EUROPEAN COMMISSION Brussels,12.3.2018 SWD(2018) 64 final COMMISSION STAFF WORKING DOCUMENT Accompanying the document REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL Annual Report on the Implementation of the European Union's Instruments for Financing External Actions in 2016 {COM(2018) 123 final}



Table of Contents INTRODUCTION: CHALLENGES AND DEVELOPMENTS IN 2016 1. DELIVERING ON COMMITMENTS 1.1. EU as a stronger global actor – policies and instruments 1.1.1. Foreign Policy 1.1.2. International Cooperation and Development 1.1.3. European Neighbourhood Policy 1.1.4. Humanitarian aid and Civil protection 1.1.5. EU Enlargement 1.1.6. Security and Defence 1.1.7. Making a difference: new instruments and aid modalities 1.2. Fostering sustainable development 1.2.1. Implementing the 2030 Agenda 1.2.2. The means of implementation of the new Agenda: Addis Ababa Action Agenda 1.2.3. Policy Coherence for Development (PCD) 1.2.4. Development effectiveness and Joint Programming 1.3 Keeping long-term promises 1.3.1. Human rights and good governance

1.3.2. Poverty and inequality 1.3.3. Gender equality 1.3.4. Climate Change 1.3.5. Migration 1.4. Working for peace and security 1.4.1. Security 1.4.2. Fragility 1.5. Partnerships 1.5.1. Cooperation with civil society organisations and local authorities 1.5.2. Working with the private sector 1.5.3. Cooperation with the donor community 1.5.4. Cooperation with international organisations 2. RESULTS FOR PROJECTS COMPLETED BETWEEN JULY 2015 AND JUNE 2016 2.1. Development progress in partner countries 2.2. EU contributions to results in partner countries: aggregated results 2.3. European Commission’s organisational performance as the manager of EU aid 3. IMPLEMENTATION: GEOGRAPHIC OVERVIEW 3.1. Enlargement 3.1.1. Introduction 3.1.2. Development effectiveness, donor coordination and Joint Programming

3.1.3. Working towards the SDGs 3.1.4. Implementation 3.2. European Neighbourhood 3.2.1. European Neighbourhood East 3.2.2. European Neighbourhood South 3.3. African continental, Sub-Saharan Africa & all ACP programmes 3.3.1 Sub-Saharan Africa 3.3.2. South Africa 3.3.3 Intra-ACP Programmes (Water, Energy, etc.) 3.4. Latin America & the Caribbean 3.4.1. Latin America 3.4.2. Caribbean 3.5. Asia, Central Asia, Middle East/Gulf and Pacific 3.5.1. Asia 3.5.2. Central Asia 3.5.3. Middle East / Gulf region 3.5.4. Pacific 3.6. OCTs 4. IMPLEMENTATION: THEMATIC OVERVIEW 4.1. The thematic programmes

4.1.1. Global Public Goods and Challenges Human Development 4.1.2. Civil society organisations and local authorities 4.1.3. Migration, forced displacement and asylum 4.1.4. Environment and sustainable management of natural resources including energy 4.1.5. Food and Nutrition Security and Sustainable Agriculture 4.1.6. Sustainable Energy 4.2. Partnership Instrument 4.3. Democracy and Human Rights 4.4. Stability 4.4.1. Crisis response and preparedness 4.4.2. Global and regional trans-border challenges 4.4.3. Actions under CSDP 4.5. Nuclear Safety 4.6. Humanitarian Assistance and Civil Protection 4.7. Macro-financial Assistance 5. MANAGING AID 5.1. Monitoring Systems 5.1.1 Evaluation: review of the work programme 5.1.2 Lessons learned 5.2. Aid delivery modalities

5.2.1 Budget support, Public finance management/Domestic Revenue Mobilisation 5.2.2 Using EU grants strategically via blending 5.2.3. European External Investment Plan 5.3. Improving ways of working 5.3.1. Simplification of procedures 5.4. Communication & transparency 5.4.1. Communication and visibility 5.4.2. Transparency



INTRODUCTION: CHALLENGES AND DEVELOPMENTS IN 2016

In 2016, Europe continued to be confronted with a range of significant challenges. Conflicts and instability were developing on both our Southern and Eastern borders. Terrorist attacks were perpetrated inside and outside Europe. The European Union (EU) continued to be faced with unprecedented refugee and migrant flows. As in previous years, the EU responded comprehensively, using the entire breadth of its policies and tools that span diplomatic, security, financial, trade, development actions and humanitarian aid. Following the request of the European Council, High Representative and Vice President (HRVP) Mogherini submitted the EU Global Strategy (EUGS) on foreign and security policy on 28th and 29th June 2016. The EUGS has two aims echoed in the title itself ‘Shared Vision, Common Action’ and sets out EU core interests and principles for engaging in the world. It provides a vision for a more credible, responsible and responsive EU in the world. The EUGS will guide EU actions for the years to come. Implementation of the EUGS started on its five priority areas and endorsed by the Foreign Affairs Council (FAC) of October 2016 and by the European Council of December 2016, namely investing in the resilience of states and societies to the East and South and an integrated approach to conflicts and crises; strengthening security and defence; reinforcing the internal/external policy nexus, with special attention to migration; updating existing or preparing new regional and thematic strategies; and stepping up public diplomacy efforts. Progress in implementing the EUGS in the area of security and defence was swift and substantial with the implementation of the European Defence Action Plan and of the EU-NATO Joint Declaration. Throughout the year, the EU continued to play a leading role in international efforts addressing crises in Ukraine and providing support to ongoing efforts in Syria, Iraq and Libya. It worked tirelessly with its international partners against the activities of Da'esh. The EU will support all efforts for a lasting peaceful solution respecting the unity, sovereignty and territorial integrity of the Ukraine and which ensures a stable, prosperous and democratic future for all its citizens. Russia's interference in Ukraine continued to dominate the EU's relations with Russia and the five principles confirmed by the FAC in March 2016 will continue to guide the EU's policy on this country. At the same time, the EU remains committed to maintaining open lines of communication with Russia on international crises, global and other issues that are in the interest of the EU. In line with the EUGS, the EU contributes to the security of the Union and to sustaining the stability of the MENA region (Middle East and North Africa). The EU will remain committed to, and supportive of, the UN-led peace processes in Syria, Yemen and Libya and supports regional peace initiatives and the search for a two-state solution in the Israeli-Palestinian conflict. The stabilisation of the region, in political, economic, and security related terms, is at the heart of the reviewed European Neighbourhood Policy. The EU will continue to promote external policies and cooperation that enhance the security of the EU and its citizens, focusing on the internal/external security nexus inter alia in the areas of counter-terrorism (capacity building and upgraded dialogue with Turkey, the Western Balkans, Lebanon, Tunisia, Egypt and Jordan), non-proliferation and disarmament, cyber security, maritime security and sanctions. The EU took forward work on the implementation of the Joint Comprehensive Plan of Action (JCPOA) with Iran to ensure the exclusively peaceful nature of the Iranian nuclear programme, while further bilateral engagement will develop based on the Joint Statement of the HRVP and the Iranian Foreign Minister of 16 April 2016 setting the ground for cooperation across many areas. In Africa, the EU continued work to tackle the existing vulnerabilities which remain high in view of humanitarian crisis, climate change and drought, insecurity and modest economic growth. Implementation of regional strategies and action plans continued, together with promoting the economic and investment aspects of our relations.

In Colombia, the EU has been supporting the peace process and contributing to peace building efforts which culminated to the signature on 24 November 2016 of the Final Peace Agreement, which the EU will help implement. 2016 has been a year marked by important decisions and by substantial progress in implementing key decisions taken during 2015. The EU addressed these issues with determination in close cooperation with Member States and partner countries, standing by its values and promoting a rules-based global order. Implementation of the outcome of the Valletta Summit of November 2015 and of the EUR 2.8 billion ‘Emergency Trust Fund for stability and addressing root causes of irregular migration and displaced persons in Africa’ made substantial progress, including through the Rabat and Khartoum processes. In parallel the EU has strengthened its relations with a series of key countries of origin and transit of migrants in the context of the Partnership Frameworks launched in June 2016. Emphasis was also placed on the implementation of the EU-Turkey Statement agreed on 18 March 2016 and on other refugee crises affecting Jordan, Iraq and Western Balkans. The EU will continue the efforts to ensure an ambitious follow-up to the New York Declaration adopted at the United Nations (UN) General Assembly Summit on Movements of Refugees and Migrations. The EU remained a strong supporter of multilateralism, having played a very active role in negotiating the UN 2030 Agenda, which has unprecedented global legitimacy as an agreed international framework for tackling a wide range of interconnected global challenges. The 2030 Agenda builds on and integrates the outcome of the third UN Financing for Development Conference in Addis Ababa and links into the successful Paris Agreement on climate change. Proposals on key policy initiatives were launched in 2016, including on Sustainable Europe and the Sustainable Development Goals (SDGs), on the new European Consensus for Development, on the European External Investment Plan and on relations between the EU and African, Caribbean and Pacific (ACP) states after 2020 where finalising the decision process will be a priority for 2017. As stated in the New Consensus, the EU will integrate climate change issues into its development cooperation, so to contribute to the implementation of the Paris Agreement, which entered into force on 4 November 2016. A strong promoter of human rights and democracy, the EU undertook human rights dialogues and consultations with 43 partner countries and regional groupings and continued supporting human rights civil society organisations and human rights defenders. In 2016, the EU progressed on the democracy support pilot exercise in 12 partner countries, aiming at better coherence and consistency of democracy work delivered by the EU institutions and EU Member States. A major output of the exercise was that democracy now features more prominently in the Human Rights and Democracy Country Strategies. During 2016, the EU continued to support electoral processes across the world by deploying six Election Observation missions (EOM), nine Electoral Expert missions and three Election Follow-up Missions. A special focus was given to the follow-up to EOM recommendations: in line with the 2015-2019 EU Action Plan on Human Rights and Democracy, the EU worked on consolidating ‘best practices’ on the follow-up of EOMs. It also took further steps towards applying a more effective human rights-based approach to development cooperation. To address the crisis in Syria, the European Union and its Member States committed EUR five billion up to the end of 2016 to assist the Syrian people inside the country as well as refugees and the communities hosting them in neighbouring countries. The EU pledged an additional EUR three billion in early 2016 in response to what has been the worst humanitarian crisis Europe has seen since World War II. The EU will present a strategy for Syria and organise an international conference in 2017. At the end of 2016, the EU had 18 Common Security and Defence Policy (CSDP) civilian and military missions and operations in place, of which three were military operations: Operation Althea (Berlin Plus), EUNAVFOR ATALANTA & EUNAVFOR MED SOPHIA; the latter contributing to the disruption of the business model of human smuggling and trafficking networks in the Southern Central Mediterranean and EUMAM CAR is focusing on military advice and assistance to the Central African Republic (CAR) authorities and preparing the ground for their security sector reform. The world-wide trend of increasing human-made and natural disasters continued in 2016. The EU and its Member States remained the world's largest provider of humanitarian funding. The EU's humanitarian aid budget in 2016 was the highest ever, at EUR 2.3 billion (including EDF reinforcements). The European Commission provided relief assistance including food, shelter, protection, healthcare and clean water to more than 120 million people in over 80 countries. The 2017 humanitarian budget will continue to provide needs-based, life-saving assistance throughout the world, assisting people affected by other conflicts, such as in South Sudan and Ukraine, as well as addressing the needs of communities affected by complex and recurring crises in the Horn of Africa, in the Sahel region and Lake Chad Basin, and other fragile areas. The EU delivered on crisis prevention not only in high-priority crises (like Ukraine, Syria/Iraq, Libya, Central African Republic and the Sahel), but also in connection with natural disasters as well as in protracted and lower-intensity crises (Central Asia Water Mediation, Georgia, Nagorno-Karabakh, and Turkey-Armenia). The EU and its Member States remained the world's largest provider of development funding. The European Commission alone disbursed over EUR 10.3 billion in official development assistance (ODA) in 2016 promoting European core values of peace, security, sustainable development, poverty reduction and human rights worldwide, and thus tackling the root causes of crisis.



