*** COMMISSION OF THE EUROPEAN COMMUNITIES 
-to ir 
Brussels, 17.03.1998 
COM0998) 127 final 
COMMISSION REPORT 
on co-operation with European 
non-governmental development 
organisations (NGDOs) in those fields 
of importance to developing countries 
(1996 financial year) 

SUMMARY 
1. At its meeting of 28 November 1977 the Council approved the procedure to be 
followed in using appropriations under item B7-6000 of the Community budget for 
cofinancing operations with non-governmental development organisations (NGDOs).l 
Under this procedure the Commission is required to present an annual report to the 
Council on the use of the appropriations allocated during the preceding financial year. 
The Commission is presenting this report for 1996. 
Although the Council's requirement only concerns appropriations under item B 7-6000, 
the report also covers other major spheres of co-operation with NGDOs such as food 
aid, humanitarian aid, special programmes and co-ordination between NGDOs. The 
various contributions made by the relevant Commission departments provide an 
overview. 
1 See Council document R/207/78 (GCD) of 26 January 1978. 
CONTENTS 
Page 
il INTRODUCTION 
EUROPEAN COMMUNITY CO-OPERATION WITH DEVELOPMENT NGOs 2 
IN 1996 
1. EC COFINANCENT OF PROJECTS IN DEVELOPING 
COUNTRIES AND DEVELOPMENT AWARENESS RAISING 
CAMPAIGNS IN EUROPE CARRIED OUT BY EUROPEAN 
NON-GOVERNMENTAL ORGANIZATIONS 
(item B7-6000 of the Budget) 3 
1.1 General Overview: 3 
1.2 1996 EC Co-financing Programme of projects in Developing 
Countries carried out by European Development NGOs. 4 
1.2.1 Main Features of 1996 programme 4 
1.2.2 Block grants 5 
1.2.3 Recipient countries 6 
1.3 Co-financing of Information and Awareness Raising Campaigns 
on Development Issues in the EC 7 
1.3.1 Main Features of 1996 programme 7 
1.4 Cofinancing programme from 1976 to 1996 8 
1.5 Relations with the Liaison Committee of Development 
NGOs to the EC. 10 
1.6 Council Regulation on Co-financing operations with 
European NGOs. 11 
1.7 Outlook. 11 
H. OTHER AREAS OF CO-OPERATION 12 
2.1 Food aid delivered by development NGOs (Title B7-2 of the budget) 12 
2.2 Storage and early warning systems 13 
2.3 European Community Humanitarian Office (ECHO) 
(Chapter B7-21 of the budget, Lomé Convention 14 
2.3.1 General overview of humanitarian aid in 1996 14 
2.3.2 Humanitarian operations 14 
A 3. 
2.3.3 NGO cooperation 15 
2.4 Co-operation with NGOs in respect of aid for refugees, returnees 
and displaced persons 15 
2.4.1 Cooperation with NGOs in respect of aid to promote self-
sufficiency of refugees, displaced persons and returnees in 
Asia and Latin America 15 
2.4.2 Aid for refugees, returnees and displaced persons 
(Article 255 of Lomé Convention IV) 16 
2.5 Rehabilitation programmes in developing countries 17 
2.5.1 Rehabilitation operations 
(Budget headings B7-3210 and B7-6410 -1996 Budget) 1" 
2.6 European Programme for Reconstruction and Development 
in South Africa: (Art. B7-3200 of budget) 1S 
2.6.1 General objectives of the EPRD IS 
2.6.2 Specific objectives 20 
2.6.3 Conclusions 21 
2.7 EC health measures, particularly in respect of AIDS, in developing 
countries: role of NGOs (ACP countries) 21 
2.8 Environment and forest sectors (Budget lines B7-6200 Environment 
and B7-6201 Forest) (ACP countries) 23 
2.8.1 Environment Budget Line B7-6200 23 
2.8.2 Tropical Forest Budget Line B7-6201 23 
2.9 B7-6004 24 
2.10 B7-6005 25 
2.11 Decentralized co-operation (B7-6430) 25 
2.11.1 Aims 25 
2.11.2 Budget heading item B7-6430 26 
^ 
TABLES 
relating to item B7-6000 
Page 
I. Breakdown by recipient country of development projects cofinanced 
from 1976 to 1996 inclusive 27 
II. Breakdown by Member State of Community funds allocated for 
cofinancing from 1976 to 1996 inclusive 30 
III. Breakdown by Member State of Community funds for cofinancing 
allocated in 1*996 31 
A C 
INTRODUCTION 
Over the last 20 years co-operation between the European Development NGOs and the EC 
has kept pace with the solidarity shown by the citizens of Europe through their support for 
the work of the NGOs with the poor and marginalized in the developing countries. The EC 
mainly contributes through the cofinancing of NGO development programmes in 
developing countries and awareness raising campaigns on development issues in Europe, 
through the provision of food aid and food security programmes, the provision of 
humanitarian aid and assistance in many other more specialised areas. 
Despite the reduction of financial resources for development co-operation in recent years 
and the current budgetary restrictions to which the Commission is subject, there has been a 
steady commitment of EC financial resources made available to NGOs. 
In 1996 more than 703.6 MECU was allocated to NGOs for development and humanitarian 
activities in developing countries from the EC budget (compared to 821.5 in 1995 and 
803.3 in 1994). 
In addition NGOs have played a significant role in the implementation of programmes 
within the EU's Asian and Latin American programmes and in the implementation of EDF 
(European Development Fund) programmes. 
The special budget line for cofinancing of development schemes with European NGOs 
amounted to 175 MECU1- in 1996 compared to 174 MECU in 1995 and 145 MECU in 
1994. 
This annual report is focused in Section 1 on NGO operations cofinanced by the 
Commission under heading B7-6000. Owing to the large number of such operations, the 
lists of development projects and development awareness raising campaigns have not been 
attached to the report. These are obtainable from the Directorate-General for Development 
(DGVm/B/2). 
Section 11 of the report "other areas of Cooperation" provides information on the other 
main sectors of EC development aid in which NGOs play an important role, financed by the 
EC budget and under Articles 254 and 255 of the Lomé Convention IV. 
1 iMECU transferred from Budget line B7-6006 (assistance for NGOs working in Cuba) 
dL 
EUROPEAN COMMUNITY CO-OPERATION WITH DEVELOPMENT NGOs TN 
The range of EC budget headings on which NGOs drew in 1996 reflects their role in almost 
all aspects of EC development co-operation programmes. 
The following table covers the main areas of co-operation with NGOs. 
1 1996 H 1995 
1. Cofinancing of development projects in MECU . MECU 
developing countries 155 139.9 
2. Cofinancing of awareness raising of 
development issues in Europe 18.3 16.0. 
3. Cofinancing of Liaison Committee of 
European NGDOs and evaluations, etc. 1.7 1.4 
4. Food aid 111.2 214.0 
5. Humanitarian aid (ECHO) 30~H ' 328 
__—._—___________——________>———————_. ————————^^————— -_-—-——-————————______-_—— 
6. Rehabilitation programmes in developing 
countries 42.8 44.0 
7. Rehabilitation programmes in Southern 
Africa 14.6 13.9 
8. Assistance for refugees and displaced 
persons 25.4 15.7 
9. Special programme for South Africa 13.6 48.6 
10. Other budget lines accessible to NGOs 
(Vietnam, Cambodia, Health, environment, 203 n/a 
etc)2 
The Community contribution from the EC budget to NGO projects in 1996 amounts to 
approximately 703,6 MECU. 
1 Approximate figure. Humanitarian assistance channelled through NGOs represented 46% of the total 
Budget in 1996. 
2 Exclusive of NGO projects funded under the EDF, ALA, MEDA funds. 
3 Approximate figures. 
-2-
I. EC COFINANCING OF PROJECTS IN DEVELOPING COUNTRIES AND 
DEVELOPMENT AWARENESS RAISING CAMPAIGNS IN EUROPE 
CARRIED OUT BY EUROPEAN NON-GOVERNMENTAL ORGANISATIONS 
(item B7-6000 of the Budget) 
1.1. General Overview 
The main objectives of the programme in 1996 were: 
- In developing countries to support local initiatives developed in partnership with 
European NGOs to fight poverty at the grassroots; 
- Within the EU, to support activities to increase awareness in Europe of the problems 
faced by developing countries and the interrelationship of the North and South and to 
support the strengthening of co-operation between European NGOs themselves, between 
European NGOs and the Community institutions via the NGDO-EC Liaison Committee. 
