COMMISSION OF THE EUROPEAN COMMUNITIES 
COM(93) 204 final 
Brussels, 12 May 1993 
COMMUNICATION FROM THE COMMISSION TO THE COUNCIL 
ANP THE EUROPEAN PARLIAMENT 
Special rehabilitation support programe In 
developing countries 
(Initiative by the Co—unity and I ta r States) 
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INTRODUCTION 
The purpose of this communication is to launch a special initiative for 
providing support for rehabilitation in the developing countries. It is a 
special programme which will form a link between humanitarian aid and the 
resumption of support programmes for long-term development aimed at 
developing countries which are emerging from a crisis or war or whose 
economy has been seriously affected by other factors. 
A number of developing countries are now in a critical economic and social 
situation following war or serious internal troubles which have undermined 
production capacity, destroyed much of the basic infrastructure and ripped 
apart the fabric of society. Others are in similar situations following 
natural disasters. 
The fragility of these countries' economies and the precarious situation of 
their institutions makes it difficult to implement quickly long-term 
development programmes, in the absence of development strategies. At the 
same time, the humanitarian aid which helped limit the population's 
suffering and continues to provide essential aid is reaching the limits of 
its usefulness, because it does not have the necessary resources and 
instruments to meet the economic reconstruction and social rehabilitation 
requirements. 
An intermediate rehabilitation stage is needed, to take over gradually from 
humanitarian aid and reduce the need for it, while preparing the conditions 
for economic recovery and political and social transition. During this 
stage, the emphasis must be on rehabilitating essential services - without 
any new investment -, relaunching the production system and reintegrating 
the disaster victims into society. 
In the face of such situations, which are observed in particular in the 
Horn of Africa and southern Africa, the Commission has already taken major 
initiatives in conjunction with the Member States and other suppliers of 
funds (e.g. in Ethiopia and Mozambique). The Community and the Member 
States have at their disposal various instruments which can be mobilized to 
support rehabilitation. It must be recognized, however, that the existing 
instruments are not always appropriate - either because of the procedures 
involved or because they are dispersed - for responding on an overall, 
coordinated basis to the scale of requirements recorded. 
The general public has become sensitive to the fate of those affected by 
war or disaster and has realized the extent of the rehabilitation 
requirements and seen the shortcomings of traditional aid in coping with 
these. This awarenesss and a call for specific action were expressed by 
the European NGOs, which asked for a special programme to be launched. The 
Presidency for its part has demonstrated its awareness, and various 
Parliament resolutions have reflected the same concern. 
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In view of the scale of the requirements and the relative frequency with 
which situations of this kind occur, it would seem necessary to examine 
whether a "special initiative" which combined all the instruments available 
and mobilized additional resources would be likely to improve the 
Community's response to these countries' requirements and facilitate their 
transition to a "peacetime economy" or their return to normal following a 
natural disaster. 
The aim of this paper is to define the outlines of a Special Rehabilitation 
Support Programme and in particular to specify the objectives sought, the 
resources which could be deployed, the eligibility criteria and the 
procedures which could be adopted. It also contains a timetable annex 
geared to the Council meetings on development to be held in May and 
November. 
TIMETABLE 
It is proposed that the Council on development should give an opinion at 
its meeting in May on the principle of a special initiative and define its 
broad outline. It would then be for the Commission to start in June on 
making a detailed evaluation of requirements and setting up the first 
rehabilitation support programmes, and to report to the Council in November 
on the progress made. The Council could then take stock of the stage 
reached country by country in preparing or implementing rehabilitation 
programmes and adopt the recommendations or additional measures which might 
seem appropriate. 
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1. OBJECTIVES AND GENERAL APPROACH 
1.1. genera! objective 
The overall objective of the Community initiative would be to provide 
rapid, decisive support for rehabilitation in a number of developing 
countries which are going through a difficult transition and are in a 
critical economic situation following war, upheavals within the country or 
natural disasters; the fragile nature of these economies and the 
precarious situation of their institutions make it difficult for them to 
absorb conventional development aid in the long term, given that their 
requirements go beyond even the traditional context of humanitarian aid. 
Support for rehabilitation will gradually take over from humanitarian aid 
and will therefore be aimed at stabilizing the societies concerned and 
their economies and at facilitating their transition to a policy of medium-
and long-term reform and development. 
1.2. Specific objectives 
More specifically, the rehabilitation support programmes (RSPS), which will 
be designed flexibly in response to each special situation, should meet the 
following specific objectives: 
(a) they should help to restore production by rapidly supplying inputs, 
tools and spare parts over a limited period; 
(b) they should make it possible to repair quickly certain basic 
infrastructure - without any new investment -, particularly 
infrastructure needed to meet essential requirements (rural health 
newtorks, primary education system, water engineering and sewerage); 
(c) they should help to improve the social and political stability of the 
countries concerned by implementing operations which will facilitate 
the retraining and resettlement of displaced persons or returnees and 
former soldiers, the creation of unskilled jobs or jobs requiring few 
skills and income distribution which takes into account the poorest 
and most hard hit by the recent upheavals; 
(d) they should help to restore local institutions and the administrative 
structure required to manage rehabilitation and pave the way for 
reform. 
