos 
were released on cooperation in the area of water and of food security. The External 
Cooperation Info Point received 7000 visitors over the year. Discussions with the UN 
and the World Bank on joint visibility guide lines progressed over the year and were 
expected to be concluded in early 2008. 
6. ANNEXES 
6.1. Introduction to financial tables 
The Annual Report provides an overview of policies, objectives and achievements in 
2007. The tables and graphs that follow pr esent the main figures of development 
assistance in the year, featured by country, region, sector and pe r source of funding, 
i.e. EU external assistance instrument. 
2007 was the first year of a new financia l programming period of the EU Budget, 
with a whole new set of instruments coming in to force, and the final year of an EDF 
funding cycle (9th EDF); in financial terms it was thus not a "mainstream" year. 
Nevertheless the tables 2007 show again an improvement of overall Official Development Assistance levels . As regards poverty focus, the figures show that the 
                                                
 
92 http://ec.europa.eu/europeaid/work/procedures/implementation/practical_guide/index_en.htm  
93 An overview of events is available at http://europa.eu/50/around_world/index_en.htm  
EN 146   EN trend of the previous years is consolidated and sustained, with again an increase of 
the share going to least developed countries  as well as the shar e of allocations to 
social sectors. 
The first table shows the importance of ex ternal assistance (EA) in the overall 
expenditure of the European Commission. De fined as the resources used to foster 
programmes and projects beyond the Europ ean Union, EA accounted for 9% of the 
total allocation in 2007 (General  Commission Budget and EDF) – Fig 6.1 . The 
decrease from 2006 (10%) is mainly due to the accession of Romania and Bulgaria to 
full membership of EU. 
The sources of EA are the General Budget of the EC and the European Development 
Fund. A global overview of the shar e of resources will be found in Figure 6.2 . A 
detailed breakdown of the budget – Table 6.3  – identifies the different policy areas 
that contribute to this external assistance effort. A similar breakdown for the EDF can be found in Table 6.4.  For the first time these ta bles also show, for this 
breakdown, the part that was counted as Official Development Assistance (ODA). 
ODA is also sometimes referred to as "D evelopment Assistance" or "Development 
Co-operation". The concept of ODA used th roughout the tables and figures is the one 
defined by the OECD DAC (Development Assistance Committee) and reported by 
the EC to this body. The same applies to OA (Official Assi stance). Not all EC 
external assistance can be reported as ODA  or OA. Whether an action, programme or 
project is classified as ODA or not depends on the recipi ent country and the purpose 
and content of the aid. 
Figures 6.5 and 6.6 show the share of EC's external assistance cl assified as ODA, OA 
or neither. 92% of the total resources of EC external assistance committed in 2007 are considered reportable as ODA, showing an increased developmental focus of the 
external financial allocations. 
Turning to beneficiary countries and re gions, Fig 6.7, and tables 6.8 and 6.9, present 
the breakdown per region and per country. For this breakdown it is necessary to 
differentiate between bilateral and multilateral aid. Bilateral aid, as defined by the Development Assistance Committee, is direct  co-operation by the EC with a country 
(or region) where the EC controls the act ivities and knows how, when and where the 
resources are being spent. Multilateral aid comprises direct contri butions to the core 
funding of multilateral agencies, who report back to the Commission at a later stage 
about the expenditure. 
Fig 6.7 gives a breakdown of EC ODA per regi on. Africa continues to be the top 
ranking region (38% of ODA, same share as  in 2006). Overall Sub-Sahara Africa 
gets one third of total ODA committe d in 2007. Asia continues to rank 2
nd in 2007, 
though decreasing slightly its relative shar e (17% against 19% in 2006), with Europe 
now coming a close 3rd (16%). Fig 6.8 presents regi onal distribution of ODA to 
developing countries ov er the period 2003-2007.  
A more detailed breakdown for 2007, per co untry and region, in line with OECD 
DAC countries list, can be found in  Table 6.9. From the country allocated aid (thus 
excluding regional programs and Least De veloped Countries' programs unspecified 
at this stage),  the top ten ODA countries in 2007 included Turkey, Palestinian Adm. 
EN 147   EN Areas, Serbia, Ethiopia, Afghanistan, Morocc o, Ukraine, Sudan, South Africa, India. 
This top-ten list is broadly the same as  in 2006, the differences being Sudan and 
South Africa (in) and Democratic Re public of Congo and Indonesia (out). 
It is also important to id entify the main sectors of ac tivities that receive support. Fig 
6.10 shows this breakdown of EC ODA per main sector as defined by the DAC. The 
tables show a confirmation of the upward trend of the share devoted to social infrastructure and services (education and health, water management, civil society, 
government, etc.) within tota l ODA, with an all time high peaking at 42,8%. A more 
detailed sector breakdown of ODA is provided in Table 6.11 for commitments and  
table 6.12 for payments. 
Table 6.13  gives an overview of ODA manage d by EuropeAid, with a breakdown per 
sector and region managed. In this table the region is define d with the country 
groupings used in the EC instruments and corresponding budget structure. 
The 2007 report provides an addi tional table intended to me et information concerns 
expressed by the budget authority during the legislative process. Table 6.14  shows 
the sector breakdown of ODA per EC Exte rnal Assistance Instrument and sub-
component within the Instrume nts, with the associated graph 6.15  providing a clearer 
picture.  
Finally, the remaining tables and graphs show the evolution over time, from 2001 to 
2007, of external assistance and ODA: Fig. 6.16  shows the evolution of the main 
sources of funding (External assistance fr om EC Budget and EDF, with the share 
managed by EuropeAid), Fig 6.17 shows the  evolution of total ODA and OA 
volumes committed and disbursed, and Fig. 6.18 shows the  evolution of the sector 
breakdown of ODA.  
EN 148   EN 6.2. Financial tables 
Commitments ( € Million )
Commission Budget without External Aid 113 338 M€
External Aid (Budget + EDF) 10 625 M€Commission Budget + EDF 123 963 M€Fig 6.1. Percentage of Commission  Budget committed on External Assistance in 2007.
External Aid 
(Budget + EDF), 
10 625 M€, 9%
Commission 
Budget without 
External Aid, 113 
338 M€, 91%
 
EN 149   EN Fig.6.2. Sources of External Assistance in 2007.
Commitments ( € Million )
EuropeAid Budget 4 408 M€
EuropeAid EDF 3 636 M€
non EuropeAid Budget 2 581 M€
External Aid (Budget + EDF) 10 625 M€EuropeAid 
Budget, 4 408 
M€, 42%
EuropeAid EDF, 
3 636 M€, 34%non EuropeAid 
Budget, 2 581 
M€, 24%
 