As in previous years, the Commission channelled approximately 90% of the appropriations 
under item B7-6000 into the cofinancing of operations conducted in developing countries, 
the balance going towards the cofinancing of activities to heighten public awareness in the 
European Community and support for the NGDO-EC Liaison Committee. 
The commitment appropriations entered in the 1996 budget under item B7-6000 amounted 
to ECU 174 million (plus 1 MECU added from budget item B7-6006 for NGOs in Cuba). 
In 1996 this amount was fully committed and a total of 824 projects cofinanced. 
The following table gives an overview of the number of projects dealt with and cofinanced 
by the Commission 's NGO cofinancing unit in 1996: 
Projects in 
Developing 
countries 
Awareness raising 
projects on 
development 
issues in Europe 
Total No. of projects 
dealt with in 
1996 
1,254 
276 
1,530 No. of projects 
cofinanced in 
1996 
645 
179 
824 No. of projects 
rejected in 
1996 
179 
33 
212 No. of projects 
carried over to 
1997 
430 
64 
494 
The Commission's NGO cofinancing unit handles this large number of requests in 
accordance with the criteria and rules laid down in the General Conditions for 
Cofinancing.1 In examining each dossier, particular consideration is given to the 
professionalism and financial soundness of the NGO, the quality of the project, the 
Southern partner's operational capacity and the quality of the ties between it and the 
European NGDO, the expected impact of the project, its viability and the potential 
multiplier effect for the target groups concerned. 
12 1996 EC Co-financing programme of projects in Developing Countries carried 
out by European Development NGOs. 
1.2.1 Main Features, of the 1996 Programme, 
In 1996, 645 projects were cofinanced totalling 154.5 MECU accounting for 90% of 
commitments under B7-6000, including 164 Block Grants. 
The Commission continued to prioritise NGO projects which showed a strong commitment 
to grass roots development and to groups which do not have access to official development 
co-operation. Projects were supported in both rural and urban areas with a notable increase 
in urban projects. The key sectors of intervention were rural development, education and 
training, health, economic activities including microcredit support for small businesses and 
social support projects. 
Special encouragement continued to be given to NGO projects: 
- In countries undergoing rehabilitation or transition to democracy. 
- To strengthen the capacity of Southern partners of European NGOs. 
- In the Mediterranean and Arab world as part of the EU's support for emerging civil 
society. 
Considerable importance continues to be attached to projects involving women and the 
Commission has cofinanced a number of projects designed to enhance their access to 
education and training and income-generating activities in both urban and rural areas. 
Street children are another important group of beneficiaries. Increasing awareness of the 
scale of the vulnerability of children in poverty to the sex tourism industry has given an 
added impetus to prioritising this vulnerable group and several innovative projects were 
approved in 1996 which combine access to education and income-generating opportunities 
for the families involved. 
1 Commission of the European Communities, "General Conditions for the cofinancing of projects undertaken in 
developing countries by Non-governmental Organizations (doc. VrH/764/87) and "General Conditions for the 
cofinancing of projects to raise public awareness of development projects carried out by Non-governmental 
Organizations (doc. VDI/271/87). 
-4-
Institutional support for Southern partners: European NGOs are working with a wide 
variety of Southern partners, both intermediary support NGOs and grass roots community 
organisations. In recent years there has been an increase in Southern NGOs own capacity to 
develop and implement projects and the role of the Northern NGO has tended to move from 
direct implementation itself to a more supportive and advisory role. The Commission has 
been actively encouraging its European NGO partners to take their Southern partner's 
institutional and capacity building needs into account. A special facility for this has existed 
within Budget line B-6000 since 1988. This has been under-utilised by European NGOs as 
shown in the 1994 evaluation carried out by the Commission. One of the main findings of a 
seminar held with Northern and Southern NGOs on this issue in May 1996 was that 
institutional support demands long term moral, political and financial commitment which 
requires both the NGOs and the Commission itself to move from its present project based 
approach to a longer term programme approach. This is a rapidly developing area of NGO 
reflection and change in practise which the Commission is actively supporting and will 
accomodate on revising its General Conditions for Cofinancing. 
A special Commission NGO seminar in late 1995 brought together several NGOs from the 
countries of the Magreb and the EC to launch an initiative to increase their links and 
promote greater partnership. This is part of the wider EC programme to develop closer links 
within the Mediterranean world, and in the case of the NGOs to support the emerging civil 
society in these regions. The initiative has been taken forward in 1996 with the launching 
of a training programme by European NGOs on rural and urban development issues for 
Arab NGOs and on increasing skills and information on accessing donor funds. Many 
projects continued to be approved for NGO activities among the Palestinians and in the 
Lebanon. 
Evaluations: Following the evaluations carried out by the Commission in 1994, in 
particular in the field of credit and capacity building, special actions have been taken by the 
Commission to enable the lessons learned to be applied to new projects and for increased 
policy dialogue. Seminars have been held to disseminate the results of the evaluations and 
expert consultancies established for project appraisal. This has led to a considerable 
improvement in the quality of projects presented in these two areas of NGO specialisation 
and enabled the Commission to capitalise on project experiences for policy exchanges with 
the NGOs and other donors. 
1.2.2. Block grants 
Block grants are provided to a number of European NGOs with whom the Commission has 
had a satisfactory long term partnership The main aim of the block grant is to provide the 
NGOs with a flexible financing tool for small actions, (e.g. purchase of equipment, 
construction of small-scale infrastructure, training assistance, etc.) Such operations often 
complement larger projects and many also serve to establish the initial contacts for co­
operation with new partners in the South. 
In 1996 a total of 164 Block grants were allocated to NGOs for a total of 21.9 MECU. 
Between 1984 and 1996, the Commission has cofinanced 1,330 block grants for à total of 
ECU 167.9 million. 
- 5 
YEAR 
1984 
1985 
1986 
1987 
1988 
1989 
1990 
1991 
1992 
1993 
1994 
1995 
1996 AMOUNT OF 
BLOCK 
GRANT 
3.1 
3.7 
5.7 
6.8 
8.8 
9.9 
9.7 
13.1 
18.1 
21.9 
21.5 
23.7 
21.9 % OF 
COMMITMENTS 
UNDER ARTICLE 
9 
11 
13 
11 
11 
12.4 
10.8 
12.6 
16.5 
16.2 
14.8 
13.6 
12.5 NO OF 
BLOCK 
GRANTS 
39 
43 
50 
59 
79 
96 
97 
118 
140 
159 
134 
152 
164 NO OF 
MTNI-
OPERATI 
ONS1 
383 
450 
671 
822 
961 
1082 
1099 
1447 
1935 
2 263 
2 239 
2 435 
N/A. AMOUNT GIVEN BY 
THE COMMUNITY 
PER 
MINI-OPERATION 
(ECU)1 
8 202 
8 146 
8 507 
8 272 
9 153 
9 105 
8 857 
9 061 
9 363 
9 666 
9 606 
9 726 
N/A. 
1.2.3. Recipient countries 
The 645 development projects cofinanced in 1996 were carried out in 100 developing countries. 
The geographical breakdown2 of the Community's contributions was as follows: 
- Sub-Saharan Africa 
- Latin America 
-Asia 
- Caribbean 
- Mediterranean 
- Pacific 
-Other3 
TOTAL 1996 
ECU million 
45.9 
46.2 
24.7 
6.2 
7.9 
0.8 
0.9 
132.6 % 
34.6 
34.8 
18.6 
4.7 
6.0 
0.6 
0.7 
100 1995 
(%) 
32.4 
36.1 
17.5 
6.0 
8.0 
0.0 
0.0 
100.0 1994 i 
(%) | 
33.9 
40.6 
16.0 
3.7 
5.3 
0.1 
0.4 
100.0 
This figure will only be available in late 1997. 
Does not include geographical breakdown of 1996 blockgrants which amount to 21.9 MIO ECU. 
This will only be available in late 1997 and does not substantially affect the overall picture of the 
allocations per recipient country. 
Projects covering several countries. 
-6 
The breakdown between ACP and non-ACP countries was as follows: 
- ACP countries 
- Non-ACP 
TOTAL 1996 
ECU million 
53.37 
79.22 
132.6 % 
40.25 
59.75 
100.0 1995 
(%) 
37.2 
62.8 
100.0 1994 
(%) 
i 
1 i 
i 
36.3 j 
63.7 I 
100.0 | 
1.3 Co-financing of Information Awareness and Raising Campaigns on 
Development Issues in the EC. 
1.3.1 Main Features of 1996 Programme 
In 1996, 179 projects totalling ECU 18.3 million were cofinanced accounting for 10% of 
the commitments under item B7-6000. This included 42 multi-project programmes 
concerning 289 mini-projects amounting to 1.63 MECU. 
