31. 12. 83 Official Journal of the European Communities No C 358/23 
DEFINITIONS OF SMEs 
USA 
Definitions vary according to sector: thus in manufacturing the ceiling set for certain branches 
(e.g. aeroengines, shipbuilding) is as high as 2 500 employees, while for others (e.g. electroplating, 
bookbinding) it is as low as 100 employees. In the service sector the upper limit for employees is 
much lower and is complemented by a figure for maximum turnover which again varies accord­
ing to branch, from $ 2 million to $ 9,5 million. 
JAPAN 
In Japan the ceiling in manufacturing is 300 employees or total net assets of 100 million yen; in 
the wholesale sector 100 employees or 30 million yen; and in retailing 50 employees or 10 million 
yen. 
Opinion on the memorandum on the Community's development policy 
A. LEGAL BASIS FOR THE OPINION 
As a follow-up in particular to its opinion of 23 February 1983 on defining new guide­
lines for closer cooperation between the ACP countries and the EEC, the Economic 
and Social Committee has delivered an additional opinion on this subject under the 
third paragraph of Article 20 of its Rules of Procedure. 
B. OPINION OF THE ECONOMIC AND SOCIAL COMMITTEE 
The Economic and Social Committee drew up its additional opinion on the above 
matter at its 211th plenary session held in Brussels on 26 and 27 October 1983. 
The full text of the opinion is as follows: 
THE ECONOMIC AND SOCIAL COMMITTEE, 
Having regard to the Treaty establishing the Euro­
pean Economic Community, and in particular 
Article 198 thereof, 
Having regard to the Commission's memorandum 
of 29 September 1982 on the Community's develop­
ment policy, 
Having regard to its Rules of Procedure, and in 
particular Article 20, paragraph 3, thereof, 
Having regard to the decision taken by its Bureau 
on 14 December 1982 instructing the Section for 
External Relations to draw up an additional opi­
nion on the 'non-ACP' aspects of the Commission's 
memorandum, Having regard to its previous opinions on the 
Lome Convention and various aspects of develop­
ment cooperation, and in particular its opinion of 
23 February 1983 on defining new guidelines for 
closer cooperation between the ACP countries and 
the EEC ('), 
Having regard to the opinion issued by the Section 
for External Relations at its meeting held on 
11 October 1983, 
Having regard to the report submitted by the rappor­
teur, Mr van Rens, 
(') OJ No C 90, 5. 4. 1983. 
No C 358/24 Official Journal of the European Communities 31. 12.83 
Having regard to the discussions at its 211th plenary 
session held on 26 and 27 October 1983 (meeting of 
26 October), 
HAS ADOPTED THE FOLLOWING OPINION 
unanimously: 
1. The Committee welcomes the publication of the 
memorandum, which evaluates the effects of Com­
munity instruments and policies and, on the basis of 
its findings, proposes ways of making them more 
effective. 
2. The Memorandum is a courageous contribution 
towards the strengthening of interest in the Com­
munity in the renovation of international economic 
relations. The Committee appreciates the Commis­
sion's attempt to initiate an exchange of views 
with the Member States on this subject. Jt must be 
hoped that this will lead to a better common 
development policy and cooperation in more areas. 
3. The Committee regrets that the memorandum 
does not accord greater importance to the social, 
cultural and human aspects of development. With­
out the human dimension all development measures 
are futile. Above all the greatest attention must be 
devoted to the recipients, viz. the local population: 
all development measures must be in response to a 
clearly felt need voiced by the communities con­
cerned; they must be drawn up by, and for, the per­
sons they will affect, so that the latter have a greater 
say in their own future. In this respect the Com­
munity's intention of placing its development oper­
ations on a more contractual footing merits special 
attention. 