1.3. General features of the proposed operations 
The RSP and the operations forming part of them must meet the general 
criteria described below: 
(a) they must be quick to implement and take a maximum of one year to 
complete in the case of imports and two years in the case of 
reconstruction work and activities in the social sector; 
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(b) be financed simultaneously by Community resources and specific 
contributions from the Member States, in accordance with the 
mechanism described in 2.2 below; 
(c) combine in a coordinated manner and in accordance with appropriate 
procedures, for each beneficiary country, the various Community aid 
instruments (EDF resources where appropriate and budget resources) 
and the operations financed by contributions from the Member States*, 
(d) involve transfers to the beneficiary countries of additional 
resources, over and above the normal implementation of programmable 
aid provided for in the Lomé Conventions or budget resources and also 
over and above the Member States' existing programmes; 
(e) provide precisely targeted support in each country, in order to 
maximize the impact and facilitate monitoring and evaluation of 
operations; 
(f) be coordinated with operations by other 
suppliers of funds in the same countries; bilateral or multilateral 
(g) facilitate the formulation of long-term development and reform 
strategies which will allow the transition to be made from 
humanitarian aid and subsequently from the rehabilitation stage. 
2. RESOURCES TO BE DEPLOYED 
2.1. Period covered bv the initiative 
The proposed initiative would become operational halfway through this year 
and would be continued until the end of 1994 as regards the financing 
decisions. The RSPs prepared and adopted during this period would each be 
implemented in accordance with its own timetable, but should not be 
continued beyond 1996. 
2.2. F i nanc ia I resources 
2.2.1. If the initative is to have a significant impact on the 
countries concerned, its global amount should be around 
ECU 1 000 million, with 60% financed from existing or planned 
Community resources (mainly from the EDF) and 40% by Member 
States' contributions. 
2.2.2. the ACP countries benefitting from the Special Programme will be 
requested to allocate a significative portion of their National 
Ind i cat i ve P r ogr amme (NIP) t o t he i r RSP. 
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2.2.3. Contributions from the Member States will be drawn up and called for 
in accordance with a formula to be decided (see Annex 1). The 
methods for receiving and administering these contributions will be 
laid down subsequently. 
2.3. Human resources and organization 
2.3.1. At central level, the Commission will take the internal 
organizational measures required to pilot operations and will 
propose to the Member States ad hoc external decision-making and 
coordination mechanisms. 
2.3.2. In each beneficiary country, the technical assistance responsible 
for preparing, implementing, monitoring and coordinating the RSP 
will come under the authority of the Head of Delegation responsible. 
2.4. Procedures for Implementing programme operations 
In order to take account of the urgency of the requirements and secure rapid 
implementation of the operations, it is proposed that simplified 
decision-making and implementing procedures be applied. 
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2.4.1. The approval of each RSP will take place in a single stage, 
following the opinion of the committee dealing with the country 
concerned (EDF, ALA, MED), to which the matter will be put in an 
emergency procedure. Within the total allocation decided on for 
each RSP, the Commission will have powers to take decisions and make 
adjustments in line with changing circumstances and requirements. 
The decision-making and management procedures applicable to the 
Community contribution will apply by extension to the Member States' 
contr ibut ion. 
2.4.2. Along the lines of what was done in the case of the 1985-86 
Rehabilitation and Revival Plan, there will also be simplified 
procedures for implementing the RSPs. 
(a) In order to ensure rapid implementation of the RSPs, in 
agreement with the beneficiary state, the procedures for contracts 
will be the same as those used by the Commission for emergency aid. 
(b) There should be proper decentralization of work and 
operating responsibilities in the implementation of rehabilitation 
operations in the beneficiary country. In the ACP countries, under 
the terms of a framework agreement concluded with the national 
authorizing officer for financing of EDF origin, management 
contracts will be concluded direct with NGOs, local organizations 
and other decentralized bodies to which the implementation of field 
operations could be delegated. 
2.4.3. In line with current practice for projects financed from budget 
resources, the financing decisions will be accompanied by a time 
limit in accordance with the Financial Regulation. After the time 
limit, unused amounts may be reallocated to other priority 
operations. 
3. ELIGIBILITY 
3.1. Geographical scope 
The most evident and pressing rehabilitation requirements are in sub-Saharan 
Africa, particularly - although not solely - in the Horn of Africa and 
Southern Afrlea. 
Similar situations requiring the same type of support also exist in a number 
of countries in Latin America, Asia and the Middle East. 
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3.2. Factors to be taken into consideration for determining eligibility 
3.2.1. The eligibility of the various countries for the initiative 
would be examined by the Commission in the light of the 
fo11ow i ng: 
(a) request made or programme presented by the authorities of the 
country concerned; 
(b) economic crisis or serious deterioration of basic infrastructure 
preventing the population's essential requirements from being 
met; 
(c) the hostilities or upheavals must have ended if they are the 
cause of the crisis or deterioration, and there must be an 
agreement to this effect between the main parties concerned; 
(d) the authorities must be willing to initiate an economic and 
social transition process which respects democratic principles, 
fundamental freedoms and human rights and to take steps towards 
a structural reform programme; 
(e) structure and volume of the financing and aid from whatever 
source currently being received by the country concerned, 
special attention being paid to its capacity for absorbing 
additional resources and the possibility of producing lasting 
knock-on effects from the rehabilitation. 
3.2.2. Countries receiving structural adjustment support would not as a 
rule be eligible for the initiative, because the existence of a 
medium-term reform programme and the international community's 
financial support indicate that they have already successfully 
completed the rehabilitation stage and that the overall 
financial and budgetary outlook had already been taken into 
account for determining external financing. 
3.2.3. In a number of cases, it is possible that a crisis as described 
in 3.2.1 (b) might exist without all the eligibility criteria 
listed above being met. 
In such cases, the Commission may propose to the Member States that 
they examine the advisability of an operation under the initiative in 
the light of the particular situation of the people or regions 
concerned. The Community would then endeavour to find 
decision-making and implementing decisions which would make it 
possible to implement its support rapidly and fairly. 