1. DELIVERING ON COMMITMENTS 1.1. EU as a stronger global actor – policies and instruments The EU's external action is guided by the Lisbon Treaty and taken forward by the EU Global Strategy on foreign and security policy. Its priorities are currently being implemented by adopting a joined-up approach that brings together all EU institutions and Member States in working towards a more peaceful and prosperous world. The European Union focuses its action on diplomacy, the promotion of human rights, trade, development and humanitarian aid and working with multilateral organisations. As a contributor to peace, the EU has led and supported peace talks around the world to facilitate solutions in conflicts such as the historic international agreement that was reached on Iran’s nuclear programme and the peace agreement between the Government and the Fuerzas Armadas Revolucionarias de Colombia (FARC) movement in Colombia. Through its European Neighbourhood Policy, the EU promotes democracy, good governance and human rights while opening trade and cooperation with our southern and eastern neighbours in many policy areas, including on migration and visa issues. The EU is also the largest single donor of development aid. Together, the EU and its Member States provide more than half of official development assistance (ODA) globally. This contribution makes a huge difference to millions of people's livelihoods around the world. The EU and its Member States are also the world's largest donor of humanitarian aid. They provide life-saving needs-based humanitarian aid to the victims of disasters, refugees and others in dire need. Particular attention is given to the most vulnerable populations, i.e. children, women, elderly, people with disabilities. The EU is a steadfast supporter of a rules based global order, with the United Nations at its core. It works with partners around the globe to implement the SDGs and the Paris Agreement on tackling Climate Change. Human Rights and Gender Equality as well as support for Women Peace and Security are central elements of all EU policies. Under the Common Security and Defence Policy (CSDP), the EU operates civilian and military missions worldwide. These missions carry out a variety of tasks, ranging from supporting the management of borders to training local police. The respect for Human Rights and International Humanitarian Law (IHL) is an essential part of CSDP military EU Training Missions (EUTMs) training currently to Somalia, Mali and CAR.

The attractiveness of EU membership and the political and economic stability it brings have meant that many European countries continue to aspire to join, although they must first pass through EU membership tests, including on democracy and the rule of law. 1.1.1. Foreign Policy During 2016, the European Union's Common Foreign and Security Policy focused above all on continuing the quest for solutions to the acute crises affecting the EU's neighbourhood whilst protecting and defending human rights, as well as on building and strengthening peace and stability globally including via CSDP missions and operations. To the east, Russia’s violation of international law and the destabilisation of Ukraine, on top of protracted conflicts in the wider Black Sea region, challenged the European security order to its core. To the south, EU efforts continued to try to bring the conflict in Syria to a close, seen as both a major security risk to global stability and a source of mass movement of people fleeing to safety. Otherwise, the EU foreign policy focused on capitalising on positive political developments, such as in Iran, where work continued the implementation of the Joint Comprehensive Plan of Action (JCPOA) and renewing bilateral relations. Other priorities included advancing the EU's work in Libya. Building on an already active role in Africa, the EU continued to strengthen peace and resilience including through CSDP missions and operations. The Brussels Afghanistan conference in October 2016 was an important opportunity to foster peace, stability and security. The EU also continued to pursue its strategic interest through fostering dialogues on values and global challenges and priority policy areas with key partners across the world. The EU acknowledged the importance of an international system based on multilateralism and pursued active engagement with the United Nations. 1.1.2. International Cooperation and Development Following an evaluation of the European Consensus, in 2016, the Commission presented a Proposal for a new European Consensus on Development, which aligns European Union (EU) development policy with the 2030 Agenda. Once adopted in the form of a Joint Statement by the representatives of Member States meeting within the Council, the European Parliament and the Commission, the Consensus will provide a common vision and framework of action for development policy, which will apply to the EU and its Member States. The Commission and the High Representative also released the Communication ‘A renewed partnership with the countries of Africa, the Caribbean and the Pacific’, which sets out the ideas and proposed building blocks for a strong political partnership with these countries. The EU further promoted Joint Programming, Budget Support, investments (blending) and EU Trust Funds (TF) as significant tools to reduce aid fragmentation and maximise the coherence, impact, effectiveness and visibility of EU development support. A new EU TF was established for Colombia in support of that country's peace building efforts. The Commission also put forward a proposal for an ambitious European External Investment Plan for sustainable investment in Africa and the European Neighbourhood. Strengthening the strategic Africa-EU Partnership remained high amongst 2016 political and cooperation priorities and the EU continued its efforts to boost sustainable and inclusive growth across the African continent. In 2016 the EU has also increased its focus on the security-development nexus in the design of its programmes. Working towards a new comprehensive policy on migration continued to be one of the EU's top policy priorities. 1.1.3. European Neighbourhood Policy 2016 has seen the roll-out of the revised European Neighbourhood Policy (ENP), which puts stabilisation in the neighbouring countries as the EU's main political priority, to be advanced through a continued focus on good governance, democracy, human rights and the rule of law, enhancing economic governance, stronger cooperation on security and cooperation on migration and mobility and proposes to build a more effective partnership between the EU and its neighbours. The Commission has also engaged with all neighbourhood countries through continuing political dialogue and by providing additional guidance and support in their reform efforts. Finally, preparatory work was undertaken in view of the adoption of a horizontal, region-wide Joint Communication in 2017. The Annual Action Programmes 2016 of the European Neighbourhood Instrument (ENI) already incorporated the main outcomes of the ENP review addressing security, migration, economic reform and support to public governance. Most of the countries have committed to critical reforms and positively engaged in the modernisation of their public administrations and justice systems including stepping up efforts in the fight against corruption. In parallel, to establish common agreement with partner countries, the Commission Services and the European External Action Service (EEAS} have engaged in negotiations on new Partnership Priorities and decided to bring forward, where possible, the multi-annual programming exercise to 2017. 2016 was also marked by increased efforts by Commission Services to strengthen the Eastern Partnership and support regional cooperation between southern neighbours, including through the Union for the Mediterranean (UfM). For the Eastern Partnership (EaP), a document on 20 deliverables due by 2020 was adopted in December 2016 as a preparation for the next EaP summit in 2017. In the South, cooperation with the UfM has continued to focus on women's empowerment, youth employability and sustainable development. The first UfM Ministerial Meeting on Regional Co-operation and Planning took place in Jordan in June and resulted in state partners committing to a stronger regional cooperation framework with the emphasis on substantive initiatives and projects. In September, the Commission proposed to set up a new European External Investment Plan to stimulate investments in the Neighbourhood (and in Africa) for growth and job creation. 1.1.4. Humanitarian aid and Civil protection In 2016, humanitarian crises again increased in number, complexity and severity. The Syria crisis as well as several protracted conflicts in Africa, generated humanitarian needs on an unprecedented scale; and these were compounded by long-term global mega-trends such as climate change and population growth in many of the most vulnerable parts of the world. In this context, the EU's humanitarian aid budget in 2016 was the highest ever, at EUR 2.3 billion (including EDF reinforcements), and 2016 also saw significant further development of the EU Civil Protection Mechanism. The EU's humanitarian response saw several important developments such as the establishment of the Facility for Refugees in Turkey (including the largest-ever, cash-based humanitarian programme funded by the EU), as well as significant innovation in the EU's policy approach to long-term forced displacement, and a new policy on humanitarian protection. The EU also committed itself to the "Grand Bargain" on humanitarian effectiveness and efficiency at the World Humanitarian Summit, in May 2016. The EU's Civil Protection Mechanism, meanwhile, was further enhanced by the creation of the European Medical Corps and by the further development of the "voluntary pool" of Member States' response assets. The Mechanism as such was activated 26 times in 2016 to respond to natural and man-made disasters around the world. 1.1.5. EU Enlargement

