COMMUNICATION FROM THE COMMISSION TO THE COUNCIL, THE EUROPEAN PARLIAMENT AND THE ECONOMIC AND SOCIAL COMMITTEE - PARTICIPATION OF NON-STATE ACTORS IN EC DEVELOPMENT POLICY

TABLE OF CONTENTS

1. Current situation

1.1. Introduction

1.2. Definitions

1.3. Practices by instrument and by region

1.3.1. Humanitarian aid

1.3.2. Thematic budget lines

1.3.3. Geographical instruments

2. EC expectations regarding NSA involvement in the development process

2.1. NSAs in EC development policy including trade

2.2. Dialogue, consultation and other forms of involvement

2.3. Types of NSA interventions

3. Improving the quality of the participatory approach

3.1. Respective roles of EC Delegations and Headquarters

3.2. Respective roles of Northern and Southern NSAs

4. Conclusion

ANNEXES

Glossary

ACP Africa, Caribbean and Pacific

ALA Asia and Latin America

ANDEAN COMMUNITY Bolivia, Colombia, Ecuador, Perú, Venezuela

ASEM Asia-Europe Meeting

CARDS EC Assistance Programme to the Western Balkans

CBO Community Based Organisation

CSP Country Strategy Paper

EC European Community

ECHO Humanitarian Aid Office of the European

Community

EDF European Development Fund

EIDHR European Initiative for Democracy and Human

Rights

EPAs Economic Partnership Agreements

EPRD European Programme for Reconstruction and

Development (South Africa)

ESC Economic and Social Committee

FPA Framework Partnership Agreement (ECHO)

HoD Head of Delegation

ILO International Labour Organisation

MEDA EC Assistance Programme for Morocco, Algeria,

Tunisia (Maghreb), Egypt, Israel, Jordan, the

Palestinian Authority, Lebanon, Syria (Mashrek),

Turkey, Cyprus, Malta, Libya currently has observer

Status

MERCOSUR Argentina, Brazil, Paraguay, Uruguay

MIP Multi-annual Indicative Programmes (South Africa)

NGO Non-governmental organisation

NSA Non-state actor

PCA Partnership and Co-operation Agreement

RSP Regional Strategy Paper

RRM Rapid Reaction Mechanism

SAN JOSE GROUP Costa Rica, El Salvador, Guatemala, Honduras,

Nicaragua, Panamá

TACIS EC Assistance Programme for Armenia, Azerbaijan,

Belarus, Georgia, Kazakhstan, Kyrgyzstan,

Moldova, Mongolia, Russia, Tajikistan,

Turkmenistan, Ukraine, Uzbekistan

TDCAT Trade and Development Co-operation Agreement

(South Africa)

UNDP United Nations Development Programme

UNICEF United Nations Children's Fund

WHO World Health Organisation

WTO World Trade Organisation

1. Current situation

1.1. Introduction

The joint Council/Commission Policy Statement on the EC's Development Policy (20.11.2000) is based on the recognition that ownership of strategies by the partner countries is the key to the success of development policies. The most wide-ranging participation of all segments of society must be encouraged. Partnership, ownership of development processes by the population, participation of economic and social stakeholders and the representation of civil society, are all principles shared by donors.

The Community is moving in this direction. Implementation of the Cotonou Agreement is leading to the progressive involvement of ACP Non-State Actors (NSAs) across the development process. In Latin America, the political dialogue at regional, sub-regional and sometimes at national levels includes a parallel dialogue with NSAs. Growing consultation as well as support for NSAs is included in political summits and recommendations as well as in agreements. Implementation in various fields is largely carried out by civil society. Under the MEDA programme, NSAs receive support to improve their structures and reinforce their operations and governments are encouraged to dialogue with civil society. In addition, the implementation of local development projects within the framework of social funds is, in a number of cases, attributed to civil society organisations in MEDA countries.

The participatory approach must be implemented whilst respecting both the particular situation in each partner country and the central role of the Government complemented by the decentralised local authorities, the business sector and the other NSAs. In this context, EC policy aims at further strengthening and involving NSAs in the development process. More extensive deconcentration of project management to the Commission's Delegations is under way. The ongoing rationalisation of development aid instruments, which aims at facilitating sound management and coherence of development programmes also provides an opportunity to clarify the EC's approach to working with NSAs.

This Communication on the EC's approach to dialogue with, and programme implementation by NSAs is intended to contribute to the broad policy discussion with all the stakeholders. The aim is to clarify expectations and inform the debate with partner countries. This paper focuses on the strengthening of NSA organisations in developing countries and does not deal with other levels of dialogue (Porto Alegre, Johannesburg, etc).

This paper is consistent with and complements the principles presented in the White Paper on European Governance, [1] which states that "The organisations which make up civil society mobilise people and support, for instance, those suffering from exclusion or discrimination...Non-Governmental organisations play an important role at global level in development policy. They often act as an early warning system for the direction of political debate... The Commission will improve the dialogue with governmental and non-governmental actors in third countries when developing policy proposals with an international dimension".

[1] European Governance White Paper, COM (2001) 428 final

1.2. Definitions

Giving key practical rather than theoretical definitions will help to clarify both the concept of a participatory approach and the contents of this paper.

* State actors - Those actors in the development process who are part of the public administration and directly linked to it (regional, national and local authorities) as well as Parliaments who are the legitimate representatives of societies.

* Non-state actors - The term NSA is used to describe a range of organisations that bring together the principal, existing or emerging, structures of the society outside the government and public administration. NSAs are created voluntarily by citizens, their aim being to promote an issue or an interest, either general or specific. They are independent of the state and can be profit or non-profit-making organisations. The following are examples of NSAs: Non-Governmental Organisations/Community Based Organisations (NGO/CBO) and their representative platforms in different sectors, social partners (trade unions, employers associations), private sector associations and business organisations, associations of churches and confessional movements, universities, cultural associations, media.

* NSAs as profit/non-profit-making - NSAs as defined above have an important role to play in the development process. This Communication deals with support to build the capacities of NSAs in terms of their internal structure and organisation, constituency building through broadening networks, development of leadership qualities and analytical and advocacy skills, sustainable fund raising mechanisms, etc. The NSAs are non-profit-making organisations in this framework. The business sector, acting as profit-making, is covered by this Communication only with regard to its participation in the development dialogue and policy implementation. Financial support to the business sector acting as profit-making is provided through different ad hoc instruments.

* NSAs' roles - NSAs are either operational or advocates. The tradition so far in EC co-operation with NSAs is to support them when they come to provide services in sensitive fields and implement projects to cover the basic needs of vulnerable groups in socially or geographically isolated areas. In most developing countries, NSAs are also increasingly becoming advocates, by taking part in consultation processes with external donors and in policy discussions and by contributing to the definition of their countries' strategies, thereby advancing ownership of the development process as well as deepening of democracy and increasing accountability of both the state and the business sector. NSAs often constitute the decisive operational element in public/private partnerships including those partnerships on research and technological development.

* NSAs as humanitarian aid implementers or development partners - Another distinction between NSAs comes from the different nature of their action, either in the field of humanitarian aid (assistance to catastrophe victims in order to address the needs resulting from these situations) or in the field of development (longer-term assistance to address structural needs). This distinction involves basic differences in the NSAs' expected role. In line with the Commission's Communication on Linking Relief Rehabilitation and Development, [2] increased co-ordination with all players including international and local NGOs and other civil society groups would help to improve the international response to crises and post-crises situations.

[2] COM(2001) 153 of 23 April 2001

* Development co-operation process from the NSA perspective - In accordance with EC development orientations, NSAs ought to be permanently and systematically involved across the definition of country strategies and the programming process.

- The relevant authorities are expected to take the initiative to involve NSAs in the preparation of the National Development Strategy, or the Poverty Reduction Strategy where appropriate

- The relevant authorities and the EC should involve the NSAs in preparing the EC response strategy, which is based on the National Development Strategy as well as on the EC co-operation objectives.

