COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 02.02.1996 
COM(96) 32 final 
REPORT FROM THE COMMISSION 
on cooperation with European 
non-governmental development 
organizations (NGDOs) in those fields 
of importance to developing countries 
(1994 financial year) 

EXPLANATORY MEMORANDUM 
1. At its meeting on 28 November 1977, the Council approved the procedure to be 
followed in using appropriations under Item B7-5010 of the Community budget for 
cofinancing operations with non-governmental development organizations (NGDOs).l 
Under this procedure the Commission has to present an annual report to the Council 
on the use of the appropriations allocated during the preceding year. 
Accordingly, the Commission is presenting this report for 1994. 
2. Although the Council's agreement concerns only appropriations under Item B7-5010, 
the report also covers other major spheres of cooperation with NGDOs, such as food 
aid, humanitarian aid, special programmes and coordination between NGDOs. The 
various contributions made by the relevant Commission departments provide an 
overview. 
See Council document R/207/78 (GCD) of 26 January 1978. 
r-
v Aï».-_ . • ' ; '. 
CONTENTS 
INTRODUCTION 1 
COOPERATION WITH NGDOs IN 1994 2 
I. COFINANCING OF DEVELOPMENT SCHEMES AND PUBLIC 4 
INFORMATION CAMPAIGNS 
(Item B7-5010 of the Budget) 
1.1 Overview 4 
1.2 Cofinancing of development schemes in developing countries 6 
1.2.1 European NGDOs' sustained support fo 
partners in the South 6 
1.2.2 Block grants 6 
1.2.3 Development projects: recipient groups and 7 
sectors 
1.2.4 Recipient groups and countries 8 
1.3 Cofinancing of public information campaigns in the Community 10 
1.3.1 Sustained Community support for NGDOs and 
the situation in 1994 10 
1.3.2 Types of development education project — 10 
1.4 Cofinancing programme from 1976 to 1994 11 
1.5 Relations with the NGDO Liaison Committee 12 
1.6 Outlook 13 
A <c-
Page 
II. OTHER AREAS OF COOPERATION WITH NGDOs 14 
2.1 Food aid channelled through NGDOs 
(Community budget title B7-2) 14 
2.2 The Community's contribution to storage programmes 
(Community budget article B7-202) 17 
2.3 European Community Humanitarian Office (ECHO) 
(Community budget article B7-510, Lome Convention 
and PTOM decision) 17 
2.3.1 Activities in 1994 17 
2.3.2 Humanitarian aid operations in 1994 18 
2.3.3. Cooperation with NGOs 19 
2.4 Cooperation with NGOs on self-sufficiency for refugees, 
displaced persons and returnees in Asia and Lalin America 20 
(Community budget article B7-302) 
2.5 Aid for NGDOs operating in Chile 21 
(Community budget item B7- 5013) 
2.6 North-South cooperation projects in the campaign 22 
against drug abuse 
(Community budget item B7-5080) 
2.7 Cooperation with NGOs on rehabilitation in 1994 22 
2.7.1 Design, scope, eligibility criteria and 
financing of rehabilitation programmes 22 
2.7.2. Role of NGOs 24 
2.7.3 Rehabilitation schemes in 1994 24 
2.7.4. Community budget item B7-5076 24 
/I<1 
Page 
2.8 Special programme for South Africa 25 
(Community budget item B7-5070) 
2.9 Assistance for rehabilitation programmes in southern Africa 27 
(Community budget item B7-5071) 
2.10 Community operations linked to the Middle East peace process 30 
(Community budget item B7-4083) 
2.11 Programme for NGOs operating in Vietnam 30 
(Community budget item B7-5014) 
2.12 Programme for NGOs operating in Cambodia 30 
(Community budget item B7-5015) 
2.13 Decentralized cooperation in developing countries 31 
(Community budget item B7-5077) 
A tu 
TABLES 
relating to heading B7-5010 
Page 
I. EC-cofinanced development projects by recipient 
country from 1976 to 1994 inclusive 34 
II. Breakdown by Member State of Community funds 
allocated from 1976 to 1994 inclusive 37 
III. Breakdown by Member State of Community funds 
allocated in 1994 38 
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INTRODUCTION 
Since its inception 20 years ago, cooperation between NGDOs and the Community has 
given tangible expression to the Community's part in the support provided by Europe's 
citizens to the poorest groups in the Third World. It mainly involves the cofinancing of 
development programmes in the developing countries, campaigns to heighten public 
awareness in Europe, food aid and humanitarian aid. In recent years cooperation 
between the Community and NGDOs has been diversified further with the introduction 
of new budget headings as indicated in this report and an increase in the funds available. 
In 1984 the Commission had just three budget headings for NGOs with total financing 
of ECU 137 million. Ten years on, there are more than thirty, and the modest budget 
of some ECU 130 million has swollen to over ECU 800 million. Thus, in less than a 
decade, NGDOs' involvement in directly administering funds from the Community's 
development budget has grown appreciably, making them the institutional category 
outside the Community institutions administering the largest budget in absolute terms. 
This shows that the Community's confidence in these organizations has grown steadily. 
NGDOs help create the basic conditions for self-reliant development besides being 
capable of acting effectively in dealing with emergencies and rehabilitation work. 
The NGDOs' key role as EC partners calls for high standards of internal management 
and organization, and compliance with the management and control rules laid down by 
the Commission and the Court of Auditors. 
This 1994 annual report devotes special attention to the results of NGDO operations 
cofinanced by the Commission under heading B7-5010. Owing to the large number of 
such operations, and with an eye to keeping the report within manageable proportions, 
the lists of development projects and information campaigns has been attached to the 
report. These are obtainable from the Directorate-General for Development (VIII/B/2). 
EC COOPERATION WITH NGDOs IN 1994 
In 1994 the European Community's contribution to operations carried out by NGDOs 
amounted to ECU 803.3 million, broken down as follows: 
ECU 129.6 million for cofinancing development schemes in the developing countries 
(Item B7-5010), an increase of 7.3% on 1993; 
ECU 14.5 million for cofinancing public information campaigns in the Community 
on development issues (Item B7-5010), 7.4% up on 1993; 
ECU 174.0 million for food aid (Title B7-2 of the budget), up 3% on 1993; 
ECU 4 million for the purchase of food products by NGOs (Item B7-5011), down 
20% on 1993; 
ECU 320.0 million for humanitarian aid (ECHO), up 60% on 1993; 
ECU 32.2 million for refugees and displaced persons (Article B7-302), down 19% 
on 1993; 
ECU 3.8 million for aid to NGOs operating in Chile, with a view to strengthening 
the democratic process (Item B7-5013), down 11% on 1993; 
ECU 5.0 million for drug abuse control (Item B7-5080), down 12% on 1993; 
ECU 66.7 million for the programme of measures for South Africa (Item B7-5070), 
down 24% on 1993; 
ECU 14.2 million for assistance towards rehabilitation programmes in southern 
Africa (Item B7-5071), down 11% on 1993; 
ECU 6.0 million to help further the peace process in the Middle East (Item B7-4083); 
ECU 2.0 million for aid to NGOs operating in Vietnam (Item B7-5014), same amount 
as 1993. 
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ECU 1.0 million for aid to NGDOs operating in Cambodia (Item B7-5015), same 
amount as 1993. 
ECU 30.0 million for rehabilitation and reconstruction projects in developing 
countries (Item B7-5076). 
This overall contribution of ECU 803 million in 1994 represents an increase of 14% over 
1993 (ECU 702 million) and a 27% increase over 1992 (ECU 632 million). 
The wide array of budget headings open to NGDOs reflects their ability to work in many 
different sectors, particularly in fields where official Community aid cannot operate or 
where it is preferable to encourage schemes via NGDOs. NGDOs also have an important 
role to play in the follow-up to humanitarian operations financed by the Community in 
connection with reconstruction and rehabilitation and in fostering human rights and 
democracy. 
The above list covers only the most significant spheres of cooperation with NGDOs, and 
those in which NGDO activities are financed for sizeable amounts. In recent years pilot 
schemes and one-off operations have also been carried out by NGDOs to help developing 
countries. These have been financed either from other budget headings or by the 
European Development Fund (EDF). Such operations are administered on a 
decentralized basis by a large number of Commission departments, so it has not been 
possible to compile a detailed list for the purposes of this report. 
The following chapters give a detailed account of the various areas of cooperation with 
NGDOs in 1994. 
I. COFINANCING OF DEVELOPMENT SCHEMES AND PUBLIC Information 
CAMPAIGNS (Item B7-5010 of the Budget) 
1.1 Overview 
In 1994 NGDOs again proved well able to absorb the funds made available to them 
through EC cofinancing. The large number of requests was a direct consequence of 
initiatives and requests put to European NGDOs by partners in the South, and of the 
former's success in mobilizing other financial public and private funds, the net result 
being a significant multiplier effect. 