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3.3. Possible countries for action 
One cannot draw up a list of developing countries which might be eligible 
without a detailed evaluation of their circumstances and requirements, and 
this can only be done gradually. Moreover, some countries which do not now 
qualify may do so at a later date, and situations requiring rehabilitation 
aid may arise suddenly during the period covered by the initiative, for 
example as a result of natural disasters. 
Annex 2 gives some preliminary and purely illustrative information on 
examples which might fall within this initiative. This annex does not in 
any way prejudge the proposals which will be presented by the Commission. 
It only underlines the diversity of problems that RSPS should address. 
4. ASSUMPTIONS AND RISKS 
4.1. The launch of the proposed initiative, and ultimately its success, 
will depend on: 
(a) a clear political commitment on the part of the Community and 
its Member States to supporting economic transition or recovery 
in the recipient countries, coordinating their efforts and 
supporting the RSPs by taking the necessary action in the 
context of European political cooperation; 
(b) availability of sufficient resources from the Community and its 
Member States to ensure regular financing of the programmes; 
(c) concentration on a limited number of countries so as to achieve 
maximum impact and make it easier to manage the programmes; 
(d) a minimum level of security and political and social stability 
in recipient countries and regions, to enable rehabilitation 
programmes to be completed and allow the transition to medium-
and long-term strategies to begin; 
(e) the willingness of all parties involved to give the Commission a 
free hand in management and executive powers with regard to the 
objectives of the RSPs; in return, the Commission would commit 
itself to supplying detailed information on the implementation 
of the RSPs and promoting transparency of the operations for 
which it was responsible, via coordination at headquarters and 
on the spot; 
(f) the ability of the donors and/or governments involved to ensure 
that local people are genuinely involved in rehabilitation 
projects, since that is the only way of ensuring their long-term 
viabiIity. 
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4.2. Given the crises affecting many developing countries, particularly 
in sub-Saharan Africa, there are real risks to be faced in 
implementing the proposed programmes, among them-. 
(a) the possibility of deteriorating security in recipient countries, or 
new conflicts which would wipe out any expected gains; 
(b) over-financing certain economies whose capacity for absorbing funds 
is limited, or a clash between different types of financing in a 
particular country; 
(c) providing only a temporary improvement in the situation of those who 
are intended to benefit from rehabilitation programmes, if they are 
not swiftly followed by a proper programme of economic reform-, 
(d) spreading resources too thinly over too many countries or too many 
programmes in each country so that their impact is reduced; 
(e) the risks attached to the speed of the programmes and their 
implementation, in particular the possibility that activities funded 
by aid will not be "internalized" by governments and/or local 
peopIe. 
Conclusion 
It is proposed that the Council approve this communication and authorize the 
Commission to take the necessary steps, in particular consultation within 
the appropriate forums of all the ACP and Mediterranean countries concerned, 
to ensure the implementation of the special rehabilitation support programme 
in developing countries. 
Annexe 1 
Programme spécial d'appui à la Réhabilitation 
dans les pays en développement 
Proposition de répartition de la contribution des Etats membres 
(en MECU) 
Etats membres 
Be I g i que 
Danemark 
Ailemagne 
Grèce 
France 
Irlande 
Italie 
Luxembourg 
Pays-Bas 
Royaume-Un i 
Espagne 
Portugal 
TOTAL Selon clé 
Budget 
(1) 
15,18 
6,86 
117,10 
4,98 
69,76 
3,14 
54,36 
0,83 
24,09 
66,15 
32,00 
5,57 
400,00 Selon clé 
FED 
(2) 
15,84 
8,30 
103,86 
4,90 
97,47 
2,20 
51,84 
0,76 
22,27 
65,47 
23,58 
3,52 
400,00 Moyenne 
(3) 
15,51 
7,58 
110,48 
4,94 
83,61 
2,67 
53,10 
0,79 
23,18 
65,81 
27,79 
4,54 
400,00 
Notes: 
(1) Montants définis sur base de la clé de répartition budgétaire 1992 
(2) Montants définis sur base de la clé de répartition du 7ème FED 
(3) Montants définis sur base de la moyenne des deux clés précédentes 
Sl4> 
Annex 2 
Background information on countries 
likely to be eligible for the programme 
Soma Ii a 
Population: 7.8 million-, per capita GNP: USD 160; NIP Lomé IV: has not 
been communicated, possibly ECU 111 million + ECU 14 million risk 
capital, 0% of which has been committed. 
The launch of operation Restore Hope in December 1992, after over two 
years of civil war and clan in-fighting which have affected every region 
of the country, has led to a significant improvement in the distribution 
of humanitarian aid. The agreement reached in Addis Ababa on 
15 March 1993 between the main factions should pave the way for a 
political settlement. 
Provided that the political compromise brings a lasting improvement in 
security, a reconstruction programme could be mounted quickly. The 
Commission established an operational unit for Somalia in Nairobi, last 
December. 
Consideration should be given to the following priorities: regenerating 
rural production (seeds, tools, inputs, livestock), the rehabilitation 
cf grassroots social infrastructure and the resettlement of an estimated 
1 million displaced persons. 
Because it has not ratified the fourth Lomé Convention, Somalia cannot 
receive funds from the 7th EDF. Following a special decision by the 
ACP-EEC Council of Ministers, the Chief Authorizing Officer has been 
acting as the National Authorizing Officer since September 1992 with 
regard to the administration of the funds available under the NIPs of 
the second and third Lomé Conventions, and ECU 40 million have been 
committed for emergency aid and ECU 1.8 million for initial 
rehabilitation measures. Several NGOs active in Somalia have also 
undertaken selective rehabilitation operations, some of which are being 
cofinanced from the Community budget. 