4. Cooperation with developing countries must not 
be dictated solely by economic considerations — 
there is a need for justice. This means inter alia that 
such cooperation must give special attention to the 
poorest of the developing countries, to the poorest 
sections of the population in these countries, and to meeting basic economic and social needs. Interna­
tionally accepted standards of justice and human 
rights, such as those of the ILO, have a self-evident 
and logical place in cooperation and form an inte­
gral part of it. The general orientation of develop­
ment policy should aim to help people and their 
organized social structures to help themselves and to 
encourage them to participate in such development. 
5. The Committee has given its views on relations 
between the EEC and the ACP countries in a separ­
ate opinion. The memorandum rightly concentrates 
on these relations. Nevertheless the Committee feels 
that a place must be found in the policy for the 
other developing countries, especially the poorest. It 
urges the Commission to submit to the Council spe­
cific proposals designed in particular to give greater 
prominence to the poorest non-associated countries 
in the Community's policy. 
6. The Committee is pleased by the emphasis 
which the Commission places on food, agricultural 
and rural development. The concentration on basic 
needs in general is commendable. 
7. The Committee notes that the memorandum 
does not put forward an international strategy for 
economic recovery. Nor does it pay sufficient atten­
tion to the repercussions of development policy on 
other policies, both national and Community (CAP 
— trade — industry). 
8. The industrialized countries and in particular 
the European Community, the United States and 
Japan must rapidly come up with agreements which 
lead to economic revival. The primary international 
objectives must be: combating unemployment and 
increasing aid to and cooperation with the develop­
ing countries. The latter must have their due say in 
the recovery process. An attempt must be made to 
set specific economic-recovery targets wherever pos­
sible, e.g. by agreements on the size of the transfers 
to be made, on the implementation of the 0,7 % 
GNP aid objective (net ODA) and on attaining the 
1 % GNP aid objective by 1988. An increase in 
31. 12. 83 Official Journal of the European Communities No C 358/25 
development aid is not only good for the LDCs, but 
will also have a major impact on employment in the 
industrialized countries. 
9. In view of the massive increase in military 
spending in both the developed world (East and 
West) and in the developing countries, the Com­
mittee would like to see a link established between 
disarmament and development and less spent on 
arms and more on development. 
10. The Committee wants the Community to take 
a much more active part in the North-South dia­
logue. The EC should show more initiative in trying 
to foster aspirations for a new social and economic 
world order in which the benefits derived from 
natural resources are divided more equitably among 
nations, in which economic activity and its social 
consequences shift increasingly towards those com­
munities which need them most, and in which 
economic decisions are taken more often by those 
they will affect. 
The Committee points to the need for all the major 
countries or groups of countries, including the 
Soviet Union and USA, to work towards genuine 
North-South cooperation and just international rela­
tions. 
11. At the same time, South-South cooperation 
must be encouraged. The industrialized countries 
and especially the EEC can encourage regional 
economic development and interregional coopera­
tion by helping to improve trade, infrastructure, 
transport and communications. Regional and 
interregional cooperation must make a much bigger 
contribution to sound economic development. The 
emphasis on an increase in regional trade must not, 
however, be used as a pretext to oppose the opening 
up of the Community market. 
12. Because of the interdependence of the world's 
economies, there is a pressing need for agreements 
which lead to economic recovery and growth. These 
agreements must take greater account of the inter­
ests of the developing countries. Realignments in 
the international monetary system must be increas­
ingly based on a balanced relationship between the 
yen, the dollar and the ECU. The Committee is con­
cerned about the financial needs (debt position) of 
some of the major developing countries because this has an adverse effect on the position of the smaller 
LDCs and jeopardizes the stability of the interna­
tional monetary system. IMF facilities for develop­
ing countries must be expanded. In this connection 
the Committee expresses its regret at the outcome of 
the latest IMF annual meeting and thinks that the 
European Community as a body should play a more 
important role in the IMF. 
Finally, the Community should make a tangible 
contribution to monetary stability in the developing 
countries. 