A sum of ECU 145 million was entered in the 1994 budget as appropriations for 
commitment under Item B7-5010, a marked increase over previous years. As in previous 
years, virtually the whole amount had been committed by the end of the year, as the 
table below illustrates: 
YEAR 
1976 
1984 
1986 
1988 
1989 
1990 
1991 
1992 
1993 
1994 AVAILABLE 
APPROPRIATIONS 
2.5 
35.0 
46.0 
80.0 
80.0 
90.2 
104.6 
110.0 
135.0 
145.0 COMMITMENTS 
(ECU m) 
2.5 
34.4 
45.0 
79.8 
79.6 
90.2 
104.1 
109.9 
135.0 
145.0 COMMITMENT 
RATE 
(%) 
100 
98 
98 
100 
99.5 
100 
99.5 
100 
100 
100 
In 1994, the overall figures for cofinanced operations (development schemes and public 
information campaigns) were as follows:1 
I 458 cofinancing applications dealt with by the Commission's departments, 
requesting a tolal Community contribution of ECU 366.4 million (not including a 
large number of applications submitted informally for the purpose of verifying 
whether a formal request would be eligible and ruled out following preliminary 
discussions with Commission staff); 
769 operations cofinanced for a total Community contribution of ECU 144.2 million 
(in financial terms, 39.4% of the applications handled); 
359 applications, corresponding to requested funding of ECU 72.9 million, which 
were turned down or withdrawn (20%); 
330 applications, representing financing of ECU 149.3 million, still under appraisal 
at the end of 1994 (40.7%). 
The Commission was able to meet more requests in 1994 as the budget had increased by 
ECU 10 million compared with 1993. 
Commission departments continued to handle this large number of requests in accordance 
with the criteria and rules laid down in the General Conditions for Cofinancing.2 In 
examining each dossier, they considered the professionalism and financial soundness of 
the NGDO; the quality of the project; the Southern partner's operational capacity and the 
quality of the ties between it and the European NGDO; the impact of the project and its 
viability; and the potential multiplier effect for the target groups concerned. 
As in the past, the Commission has sought to uphold the basic principles on which 
cofinancing is founded among other things so as to maintain a high standard for the 
schemes cofinanced and to ensure that "small" NGDOs have access to funds. 
A full list of development operations in the developing countries and campaigns to 
educate public opinion in Europe which the Commission cofinanced in 1994 can be 
obtained from the "Decentralized Cooperation and Cofinancing with NGOs" Unit 
(V1H/B/2), 200 rue de la Loi, 1049 Brussels. 
Commission of the European Communities, General Conditions for the Cofinancing 
of Projects undertaken in Developing Countries by Non-Governmental Organizations 
(reference VIII/764/87) and General Conditions for the Cofinancing of Projects to 
Raise Public Information of Development Issues Carried Out by Non-Governmental 
Organizations in the European Community (reference VIII/271/87). 
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In 1994 the amount of payment appropriations under Item B7-5010 rose to ECU 125 
million. Payments made over the year amounted to ECU 124 927 000, of which 
ECU 68.7 million to finance commitments made in preceding years. 
1.2 Cofinancing of development schemes in developing countries 
1.2.1 European NGDOs' sustained support for partners in the SouUi 
As in previous years, the Commission channelled approximately 90% of the 
appropriations under Item B7-5010 into the cofinancing of operations conducted in 
developing countries, the balance being earmarked mainly for cofinancing campaigns to 
heighten public awareness in the European Community. 
For operations in developing countries, the situation regarding requests and commitments 
was as follows: 
1 205 applications handled by the Commission for a total Community contribution 
of ECU 337.5 million (an increase of 26% in financial terms over 1993); 
599 operations cofinanced witii a Community contribution of ECU 129.7 million (an 
increase of 7.3% over 1993); 
307 applications, requiring financing of ECU 67.2 million, turned down or 
withdrawn; 
299 applications, representing financing of ECU 140.6 million, still at the appraisal 
stage at the end of the year. 
It should be stressed that the Community continues to abide by the principle oj jiving 
special consideration to applications from new NGDOs. It helps them to increase their 
level of professionalism, either directly or with the help of experienced NGDOs. 
There was a modest increase in the average Community contribution to the schemes 
cofinanced: it rose to ECU 216 456 per project in 1994 from ECU 207 452 in 1993. 
1.2.2 Block grants 
If a European NGDO has cooperated satisfactorily with the Commission for a number 
of years, it may be offered an additional facility: access to the block-grant system. 
NGDOs set great store by this system as it offers them rapid and flexible financing for 
a wide range of mini-operations (e.g. the purchase of equipment, construction of small-
scale infrastructure, training assistance and health) and enables them to meet the needs 
of the recipient groups with finely-tuned schemes. Such operations are often identified 
by NGDOs to complement the larger projects they are supporting or they may serve to 
establish the initial contacts for cooperation with new partners in the South. 
Between 1984 and 1994, the Commission cofinanced 1 014 block grants relating to 
13 352 mini-operations accounting for a total of ECU 122.3 million. The average 
Community contribution was ECU 9 160. The table below shows the trend over the 
period in question. 
Year 
1984 
1985 
1986 
1987 
1988 
1989 
1990 
1991 
1992 
1993 
1994 Amount of 
Block 
Grants 
3.1 
3.7 
5.7 
6.8 
8.8 
9.9 
9.7 
13.1 
18.1 
21.9 
21.5 % OF 
Commitments 
under article 
9 
11 
13 
11 
11 
12.4 
10.8 
12.6 
16.5 
16.2 
14.8 No of 
Block 
Grants 
39 
43 
50 
59 
79 
96 
97 
118 
140 
159 
134 No of Mini-
Operations 
383 
450 
671 
822 
961 
1 082 
1 099 
1 447 
1 935 
2 263 
2 239 Amount given by 
the Community per 
Mini-Operation 
(ECU) 
8 202 
8 146 
8 507 
8 272 
9 153 
9 105 
8 857 
9 061 
9 363 
9 666 
9 606 
1.2.3 Development projects: recipient groups and sectors 
A wide array of development projects were cofinanced in 1994. Examples of such 
projects have been chosen to illustrate the recipient groups and the various sectors. 
NGDOs have been attaching considerable importance to projects aimed specifically at 
women and the Commission has cofinanced a number of projects that enhance their role 
in productive and income-generating activities in both urban and rural areas. 
Street children are another important group of beneficiaries. In recent years they have 
become a particularly vulnerable group in the large cities of the South. 
There are also development projects under way for, and involving, indigenous peoples 
and their representative organizations in fields such as protection of fundamental rights, 
productive development, bilingual education and environmental protection. The countries 
concerned included Bolivia, Colombia, Peru, Mexico, Thailand and India. 
Disabled people form another key group of beneficiaries in the developing countries 
(training, reintegration and other projects). 
As regards the sectors of activity, NGOs continued to give priority to rural development, 
training and health in 1994. These are sectors that are important both in terms of basic 
needs and the large number of initiatives emanating from people in the South themselves. 
A substantial number of integrated development projects were carried out, this being a 
feature of NGDOs' work and one of the best ways of triggering grassroots development. 
Integrated development projects generally involve various types of groupings (peasant 
associations, small cooperatives, village associations, women's organizations, etc.) and 
embrace more than one sector, for instance combinations of agriculture, craft trades, 
training, health, environmental protection and the building of infrastructure. 
Productive projects have assumed growing importance among the projects cofinanced in 
recent years. 
Training retains a high profile: projects covered vocational training, training of 
instructors, training in appropriate technologies and the like. 
1.2.4 Recipient uroups and countries 
The 599 development projects cofinanced in 1994 were carried out in 105 developing 
countries. 
The geographical breakdown of the Community's contributions was as follows: 
- Sub-Saharan Africa 
- Latin America 
- Asia 
- Caribbean 
- Mediterranean 
- Pacific 
- Other 
TOTAL 1994 
(ECU m) 
44.0 
52.7 
20.7 
4.8 
6.9 
0.1 
0.5 
129.7 (%) 
33.9 
40.6 
16.0 
3.7 
5.3 
0.1 
0.4 
100.0 1993 
(%) 
38.3 
34.6 
18.5 
3.0 
4.0 
0.4 
1.2 
100.0 1992 
(%) 
36.3 
41.3 
15.5 
2.2 
3.8 
0.4 
0.5 
100.0 
And the breakdown between ACP and non-ACP countries was as follows: 
ACP countries 
Non-ACP 
TOTAL 1994 
(ECU m) 
47.2 
82.5 
129.7 (%) 
36.3 
63.7 
100.0 1993 
(%) 
42.5 
57.5 
100.0 1992 
(%) 
38.5 
61.5 
100.0 
It is difficult to give an exhaustive explanation for these fluctuations because differences 
in geographical breakdown from one year to the next stem from a multitude of factors. 
Nevertheless, we can pick out some which illustrate the overall picture. In the case of 
Africa, political conflicts, dictatorships and civil wars have reduced the scope for project 
implementation by grassroots organizations. 
Looking at the trends for individual countries in recent years, we see that some African 
countries, such as Cameroon and Zaire (where NGO cofinancing is a way of continuing 
humanitarian aid to a country where official development assistance has been 
suspended), have seen an increase in contributions, while those of Burundi and Rwanda 
have gone down. There has been a large increase in countries such as Ethiopia, Uganda 
and Mali. 
In Latin America, Brazil, Peru and Nicaragua, for example, remain major recipients. 