Generally speaking, the aim of these projects is information, awareness-raising and 
mobilization of the European public with regard to development issues in order to 
increase support for policies and schemes which would have a positive impact on the 
people of the developing countries. 
The formal education sector is once again an important area of NGOs' work (34 projects 
cofinanced in 1996, with many others including schools amongst their target groups). A 
major evaluation is underway, examining in particular NGOs' strategies to give 
development education a more lasting place in the schools' system (results available late 
1997). In the projects cofinanced in 1996, increasing attention to teacher training and a 
more systematic approach to curriculum needs has been encouraged, as has work with 
educational authorities at appropriate levels. 
Consumers form a second important target group. The number of projects addressing fair 
trade issues is increasing (10 in 1995, 14 in 1996) and some NGOs are also targeting 
them on other aspects of trade (protection of tropical forests, biodiversity, workers' 
rights, child labour). This appears to be a growing area of NGO activity, and one where 
collaboration between NGOs from different Member States is strong, and which shows 
considerable potential for alliances with other social movements (environmental 
children's rights, etc.). 
Another area of increasing activity is that of the impact of globalization. NGOs working 
in the field of trade union education have been dealing with this for some time. However, 
the theme is • beginning to appear increasingly in work in the youth sector, local 
community work and in projects linking similar organizations in Europe and the 
developing countries (women's organisations, popular education movements, church-
based groups). 
Finally, the issues of democracy and human rights, together with the relation between 
development prospects and situations of conflict, have received steady attention from 
NGOs (7 projects specifically addressing the issues, others including them in broader 
campaigns). 
The second Development Education Forum, held in Lisbon in November 1996, began 
work on identifying possibilities for increased strategic planning in the field of 
awareness-raising and development education. One of the Forum's principal proposals 
was to organise a Summer School, to enable NGOs from all Member States to share 
experiences and practice in key fields. The School will be held in the UK in 1997, and 
deal with links between development education and anti-racism, and the North-South 
connections in fields such as the fight against poverty, the drugs issue, and conflict 
prevention. 
1.4 Cofinancing programme from 1976 to 1996 
The cofinancing programme under item B7-6000 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 1996 they climbed to ECU 174 million. 
The following table gives an overview of the evolution of appropriations available and 
commitments made under Budset Line B7-6000. 
YEAR 
1976 
1986 
1990 
991 
1992 
1993 
1994 
1995 
1996 .APPROPRIATION 
AVAILABLE 
(ECU million) 
2.5 
46.0 
90.2 
104.6 
110.0 
145.0 
135.0 
[174.0] 157.51 
[174+1] 175.02 COMMITMENTS 
(ECU million) 
2.5 
45.0 
90.2 
104.1 
109.9 
135.0 
145.0 
157.3 
175.02 COMMITMENT 
RATE (%) 
100 
98 
100 
99.5 
100 
100 
100 
99.9 
100 
1 16.5 MECU was transferee to the budget lines for rehabilitation, AIDS, training and awareness raising 
for development to finance urgent projects carried out by NGOs. 
2 Addition of 1 MECU transferred from Budget line B7-6006 (Assistance to NGOs working in Cuba). 
Over this period, 9,119 NGO projects were cofinanced; the EC contribution to these was 
ECU 1,361 MECU. 
The breakdown of operations in developing countries and development awareness raising 
campaigns was as follows: 
1976-1996 
Projects in developing 
countries 
Development Awareness 
raising campaigns 
TOTAL Number of projects 
7,420 
1,699 
9,119 EC contribution 
(ECU million) 
1,230 
131 
1,361 % 
90.4 
9.6 
100 
7,420 development projects have been carried out by aproximately 650 NGDOs in 133 
developing countries. 
The geographical spread of Community contributions to these operations is as follows: 
1976-1996 ECU million % 
Sub-Saharan Africa 465.3 38.5 
Latin America 403.8 33.4 
Caribbean 46.7 3.8 
Asia 214.9 • 17.8 
Mediterranean 68.5 5.7 
Pacific 5.8 0.5 
Other1 3.8 0.3 
TOTAL 1.208.82 100 
ACP countries have received approximately 42,9% and non-ACP countries 57.1 % of the 
total EC contribution. 
1 Projects covering several countries. 
2 Does not include 1996 geographic breakdown of Block grants of 21.9 MECU. 
Tables I and II in the Annex give a breakdown by recipient developing country and by 
allocations made to NGOs in each EC Member State. 
Roughly half of all operations cofinanced and over 50 % of all the funds committed took 
place during the last five financial years, i.e. from 1991 to 1996. 
The average Community contribution to projects in developing countries grew from ECU 
123,000 in 1985 to ECU 275,000 in 1996. 
1.5 Relations with the Liaison Committee of Development NGOs to the EU. 
Over the last 22 years the Commission has built up close relations with the NGDO Liaison 
Committee, which is a democratic umbrella group representing more than 800 European 
NGDOs via elected national platforms. The 1996 NGO thematic conference was on 'A 
Europe open to the World; Civil Society, the IGC; the Union and the Developing World' 
which focused in particular on the problem of coherence between the EU's policies, notably 
the development co-operation, agriculture and trade policies and the principles that should 
underlie Europe's foreign policy. The Annual General Assembly was the occasion for debates 
on the themes "Beyond Lome IV", "Poverty in the North and South" and the "Evaluation of 
the Liaison Committee". 
The main conclusions of the '95/'96 evaluation of the Liaison Committee focused on the need 
to revitalise and reinforce the national platforms, clarify their role and responsibilities, in 
order to ensure greater engagement of member NGOs and division of tasks with the central 
secretariat. A strategic plan for the Liaison committee for the period 1997-2000 is being 
drawn up in collaboration with the 15 national platforms. 
Throughout 1996 discussions continued between the Commission and the Liaison Committee 
on various aspects of the General Conditions for the Cofinancing of NGOs in preparation for 
their revision. Regular discussions were also held on other EC budget lines accessible to 
NGOs. 
In 1995, the NGOs and the Commission embarked on an overall review of EU-NGO relations 
known as the 'Elewijt' dialogue. (After the small Belgian town where the first meeting was 
held). The aim of this dialogue is threefold: to arrive at a better understanding of the identity 
of the European Development NGO, the harmonisation of conditions of access of NGOs to 
the different EC Budget lines and the identification of basic principles and guidelines for 
Commission-NGO co-operation. In 1996 a NGDO Charter of Basic Principles of 
Development and Humanitarian Aid was developed laying out the main characteristics and 
values defining the NGOs work. The Charter is also intended to assist the Commission in 
better understanding the specific nature of NGOs and their contribution to development. 
Progress was also made in identifying principles of Commission-NGO co-operation and 
areas for harmonisation of conditions for NGO access to EC financing, in particular as 
regards contracts. This work has continued into 1997. 
Following successful Commission-NGO consultations on the Relief, rehabilitation and 
development continuum in 1996, the Commission expressed its willingness to increase policy 
dialogue with the NGOs on sectoral and geographically focused issues, i.e. at the 'meso' level 
to distinguish it from the 'macro' level. Discussions started in late 1996 to define the 
objectives of such a dialogue and to define suitable sectoral issues and geographic regions. 
-10-
1.6 Council Regulation on Co-financing operations with European NGOs 
The Commission presented its draft proposal for a Regulation to the Council in July 1995. 
However, throughout 1995 and 1996 negotiations within the Council remained stalled due to 
differences between the member States and between the Member States and the Commission 
on the 'Comitology' issue. (This concerns the powers of the Committee to be set up to advise 
the Commission). A first reading of the draft Regulation in the European Parliament took 
place in December 1995 which gave an opinion in support of the Commission's draft 
proposal. Finally in July 1997 the Council was able to reach a common position which is 
being transmitted to the Parliament on second reading. 
1.7 Outlook 
In 1996, the effects of the globalization of the world economy have affected many of the 
poorest populations in the developing countries and have led to a deepening of the gap 
between the rich and the poor. In addition there has been a progressive withdrawal of State 
services in particular from, the key sectors of health and education which has led to the NGO 
sector being asked to fill the gap in many countries. In this period of rapid global change 
therefore the NGOs are facing many difficult challenges, leading to changes both in the nature 
of NGOs themselves and forms of collaboration between NGOs and donors. 
The Commission is aware of these challenges and of the need to increase policy dialogue with 
the NGO community on how they are to be met. In addition, there is also clearly a need for 
increased dialogue to ensure greater coherence and complementarity between official EC aid 
programmes and activities financed by the EC through NGOs. 