EN 150   EN Total
Description Commit. Payments Commit. Payments Commit. Payments Commit. Payments
401 - ECFIN Macroeconomic assistance + EBRD 57.88 23.24 57.88 23.24 57.88 20.21
404 - EMPL 64.78 64.78 64.78
405 - AGRIThe Sapard pre-accession instrument — 
Com pletion of the programme (2000 to 2006 ) 5.96 291.07 5.96 291.07 7.42
406 - ENERG YCompletion of Intelligent energy — Europe 
programme (2003 to 2006): external strand — 
Coopener1.93 1.93 1.31
407 - ENVLIFE (European Financial Instrument for the 
Environment )2.00 9.03 2.00 9.03 0.36 5.37
108 - RTDCombating major diseases + Specific measures in 
support of international cooperation152.79 152.79 62.74
211 - FISH International fisheries agreements 127.78 159.20 127.78 159.20 6.26 5.25
413 - REGIO Pre-accession IPA and former ISPA. 221.77 643.28 221.77 643.28 221.77 0.12
414 - TAXUD Customs cooperation and international assistance 0.50 0.91 0.50 0.91
415 - EAC Education 26.71 22.87 26.71 22.87 20.50 19.96
417 - SANCOInternational agreements and membership of 
international organisations0.33 0.29 0.33 0.29
419 - RELEXMultilateral relations, cooperation in the areas of 
migration and asylum, and general external relations matters47.96 18.79 47.96 18.79 47.96 17.77
4 Common foreign and security policy 159.47 89.89 159.47 89.89
4European initiative for democracy and human 
rights (EIDHR)133.34 123.90 133.34 122.68 1.22 133.34 121.82
4Relations and cooperation with industrialised non-
member countries24.48 11.60 24.48 11.60
4 Crisis response and global threats to security 212.05 104.59 113.90 73.25 98.16 31.35 159.14 79.37
4European Neighbourhood Policy and relations 
with Russia1 628.88 1 400.82 1 628.88 1 400.82 1 603.86 1 278.01
4 Relations with Latin America 339.76 341.00 339.76 341.00 339.76 341.00
4Relations with Asia, Central Asia and East of 
Jordan countries836.58 791.15 836.58 791.15 836.58 791.15
4Policy strategy and coordination for External 
relations 
policy area24.98 22.13 15.95 12.66 9.04 9.47 21.68 19.29
420 - TRADE External trade relations 14.27 8.07 14.27 8.07 6.53 2.21
421- DEV Food securit y 201.28 301.38 201.28 301.38 201.28 301.38
4 Non-State actors in development 210.85 168.55 210.85 168.55 210.61 168.48
4Environment and sustainable management of 
natural resources, including energy84.58 80.71 84.58 80.71 83.02 80.71
4 Human and social development 95.29 128.95 95.29 128.95 95.29 128.95
4 Geographical cooperation with ACP Countries 346.66 161.86 346.66 161.86 346.66 159.59
4 Other cooperation actions and ad-hoc programmes 29.28 29.25 26.52 26.47 2.75 2.78 3.01 3.04
4Policy strategy and coordination for Development 
and relations with ACP States policy area17.20 20.00 9.60 9.94 7.60 10.06 17.15 20.00
422 - ELARG Management of the Instrument for Pre-Accession 868.18 1 551.18 868.18 1 551.18 867.94 914.71
4 Information and communication strate gy 11.80 5.39 11.80 5.39 7.00 0.98
423 - ECHOHumanitarian aid including aid to uprooted 
people, food aid and disaster preparedness731.43 731.30 731.43 731.30 713.34 707.60
4+5 Administrative expenditure of External assistance (*) 462.72 427.61 316.76 300.62 145.96 126.99 451.05 420.32
TOTAL 6 988.76 7 822.76 4 407.91 3 938.83 2 580.85 3 883.92 6 516.75 5 678.77
(*) Includes administrative cost of EDF management charged to heading 5. 
     Total ODA (Budget + EDF) administrative cost (from headings 4 & 5 and EDF adm. envelope) shown in tables 6.11 & 6.12
Breakdown by budget line of external aid financed on the General Commission Budget in 2007. (Amount in € Million) Heading / Policy 
AreaFig.6.3. General Commission Budget for External Assistance in 2007.
Managed by 
EuropeAidManaged by other 
DG'sof which ODA
 
EN 151   EN Of Which ODA
Instruments (1) Commitments (2) Payments (3) Commitments (2) Payments (3)
6th, 7th, 8th EDF
National + regional indicative programmes (NIP/RIP) -                  388                -                  387                
Interest-rate Subsidies -                  1                    -                  1                    
Emergency Aid -                  -                  -                  -                  
Aid for Refugees -                  2                    -                  2                    
Risk Capital -                  58                  -                  58                  
Stabex 6                    98                  6                    98                  
SYSMIN -                  23                  -                  22                  
Structural Adjustment Facility -                  0                    -                  0                    
Transferred Funds (prior to 6th EDF) -                  0                    -                  0                    
Use of interests -                  -                  -                  -                  
Total 6                    572                6                    569                
9th EDF & Transitional measures
Envelope A 1 981             1 642             1 927             1 624             
Envelope B 296                217                292                217                
Regional Project 252                136                250                136                
Intra ACP Project 946                235                838                178                
Implementation expenditure + Congo Rep. Dem. 49                  38                  49                  38                  
Studies + tech. Assist. to Overseas Countries and Territories -                  1                    -                  1                    
Transferred Funds ( 6th EDF) -                  7                    -                  7                    
Peace facility (Voluntary contributions) 39                  29                  -                  -                  
Other 67                  43                  67                  43                  
Total 3 630             2 348             3 424             2 244             
Total EDF 3 636             2 920             3 430             2 814             
(1) Except The Investment Facility (9th EDF) managed by the EIB
(2) Commitments 2007 have been calculated following DAC procedures :
 Total commitments made in 2007 reduced by decommitments made on projects committed in 2007
(3) Before recoveriesFig.6.4. European Development Fund (EDF) in 2007
Breakdown by instrument of development assistance financed on the European Development Fund (EDF) in 2007. (Amount 
in € Million)
 