In Asia, India, traditionally a leading recipient, saw a further increase in cofinanced 
projects in 1994. 
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1.3 Cofinancing of public information campaigns in the Community 
1.3.1 Sustained Community support for NGDOs and the situation in 1994 
From a modest beginning of 17 projects cofinanced at a cost of almost ECU 200 000, 
the budget has increased appreciably in recent years. In 1994, 170 projects totalling 
ECU 14.5 million were cofinanced, which accounted for 10% of budget Item B7-5010. 
In 1994, the situation regarding requests and commitments was as follows: 
- 217 cofinancing applications handled by the Commission (not including multi-project 
programmes) requesting a total Community contribution of ECU 27.4 million; 
- 134 projects cofinanced with a Community contribution of ECU 13 million (a 12.8% 
increase over 1993). 
- 52 applications, requiring financing of ECU 5.7 million, turned down or withdrawn. 
These applications represented in financial terms 20.8% of the total handled; 
- 37 applications, representing financing of ECU 8.7 million, still under appraisal at 
the end of the year; 
In addition, the EC cofinanced 36 multi-project programmes with a Community 
contribution of ECU 1.5 million. 
1.3.2 Types of development education project 
Schools are a key target of development education projects, the main aim of which is to 
produce teaching materials and train teachers to use the material and lead classroom 
discussion. The subjects are varied, although there is a preference for general topics on 
North-South relations, cultural or daily life, the social and economic situation in 
developing countries, the environment and so on. Curriculum reforms in some European 
countries have prompted NGDOs to get development education included. 
Other target groups of information campaigns are policy-makers, NGDOs themselves 
(members and collaborators), trade unions, the media, etc. Some of the topics covered 
in projects cofinanced in 1994 include: international trade and North-South relations (in 
connection with GATT); democracy and development; environment and development, 
North-South intercultural relations, immigration and development, fair trade. 
11 
Most projects employed a mix of communication techniques such as: publications, 
audiovisual material, teaching materials, community activities, exhibitions, lobbying, etc. 
1-4 Cofinancing programme from 1976 to 1994 
The cofinancing programme under Item B7-5010 was launched in 1976 on a trial basis 
with a small amount of commitment appropriations (ECU 2.5 million). In following 
years the appropriations were gradually increased, partly as a result of active support 
from the European Parliament, and in 1994 climbed to ECU 145 million. The table in 
point 1.1 shows the rise in the appropriations available under Item B7-5010 since 1976. 
Over this period, 7 523 NGDO operations were cofinanced; the Community contribution 
to these operations was ECU 1 030 million. 
The breakdown of operations in developing countries and public information campaigns 
was as follows: 
1976-1994 
Projects in 
developing 
countries 
Public information 
TOTAL NUMBER OF * 
PROJECTS 
6 177 
1 346 
7 523 EC 
CONTRIBUTION 
(ECU m) 
934.1 
96.3 
I 030.4 % 
90.7 
9.3 
100 
7 523 development operations were conducted by 463 NGDOs in 122 developing 
countries. 
The geographical spread of Community contributions to these operations is as follows: 
1976-1994 ECU m % 
Sub-Saharan Africa 372.8 39.9 
Latin America 306.7 32.8 
Caribbean 31.9 3.5 
Asia 165.6 17.7 
Mediterranean 49.6 5.3 
Pacific 4.9 0.5 
Other 2J3 03 
TOTAL 934A 10O0 
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ACP countries received 44% and non-ACP countries 56% of the total Community 
contribution. 
Tables I and II in the Annex give breakdowns by recipient developing country and by 
EU Member State. 
1 346 public information campaigns were run by 382 NGDOs in the twelve Member 
States. 
Roughly half of all operations cofinanced and 57% of all commitments took place during 
the last five financial years, from 1990 to 1994. The average Community contribution 
to operations in developing countries grew from ECU 123 000 in 1985 to ECU 216 348 
in 1994, and the average contribution to public information campaigns from ECU 82 027 
to ECU 85 495. 
1.5 Relations with the NGDO Liaison Committee 
Over a period of 20 years the Commission has built up close relations with the NGDO 
Liaison Committee, which is a democratic umbrella group for more than 800 European 
NGDOs. There is a representative from each EU Member State, elected by national 
platform. 
Once a year the Liaison Committee holds a General Assembly, which is the association's 
supreme body. To mark the twentieth anniversary of the NGDOs' first meeting the 
general assembly was divided this year into two distinct parts: 
general assembly of the European NGO's delegates 
open conference on "Conflicts, development and military intervention: roles, 
positions and experiences of the NGOs". 
NGDO representatives discussed these topics in four workshops on the principles behind 
intervention, the institutional players, effective means of action and non-governmental 
action. 
The Commission has regular meetings with the Liaison Committee to discuss NGDO-
related issues such as development policy and financing, development education, 
humanitarian aid, food aid and food security and in general any other Community policy 
which can affect development. Following a meeting between Mr Marin and the Liaison 
Committee in May 1994 it was decided to explore the problems encountered hi relations 
between NGOs and the various Commission departments which manage the funds 
earmarked for them or to which they have access. This look place in the light of the 
growing role of NGOs in EC development cooperation and with the aim of seeking to 
identify principles and methods to guide these relations, while taking account of 
individual situations. 
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1.6 Outlook 
In 1994, as in previous years, the results of cooperation between the European Union 
and NGDOs were fruitful and encouraging, and the amount of Community resources 
made available to the various NGDO schemes rose appreciably, from ECU 632 million 
ECU in 1992 to ECU 702 million in 1993 and ECU 803 million in 1994. 
Non-governmental development aid should play an increasingly important role in meeting 
the challenges stemming from greater commitment and a greater show of solidarity on 
the part of Europe vis-à-vis the developing world. To assume this role more fully, the 
NGDOs must try to become more professional as regards die nature and formulation of 
their objectives and their financial management, which should be sound and transparent. 
Inter-organizational coordination also needs to be stepped up in the interests of increasing 
the impact of their projects in die Soutii and involving the general public in the North 
in their objectives and tasks. 
Although the EU's development cooperation is aimed at all developing countries, there 
are still some areas, such as die Maghreb, where NGDO activities are thin on the 
ground. Our historical, geographical and cultural links with those countries, and the 
seriousness of the socio-economic problems engendered by significant migration towards 
Europe, oblige us to act togeUier to take practical steps to foster the development of their 
civil societies, a task for which die help of European NGDOs will be needed. 
It is also important that European NGDOs strengthen their links wiUi NGOs and 
grassroots organizations in die OSouth so that they are more receptive to new initiatives 
from the Soudi. 
14-
II. OTHER AREAS OF COOPERATION WITH NGDOs 
2.1 Food aid channelled through NGDOs (Title B7-2) 
In 1994 Community food aid channelled through NGDOs totalled ECU 187 440 000. 
This accounts for 33.65% of all EC-financed food aid. 
Food aid allocated under the 1994 programme was up by 10.6% on the 1993 figure 
(ECU 169 421 000). 
The programme of food aid channelled through NGDOs is run by EURONAID, a service 
agency set up and managed by 24 European and international NGDOs which are among the 
principal handlers of Community food aid. The procedures governing the delivery and use 
of aid by NGDOs and the justifications they have to provide are decided by the Commission 
in consultation with EuronAid. 
The third link in this chain are the Commission's desk officers and, above all, the 
Commission Delegations, which play an active "on-the-spot" role at every stage of the 
execution of food aid operations. 
The overall total of products made available to the NGDOs under the programme breaks 
down as follows: 
PRODUCT QUANTITY % VARIATION ON 1993 
(tonnes) 
Cereals 355 000 - 3.5 
Skimmed milk powder 14 200 - 14.9 
Sugar 4 502 - 22.9 
Vegetable oil 26 000 +17.2 
(Other products) (ECU 16 955 000) 
Some examples of these NGO schemes 
Assistance to the people of the western Haraghe (East Central Ethiopia), badly affected by 
the disastrous harvests of 1993. CARE-United Kingdom 
As a result of plagues of insects and irregular rainfall in August and September harvests in 
1993 in western Haraghe were sharply down on the average, by 70% to 80% in some 
regions. 
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With the help of an information system it has developed in the region, CARE was rapidly 
able to assess cereal needs for 1994 and gauge the urgency of the situation. It requested 
from the European Community, via EURONAID, aid of 5 000 tomies of wheat to be 
distributed for 60 days, in July and August, to 166 667 inhabitants of Haraghe in the form 
of daily rations of 500 grammes. 
This wheat was distributed free of charge. Setting up food for work programmes proved a 
non-starter owing to a lack of adequate infrastructure and the urgent nature of the operation. 
Once the wheat arrived at the port of Assab it was transported in lorries to central 
warehouses in Asebeteferi and Meisso. From there, CARE lorries conveyed it to the nine 
distribution centres in line with needs. 
Madagascar: agricultural rehabilitation programme in the Brickaville region , in the wake 
of cyclones Daisy and Gerelda. CARE-International. 
In mid-January 1994, cyclone Daisy struck the east coast of Madagascar. In the region of 
Brickaville, 50% of dwellings were wrecked, breadfiiiit and banana trees destroyed and 
whole areas flooded. On 2 February a second cyclone, Gerelda, caused dramatic floods and 
ruined not only crops, in particular sweet potatoes and of manioc, but also previous harvest 
and seed stocks. 58 000 people in the area were deprived of food. 