In 1997 the Commission will therefore continue and widen its policy dialogue with the NGO 
community to include *meso' level (i.e. sectoral and geographically based issues), in addition 
to macro-level issues. 
Revision of the General Conditions for Co-financing will continue to be a priority in 1997 
building on preparatory work that has been carried out in 1996. 
Consultation, both internally in the Commission and the European NGO community, will 
continue on the harmonisation of the conditions of NGO access to the different EC budget 
lines under which they can obtain financing. 
The Commission will increase its contacts with its co-financing counterparts in Member 
States to explore issues of common concern and to exchange experiences. 
The Commission will continue its active support for the forging of genuine partnerships 
between European NGOs and their Southern partners, in particular through support for 
capacity building measures for Southern NGOs to enable them to participate in the 
construction of a strong civil society and ensure the sustainability of activities. 
11 
n. OTHER AREAS OF CO-OPERATION 
21 Food aid delivered by development NGOs (Title B7-2 of the Budget): 
Overall food allocation decisions concerning NGOs taken in 1996: 
In 1996, the total value of food aid allocation decisions taken in favour of NGOs 
amounted to ECU 106.54 million. 
This corresponds to 21.1% of the overall amount of food aid financed by the EC and 
represents 45% of indirect food aid (aid for international organizations - WFP, UNHCR, 
UNRWA, ICRC - and for NGOs) fori 996. 
The allocation of this aid is as follows: 
Product Quantity 
Cereals 165,000 Tons 
Milk powder 3,300 Tons 
Sugar 2,300 Tons 
Vegetable oil 7,500 Tons 
Beans 13,000 Tons 
Other products ECU 16.5 million 
Storage, Early warning systems ECU 6.36 million 
Tools ECU 6.5 million 
In 1996, the EC offered NGOs two possibilities for the implementation of their food aid 
operations, either via the utilization of EURONAID services, a service organization 
created and managed by 24 European international NGOs including the major requesters 
of food aid, or via a direct contract between the NGO and the Commission. 
However, in 1996 implementation of the majority of this aid was undertaken by 
EURONAID. 
Process of allocation to specific projects: 
Following the overall decision in favour of NGOs, the next stage involves the allocation 
to specific NGO projects. The allocation or reasoned refusal decision by the Food 
Security and Food Aid unit follows a process which comprises: examination of the 
request (compatibility of expenditure with our priorities, impact of the proposed 
operation) by Headquarters staff and by the Delegation concerned (in collaboration, 
where appropriate, with the technical assistance staff present in the country). 
12 
The role of technical assistance is very important in so far as it permits a close dialogue 
with NGOs, allowing discussion of their projects/ideas concerning food security and food 
aid. Technical assistants are now in place in most of the countries to which the EC 
accords priority. 
In 1996, the total amount of allocations approved for specific projects amounted to 
ECU 97.1 million. 
1996 - a vear of major redirection of EC policy on food aid and food security. 
The year 1996 confirmed the regearing of EC food aid policy towards food security. 
This new approach was confirmed by the Council of Ministers' approval on 27 June 1996 
of a new Regulation on food aid policy and management and specific measures to 
promote food security. The objectives of these measures are set out in Article 1(3) of the 
new Regulation. 
Besides the major switch towards integrating food aid measures within the development 
and food security policies, the principal new feature of this approach was in the scope for 
providing recipient countries, directly or via our partners, with financial resources for 
food security support measures aimed at improving food security on a sustainable and 
long-term basis. The measures envisaged for this type of funding are listed in Article 5 
of the new Regulation. 
NGO input to this process was ensured for the whole of its duration by a working group 
of the Liaison Committee which played an active part in discussions. 
New General Conditions for Cooperation: 
On the basis of this new policy framework for food aid and food security operations, new 
General Conditions on Cooperation between NGOs and the EC have been drawn up and 
should be available for the NGOs concerned during the second half of 1997. These new 
General Conditions aim to bridge the Conditions and Contracts covering Cooperation 
with NGOs in all spheres. In particular they will lay down cooperation rules and 
procedures on financial and technical assistance for food security support measures. 
2.2. Storage and Early Warning Systems 
In view of the importance- of these measures for improving food security for the 
population groups concerned, a large number of such operations have been financed by 
the EC and implemented by NGOs. In 1996, measures of this type were financed by 
NGOs in the following countries: Mozambique, Somalia, Chad, Ethiopia, Peru, Sudan, 
Zaire, Angola, Zimbabwe, El Salvador and Mali. The total sum in question was 
ECU 4 714 000. 
13-
2.3 European Community Humanitarian Office ŒCHO) 
(Chapter B7-21 of the budget, Lomé Convention) 
2.3.1 General overview of humanitarian aid in 1996 
In 1996 the humanitarian assistance provided by the Commission amounted to ECU 656 
million, which represented a slight decrease as compared to ECU 692 million in the 
previous year, and brought the grand total of Commission humanitarian aid in the last 
five years to ECU 3084 miHion. The main humanitarian theatres in 1996 continued to be 
former Yugoslavia and the Great Lakes region. Overall, humanitarian aid was provided 
in some 60 countries, notably in Afghanistan, Angola, Sudan, Somalia, Sierra Leone, 
Liberia, the Russian federation (Chechnya), Georgia, Armenia, Azerbadjan, Tadjikistan, 
Kyrgyzstan, Iraq and Haiti. 
In 1996, the fourth year of ECHO'S activities, a-Council regulation governing 
humanitarian aid entered into force and a management committee of Member States was 
set up. The activity of the committee was intense and by the end of the year it had met 
five times, giving favourable opinions on draft proposals for humanitarian aid and 
discussing various policy issues. 
Violent conflicts and their consequences continued to be the main cause of most 
humanitarian crises during 1996. As a result of these crises, there was an unprecedented 
number of refugees and internally displaced persons worldwide. They often became 
entirely dependent on outside help for their survival. While attending to the immediate 
life-saving needs of the victims of such crises, the humanitarian community as a whole 
saw clearly that political solutions to the underlying problems were urgently needed. The 
Commission continued to attach great importance to coordinating its humanitarian 
activities with the longer term work undertaken in rehabilitation and development. In 
terms of strengthening these linkages between short and long term efforts, the 
Commission in 1996 initiated the process of setting up a number of interservice task 
forces for countries and regions moving out of emergency conditions into a situation 
characterized by rehabilitation and longer term development. 
Information activities and transparency continued to be high priority in 1996, with 
publications, information and facilities for press and broadcasting media as well as joint 
activitieswith Member States, NGOs and international organisations. 
2.3.2 Humanitarian operations 
Operations in 1996 were on a comparable scale to those in 1995, the decisions adopted 
reached a total of ECU 656 million. In 1996, ECHO funds came mainly from the 
Community budget ( ECU 652.6 million) and only ECU 3.4. million from the Lomé 
Convention. 
On the regional distribution of assistance, ECHO'S operations in 1996 have followed a 
similar pattern as in 1995. In 1996, the main beneficiary region is the ACP countries 
accounting for 42% of ECHO funds, followed by former Yugoslavia (29%) and the CIS 
(8%) both representing a decrease as regards 1995, especially the latter region. Other 
main regions where ECHO has been present are Asia (8%), Iraq (5%), Latin America 
(3%), North Africa/Middle East (3%) and 2% corresponding to global decisions. 
-14-
Z.J.J NGO cooperation 
In 1996, about half of ECHO funding went to NGOs. ECHO continued to develop 
cooperation and contacts with NGOs, both directly in day-to-day contacts on operational 
issues, as well as through NGO networks and discussions on various policy issues. Such 
policy discussions were held on several occasions, often jointly organized with the NGO 
community. Activities included seminars on gender and emergencies. In December 1996 
the first FORUM ECHO-NGOs was held in Dublin to discuss: "Ethics in Humanitarian Aid". 
The discussion targeted practical examples of ethical dilemmas facing humanitarian 
operators, such as how to act on human rights abuses, how to avoid humanitarian aid 
being abused in a war economy etc. Commissioner Mrs Bonino highlighted the basic 
humanitarian mission to save lives, urging at the same time the humanitarian community 
to commit to "political advocacy". 
2.4 Cooperation with NGOs in respect of aid for refugees, returnees and displaced 
persons 
2.4.1 Cooperation with NGOs in respect of aid to promote self-sufficiency of refugees, 
displaced persons and returnees in Asia and Latin America 
The aim of this budget heading, established in 1984 on the initiative of the European 
Parliament, is to promote greater self-sufficiency of refugees, displaced persons and 
returnees over an intermediate period following the initial emergency phase and prior to the 
longer-term development phase. 