13. The Committee endorses the principle of a dia­
logue with the recipient countries on general econo­
mic and other development issues in those sectors 
where the Community is providing aid. The admin­
istrative machinery available to the Community for 
this purpose should be reinforced. 
14. In its recent report and opinion on the next 
ACP-EEC Convention the Committee recom­
mended that priority be given to food, agricultural 
and rural development. It wishes to emphasize this 
once again. It refers to the recommendations in the 
report of the Section for External Relations and will 
here confine itself to a few aspects. 
15. Agricultural pricing policy is the most impor­
tant element of an integrated policy; sufficient 
attention should also be paid to other bottlenecks, 
in particular the lack of domestic purchasing power. 
The main thing must be that farmers should be able 
to sell their products in the marketplace for a rea­
sonable price and thus raise their standard of living. 
16. In many LDCs a large rise in the population 
poses a problem for the physical, socio-economic 
and/or cultural development of the country. The 
Committee is aware that the relationships between 
all these factors are very complicated and often vary 
from one country to another. For some people sensi­
tive moral and religious issues are also involved. 
While not wishing to go any deeper into this whole 
problem, the Committee stresses that in its relations 
with the LDCs the Community should seek, in a 
spirit of mutual understanding and respect, to help 
these countries solve the problems they are facing, 
with all their various aspects and interactions. 
No C 358/26 Official Journal of the European Communities 31. 12. 83 
17. Food aid should be given mainly as a part of 
the food strategies. The Committee endorses the 
idea that such strategies may extend over several 
years and may be consolidated by the use of coun­
terpart funds. 
18. The Community should help to improve agri­
cultural structures in the developing countries, 
including in particular the fight against desertifica­
tion, applied agronomic research into food crops, 
improvements in stock-farming, vocational training 
(especially for women) and, in general, all self-help 
schemes for rural communities. 
19. Through international commodity agreements 
the Community must help to improve the commer­
cial climate for the agricultural exports of the devel­
oping countries and adjust its own CAP accord­
ingly. 
20. The Committee agrees that LDCs should be 
classified on the basis of their level of economic 
development and the trade arrangements with them 
varied accordingly (e.g. greater reciprocity in agree­
ments with the relatively advanced countries). 
21. EC trade and industrial policies must be 
revamped to allow improved access to the EC mar­
ket for certain industrial products. The commitment 
to an open trading system which was made at the 
November 1982 GATT Ministerial Conference 
needs to be followed up as soon as possible by an 
agreement on the conditions under which the safe­
guard mechanism under Article XIX of GATT can 
be applied. 
22. The Committee believes that the developing 
countries should be encouraged gradually to con­
centrate their economies more on production, in 
particular local processing of their natural resources 
and production for domestic consumption. 
23. Industrial exports nevertheless remain a major 
source of income for the developing world, but they 
are more than offset by industrial imports. If the 
Lima objective of 25 % by the year 2000 is to be 
reached, then the growth of net industrial produc­tion in the developing countries will have to be 
speeded up considerably. 
24. The Committee considers that the industriali­
zation of the LDCs must stem from integrated rural 
development and the local processing of raw materi­
als. In this connection proper infrastructure, satis­
factory project maintenance and adequate services 
are important. 
25. To ensure that energy resources are used more 
efficiently special attention should be paid in the 
industrialization process to the energy balance, 
which may be seriously jeopardized by the need for 
household firewood (resulting in desertification). 
26. R&D in general and the development of 
appropriate technologies must be geared to greater 
autonomy and meeting the real needs of the peoples 
of the developing world. In line with this criterion 
the agri-industrial development of the LDCs must 
be fostered wherever possible. The rural communi­
ties in particular must secure the technology and 
instruments needed to develop initiatives which 
meet a real need and lead to genuine progress. 
27. The economic recovery of the industrialized 
nations will be considerably influenced by the pre-
industrial development of the LDCs; therefore the 
former, when certain products are threatened by 
competition from the newly industrialized LDCs, 
will have to adopt a responsible attitude to develop­
ment cooperation and rapidly make the necessary 
sectoral adjustments. 