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Sudan 
Population: [25] million; per capita GNP: USD 330; NIP Lomé IV: ECU 142 
million + ECU 23 million risk capital, 0% of which has been committed, NIP 
has not been signed. 
The combination of over ten years of fighting between government troops and 
SPLA rebels and in-fighting between different factions of the SPLA in recent 
months has brought widespread destruction and displaced huge numbers of 
people who now depend entirely on international humanitarian aid. Despite 
numerous difficulties and obstacles, both logistical and political, 
humanitarian aid, in which the Community and its Member States play an 
important role, continues to be supplied through various channels, thanks 
largely to the efforts of NGOs and UN agencies. 
In view of the size of the country and the long history of the conflict, the 
task of rehabilitation is enormous, not only in the southern provinces (with 
a population of 4 to 5 million), but also in the western regions and around 
the major towns where over 2 million displaced persons have congregated. 
The policy dialogue between the Community and the Sudanese authorities was 
suspended in 1990, and work on programming aid under the fourth Lomé 
Convention has not yet begun. However, the suspension of development 
activities affects only new funding decisions, with the result that several 
projects started up under the second and third Lomé Conventions continue to 
be implemented. 
Given the current political and security situation it is unrealistic to 
think of establishing a coherent rehabilitation programme at national level, 
but it might be possible to identify and implement specific, localized 
activities in a decentralized fashion, provided that the authorities agree 
to such an approach and undertake to stabilize the situation. 
1 
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Ethiopia 
Population: c. 50 million; per capita GNP: USD 120; NIP Lomé IV: 
ECU 225 million + ECU 40 million risk capital, 21% of which has been 
committed. 
The overthrow of the regime by the forces of the EPRDF in May 1991 put an 
end to 30 years of civil war which, from its origins in Eritrea, had 
gradually spread to most of North and Centre-North regions of the country. 
In July 1991 the new Ethiopian authorities initiated a period of political, 
economic and social transition intended to lead to the adoption of a new 
constitution and the inauguration of a democratically-elected government. 
This transition received the full backing of the international community. 
Since July 1991 the ICRC has been coordinating donors' efforts to promote 
the demobilization of the 400 000 ex-combattants and rehabilitate those 
wounded and disabled in the fighting. An emergency reconstruction and 
redevelopment programme (ERRP) was set up in December 1991, with funds of 
over USD 600 million, to which the Commission contributes ECU 97 million and 
in which several Member States participate, together with the World Bank, 
the African Development Bank, the EIB and other bilateral donors. The 
programme is still being implemented. 
In early October 1992, Ethiopia concluded its negotiations with the 
international financial institutions and became eligible for the IMF's 
Structural Adjustment Facility, World Bank Structural Adjustment Lending, 
and adjustment support under the fourth Lomé Convention (ECU 75 million for 
1993 and 1994). 
Ethiopia's sizeable requirements in terms of rehabilitation and 
reconstruction are thus covered by the funding already in place. 
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Eritrea 
Population: c. 3 million; per capita GNP: not available (Ethiopia USD 120); 
NIP Lomé IV: ECU 20 million from Ethiopia's NIP, all committed. 
A referendum on independence is due to be held in Eritrea at the end of 
April 1993, which will decide its future status. The provisional government 
set up by the EPLF in Asmara on achieving military victory in May 1991 has 
succeeded in restoring security to the region as a whole and has quickly 
embarked on the task of reconstruction and rehabilitation. In addition to 
food aid and humanitarian aid, which is reaching the target groups without 
any problem, Eritrea is receiving reconstruction aid from various sources. A 
programme financed with ECU 20 million from the 7th EDF (NIP Ethiopia), was 
launched in October 1992. A similar, USD 20 million programme has just been 
set up by the World Bank. Bilateral aid has also been granted, the donors 
including several Member States. All this should meet the most urgent needs 
up untiI 1994. 
However, the scale of the destruction which occurred between 1980 and 
May 1991, the decrepit state of infrastructure and the fact that the means 
of production are obsolete because it was impossible to invest during the 
war mean that considerable resources will be required beyond the initial 
emergency rehabilitation programmes which have already been set up. If the 
April referendum leads to a declaration of independence, Eritrea's new 
international status may also create certain legal problems which could 
complicate the decision-making procedures for certain donors. 
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Mozamb i que 
Population: 15 million, 2 million of whom are refugees abroad; per capita 
GNP: USD 80; NIP Lomé IV ECU 154 million + ECU 22 million risk capital, of 
which ECU 66 million (43%) have been committed. 
After 15 years of civil war Mozambique's whole social and economic 
infrastructure has been partially or totally destroyed, with the exception 
of a few towns. In some rural areas humanitarian operations alone have kept 
a minimum health service running. In addition to the 2 million refugees some 
4 million people have been displaced within the country. 
A fragile ceasefire took effect on 15 October 1992 following the signing of 
a general peace agreement in Rome. Despite considerable delays, gradual 
progress is expected over the next few months towards the demobilization of 
all armed forces, the formation of a new unified army and the organization 
of parliamentary and presidential elections. 
An initial reconstruction programme was presented to donors in Rome in 
December 1992, with a view to paving the way for the country's social and 
economic recovery. Only part of the programme cost has so far been covered, 
and Mozambicans need food, healthcare and education to enable them to return 
to and settle in their places of origin. 