The appropriations available under Article B7-212 (ex B7-302) have steadily increased 
since its introduction in 1984. Accordingly, between 1984 and 1995 over 350 projects were 
financed, representing a total of ECU 378 424 000 implemented by a large number of 
European or local NGOs, international organizations (primarily the UNHCR) and 
governmental bodies. 
In 1996, under Article B7-212, 69 projects were committed involving a total of ECU 60 
million, of which ECU 38 million in Asia (63%) and ECU 22 million in Latin America 
(37%). Of these 69 projects, 44 were financed with NGOs (28 projects in Asia and 17 in 
Latin America), involving respectively ECU 19 500 000 and ECU 5 930 000, i.e. a total of 
ECU 25 430 000 representing 42.3 8% of the total funding committed in 1996. 
The programmes implemented in 1996 in favour of refugees, displaced persons and 
returnees reflect a diverse sectoral and geographical spread. They, continued to support the 
action plans adopted at the International Conference on Refugees in Central America 
(CIREFCA, Guatemala 1989) and the International Conference on Indochinese Refugees 
(Geneva 1989). In addition, international institutional support was forthcoming in respect of 
-15-
"care and maintenance" (UNHCR)1 , mine clearance (UNOCHA)2 and repatriation and 
resettlement (UNHCR)3. 
In Asia, operations in 1996 were focused on three principal regions: Afghanistan/Pakistan 
in which the Commission supported integrated rural development operations to encourage 
the return of refugees and Bangladesh in which the Rohingyas refugees continued to make 
up large numbers. To this must be added more specific operations such as that in Thailand 
involving assistance for the Karen refugees or in Laos involving Laotian returnees. 
In Central America, in view of the currently active regional peace process, EC aid in 1996 
focused on reconstruction and socio-economic resettlement of returnees and displaced and 
demobilized persons. Central American projects cofinanced and implemented by European 
or local NGOs in 1996 chiefly involved the development of productive activity in 
agriculture and livestock farming, vocational training, development of essential health 
services and the training of health personnel, the improvement of basic infrastructure and 
environmental protection. 
Of the 17 projects carried out in Latin America, four involved financial assistance for 
training programmes, two concerned health programmes, eight concerned the 
development of productive activities and three concerned the resettlement of displaced 
persons and returnees and the reintegration into civil society of demobilized persons. 
Of the 27 projects carried out in Asia, nine concerned the reintegration and resettlement 
of refugees, eleven concerned health and education, two vocational training, two mine 
clearance, with one information project. 
2.4.2 Aid for refugees, returnees and displaced persons f Article 255 of Lomé Convention 
IV). 
During the period in question, NGOs have continued, as in previous years, to play a vital 
operational partnership role in respect of aid for refugees, returnees and displaced persons. 
Of the ECU 3 010 000 approved in 1996 as aid under Article 255 of Lomé Convention IV, 
ECU 2 750 000 (approx. 91 %) was earmarked for NGO use. 
A programme of ECU 2 million for Zaire to help resettle displaced persons in Kasai 
province through measures to boost production and the sale of agricultural produce and to 
improve social services in the health and education spheres involved four different NGOs: 
GRET (F), OXFAM (UK), NUOVA FRONTIERA (I) and A. F. RAOUL FOLLEREAU 
(F). 
Likewise, in Senegal, a project was set up, to be implemented by CARITAS-Senegal, with 
a view to assisting the resettlement of persons displaced by the conflict in Casamance, 
involving the rebuilding and re-equipping of educational, health and agricultural production 
infrastructure. 
1 Cambodia, Bhutan, Hong Kong, India, Laos, Sri Lanka. 
2 Afghanistan. 
3 Cambodia. 
-16-
2.5 Rehabilitation programmes in developing countries 
2.5.1. Rehabilitation operations fBudget headings B7-3210 and B7-6410 - 1996 Budget 
Since the launch of the Special Initiative for Africa in 1993, NGOs have acquired a 
conceptual role in respect of rehabilitation - hence the part played by their representatives in 
the preparation of discussion papers on "The links between emergency aid, rehabilitation 
and development" - in addition to their role involving the proposal and implementation of 
projects and programmes in this sector. 
This particular contribution in respect of rehabilitation was specifically envisaged in 
Council Regulation (EC) No 2258/96 of 22 November 1996 on rehabilitation and 
reconstruction operations in developing countries, which refers to NGOs as cooperation 
partners able to obtain financial support in this sphere from the general Community budget, 
whilst at the same time seeking cofinancing. 
In 1996, a total of 52 NGOs from ten EC Member States and two ACP countries received 
financial assistance under the two budget headings concerned for rehabilitation operations 
in 11 eligible ACP countries; these operations, sometimes carried out under conditions of 
extreme difficulty, absorbed a total of ECU 42.88 million (75% of the total amount covered 
by the financing decisions). The sum total of NGO-financed projects, the average duration 
of which was 18 months, averaged out at ECU 0.55 million, to which was generally added 
funding, of a variable amount, provided by the operational partner. . • 
With particular regard to the implementation of budget heading B7-3210 "Rehabilitation 
programmes in southern Africa", 23 of the 32 operations approved were presented by 
NGOs. 19 different NGOs, belonging to eight EC Member States and one ACP country, 
received a total of ECU 14.63 million, representing 72.6% of the total sum allocated for 
operations in Angola, Malawi, Mozambique and Zimbabwe. The principal sectors of 
activity were rehabilitation of the rural sector (production: agriculture, livestock farming 
and fisheries; and basic infrastructure: education, health and water supply), as well as 
specific operations, in particular training for specific groups: street children, women, 
destitute families and demobilized persons. Funding was also approved for local 
associations and NGOs. 
With regard to the DG Vm-administered part of budget heading B7-6410 "Rehabilitation 
and reconstruction in developing countries", which represented total funding of 
ECU 36.9 million, 55 operations proposed by 35 NGOs from eight EC Member States and 
two ACP countries were approved, corresponding to a total of ECU 28.35 million (76.6% 
of the total sum approved). In the eight ACP countries in which the operations in question 
will be implemented by NGOs, the principal sectors of activity are: rehabilitation of basic 
infrastructure for agricultural production, education (in particular primary education), health 
and water supply, plus social rehabilitation (training, social support and mini-credit) for 
vulnerable groups or Community areas. 
Lastly, the partnership role of NGOs was considered in the context of the progressive 
implementation, in several of the countries concerned, of an overall - and sometimes also 
sectoral or geographical - approach vis-à-vis rehabilitation and the essential link with 
humanitarian aid, throughout which time numerous NGOs were involved in ways designed 
-17-
to meet the needs of the population concerned under the best possible conditions and at the 
same time pave the way for a resumption of development operations. 
2.6 European Programme for Reconstruction and Development in South Africa: 
Budget Line B7-3200 
2.6.1. General Objectives of the EPRD 
The Special Programme on South Africa, originally proposed by the European Parliament 
in 1985 and confirmed on several occasions by the European Council, was renamed in 1995 
European Programme for Reconstruction and Development in South Africa to signify the 
EC support to the policy manifesto of the Government of South Africa, the Reconstruction 
and Development Programme (RDP). 
The overall objective of the Special Programme/EPRD has been to assist South Africa in its 
peaceful transition to a stable, democratic, non racial and prosperous society. From 1986 to 
1996, 777 projects have been funded for a total of 698 million ECU, with a budget of 129 
million ECU allocated in 1996 to 15 programmes 
The "past" saw a dual approach by the European Community towards South Africa: 
positive measures, as the Special Programme for assisting the victims of apartheid was 
called, and negative measures, in the form of economic sanctions imposed on the previous 
regime. 
At "present" the transition is ongoing. The new Government is defining its policies and. in 
particular, the transition in development cooperation between the EC and South Africa 
concerns the following aspects: 
18 
PAST PRESENT FUTURE 
NAME Special Programme European Programme 
for Reconstruction and 
Development (EPRD) EPRD 
OBJECTIVE assistance to the 
victims of apartheid to contribute to the 
reconstruction and 
development of the 
country To contribute to the 
national programme 
for Growth, 
Employment and 
Redistribution 
(GEAR) 
INTERLOCUTOR NGOs Government of South 
Africa National Authorising 
Officer (NAO) 
IMPLEMENTING 
AGENTS NGOs Government of South 
Africa, NGOs and 
Private Sector Government of 
South Africa, NGOs 
and Private Sector 
PATTERN many projects a limited number of 
coherent programmes A limited number of 
coherent 
programmes within 
focal areas 
AREAS/ 
SECTORS education, rural and 
community 
development, 
health, good 
governance and 
democratization and 
microenterprises 
development areas/sectors resulted 
from the discussions 
with government and 
spelled out in the 
Declaration of Intent: 
- Education and 
training; 
- Health; 
- Rural development; 
- Urban development; 
- Economic coop., 
trade and investment 
promotion, support for 
Small, Medium and 
Micro Enterprises; 
- Good governance and 
démocratisation Areas/sectors to be 
finalised through a 
Multiannual 
Indicative 
Programme (MIP) 
19-
Development co-operation with South Africa has during 1996 moved closer to the 
framework for development co-operation used for ACP countries. In November 1996 a 
Council Regulation was adapted and constitutes the Legal Base for Budget Line B7-3200. 