28. As far as foreign investment is concerned, it 
should be noted that often only the multinationals 
are inclined to invest in some sectors in the LDSs. 
It should be ensured that these investments have a 
contractual basis and that every effort is made to 
integrate the economic logic and organizational 
needs of these companies with the development 
priorities and strategy of the host countries. 
Great attention should be paid to investment in all 
its forms. The Committee would once again stress 
31. 12. 83 Official Journal of the European Communities No C 358/27 
the role which SMEs can play here. The Committee 
would refer to its opinion on the Protection of 
Investment in Less-Developed Countries (') and 
would point out that a proper system for the protec­
tion of investments against political risks — albeit 
subject to certain conditions — is essential. 
29. The Committee agrees with the memorandum 
that, as far as aid is concerned, priority should con­
tinue to be given to the ACP countries, and espe­
cially to the least developed among them. Per 
capita income should be the crucial criterion in this 
respect. 
30. As far as the non-associated countries are con­
cerned, the Committee believes that the principal 
advantages given to the ACP countries could be 
granted to other least-developed countries. These 
include trade preferences similar to those extended 
to the ACP countries (Stabex, Sysmin). 
31. The Committee agrees that the objectives of 
the EC toward the Mediterranean are determined by 
more than purely developmental considerations. 
Therefore the instruments used cannot only be 
judged by development considerations. Therefore 
the Lome model must not necessarily serve as a 
model for future relations with the Mediterranean. 
32. The emphasis in cooperation with Mediterra­
nean Basin countries must be on trade liberaliza­
tion, industrial cooperation, access to the capital 
markets, and social policies (especially policy on 
migrant workers). These instruments should be 
embedded in a larger framework of overall political, 
social and economic relations between the EC and 
the Mediterranean countries. Every effort should 
therefore be made to reach an overall agreement 
with these countries. 
33. Enlargement of the Community will naturally 
affect trade with the countries of the Mediterranean 
Basin. The Committee is against official develop­
ment aid (ODA) to the LDCs being switched to the 
Mediterranean countries to compensate them finan­
cially for any losses they might incur. 
Done at Brussels, 26 Oktober 1983. 34. The Committee attaches great importance to 
the attempts to improve coordination between 
Member States' and Community policy at three lev­
els: (a) national and Community policies which 
indirectly influence relations with the developing 
countries (CAP, energy policy, industrial policy, 
etc.); (b) Member States' bilateral aid policy, and (c) 
multilateral policy (in the UN institutions and other 
international forums). 
35. The Committee advocates the annual publica­
tion of a comparative analysis of the development 
policy of the EEC, i.e. of the individual Member 
States and of the Community as a whole. 
There should be better coordination of bilateral aid 
both at Community level and in the countries them­
selves. This applies to the amount of the aid, its 
nature and destination, and the conditions attached 
to it. The following areas merit greater attention: the 
settlement of debts, emergency and food aid, 
research, and the sectoral strategies advocated by 
the Commission. 
Qualitatively better coordination of Member State 
policies in multilateral organizations is necessary. 
The Member States would enhance their power in 
international negotiations if they spoke with one 
voice in these institutions. As the different national 
stances are often the result of differences in foreign, 
financial and monetary policies, it is above all these 
policies which need to be coordinated. 
36. The Committee agrees with the Commission's 
objective of increasing Community aid to 0,1 % of 
Community GNP. 
37. Developing countries should be granted better 
access to the European capital markets. As soon as 
possible the Commission should submit proposals 
aimed at facilitating such access, at the same time 
ensuring that the LDCs do not suffer too readily 
from monetary fluctuations (exchange rates) and the 
excessive cost of borrowing money (interest rates). 
The Chairman 
of the Economic and Social Committee 
Francis CEYRAC 
(') OJ No C 353, 31. 12. 1980.