A new reconstruction programme could be proposed rapidly to underwrite the 
peace process. There are numerous organizations on the spot which could put 
such a programme into effect. The Commission intends to set up a special 
unit to coordinate all of the rehabilitation operations which it is already 
financing or plans to finance in the future. 
The likely priorities should be: the rehabilitation of essential social 
infrastructure, the resettlement of displaced persons and refugees (an 
estimated 7 million people), the repair of essential means of communication 
(including mine clearing) and measures to help revive production by small 
farmers. 
The Commission pledged a package of commitments at Rome in December 
amounting to ECU 77 million (all instruments together), over 50% of which 
are earmarked for programmes of this sort. There is still a great deal to 
do, however, to meet the country's needs, particularly in the field of 
infrastructure: health, water, primary education and roads. 
Mozambique also receives structural adjustment funding under the fourth Lomé 
Convention. It was accorded ECU 30 million in 1990, and a programme was 
approved by the EDF Committee in October 1992 which combines these 
ECU 30 million with ECU 15 million under the NIP to be disbursed in 1993. 
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Ango I a 
Population: 10 million; per capita GNP: c. USD 750; NIP Lomé IV: 
ECU 115 million, of which 9% has been committed. 
Sixteen years of civil war (1975-91) have exacted a heavy toll: 500 000 
casualties, 1.5 million refugees and displaced persons and widespread 
destruction of the infrastructure. At the same time, an ineffectual 
political and social system contributed to the collapse of activities which 
were not directly affected by the war. 
Following the Bicesse agreement in May 1991, an initial ceasefire was agreed 
and the first steps were taken towards democratization. The Community and 
its Member States responded rapidly, expressing their willingness to 
contribute to the reconstruction of Angola and agreeing at the Council of 
November 1991 to launch a special coordinated effort in the framework of a 
Community platform to promote the social and economic rehabilitation of the 
country. 
Since May 1991 the Commission has taken a preliminary set of decisions to 
promote the transition process using budgetary resources. It has also 
decided to speed up the establishment of the Lomé IV National Indicative 
Programme so that 7th EDF funds can be used. In February 1992 the Commission 
announced a programme in aid of the democratization process and a social 
stabilization programme aimed at helping displaced persons and refugees to 
reintegrate into society and economic life. 
The Community contribution to the estimated ECU 200 million budget for the 
platform (1991-93) was initially set at ECU 75 million, but was increased to 
ECU 90 million in October 1992; ECU 42 million have already been committed. 
Unita's refusal to accept the results of the election held in September 1992 
and the resurgence of violence in most regions of the country have added to 
the destruction and to the suffering of the Angolan population, forcing 
donors and NGOs to slow down or suspend many of the rehabilitation 
operations already under way and to defer the launch of the second phase of 
the platform. 
The resumption of talks scheduled for April 1993 in Abidjan once again 
offers the prospect of an end to hostilities. If this can be consolidated in 
a lasting ceasefire which paves the way for a political solution, the 
implementation of the Community platform will once again become a matter of 
urgency and will have to take into account the additional damage resulting 
from the latest fighting. The aim is to start up other programmes in 1994 
(third phase of the platform), to tackle the physical reconstruction of the 
country,. 
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Zaire 
Population: 41 million; estimated per capita GNP: USD 170; NIP Lomé IV: 
ECU 170 million subsidy, 0% of which has been committed, NIP has not been 
signed. 
The process of transition from the autocratic regime of President Mobutu to 
a parliamentary democracy is being blocked by the refusal of the President 
to accept any limitations on his power and the fact that he has retained 
control over the essential machinery of government (security forces, 
provincial governors, the central bank). The political deadlock has 
encouraged ethnic conflicts (in Shaba) and provoked riots and looting by the 
army in many towns. 
The prolonged political crisis in Zaire has led to economic chaos and has 
aggravated the population's suffering. The administration has been paralysed 
since 1990, the infrastructure is in a state of decay, the monetary sector 
has been crippled by hyperinflation and the mining industry is bankrupt as a 
result of financial draining, with disastrous consequences for government 
revenue and the balance of payments. 
Following the riots of September 1991, the powers of the National 
Authorizing Officer were transferred to the Chief Authorizing Officer. In 
addition to the Lomé IV NIP funds, which have been frozen, there are 
uncommitted funds of ECU 95 million from previous EDFs. Measures have been 
taken to safeguard work carried out under Lomé II and Lomé III programmes 
which has been suspended. More than ECU 10 million have also been committed 
since 1990 in the form of humanitarian aid and cofinancing with NGOs. 
Priorities for rehabilitation will be the repair of basic infrastructure and 
the resettlement of people displaced by the troubles in Shaba (expulsion of 
people of Kasai origin). 
However, before a rehabilitation operation can begin several conditions must 
be satisfied and in particular there must be a political compromise between 
the President and the opposition, so that the process of democratization can 
continue and an emergency programme of economic recovery can be launched. 
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Rwanda 
Population: 7.7 million; per capita GNP: USD 310; NIP Lomé IV: ECU 118 
million + ECU 14 mi 11 ion risk capital, 6% of which has been committed. 
Since April 1990 there have been repeated incursions and attacks by the 
forces of the FPR in the North of the country and attempts by the army to 
regain control of the situation, which have resulted in a state of war. The 
conclusion of an initial ceasefire between the warring parties in Dar es 
Salaam on 7 March 1993 and talks being held in Arusha to reach a negotiated 
settlement offer some hope of peace, but the risk of renewed fighting cannot 
be ruled out. 