A Country Strategy Paper for South Africa for the 1997-1999 has been drafted by the 
Commission Services, following the same approach as in the ACP countries. This Paper 
will identify the constraints to development and propose a limited number of sectors of 
intervention for future development assistance financed under the EPRD. 
The ongoing negotiations carried out by the Commission for establishing a long term 
agreement between the EC and South Africa as well as the evolving political environment 
in the country have an impact on the way the EPRD is and eventually will be carried out. 
2.6.2 Specific Objectives 
The Commission has identified with the South African Government the sectors where the 
resources available for the EPRD (European Programme for Reconstruction and 
Development) under the 1996 Budget (129 MECU) should be allocated. In May 1995 Prof. 
Pinheiro and Minister Naidoo, Minister in charge of the Reconstruction and Development 
Programme (RDP) signed the Declaration of Intent which summarizes the main areas of 
support (see Table above). The 1996 EPRD has been designed in close cooperation with the 
national government. It focuses on a small number of programmes, compared to the Special 
Programme, in order to reach a coherent developmental overall programme. 
Up to the 1994 General Elections, the Commission had operated through NGO, in 
particular, the following South African "traditional" implementing partners: 
* The South African Council of Churches (SACC) 
* The Southern Africa Catholic Bishop Conference (SACBC) 
* The Kagiso Trust 
* The Trade Unions. 
From then onwards, the European Commission Delegation in South Africa has 
progressively started to work with the new Government, continuing at the same time to 
channel part of the funding through NGOs. NGOs will continue to play an important role in 
implementing development co-operation projects within the EPRD. This can be done either 
with direct contractual relations between NGOs and the Commission or with NGOs 
"subcontracted" by Government for implementing components. Financing Agreements 
signed by the Commission and the South African Government (Budget Line B7-3200 
EPRD) has committed 13,6 million ECU for NGO projects in 1996. 
In this context, it is important to mention the EPRD 5 million ECU support to the NGO 
Rural Water Supply. It will seek to improve the recognition of the useful role that NGOs 
and independent agencies can play in rural development and provide useful lessons and 
experiences from which larger initiatives and programmes can be developed. The Support 
to the South African Trade Union Movement programme (4.3 million ECU) and the 
Democracy and Good Governance at Local level programme (1.9 million ECU) will both 
try to strengthen NGOs and local authorities to establish a peaceful, democratic and 
prosperous South Africa through social and economic development. These projects together 
20-
with the Soul City 1996 programme (2.35 million ECU), will be implemented exclusively 
by NGOs. 
Moreover, even though the Financing Agreements for projects like the Land Reform Pilot 
Programme (95/3), Water Development Programme in the Eastern Cape (95/4) and Small 
and Micro-Enterprise Development Programme (95/6) are with the Government of the 
Republic of South Africa, important components will be implemented by NGOs. 
SECTOR Number of projects MECU 
Education and Training 2 36.4 
Health 2 3.1 
Rural Development - 2 20.0 
Urban Development 1 24.5 
Good Governance 6 35.2 | 
j 
Private sector Development 1 8.9 | 
__________________________________________________—____ __________._____—___- i 
Other 1 1.1 j 
TOTAL 15 129.2 j 
________________:a^=^a-!gl^=Be==a=SBacs==a=:=nt=aB^a^^Ls======^===^^=3B==x=B==^a^^=^atBB===BasBa=BB=BS===& 
2.6.3 Conclusions 
The change in 1995 from the implementation of Budget Line B 7-3200 through several 
NGO projects to the development policy dialogue between the Commission and the South 
African Government as the only "interlocutor" and the consequent support of public 
policies by financing few programmes coherent with the priorities of the Government has 
continued in 1996. These programmes are then implemented by the Government (at central, 
provincial and local level), by the NGOs and by the private sector. 
This approach is likely to remain the same in the next few years (1997-1999). 
The ongoing Negotiations between the EC and South Africa, as well as the adoption of the 
Legal Base, will make the implementing procedures of B 7-3200 closer to those adopted in 
other developing countries, looking with special attention those used in the ACP states. 
2.7. EC health measures, particularly in respect of aids, in developing countries: 
Role of NGOs (ACP countries) 
EC financial support for the health sector in the developing countries has grown steadily 
over the last six years. 
In the ACP countries, under the 7th EDF, the sum total of approved project funding 
amounted at the end of 1996 to ECU 406 million, more than double the funding 
committed from the 6th EDF. 
21 
Improved basic health care for the maximum numbers was one of the prime objectives of 
Community cooperation in the health sector and, in this context, NGOs have been key 
partners. Their role, of both European and local NGOs (mainly they work in a 
partnership capacity) in the health sector relies upon close cooperation and continuous 
dialogue with the authorities of the recipient countries which have responsibility for 
defining health policy and priority strategies. 
The EC encourages this dialogue and in its health projects seeks to promote a genuine 
partnership between public health authorities and NGOs and other bodies involved at 
grassroots level in improving the functioning of the health systems concerned. 
NGOs have become firmly involved in projects financed by the EC in a large number of 
ACP countries such as Guinea, Chad and Uganda in which they have become partners in 
the implementation of district health policies. NGOs have also been vital partners in 
countries recovering from crisis and have played a keen part in the rehabilitation of their 
health systems. The EC has supported such NGO involvement in a number of countries 
including Somalia and Angola. 
Special mention should be made of Zaire for which an ECU 45 million project was 
approved in December 1996 allowing the furtherance of an aid programme for civil 
society in Zaire (churches, local associations and NGOs) aimed at restoring a minimum 
level of health service to certain target regions to make up for the inadequacy of the 
public service. 
For its specific strategy on HIV/AIDS, the EC can call upon a special budget heading in 
addition to general resources for financial and technical cooperation; such resources are 
implemented in pursuit of the following priority objectives: 
- prevention of transmission and promotion of non-discrimination vis-à-vis infected 
persons; 
- reinforcement of the health system in order to render it better able to handle the 
epidemic; 
- consideration of the socio-economic impact of the AIDS epidemic and measures to 
promote scientific training. 
To achieve these objectives, particularly in the sphere of prevention and support for 
communities affected by the AIDS epidemic the Commission relies upon its partnership 
with NGOs in seeking specifically to develop the capacity of local NGOs. For example, 
in 1996, out of a total of ECU 15 million committed under the budget heading in 
question, nearly 20% of appropriations were accounted for in partnership contracts with 
European or local NGOs, mainly concerning information, education and communication 
operations with target groups such as socially disadvantaged young persons or other 
population groups placed in a high-risk environment. 
-22-
2.8 Environment and forest sectors (Budget lines B7-6200 Environment and B7-
<?2Q1 Forest) (ACP countries) 
2.8.1 Environment Budget Line B7-6200 
The European Parliament created the Environment budget line in 1982 to promote 
sustainable development and the integration of the environmental dimension into the 
development process. The Commission proposed to the Council in 1995 a draft 
Regulation on environmental measures in the developing countries in the context of 
sustainable development. This draft regulation specifies priority sectors, types of 
activities and cooperation partners eligible for financial assistance and technical 
expertise. It foresees an annual allocation of 15 MECU for all developing countries up to 
the year 1999 (ACP, ALA/MED). 
ACP countries' allocation in 1996 was 7.5 MECU. NGOs which availed of Community 
financial assistance in ACP countries received about 50% of these funds, roughly 3.5 
MECU. Their activities focused largely on biodiversity and land use/soil conservation: 
• field projects building on local initiatives on preliminary assessments of biodiversity 
resources as a means for maintaining species diversity and promoting sustainable and 
equitable use of these resources (Senegal, Tanzania, East/South Africa); and field 
experimentation on appropriate methods for the rehabilitation of overdrained wetlands 
and their sustainable use (Ethiopia); four projects with total of "about 1.5 MECU; 
• information exchange and training schemes with local people to promote sustainable 
agriculture methods, agroforestry techniques (Dominican Republic and West African 
countries); local initiatives aimed at promoting public health within the wider 
framework of consumers' protection and the use of hazardous chemical products 
(Senegal, African countries); four projects with total of about 1 MECU; 
• improving policies in the areas of fight against desertification (within the wider 
framework of the implementation of the convention on desertification), defining 
strategies for poverty alleviation and sustainable resource management, exchange of 
knowledge and research methodologies for alternative paths for sustainable 
development (Sub-saharan Africa, Botswana, Mozambique and Namibia), three 
projects with total of about 1 MECU. 