The EU’s enlargement policy is an investment in peace, security and stability in Europe. According to Article 49 of the Treaty on European Union, any European State which respects the values referred to in Article 2 of the treaty and is committed to promoting them may apply to become a member of the EU. The current enlargement agenda covers the countries of the Western Balkans and Turkey. Accession negotiations have been open with Turkey since 2005. However, under the prevailing circumstances the EU is currently not working on opening new chapters, which would require a unanimous decision by Member States. Accession negotiations have been underway with Montenegro since 2012 and with Serbia since 2014. The EU accession process with the former Yugoslav Republic of Macedonia (a candidate country since 2005) remains at an impasse. Albania was granted candidate status in 2014. Here progress in implementing judicial reform, in particular the vetting of judges and prosecutors, is crucial for the opening of accession negotiations. A Stabilisation and Association Agreement (SAA) with Bosnia and Herzegovina entered into force in June 2015 and the country submitted a membership application in February 2016; the process of preparing a Commission Opinion is ongoing. An SAA with Kosovo was signed in October 2015 and entered into force in April 2016. Enlargement is a process built on established criteria and lessons learned from the past. It supports candidate countries and potential candidates in carrying out the reforms and fundamental changes needed to meet the obligations of European Union membership. Ensuring future Member States are well prepared is crucial for the credibility of enlargement policy, as well as for public support in both current and future Member States. The main tool for the Commission's assessment and guidance is the annual Enlargement package, with a focus on "fundamentals first", ensuring that early in the accession process, countries prioritise reforms in the key areas of rule of law, fundamental rights, strengthening democratic institutions, including public administration, as well as economic development and competitiveness. In 2016, reporting was extended to areas linked to economic development (free movement of goods, competition, transport, energy), as well as to migration, border control, asylum and the fight against terrorism and environment and climate change. In the 2016 Enlargement package, the Commission noted that there have been efforts to modernise legal frameworks and infrastructure and provide training to the judiciary, that fundamental rights continue to be largely enshrined in legislation, that economic growth has improved in the Western Balkans and that regional cooperation has increased further, fostering political stabilisation and economic opportunities. However, effective implementation is often lacking in many areas. Enlargement policy continues to deliver results and reforms are moving forward in most candidate countries, albeit at different speeds. Given the complex nature of the necessary reforms, it is a long-term process and structural shortcomings persist, notably in the key areas of rule of law and the economy. 1.1.6. Security and Defence HRVP Mogherini presented the EU Global Strategy to the European Council in June 2016. The subsequent informal meeting of Ministers of Defence in Bratislava provided full support to the HRVP to develop a follow-up strategy in the field of security and defence. This proceeded along three tracks: the security and defence follow-up (defining the level of ambition, the capabilities underpinning it and the instruments to attain them; the European Defence Action Plan led by the Commission; and the implementation of the EU-NATO Joint Declaration. The strategy was progressed through an open process of consultation with Member States, leading to the presentation and endorsement of the Implementation Plan at the November 2016 Foreign Affairs Council and the endorsement of the European Council in December. The Implementation Plan, endorsed by Foreign Affairs Ministers in November 2016, set new levels of ambition: to respond to external crises; build capacities of partners; and protect Europe. It proposed a set of comprehensive actions to underpin the level of ambition: notably on capability development priorities, deepening of defence cooperation, further adjusting structures, tools and financial instruments and actively taking forward CSDP partnerships. The December European Council endorsed the overall defence package. Having received the highest level of political support, the implementation of the EU Global Strategy in the area of security and defence was to be taken up in early 2017, notably on civilian capability development and enhancing responsiveness of civilian crisis management, a review of the Capability Development Plan, European Defence Action Plan, a Coordinated Annual Review on Defence, strengthening European defence cooperation, an EU-funded defence research programme (European Defence Fund), the establishment of a permanent operational planning and conduct capability for non-executive military missions (MPCC), reinforced EU situational awareness, better use of multinational headquarters, strengthening the EU’s rapid response toolbox (Battlegroups), revision of the ATHENA mechanism, Capacity Building in Support of Security and Development, Permanent Structured Cooperation, and a more strategic approach towards CSDP partnerships. As regards the EU-NATO cooperation, the implementation of the Joint Declaration signed by EU and NATO leaders in Warsaw, in July 2016, was taken up in the second half of 2016. The EU-NATO Joint Declaration signed by the three leaders (President of the European Council, President of the European Commission and the Secretary General of NATO) on 8 July identified seven priority areas where concrete results are expected. These comprise: countering hybrid threats, operational cooperation, cyber defence, defence capabilities (aligning defence planning processes), defence industry and research, exercises (parallel and coordinated), and defence capacity building for partners. Along these seven priorities the common set of proposals endorsed by the European Council in December 2016 identified a further 42 actions. The implementation of these 42 actions will lead to the HRVP’s and the NATO Secretary General’s joint report to the respective Councils in June 2017. 1.1.7. Making a difference: new instruments and aid modalities In a world that is constantly facing uncertainties and crises, Europe must stand together and play an active role in shaping global change. Together and in support of EU external policies, the external financing instruments funded by the EU budget and the European Development Fund aim to make the EU an active partner on the world stage and ensure it can help safeguard world-wide public goods and promote its values of democracy, human rights, peace, solidarity, stability and poverty reduction. The EU and its external financing instruments focus their work with external partners on four policy priorities: enlargement, neighbourhood, cooperation with strategic partners and development cooperation. The instruments were designed to facilitate policy implementation and provide the flexibility to respond to new priorities and challenges as they emerge. In 2016, to check the instruments are still fit for purpose, a mid-term review was launched which will culminate with a report in 2017. The Commission has committed itself to increase the share of EU aid through innovative financial instruments. Therefore, during 2016, the Commission has continued to carry out exhaustive work together with development finance institutions and other stakeholders to identify specific instruments, key areas and sectors where blending can be increasingly used. In particular, an External Investment Plan was proposed in 2016 to encourage investment in Africa and the EU Neighbourhood region; strengthen partnerships with external partners and contribute towards the achievement of the Sustainable Development Goals; and help address some root causes of migration. 1.2. Fostering sustainable development 1.2.1. Implementing the 2030 Agenda In 2016, the European Commission developed its approach to implementing the 2030 Agenda internally and externally and, in November, adopted two Communications: ‘Next steps for a sustainable European future’ covering both internal and external EU actions; and ‘Proposal for a new European Consensus on Development’, which set out a common approach to development cooperation policy for the EU and its Member States. In addition, the 2016 Global Strategy for the EU's Foreign and Security Policy provided the strategic vision for the EU's external action. The draft Consensus relates to EU and Member States' development partnerships with all developing countries, including in the Neighbourhood. It is structured around the priorities framing the 2030 Agenda: people, planet, prosperity, peace and partnerships. It highlights key drivers with transformative potential, including gender equality, youth, sustainable energy and climate action, investment, innovation and mobility. It underlines the nexus between development and issues such as peace, humanitarian action and migration. It recognises the need to mobilise all means of implementation and puts emphasis on stronger, differentiated partnerships with a wide range of stakeholders and partner countries, including with more advanced developing countries. The draft will be discussed with the Council and with the European Parliament, with a view to signing a Joint Statement on an agreed new Consensus by June 2017. When adopted, the Consensus will guide future EU implementation of the Agenda through all relevant external instruments.

In international discussions, including at the United Nations (UN) High Level Political Forum and the UN Statistical Commission, the EU continued to promote implementation of the 2030 Agenda and effective monitoring of progress. 1.2.2. The means of implementation of the new Agenda: Addis Ababa Action Agenda The EU continued to play a leading role in UN financing for development (FFD) negotiations in 2016. This included high-level participation at the first UN Financing for Development Forum, which reviewed progress against the Addis Ababa Action Agenda (AAAA) on development financing, as well as work to strengthen the UN follow-up processes and support the UN's Inter-Agency Task Force on FFD. The EU has continued to emphasise the key elements of the AAAA in UN discussions, in particular that it is an integral part of the 2030 Agenda, setting out the means of implementation needed to fulfil the Sustainable Development Goals. These include public, private, domestic and international financial sources, as well as a commitment to good policies and policy coherence. The EU has been active in working towards its own AAAA commitments in 2016. Official Development Assistance (ODA) provided by the EU and its Member States reached EUR 75.5 billion last year, an 11 % increase compared to 2015 and its highest ever level to date. In 2016, collective EU ODA represented 0.51 % of EU Gross National Income (GNI), having increased from 0.47 % in 2015. This is a significant positive step towards the EU's collective commitment to reach 0.7 % ODA/GNI within the time frame of the 2030 Agenda. In line with the AAAA, the EU's actions in 2016 have also helped to bring together aid, investment, trade, domestic resource mobilisation and good policies. Examples include, the EU's Domestic Resource Mobilisation programme, the proposed EU External Investment Plan to leverage more private sector investment in developing countries, the continuation of “duty free and quota free” market access to Least Developed Countries and the efforts to increase aid efficiency through EU joint programming. 1.2.3. Policy Coherence for Development (PCD) Taking account of development objectives in EU policies that are likely to affect developing countries, known as Policy Coherence for Development (PCD), is enshrined in the Treaty of the European Union (TEU). The EU aims to minimise contradictions and build synergies between different EU policies to the benefit of partner countries. In 2016, the Commission continued promoting PCD to ensure better consistency between EU policies and development objectives. In the light of the 2030 Agenda, PCD was included in the new policy framework. Both communications ‘Next steps for a sustainable European future’ and the ‘Proposal for a new European Consensus on Development’ highlight PCD as an important contribution to the collective effort to achieve broader policy coherence for sustainable development. Outreach efforts continued to increase knowledge on PCD, namely through an e-learning tool for better targeting staff in EU Delegations and also available to external stakeholders. An exchange of views took place with the European Parliament on the 2015 EU PCD report and on its resolutions on PCD adopted in June 2016. The PCD report has been further disseminated with the publication of the French and German versions. Reporting from EU Delegations has been further streamlined and reinforced with an extension of coverage to include Southern and Eastern Neighbourhood countries. A strategic evaluation on PCD covering the period 2009-2016 was launched in 2016. This will look at tools and mechanisms to enhance PCD, the influence that they had on EU policies and the potential impact on developing countries. The aim is to provide an independent assessment of the EU's actions to improve the outcomes and impact of relevant EU policies. 1.2.4. Development effectiveness and Joint Programming Effective Development Cooperation In November 2016 Council conclusions were adopted regarding action by the EU and its Member States to prepare for the Nairobi High Level Meeting of the Global Partnership for Effective Development Cooperation (GPEDC) and to further the implementation of the development effectiveness principles country ownership, results, transparency and inclusive development partnerships, and the leave no-one behind agenda. The study 'Effective Development Cooperation - Has the European Union delivered?' provides a detailed analysis of the progress made so far by the Commission and Member States in meeting their commitments. The Commission represents the EU providers' constituency in the framework of the Global Partnership for Effective Development Cooperation. Joint Programming Joint Programming is increasingly recognised as a means to increase the coherence and effectiveness of the EU and Member State development cooperation and to enhance the EU's political clout and voice in partner countries. Overall, Joint Programming has been progressing in 56 partner countries covering all regions with 20 joint strategies signed or in the process of being signed. In May 2016, Council Conclusions were adopted on stepping-up Joint Programming. They called for consolidation and expansion of Joint Programming, including in fragile and conflict countries, as well as to accompany partner countries in transition to higher income levels. Also, the Council Conclusions asked that Joint Programming documents should evolve to include strategic issues, such as migration, climate change, security and democracy. At the end of 2016, the analysis of 65 Heads of Mission reports from EU Delegations showed that EU partners were increasingly recognised as a unified ‘European family’ with Joint Programming credited for improving coordination, improved division of labour and visibility, as well as making an impact on the quality of the policy dialogue with the partner country.