Once emergency aid in the form of food and medical care had been dispensed the most 
urgent need was to get agricultural production on its feet again in a region that is normally 
self-sufficient and a major supplier of the national market. 
CARE called on the European Community, DG VIII and ECHO to mount an agricultural 
rehabilitation programme. CARE's task, in the immediate aftermath of the disaster, was to 
feed the 58 000 people in need with rations of 7.5 kilos of rice each for 15 days, some 235 
tonnes in all. Rice, vegetable, beans and maize seeds were then distributed to 15 000 
families in the region. In these two schemes, the Community financed the purchase, in 
neighbouring regions or countries, of 65 tonnes of rice and 121 tonnes of seeds. It also 
funded local transport by lorries, distribution and the storage of all the products. 
Somalia: food for work operations for the personnel of the Ministries of Health and 
Education, and demobilized soldiers. Save the Children Fund, United Kingdom. 
- 16 
Following die civil war in northern Somalia, people who had taken refuge or been displaced 
by the fighting began to return to Somaliland (north of the country). To help diem resettle, 
the health and education systems of the areas concerned had to be bolstered. To encourage 
the new Ministries of Health and Education in tliis task, Save die Children (SCF) organized, 
tliroughout 1994, food for work operations for the staff of these administrations. It also 
undertook, in cooperation with the government, to distribute food rations to young 
demobilized soldiers in exchange for dieir weapons. The latter operation's aim, in 
conjunction with education programmes, was to help the soldiers reintegrate into civilian 
life. 
These operations were designed as provisional measures to last until die end of 1994. In the 
long term those in die sectors concerned would be encouraged to generate their own 
incomes. 
The aid from the European Community involved the delivery of 4 188.42 tonnes of cereals 
(rice, wheat and sorghum), of legumes (beans and lentils), sugar and vegetable oil. Once 
these products got to Somalia (cereals and legumes were bought where possible in the 
country itself), they were conveyed to and distributed in the target regions by the Ministry 
of Health, with the help of SCF. In all, this programme will have benefited 7 500 
demobilized soldiers and 15 000 Ministry officials, plus their families. 
Social assistance for Zaire: sale and free distribution of food rations to the poor in urban 
areas of Kinshasa. CDI Bwamanda, Belgium. 
Thousands of inhabitants of Kinshasa, the capital of Zaire, are unable to buy food at its 
local market price. They have therefore generally to go to nutrition centres, where diey can 
obtain cheap or free food rations. The Belgian NGO, CDI-Bwamanda, has been running 
such social programmes for some years. In 1994 it once more asked die European 
Community to finance a food programme for the poor. 4 150 tonnes of maize, groundnuts 
and of rice, bought in the country itself, were sold or distributed, according to their 
financial resources, for a year. The recipients were by and large children being weaned, 
badly nourished children under the age of five, pregnant or nursing women, the sick and 
the elderly. CDI-Bwamanda took charge of transport to Kinshasa and distribution of the 
food via nutrition centres and local charity committees. The NGO also saw to the 
processing and storage of the maize and rice. 
This programme helped feed the poorest citizens of the capital besides affording Zairian 
peasant farmers a guaranteed market for their food products. 
17-
2.2 The Community's contribution to storage programmes 
(budgetary article B7-202) 
Given the importance of the storage schemes for improving the food security of the people 
concerned, a number of these operations were financed by the Community and implemented 
by NGOs or international organizations. In 1994, six countries (Niger, El Salvador, 
Ethiopia, Eritrea, Zimbabwe and Mozambique) received such aid via NGOs for a total of 
ECU 1 337 722. 
OK-Zimbabwe: warehouse construction 
In 1994, the Commission financed, via the NGO HELP, the construction of three 
warehouses in three drought-prone districts of Zimbabwe. The effects on supplies are all 
the more serious as there is a severe lack of storage premises for the product of harvests 
(maize, groundnuts, sunflowers etc). 
The warehouses built with Community funding enabled the storage and marketing of the 
local harvest and inputs (in particular seeds and fertilizers). They helped Zimbabwe's 
government in its decentralization efforts and could also be used to store food aid in the 
event of a serious crisis. 
OK-Salvador: network of storage hangars 
Various NGOs arc working in El Salvador on agricultural development programmes 
designed to increase yields, conserve the soil and diversify crops, etc. Unfortunately, these 
efforts have come up against a major obstacle: losses during the maize and bean harvests, 
which are sometimes as high as 40%. 
To solve this problem, the Commission financed, via the NGO CRS, an aid programme in 
250 communities in the west and north of the country. Hangars to dry and store the grain 
have been built and community leaders have been trained in handling methods from harvest 
to storage. 
2.3. European Community Humanitarian Office (ECHO) 
2.3.1 Activities in 1994 
1994 was the second full year of ECHO'S operations. Against a backcloth of new or 
worsening international humanitarian crises, the Community beefed up the funds allocated 
to humanitarian aid, which rose from ECU 605 million in 1993 to well over ECU 760 
million in 1994. This international solidarity redounded to the benefit of 63 countries in 
the following regions: ACP (42.4 %), former Yugoslavia (35.3 %), Eastern Europe 
(0.4 %), former Soviet Union (11.9 %), rest of Asia, northern Iraq (6.3 %), Latin America 
(2.8 %) and North Africa (0.5 %). 
18 
About 85% of the Commission's humanitarian aid is distributed directly by its partners 
(41.9 % by NGOs, 32.7 % by United Nations agencies and 8.2 % by other international 
organizations). Some 150 partners signed the framework partnership agreement which took 
effect in September 1993. After a first year of running-in, it was universally agreed that the 
partnership agreement was an effective way of improving relations with the partners and 
that it had improved aid operations. The system will be further refined in 1995 on the 
strength of the outcome of the fruitful dialogue with the partners in 1994 on the experience 
gained in applying the agreement. 
The institutional framework of humanitarian action underwent two key changes. In July 
1994 the Commission sent the budgetary authority a communication in which it undertook 
to propose a legal basis for the budget headings used by ECHO for its humanitarian 
projects. A proposal defining the scope of humanitarian action and the methods of 
coordinating action with the Member States, international organizations and NGOs is to be 
tabled in the first half of 1995. The Commission has also decided to entrust to ECHO, 
from the beginning of 1995, the management of short-term food aid and humanitarian 
programmes worth some ECU 50 million, hitherto managed by the Directorate-General for 
Development (DG VIII). Large-scale food crises will be the subject of closer cooperation 
between the two Commission departments. 
In addition to improving the coordination and effectiveness of aid, ECHO also has the task 
of publicizing Community humanitarian aid operations. Its strategy is to ensure, along with 
its traditional partners, the NGOs and international organizations that itswork has a high 
profile. This cooperation has been largely satisfactory, but some organizations need to be 
regularly reminded that they are required by contract to ensure such publicity. Several 
publications that appeared in 1994 made the general public more aware of ECHO'S work. 
Several media events, organized in close cooperation with the Member States in Madrid, 
Berlin and Zagreb, put the spotlight on the humanitarian dimension of the European Union. 
Keen to draw lessons from past experience, ECHO carried out an evaluation of 33 
humanitarian operations undertaken since November 1993. This exercise was by and large 
appreciated by humanitarian aid partners who view it as a means of helping all sides to do 
better. The bulk of the evaluations painted a favourable picture of the partners' work and 
the problems raised were discussed in a spirit of partnership. ECHO is now putting together 
an evaluation handbook to help lend more structure to the exercise. 
2.3.2 Humanitarian aid operations in 1994 
Throughout the year, the Commission met the urgent needs of the victims of natural or 
man-made disasters in some 70 countries by concluding 1002 humanitarian aid contracts for 
a total of ECU 764 million. 
19 
The Commission's humanitarian aid operations in 1994 were financed from die Community 
budget (ECU 501 million, including a reserve of ECU 233 million) and by die European 
Development Fund under the fourth Lomé Convention (ECU 263 million). 
Approximately 85 % of the funds managed by ECHO are channelled through its partners, 
of which NGOs account for 41.9 %, UN agencies 32.7 % and odier international 
organizations 8.2 %. Only about 14 % of these funds were the subject of direct action by 
the Commission, essentially in former Yugoslavia. Even "direct action" depends, in most 
cases, on NGOs (often local), which help distribute die aid on the ground. It is important 
that the Commission, tlirough ECHO, is able to carry out direct action, but it has to be 
understood that this happens only when the traditional partners cannot cope in a given 
situation. 
2.3.3 Cooperation with NGOs 
Basic ECHO statistics for 1994 clearly reflect the partnership principle underlying all 
ECHO operations: 41.9% of die humanitarian aid funds managed by ECHO in 1994 on 
behalf of the European Union were the subject of contracts with NGOs. In 1994, 548 
contracts were signed with a total of 147 NGOs for humanitarian aid programmes in 63 
countries. 
1994 was the first full year of operations undertaken widi partners who had signed the 
framework partnership agreement launched in May and up and running since 
September 1993, At die end of 1994, 150 partners, including 144 NGOs, had signed. 