- NSAs should be encouraged to participate in the consultation on sectoral strategies once the priority focal sectors have been agreed

- NSAs should be involved in implementing co-operation programs through different mechanisms

- NSAs should be invited to participate in EC co-operation reviews.

* Country Strategy Papers - The programming model that is now being applied to all geographical regions is based on Country Strategy Papers (CSPs), which are the instrument for guiding, managing and reviewing EC assistance programmes. The purpose of CSPs is to provide a framework for EU assistance programmes based on EU/EC objectives, the Partner Country Government policy agenda, an analysis of the partner country's situation, and the activities of other major partners. The CSP points to where Community assistance will be directed and how it integrates with what other donors are doing. CSPs thus contribute to better planning of co-operation activities, improved donor co-ordination/complementarity, and greater overall coherence of external assistance policy with other EU policies.

* Types of NSAs interventions - NSAs can either carry out projects that aim explicitly to implement the CSPs and/or fit in with the sectoral and geographical priorities set by the Commission ("implementing partners"), or they can put forward initiatives/proposals for financing ("NSA own initiative").

* Sectors of intervention - Projects and programmes involving NSAs are implemented in a variety of sectors ranging from agriculture and rural development, human rights and governance, to micro-finance, gender equality, health, education, culture, research and scientific capacity building, environment and employment generation. All these programmes have a capacity building dimension, and they may benefit the various target groups. Many programmes also provide direct support for NSA organisations as such, with a view to structuring civil society.

* Northern and Southern NSAs - NSAs from the EU are gradually changing their role in the development process, in particular by making efforts in supporting and identifying suitable NSA partners in developing countries as well as in building capacities amongst them. This process reflects the mutual interests of both the Northern and the Southern NSAs and is to be encouraged.

1.3. Practices by instrument and by region

1.3.1. Humanitarian aid

The Humanitarian Aid Regulation (1257/96) establishes the entities which can benefit from Community funding to implement Humanitarian aid operations. Three categories of partners are covered: NGOs, international organisations (i.e. UN Agencies, International Red Cross organisations) and specialised organisations of Member States. In respect to NGOs, the Regulation requires to be non-profit autonomous organisations in a Member State of the Community under the law in force in that Member State and to have headquarters in a Member State of the Community or in the third countries in receipt of Community aid. Exceptionally, the headquarters may be in a third donor country. For NGOs to work on a long-term basis with ECHO, they have to sign a Framework Partnership Agreement (FPA), which is an instrument for selecting NGOs on the basis of an in-depth analysis of their mandate and their impartiality in the allocation of aid, their operational, administrative and financial capacities as well as their specialisation and experience in the field of humanitarian emergencies.

Although NGOs from third countries not established in the European Union are not eligible for direct funding from ECHO, they play an important role as ''local implementing partners'' of European NGOs for humanitarian operations financed by ECHO. Their knowledge of the field is an advantage for successful operations as it can help to provide a more efficient link with rehabilitation and development once the humanitarian emergency is gone and ECHO funding is withdrawn. NGOs from third countries are invited to play a more important role when it comes to identifying needs in the field and increasing the responsibility of both NGOs and other partners, and of the EU in its capacity as active donor vis-à-vis the beneficiaries.

Humanitarian aid can be implemented either at the request of international and non-governmental organisations, an EU Member State or the beneficiary country, or at the initiative of the Commission. This bears out the dialogue that is taking place between the Commission and civil society in the context of humanitarian aid. NGOs that have signed a FPA are also invited to engage in a permanent dialogue with ECHO through various mechanisms such as thematic working groups, annual meetings between the Commission and the partners signatories of FPA (210 on 12 July 2002) and strategic meetings between a delegation of partner NGOs and ECHO at the end of the year in order to discuss and exchange information on the respective priorities for the following years.

The amounts of humanitarian aid committed to NSAs over the last three years can be summarised as follows (in million euro and as a percentage of the annual amount committed for operational contracts):

>TABLE>

1.3.2. Thematic budget lines [3]

[3] Food Security (B7-20), Human Rights and Democracy (B7-70), NGO co-financing (B7-6000), Decentralised co-operation (B7-6002), , Environment in the developing countries and tropical forests (B7-6200), Aid for poverty related diseases (HIV/AIDS, malaria and tuberculosis) (B7-6211), Contribution to GHF (B7-6212), Integrating gender issues into development co-operation (B7-622), Capacity building for information and communication technologies and sustainable energy (B7-623), Integration of children' rights into development co-operation (B7-624), Disabled people in education, health care (B7-625), North-South co-operation schemes in the campaign against drug abuse (B7-6310), Aid for population and reproductive health care (B7-6312), Aid for basic education in developing countries (B7-6313), Community participation in action concerning anti-personnel mines (B7-661), the Rehabilitation and Refugees instruments and the Rapid Reaction Mechanism

Background

The Commission is discussing the principle of a rationalisation of thematic/horizontal budget-lines. An in-depth dialogue on this issue with the different stakeholders is ongoing. A process of harmonisation and simplification of decision procedures and implementation modalities for all thematic budget lines has been launched. Measures have already been taken to improve the focus and management of a number of horizontal and thematic programmes in the last few years, in particular Food Security, the European Initiative for Democracy and Human Rights (EIDHR) and NGO Co-financing. NSAs can also qualify as partners in research projects to the extent that they satisfy the criteria to be eligible for research and technological development community funds.

Since 1976, the Commission has been co-financing development activities proposed by NGOs under the budget-line B7-6000. This budget line is historically based on the involvement of European civil society in the dialogue with the Commission on EC development policy. Over time increased priority was given to activities initiated by partner organisations in the developing countries. The implementation guidelines for 2002-2003 make this a precondition. Since 1992, the Commission has used budget-line B7-6002 to providing funding for capacity building activities and mobilising decentralised actors in the developing countries. The objective is to promote a real change by reinforcing the role of those actors in the implementation of development programmes. At present, the Co-financing and Decentralised co-operation budget lines (B76000 & B76002) are the subject for consultation with the liaison structure between the EU and the European NGOs and other important European NSA networks.

The main Human Rights NGOs based in Brussels were consulted on the draft programming document of the European Initiative for Democracy and Human Rights (EIDHR) for 2002-2004; civil society in third countries has in general been consulted via the Commission Delegations. Following the approval of the programming document, a series of missions were embarked upon in countries identified as "focus countries" for EIDHR 2002-2004, and local human rights NGOs were systematically consulted. In addition, a series of regional workshops are being organised within the framework of EIDHR with the aim of continuing a field-level dialogue between the Commission services and human rights groups on the EC's role in promoting human rights and democratisation in third countries, and on the implementation of EIDHR. The first workshops were held in June 2002 for the Mashrak-Gulf region and the Maghreb; other workshops will be held in Latin America, the Middle East and Africa in the second half of 2002 and in 2003.

The European Community contributes to the sustainable improvement of food security in the developing countries through various activities such as financial and technical assistance designed to implement food aid and food security programmes as well as rapid alert systems and storage programmes. Some of these activities support civil society organisations directly, for example, awareness building, technical assistance and training for groups of women, producers associations, etc., and support for the food aid local structures. For each programme, two types of aid are planned: direct or indirect. Direct aid is managed by the government of the beneficiary country who can agree to co-operate with local entities in the framework of a pre-established national support strategy. Indirect aid is provided in the framework of a contract signed between the Commission and an implementing organisation, especially the UN and NGOs. NGOs' capacity in the areas of food aid and food security is important.

The Rapid Reaction Mechanism (RRM) is designed to allow the EC to respond urgently to the countries experiencing civil emergencies and natural disasters. Its purpose is to support short-term measures aimed at safeguarding or re-establishing the conditions under which the partner countries of the EC can pursue their long-term development goals. The RRM does not finance humanitarian assistance, which is where the European Community Humanitarian Aid Office (ECHO) takes the lead. Civil society organisations are key actors in conflict prevention. They are often present on the ground in situations where official state structures are absent. They can also function as grass roots mediators and as reliable and neutral observers in situations where there is no international presence. Services carried out by specialist NGOs such as conciliation, pure mediation (so-called Track II diplomacy) have sometimes proved decisive in a crisis situation. Key civil society organisations in this context include women's associations, private business and religious/cultural bodies.