1.3 Keeping long-term promises 1.3.1. Human rights and good governance The 2030 Agenda and its pledge to "leave no one behind" is grounded in international human rights norms and principles of non-discrimination, equal access, participation, accountability, access to the rule of law, and transparency. This resonates perfectly with the continued efforts of the Commission to progressively apply a rights-based approach in its development programmes, to make them more sustainable and effective, as well as in line with the Sustainable Development Goals (SDGs). 11 Delegations have been trained on the rights-based approach during 2016, and 25 Delegations should be trained by the end of 2017. A new multi-sector approach has been introduced in 2016 to fight corruption. The idea is to further strengthen connexions across a wide array of sectors – justice, public administration reform, security sector reform, improvement of the business environment and customs reform – and actors exercising some form of oversight and control function – civil society, media, whistle-blowers, Supreme Audit Institutions, and Parliaments. Case study – Better governance in Benin Based on recommendations by Transparency International, the Good Governance and Development Contract for Benin launched in 2016 brings under one roof support to Public Financial Management (PFM), justice and the private sector to help improve Benin's overall integrity mechanisms. Supporting our partners to transform their security systems is also key for improving their governance. Upholding fundamental freedoms and assessing in a participatory way the security needs of different groups, including the most vulnerable, are among the key objectives of the new EU-wide strategic framework to support the Security Sector Reform (SSR). This overarching and comprehensive strategy now guides the identification, planning and implementation of all EU SSR-related activities in partner countries. 1.3.2. Poverty and inequality Extreme poverty continues to shrink worldwide, but remains widespread in Africa, especially Sub-Saharan Africa. In 2013, 767 million people were estimated to have been living below the international poverty line. This corresponds to 10.7 % of the global population, down by 1.7 % from the 2012 headcount ratio and a decline of around 14 % in the global poverty population. The substantial decline is mostly due to the lower number of the extreme poor in East Asia and Pacific (71 million fewer) and South Asia (37 million fewer), while the number in Sub-Saharan Africa fell by only four million (a 1.6 %). Income inequality between countries has also been declining in recent years, but remains high. Within developing countries, however, income inequality as measured by the GINI coefficient increased on average by 11 % between 1990 and 2010, affecting the well-being of 71 % of the world population. Inequalities can hamper growth, macroeconomic stability and poverty reduction, and can lead to political and economic instability. The EU is strongly committed to poverty eradication and fighting inequality, as testified by the EU proposal for a new European Consensus on Development. As stated in the proposal, eradicating poverty in all its dimensions, tackling discrimination and inequalities and leaving no one behind will remain at the heart of EU development cooperation policy. 1.3.3. Gender equality The EU's long commitment to gender equality and women and girls’ empowerment continues directing development cooperation and international relations. The renewed Gender Action Plan for External Action 2016-2020 fosters inclusion of gender perspectives in EU programmes design as well as in policy and political dialogue with partner countries and in international negotiations. It provides tools for the attainment of SDGs, not only to SDG5, but as a cross-cutting aspect of all SDGs and consolidates policy commitments to gender equality into more effective delivery of results, while promoting more efficient coordination and monitoring of EU activities in this area. The Action Plan's implementation began in full in January 2016. Support was made available for services to commission or update national gender analysis studies as an important basis for quality project design. Commission Services have progressed in selecting thematic objectives from the Action Plan which they are pursuing through cooperation. The EU results framework was reviewed with an increased focus on disaggregation of results by sex for better monitoring of gender results. Other measures were taken such as the revision of EU templates and procedures to include clearer instructions on gender, training on integrating gender dimensions, a greater collaboration on gender quality and women's empowerment between EU Delegations and Member States in partner countries. Results in gender mainstreaming in project design are improving across delegations and services with more focused attention. Case study – Mainstreaming gender issues in Zambia The Zambia EDF portfolio is an example of good practice in progress on gender mainstreaming, with consistent attention to gender across the different programmes and activities, for example, attention to women traders in the agriculture sector, a focus on gender in governance, and the integration of gender issues in the policy dialogue. The following elements played a role: -Strong policy and good guidelines by the Commission. -A strong focus by selected EU Member States on gender allowing for alignment on gender issues. -Gender champions at different levels within the organisation including at senior level in the delegation and at headquarters, as well as some champions within the Zambian Government. -The existence of an internal EU delegation Quality Support Group which meets regularly and facilitates dialogue and exchange on gender across different sectors, and allows for the identification of opportunities. Technical support to gender through a dedicated focus person who also provides monitoring and evaluation support. The gender analysis studies in the cooperation focus sectors are paving the way for more focused sectoral responsiveness to gender equality needs. Case study – Updating of gender country profile in Guinea In Guinea, the gender country profile elaborated in 2016 was used to feed into the Annual Action Programmes 2016 and 2017. The gender analysis focused on the three focus sectors of the EU National Indicative Programme (health, governance, and sanitation). As a result, four programmes formulated under the 11th EDF Annual Action Programme 2017 are designed to respond to gender-specific recommendations: Urban sanitation, Support to Health Programme, Support to Security Sector Reforms Programme (PARSS 3); and a State Building Contract (Budget Support and accompanying measures).

1.3.4. Climate Change Climate change is a major global challenge. It impacts developing countries and risks undermining sustainable development. In 2015, the Paris Agreement was approved: a major international achievement. Climate change is also one of the 17 Sustainable Development Goals (SDG13: Take urgent action to combat climate change and its impacts). In 2016, the EU has integrated this new framework in its external actions. The European Commission proposal for a new European Consensus on Development, which will guide the EU and its Member States development cooperation over the next decade, confirms these international commitments and gives high prominence to Climate Change. The EU external action approach to address climate change is multi-dimensional and merges policy dialogue, specific climate action and mainstreaming. In Policy Dialogue, the EU has strengthened its outreach through the Green Diplomacy Network and now builds on the synergies between energy and climate diplomacies. The EU flagship initiative Global Climate Change Alliance (GCCA+) updated its strategy to reflect the Paris Agreement and SDG13 with a focus on Nationally Determined Contributions (NDCs), and organised a global learning event in Brussels in September with over 250 participants from 45 countries. Specific climate actions are implemented in support to developing countries and emerging economies. The GCCA+ has approved seven new country actions in 2016, continuing its support to the most vulnerable countries (Small Island Developing States (SIDS) and least developed countries (LDCs)). Under the Partnership Instrument, the EU continued to adopt new climate actions with strategic partners such as China, Brazil, Mexico and Korea. These actions underpin the global lead role of the EU in addressing climate change and supporting the transition towards low carbon economies. Special efforts are made to integrate climate change into the other areas of EU external action. The energy sector is exemplary since all new actions focus exclusively on renewable energy and energy efficiency. Commission Services contribute fully to the overall EU objective of at least 20 % of all its spending to be climate-relevant. In total, contributions from the EU and its member states to support developing countries in reducing their greenhouse gas emissions and coping with the impacts of climate change stood at EUR 20.2billion in 2016 (out of which EUR 2.7 billion from the EU budget and the European Development Fund, and EUR 1.9 billion from the European Investment Bank). The specific climate actions are complementary with broader measures to address long term environmental pressures, e.g. water scarcity and land degradation, which often are reinforced by climate change. Actions such as a new project on Improving climate resilience in a fragile context through the Water – Security Nexus are therefore important. 1.3.5. Migration In 2016, the European Union stepped up efforts to deliver on its commitments in the area of migration, notably in line with the 2015 European Agenda on Migration. The new results-oriented Partnership Framework was launched in June, setting up a reinforced EU approach on migration cooperation with priority partner countries. Combining immediate and longer-term measures, it aims at saving lives, combatting smuggling and trafficking, and addressing the root causes of irregular migration and forced displacement. In April 2016, the Commission published its Communication ‘Lives in Dignity: from Aid-dependence to Self-reliance; Forced Displacement and Development’, which establishes a strengthened EU development oriented approach on forced displacement. This policy framework, which includes support to both displaced populations and host communities, represented an important EU contribution to the World Humanitarian Summit that took place on 23-24 May 2016. Fully in line with the 2030 SDG Agenda, the Commission's proposal for a new European Consensus on Development acknowledges the important role of development policy in addressing global challenges. In this context, migration, mobility and forced displacement are reflected as focus areas to address both the challenges and opportunities of migration for development. Overall, the European Union in 2016 considerably consolidated and reinforced its policy and operational approach on migration cooperation with developing partner countries. At internal EU level, coordination within and between EU services, as well as with EU Member States was strengthened, ensuring policy coherence and efficient delivery. Externally, migration and forced displacement became a key feature of political dialogue between the EU and partner countries. 1.4. Working for peace and security 1.4.1. Security The Instrument contributing to Stability and Peace (IcSP) contributes to the achievement of the Commission objectives of "EU as a Stronger Global Actor" by addressing specific global and trans-regional threats to peace, international security and stability in line with the Global Strategy for the European Union’s Foreign and Security Policy. A key principle in defining IcSP actions is their added value in strengthening the internal and external security dimension, which is strongly prescribed in the recent European Agenda on Security and further highlighted in the relevant thematic strategies of the EU. In addition, in the wake of the recent Joint Communication on Countering Hybrid Threats, some IcSP actions under Article 5 of the EU Treaty are tailored to directly increase third countries' resilience and preparedness to protect their strategic assets in cases of potential hybrid attacks. Within this framework, the IcSP under Article 5 covers the following objectives as outlined in the relevant Multiannual Indicative Programmes: a) Counter terrorism; b) Fight against organised Crime; c) Protection of Critical Infrastructure; d) Climate Change and Security; and e) Chemical, Biological, Radioactive and Nuclear (CBRN) risk mitigation.