From the outset all die parties concerned, ECHO and its partners, knew that the operation 
of this framework agreement during the first year would be subject to trial and error and 
that it would need to be reviewed. The conclusions of diis review are currently being 
studied. 
During the year, ECHO, the NGOs and other partners often had occasion to consult each 
other on current and planned operations. Such consultations made for more rational use of 
scarce human and material resources in the overall plans for ACP countries and for other 
operations. 
Dialogue with the NGOs was not confined to operations. Several times during the year, the 
Commission and the NGOs discussed broader issues of common interest. Certain national 
NGOs' programmes were also the subject of frank and constructive debate. At Easter, the 
symposium organized by the Brussels-based NGO Liaison Committee on "Conflicts, 
development and military intervention" was the occasion for a lively debate within the 
international humanitarian community in which the issue of prevention figured prominently. 
-20 
2-4 Cooperation with NGOs on self-sufficiency for refugees, displaced persons and 
returnees in Asia and Latin America (Budgetary article B7-302) 
This budget heading was created at the initiative of the European Parliament in 1984 to help 
refugees, displaced persons and returnees become self-sufficient in the period between the 
end of the emergency and the longer-term development phase. 
Heading B7-302 appropriations have increased steadily since 1984. In the period 1984-94 
a total of ECU 318 593 000 was spent on over 300 projects implemented by a host of 
NGOs (European and local), international organizations (primarily the UNHCR) and 
government agencies.1 
In 1994, 66 projects were financed under Article B7-302 for a total of ECU 70 000 000: 
ECU 52 220 000 (60%) in Asia and ECU 22 780 000 (40%) in Latin America. Of diese, 
35 were cofinanced with NGOs, of which 17 (ECU 22 507 550) in Asia and 18 
(ECU 9 650 000) in Latin America., making a total of ECU 32 157 550, i.e. 45% of the 
total committed in 1994. 
The programmes implemented in 1994 for refugees, displaced persons and returnees were 
broad in scope and geographical spread. They were in line with the action plans adopted 
at the international conferences on refugees in Central America (CIREFCA, Guatemala, 
1989) and on Indochinese refugees2 (Geneva, 1989). The international institutions also 
receive aid for care and maintenance (UNHCR) and repatriation (UNOCHA,3 UNHCR4) 
operations. 
In Asia, operations focused on three key regions: Afghanistan/Pakistan, where the 
Commission supported integrated rural development projects to assist the return of refugees, 
Bangladesh where there are still many Rohingya refugees, and Cambodia, which received 
funds via NGOs for its reconstruction programme. In addition, there were one-off schemes 
in Thailand for Karen refugees and in Laos for returnees. 
In view of the peace process under way in Central America, Community aid in 1994 
focused on reconstruction and the socio-economic reintegration of displaced people, 
returnees and demobilized soldiers. Projects cofinanced and executed by European or local 
NGOs in 1994 in the region involved the promotion of agriculture and livestock production, 
vocational training, the development of basic health services/health staff training, 
improvement of infrastructure and protection of the environment. 
3 
4 A Commission working paper, SEC(92) 2426 - "Community aid to refugees, 
displaced persons and returnees in the developing countries of Asia and Latin 
America" outlines the aid granted in 1990-91. 
Vietnam and Laos. 
Afghanistan. 
Cambodia. 
21 
Of the 18 projects executed in Latin America, six concerned returnees and demobilized 
soldiers in Nicaragua and El Salvador and 12 were for the resettlement of returnees 
(Guatemala). 
2.5 Aid for NGDOs operating in Chile (Item B7-5013) 
Item B7-5013, first included in the Community budget in 1986, was allocated 
ECU 3 850 000 million in 1994. Its aim is to help the people of Chile through NGO 
projects, chiefly those groups deemed to be poor, in distress or in difficulties. 
The breakdown of operations cofinanced under Item 5013 in 1994 was as follows: 
BREAKDOWN OF OPERATIONS COFINANCED IN 1994 
UNDER ITEM B7-5Q13 OF THE BUDGET 
Human rights, 
decentralization, 
democratization 
Health 
Rural productive 
activities 
I Inions 
Ethnic minorities 
Promotion of 
women 
Young people 
Training 
Improving living 
conditions 
Urban productive 
activities 
TOTAL 
Audit 
Monitoring of 
B7-5013 
TOTAL Number of 
operations 
6 
1 
8 
4 
6 
2 
6 
8 
6 
4 
51 Cost 
1325594 
65156 
891179 
205458 
585035 
167393 
1407382 
1145441 
1168114 
398020 
7358772 Commission 
contribution 
(ECU) 
435871 
35300 
501495 
179398 
341456 
122322 
567074 
588301 
724135 
187521 
3682873 
15000 
150000 
3847873 
-22-
2.6 North-South cooperation projects in the campaign against drug abuse 
(Item B7-5080) 
In 1994, more than 30 operations carried out by NGOs were financed for more than ECU 
5 million, i.e. more than 54% of the total commitments concluded (ECU 9.3 million) for 
35 projects in all. 
Cooperation with NGOs was most intense in Latin America and Asia, two regions in which 
the projects financed in 1994 under this heading were devoted almost exclusively to 
prevention, reduction in demand and rehabilitation of addicts. The distribution of the 
projects financed was as follows: 
Latin America: 34% 
Asia: 27% 
Mediterranean: 37% 
ACP States: 2% 
2.7 Cooperation with NGOs on rehabilitation in 1994 
Developing countries emerging from war or a serious crisis with fragile economies, ruined 
infrastructure and a social fabric in tatters need an interim period of "rehabilitation". 
Rehabilitation aid bridges the gap between relief operations and the resumption of 
programmes to promote long-term development. 
Rehabilitation must gradually take over from humanitarian aid, reducing the need for it 
while paving the way for economic revival and political and social transition. 
2.7.1 Design, scope, eligibility criteria and financing of rehabilitation programmes 
The precise nature of rehabilitation aid programmes was spelled out by the Council in 
December 1993. Such programmes began to be implemented in 1994 and represent a 
stepping-stone between humanitarian/emergency aid and the resumption of long-term 
development programmes. Candidates for rehabilitation are countries emerging from a 
serious crisis or war or whose economies have been ruined by other factors such as natural 
disasters. 
At the end of 1993 the following countries were receiving rehabilitation aid: Somalia, 
Ethiopia, Eritrea, Mozambique, Angola, Liberia, Cambodia, Lebanon, El Salvador, 
Guatemala and Nicaragua. Other countries were added to the list in 1994: Madagascar, 
Rwanda and certain neighbouring countries (Uganda, Burundi, Tanzania and Zaire), Haiti 
and the Occupied Territories. 
23 
Rehabilitation programmes may embrace a wide variety of activities that come under four 
broad headings: 
- getting productive plant running again; 
repairing essential infrastructure; 
reintegrating groups such as refugees, demobilized soldiers and displaced people back 
into society; 
rebuilding institutions. 
Eligibility criteria have not been formally defined. However, certain crucial requirements 
were laid down by the Council on 2 December 1993: 
request from partners in the country concerned; 
a disaster situation that prevents essential needs being met; 
setting in train by the authorities of a transition process in which democratic values and 
fondamental freedoms are upheld; 
capacity of the administration and/or partners concerned to implement rehabilitation 
operations. 
Having weighed up these different factors the Commission decides oh the need for a 
rehabilitation programme and on its content. 
There are various sources of funds for these programmes. 
For ACP countries the main source is the EDF. Funds available under the National 
Indicative Programme, Stabex or Article 255 can be topped up with funds from certain 
budget headings that can be used for rehabilitation aid. 
Prelèrence is given to NGOs for the reliabilitation of social services and small-scale 
infrastructure, which is the case of most operations financed under Article 255 (aid for 
refugees, demobilized soldiers and displaced persons), heading B7-5071 (rehabilitation in 
southern Africa), heading B7-5011 (purchase of food, seeds and tools) and heading B7-5010 
(cofinancing of NGO operations). Funds for non-ACP countries come from the EC budget. 
-24-
2.7.2 Role of NGOs 
NGOs play a key role in running Community-funded rehabilitation programmes. Their 
intimate knowledge of the countries concerned, their flexibility, the various approaches they 
bring to bear and their contact with local people are crucial factors in individual situations 
and in dealing with post-emergency needs. 
Since the Council's decision of 25 May 1993 to finance the special initiative, the NGOs' 
role has also been boosted as regards the design of the rehabilitation programmes. 
2.7.3 Rehabilitation schemes in 1994 
In 1994 the Commission continued, notably on the basis the Council's conclusions of 2 
December 1993 and the Council's discussions at its meeting on 6 May 1994, the 
implementation of the rehabilitation schemes, in particular those taken as part of the Special 
Initiative for Africa. 
A detailed list of the schemes under way in the eight countries covered by the special 
initiative was presented to Member States at the Council meeting (development) of 25 
November 1994. It shows that the overall amount earmarked for rehabilitation schemes 
since 1991/92 is already sizeable (ECU 520 million). ECU 287 million has been made 
available since the launching of the special initiative in May 1993, with payments amounting 
to ECU 227 million. New decisions taken in 1994 as part of the rehabilitation programmes 
in Africa amounted to ECU 238 million. 