EN 152   EN Commitments ( € Million )
ODA OA non ODA/OA Total
Budget EuropeAId4 300         66              42              4 408         
EDF3 430         59              147            3 636         
Budget Non EuropeAId2 217         19              345            2 581         
Total 9 947         144            534            10 625       Fig.6.5. Proportion of  External Assistance used for Development Aid (ODA and OA).
- 500 1 000 1 500 2 000 2 500 3 000 3 500 4 000 4 500 5 000
Budget EuropeAId
EDF
Budget Non EuropeAId
ODA OA non ODA/OA
 
EN 153   EN Fig.6.6. Relation between ODA and OA in the Development Aid of the EC in 2007.
Commitments ( € Million )
( € Million )
Commitments Payments Commitments Payments Commitments Payments
Official Development Assistance (ODA) 9 947      8 493      7 730      6 572      2 217      1 921      9 947 M€
Official Aid (OA) 144         1 441      125         147         19           1 294      144 M€Grand total Managed by EuropeAid Managed by Other DG'sOfficial Development 
Assistance (ODA), 9 
947 M€, 99%Official Aid (OA), 144 
M€, 1%
 
EN 154   EN Fig.6.7. Regional distribution of aid to developing countries (ODA) in 2007.
Commitments ( € Million )
( € Million )
Region Commitments Payments Commitments Payments Commitments Payments
Europe 1 566      1 062      345         123         1 221      939         
Africa, North of Sahara 521         692         512         680         9             12           
Africa, South of Sahara 3 166      3 087      2 748      2 688      418         399         
Asia : Middle East 743         574         619         467         124         107         
Asia : South & Central,  Far East 984         922         859         782         125         140         
America 820         776         760         724         60           52           
Oceania 141         52           141         51           1             1             
Developing countries unallocated 1 575      856         1 342      617         233         239         
ODA Multilateral Aid,Total 430         472         403         440         27           32           
TOTAL ODA 9 947      8 493      7 730      6 572      2 217      1 921      
(1) Following OECD region. 
Cfr next table "Country breakdown of EC Development Aid (ODA and OA) in 2007".Grand total Managed by EuropeAid Managed by Other DG'sEurope, 1 566 M€, 16%
Africa, South of Sahara, 3 
166 M€, 33%Asia : South & Central, 
Far East, 984 M€, 10%America, 820 M€, 8%Oceania, 141 M€, 1%Developing countries 
unallocated, 1 575 M€, 
16%ODA Multilateral Aid,Total, 
430 M€, 4%
Africa, North of Sahara, 
521 M€, 5%
Asia : Middle East, 743 
M€, 7%
 
EN 155   EN Fig.6.8. Regional distribution of aid to developing countries (ODA) 2003-2007.
Commitments ( € Million )
2003 2004 2005 2006 2007
Europe 835        996        1 144     1 532     1 566     
Africa 3 439     2 910     4 143     3 806     3 687     
North Of Sahara 417        480        503        543        521        
South Of Sahara 3 019     2 428     3 640     2 867     3 113     
Regional 3            2            1            396        53          
America 692        609        605        759        820        
North & Central 419        317        331        505        387        
South 257        230        211        214        334        
Regional 16          63          62          40          100        
Asia 1 304     1 357     1 641     1 852     1 728     
Middle East 466        398        420        587        743        
South & Central 584        517        858        831        739        
Far East 196        391        214        347        164        
Regional 57          52          149        88          81          
Oceania 60          52          87          32          141        
Developing countries unallocated 1 042     1 172     1 189     1 245     1 575     
ODA Multilateral Aid,Total 897        441        479        605        430        
TOTAL ODA 8 269     7 538     9 287     9 832     9 947     
Payments ( € Million )
2003 2004 2005 2006 2007
Europe 640        733        780        1 069     1 062     
Africa 2 645     2 916     3 161     3 341     3 779     
North Of Sahara 346        558        559        658        692        
South Of Sahara 2 299     2 357     2 602     2 683     3 024     
Regional 1            2            0            0            63          
America 502        535        645        666        776        
North & Central 228        308        305        365        454        
South 210        152        233        246        275        
Regional 64          75          107        56          47          
Asia 1 126     1 302     1 484     1 596     1 496     
Middle East 409        511        420        494        574        
South & Central 463        526        661        699        604        
Far East 202        210        257        295        263        
Regional 52          55          147        108        55          
Oceania 40          54          73          64          52          
Developing countries unallocated 777        876        846        790        856        
ODA Multilateral Aid,Total 602        510        508        602        472        
TOTAL ODA 6 331     6 926     7 497     8 130     8 493     
Bilateral and Multilateral ODA flows.
(1) Following OECD region. 
Cfr next table "Country breakdown of EC Development Aid (ODA and OA) in 2007". 
EN 156   EN ( € Million )
Commitment sPayments Commitment sPayments Commitment sPayments
Europe, Total 1 566.00 1 061.96 345.28 123.11 1 220.71 938.86
Albania 50.48 36.75 1.53 50.48 35.22
Belarus 10.00 5.04 10.00 5.02 0.01
Bosnia-Herzegovina 57.31 50.61 1.52 57.31 49.09
Croatia 105.59 73.68 0.25 105.59 73.44
Macedonia (fYRoM) 47.28 46.19 0.16 47.28 46.03
Moldova 88.06 48.40 40.00 25.92 48.06 22.48
Montenegro 23.92 23.06 23.92 23.06
Serbia 240.46 198.03 0.79 240.46 197.24
Turkey 481.52 401.25 1.98 481.52 399.27
Ukraine 166.59 65.01 166.20 64.51 0.39 0.50
States of ex-Yugoslavia unspecif. 7.35 2.25 2.14 7.35 0.10
Europe, Regional 287.43 111.69 129.08 19.28 158.35 92.42
Africa, Total 3 686.76 3 778.57 3 259.79 3 367.54 426.97 411.03
North Of Sahara, Total 521.11 691.89 512.20 679.74 8.90 12.14
Algeria 63.78 62.98 57.00 52.23 6.78 10.76
Egypt 139.04 161.19 137.00 160.35 2.04 0.84
Libya 2.00 0.82 2.00 0.42 0.39
Morocco 190.06 225.34 190.00 225.30 0.06 0.04
Tunisia 103.03 98.10 103.00 98.09 0.03 0.01
North Of Sahara, Regional 23.20 143.45 23.20 143.35 0.10
South Of Sahara, Total 3 112.98 3 023.71 2 694.91 2 624.91 418.07 398.81
Angola 19.10 47.38 19.03 46.73 0.08 0.65
Benin 72.11 59.83 72.10 59.83 0.01 0.01
Botswana 3.65 25.36 3.65 25.35 0.01 0.01
Burkina Faso 43.08 145.20 36.02 140.02 7.06 5.17
Burundi 82.26 88.91 62.64 69.67 19.62 19.25
Cameroon 36.22 55.97 36.21 55.90 0.02 0.08
Cape Verde 9.72 11.92 9.72 11.92 0.00
Central African Rep. 36.55 21.91 33.55 19.38 3.00 2.53
Chad 96.72 56.47 53.62 24.38 43.10 32.09
Comoros 3.92 9.89 3.92 9.89
Congo, Dem. Rep. 137.87 115.43 79.76 61.88 58.11 53.55
Congo, Rep. 23.64 27.40 23.64 26.77 0.63
Cote d'Ivoire 29.72 51.26 29.21 49.49 0.51 1.77
Djibouti 21.90 4.13 21.90 4.13
Equatorial Guinea 4.38 1.52 4.38 1.52
Eritrea 57.82 26.73 51.81 19.40 6.01 7.33
Ethiopia 220.38 244.39 196.95 225.61 23.43 18.78
Gabon 5.60 9.51 5.59 9.50 0.01 0.01
Gambia 9.01 6.72 9.01 6.72
Ghana 109.35 62.44 108.66 61.87 0.69 0.57
Guinea 87.55 23.66 84.15 19.94 3.40 3.72
Guinea-Bissau 49.25 32.82 48.63 32.33 0.61 0.49
Kenya 90.93 100.06 81.23 87.26 9.70 12.80
Lesotho 44.24 13.42 41.29 11.00 2.95 2.42
Liberia 59.92 28.83 43.30 10.59 16.62 18.24
Madagascar 84.48 125.50 79.48 121.31 5.01 4.19
Malawi 38.41 56.21 38.37 55.88 0.03 0.33
Mali 37.91 130.71 34.90 129.13 3.01 1.58
Mauritania 23.76 60.29 19.61 57.82 4.16 2.47
Mauritius 80.74 20.54 75.87 18.00 4.87 2.54
Mayotte 20.53 0.43 20.53 0.43Managed by EuropeAid Managed by Other DG's
Part I: Developing Countries & 
Territories Country/RegionTotalFig.6.9. Country breakdown of EC Development Aid (ODA and OA) in 2007.
 