In 2016, Commission Services rolled out the revised European Neighbourhood Policy, which places a stronger emphasis on security. The already substantial cooperation portfolio in that area was further strengthened, mobilising various financial instruments (mainly the ENI and IcSP), complemented with Common Foreign and Security Policy (CFSP), Common Security and Defence Policy (CSDP) and enhanced political dialogue. At the same time, the focus of EU action in candidate countries remains on the rule of law, including security (as reaffirmed in the 2016 Enlargement package). Security and Development nexus: In July 2016, the Commission adopted a proposal amending Regulation (EU) No 230/2014 establishing an Instrument contributing to Stability and Peace (IcSP), known as the "capacity building for security and development (CBSD) proposal". The purpose of the proposal is to extend the Union’s assistance under the IcSP by allowing for the financing of measures in support of CBSD, fostering the reform of the security sector (providing both equipment and training) in partner countries where the establishment of just, peaceful and inclusive societies – conditions conducive for development – cannot be achieved without working with, for example, military partners, and where there is a consensus with the partner country that this is the right approach. The proposal forms part of a broader package that covers elements for an EU-wide strategic framework to support for Security Sector Reform (SSR). The Council adopted on 7 December 2016 a mandate for negotiations with the European Parliament. Deliberations at the European Parliament started in March 2017 with a view to a vote on their mandate in plenary in September 2017 to pave the way for the subsequent tri-party talks. 1.4.2. Fragility Overall context and results The 2016 Commission Communication for a ‘New European Consensus on Development’ strengthens the fight against fragility by focussing on resilience, sustainability, poverty, and crises, and citing them as "global challenges and trends" in line with the 2030 Agenda. The proposed "five Ps" - People, Planet, Prosperity, Peace and Partnership - are development priorities compatible with the revised international framework defined for fragility by the Organisation for Economic Cooperation and Development (OECD) as well as the Commission Service’s methodology for crisis or conflict risks. Implementation During 2016, implementation work continued on: A.The annual crisis declaration also called the "flexible procedure" that enables, with appropriate justifications, fragile countries and those countries affected by conflict to benefit from simplified and faster procedures due to local difficult conditions, was streamlined and the annual list was adopted within the set deadline. B.The implementation of the ‘Commission Action Plan for Resilience in Crisis Prone Countries which included: ·Sustained coordination between humanitarian and development assistance ·Organising a Resilience Forum in June 2016 as part of the European Development Days (EDDs) in collaboration with the World Bank. ·Integration of resilience into programming and actions, and cooperation on the ground between the EU institutions and Member States. ·Good progress in several areas, in particular related to food security (programmes Alliance Globale pour l’Initiative Resilience (AGIR) and Supporting Horn of Africa Resilience (SHARE), climate change (programme GCCA) and disaster risk reduction. ·Substantial work has also been done in the area of state and societal resilience with aid instruments ranging from budget support to partnership projects implemented by local authorities or civil society organisations. ·Exploring private sector development or innovative risk financing in vulnerable, fragile and conflict affected environments. C.More intensive use of Trust Funds in countries affected by fragility and conflict (e.g. Trust Fund Bekou, and Sahel). D.International partnerships. Building and reinforcing the global partnership, investing in resilience, and bridging the gap between humanitarian and development work in line with the core commitments put forward by the United Nations at the World Humanitarian Summit in May 2016 in Istanbul. E.Supporting the International Dialogue for Peace Building and State building (IDPS) to improve current development policy and practice in situations of fragility through implementation of the New Deal for Engagement in Fragile States adopted in Busan in 2011. The IDPS is a unique tri-partite partnership between a group of 20 countries at risk of conflict and fragility (G7+), international development partners (OECD’s Development Assistance Committee’s (DAC) International Network on Conflict and Fragility (INCAF)) and civil society (CSPPS). The European Commission represents the EU in INCAF and in the IDPS and has been a firm supporter of the New Deal since the beginning. The IDPS was the main promotor for inclusion of SDG16 in Agenda 2030, which was reconfirmed in Stockholm in April 2016. In November, the EU agreed to take over the co-chair of the implementation working group of the IDPS from 2017 for the next two years alongside the Central African Republic (CAR) on the G7+ side.

F.The European Commission’s contribution has run through all SDGs relevant to fragile countries including gender equality and women’s empowerment (SDG5) and the "promotion of peaceful and inclusive societies for sustainable development", (SDG16), and also all other SDGs, through the internal "Assessment of EU policies and actions related to the SDGs", and through Partnership Agreements signed with civil society organisation networks covering, amongst others, to enable fragile countries to contribute to the achievement of the SDGs, coordinated by Commission Services in 2016. G.The contribution of the European Commission to the Global Strategy for the EU's Foreign and Security Policy recognised the work being done in the framework of fragility and resilience and aims to reinforcement of the current situation through: oA reinforcement of the resilience framework (currently covered by 2012 Communication (COM(2012) 586 final)) oThe development of an Integrated Approach to conflict and crises which is to be built on the existing Comprehensive Approach and the experience gained in the implementation of Action Plan 2015 (and reported in 2016) and the Action Plan 2016-2017 (adopted during 2016). Sectorial results Since more than 60 % of the European Commission commitments and expenditures for development have been dedicated to fragile countries in 2016, this means that a significant proportion of the results are related to the resilience of fragile countries, in particular in their weakest sectors, to help them to overcome their specific fragility(ies). The five dimensions of risks and related fragility are covered by the Commission Services through both thematic and geographic programming. 1.5. Partnerships 1.5.1. Cooperation with civil society organisations and local authorities The European Union’s political commitments to support civil society organisations (CSO) and local authorities (LA) as key actors of governance, sustainable and inclusive development, are implemented by the Civil Society Organisation-Local Authorities Thematic Programme adopted in July 2014 under the Development Cooperation Instrument. Its aim is to strengthen these actors in partner countries as well as at regional and global level. The Instrument for Pre-Accession, as well as the European Neighbourhood Instrument, also provide substantial support to strengthen and promote the role of civil society in building stronger democracies, improve accountability systems and ultimately achieve better policies and positive socio-economic development. Localising the 2030 Agenda by empowering CSOs and LAs will bring more relevance, efficiency and accountability to the implementation of the Sustainable Development Goals. CSOs and LAs are essential stakeholders playing a pivotal role in tackling global challenges and ensuring that no-one is left behind at local level. At regional and global level, networks and associations will link local concerns to regional and international debates. The European Union therefore supports their contribution to the successful implementation of the 2030 Agenda. To illustrate this commitment, the European Commission signed 29 Framework Partnership Agreements (FPA), five with the Associations of local authorities in 2015 and 24 with global and regional networks of CSOs during the CSO Forum in March 2016. This Forum brought together a significant number of CSOs from both the international development and Human Rights constituencies to further enhance the European Union’s effectiveness in implementing the EU policy on support to Civil Society and to confirm the strong EU commitment to promote and protect human rights and gender equality, sustainable development, democracy and the rule of law worldwide. Civil society forums with partners from the Eastern Partnership countries and from the Southern European Neighbourhood were also held in 2016 to discuss the specific challenges for these regions. 1.5.2. Working with the private sector The main challenge for developing countries remains achieving growth that is inclusive and sustainable; reflected by the creation of decent jobs, improved prospects for the youth, gender equality and resilient societies. Substantial sustainable investments are needed to enhance competitiveness and diversify local, national and regional economies, support social and financial inclusion, enhance comparative advantages, accelerate industrialisation, value chain integration and preparedness for the digital economy. In May 2014, the Commission's Communication entitled ‘A Stronger Role of the Private Sector in Achieving Inclusive and Sustainable Growth in Developing Countries’ set out the future direction of EU policy and support for private sector development in partner countries with emphasis on the need for more strategic engagement with the private sector in promoting sustainable and inclusive growth. In 2016, the Commission adopted a series of new Communications further acknowledging the central role of the private sector as a contributor to the 2030 Agenda. In addition to the new EU development policy, framed by the ‘Consensus on Development’, in September 2016 the Commission proposed a new ambitious External Investment Plan (EIP). The Plan proposes for the first time a coherent and integrated approach to improve investments in Africa and the EU Neighbourhood, to promote decent job creation, sustainable development and tackle some of the root causes of migration (see chapter 5.2.5). The new approach is based on the conviction that enhanced financing needs to be coupled with business and investment climate improvements for investments to materialise and for growth and jobs to be generated. In addition to new guarantee instruments aimed at mitigating investment risk, structured dialogue with the private sector will be instrumental in identifying specific bottlenecks for investment that can then be addressed through EU support and policy dialogue. In this framework, a new Sustainable Business for Africa Platform (SB4A) for structured dialogue with the private sector is currently under preparation, and expected to be operational before the end of 2017, as a key building block of the third pillar of the External Investment Plan. SB4A will reflect and deliberate on the body of structured dialogues operating at country, sector and strategic level to ensure the right level of private sector perspective, ownership and engagement in implementing the EIP. Through geographic and thematic programmes, the EU will invest over EUR two billion by 2020 to support local Private Sector Development in developing countries. In 2016, a new intra African, Caribbean and Pacific states (ACP) programme "Fit for market" was adopted with the objective of strengthening the competitiveness and sustainability of the smallholder farmers, producer groups, farmer organisations, and Micro, Small and Medium Sized Enterprises (MSMEs) in the horticultural sector. In addition, two trade-related global actions under Global Public Goods and Challenges (GPGC) were adopted: respectively aimed at promoting international market information tools, in particular in LDCs, and also supporting LDCs to promote a trade agenda conducive to sustainable pro-poor growth.

1.5.3. Cooperation with the donor community A number of strategic dialogues on development took place in 2016 with non-EU providers of assistance against the backdrop of the UN 2030 Agenda and its SDGs. The EU-US development dialogue at senior level in June 2016 in Brussels was an exchange of views on respective efforts to implement the 2030 Agenda and strengthen co-operation in key areas, such as energy. In 2016, preparations took place for the next consultations at senior level with Japan in the framework of our development dialogue, while field cooperation between the Japan International Cooperation Agency and EU Delegations continuing. In line with the new EU strategy on China, adopted in 2016, contacts have been further developed with relevant authorities in China on global development and regional issues to promote a more structured dialogue on development issues. Because of elections in Australia in 2016, it was agreed to hold the next senior official development dialogue in early 2017. With Korea, a high-level development dialogue meeting took place in April 2016 in Brussels focusing on the 2030 Agenda and the Busan Global Partnership for Effective Development Cooperation. In line with the 2016 EU-India Summit, which called for launching an EU–India Development Dialogue, two meetings were held in Delhi confirming India's wish to strengthen cooperation with the EU concerning the 2030 Agenda. Exploratory contacts have been made with Brazil and Mexico for establishing similar policy development dialogues. The European Commission has also a leading role in bringing together donors’ response to challenges in the neighbourhood and enlargement regions. This has been the case for the refugee crisis and migration related issues in 2016 in particular. 1.5.4. Cooperation with international organisations In 2016 the European Commission continued to be engaged in development-related United Nations (UN) processes, including the High Level Political Forum and the Financing for Development Forum. Contributions were coordinated for annual sessions of UN Economic and Social Council (ECOSOC) Functional Commissions and major UN Conferences (UNCTAD XIV; Habitat III), as well as providing input for relevant UN General Assembly and ECOSOC-resolutions. Important discussions took place at the Organisation for Economic Cooperation and Development (OECD) on development issues (OECD SDG Action Plan) and decisions on the modernisation of the development finance measurement framework (Peace and Security, Private Sector Instruments) in which the Commission had a pivotal role. The European Commission also worked closely with the Council of Europe, implementing joint projects in both the South and the East Neighbourhood, as well as with the Western Balkans and Turkey in line with a Statement of Intent from April 2014. The two other pillars of cooperation are legal cooperation and high-level political dialogue. Throughout 2016 the European Commission continued to engage in close collaboration with International Financial Institutions, in particular with the World Bank and International Monetary Fund (IMF), but also with European Financial institutions and regional development banks on a range of topics including domestic resources mobilisation, public financial management, private sector, blending platforms, Africa and the Neighbourhood. The European Commission continued to play an active role with G7 leaders to take development issues into account, reflecting the 2030 Agenda. The G7 launched initiatives inter alia on health, gender equality and countering violent extremism. The European Commission actively contributed to the development of the ‘G20 Action Plan on the 2030 Agenda’. The G20 also adopted the Initiative on the Industrialisation of Africa and the LDCs.