The destruction caused by three years of fighting has been felt acutely in 
this densely-populated agricultural country. The Rwandan economy has been 
badly affected by the conflict and has experienced negative growth since 
1990. In addition to the casualties resulting directly from the fighting, 
1 million people have been displaced by the war and 1.5 million Rwandans 
have become refugees 
A rehabilitation programme should concentrate first on the resettlement and 
economic réintégrât ion of the displaced populations and secondly on 
repairing essential infrastructure in the areas where fighting took place. 
It should also promote the democratization of national institutions, as 
advocated by all parties since the start of the talks in Arusha in 
July 1992. 
Given the small size of the country and the shortage of agricultural land, a 
lasting peace agreement between the warring parties is a precondition for 
such a rehabilitat ion programme. 
At 
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Liber ia 
Population: 2.5 million; per capita GNP: n.a. (USD 470 in 1989); NIP 
Lomé IV: ECU 50 million in grants, 0% of which has been committed. NIP has 
not been signed. 
Liberia's savage three-year civil war has brought the economy to a complete 
standstill, caused massive damage to the infrastructure and disrupted 
government throughout the country. Tens of thousands of Liberians have been 
killed, half a million have sought refuge in neighbouring countries. The 
task of rebuilding such a shattered country will require large and 
coordinated efforts on the part of the international community. 
Although fighting still continues in parts of Liberia, an increasing 
percentage of the territory is accessible for relief and short-term 
rehabilitation operations. Hope for lasting peace and stability lie in the 
Yamoussoukro IV accord which calls for the encampment and disarmament of the 
warring parties. The willingness of all parties to comply with the accord 
has yet to be confirmed; it depends partly on the configuration of the 
peace-keeping force (currently EC0M0G). 
Community humanitarian assistance for the victims of the conflict in Liberia 
amounts to a total of ECU 50 million since 1990. Most of this was 
Articles 254 and 255 assistance (emergency aid and aid for refugees and 
displaced persons). Short technical missions have already been sent to 
Liberia to identify urgent rehabilitation priorities. The key sectors where 
Community aid is currently concentrated are health, water and power supplies 
and port operations. Other sectors being examined for possible immediate 
action include the repatriation of refugees, repairs to education facilities 
and a food production sector review. In each of the above sectors it has 
been possible to identify urgent rehabilitation priorities. 
It should be noted that neither the Community nor any Member State is 
currently represented in Liberia. As far as Lomé assistance is concerned, 
the National Authorizing Officer appointed by the interim government has 
already delegated its powers to the EDF Chief Authorizing Officer. 
'I6/ 
- 10 -
Haiti 
Population: 6.3 million; per capita GNP USD 300; NIP Lomé IV: ECU 106 
million + ECU 14 million risk capital, NIP has not been signed. 
Since the fall of President Duvalier in 1986 the country has experienced a 
prolonged period of political instability. Free and democratic elections at 
the end of 1990 led to the election of Fr Jean-Bertrand Aristide as 
President of the Republic. However, the elected President was overthrown in 
a second violent coup d'état, and political and civil liberties were 
suppressed. 
The coup d'état was universally condemned by the international community and 
has had severe consequences for the country: 2 500 casualties, some 40 000 
Haitian boat people and tens of thousands of clandestine migrants. The 
suspension of international economic and financial aid (including a freeze 
on the application of the fourth Lomé Convention) and the imposition of a 
trade embargo have isolated the country's economy and impoverished its 
people still further. The length of the crisis (20 months) has led to an 
unprecedented deterioration in the economic and industrial fabric of the 
country. 
A reconstruct ion and rescue programme will be needed to rebuild the economic 
foundations necessary for human rights, democracy and a peace economy. 
Aid will be required in most sectors: institution-building (judicial system, 
the police), public finance, agriculture and rural development, basic 
infrastructure, transport and energy... 
Since the coup d'état the Commission has committed ECU 11 million in the 
form of emergency humanitarian aid in conjunction with NGOs. Hopes of a 
political solution in the near future open up the possibility of greater and 
more diversified financial support to respond to the urgent need for 
economic and democratic regeneration in Haiti. 
Ï*' 
Afghanistan 
Population: 16 million; per capita GNP: USD 156; EEC aid 1992: ECU 27.7 
million in repatriation and reconstruction aid (of which 4.8 million in food 
aid and 1.6 million in emergency aid) and ECU 17.1 million for Afghan 
refugees in Pakistan. 
After nine years of Soviet occupation and three years of civil war against 
the pro-Soviet government still in place, a peace agreement was reached in 
April last year, coinciding with the resignation of President Najibullah. 
The establishment of an Islamic government since then has failed to bring 
stability because of power struggles between muhajeddin factions. The 
capital, Kabul, is still very insecure and suffered almost constant shelling 
for much of 1992. 
Encouraged by the victory of the anti-Communist forces, Afghan refugees 
began returning from Pakistan (and to a lesser extent Iran) in unprecedented 
numbers in 1992. According to the HCR, half of the 3 million refugees in 
Pakistan have returned to Afghanistan but only 500 000 of the 2 to 3 million 
who sought refuge in Iran. 
This trend could continue in 1993, particularly if the fragile progress 
towards political stability made at the beginning of the year, largely 
through the good offices of Pakistan, is consolidated. 
Because fighting is concentrated around Kabul and most of the provinces are 
generally calm, it has been possible to launch reconstruction and 
resettlement programmes for refugees on a fairly large scale since 1992, 
thanks to international, and particularly Community, aid. 