2.8.2 Tropical Forest Budget Line B7-6201 
The European Parliament created the Tropical Forestry budget line in 1992 and the 
Council adopted the Tropical Forest Regulation in 1995 to promote the conservation and 
sustainable management of tropical forests. This Regulation defines the priority areas for 
intervention and cooperation partners and recipients of financial support or technical 
expertise. Annual appropriations are fixed at 50 MECU for a period of four years (1996-
1999) for all developing countries (ACP, ALA/MED). 
23-
ACP countries' allocation in 1996 was 15 MECU. NGOs which availed of Community 
financial assistance in ACP countries received about 63% of these funds, roughly about 
9.4 MECU. Their activities focused largely on the creation of forest resources and the 
sustainable management of forest resources. The creation of new forest resources should 
help in the reduction of pressure on remaining natural forest resources and in halting, or 
preferably reversing the negative impacts of deforestation while satisfying increasing 
demands. The sustainable forest management should ensure that it benefits a wide range 
of stakeholders. 
• Six field operations for the creation of forest resources and the regeneration of tropical 
forests through land use plans were carried out by NGOs in Mali, Nigeria, Cameroon, 
Gabon, Haiti and Belize, activities include improvement of farming systems through 
trees in support of agriculture (agroforestry); halting and reversing of land and 
ecosystem degradation; (4.7 MECU or 31% of ACP forest budget); 
• five field operations for the sustainable management of forest resources were carried 
out in Cameroon, Mozambique, the Pacific Islands, and the African continent; 
activities include the preparation of management plan that incorporate local needs into 
forest management through partnerships and joint mangement arrangements; ensure 
that the rights and the needs of local people to use forest resources are respected; 
improve forest management techniques and methodology; increase employment 
opportunities both directly in the forest and in the processing industries; ensure that 
exploited forests are regenerated and sustainably managed through the introduction of 
appropriate forest management practices (3.8 MECU or 26% of ACP forest budget); 
• one field operation for the conservation of ecosystems and of biodiversity of tropical 
forests was carried out in Madagascar (0.4 MECU or 2.7% of ACP forest budget); 
• one operation for all ACP countries on certification of forest management and forest 
products (0.3 MECU or 2.3% of ACP forest budget); 
• one operation for all ACP countries on forest-related research (0.2 MECU or 1% of 
ACP forest budget). 
2.9 B7-6004 
Created in 1991, heading B7-6004 is primarily for the purpose of cofinancing 
development cooperation measures via NGOs active in Vietnam. 
The main objectives supported by the Commission through NGO projects in Vietnam are 
to promote poverty alleviation strategies in the poorest communities, to encourage self 
sufficiency and self determination amongst the most disadvantaged and vulnerable 
groups in society, to strengthen capacities in the social services sector. Support for NGO 
projects is focused in the sectors of social support for marginalized groups, human 
resource development, Health and rural development.. 
In 1996, this heading was used for financing four NGO projects totalling ECU 2 million. 
The spheres in question involved medical assistance, family planning, education and the 
safety of children at work plus rural development in one of the poorest areas of Vietnam. 
24-
2.10 B7-6005 
As with Vietnam, heading B7-6005, with its resource allocation of ECU 1 million, was 
used for cofinancing four NGO operations in Cambodia. 
In 1996, the principal aims of the selected projects were vocational training and 
economic and social rehabilitation. 
2.11 Decentralized Cooperation (B7-643(n 
2.11.1 Aims 
Decentralized cooperation (DC) has become a full integral component of Community 
cooperation policy. Its three major priorities for EC development aid are: 
- to ensure sustainable economic and social development, requiring active participation 
by local players, and to develop as far as possible local resources and potential; 
- to combat poverty, requiring a more attentive response to the basic requirements of 
local population groups; 
- to encourage democratization in the developing countries through measures to 
strengthen civil society. 
These principles were reaffirmed in Lomé Convention IVa (Article 251) and in the 
ongoing dialogues between DG IB and the Mediterranean, Latin American and Asian 
countries. 
A special budget heading was opened in 1992 with a view to promoting decentralized 
cooperation (DC) in all the developing countries and in the EC with a view to creating an 
environment in which civil society could be more closely involved in official 
programmes and to introducing new types of partnership between local grassroots bodies 
and State authorities. 
During 1996 the DC team in the Commission pursued it brief, namely to spread 
information, increase public awareness and mobilize local population groups. Its work 
has principally involved the following: 
- Assistance with the preparation of the indicative programmes of the ACP States in 
which some thirty countries refer to the DC approach, even though realistically only a 
dozen or so genuine DC programmes are likely to be established under the 8th EDF; 
- Assistance to a number of ACP States during the preparation of a DC programme 
(notably Zimbabwe, Nigeria, Haiti and Burkina Faso) and monitoring, in liaison with 
desk officers, of programmes currently in receipt of 7th EDF financing (notably 
Madagascar and Cameroon); 
- Organization in Brussels of a meeting with Member State counterparts in order to 
explain the Commission's ideas and examine the scope for agreement. At the request 
of the Member States, this initiative should be renewed in 1997; 
-25 
- Participation in: 
• various meetings in the Member States (France: Ministry of Cooperation and Senate 
on involvement of French local authorities - Sweden: meeting of Swedish, Finnish and 
Danish NGOs - SIDA and FINNIDA; 
• seminars organized by NGOs on the subject of DC in France, the Netherlands, 
Barcelona and Brussels; or by the Liaison Committee of NGOs in Brussels; 
• Habitat II, the urban sector being a particularly important sphere in respect of 
decentralized local participation; 
• the Joint Commission in Namibia and meetings in South Africa; 
• ongoing preparation of a teaching manual on DC methodology; the final document 
became available in December 1996 and is being distributed to the Delegations and to 
desk officers in DG IB and DG VIII. 
2.11.2 Budget heading B7-6430 
A sum of ECU 5 743 875 was committed from the ECU 6 million available for a total of 
22 operations. 
As in previous years, a large proportion of the budget (67 %) was allocated to 
institutional support measures and the development of local DC capacity. 
Facts and figures 
Overall results 22 operations committed 
EC commitment: ECU 5 743 875 
Overall amount: ECU 11 659 424 
Cofinancing rate: 49 % 
Breakdown by type of operation: 
Institutional support/development of local capacity : 67 % 
- Pilot schemes: 26 % 
- Promotion: 5% 
- Studies/evaluations/seminars: 2 % 
Breakdown by region: 
- ACP 48 % 
- Latin and Central America 33 % 
-Mediterranean 16% 
- Asia 3 % 
26 
TABLE 1 
BREAKDOWN BY RECIPIENT COUNTRY OF 
DEVELOPMENT PROJECTS COFINANCED BY THE EC 
FROM 1976 TO 1996 INCLUSIVE 
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 
FUI 
GABON 
GAMBIA 
GHANA 
GRENADA 
GUATEMALA 
GUINEA 
GUINEA BISSAU Projects 
39 
29 
89 
115 
8 
2 
381 
348 
17 
50 
160 
16 
811 
40 
1628 
935 
83 
327 
120 
16 
126 
748 
65 
2 
346 
17 
• 50 
70 
118 
101 
10 
46 
89 
407 
449 
61 
512 
17 
11 
105 
187 
26 
331 
76 
154 EC contribution in ECU 
3,125,361 
2,869,639 
3,145,461 
3,774,147 
285,189 
202,926 
18,192,136 
21,889,898 
681,358 
1,524,100 
4,975,168 
291,890 
43,513,863 
3,835,739 
90,626,661 
31,240,719 
5,678,063 
13,196,863 
6,050,642 
1,141,578 
8,473,390 
35,479,923 
5,752,523 
57,584 
17,054,615 
747,430 
1,726,632 
3,120,452 
5,231,134 
7,200,647 
628,658 
1,156,022 
6,393,151 
16,646,070 
22,025,492 
4,969,594 
35,907,819 
1,367,024 
512,930 
2,507,857 
7,602,727 
932,371 
13,485,416 
6,479,414 
9,317,641 
27 
EC contribution in ECU 
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 
SOUTHERN AFRICA REGION 
CENTRAL AFRICA REGION 1,194,261 
1,074,189 
20,891,777 
4,866,188 
127,737 
8,124 
75,042,401 
6,512,625 
804,241 
1,913,815 
3,544,162 
3,248,711 
22,485,609 
30,146,370 
13,279 
5,454,895 
2,565,759 
19,048,265 
878,246 
13,991,815 
398,003 
7,948,122 
760,277 
21,619,134 
3,410,321 
1,066,121 
4,881,690 
13,526,658 
903,550 
21,438 
19,423,312 
279,749 
10,445,407 
4,700,695 
49,103,176 
5,909,131 
3,784,830 
21,978,500 
4,911,189 
1,352,969 
943,220 
5,608,005 
51,409,701 
32,205,070 
1,807,543 
4,000 
28-
I .11 
Projects EC contribution in ECU 
EAST AFRICA REGION 9- 935,176 I 
WEST AFRICA REGION 17 1,774,476 1 
SAHEL. REGION 17 1,893,160 
CENTRAL AMERICA REGION 5 1,027,018 
SOUTH AMERICA REGION 11 1,852,479 
ASIA REGION 10 518,762 
HORN OF AFRICA REGION 1 15,000 
AFRICA REGION 2 21,031 
MEDITERRANEAN REGION 1 396,284 
PACIFIC REGION 10 1,401,411 
DOMINICAN REPUBLIC 188 10,259,222. 