2.7.4 Budgetary Item B7-5076 
This new heading was included in the 1994 budget for the purpose of financing 
rehabilitation programmes in all developing countries. It covers the ALA and MED 
countries as well as the ACP States and is administered jointly by Directorates-General I 
and VIII. Commitment appropriations in 1994 total ECU 44.8 million and payment 
appropriations stand at ECU 25 million. 
As regards the ACP countries, which received ECU 17.8 million in all under this heading 
- including ECU 0.85 million from an exceptional contribution from Luxembourg - the role 
of NGOs has been particularly important. In 1994 in the ACP countries, 22 NGOs from 
nine EU countries received a total of ECU 12 327 369 for rehabilitation projects, notably 
in the basic sectors (health, education, agriculmral production). This accounts for 70% of 
the ECU 17.7 million allocated to the heading for the ACP countries, which represents a 
major contribution from NGOs to the design, programming and implementation of 
rehabilitation projects. 
25 
2.8 Special programme for South Africa (budgetary Item B7-5070) 
Overall objectives 
This heading is designed to finance programmes to improve the lot of the most 
disadvantaged sections of South African society. The priorities were defined by the 
European Parliament in its resolution of 15 December 1993 on development prospects in 
South Africa and in southern Africa (OJ No C 20 of 24 January 1994, p. 120) and take 
account of the Council Decision on the conclusion of the interim cooperation agreement 
between the European Community and the Republic of South Africa (OJ No L 341 of 
30 December 1994, p. 61). 
Sir Leon Brittan signed die interim agreement with South African Vice-President, Mr Yhabo 
Mbeki, on 10 October 1994. The Commission has since embarked on negotiations with the 
South African government on future ties between the European Union and South Africa. 
The special programme for South Africa, first proposed by the European Parliament in 1985 
and confirmed several times by the European Council, was renamed the "European 
Programme for Reconstruction and Development" in order to underscore die EU's support 
for the South African government's drive to implement a reconstruction and development 
programme. The changes compared with past years reflect the strides made by South Africa 
towards democracy since the elections held in April 1994. 
In 1994, the electoral process in South Africa received financial backing from the European 
Union for activities such as voter education, financing the electoral campaigns of registered 
parties through the Independent Electoral Commission 's election fund and the financing of 
observer missions by two NGOs. 
The ECU 110 million budgeted was fully committed at the end of the year. 
The special programme has financed the following schemes: 
projects to support the reconstruction and development programme; 
development programmes for local authorities implemented by the Kagiso Trust, the 
trade unions, the Southern African Cadiolic Bishops' Conference (SACBC) and the 
South African Council of Churches (SACC); 
programmes to improve training and education in rural areas and in less advanced urban 
regions; 
- support programmes in the vocational training sector, in particular with regard to the 
teacher training and student grants; 
- programmes and projects in the health sector in rural areas and in the less advanced 
urban regions; 
programmes to support micro-enterprises and boost job creation. 
26-
Specific objectives 
Programmes and projects under this budgetary item are financed by the Community for an 
amount in excess of 80%. They generally run for one to three years. 
Administrative expenditure necessary for implementing the programmes and projects are 
also covered, as are appraisal and evaluation costs. 
In 1994, aid was targeted on: 
Sector No. of projects ECU million 
Development of communities 25 18.7 
Education 32 55.1 
Good governance and democratization 4 18.2 
Elections 4 5.7 
Health 12 23.8 
Institutional support 2 1.6 
SMEs 7 2.6 
Trade unions 1 0.05 
Other 7 10.6 
Total 90_ 136.5 
The partners involved were: 
Partner No. of projects ECU million 
Kagiso Trust 47 60 
SACC 9 3.3 
SACBC 6 3.4 
South African government 5 35.9 
Independent Electoral Commission 2 5.4 
Other 21 28.5 
Total 90 136.5 
Education and vocational training remain the principal development sector in South Africa, 
closely followed by health. The government's White Paper on reconstruction and 
development accords these two sectors high priority. 
-27-
Outlook for 1995 
The 1995 programme will be drawn up in close cooperation with the government. The 
project-oriented approach is to be abandoned in favour of a more programme-oriented 
approach. This will enable die number of schemes per annum to be reduced and make for 
closer scrutiny of their progress. 
Wherever possible and appropriate the Commission will continue to lay stress on the 
involvement of the target group or institutioa. 
2.9 Assistance for rehabilitation programmes in soudiern Africa (item B7-5071) 
In June 1988 the Commission introduced a special budgetary item, 9531, to support the 
front-line states and Soudiern Africa Development Community (SADC) member states 
suffering the effects of war and destabilization activities in die region. 
In 1993, widi the changing scene in southern Africa, tliis heading, now B7-5071, was geared 
towards assistance for rehabilitation programmes in the region. Given the changes that have 
taken place in the region, die focus of die budgetary item was switched to rehabilitation 
schemes so as to contribute to die democratization process under way in southern Africa. 
The budgetary audiority allocated, for financial year 1994, a commitment appropriation of 
ECU 15 million (payment appropriation of ECU 12 million) to heading B7 -5071 in order 
to maintain the Commission's scope for action in die rehabilitation programmes being carried 
out or envisaged in southern Africa, notably in Angola and in Mozambique. Thirty-five 
projects received funding to the tune of ECU 15 million. Virtually all the approved projects 
were financed in their entirely (100%) by the Commission. 
Priority went to rehabilitation and the rebuilding of basic infrastructure (73.7% of the 
appropriations) to allow refugees, displaced persons, and demobilized soldiers to go back to 
their regions of origin and to enable the population as a whole to resume normal civilian life. 
Five social rehabilitation projects, totalling ECU 2 260 176, were aimed at boosting help for 
women and street children. 
-28-
The spotlight is on four key sectors: 
rehabilitation of basic infrastructure; 
integrated humanitarian schemes; 
training and education; 
information and documentation programmes. 
BREAKDOWN OF FUNDS BY SECTOR (1994) 
1. Rehabilitation 
- Health infrastructure 
- Social rehabilitation 
- Education infrastructure 
- Agriculture/fisheries 
3. Information/documentation 
4. Humanitarian 
5. Small-scale rehabilitation 
Total No. of projects 
21 
9 
5 
4 
3 
3 
9 
1 
1 
35 ECU 
11 060 725 
5 092 783 
2 260 176 
2 160 323 
1 545 443 
582 000 
1 711 275 
646 000 
1000 000 
15 000 000 % 
73.7 
33.9 
15.1 
14.4 
10.3 
3.9 
11.4 
4.3 
6.7 
100 
As regards the breakdown of appropriations by recipient country, the Commission's financial 
contribution has been earmarked, as in previous years, for priority rehabilitation projects in 
Angola and Mozambique, the two countries on which the aid is being focused, with more 
than 94% of the total funds available in 1994 for 27 projects (77%). The rehabilitation 
schemes account for the lion's share of the projects financed in these two countries where 
the risk of insecurity or instability is ever-present. 
Breakdown by recipient country (1994): 
Recipient 
Angola 
Mozambique 
Zimbabwe 
Tanzania 
Europe 
Réfugiés 
Total 1994 No. of projects 
13 
14 
1 
1 
1 
5 
35 ECU 
7.283.532 
6.934.736 
100.000 
30.000 
452.000 
199.732 
15.000.000 % 
48,6 
46,2 
0,7 
0,2 
3,0 
1,3 
100 
-29-
The main agencies to receive financial support for programmes from budgetary item B7-5071 
in 1994 were European NGOs with 88.1% of the funds allocated, i.e. ECU 13 218 268 for 
a total of 26 projects. 
Breakdown by agency: 
Agency 
European NGos 
Local NGOs 
Instituts/universities 
Total No. of projects 
26 
!(*) 
8 
35 ECU 
13 218 268 
1 000 000 
781 732 
15 000 000 % 
88.1 
6.7 
5.2 
100 
(*) A programme (QDF-Quick Disbursement Fund) managed directly by the EC Delegation 
in Mozambique to finance the small-scale rehabilitation schemes run by local NGOs. 
Breakdown of agencies by country of origin: 
country 
United Kingdom 
Spain 
Portugal 
Netherlands 
Italy 
Ireland 
Germany 
France 
Belgium 
Africa 
Mozambique Del. 
Total No. of projects 
5 
2 
2 
1 
15 
1 
1 
1 
4 
2 
1 
35 ECU 
199.732 
1.471.100 
834.000 
452.000 
7.844.909 
263.766 
743.000 
432.773 
1.628.720 
130.000 
1.000.000 
15.000.000 % 
13, 
9,8 
5,6 
3,0 
52,3 
1,8 
5,0 
2,9 
10,8 
0,9 
6,6 
100 
Southern African NGOs received only around 7.5% of the 1994 budget funds while Italian 
NGOs had 15 projects approved by the Commission for a total of ECU 7.8 million, i.e. 
52.3% of the funds available. 