2. RESULTS FOR PROJECTS COMPLETED BETWEEN JULY 2015 AND JUNE 2016 EU International Cooperation and Development Results Framework On 26 March 2015, the Commission Services launched the EU International Cooperation and Development Results Framework (EU RF) through the publication of a Staff Working Document . The EU RF marked a significant step in improving the way the EU manages and reports results. With the launch of the framework, the Commission Services involved with International Cooperation and Development pioneered the measurement of systematic results, their reporting; and publishing both in aggregated and non-aggregated form. So far, two Results Reports have been published. The first report, covering completed programmes in 2013-14, was published in 2016. This was a complement to the 2015 Annual Report by the European Commission on the implementation of EU international cooperation and development cooperation. Since 2016, reporting on results has become a structural part of the Annual Report. To enhance the European Commission’s ability to focus on results and effectively manage its interventions several tools and support systems are being developed, tested and implemented. An ambitious new operational information management system (Opsys) will support project management, including results reporting, at both headquarters and EU Delegation level. This will facilitate the implementation of the results framework, responding to the Council conclusions adopted in May 2015. During 2017, the European Commission will also begin revising the results framework to take into account the SDG indicators and the new EU Consensus on Development as announced in the March 2015 Staff Working Document.

Chapter Structure This present chapter first sets the context by presenting the development progress made by the partner countries, before moving onto the EU contribution to results in partner countries through the presentation of EU aggregated results. While the focus is on results in the field, it also provides some data on the European Commission’s own organisational performance. ØSection 2.1: Setting the context – development progress in partner countries Section 2.1 provides an overall picture of the development progress made by EU partner countries, i.e. the longer-term development results (outcomes and impact). It aggregates and reflects results achieved by the EU partner countries based on collaboration between partner countries, donors and other development players, including the private sector. The results presented in this section are based on a limited number of quantifiable indicators and thus provide a snapshot of EU partner countries’ progress in development. The aggregated values presented in Section 2.1 include data from all countries with which the EU has bilateral cooperation programmes over the 2014-2020 period. Data have been obtained from international statistical sources (e.g. United Nations’ agencies, the World Bank, the International Monetary Fund and others). A complete list of the data sources for the indicators presented in Section 2.1 is provided in Annex 1. ØSection 2.2: EU contribution to results in partner countries: aggregated results Section 2.2 gives an overview of aggregated results (outputs and direct outcomes) from projects and programmes financed by the EU above a value of EUR 750 000 that ended between 1 July 2015 and 30 June 2016. The results reported here have been achieved during the full period of their implementation, and they have been aggregated using EU RF indicators. These programmes usually account for around 90-95 % of the value of the development cooperation portfolio of projects ending in a given year. Information on results presented in this section has been drawn from reporting by partners implementing the projects and programmes (i.e. partner countries themselves, international organisations, non-governmental organisations, EU Member States’ development agencies, and international financial institutions). The results reported have been calculated using a contribution approach. This means that where a project has been financed by the EU jointly with other funders – such as partner country governments or other donors – the overall results of the collective effort are reported, rather than results attributed to the share of funding provided by the EU. The European Commission aims to progressively step up results reporting to include ongoing operations rather than completed operations for continual project management improvements and increased transparency. This would also widen the reporting base and give a more comprehensive picture of EU development and cooperation assistance. It should be noted that the seven countries involved in the Enlargement process are not included within scope of the EU RF. Please see further details on the methodology in Chapter 6. ØSection 2.3: European Commission’s organisational performance as the manager of EU aid This section gives information on how European Commission Services are managing their operational processes and resources in order to contribute to achieving development results. Some of the results presented in Section 2.3 relate to indicators for which the EU has defined targets reflecting the political commitments the EU has made; others come from the legal framework for implementation of the EU’s development and cooperation policy. Data reported in this section are based on the financing decisions taken by the European Commission from 1 January 2016 to 31 December 2016. Further information More detailed results and methodologies can be found in the following annexes in Chapter 6 of this Staff Working Document – Part 2. Annex 1: Methodological basis for the report on selected results Annex 2: Development progress - Regional averages Annex 3: Development progress – Countries grouped by region

Annex 4: Development progress – by Instrument Annex 5: Development progress - Countries grouped by Instrument (Country List) Annex 6: Partner country results supported by the EU – list of countries covered by this reporting exercise broken down by region Annex 7: Aggregated results achieved with EU support – results disaggregated by sex Annex 8: Aggregated results achieved with EU support – results by country, region and thematic programmes Annex 9: Aggregated results achieved with EU support – results broken down by region Annex 10: Aggregated results achieved with EU support – results by funding instrument 2.1. Development progress in partner countries This section presents the development progress made by partner countries and sets the context in which the EU's contributions to results should be understood. It focuses on the longer-term development outcomes and impact in the countries and reflects the results from the collective effort of partner countries, donors and other development actors. The aggregated values presented below are based on data from all partner countries in which the EU is financing bilateral programmes over the 2014-2020 programming period. The statistics used to report on the indicators are taken from international statistical sources and mostly consist of weighted averages. Figure 1 below and Annex 2 in Chapter 6 give the breakdown of countries by defined region. Please also note the Results Framework did not capture data for the majority of the Instrument contributing to Stability and Peace (IcSP) as this is managed by the Commission Service for Foreign Policy Instruments (FPI). Every year, the latest available data at the time of report drafting are used to collate each indicator. The latest available values presented in this report were collected in November 2016, with the majority of country values referring to 2014-2016. The table columns present the values that were provided in: i) the First Results Report (values available as of 2014), ii) chapter 2 of the 2016 Annual Report (values available as of 2015) and iii) the present chapter (values available as of 2016). This means care should be taken when comparing year on year results as information each year is dependent on country updates that are not necessarily released each year, and results may not be directly comparable. Figure 1: Development progress in EU bilateral cooperation countries - Map of countries grouped in regions

Table 1: Development progress in EU partner countries – Summary Values available as of 2014 2015 2016 INCLUSIVE GROWTH AND POVERTY REDUCTION Proportion of population living below the international poverty line (%) 27.5* 27.1* 27.0 Income share held by the lowest 40 % of income distribution (% income, period averages) 17.7 17.7 17.2 Real GDP growth, latest available year (%) 3.8 3.7 3.2 Real GDP growth, average over last five available years (%) 4.5 4.5 4.3 GOOD GOVERNANCE Average Rule of Law score (Worldwide Governance Index, ranges from approx. -2.5 (weak) to approx. +2.5 (strong) performance) -0.5 -0.5 -0.5 Average Control of Corruption score (Worldwide Governance Index, ranges from approx. -2.5 (weak) to approx. +2.5 (strong) performance) -0.4 -0.4 -0.4 Average Voice and Accountability score (Worldwide Governance Index, ranges from approx. -2.5 (weak) to approx. +2.5 (strong) performance) -0.4 -0.3 -0.3 CONFLICT PREVENTION, PEACE BUILDING AND SECURITY Number of violent deaths per 100 000 8.1* .. 8.0 AGRICULTURE, FOOD SECURITY AND NUTRITION Cereal yield per ha (kg) 2 523 .. 2 545 Prevalence of stunting (moderate and severe) of children aged below five years (%) 34.8 32.1 32.2 Prevalence of undernourishment (%) 16.4* 15.8 15.8 ENERGY Percentage of the population with access to energy services 62.6 64.3 .. Renewable energy production as a proportion of total energy production (%) 25.4* .. 24.7 PUBLIC FINANCE MANAGEMENT Change in domestic revenue mobilisation as a percentage of GDP over three years -1.4 (2011-2014) .. -2.5 (2012-2015) EDUCATION Primary Education Completion Rate (%) 77.9 78.8 79.8 Lower Secondary Education Completion Rate (%) 54.5 57.6 57.7 Literacy rate of 15-24 year-olds (%) 80.6 80.5 83.3 HEALTH Under-five mortality rate (per 1 000 live births) 68.2* .. 64.1 Maternal mortality ratio (per 100 000 live births) 381.8* 355.5 .. HIV prevalence among population aged 15-24 years (%) 0.7* 0.8 0.7 NATURAL RESOURCES, ENVIRONMENT AND CLIMATE CHANGE Number of deaths per 100 000 from climate-related and natural disasters (average over ten years) 2.3 2.1 2.4 CO2 equivalent emission (kilo tons) 2 948 725* 2 995 969 .. Proportion of population using an improved drinking water source (%) 78.4 79.1 .. Proportion of population using an improved sanitation facility (%) 54.4 55.3 .. Rate of net forest cover change, since 2000 (%) -4.0 -4.5 .. State of global biodiversity Number of global species