These efforts are in addition to the EEC support scheme which, though now 
becoming less important, still applies to Afghan exiles in the refugee 
camps. These are integrated programmes combining mine clearance and the 
rebuilding of sections of roads and irrigation channels in conjunction with 
the local population with measures to regenerate and improve rural 
production. They try to achieve a balance between the regions, are sometimes 
combined with meeting very short-term needs (medical and food aid, seeds) 
and operate through a variety of agencies (NGOs, HCR, WFP, FA0, etc.). 
In view of the enormous needs of the country, these operations could 
undoubtedly be extended, provided that minimum security conditions were met, 
even if the political situation in Kabul had not been completely stabilized. 
- 12 -
Cambod i a 
Population: 8.8 million; per capita GNP: USD 180; EEC aid 1991-93: ECU 54 
million in total (humanitarian aid + rehabilitation), of which c. 80% has 
been committed. 
The recent history of the country is inextricably linked with superpower 
policy in Indochina and, more particularly, with the hostility between China 
and Vietnam. The end of the Cold War has facilitated the peace process 
between the four factions on the ground which reflect the political 
complexities of the region. The process of national reconciliation 
culminated in the signing of the Paris accord on 23 October 1991. 
The UN Transitional Authority in Cambodia (UNTAC), provided for in the Paris 
accord, was created on 19 February 1992. The prime objective of the accord 
and the UN's peace-keeping mandate is the election of a constituent 
assembly, scheduled for 23-27 May this year. 
The growing difficulties due to the failure to implement the Paris accord in 
full have seriously undermined the process of encamping, disarming and 
demobilizing the forces, which is a precondition for the full participation 
of all political parties in the election, including the Khmer Rouge, who are 
opposed to a democratic solution based on the will of the entire Cambodian 
populat ion. 
The electoral campaign started on 7 April, and the parties of Mr Hun Sen 
(the present Prime Minister) and the FUNCINPEC (royalists) are currently 
thought to be leading the field. 
Since the end of 1991 the Community has launched numerous humanitarian 
initiatives for refugees and for the rehabilitation of two provinces. This 
approach should be continued in order to meet the priority needs of a 
country emerging from several years of wartime economy. 
In the short term the Commission will pursue the following objectives: 
- Monitoring the electoral campaign in close conjunction with the 
delegation in Bangkok; 
Implementation of Phase II of the Rehabilitation Programme. 
Short-term projects in the field of rural infrastructure (irrigation, 
roads, water supply), agricultural production, education and training, 
health, implemented by European NGOs in Cambodia. 
- Elaboration of a longer-term development strategy as soon as a new 
government has been formed. 
These activities will have to take account of the level of political 
stability in Cambodia in the second half of the year. The scope of 
Community initiatives will depend on the degree of security on the ground 
and the international debate which will take place about the country's 
reconstruction efforts, in which the Community will fully participate. 
n 
Lebanon 
Population: 3.1 to 3.4 million (estimate); per capita GNP: USD 875 (1990). 
Following the Cooperation Agreement signed in 1977, the EC has signed four 
protocols with Lebanon. However, the war and the paralysis of the Lebanese 
government meant that the indicative programme under the Third Protocol, 
which should have been concluded in 1986, was not signed until October 1992, 
at the same time as the programme of the Fourth Protocol. 
Lebanon has suffered 15 years of civil war, an invasion by the Israeli army 
in 1982 and occupation by Syrian troops since 1991. However, the Ta if 
agreement opened the way to legislative elections which resulted in the 
formation of a new government and a gradual return to comparative stability, 
making it possible to launch a reconstruction programme. 
The budgetary resources made available by the Commission amount to ECU 19 
million for the 3rd Protocol and ECU 22 million for the 4th. 
The Commission has so far committed ECU 9 million to studies evaluating the 
war damage in areas such as telecommunications, electricity generation and 
supply, sanitation, education, agriculture, housing and public works. 
In March it also approved a technical assistance project for the Lebanese 
administration worth ECU 30 million, to fund the creation of specialist 
units within Lebanese organizations involved in the reconstruction 
programme. 
These commitments have provided an initial stimulus to the process of 
reconstructing the physical infrastructure and the administration. The 
financial protocols have effectively been exhausted by these initial 
efforts. 
However, Lebanon still faces enormous problems: some of the 900 000 
displaced persons within the country are beginning to return to their homes, 
but progress is painfully slow because it is impossible to ensure even 
minimal subsistence conditions. Local organizations which were very active 
during the war in administering emergency aid are unable to contribute 
effectively to reconstructing the economic and social fabric of the country. 
In addition to the problem of displaced persons, Lebanon is suffering other 
difficulties common to countries emerging from a war, such as lack of social 
stability, unemployment among young demobilized soldiers, lack of 
opportunities for reintegrating in society, a shortage of training 
institutions, particularly in the technical field, and inadequacies in the 
health infrastructure and social security systems. 
- 14 -
El Salvador 
Population: 5.25 million; per capita GNP: USD 1090; life expectancy: 
64 years; EC bilateral aid ECU 127 million since 1976, of which ECU 62 
mi I I ion in 1992. 
The Chapultepec accord signed in January 1992 ended 12 years of civil war 
which had claimed 75 000 victims. The agreement was signed by the warring 
parties under the auspices of the UN, which has deployed a peace-keeping 
force to supervise compliance. 
The provisions of the agreement have so far been implemented according to 
the timetable, notably as regards the demobilization of the irregular FMLN 
forces, the 50% reduction in the size of the armed forces and the 
introduction of a programme to democratize political life. This is the only 
recent example of United Nations intervention in a national reconciliation 
process being crowned with success, hence the need for the international 
community to provide substantial political support. 