RWANDA 437 16,397,583 
SAINT VINCENT & THE GRENADINES 6 56,272 
SAINT LUCIA 8 287,716 
SOLOMON ISLANDS 21 1,410,243 
WESTERN SAMOA 4 285,290 
SAO TOME & PRINCIPE 12 2,281,742 
SENEGAL 539 21,074,467 
SEYCHELLES 5 128,571 
SIERRA LEONE 138 4,205,439 
SOMALIA 74 5,677,844 
SUDAN 168 10,715,304 
SOUTH KOREA 20 984 521 
SRI LANKA 25.0 8,435', 162 
SURINAME 10 18g 416 
SWAZILAND 29 2,28l',670 
SYRIA 9 809,422 
TAJIKISTAN 2 10 701 
TANZANIA 600 26,486',494 
CHAD 226 10,195,647 
THAILAND 181 11237 372 
TOGO 125 5!490i065 
TONGA 4 143 990 
ALL COUNTRIES 45 3 342 331 
TRINIDAD & TOBAGO 15 Wl95 
TUNISIA 75 4,686*, 134 
TUVALU 1 6J27 
URUGUAY 247 13,259,197 
VANUATU 8 416|628 
VENEZUELA 81 6 457 500 
VIETNAM 249 ttW.SIS 
WEST BANK & GAZA 313 22 478 986 
I YEMEN (NORTH AND SOUTH) 39 3 [230,220 
ZAIRE 869 33,112',338 
ZAMBIA 171 9,103,400 
ZIMBABWE 367 18,895,909 
TOTAL 7717: 
24854 1230,589,430 
29-
TABLE II 
BREAKDOWN BY MEMBER STATE OF COMMUNITY FUNDS ALLOCATED FOR COFINANCING FROM 1976 TO 1996 INCLUSIVE 
NATIONALITY 
OF 
CONTRACTOR 
Austria 
Belgium 
Denmark 
Finland 
France 
Germany 
Greece 
Ireland 
Italy 
Luxembourg 
Netherlands 
Portugal 
Spain 
Sweden 
UK 
Consortium 
TOTAL Development projects in the 
developing countries 
29 
1, 046 
112 
8 
1 , 192 
1,151 
30 
297 
1,031 
241 
445 
39 
313 
8 
1,355 
123 
7y420 5,940,408 
153,133,700 
17,145,698 
1,996,870 
178,023,495 
208,847,942 
4,942,799 
27,843,666 
183,559,557 
15,391,884 
67,783,398 
6,569,435 
68,482,381 
2,213,073 
208,624,836 
80,013,721 
1,230,512,863 -%-
0.5 
12.4 
1 .4 
0.2 
14 .5 
17.0 
0.4 
2.3 
15.0 
1.2 
5.5 
0.5 
5.5 
0.2 
17.0 
6.4 
100% Awareness raising activities in 
9 
216 
54 
1 
242 
218 
18 
60 
221 
10 
190 
32 
100 
4 
304 
20 
1,699 Europe 
902,655 
14,117,996 
4,587,588 
240,000 
14,678,064 
18,886,723 
1,935,642 
3,573,635 
17,417,087 
310,917 
14,634,694 
2,807,409 
6,924,795 
245,307 
23,470,487 
5,985,403 
130,718,402 -%-
0.6 
10.7 
3.5 
0.2 
11.3 
14 .5 
1.5 
2.8 
13.4 
0.2 
11.2 
2.1 
5.3 
0.2 
18.0 
4.5 
100% 38 
1,262 
166 
9 
1,434 
1,369 
48 
357 
1,252 
251 
635 
71 
413 
12 
1,659 
143 
9,119 TOTAL 
- ECU -
6,843,063 
167,251,696 
21,733,286 
2,236,870 
192,701,559 
227,734,665 
6,878,441 
31,417,301 
200,976,644 
15,702,801 
82,418,092 
9,376,844 
75,407,176 
2,458,380 
232,095,323 
85,999,124 
1,361,231,265 -%-
0.5 
12.4 
1.5 
0.2 
14 .2 
16.7 
0.5 I 
2.3 
14.7 
1.2 
6.0 
0.7 
5.5 
0.2 
17.1 
6.3 
100% 
30 
TABLE III 
BREAKDOWN BY MEMBER STATE OF COMMUNITY FUNDS ALLOCATED FOR COFINANCING IN 1996 
Member 
States 
Austria 
BeIgi um 
Denmark 
Finland 
France 
Germany 
Greece 
Ireland 
Italy 
Luxembourg 
Netherlands 
Portugal 
Spain 
Sweeden 
UK 
Consortium 
TOTAL Development projects in the 
developing countries 
No. of 
Schemes 
17 
55 
2 
6 
88 
120 
3 
8 
109 
20 
35 
4 
29 
8 
115 
20 
639 EC contribution 
ECU 
4,054,542 
12,130,678 
160,000 
1,506,945 
18,312,704 
29,073,908 
629,176 
2,500,012 
23,030,216 
1,979,590 
8,895,830 
935,678 
7,801,165 
2,213,073 
27,896,166 
13,344,478 
154,464,161 % 
2.6 
7.8 
0.1 
0.9 
11.8 
19.2 
0.4 
1.6 
15.0 
1.3 
5.7 
0.6 
5.0 
1.5 
17.9 
8.6 
100% Information campaigns 
European 
No. of 
Schemes 
4 
25 
6 
1 
20 
20 
2 
4 
30 
1 
18 
4 
9 
3 
27 
5 
179 for 
public opinion 
EC contribution 
ECU 
569,865 
1 ,804,152 
768,660 
240,000 
2,030,565 
2,527,543 
375,643 
299,598 
2,488,151 
11,522 
1,676,452 
449,886 
584,591 
189,162 
2,992,402 
1,287,189 
18,295,381 % 
3.1 
10.0 
4 .2 
1.3 
11.0 
14.0 
2.0 
1.6 
13.6 
0.1 
9.2 
2.4 
3.2 
1.0 
16.3 
7.0 
100% No. of 
Schemes 
21 
80 
8 
7 
108 
140 
5 
12 
139 
21 
53 
8 
38 
11 
142 
25 
818 TOTAL 
EC contribution 
ECU 
4,624,407 
13,934,830 
928,660 
1,746,945 
20,343,269 
31,601,451 
1,004,819 
2,799,610 
25,518,367 
1,991,112 
10,572,282 
1,358,564 
8,385,756 
2,402,235 
30,888,568 
14,631,667 
172,759,542 
(*) % 
2 .7 
8.1 
0.5 
1.0 
11.8 
18.3 
0.6 
1.6 
14.8 
1.2 
6.1 
0.8 
4.8 
1.3 
17.9 
8.5 
100% 
Plus ECU 1,507,630 for miscellaneous (support to the NGO Liaison Committee and consultants 


ISSN 0254-1475 
COM(98) 127 final 
DOCUMENTS 
EN 11 09 01 
Cataloaue number : CB-CO-98-130-EN-C 
ISBN 92-78-31732-2 
Office for Official Publications of the European Communities 
L-2985 Luxembour2 
/