Evaluation reports on individual thematic budget lines are available on the Commission's website [4]. They cover in particular the NGO co-financing and the decentralised co-operation budget lines. The NSAs role is also examined in the context of other budget lines recently evaluated, such as Food Security, Human Rights and Democracy, north-south co-operation in the fight against drugs abuse, aid for poverty-related diseases, ... The reports conclusions underline the need of both promoting participatory approaches and strengthening the dialogue between all actors involved in the development process. They also suggest different strategies for capacity building.

[4] http://europa.eu.int/comm/europeaid/evaluation/index.htm

Quantitative analysis

The amounts committed to NSAs under the main thematic Budget Lines during the last three years can be approximately estimated and summarised as follows (in million euro and as a percentage of the annual Budget Line amount committed).

Co-financing (B7-6000) and Decentralised co-operation (B7-6002) budget lines provide support for "NSA own initiative"-type funding. Both Budget lines are 100% implemented by NSAs. The amounts below include capacity building initiatives:

>TABLE>

For Food Aid and Food Security, the figures reported correspond to the Food Aid delivered through EuronAid (European network of 32 NGOs delivering Food Aid) as well as the allocation for food security, some of which, further to Calls for proposals, is implemented through NGOs. NGOs are therefore considered as acting as implementing partners. In terms of capacity building, there is a provision in each contract for NGOs to build capacity within their Southern NGO partners.

>TABLE>

Under the EIDHR, NSAs act as implementing partners. Capacity building projects (focus on training issues) are included in the figures below.

>TABLE>

The other main thematic budget lines considered in this paper are related to: uprooted people in Asian and Latin American countries, rehabilitation and reconstruction in Asia, Latin America, Mediterranean (Near and Middle East), Eastern Europe/Central Asia, and East Timor, rehabilitation and reconstruction for developing countries in particular ACP, fight against HIV/Aids and reproductive healthcare, fight against HIV/Aids, malaria and tuberculosis, gender integration in development, north-south co-operation in the fight against drugs, environment and tropical forests, actions covering anti-personnel mines. Even if all these budget lines include a capacity building dimension, this is particularly visible in the Environment and tropical forests, which is the only one in which NSAs act both as implementing partners or at their own initiative.

>TABLE>

The Rapid Reaction Mechanism has been operational since 2001. Of the 36 operational projects so far committed under the RRM (to June 2002), 26 have been contracted to NSAs. However, in 6 cases of those 26, the NSAs involved were in fact working directly with the local administration to improve delivery of public functions. For example, NSAs have been funded in Afghanistan to support the local administration and in FYROM to provide technical oversight of the EC input into a programme of public works (electricity supply). In financial terms, out of a total of EUR20m committed during 2001 on operational projects, EUR16m was contracted to non-state actors (EUR1m of which where NSA's are directly working with local administrations to improve public functions)

As an order of magnitude the totals are estimated as follows:

>TABLE>

1.3.3. Geographical instruments

The joint Council/Commission Policy Statement on the EC's Development Policy encourages the widest-ranging participation of all segments of society in the development process. The Cotonou Agreement with the ACP States makes the participatory approach at all levels of co-operation a legally binding, well structured obligation, which aims to encourage the dialogue between the national authorities and the NSAs in the country. In the other regions, the political frameworks of co-operation provide for a participatory approach mainly in implementation of projects and programmes. Growing support for civil society is discernible and initiatives to further involve NSAs in dialogues and consultations are being undertaken in all regions.

(1) The Cotonou Partnership Agreement recognises the complementary role of, and the potential for, contributions by NSAs to the development process. NSAs will, where appropriate, be kept informed of and involved in consultation on co-operation strategies. They will be provided with financial resources, involved in the implementation of co-operation projects and programs and be provided with capacity building support in critical areas in order to reinforce their capabilities. Consultation during the first phase of the programming process has been in general satisfactory but should improve in view of the review process. Analysis so far shows that in most countries (48 out of 55) the NSAs have been consulted and CSPs have been adapted accordingly in more than 50% of the cases (30 countries out of 55). In many countries (32 out of 55) amounts have been earmarked for NSA capacity building and networking. These amounts represent some 5% of the programmable resources allocated (EUR 166 million out of EUR 3,5 billion).

(2) NSAs have traditionally been privileged partners of the EU' s co-operation with South Africa. Prior to 1994, a specific budget line in support of the victims of apartheid concentrated on funding local NGOs and CBOs. After the end of the apartheid, the South African government made consultation and co-operation with civil society a political priority. The EU' s Trade, Development and Co-operation Agreement with South Africa (TDCA) states that dialogue and partnership between public authorities and non-governmental development partners and actors will be promoted. NGO and community based organisations are amongst the co-operation partners eligible for financial and technical assistance. Any other body could be made eligible if so designated by both Parties. Multi-annual Indicative Programmes both for 1997-1999 and for 2000-2002 provide that "an indicative allocation of 25% of the resources available under the EPRD will be set aside to decentralised co-operation", either as direct grants or partnership programmes in which government departments and NSA participate. Although there is no particular provision in the TDCA for NSA consultation during the programming phase, the Cotonou Agreement, to which South Africa is a signatory, now applies. As a result, NSAs are currently being involved in the preparation of the new MIP (2003-2006).

(3) Under the MEDA programme,NSA are particularly involved at the regional level through the EuroMediterranean Civil Forum and several sectoral fora. MEDA projects specifically dedicated to the reinforcement of civil society mainly consist of capacity building, which may lead to reinforcing the dialogue between the NSAs and the government of the partner country and to encouraging information sharing and durable links between network partners, and participation in project implementation. In the framework of the social funds, or projects dealing with local development in the region, NSAs are involved in their implementation and often in their planning.

(4) The proposal for a new ALA Regulation [5] includes different NSA amongst the entities directly eligible for Community co-operation. This was already the case with the previous ALA Regulation (443/92), which mentioned that recipients of aid and partners in co-operation may include other entities in addition to States and regions. The new Regulation proposal also points out that co-operation will support the development of closer relations between ALA partners and the EU, so as to enable mutually beneficial exchanges, notably between economic, social, cultural, educational and scientific entities. The current regional, subregional and country strategy papers have a strong civil society component. In Latin America, a political dialogue has been institutionalised between the EU and the Rio Group, which brings together the whole of Latin America. A political dialogue equally exists at the three sub-regional levels with the San Jose Group, as well as with Mexico, with the Andean Community and with Mercosur which include a parallel dialogue with civil society. Growing support to civil society can be perceived in the new generation of Agreements. The Association Agreement initialled in June 2002 with Chile and the Agreement under negotiation with Mercosur include provisions for dialogue and co-operation with civil society. The Agreements in force between the EC and the Asian countries do not contain a legal obligation to consult civil society. However, dialogue has taken place through formal structures such as the EU-India forum and the ASEM forum.

[5] COM(2002) 340 of 2 July 2002

(5) EC assistance to the Western Balkans, which contributes to the stabilisation and association process, is focused on building up an institutional, legislative, economic and social framework and promoting a market economy. The political situation in some areas can make it necessary to supply the assistance directly to recipients other than the State. The State, entities under UN jurisdiction and administration, federal, regional and local bodies, public and semi-public bodies, the social partners, organisations providing support for business, co-operatives, mutual societies, associations, foundations and NGOs are all eligible for Community assistance. Three instruments provide support to civil society in the Western Balkans: the CARDS national programmes (focusing on social aspects, democracy and stabilisation), CARDS regional programs and the European Initiative on Democracy and Human Rights (EIDHR). One of the priorities for CARDS regional funds is to support democratic stabilisation and civil society, including minority rights, media and good governance. As a complement to the CARDS national programmes and the EIDHR, non-governmental activities in the fields of human rights, fundamental freedoms and sustainable development will be promoted.