EN 157   EN Mozambique 112.95 170.81 108.93 166.15 4.02 4.66
Namibia 14.11 20.53 14.10 20.53 0.01 0.01Niger 24.94 83.72 18.78 77.71 6.16 6.01
Nigeria 123.24 57.66 122.90 57.39 0.34 0.28
Rwanda 55.12 58.27 55.06 57.51 0.06 0.77
St.Helena 2.20 2.50 2.20 2.50
Sao Tome & Principe 5.45 2.85 5.45 2.85
Senegal 72.67 63.74 72.00 61.48 0.67 2.26
Seychelles 0.09 0.88 0.09 0.88
Sierra Leone 54.36 52.62 54.35 51.63 0.01 0.99
Somalia 62.18 57.43 44.88 40.74 17.30 16.69
South Africa 154.02 105.67 154.00 105.66 0.02 0.01
Sudan 158.04 186.04 51.98 68.03 106.06 118.02
Swaziland 22.91 9.15 20.03 6.79 2.88 2.36
Tanzania 60.21 141.61 48.07 128.12 12.14 13.49
Togo 64.63 22.70 63.43 21.27 1.20 1.43
Uganda 59.64 92.85 31.31 72.14 28.33 20.71
Zambia 41.80 60.19 41.79 60.13 0.02 0.06
Zimbabwe 68.80 44.54 42.75 25.78 26.05 18.76
South Of Sahara, Regional 314.88 125.12 314.08 124.01 0.79 1.11
Africa, Regional 52.68 62.96 52.68 62.89 0.08
America, Total 820.38 776.10 760.40 723.73 59.98 52.37
North & Central, Total 386.69 454.39 365.93 436.24 20.75 18.15
Anguilla 3.95 3.95
Antigua & Barbuda 0.50 1.92 0.50 1.92
Barbados 11.15 4.45 11.13 4.44 0.01 0.01
Belize 8.31 3.89 8.00 3.74 0.31 0.15
Costa Rica 0.05 5.78 5.68 0.05 0.10
Cuba 0.03 1.53 1.45 0.03 0.08
Dominica 18.42 10.53 18.42 10.53
Dominican Republic 14.23 76.14 10.00 73.68 4.23 2.46
El Salvador 0.45 18.38 17.05 0.45 1.32
Grenada 11.59 0.86 11.59 0.62 0.24
Guatemala 14.64 22.47 14.60 21.18 0.04 1.29
Haiti 79.45 71.44 72.52 69.73 6.94 1.71
Honduras 9.89 30.18 9.00 28.47 0.89 1.71
Jamaica 58.27 34.92 58.24 34.90 0.02 0.02
Mexico 6.33 7.96 6.27 7.89 0.05 0.07
Montserrat 6.57 2.60 6.57 2.60
Nicaragua 26.12 64.17 19.30 56.83 6.82 7.34
Panama 0.01 2.16 2.07 0.01 0.09
St.Kitts-Nevis 13.06 0.68 13.06 0.68
St.Lucia 8.16 3.23 8.16 3.23
St.Vincent & Grenadines 15.53 10.33 15.53 10.33
Trinidad & Tobago 6.30 9.01 6.30 9.01 0.00 0.00
Turks & Caicos Islands 4.00 8.91 4.00 8.52 0.40
West Indies, Regional 1.55 18.45 1.55 18.45
N. & C. America, Regional 68.13 44.41 67.24 43.25 0.89 1.15
South, Total 333.69 274.59 294.47 240.41 39.22 34.17
Argentina 12.91 4.46 12.70 4.18 0.21 0.28
Bolivia 45.47 32.04 41.38 29.75 4.09 2.29
Brazil 2.10 18.76 2.00 18.63 0.10 0.12
Chile 25.45 9.14 25.42 9.12 0.03 0.02
Colombia 29.15 53.89 10.40 36.79 18.75 17.10
Ecuador 20.45 25.50 18.90 24.31 1.55 1.19
Guyana 64.28 12.72 63.92 12.34 0.36 0.39
Paraguay 1.71 16.80 0.03 15.45 1.68 1.35
Peru 28.57 47.63 17.00 38.68 11.57 8.95
Suriname 8.75 16.11 8.55 15.94 0.21 0.17
Uruguay 20.03 6.74 20.00 6.71 0.03 0.03
Venezuela 8.78 13.49 8.14 13.02 0.64 0.47
South America, Regional 66.05 17.32 66.05 15.50 1.82
America, Regional 100.00 47.13 100.00 47.08 0.05
 