-30-
2.10 Community operations linked to the Middle East peace process 
(Item B7-4083) 
In the wake of the Council's conclusions at its meeting of 27 October 1986, a new Article 
(966) was created in the 1987 budget to finance development projects in the occupied 
territories of the West Bank and Gaza. Up to then, the Community had implemented an ad 
hoc aid programme for the territories comprising rural development, grants and other 
projects cofinanced with European NGOs. Total financing from 1981 to 1986 amounted to 
some ECU 9 million (including NGO schemes cofinanced under Article 941 for a total of 
ECU 4 million). 
From Item B7-4083 (ex 966, B7-406) the Commission was able to finance a broader array 
of development operations: 139 between 1987 and 1994 with a total EC contribution of some 
139 million ECU (1987: ECU 2.97 million, 1988: ECU 3 million, 1989: ECU 5 million, 
1990: ECU 6 million, 1991: ECU 10 million, 1992: ECU 17 million, 1993: ECU 35 million, 
1994: ECU 60 million). In 1994, 50% of the funds available were allocated to support the 
current expenditure of the Palestinian administration (in particular for the Palestinian police 
force), 16% for education schemes, 16% for a subsidized house building programme, 8% 
for other projects and 8% for techmcal assistance. 
For 1995, ECU 52 million has been allocated from heading B7-4083. The priority fields are, 
in the short term, to develop the projects currently under way in the fields of housing, credit 
and assistance to firms, construction and refurbishment of schools, all of which generate 
jobs. In the medium term, the purpose of this heading is to improve the economic and social 
infrastructure of the West Bank and Gaza: telecommunications, road networks, electricity, 
industrial estates and the like. This entails providing the technical assistance necessary for 
developing the technical and financial mechamsms needed for the smooth operation of 
Palestinian government institutions. All these operations were identified and prepared after 
consultations with the Palestinian institutions to ensure that they respond closely to needs and 
initiatives on the ground. 
2.11 Programme for NGOs operating in Vietnam (B7-5014) 
This Item was introduced in 1991 with the aim of helping the Vietnamese population via 
NGO operations. In 1994 it had an appropriation of ECU 2 million, which financed seven 
schemes. The sectors concerned are representative of the approach adopted under this 
heading: development of rural credit, urban and rural social projects. Work will continue 
along those lines in 1995. 
2.12 Programmes for NGOs operating in Cambodia (B7-5015) 
This heading was created in 1991 to help the Cambodian population through the work of 
NGOs. The 1994 appropriation of ECU 1 million financed two health projects, both of which 
are running according to plan. 
31 -
2.13 Decentralized cooperation in developing countries 
(item B7-5077) 
General thrust 
The prime objective is the promotion and gradual extension of the Community 
decentralization cooperation approach initiated under Lomé IV and built into cooperation with 
Asian and Latin American developing countries (PVD-ALA) and the Mediterranean. 
Typical objectives include: 
information, awareness-raising and mobilization of the key agents concerned (NGO 
networks, local authorities, professional associations and cooperatives, etc.). This chiefly 
entails: 
-^seminars, conferences and specialized one-day events: Harare, UTO/IULA congress, 
ESC meetings, NGO Liaison Committee working parties, 
-» publication of the practical guide to decentralized cooperation for NGOs 
an awareness-raising and methodology advisory service for area desks and delegations. 
This comes into play at the programme appraisal stage (EDF, PVD-ALA or B7-5077) 
with the aim of systematic cooperation. It can also be the subject of ad hoc schemes: 
subject or methodology information memos, survey and publication of an inventory of 
the state of decentralized cooperation under Lomé IV, participation in evaluation work 
(women, institutional development, culture, urban development, etc.), preparation of a 
methodological guide to decentralized cooperation under way, 
the operational task of preparing and appraising decentralized programmes financed from 
official funds (chiefly EDF) complementing Item B7-5077: in the case of the EDF, ten 
countries are concerned. Countries of Central America and Mediterranean (MED 
programmes) are mainly affected by non-EDF funds. 
monitoring and follow-up of the policies and methods used by multilateral and bilateral 
cooperation agencies involved in decentralized cooperation and the various EDF 
instruments (such as micro-project programmes ). 
The priorities for using Item B7-5077 arise out of this strategy. As the funds are limited, 
priority is accorded to pilot or trial schemes achieving maximum leverage in terms of the 
mobilization and impact of decentralized cooperation as part of official cooperation. 
-32 
Assessment of Item B7-5077 in 1994 
23 projects: overall amount of ECU 4 863 948 for a total cost of ECU 9 302 766 
(cofinancing rate: 52%). 
Breakdown by type of scheme: 
upstream projects (studies and promotion): 10% 
projects chiefly aimed at boosting the technical and institutional capacity of the agents 
of decentralized cooperation in the developing countries: 31.5% 
pilot programmes and projects: 59%. 
These programmes generally consist of an institutional support component and an operational 
component. According them pilot scheme status hinges on the innovatory nature of the type 
of partnership involved (e.g. local authorities and NGOs), the methods employed 
(participatory support from European partners, research scheme, etc.) and the topic 
(marginalized young people, municipal development, etc.). 
Special mention should be made of three regional programmes (Central America and West 
Africa) which have the following features in common: 
involvement of North-South and South-South NGO and local authority exchange and 
support networks, 
action to strengthen and lend structure to the decentralized bodies (national urban 
associations, NGO networks, etc.) 
earmarking of funds to back local initiatives enabling such partnerships to be tested in 
real-life situations. 
Targets: 44% of the schemes concern mainly local authorities and cooperation in the 
municipal field; the rest concern NGOs and a variety of sectors (rural development, the 
economy, etc.). 
For the most part these projects are based on partnerships with European decentralized 
cooperation agents. 
Breakdown by region: 
- ACP States: 53% 
Latin America: 35% 
Asia and Mediterranean: 3% 
- Other: 9% 
The way ahead 
Over the period 1992-94, following a major awareness-raising and mobilization campaign, 
increased efforts were made to promote projects and pilot programmes liable to produce 
tangible results and exemplify the contribution of decentralized cooperation (for example by 
setting up channels of support for local initiatives). 
33 
These efforts should be stepped up in the field of local development in general, and in the 
field of municipal and urban development in particular. Those are the sectors currently 
gaining prominence in official programmes. Priority should be given to network schemes (in 
Europe and in the South), involving local authorities and NGOs, making for a knock-on 
effect in terms of sources of financing, and operating on a national or regional scale (e.g. 
Central America). Bilateral projects (city to city) of more traditional technical assistance can 
be examined only on a case-by-case basis depending on how innovative they are and on their 
potential impact at the level of official programmes (the budgetary Item cannot stretch to 
systematic cofinancing). 
In particular, support should go to framework programmes negotiated with adequately 
qualified and representative associations (national city associations, etc.) on the basis of 
multiannual objectives (e.g. Central America with CUD, West and Central Africa and the 
Municipal Development Programme). 
Coordination with Member States which have policies to support decentralized cooperation 
is envisaged with a view to underlining the budgetary Item's role to provide incentives. 