(6) Partnership and Co-operation Agreements (PCAs) are the basis for co-operation with the 13 countries of Eastern Europe and Central Asia [6] which benefit from the TACIS programme. TACIS aims to promote transition to a market economy and to reinforcing democracy and the rule of law in the partner countries. Support for civil society is part of the broader area "Support for institutional, legal and administrative reform". Projects and measures are included in financing memoranda agreed between the Commission and the partner country, based on a dialogue addressing the joint interests of both parties. There is no specific provision for involving NSA in the preparation of the indicative and action programmes. "Support for civil society'' has been selected as a priority in the majority of the CSPs.

[6] Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Mongolia, Russia, Tajikistan, Turkmenistan, Ukraine, Uzbekistan. PCAs are in force in 9 of them (not Belarus, Mongolia, Tajikistan or Turkmenistan)

The amounts committed to NSAs by the geographical instruments during the last three years can be approximately estimated and summarised as follows (in million euro and as a percentage of the annual amounts committed):

>TABLE>

2. EC expectations regarding NSA involvement in the development process

2.1. NSAs in EC development policy including trade

In practice, NSAs are gradually becoming one of the key partners in EC development policy. Broad dialogue between institutions and citizens provides the possibility for valuable input into the design and implementation of poverty reduction strategies and policies centred on the Millennium Development Goals, and it also helps to promote good governance, democratisation and respect for human rights. The relevance and the viability of co-operation policies and programmes are enhanced in the key areas of conflict prevention and resolution, human rights and trade and development.

As regards trade policy in particular, since 1998, the Commission has held meetings in Brussels with NSAs, including representatives of networks of NGOs specialising in trade and development issues. The process is reviewed regularly. It has developed and matured into an important ongoing feature of the Commission's work programme, and has been particularly valuable in the run-up to World Trade Organisation ministerials, notably in Doha (November 2001). The participating organisations are able to raise awareness of relevant issues within Europe, as well as with their contacts in development countries. This ensures a mechanism for flagging concerns and for maintaining a two-way flow of information. The process tracks developments in negotiations on the Doha Development Agenda closely and is flexible, extending to cover other trade negotiations as appropriate (ANNEX 1 Involvement of NSAs in EPA preparation - ACP countries). NSAs may be part of the policy dialogue between the EU and a third country in being consulted and kept informed on the broad orientations of the co-operation including, when possible, on the negotiation of new agreements.

The EC promotes the participation of NSAs in the decision-making process at country level according to democratic principles, as well as in the preparation of both the National Development Strategy by partner governments and the EC's Country Strategy Papers. EC objectives in promoting participatory approaches are to contribute to the ownership of the development strategies by all beneficiaries, to progressively consolidate accountable, sound and democratic institutions, to assist in the exercise of citizenship and to facilitate public-private partnerships. This will in turn result in greater viability of development strategies.

These objectives are pursued in close co-ordination with other donors, particularly the Member States. The EU will intensify its efforts to sensitise the relevant authorities in order to promote and facilitate contacts at the most appropriate level between different types of actors in the development process. Dialogue will be promoted between the relevant authorities and the more relevant NSAs. This dialogue enables NSAs to express their needs and views and, consequently, facilitate their inclusion in the development process.

In this context, the EC expects NSAs to be involved in five different stages of the development process: the preparation of the National Development Strategy; the preparation of the Community Response Strategy; the policy dialogue once the sectors of intervention have been agreed upon; the implementation and the review process. To this end NSAs should be provided with both financial resources and capacity building support in critical areas in order to reinforce their own capacities.

For NSAs to be involved in the policy dialogue and to have access to funding, the EC expects them to operate in a transparent and accountable manner. The eligibility criteria for access to funding should be adapted and developed on a country by country basis. In general, the EC can support NSAs who share the objectives of promoting poverty reduction, good governance and sustainable development, and who are able to prove their capabilities in working in key development areas: addressing the needs of vulnerable social groups including gender specific needs, environmental concerns, human rights and democracy, promoting good governance, enhancing economic and social development as well as promoting and strengthening social and political dialogue. A clear organisational structure, which reflects the basic principles of democracy, transparency and accountability, as well as independence from state and administrations are also basic conditions for access to funding.

The EU, preferably in co-operation with the government of the partner country, will provide support to increase the NSAs' capacities to play a constructive role in the policy dialogue. This can improve the quality of policy formulation and facilitate the progressive involvement of NSAs in the development process.

Special attention will also be given to small and grass roots organisations, which have the capacity to reach and represent vulnerable and isolated groups of the population. The contribution of grassroots organisations in the policy debate and strategy implementation is important to reduce poverty and attain development goals closer to the population and the places where needs emerge. Facilitating dialogue on a decentralised basis between local authorities and grassroots organisations is equally important where direct consultation of NSAs at the level of central government is not feasible. In many developing countries, a highly centralised government and the focus of activity in urban areas impedes an inclusive participatory approach, since many groups and areas are isolated from the consultation and the decision making process. This is true especially in countries that cover a large geographical area. Overall the move in many developing countries towards more decentralised systems of governance will increase the need for participation by beneficiaries in the setting of priorities and the monitoring of budgetary execution.

Northern NSAs present in the country can play an important role in this respect. They can provide assistance for facilitating and promoting the initiation or consolidation of in-country dialogue processes and helping key organisations to participate in the dialogue, in the programming exercise and in the drawing up of programmes involving the allocation of resources to NSAs. These activities should be furthered in terms of transferring know-how to rural and marginalised populations advancing not only an ''inclusive participatory approach'' but also ownership of the development process at large.

Finally it is also necessary to elaborate for the follow-up of NSA interventions performance indicators as a basis for a common control mechanism.

2.2. Dialogue, consultation and other forms of involvement

Consultation on CSPs will be systematically encouraged following a flexible and tailor made approach. A good example is NSA involvement in the preparation of the EC response strategy for both Cameroon and Uganda (ANNEX 1). It must be kept in mind, however, that there is room for improvement and that further efforts will be made during the implementing and the review phases to consolidate NSAs' involvement in the development process in these countries.

Initiatives to involve NSAs at supranational level have been undertaken in Latin America (Rio Declaration follow-up, Madrid Summit preparation, San José Dialogue, EU-Mercosur Forum on Business Dialogue).

Non State Actors were invited to regional seminars on the preparation of ACP-EU EPAs negotiations in 2001. The aim is to organise joint (ACP-EC) consultation across the negotiating process, with the support of the ESC and NGO platforms.

Detailed information on these initiatives is provided in ANNEX 1.

2.3. Types of NSA interventions

There is a basic distinction between NSAs carrying out projects that aim explicitly to implement the CSPs and/or fit in with sectoral and geographical priorities set out by the Commission (NSA as "implementing partners"), and NSAs own initiatives/proposals that the Commission may decide to support (NSA own initiatives). These two different types of relationships between NSAs and the EC will continue and a balance has to be achieved between both types of support. In the second case in particular, NSAs operate on the basis of their autonomy and right of initiative in the framework of the procedures that apply for each instrument. When they act as implementing partners, NSAs commit themselves to deliver, in accordance with the contract they have signed.

EC co-operation instruments are increasingly being managed in a way that supports NSAs in the developing countries and allows them to access funding either independently or in close partnership with Northern NSAs.

ANNEX 2 provides examples of interesting cases in which the NSAs are involved in implementing projects (contractors, sub-contractors or other), in all geographical regions. Some examples of programmes where NSAs operate on their own initiative are provided in ANNEX 3.

3. Improving the quality of the participatory approach

3.1. Respective roles of EC Delegations and Headquarters

The deconcentration process, which started in 2001 and will be extended to all Delegations before the end of 2003, will help to improve the quality of the participatory approach in EC development policy. Deconcentration will lead to a gradual transfer of resources and responsibilities to the EC Delegations. Good co-ordination between the EC Delegations and Headquarters is crucial. Where conditions allow, the deconcentration process will be accompanied by decentralisation to the authorities in the partner countries.