EN 158   EN Asia, Total 1 727.55 1 495.93 1 478.61 1 249.14 248.94 246.79
Middle East, Total 743.37 573.98 619.32 466.92 124.05 107.07
Bahrain
Iran 7.14 7.33 0.64 7.14 6.70
Iraq 21.80 17.87 14.00 14.65 7.80 3.22
Jordan 90.88 49.19 88.68 47.63 2.20 1.55
Lebanon 74.96 56.30 47.08 32.23 27.88 24.06
Oman
Palestinian Admin. Areas 467.70 389.95 394.76 323.68 72.94 66.26
Saudi Arabia 0.01 0.01
Syria 34.03 34.71 29.00 31.57 5.03 3.15
Yemen 21.50 12.96 20.50 10.84 1.00 2.12
Middle East, Regional 25.36 5.67 25.30 5.67 0.07
South & Centr. Asia, Total 739.09 603.96 630.25 518.68 108.84 85.28
Afghanistan 195.84 224.60 180.30 211.37 15.54 13.24
Armenia 31.55 14.98 31.29 14.90 0.27 0.09
Azerbaijan 20.35 6.60 19.00 5.38 1.35 1.22
Bangladesh 89.16 74.11 70.50 65.76 18.66 8.35
Bhutan 0.06 2.62 2.62 0.06Georgia 29.86 20.49 27.09 17.92 2.78 2.57
India 144.94 65.47 129.50 56.07 15.44 9.40
Kazakhstan 19.09 6.89 19.00 6.70 0.09 0.19
Kyrgyz Rep. 13.60 14.52 13.60 13.42 1.11
Maldives 5.36 5.30 0.06
Myanmar (Burma) 45.60 14.36 26.02 8.42 19.57 5.93
Nepal 40.69 18.05 29.00 6.92 11.69 11.13
Pakistan 33.18 49.57 25.67 38.14 7.51 11.43
Sri Lanka 18.43 39.34 4.00 24.55 14.43 14.78
Tajikistan 23.02 11.65 23.01 7.61 0.01 4.05
Turkmenistan 6.00 1.80 6.00 1.52 0.28
Uzbekistan 0.10 7.57 0.10 6.98 0.59
Central Asia, Regional 20.03 21.88 18.90 21.88 1.13
South Asia, Regional 7.60 0.00 7.29 0.31 0.00
South & Central Asia, Regional 4.08 3.23 0.85
Far East, Total 163.65 263.14 147.59 214.88 16.06 48.26
Cambodia 23.88 32.76 23.85 31.17 0.03 1.59
China 8.33 40.91 7.50 40.50 0.83 0.40
Indonesia 13.84 40.85 12.00 34.42 1.84 6.43
Korea, Dem. 10.00 12.13 8.00 1.49 2.00 10.64
Laos 10.42 6.51 10.40 5.91 0.02 0.61
Malaysia 0.01 0.28 0.27 0.01 0.01
Mongolia 10.00 1.63 10.00 1.28 0.35
Philippines 15.21 25.12 13.00 20.61 2.21 4.51
Thailand 14.88 22.08 11.50 7.10 3.38 14.98
Timor-Leste 21.34 28.91 18.34 23.46 3.00 5.45
Viet Nam 35.09 49.46 33.00 46.18 2.09 3.28
Far East Asia, Regional 0.65 2.49 2.49 0.65
Asia, Regional 81.45 54.86 81.45 48.67 0.00 6.19
 
EN 159   EN Oceania, Total 141.49 52.24 140.78 51.42 0.71 0.82
Cook Islands 1.00 0.27 1.00 0.27
Fiji 2.77 7.87 2.75 7.78 0.02 0.09
Kiribati 2.20 2.81 2.20 2.61 0.20
Marshall Islands 1.80 1.03 1.80 1.03
Micronesia, Fed. Sts. 2.12 0.50 2.12 0.50
Nauru 0.77 0.18 0.77 0.18
Niue 0.35 0.35
Palau 0.90 0.24 0.90 0.24
Papua New Guinea 49.74 17.62 49.71 17.62 0.02 0.01
Samoa 2.24 1.83 2.24 1.83
Solomon Islands 13.94 2.35 13.38 1.91 0.55 0.44
Tokelau
Tonga 3.42 0.19 3.42 0.19
Tuvalu 0.70 1.03 0.70 1.03
Vanuatu 5.16 3.71 5.05 3.63 0.11 0.09
Wallis & Futuna 16.32 0.08 16.32 0.08
Oceania, Regional 38.42 12.16 38.42 12.16 0.00 0.00
LDC's Unspecified 1 574.83 855.94 1 342.14 616.58 232.68 239.36
9 517.01 8 020.75 7 327.01 6 131.53 2 190.00 1 889.22
Public Private Partnerships 1.54 1.54
United Nations 174.49 229.21 150.08 200.17 24.41 29.03
UNRWA 66.00 65.92 66.00 65.92
UNDP 37.00 25.00 35.00 25.00 2.00
WFP 85.51 85.51
WHO 2.78 2.78
FAO 14.61 6.83 14.58 6.79 0.03 0.04
World Bank Group 98.00 114.72 98.00 114.72
Regional Development Banks 10.00 18.98 10.00 18.98
Other Multilateral Institutions 146.26 106.04 145.00 104.75 1.26 1.29
GFTAM 100.00 62.00 100.00 62.00
Others 1.50 1.49 1.50 1.49
Part I (ODA ) Multilateral Aid,Total 430.24 471.97 403.08 440.16 27.16 31.81
Part I (ODA ), Total 9 947.25 8 492.72 7 730.08 6 571.69 2 217.17 1 921.04Part I (ODA) Bilateral, Total
 