Percentage change 3 038 .. 3 706 -52.0 (1970-2010) .. -58.0 (1970-2012) TRANSPORT Road density (km. of road per 100 sq. km of land area) 12.0 12.5 .. EMPLOYMENT AND SOCIAL PROTECTION Proportion of employed people living below the international poverty line (%) 30.0* 29.3 .. Share of older persons receiving pensions (%) 38.2 .. .. TRADE AND PRIVATE SECTOR DEVELOPMENT Average Global Competitiveness score (range 1-7) 3.7 3.8 3.8 Exports of goods and services as percentage of GDP 31.9 30.1 28.4 GENDER EQUALITY AND WOMEN'S EMPOWERMENT Proportion of seats held by women in national parliaments (%) 19.2 20.2 21.3 Percentage of women aged 20-24 years old who were married before their 18th birthday before their 15th birthday 29.5 30.5 28.4 .. .. 7.6 ..= no new data Table 2. Inclusive Growth and Poverty Reduction indicator for EU partner countries INCLUSIVE GROWTH AND POVERTY REDUCTION All partner countries Africa, North of Sahara Africa, South of Sahara America, North& Central America, South Asia, Middle East Asia, South & Central Asia, Far East Europe: Belarus, Moldova, Ukraine Oceania More advanced developing countries Proportion of population living below international poverty line (%) 2014 27.5 2.8 46.2 17.4 6.1 0.1 15.4 8.2 0.0 33.7 - 2015 27.1 2.8 45.1 17.0 5.1 0.1 14.5 8.2 0.0 33.8 - 2016 27.0 2.8 45.8 15.4 4.6 0.1 14.4 8.1 0.0 33.8 - Income share held by the lowest 40 % of income distribution (% income, period averages) 2014 17.7 20.5 15.5 12.1 12.0 20.5 21.6 17.3 24.2 15.0 14.2 2015 17.7 20.6 15.7 11.8 12.2 20.5 21.8 16.8 24.5 14.6 14.2 2016 17.2 17.4 15.7 12.4 12.4 19.6 21.3 17.0 24.6 14.7 14.2 Real GDP growth, latest available year (%) 2014 3.8 1.1 5.1 3.4 4.6 -0.2 5.8 6.1 -3.5 4.6 2.6 2015 3.7 0.9 5.0 4.4 3.9 -0.1 5.7 6.0 -4.1 4.7 2.4 2016 3.2 2.2 3.6 4.4 2.8 1.0 4.9 6.2 -7.3 4.4 2.3 Real GDP growth, average over last five available years (%) 2014 4.5 2.8 4.9 2.5 4.8 5.9 5.4 6.3 0.8 5.6 3.3 2015 4.5 2.7 4.8 3.5 5.2 5.9 5.7 6.2 -0.3 5.6 3.4 2016 4.3 2.9 4.5 3.6 4.7 5.9 5.4 6.1 -0.9 5.0 3.2 Over the last two decades, globally, extreme poverty has been considerably reduced. Among EU partner country regions, it remains high in sub-Saharan Africa, where the poverty rate has slightly declined but still stands at 45.8 %. The total proportion of people living below 1.90 USD a day in EU partner countries has decreased slightly to 27.0 %. The income share of the bottom 40 % of the income distribution decreased slightly to 17.2 %. Among EU partner country regions, the income share of the bottom 40 % of the income distribution is lowest in North, Central and South America (12.4 %), although these regions have seen a minor increase.

Average overall real yearly and five-year GDP growth in EU partner countries have decreased slightly. Far East Asia is the region with the highest GDP annual growth (6.2 % for the latest available year) and the highest average growth over the last five years (6.1 %). On the other hand, within Europe, the EU partner countries Belarus, Moldova and Ukraine have experienced negative GDP growth (on average − 7.3 % for the latest available year), driven not only by the instability of the situation in the Ukraine but also by downturns in Belarus and Moldova in 2015.



Table 3. Good Governance indicators for EU partner countries GOOD GOVERNANCE All partner countries Africa, North of Sahara Africa, South of Sahara America, North & Central America, South Asia, Middle East Asia, South & Central Asia, Far East Europe: Belarus, Moldova, Ukraine Oceania More advanced developing countries Average Rule of Law score (as measured by the Worldwide Governance Index, ranges from approx. -2.5 (weak) to approx. +2.5 (strong) performance) 2014 (refers to 2008) -0.5 -0.3 -0.7 -0.1 -0.8 -0.7 -0.8 -0.7 -0.7 0.2 0.9 2015 -0.5 -0.6 -0.7 -0.3 -0.6 -0.8 -0.7 -0.6 -0.6 -0.2 0.6 2016 -0.5 -0.6 -0.7 -0.1 -0.6 -0.8 -0.7 -0.6 -0.7 -0.3 0.8 Average Control of Corruption score (as measured by the Worldwide Governance Index, ranges from approx. -2.5 (weak) to approx. +2.5 (strong) performance) 2014 (refers to 2008) -0.4 -0.5 -0.6 0.1 -0.5 -0.8 -0.8 -0.9 -0.7 -0.3 1.0 2015 -0.4 -0.6 -0.7 -0.1 -0.7 -1.0 -0.6 -0.7 -0.7 0.0 0.8 2016 -0.4 -0.7 -0.6 0.0 -0.6 -0.9 -0.6 -0.7 -0.7 -0.2 1.0 Average Voice and Accountability score (as measured by the Worldwide Governance Index, ranges from approx. -2.5 (weak) to approx. +2.5 (strong) performance) 2014 (refers to 2008) -0.4 -1.2 -0.6 0.3 0.0 -1.0 -1.1 -0.6 -0.6 0.6 0.9 2015 -0.3 -0.8 -0.6 0.3 0.0 -1.1 -0.9 -0.6 -0.5 0.7 0.9 2016 -0.3 -0.8 -0.6 0.3 0.0 -1.1 -0.9 -0.6 -0.5 0.6 0.9 The Worldwide Governance Indicators (WGI) are compiled by the World Bank. They comprise several components which measure the quality of governance in over 200 countries. The WGI is a relative index and scores are normalised against the global average. This means that looking at all EU partner countries very little change is likely to occur, but differences in the various governance components can be observed at regional (and country) level. The Rule of Law score measures perceptions of the extent to which agents have confidence in and abide by the rules of society, in particular the quality of contract enforcement, the police and the courts, as well as the likelihood of crime and violence. The Rule of Law score decreased the most in Oceania (from 0.2 to − 0.3), and in North Africa (from − 0.3 to − 0.6), due to decreases in Egypt and Libya balanced to a certain extent by some improvements in Morocco and Tunisia. The score also decreased marginally in the Middle East Asia (from -0.7 to -0.8) and the more advanced developing countries (from 0.9 to 0.8). For some EU partner country regions, there have been minor improvements (South America, South and Central Asia, Far East Asia). The corruption score measures perceptions of the extent to which public power is exercised for private gain, including both petty and large-scale forms of corruption, as well as 'capture' of the state by elites and private interests. The score has fallen slightly in North Africa (from −0.5 to −0.7), South America (from −0.5 to −0.6), and the Middle East Asia (from -0.8 to -0.9); it has increased marginally in South, Central Asia (from -0.8 to -0.6) and Far East Asia (from -0.9 to -0.7) and Oceania (from -0.3 to -0.2). The Voice and Accountability score measures perceptions of the extent to which a country's citizens can participate in electing their government, as well as of the extent of freedom of expression, freedom of association and a free media. The score has improved in North Africa (from − 1.2 to − 0.8), in South and Central Asia (from − 1.1 to − 0.9); it has stayed relatively stable in the remainder of the other EU partner country regions.



Table 4. Conflict Prevention, Peace Building and Security indicators for EU partner countries CONFLICT PREVENTION, PEACE BUILDING AND SECURITY All partner countries Africa, North of Sahara Africa, South of Sahara America, North & Central America, South Asia, Middle East Asia, South & Central Asia, Far East Europe: Belarus, Moldova, Ukraine Oceania More advanced developing countries Number of violent deaths per 100 000 2014 8.1 2.3 9.3 29.6 19.6 5.3 4.7 5.1 4.3 8.7 6.4 2015 .. .. .. .. .. .. .. .. .. .. .. 2016 8.0 2.4 9.4 28.0 16.6 5.4 4.7 5.7 4.2 8.6 6.1 .. =no new data Overall, the EU partner countries recorded an average of eight violent deaths per 100 000 population. The number is highest in North and Central America (28), followed by South America (17). However, both these EU partner country regions record a decrease from 30 to 28 (North and Central America), and from 20 to 17 (South America) when compared to the values as of 2014. North Africa displays the lowest rate of violent deaths per 100 000 population (2).



Table 5. Agriculture, Food Security and Nutrition indicators for EU partner countries AGRICULTURE, FOOD SECURITY AND NUTRITION All partner countries Africa, North of Sahara Africa, South of Sahara America, North & Central America, South Asia, Middle East Asia, South & Central Asia, Far East Europe: Belarus, Moldova, Ukraine Oceania More advanced developing countries Cereal yield per ha (kg) 2014 2 523 3 139 1 433 2 164 3 420 1 796 3 353 4 273 3 870 3 342 3 696 2015 .. .. .. .. .. .. .. .. .. .. .. 2016 2 545 2 923 1 478 2 138 3 267 1 583 3 382 4 385 4 244 3 410 4 267 Prevalence of stunting (moderate and severe) of children aged below five years (%) 2014 34.8 23.4 37.4 26.5 18.4 28.3 40.2 31.1 4.4 43.4 5.3 2015 32.1 18.4 34.8 24.4 16.4 28.5 37.7 27.1 4.1 44.1 5.3 2016 32.2 18.4 34.9 24.3 15.6 28.5 37.7 27.1 4.1 44.1 5.7 Prevalence of undernourishment (%) 2014 16.4 5.0 19.3 17.8 11.8 21.4 18.2 14.1 5.0 6.7 5.6 2015 15.8 5.0 18.8 18.1 9.5 20.8 17.6 12.8 5.0 7.0 5.3 2016 15.8 5.0 18.6 18.1 9.5 20.8 17.6 12.8 5.0 7.0 5.3 .. = no new data The cereal yield per hectare in EU partner countries has slightly increased over the last two years (up from 2 523 kg to 2 545 kg of cereal yield per hectare). Except for the North Africa, South America and Middle East Asia, the other EU partner country regions have seen an improvement in terms of yield per hectare. The value continues to be lowest in sub-Saharan Africa at 1 478 kg per hectare. The latest figures released for the prevalence of stunting of children aged below five years (%) have only been updated for 12 EU partner countries compared to the previous reporting 12 months ago. Looking at the course of the last two years, the average prevalence in partner countries has fallen, from 34.8 % to now 32.2 %.

The European Commission developed a tool to assess country level progress in stunting, both in terms of prevalence and numbers of children affected. This tool has been adopted by the World Health organisation (WHO) and is currently hosted by the latter under the logo of both organisations. Survey data up to December 2016 shows that in the 40 focus countries in the EU Nutrition Action Plan, the rate of stunting reduction accelerated between 2012 and 2016, and that the number of children expected to be averted from stunting by 2025 is now just over two million. This marks important progress since last year, when the anticipated drop was just under two million. This is an important improvement, even though it cannot be attributed to European Commission actions alone. Nevertheless, with the significant increase in the EU’s commitments to nutrition expected between 2015 and 2016, there is scope for even further improvement next year and beyond. The latest estimates released for undernourished people have not changed since the previous reporting 12 months ago, except for a change for Senegal (down from 24.6 % in 2015 to 10 % for 2016). Looking at data reported within the last 24 months, there has been a slight decline in the proportion of undernourished people from 16.4 % to 15.8 %. Most EU partner country regions have shown a small reduction in the rate of people who do not have enough to eat. However, the hunger rate continues to vary substantially by region, for example North Africa is close to eradicating food insecurity, having maintained a prevalence rate of 5 %, whilst in Middle East Asia one- fifth of the population (20.8 %) suffer from undernourishment.