The Head of Delegation will play an increasingly important role in the selection process of co-financing projects presented as NSAs own initiatives. In this context, the HoD should ensure that there is an acceptable degree of consistency between these initiatives and the whole co-operation strategy as well as the existing or planned EC programmes in the country concerned. For other instruments, the HoD will have crucial responsibilities in managing NSAs' access to funding. In the framework of the Cotonou Agreement, most ACP Governments in agreement with the EC have undertaken to provide support to NSAs by reserving an EDF amount for this purpose in the Country Strategy Papers. In the implementation process of these innovative provisions, the ACP national authorities, the EC Delegations and the NSA representatives are expected to identify jointly the types of actors and the types of activities to be supported. As far as the management of the funds and the funding decisions of non-state actors' activities are concerned, the HoD should be the main person responsible, as a result of the continuous dialogue between the parties on the rolling programme.

The lack of political will on the part of the national governments to involve NSAs and the poor structuring and capacity of NSAs are two important issues that the Head of Delegation often faces in a number of countries, which are not necessarily the poorest ones. Enhanced co-ordination with the Member States is an effective way of strengthening political dialogue with national authorities on this issue and to facilitate and support NSAs' capacity to make use of all the opportunities offered in the development process. Country Strategy Paper consultations can prove a useful tool for defining from the outset, policy towards NSAs and giving NSAs the opportunity to emerge, to present their ideas, to promote debate in the society and to add to the consolidation of democratic systems.

The Head of Delegation will play a central role in promoting and facilitating the dialogue between NSAs and the relevant authorities. The Head of Delegation as mentioned above should ensure close co-operation with EU Member States and international agencies and organisations already involved with relevant NSAs (e.g. World Trade Organisation, World Bank, UNDP, WHO, ILO, UNICEF, European NGOs, International Chambers of Commerce, International local government associations etc). The role of Headquarter will be to provide support to Delegations by disseminating good practices and approaches and by ensuring policy consistency and coherence in the process.

3.2. Respective roles of Northern and Southern NSAs

NSAs in developing countries are not always able to capitalise on the opportunities that exist to participate in the development process. They may have a fragile organisational structure, be inexperienced or they may be operating in a difficult environment. Improving NSA capacity to participate in dialogue with donors and national and regional authorities in recipient countries should lead to a better responsiveness to needs as expressed at the local level.

Strengthening Southern civil society, which is a long and time-consuming process, is a priority. The best entry point seems to be facilitating "bottom-up" and "inclusive" processes leading to the creation of national structures or platforms, representing the interests and aspirations of various categories of actors. These structures, with the appropriate support, are often the basis for gradual build-up of networks at different levels. Information and awareness raising are the preconditions for any successful capacity building strategy for NSAs. Experience shows that these strategies should focus on internal structure and organisation, constituency building (broadening networks), the development of leadership qualities, the development of analytical and advocacy skills, and sustainable fund raising mechanisms, etc. The "NSAs capacity building agenda" must be discussed with the NSAs themselves, with others donors and with the relevant authorities, in order to build local capacity building strategies that are coherent and adapted to the country.

Capacity building support should also be directed to help NSAs to develop capacity to participate in dialogue on global processes, conventions and conferences, within such fora or in parallel meetings.

Involving local communities and using their knowledge is also particularly relevant in a context of risk reduction and disaster preparedness, or in order to address the needs of marginalised groups such as indigenous peoples.

Encouraging dialogue between Southern and Northern NSAs as well as South-South exchanges is essential. This is becoming a key feature of development policy. Dialogue centred on mutual interests, concerns and needs should increasingly be supported and facilitated. The full range of EU NSAs (humanitarian and development NGOs, social partners, research establishments, cultural associations, media) can play a crucial role in awareness raising on development issues in Europe, in supporting and identifying suitable NSA partners in the South, as well as in building capacity amongst them.

Northern NSAs have acquired a lot of experience and have progressed essentially on an organisational and networking level to open up and reach out to all civil society actors. Therefore, they can provide their know-how to other actors as this is crucial for attaining ownership and a participatory approach in all areas such as the social and entrepreneurial sectors (with economic and social partners), academia, media etc. The Northern NSAs' role in the South is progressively moving from implementing projects towards capacity building by assisting their partners in the developing countries to become active, credible and well structured. Three programmes to support the FONGS ("Fédération des Organisations Non Gouvernementales du Sénégal") between 1991 and 2001 financed under Budget Line B7-6000 can be considered as an example of this trend (detailed information is provided in Annex 2).

The challenge that Northern partners are expected to address is to build on this progress and develop closer partnerships with their local counterparts, and move away gradually from direct intervention at operational level. The challenge for donors is to support this development.

4. Conclusion

Non State Actors are increasingly being involved in EC development policy throughout the various co-operation programmes and policy dialogues with partner countries. As an order of magnitude it can be estimated that every year some EUR1.4 billions out of the EUR7 billions of EC yearly official development assistance (20%) is being managed by or with NSAs. Initiatives have been taken in all regions to develop dialogue between EU and partner country civil societies, as well as with the authorities and the Commission.

Implementation of the principle of NSA participation in the development process will evolve over time as a result of lessons learnt. It will require experimentation, identification of best practices, flexibility and institutional innovation. This means adopting country specific approaches and taking account of varying political conditions, levels of organisation of these actors and existing traditions or mechanisms for dialogue. It means accepting that adequate information flows, sensitisation, support for the structuring of NSAs in platforms, fora, or associations at different levels - which may not be present at the outset - are longer-term objectives for the genuine involvement of these actors. It also means putting in place the human and financial resources needed to ensure proper support and follow-up for the dialogue process at the level of partner country governments, NSAs and Delegations.

It also calls for appropriate monitoring systems based on realistic and relatively simple indicators to check the quality of the process of participation and its added value for policy formulation and implementation. These activities are covered by evaluations and completion reports, as part of the already established feed back system. The challenge will be to build upon existing organisations, mechanisms and capacities, while promoting more structured forms of dialogue over time. The "rolling" nature of the new programming system of EC assistance may facilitate the gradual integration of NSAs into the process.

Differences between regions are expected in relation to NSA involvement in the development process due both to different legal provisions in the co-operation and partnership agreements and to social, political and historical contexts. However, the Policy Statement on EC Development Policy provides for the involvement of NSAs in the development process. As a consequence, an adequate level of consultation and participation is to be ensured in all partner countries. Certain standards should be met, these being:

* Promotion of NSA involvement in the preparation of the National Development Strategy or Poverty Reduction Strategy Papers by the authorities, which is the best entry point and the opportunity to enhance dialogue between the Government and NSAs. This may also apply to development strategies or plans at regional, provincial, communal or any other decentralised or sectoral level with the relevant authorities.

* NSAs should be consulted more systematically on CSPs and throughout the programming process as part of the discussions on the EC response strategy with the relevant national authorities.

* NSA involvement should include discussions on trade policies and economic co-operation.

* Having all areas of interest represented in consultations is crucial. A balanced representation has to be found between social and economic partners, and associations or NGOs representing different groups or areas of concern.

* Clear and comprehensive information is to be provided to NSAs in good time so as to allow them to prepare their participation in consultations as well as their reactions and proposals. NSAs views should be duly taken into account and discussed. Appropriate information should be provided on the outcome of consultation and dialogue.

* The EC will continue to encourage NSAs to participate in the implementation of co-operation projects and programmes. In general, the EC will support NSAs that share the objectives of promoting poverty reduction, good governance and democracy and sustainable development, and who are able to prove their capabilities of working in key development areas.

* Capacity building is essential to enable NSAs to play a constructive role in the development process. The EC encourages the Northern NSAs to continue providing their know-how to other development actors and to moving from implementing projects towards capacity building by assisting their partners in developing countries.