EN 160   EN More Advanced Developing Countries 61.03 28.14 60.66 20.67 0.37 7.47
Aruba 1.43 3.94 1.43 3.94
Bahamas 1.87 0.14 1.69 0.18 0.14
Bermuda
Brunei
Cayman Islands 3.30 3.30
Chinese Taipei (Taiwan) 0.03 0.04 0.03 0.04
Cyprus 0.25 0.25
Falkland Islands 1.50 1.51 1.50 1.51
French Polynesia 2.29 2.29
Gibraltar
Hong Kong, China 0.02 0.02
Israel 2.01 0.93 2.00 0.87 0.01 0.06
Korea 0.06 0.03 0.06 0.03
Kuwait
Macao
Malta 1.73 1.73
Netherlands Antilles 43.61 1.70 43.61 1.70
New Caledonia 5.23 5.23
Northern Marianas
Qatar
Singapore 0.09 0.09 0.09 0.09
Slovenia 5.11 5.11
United Arab Emirates
Virgin Islands (UK) 1.00 1.00
MADCT Unallocated 6.13 5.13 6.13 5.13
CEEC's/NIS 82.69 1 410.20 64.27 126.47 18.42 1 283.73
Bulgaria 238.61 0.05 238.57
Czech Republic 15.08 15.08
Estonia 6.12 6.12
Hungary 53.30 53.30
Latvia 20.68 20.68
Lithuania 25.41 25.41
Poland 226.81 0.04 226.77
Romania 579.85 579.85
Russia 80.92 126.82 62.74 102.89 18.18 23.93
Slovak Republic 5.63 0.01 5.62
CEEC's Unallocated 1.77 82.92 1.53 1.51 0.24 81.41
NIS Unallocated 20.97 20.97
CEEC's/NIS Unallocated 8.00 1.00 7.00
143.72 1 438.34 124.93 147.14 18.78 1 291.20
EBRD 3.04 3.04
3.04 3.04
Part II (OA), Total 143.72 1 441.38 124.93 147.14 18.78 1 294.24
10 090.97 9 934.10 7 855.02 6 718.83 2 235.95 3 215.27
Bilateral and Multilateral ODA / OA flows.Grand Total Part I & Part II (ODA+OA)Part II: Countries and Territories in 
Transition - Official Aid (OA) 
Part II (OA) Bilateral Aid, Total
Part II (OA) Multilateral Aid, Total
Breakdown by country/region of external aid financed on the General Commission Budget and the European 
Development Fund (EDF) in 2007.
 
EN 161   EN Fig.6.10. Sectoral breakdown of ODA managed by the EC in 2007.
Commitments in € Million1. Social Infrastructures: 
Education, Health, Water, 
Government & Civil 
Society, Other , 4 263 M€, 
42.9%5. Budget Support, Food 
Aid, Food Security, 988 M€, 
9.9%6. Action relating to debt, 
23 M€, 0.2%9. Other/Unallocated : 
Admin. Costs, Support to 
NGOs, Unspecified, 608 
M€, 6.1%
3. Production : Agriculture, 
Forestry & Fishing, 
Industry, Mining & 
Construction, Trade & 
Tourism, 718 M€, 7.2%4. Multisector/Crosscutting 
: Environment, Other, 873 
M€, 8.8%7. Humanitarian Aid, 1 064 
M€, 10.7%
2. Economic Infrastructures 
& Services : Transport, 
Communications, Energy, 
Other services, 1 411 M€, 
14.2%
 
EN 162   EN Commitments ( € Million )
Sector of Destination TotalManaged by 
Euro peAidManaged by 
Other DG's
SOCIAL INFRASTRUCTURE AND SERVICES 4 262.58 3 561.95 700.64
595.63 496.62 99.01
Education, level unspecified 250.61 209.21 41.40
Basic education 102.03 97.27 4.76
Secondary education 66.42 52.42 14.00
Post-secondary education 176.57 137.72 38.85
Health 430.42 422.62 7.80
Health, general 73.17 65.37 7.80
Basic health 357.25 357.25
Population polices/programs and reproductive health 65.42 63.04 2.38
Water supply and sanitation 337.65 308.15 29.50
Government and civil societ y 1 952.71 1 497.01 455.70
Other Social Infrastructure 880.76 774.50 106.26
ECONOMIC INFRASTRUCTURE AND SERVICES 1 410.96 1 124.92 286.04
Transport and storage 706.95 575.35 131.60
Communications 55.83 50.50 5.33
Energy generation and supply 393.75 334.46 59.29
Banking and financial services 35.05 28.00 7.05
Business and other services 219.39 136.62 82.77
PRODUCTION SECTORS 717.86 661.18 56.68
Agriculture, Forestry and Fishing 340.87 309.31 31.56
Agriculture 279.81 256.70 23.11
Forestry 16.00 16.00
Fishing 45.07 36.61 8.46
Industry, Mining and Construction 167.01 150.53 16.49
Industry 167.01 150.53 16.49
Mineral resources and mining
Construction
Trade and Tourism 209.97 201.34 8.63
Trade policy and regulation 194.67 187.04 7.63
Tourism 15.30 14.30 1.00
MULTISECTOR/CROSSCUTTING 873.36 674.05 199.31
General environmental protection 263.26 149.01 114.25
Other multisector 610.11 525.04 85.07
COMMODITY AID AND GENERAL PROGRAMME ASSISTANCE 987.52 906.02 81.50
General budget support 715.97 658.47 57.50
Development food aid/food security assistance 271.56 247.56 24.00
Other commodity assistance
ACTION RELATING TO DEBT 22.82 22.82
Action relating to debt 22.82 22.82
HUMANITARIAN AID 1 064.22 356.58 707.64
Emergency Response 832.59 144.77 687.82
Reconstruction relief and rehabilitation 160.35 159.85 0.50
Disaster prevention and preparedness 71.28 51.96 19.32
OTHER/UNALLOCATED/UNSPECIFIED 607.92 422.56 185.35
Administrative costs of donors 501.54 365.73 135.81
Support to non-governmental organisations 0.75 0.75
Unallocated/unspecified 105.63 56.09 49.54
9 947.25 7 730.08 2 217.17
Bilateral and Multilateral ODA flows.GRAND TOTALFig.6.11. Detailed description of ODA by sector in 2007 - Commitments.
Education
Breakdown by sector of Official Development Assistance (ODA) financed on the General Commission Budget and 
the European Development Fund (EDF) in 2007.
 