Table 6. Energy indicators for EU partner countries ENERGY All partner countries Africa, North of Sahara Africa, South of Sahara America, North & Central America, South Asia, Middle East Asia, South & Central Asia, Far East Europe: Belarus, Moldova, Ukraine Oceania More advanced developing countries Percentage of the population with access to energy services (%) 2014 62.6 99.4 32.4 80.9 92.1 83.3 73.7 84.4 99.8 22.9 96.5 2015 64.3 100.0 35.7 81.3 94.8 85.4 76.3 87.7 100.0 26.2 97.4 2016 .. .. .. .. .. .. .. .. .. .. .. Renewable energy production as a proportion of total energy production (%) 2014 25.4 6.2 23.5 28.0 69.6 7.7 33.0 40.2 7.1 _ 1.1 2015 .. .. .. .. .. .. .. .. .. .. .. 2016 24.7 6.0 24.1 26.7 67.8 5.7 32.1 39.0 4.9 - 1.5 .. =no new data No new data was reported for the percentage of the population in all EU partner countries who have access to energy services in 2016. As of 2015, the percentage of the population in all EU partner countries who have access to energy services has increased to 64.3%. Despite a significant improvement of 3.3 percentage points, the rate in sub-Saharan Africa remains low at only 35.7 %. One quarter of energy in the EU partner countries comes from renewable sources (24.7 %). The largest share is found in South America with 67.8 % of energy from renewable sources, followed by Far East Asia at 39 %, South and Central Asia at 32.1 % and sub-Saharan Africa at 24.1%. The lowest shares are found in North Africa (6 %), Middle East Asia (5.7 %) and Europe (Belarus, Moldova and Ukraine) (4.9 %).

Table 7. Public Finance Management indicators for EU partner countries PUBLIC FINANCE MANAGEMENT All partner countries Africa, North of Sahara Africa, South of Sahara America, North & Central America America, South America Asia, Middle East Asia Asia, South & Central Asia Asia, Far East Asia Europe: Belarus, Moldova, Ukraine Oceania More advanced developing countries Change in domestic revenue mobilisation as a percentage of GDP over three years (%) 2014 (2011-2014) -1.4 -2.1 -2.9 1.0 0.7 -3.4 -0.3 -1.1 1.0 - -2.0 2015 .. .. .. .. .. .. .. .. .. .. .. 2016 (2012-2015) -2.5 -4.6 -3.2 1.5 -3.1 -10.1 -1.0 1.0 -2.6 -0.6 0.9 .. = no new data Like the values reported in 2014 (covering 2011-2014), several EU partner countries decreased their share of domestic revenues (excluding grants) to their GDP. In the period covering 2012 to 2015, a total decline of 2.5 percentage points in domestic revenue mobilisation (excluding grants) as a share of GDP is recorded. Again, a significant number of EU partner countries were affected by the global slowdown in commodity prices, in particular the large reduction in revenues in oil exporting economies. In addition, the decline in revenues to GDP is particularly noticeable in a series of EU partner countries in crisis or in fragile situations. The large decline in Middle East Asia compared to the previous period 2011-2014 is due to large drops in Iraq (-14 %) and Yemen (-11.4 %).

Table 8. Education indicators for EU partner countries EDUCATION All partner countries Africa, North of Sahara Africa, South of Sahara America, North & Central America, South Asia, Middle East Asia, South & Central Asia, Far East Europe: Belarus, Moldova, Ukraine Oceania More advanced developing countries Primary Education Completion Rate (%) Female 2014 75.9 100.0 64.3 90.3 100.0 64.3 80.0 96.0 100.0 76.9 100.0 2015 77.1 100.0 67.0 94.8 100.0 64.4 77.0 100.0 100.0 77.4 100.0 2016 78.4 100.0 67.3 91.6 99.2 64.8 87.4 100.0 100.0 77.9 100.0 Male 2014 79.8 100.0 70.8 89.1 100.0 76.9 80.2 94.3 100.0 86.4 100.0 2015 80.5 100.0 71.1 93.3 100.0 77.1 82.1 99.6 100.0 86.9 99.8 2016 81.0 100.0 71.5 91.5 99.5 77.2 86.4 99.4 100.0 87.2 100.0 All 2014 77.9 100.0 67.6 89.7 100.0 70.7 80.1 95.2 100.0 81.8 100.0 2015 78.8 100.0 69.1 94.0 100.0 70.9 79.6 100.0 100.0 82.3 100.0 2016 79.8 100.0 69.4 91.6 99.3 71.1 87.0 100.0 100.0 82.7 100.0 Lower Secondary Education Completion Rate (%) Female 2014 53.6 82.7 29.0 68.3 80.7 52.4 58.9 79.1 97.6 64.6 100.0 2015 56.9 78.1 35.5 68.6 93.4 56.1 64.0 85.2 96.9 66.4 99.3 2016 56.9 81.2 36.1 71.4 87.1 52.2 63.7 88.4 97.1 66.5 98.3 Male 2014 55.5 77.7 36.3 65.5 74.4 56.5 58.9 74.2 98.3 69.7 97.7 2015 58.3 69.8 41.0 64.5 85.9 61.6 63.5 81.6 97.3 71.5 97.4 2016 58.3 74.9 41.4 67.6 80.4 56.3 63.5 84.0 97.3 71.8 96.7 All 2014 54.5 80.1 32.6 66.9 77.5 54.5 58.9 76.6 97.9 67.2 98.9 2015 57.6 73.9 38.3 66.5 89.6 58.9 63.8 83.3 97.1 69.0 98.3 2016 57.7 78.0 38.8 69.5 83.7 54.3 63.6 86.1 97.2 69.2 97.5 Literacy rate of 15-24 year-olds (%) Female 2014 77.1 85.6 64.6 91.5 98.7 86.0 76.6 96.1 99.8 77.3 99.4 2015 77.0 85.6 64.5 91.4 98.7 86.0 76.8 96.1 99.8 77.3 99.4 2016 80.9 93.8 72.0 93.5 99.0 87.3 79.7 97.5 99.8 66.3 99.6 Male 2014 84.2 92.8 76.0 91.9 98.3 92.7 82.7 96.2 99.7 68.9 99.7 2015 84.1 92.8 76.0 91.9 98.3 92.8 82.7 96.2 99.7 68.9 99.7 2016 85.6 95.8 79.0 93.9 98.6 92.4 84.5 97.0 99.7 71.0 99.6 All 2014 80.6 89.3 70.1 91.7 98.5 89.5 79.6 96.2 99.8 73.0 99.5 2015 80.5 89.3 70.0 91.6 98.5 89.4 79.7 96.2 99.8 73.0 99.5 2016 83.3 94.8 75.5 93.7 98.8 89.9 82.2 97.3 99.7 68.7 99.6 … = no new data



For both education completion indicators, care should be taken when comparing previous values with the latest ones as the latter are dependent on country updates that are not necessarily released every year. The general trend over the last few years continues to be positive: children in developing countries are increasingly completing primary education all around the world. In EU partner countries, the primary completion rate stands at 79.8 %. The primary completion rate continues to increase in sub-Saharan Africa, but it still remains below average at 69.4 %. Completion rate in primary education in South and Central Asia has increased by 6.9 percentage points and stands at 87 %. The ratio of girls to boys completing primary education is also on a positive trend; however, girls are still lagging behind in some EU partner country regions (especially in sub-Saharan Africa, Middle East Asian countries and the Oceania region). Completion rate in lower secondary education stands at 57.7 % on average in EU partner countries. Sub-Saharan Africa continues to have the lowest rate among all regions (38.8 %), although there has been an increase of 6.2 percentage points since 2015. In contrast, EU partner country regions with rates of at least 80 % are South America (83.7 %), Far East Asia (86.1 %), Europe (Belarus, Moldova and Ukraine; 97.2 %) and more advanced developing countries (97.5 %). In sub-Saharan Africa, Oceania and Middle East regions, girls lag four to five percentage points behind boys. In contrast, in North Africa, North & Central and South America, and Far East it is boys who lag between four to six percentage points behind girls. While remarkable progress has been made worldwide, challenges persist: inclusion and equity are important aspects as inequalities are hitting the most disadvantaged groups (e.g. poorest families, ethnic minorities, girls etc.) not only in terms of access and completion but also for learning outcomes. Too many children are still not able to read, write and count despite attending several years of schooling or because they were deprived of education. Conflicts and humanitarian crisis play a big role in children's education: an estimated 35 % of children of primary school age that are not in school live in conflict-affected areas. While the global literacy rate of 15-24 year-olds has steadily increased over the past decades and the gap between women and men has narrowed, there are still 103 million youth who lack basic literacy skills worldwide, and more than 60 % of them are women. In EU partner countries, the literacy rate stands at 83.3 %. The lowest rates are found in the Sub-Saharan African region at 75.5 % even though it has increased by 5.4 percentage points, and Oceania (68.7 %), where Papua New Guinea has experienced a significant decline since the previous data collection (values as of 2015).

Table 9. Health indicators for EU partner countries

Health All partner countries Africa, North of Sahara Africa, South of Sahara America, North & Central America, South Asia, Middle East Asia, South & Central Asia, Far East Europe: Belarus, Moldova, Ukraine Oceania More advanced developing countries Under-five mortality rate (per 1 000 live births) 2014 68.2 25.7 89.0 33.0 21.6 31.5 62.6 29.6 9.6 54.0 6.5 2015 .. .. .. .. .. .. .. .. .. .. .. 2016 64.1 24.1 83.1 31.6 20.3 29.9 60.3 27.5 8.7 51.1 6.0 Maternal mortality ratio (per 100 000 live births) 2014 381.8 80.4 571.1 146.2 93.7 155.9 198.2 109.1 20.8 194.5 14.0 2015 355.5 70.2 542.5 139.4 87.9 148.7 179.3 100.1 20.5 185.8 13.5 2016 .. .. .. .. .. .. .. .. .. .. .. HIV prevalence among population