* Enhanced co-ordination with the Member States and other donors is an effective way of strengthening political dialogue with national authorities and facilitating and supporting NSAs' capacity to use all the opportunities offered in the development process.

* The EC intends to keep the two existing types of relations with NSAs: implementing partners and NSAs' own initiative. The dialogue on implementation will therefore continue. NSAs do not simply implement the activities formulated on the initiative of the Commission but decide themselves about engaging in implementation activities or winning jobs announced or tendered. When financing proposals formulated in applications at NSAs initiative, the Commission has its own criteria for selection and its own administrative responsibility in these decisions. In the context of this dialogue on implementation, the Commission intends to discuss with NSAs the mechanisms and tools to carry out systematically monitoring and evaluations at all levels.

* The Commission will prepare guidelines for EC Delegations on NSA involvement in the development process. Another set of guidelines for the EC Delegations in ACP countries on implementing Cotonou Agreement provisions relating to Non-State Actor access to EDF funding is also being prepared, fully reflecting the spirit of the Cotonou Partnership Agreement. These two sets of guidelines develop and complement the Commission Services' "Programming guidelines No. 6 - The new actors in the partnership" for ACP countries.

ANNEXES

Table of Contents

ANNEX 1: Examples of dialogue, consultation and other forms of involvement

ANNEX 2: Cases in which NSAs are involved, as implementing partners (contractors, sub-contractors or other), in projects in all geographical regions

ANNEX 3: Cases in which NSAs operate on their own initiative

ANNEX 1 - examples of dialogue, consultation and other forms of involvement

Cameroon

The Cotonou Agreement provisions on NSA involvement in co-operation apply to the programming exercise for the 9th EDF. However, NSA involvement in Cameroon had started beforehand, through two projects financed under the 8th EDF amounting EUR 21,9 million, these being urban social development/decentralised co-operation programs, which were redirected in a second phase towards support for NSA organisations. These interventions, based on the experience gained from micro-realisations programmes financed under the 7th EDF, provided the opportunity to try innovative capacity building approaches. In addition, by developing specific communication supports (civil society press releases, monthly bulletin, Website, press contact network), the information was improved and the journalists started playing an increasingly important role. The follow-up of these interventions requires attention which is time-consuming for the Delegation, which needs to assign the appropriate human resources to it.

The process of NSA involvement in the 9th EDF programming exercise formally started in February 2001. Selection of NSAs to participate in the programming discussions was based on the participatory process initiated by the Government of Cameroon in the framework of the HIPC Initiative. Following a request from the authorities, a fact-finding mission was launched to identify the more representative and reliable NSAs. Four information and discussion seminars were held. The mission concluded that, although NSAs were very interested in being actively involved in the co-operation process, it was particularly difficult to identify well-structured representative NSAs, against a background of a multiplicity of actors with very different objectives and levels of capacity. These conclusions were taken into account when the CSP was drafted in March 2001. EUR 9 million (out of a global allocation of EUR 159 million) will be provided for actions aimed at structuring civil society and promoting legitimate and representative bodies as well as for specific actions aimed at consolidating a participatory mechanism for the Poverty Reduction Strategy implementation and follow-up.

In July 2001, the final version of the CSP was distributed to the representatives of NSAs (22 NGOs eligible in the framework of HIPC, international NGOs, platforms of NGOs, and representatives of various confessions) and to representatives of decentralised authorities. An informative meeting was subsequently held with the participation of the EC and the services of the National Authorising Officer. The Commissioner for Development signed the CSP for Cameroon in Yaoundé 17 July 2001. He met NSA representatives.

Uganda

In Uganda consultation with non-state actors took place both during the ACP-EU negotiation process and during the programming exercise. Both community-based organisations and non-governmental organisations were consulted. The private sector is directly involved in other sectors.

A NSA Steering Committee was formed in November 2001 at the initiative of local non-state actor representatives in order to ensure regular information dissemination and systematic dialogue.

A mapping study was commissioned by the Delegation as phase-one of a two-phase study. The second phase includes a feasibility study on which a financing proposal for a Support to Civil Society Programme will be based.

NSA Evaluation of consultation process (ACP)

The EC approach to involving NSAs in the preparation of the Cameroon and Ugandan CSPs have been assessed by the NSAs themselves. A European NGO platform supported the preparation of reports on the involvement of NSAs in CSPs and the NIPs processes in Cameroon, Uganda and three more pilot countries. The reports drafted by ACP NSAs in a joint ACP-EU civil society initiative, aimed at reviewing the participation in the programming process. The reports show that attempts have been made by all parties concerned to involve NSA in the programming process. However they also highlight several factors that have hampered effective engagement with civil society in the programming process. These mainly relate to: a) the short period set aside for consultation; b) the quality and timing of information sent to NSAs about the process; c) the limited range of NSAs involved in the process; d) the lack of institutional mechanisms to facilitate this consultation process; and e) insufficient reporting back to NSAs on the results of the consultations. The reports make recommendations to the EC, to Governments and to the NSAs themselves.

Latin America: Regional and Sub-Regional level

Regional level

* In its Communication on the follow-up to the first Summit between Latin America, the Caribbean and the European Union [7], the Commission proposed to step up its action to implement the Rio Declaration through existing co-operation instruments, in particular to promoting human rights (including with local organisations and NGO's), supporting democracy (including support for the media), protecting economic and social rights, promoting information society (through a specific programme @lis to provide, namely civil society with modern tools of communication).

[7] COM (2000) 670 - 31.10.2000

* A number of thematic and sectoral events were organised to prepare contributions and positions for the Madrid Summit in May 2002. In particular, several distinct fora brought together different components of both Latin American and European civil society namely, business, civil society organisations in general, social and economic committees, some specific universities and institutes (on social equity), and Episcopal conferences.

Sub-regional level

* Central America represents an area where support for the participation of NGOs has a number of specific characteristics, due to the context in which our co-operation was provided in the 1980s and 1990s in response to internal scenarios of conflicts and population refugees. The link between the organisations of civil society and institutions was sought , in particular in the field of pacification, of reintegration and democratic consolidation as from 1984, the starting date of the San José Dialogue. In general, the EC sought to involve civil society organisations or their participation in monitoring sectoral programmes designed to implement priorities of the political dialogue (San Joséawareness raising and dialogue with the government). In Central America, dialogue was led from the end of the 1980s with the organisations of civil society, in particular with thematic networks and universities. Dialogue was led on an ad hoc basis accross the various programmes and sectoral strategies implemented by the Commission. This dialogue had very positive results.

* In the South cone, at present, consultations are already taking place on an ad- hoc basis. The Commission held a first conference with civil society organisations on EU-Mercosur / EU-Chile negotiations in Brussels on 12 October 2000. In addition, in November 2000 the Commission participated in a conference on EU-Chile negotiations with civil society organisations . The Commission organised a second conference with civil society organisations on EU-Mercosur / EU-Chile negotiations in Brussels on 12 February 2002 . In addition, the Commission/DG RELEX also created a web site in August 2000 dedicated specifically to EU-Mercosur and EU-Chile negotiations, where civil society organisations can obtain much information and many documents tracing the course of negotiations. The EU-Mercosur Forum on Business Dialogue (MEBF), which is made up of European and Mercosur business representatives is producing good results. Two plenary meetings took place in 1999, followed by a number of other meetings. At the 3rd Plenary Meeting on 15-16 May 2002, just before the Madrid Summit, a list of Trade Facilitation Measures, supported by the Commission, was adopted. Furthermore, the dialogue with the EU Working Unions and with the Forum Consultivo Económico y Social of Mercosur is also giving good results. This will lead to funding a project on the social dimension of Mercosur.