-34-
TABLE I 
BREAKDOWN BY RECIPIENT COUNTRY OF 
DEVELOPMENT PROJECTS COFINANCED BY THE EC 
FROM 1976 TO 1994 INCLUSIVE 
Number of projects EC contribution 
in ECU 
AFGHANISTAN 
SUB-SAHARAN AFRICA 
ALGERIA 
ANGOLA 
ANTIGUA AND BARBUDA 
NETHERLANDS ANTILLES 
ARGENTINA 
BANGLADESH 
BARBADOS 
BELIZE 
BENIN 
BHUTAN 
BOLIVIA 
BOTSWANA 
BRAZIL 
BURKINA FASO 
BURUNDI 
CAMEROON 
CAPE VERDE 
CARIBBEAN 
CENTRAL AFRICAN REPUBLIC 
CHILE 
CHINA 
CYPRUS 
COLOMBIA 
COMOROS 
CONGO 
COSTA RICA 
CÔTE D'IVOIRE 
CUBA 
DJIBOUTI 
DOMINICA 
EGYPT 
EL SALVADOR 
ECUADOR 
ERITREA 
ETHIOPIA 
•FIJI 
GABON 
GAMBIA 
GHANA 31 
10 
63 
82 
8 
1 
290 
292 
17 
38 
104 
16 
602 
34 
1216 
757 
73 
266 
102 
15 
101 
627 
41 
2 
265 
14 
41 
49 
95 
56 
10 
41 
67 
302 
331 
24 
397 
16 
11 
85 
130 1 611 530 
1 787 333 
2 320 003 
3 112 422 
285 189 
59 226 
14 856 797 
17 464 579 
681 358 
1 414 795 
3 601 230 
291 890 
31 143 451 
2 916 275 
62 866 506 
25 217 918 
5 476 133 
11 259 168 
5 201 992 
1 128 095 
6 376 430 
31 053 118 
3 131 599 
57 584 
11 939 151 
644 494 
1 574 628 
1 484 426 
4 561 214 
3 368 442 
628 658 
1 113 386 
4 312 605 
11 702 935 
15 501 898 
3 248 478 
30 210 145 
890 570 
512 930 
2 069 585 
5 458 468 
35 
Number of projects EC contribution 
in ECU 
GRENADA 
GUATEMALA 
GUINEA 
GUINEA BISSAU 
EQUATORIAL GUINEA 
GUYANA 
HAITI 
HONDURAS 
HONG KONG 
COOK ISLANDS 
INDIA 
INDONESIA 
IRAQ 
ISRAEL 
JAMAICA 
JORDAN 
CAMBODIA 
KENYA 
KIRIBATI 
LAOS 
LESOTHO 
LEBANON 
LIBERIA 
MADAGASCAR 
MALAYSIA 
MALAWI 
MALDIVES 
MALI 
MOROCCO 
MAURITIUS 
MAURITANIA 
MEXICO 
MONGOLIA 
MONTSERRAT 
MOZAMBIQUE 
MYANMAR (BURMA) 
NAMIBIA 
NEPAL 
NICARAGUA 
NIGER 
NIGERIA 
UGANDA 
PAKISTAN 
PANAMA 
PAPUA NEW GUINEA 
PARAGUAY 
PERU 
PHILIPPINES 22 
214 
44 
130 
15 
17 
269 
97 
9 
1 
1728 
136 
13 
11 
56 
23 
174 
456 
2 
87 
72 
214 
21 
157 
15 
110 
2 
389 
29 
33 
64 
177 
1 
2 
327 
7 
117 
71 
749 
85 
77 
235 
139 
26 
40 
97 
718 
462 810 567 
9 915 062 
4 767 314 
8 406 891 
1 066 782 
856 447 
14 821 938 
2 691 527 
94 783 
8 124 
59 437 606 
5 538 849 
565 565 
1 488 782 
2 605 470 
2 835 071 
14 220 275 
22 277 098 
13 279 
3 785 561 
2 231 666 
14 985 737 
843 029 
8 857 278 
361 015 
5 503 522 
760 277 
18 258 818 
1 780 918 
1 042 389 
4 105 507 
11 401 630 
4 847 
21 438 
14 619 566 
249 054 
7 780 769 
3 205 808 
39 410 989 
4 899 754 
2 648 606 
14 168 367 
4 124 591 
1 305 246 
864 837 
4 390 818 
37 594 069 
24 602 030 
36-
Number of projects EC contribution 
in ECU 
REGION: SOUTHERN AFRICA 
REGION: EAST AFRICA 
REGION: WEST AFRICA 
REGION: SAHEL 
REGION: CENTRAL AMERICA 
REGION: SOUTH AMERICA 
REGION: ASIA 
REGION: HORN OF AFRICA 
REGION: AFRICA 
REGION: MEDITERRANEAN 
REGION: PACIFIC 
DOMINICAN REPUBLIC 
RWANDA 
SAINT VINCENT & THE GRENADINES 
SAINT LUCIA 
SOLOMON ISLANDS 
WESTERN SAMOA 
SÂO TOME & PRINCIPE 
SENEGAL 
SEYCHELLES 
SIERRA LEONE 
SOMALIA 
SUDAN 
SOUTH KOREA 
SRI LANKA 
SURINAME 
SWAZILAND 
SYRIA 
TAJIKISTAN 
TANZANIA 
CHAD 
THAILAND 
TOGO 
TONGA 
ALL COUNTRIES 
TRINIDAD & TOBAGO 
TUNISIA 
TUVALU 
URUGUAY 
VANUATU 
VENEZUELA 
VIETNAM 
WEST BANK & GAZA 
YEMEN (NORTH AND SOUTH) 
ZAIRE 
ZAMBIA 
ZIMBABWE 75 
6 
15 
9 
4 
9 
9 
Ï 
2 
1 
10 
134 
384 
6 
7 
17 
4 
10 
404 
4 
118 
58 
137 
20 
206 
6 
24 
4 
2 
481 
171 
154 
94 
3 
33 
12 
43 
1 
200 
6 
58 
186 
224 
32 
703 
138 
304 1 379 948 
908 216 
1 314 376 
1 241 934 
1 014 175 
1 837 147 
512 934 
15 000 
21 031 
396 284 
1 401 411 
5 911 998 
13 750 048 
56 272 
225 548 
926 498 
285 289 
1 816 434 
15 561 683 
113 827 
3 602 368 
5 484 220 
9 545 261 
984 521 
6 618 552 
146 095 
1 545 326 
241 195 
10 701 
19 896 237 
8 439 034 
8 700 244 
3 405 952 
128 990 
2 552 777 
867 094 
1 777 869 
6 127 
9 741 695 
390 075 
4 476 484 
10 041 514 
16 435 699 
2 398 519 
26 687 213 
7 017 569 
15 580 650 
Total 19 191 934 079 216 
TABLE II 
BREAKDOWN BY MEMBER STATE OF COMMUNITY FUNDS ALLOCATED FROM 1976 TO 1994 INCLUSIVE 
NATIONALITY 
OF 
CONTRACTOR 
Belgium 
Consortium 
Denmark 
France 
Germany 
Greece 
Ireland 
Italy 
Luxembourg 
Netherlands 
Portugal 
Spain 
U.K. 
TOTAL Development projects in 
developing countries 
No. of 
schemes 
934 
76 
107 
1013 
913 
23 
274 
834 
198 
381 
30 
251 
1136 
6170 EC contribution 
in ECU 
129 129 375 
49 790 292 
15 958 211 
140 904 947 
155 554 086 
3 866 877 
22 195 066 
140 303 117 
11 723 525 
52 232 876 
4 579 329, 
52 220 551 
155 570 799 
934 029 051 in % 
13.8 
5.3 
1.7 
15 
16.7 
0.4 
2.4 
15 
1.3 
5.6 
0.5 
5.6 
16.7 
100% Information campaigns for 
European public opinion 
No. of 
schemes 
169 
14 
43 
207 
172 
13 
48 
160 
8 
155 
25 
77 
256 
1347 EC contribution 
in ECU 
10 370 458 
4 458 606 
3 254 788 
11 170 192 
13 517 037 
1 346 657 
2 600 353 
12 643 483 
225 211 
11 321 603 
2 020 546 
5 078 641 
18 255 920 
96 263 495 in % 
10.8 
4.6 
3.4 
11.6 
14.1 
1.4 
2.7 
13.2 
0.2 
11.8 
2 
5.2 
19 
100% TOTAL 
No. of 
schemes 
1103 
90 
150 
1220 
1085 
36 
322 
994 
206 
536 
55 
328 
1392 
7517 EC contribution 
in ECU 
139 499 833 
54 248 898 
19 212 999 
152 075 139 
169 071 123 
5 213 534 
24 795 419 
152 946 600 
11 948 736 
63 554 479 
6 599 875 
57 299 192 
173 826 719 
1030 292 546 in % 
13.5 
5.3 
1.9 
14.8 
16.4 
0.5 
2.4 
14.8 
1.2 
6.2 
0.6 
5.5 
16.9 
100% 
TABLE III 
BREAKDOWN BY MEMBER STATE OF COMMUNITY FUNDS ALLOCATED IN 1994 
Member 
States 
Denmark 
France 
Greece 
Ireland 
Italy 
Luxembourg 
Netherlands 
Portugal 
Spain 
U.K. 
Belgium 
Germany 
Consortium 
TOTAL Development projects in the 
developing countries 
No. of 
schemes 
5 
99 
3 
8 
102 
26 
34 
3 
38 
100 
69 
93 
19 
599 EC contribution 
in ECU 
1 317 799 
19 469 301 
812 404 
1 538 313 
20 558 852 
1 685 812 
6 743 907 
756 756 
10 867 652 
20 898 456 
13 701 651 
20 350 018 
10 956 437 
129 657 358 in % 
1.0 
15.0 
0.6 
1.2 
15.9 
1.3 
5.2 
0.6 
8.4 
16.1 
10.6 
15.7 
8.5 
100% Information campaigns for 
European public opinion 
No. of 
schemes 
6 
22 
4 
6 
29 
2 
16 
4 
14 
23 
20 
21 
3 
170 EC contribution 
in ECU 
792 582 
1 671 114 
166 649 
429 826 
2 089 027 
33 045 
1 262 765 
272 375 
1 305 719 
1 921 772 
1 519 979 
2 264 865 
804 419 
14 534 137 in % 
5.5 
11.5 
1.1 
3.0 
14.4 
0.2 
8.7 
1.9 
9.0 
13.2 
10.5 
15.6 
5.5 
100% TOTAL 
No. Of 
schemes 
11 
121 
7 
14 
131 
28 
50 
7 
52 
123 
89 
114 
22 
769 EC contribution 
in ECU 
2 110 381 
21 140 415 
979 053 
1 968 139 
22 647 879 
1 718 857 
8 006 672 
1 029 131 
12 173 371 
22 820 228 
15 221 630 
22 614 883 
11 760 856 
144 191 495 
(*) in % 
1.5 
14.7 
0. 9 
1.4 
15.7 
1.2 
5.5 
0.7 
8.4 
15.50 
10.5 
15.7 
8.2 
100% 
(*) Plus ECU 756 000 for miscellaneous 
ISSN 0254-1475 
COM(96) 32 final 
DOCUMENTS 
EN 11 
Catalogue number : CB-CO96-035-EN-C 
ISBN 92-77-99903-9 
Office for Official Publications of the European Communities 
L-2985 Luxembourg