El Salvador has also requested a considerable amount of foreign aid in order 
to sustain a peace process that remains fragile, and to ensure that the 
expectations of the disadvantaged classes are not disappointed for so long 
that their frustration is exploited by political extremists. The country's 
total aid requirement is estimated at USD 1 500 million. 
Responding to this request, and given the possibilities for absorption, the 
EEC mobilized considerable resources in 1992 to be spent on areas which will 
remain national priorities in the medium term, as set out in the National 
Reconstruction Plan, i.e.: 
a) the reconciliation and reconstruction process 
- Rapid creation of jobs for ex-combattants; 
- Food aid for school children in former conflict zones; 
- Aid for the reintegration of refugees and displaced persons. 
b) the elimination of the causes of the conflict/reducing social 
i nequaIi t i es 
- Land distribution programme (land reform); 
- Basic health and hygiene; environmental protection; 
- Credit/employment/vocational training programme in rural areas and the 
urban per iphery; 
- Programme of democratization and respect for human rights. 
- 15 -
Guatemala 
Population: 9.2 million; per capita GNP: USD 910; life expectancy: 63 years; 
bilateral EC aid: ECU 95 million, of which ECU 18 million in 1992. 
Guatemala has the highest percentage of Indians in the population of any 
Central American country (60%). 
The return of democracy in 1985 has not ended the internal conflict which 
has been tearing Guatemala apart for over 30 years, causing over 100 000 
casualties to date and exacting a heavy toll on the country in many other 
respects. In addition, over 40 000 people (some sources say 200 000) have 
fled the country to escape the violence and have, for the most part, settled 
in refugee camps in Mexico. 
On a general level, Guatemala remains poorly-equipped in terms of social 
infrastructure of ail kinds (roads, drinking water, health, etc.), 
particularly in the regions with a large Indian population, which are also 
the ones worst affected by the conflict. However, it is not possible in the 
current state of the fighting to give these sectors the priority they 
deserve. 
The progress made towards peace elsewhere in Central America has had some 
effect on Guatemala. The recent resumption of peace talks holds out some 
hope of a negotiated solution to the conflict in the near future. 
This will raise the question of how to provide aid rapidly for a number of 
priority areas, such as*. 
- emergency programmes for resettling displaced persons and refugees-, 
- rural development programmes in former conflict areas where indigenous 
people form the majority of the population; 
- a health, hygiene and environmental protection programme in the same 
areas; 
- food aid-, 
- support for programmes to strengthen democratic processes or support the 
defence of human rights and the democratization of political life. 
2*> 
- 16 -
Nicaragua 
Population: 4.0 million; per capita GNP: USD 460; external debt: USD 12 
million; population living in poverty: 75%; in extreme poverty: 42%; EEC 
bilateral aid: 1980s: ECU 186 mi I I ion; 1990, 1991, 1992: c. ECU 100 mi II ion. 
The election of Violeta Chamorro to the Presidency in 1990 and the 
conclusion of a peace agreement with the Nicaraguan Contras marked the 
beginning of a long and difficult process of pacification and economic 
recovery for Nicaragua. 
After 12 years of war - against the Somoza regime and then the Contras - the 
country faced the difficult task of reintegrating ex-combattants from both 
sides into the national economy (30 000 Contras + 70 000 Sandinistas no 
longer required in the army). The problem was compounded by several hundred 
thousand refugees. 
The economy had been severely disrupted by the years of conflict, the 
embargo imposed by the United States, the abrupt switch to a command economy 
and a series of natural disasters. All of these factors had a devastating 
effect on levels of output in the agricultural sector (both for export and 
for the domestic market) and manufacturing, which was still in its infancy 
but has now become largely obsolete. 
The European Community was one of the first donors to provide aid to 
Nicaragua as it embarked on reconstruction. In 1990 aid amounted to ECU 50 
million (or nearly 50% of the funds available for Central America), and a 
significant level has been maintained subsequently (roughly ECU 25 million 
per year in 1991 and 1992). 
Three years after the signature of the peace agreement the country is in the 
midst of a political crisis which creates a fertile breeding ground for 
tensions of all sorts. Caught between the two sides, Mrs Chamorro has been 
unable to negotiate a solution to the pressing matter of land reform (the 
land reform introduced by the Sandinista government is being called into 
question, but at the same time it is difficult to honour promises of land to 
ex-Contras) and is thus becoming increasingly isolated within the UNO, the 
party which brought her to power. This heightens tension in regions where 
the question of land ownership is a burning issue. 
In this context, the Community should continue to focus on the two themes 
which have governed aid in recent years: 
a) national reconciliation, with particular emphasis on agricultural 
problems (allocation of land and settlement of property claims), the 
reintegration of refugees and displaced persons, the economic revitalization 
of the regions worst affected by the conflict, action to promote democratic 
processes, human rights, respect for ethnic minorities; 
b) economic recovery: regenerating agriculture and industry, reviving 
exports. From a more structural point of view, it might be useful to 
supplement efforts to reactivate the economy with measures such as support 
for basic infrastructure (communications, port facilities, power generation, 
etc.); training of human resources at all levels; the conservation of 
natural resources and restoration of agricultural potential; basic health 
and hygiene. 
A budget of ECU 50 million might be considered to meet these various 
requirements. 

ISSN 0254-1475 
COM(93) 204 final 
DOCUMENTS 
EN u 
Catalogue number : CB-CO-93-253-EN-C 
ISBN 92-77-55926-8 
Office for Official Publications of the European Conumuuties 
L-2985 Luxembourg