EN 163   EN Payments ( € Million )
Sector of Destination TotalManaged by 
Euro peAidManaged by 
Other DG's
SOCIAL INFRASTRUCTURE AND SERVICES 3 439.82 2 712.83 726.99
546.31 440.53 105.78
Education, level unspecified 116.12 95.74 20.37
Basic education 157.17 112.19 44.98
Secondary education 100.61 77.94 22.66
Post-secondary education 172.41 154.65 17.76
Health 446.83 377.28 69.55
Health, general 49.90 48.44 1.46
Basic health 396.93 328.84 68.09
Population polices/programs and reproductive health 101.60 87.36 14.24
Water supply and sanitation 266.62 256.77 9.85
Government and civil societ y 1 321.59 831.38 490.21
Other Social Infrastructure 756.88 719.51 37.37
ECONOMIC INFRASTRUCTURE AND SERVICES 1 209.49 1 092.96 116.53
Transport and storage 805.65 788.85 16.80
Communications 32.76 28.15 4.61
Energy generation and supply 202.98 142.81 60.17
Banking and financial services 54.52 54.02 0.50
Business and other services 113.58 79.13 34.45
PRODUCTION SECTORS 635.35 597.89 37.47
Agriculture, Forestry and Fishing 289.08 273.04 16.04
Agriculture 230.51 219.70 10.81
Forestry 40.21 40.21
Fishing 18.36 13.13 5.24
Industry, Mining and Construction 177.08 171.59 5.49
Industry 134.82 129.40 5.42
Mineral resources and mining 42.17 42.17
Construction 0.09 0.02 0.07
Trade and Tourism 169.20 153.26 15.94
Trade policy and regulation 158.39 143.27 15.12
Tourism 10.80 9.99 0.82
MULTISECTOR/CROSSCUTTING 620.42 457.54 162.88
General environmental protection 165.57 142.57 23.00
Other multisector 454.85 314.97 139.89
COMMODITY AID AND GENERAL PROGRAMME ASSISTANCE 962.39 929.24 33.15
General budget support 689.66 669.53 20.13
Development food aid/food security assistance 272.73 259.71 13.02
Other commodity assistance
ACTION RELATING TO DEBT
Action relating to debt
HUMANITARIAN AID 1 080.48 379.70 700.78
Emergency Response 848.25 166.23 682.02
Reconstruction relief and rehabilitation 214.79 213.34 1.46
Disaster prevention and preparedness 17.44 0.13 17.30
OTHER/UNALLOCATED/UNSPECIFIED 544.76 401.53 143.24
Administrative costs of donors 481.56 359.96 121.60
Support to non-governmental organisations 0.37 0.33 0.04
Unallocated/unspecified 62.84 41.24 21.60
8 492.72 6 571.69 1 921.04
Bilateral and Multilateral ODA flows.Fig.6.12. Detailed description of ODA by sector in 2007. - Payments.
Breakdown by sector of Official Development Assistance (ODA) financed on the General Commission Budget and 
the European Development Fund (EDF) in 2007.Education
GRAND TOTAL
 
EN 164   EN Commitments ( € Million )
ENPI 
EastENPI 
SouthAsiaLatin 
AmericaACPMulti 
RegionTotal
SOCIAL INFRASTRUCTURE AND SERVICES 187 978 489 181 1 427 340 3 603
5 5 1 6 9 1 0 57 08 82 2 5 0 8
Education, level unspecified 120 48 11 30 209
Basic education 17 35 16 7 22 97
Secondary education 16 5 12 19 52
Post-secondary education 39 32 16 31 31 149
Health 40 167 0 154 62 423
Health, general 40 5 21 65
Basic health 162 0 133 62 357
Population polices/pro grams and reproductive health 27 5 4 6 3
Water supply and sanitation 73 1 9 23 2 8
Government and civil societ y 111 252 193 96 600 255 1 507
Other Social Infrastructure 21 515 25 1 212 775
ECONOMIC INFRASTRUCTURE AND SERVICES 208 76 39 57 751 32 1 162
Transport and storage 16 24 545 584
Communications 12 7 32 51
Energy generation and supply 192 138 32 363
Banking and financial services 15 13 28
Business and other services 6 1 35 02 3 1 3 7
PRODUCTION SECTORS 65 56 72 2 5 1 3 6 6 4
Agriculture, Forestry and Fishing 61 2 1 0 2 8 2 3 0 9
Agriculture 12 10 235 257
Forestry 6 10 16
Fishing 37 37
Industry, Mining and Construction 40 25 6 80 151
Industry 40 25 6 80 151
Mineral resources and mining
Construction
Trade and Tourism 15 30 6 152 204
Trade policy and regulation 15 30 6 137 189
Tourism 15 15
MULTISECTOR/CROSSCUTTING 82 81 33 110 333 73 713
General environmental protection 14 3 5 15 54 6 1 5 0
Other multisector 82 38 28 109 279 27 562
COMMODITY AID AND GENERAL PROGRAMME ASSISTANCE 6 1 02 4 8 05 3 21 1 09 0 6
General budget support 173 486 658
Development food aid/food security assistance 6 10 76 0 46 110 248
Other commodity assistance
ACTION RELATING TO DEBT 23 23
Action relating to debt 23 23
HUMANITARIAN AID 42 66 8 2 6 1 3 6 0
Emer gency Response 43 7 1 0 4 1 4 5
Reconstruction relief and rehabilitation 41 83 1 1 1 0 1 6 3
Disaster prevention and preparedness 44 8 5 2
OTHER/UNALLOCATED/UNSPECIFIED 38 12 6 2 51 315 424
Administrative costs of donors 2 0 0 0 51 315 367
Support to non-governmental organisations 11
Unallocated/unspecified 3 7 1 25201 5 6
532 1 239 950 373 3 891 871 7 855Sector of Destination
Breakdown by sector and Region of external aid financed on the General Commission Budget managed by EuropeAid and the 
European Development Fund (EDF).GRAND TOTAL
On budget side, region is identified following geographical budget lines and recipient countries for thematic budget lines.Bilateral and Multilateral ODA / OA flows.Fig.6.13. EuropeAid in 2007: A closer look. Sectoral breakdown per region.
Education
ACP  : South Of Sahara + Oceania + Anguilla, Antigua & Barbuda, Barbados, Belize, Dominica, Dominican Republic, Grenada, Haiti, 
Jamaica, Montserrat, St.Kitts-Nevis, St.Lucia, St.Vincent & Grenadines, Trinidad & Tobago, Turks & Caicos Islands, West Indies,  
Regional, Guyana, Suriname
Multi region  : covering several regions or unspecified location.ENPI East  : Europe + Armenia, Azerbaijan, Georgia. Russia.
ENPI South  : North Of Sahara + Jordan, Lebanon, Libya, Palestinian Admin. Areas, Syria, Israel.
Asia  : Iran, Iraq, Oman, Saudi Arabia, Yemen, Afghanistan, Bangladesh, Bhutan, India, Kazakhstan, Kyrgyz Rep., Maldives, Myanmar 
(Burma), Nepal, Pakistan, Sri Lanka, Tajikistan, Turkmenistan, Uzbekistan, Cambodia, China, Indonesia, Korea, Dem., Laos, Malay sia, 
Mongolia, Philippines, Thailand, Timor-Leste, Viet Nam.
Latin America : Costa Rica, Cuba, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Argentina, Bolivia, Brazil, Chile, 
Colombia, Ecuador, Paraguay, Peru, Uruguay, Venezuela
 