Involvement of NSAs in EPA preparation (ACP countries)

EPAs will take a comprehensive approach which provide an opportunity for ACP countries to re-orient themselves towards deeper integration into the world economy. This clearly needs the involvement of all actors concerned, notably business representatives, social partners, and civil society at large. It will also be important to involve representatives from parliaments and provincial authorities in this process. The EC has already started this consultation process and has met with civil society in Brussels and in ACP countries. However, as negotiations startthis process will be intensified. The Commission will share information, notably on studies and impact assessments that we plan to carry out. The different groupings concerned will also be consulted during the negotiation process. For this the EC will also rely on non-state actor forums, business organisations and parliamentary groups.

An important instrument for this process is the Sustainability Impact Assessment (SIA) which the Commission plans to launch in September 2002 and which will accompany the negotiations. The SIA will provide help for both EU and ACP negotiators to fully understand the economic, social and environmental impact of the different scenarios that crop up during the negotiations. One key component will be the involvement of civil society and the business community through special meetings in the EU and in ACP regions, through the establishment of an SIA steering group with representatives from business, universities and international institutions, and through a specific ACP-SIA web-page.

The main activities so far involving NSAs can be summarised as follows:

* Institutions such as the EP, the ACP-EU Joint Parliamentary Assembly and the ESC have organised workshops / special sessions in ACP countries. For example, the ESC organised regional workshops for economic and social partners on trade and development, including EPAs. The latest one took place in February 2002 in Nairobi.

* Civil Society Dialogue: The Commission organised a well-attended meeting on EPAs on 4 July 2002, as part of its Civil Society Dialogue process. The topic was suggested by a network of non-governmental development organisations in the EU, and the meeting discussed issues such as the content of EPA negotiations, the development dimension, WTO compatibility. It was agreed that the meeting represented a first step in a regular consultation process throughout EPA negotiations.

* EPA workshops: a number of EPA workshops have been organised by research institutes, Commonwealth and Francophonie, Member States, etc. The EC has contributed and participated in these workshops.

*

ANNEX 2 - EC Grant cases in which NSAs are involved, as implementing partners (contractors, sub-contractors or other), in projects in all geographical regions

The table below summarises examples of projects by region and by instrument.

>TABLE>

More detailed information is provided below on a selected number of programs:

CARDS: Western Balkans

EIDHR Micro-project 7700-MICRO-00-04: contract signed in November 2001: Women in Public Life - EC contribution: EUR10,520.00 of Total Budget EUR10,985.00 - The project aims to strengthen relations among women MPs or counsellors with "ordinary" women in economically less developed municipalities in Bosnia and Herzegovina: Bileca, Gornji, Donji Vakuf, Jajce, Bugojno, Stolac and Konjic. The activities centre on 8 workshops for which common interests and aims should be identified and those should be covered by the media. The intended result is to bring common people closer to politics and actors in politics and to communicate this to the whole population.

The strength of the project lies in its participatory approach at different levels. The interaction between federal, regional and local actors fosters the knowledge of, about and confidence in, the various structures of the BiH administration. The project operates countrywide and targets women from municipalities in both the Federation and the Republika Srpska part of Bosnia and Herzegovina. By meeting other women in decision-making capacities, the target group is given a "best practice" example of female involvement in politics.

A questionnaire has been distributed to around 200 women in order to collect information about their knowledge on women in politics, past experience in co-operation with them, plus their needs and desires to establish regular contacts. This will give important background information to help determine which topics to cover in the workshops. Two seminars were held in January 2002, in Republika Srpska - Bileca and Berkovici. The interest of the women was impressive despite the obstacles made by the mayor of Bileca municipality. In order to present the project and identify people that are ready to cooperate, Forma F had to visit the target areas several times. Activities are usually prepared in co-operation with local NGOs, municipal board members and counsellors, mayors or the president of the municipal assembly (in the case of Bileca). Co-ordination groups have been established in both towns in order to coordinate future meetings of the women involved in the project. Forma F attended the meeting of one of the co-ordination groups in Trebinje as a follow-up to the previous project also funded by the EC. This group discussed the problems of legal regulations related to the start-up of private business. In some municipalities the difficulties faced included encouraging women to participate and the different obstacles put in the way by the local authorities. Both points clearly show the need for further improvements in this field.

* MEDA

Under the MEDA programme, civil society is associated in two different, complementary ways. First, direct support for capacity building and dialogue, support to the structural and operational reinforcement of civil society organizations, encouraging governments to dialogue with civil society and associate them to the decision making process. These bilateral MEDA financing complements the direct support to NGOs and other civil society organisations through specific budget lines. The second approach is to confine the implementation of local development projects within the framework to social funds for NGOs and civil society organisations. Examples of both approaches are provided by two programs in Algeria.

First approach: Algeria - Program of support for Algerian development associations (5M euros)

Non-governmental associations in Algeria have significantly increased in number. However, the associations suffer from structural weaknesses not only financial but also institutional such as the lack of clear mandates, strategies and mechanisms for exchange of information and co-operation between themselves. The objective of the project is to reinforce the support structures of NSAs by focusing on training members of NGOs in the areas of management and communication. The project provides for meetings between associations designed to increase synergies and improve the visibility and impact of their activities on Algerian society. A fund was also established to meet the needs and priorities of associations when they implement their own development projects.

Second approach: The project on local socio-economic development in the Northeast of Algeria (50M euros) focuses on the promotion of participatory working methods by involving civil society at large (community-based organisations, professional associations, community or neighbourhood associations). The specific objective of this project is to support an autonomous process of local sustainable development in 50 communities spread across 6 Wilayate in the Northeast of Algeria by favouring productive local initiatives, thus offering disadvantage populations the prospect of better standards of living. The project provides for the elaboration and implementation of strategies and local development plans through a participatory process involving populations from these communities and their associations.

* ACP

Zimbabwe: 7005/000 - Decentralised Co-operation Programme - contribution: 7.2MEUR - The Zimbabwe Decentralised Co-operation Programme (ZDCP) is the result of a four-year consultation process with non-state actors (NSA). It enhances government policy to support administrative decentralisation by involving civil society in the process of poverty alleviation. The programme encourages the fostering of a public-private partnership between local authorities, non-state actors (NSAs) and the private sector so as to increase the efficiency and effectiveness of service delivery to rural and urban communities. The programme's overall objective is poverty alleviation through enhancement of self-reliance of local communities and its purpose is to improve service delivery to local communities. Local projects will be implemented in 5 communities classified as disadvantaged in the 1995 Poverty Assessment Report. Projects will be undertaken in the following focal areas: economic empowerment, food security, education and health.

The innovative aspect of the programme is twofold: first, its methodological approach emphasises capacity building among all participating actors and the promotion of environmental and gender awareness; second, relevance and coherence are ensured by linking local level experience into policy initiatives and advocacy at national and regional level. The programme thus consists of two components, a Local Development Fund operating at district/urban level and a Regional/National Development Fund operating at regional and national level.

The overall responsibility of ZDCP lies with the Tripartite Steering Committee which includes a representative of the National Authorising Officer (NAO), a representative of the Delegation of the European Commission and three representatives of the NSAs' National Forum which is responsible for overseeing the implementation of the programme. The Forum ensures programming coherence and management efficiency and is assisted by a technical facilitation unit (TFU).

* ASIA

Bangladesh - BRAC - Challenging the Frontiers of Poverty Reduction - EC contribution: 28.7 MEUR out of total programme cost: 62.782.643EUR - The purpose of the project is to develop sustainable livelihood models for the very poor. Such models are designed to enable very poor rural households to overcome socio-economic exclusion and to escape from deep poverty. Proven livelihood models will be debated and promoted to support replication.

The BRAC-CFPR programme is a 4-year programme that seeks to build the capacity of very poor rural households to engage in livelihood practices and activities that will enable approximately 400.000 participants to emerge from extreme poverty. To build this capacity a comprehensive and integrated programme of inputs and activities will be developed, specifically designed to meet the conditions of the very poor, and organised into 4 components: 1) Special Investment Programme, 2) Employment and Enterprise Development Training, 3) Social Development and Advocacy; and 4) Essential Health Care Services. Support and activities will focus among other things, on : awareness raising and confidence building, training, asset transfers and allowances, improving access to essential health care, supporting the formation and development of organisations that can represent the interests and opinions of the very poor, social and legal aid action, and policy dialogue/awareness/advocacy. More fundamentally, the BRAC-CFPR programme seeks to develop new ways of ensuring that the interests of poor people are taken into account in resource allocation decisions and local socio-political processes that affect their livelihoods.