EN 165   EN Commitments ( € Million )
ENPI EDFDCI - 
Geo (1)DCI - 
Thema 
(2)EIDHR IFS NSI Other Total
SOCIAL INFRASTRUCTURE AND SERVICES 1 161 1 247 720 322 133 9 10 3 603
224 88 171 22 4 508
Education, level unspecified 120 30 59 209
Basic education 17 7 51 22 97
Secondary education 16 19 17 52
Post-secondary education 71 31 44 4 149
Health 40 154 167 62 423
Health, general 40 21 5 0 65
Basic health 133 162 62 357
Population polices/programs and reproductive health 25 4 7 6 3
Water supply and sanitation 209 112 0 6 328
Government and civil societ y 359 546 226 238 133 4 0 1 507
Other Social Infrastructure 536 196 37 5 775
ECONOMIC INFRASTRUCTURE AND SERVICES 207 751 93 32 77 3 1 162
Transport and storage 16 545 24 584
Communications 32 19 51
Energy generation and supply 115 138 32 77 363
Banking and financial services 15 13 2 8
Business and other services 61 23 50 3 137
PRODUCTION SECTORS 61 372 112 90 29 664
Agriculture, Forestry and Fishing 6 181 22 83 17 309
Agriculture 135 22 83 17 257
Forestry 6 10 16
Fishing 37 37
Industry, Mining and Construction 40 43 61 7 151
Industry 40 43 61 7 151
Mineral resources and mining
Construction
Trade and Tourism 15 148 30 12 204
Trade policy and regulation 15 137 30 7 189
Tourism 11 5 15
MULTISECTOR/CROSSCUTTING 150 323 143 53 15 28 713
General environmental protection 43 55 6 47 150
Other multisector 107 269 137 6 15 28 562
COMMODITY AID AND GENERAL PROGRAMME ASSISTANCE 462 173 271 0 906
General budget support 416 173 70 658
Development food aid/food security assistance 46 201 0 248
Other commodity assistance
ACTION RELATING TO DEBT 23 23
Action relating to debt 23 23
HUMANITARIAN AID 30 261 68 360
Emergency Response 4 104 37 145
Reconstruction relief and rehabilitation 22 110 31 163
Disaster prevention and preparedness 44 8 5 2
OTHER/UNALLOCATED/UNSPECIFIED 57 50 53 64 9 3 1 186 424
Administrative costs of donors 38 50 47 33 9 3 1 186 367
Support to non-governmental organisations 11
Unallocated/unspecified 19 7 30 56
1 666 3 489 1 362 833 142 27 78 257 7 855
Bilateral and Multilateral ODA / OA flows.Fig.6.14. EuropeAid in 2007: A closer look. Sectoral breakdown per instrument.
EducationSector of Destination
(1) DCI - Geo : Asia, Latin America, South Africa
(2) DCI - Thema : Migration, Food security, Non-state actors, Environment, Human & social development, ACP sugar programmesBreakdown by sector and Region of external aid financed on the General Commission Budget managed by EuropeAid and the European Development 
Fund (EDF).GRAND TOTAL
 
EN 166   EN Fig.6.15. EuropeAid in 2007: A closer look. Sectoral breakdown per instrument.
Commitments %0% 20% 40% 60% 80% 100%
ENPI
EDF
DCI - Geo
DCI - Thema
EIDHR
IFS
NSI
Other
1. Social Infrastructures: Education, Health, Water, Government & Civil Society, Other 
2. Economic Infrastructures & Services : Transport, Communications, Energy, Other services
3. Production : Agriculture, Forestry & Fishing, Industry, Mining & Construction, Trade & Tourism
4. Multisector/Crosscutting : Environment, Other
5. Budget Support, Food Aid, Food Security
7. Emergency assistance, Reconstruction Relief
9. Other/Unallocated : Admin. Costs, Support to NGOs, Unspecified
 
EN 167   EN Commitments (€ million)
Payments (€ million)Fig.6.16. 2001-2007 External Assistance.
External aid financed on the General Commission Budget and the European Development Fund (EDF) managed by EuropeAid. 
Source : Annual Report 2001, 2002, 2003, 2004, 2005 and 2006
Bilateral and Multilateral ODA / OA / Other flows.01 0002 0003 0004 0005 0006 0007 0008 0009 00010 00011 00012 00013 000
2001 2002 2003 2004 2005 2006 2007EuropeAid Budget EuropeAid EDF non EuropeAid Budget Grand Total
01 0002 0003 0004 0005 0006 0007 0008 0009 00010 00011 00012 00013 000
2001 2002 2003 2004 2005 2006 2007EuropeAid Budget EuropeAid EDF non EuropeAid Budget Grand Total
 
EN 168   EN Commitments (€ million)
Payments (€ million)
External aid financed on the General Commission Budget and the European Development Fund (EDF).
Bilateral and Multilateral ODA / OA flows.Fig.6.17. 2001-2007 Official Development Assistance (ODA) and Official Aid (OA) by the 
EC.
Source : Annual Report 2001, 2002, 2003, 2004, 2005, 200602 0004 0006 0008 00010 00012 00014 000
2001 2002 2003 2004 2005 2006 2007Official Development Assistance Official aid
02 0004 0006 0008 00010 00012 000
2 001 2 002 2 003 2 004 2 005 2006 2007Official Development Assistance Official aid
 
EN 169   EN Commitments (€ million)
Bilateral and Multilateral ODA flows.Fig.6.18. 2001-2007 Sectoral breakdown of Official Development Assistance (ODA).
02 0004 0006 0008 00010 00012 000
2001 2002 2003 2004 2005 2006 20079. Other/Unallocated : Admin. Costs,
Support to NGOs, Unspecified
7. Emergency assistance,
Reconstruction Relief
6. Action relating to debt
5. Budget Support, Food Aid, Food
Security
4. Multisector/Crosscutting :Environment, Other
3. Production : Agriculture, Forestry &Fishing, Industry, Mining & Construction,
Trade & Tourism
2. Economic Infrastructures & Services :
Transport, Communications, Energy,
Other services
1. Social Infrastructures: Education,
Health, Water, Government & CivilSociety, Other