* LATIN AMERICA

Panama: « Promoción de la Igualdad de Oportunidades en Panamá » (PROIGUALDAD) EC contribution: 9.800.000 EUR - The objective of the project is to improve the situation of women and all social groups and increase their participation in the political, economic and social development of the Panamanian society with regard to equal opportunities for men and women. This project aims to achieve more harmonious and equal development of society. With the support of 31 institutions, 26% from the public sector and 74% from civil society, PROIGUALDAD is expected to strengthen urban and rural women's associations who participate in this program to ensure that they will have the capacity to continue in promoting equal opportunities once the project will be completed. This project marks an important step with regard to the institutionalisation of the gender perspective in the public sector and its integration in the educational system, through human resources training and the development of methodologies to increase equal opportunities.

Chile: Until 1989 EC co-operation in Chile was exclusively channelled through NGOs whose central objective was to contribute to the restoration of democracy, mainly through the support of civil society organisations. Altogether from 1993 to 2000 NGO interventions accounted for 35% of EC financial commitments- mainly in the social fields. Democratisation and human rights was also an important intervention area accounting for 7% of the funds committed. There are still a few on-going projects to strengthen civil society in Chile. Funding was committed to a project in 2000 to develop local participative management (210.000 Euros).

* EIDHR (European Initiative for Democracy and Human Rights)

Egypt, Palestinian Authority, Jordan, Lebanon, Morocco, Tunisia - 785.600Euros -.

The program helps to underpin democracy, the rule of law and the respect of human rights in Southern and Eastern Mediterranean countries through:

- strengthening the capacity of organisations that uphold human rights in Southern and Eastern Mediterranean countries;

- development of local synergies between associations;

- development of regional synergies between associations of the various countries concerned

- establishment and/or strengthening of dialogue and co-operation between Human Rights NGOs and local authorities;

- operationalisation and promotion of implementation of the Barcelona Declaration in the area of human rights;

- operationalisation and promotion of the implementation of human rights clauses contained in the Euro-Mediterranean agreements concluded or to be concluded.

The target groups are NGOs, judges, Policemen, Parliamentarians of the South Mediterranean countries. The responsible agencies for implementation are: Egyptian Organisation for Human Rights, Palestinian Center for Human Rights, Palestinian Society for the Protection of Human Rights and Environment

* ''Co-Financing NGOs'' B7-6000

B7-6000: FNGOS action from 1991 to 2001, Senegal EC contribution 1.5 Meuros over 3 programmes

Established in 1976, the Federation of Non-Governmental Organisations of Senegal brings together thirty farmers organisations spread over 10 regions throughout the country and had some 50.000 members in 2001. More than ten years ago, a consortium of partners from the North supported FNGOS with institutional capacity building in order to strengthen the capacities of farmer leaders. Three consecutive programs have been implemented and to date the total financial support from the northern partners amounts to approximately 6.5 Meuros. The EC contribution is approximately 1.5 Meuros.

Over the last 10 years, FNGOS has undertaken lobbying activities on agricultural policy with positive results. FNGOS has also influenced certain national, regional and local rural development programmes. Many of FNGOS leaders have drawn attention at international level to the fragile agriculture of West Africans and their limited means to meet the liberal evolution. FNGOS along with other producers organisations from West Africa have created ROPPA and lobbied the Heads of States and Ministers of Agriculture of UEMOA member countries.

Since 1999, FONGS has tested basic economic support: creation of 400 microcredit organisations which provide about 1 MEUR small short-term credits to 15.000 people (mainly women), counselling for 300 family businesses, and help in setting up some 50 small experimental units of milk processing, seeds, fruits and vegetables.

* ''Decentralised Cooperation budget line'' B7-6002

Strengthening the capacities of local authorities in West and Central Africa through national and regional associations of local authorities (500.000 EUR) 2001-2003

The Association of Management of the Program for Municipalities Development in West and Central Africa (PDM) brings together national associations of local authorities, municipalities and community organisations and non-governmental organisations involved in the local and municipal development initiatives in West and Central Africa, the aim being to enable big cities to better assume their responsibilities by increasing their management capacities and expertise.

Two main types of activity have been undertaken: reinforcement of Local Authorities capacities and training of Municipalities personnel from 1998-2001.

The good results obtained led to exploring training activities and the implementation of a capacity building program for national associations of local authorities. The program also aims to strengthen the structuring of the African Municipal movement at sub-regional and continental level with concrete actions of personnel training. The Canadian International Development Agency, the World Bank, the French Ministry of Foreign Affairs, the region of Ile-de-France, the Canadian Federation of Municipalities are participating in this project.

* Food Security Program

Food Security Project in Sudan managed by a European NGO (2.9 M euros)

This project provides a flexible response to the actual needs of internally displaced persons (IDP) in the region. The project initially focused on providing food and inputs for farmers in order to avoid begging. The concept of the project is food production at different levels.

* Rapid Reaction Mechanism

Afghanistan

A first programme for Afghanistan was adopted on 13 December 2001. This Decision amounted to EUR4.9m. The main part of the programme focused on support for the Afghan Interim Authority. Part of the program will focused also on activities undertaken by non-state actors. A contract was signed between the Commission and the UNDP on 20 December 2001 for a contribution of EUR2.5m to the UNDP Trust Fund. In addition, the Commission financed : (i) a mine clearing task force which started operations in early January 2002, in close co-operation with the UN Mine Action Programme in Afghanistan (MAPA); (ii) public broadcasting through the implementing partner Baltic Media Centre and Radio Afghanistan. On 25 February 2002, "Good Morning Afghanistan" started its daily broadcasts. The programme addresses critical issues which are of importance to the population in the fast changing environment where accurate and up to date information is at a premium. Funding has already been secured for follow-up support to the programme under the EC Asia budget; (iii) assessment teams consisting of five experts covering urban recovery, food security, governance, education and gender. This exercise enhanced the knowledge of the Commission of the situation in Afghanistan and assisted preparation of a Commission strategy towards reconstruction. In addition, these experts have participated in several missions of the World Bank and UNDP as part of the Comprehensive Needs Assessment agreed at the Tokyo Conference of January 2002; (iv) the creation of a legal framework for Pakistani civil society, which will enable civil society to operate and implement its activities. Since future Commission support for Pakistan will partly be channelled through civil society, this action will underpin future EC-support to Pakistan in the context of a regional approach to the Afghan crisis. The need for a regional approach to the Afghan conflict was also reflected in the sending of three assessment missions to Central-Asia, focussing on border management, communication and reintegration of former combatants

Democratic Republic of Congo

At the beginning of 2002 the Commission funded a package of EUR2.037m support of the peace process in the Democratic Republic of Congo. The first component was quick supplementary financing for the Inter-Congolese Dialogue through the Masire facilitation. This contribution from the RRM tied in with previous and planned contributions from the EDF. The second component for grass roots initiatives consisted of (i) preparation for the Disarmament, Demobilisation, Reintegration, Repatriation and Resettlement (DDRRR) programme for the reintegration of child soldiers. This involved the setting-up of reception centres for demobilised child soldiers to reintegrate them into society and will be followed up by EDF; (ii) support for the grass roots media with the aim of raising awareness and commitment among the population for the peace process. Rapid Reaction Mechanism funds enabled journalists from independent radio stations to disseminate objective information on the Dialogue.

ANNEX 3 - cases in which NSAs operate on their own initiative

To illustrate NSAs operating on their own initiative where no official EU cooperation exists :

B7-6000 : Primary Health Care project in Wa State, Burma - EC contribution: 1.000.000EUR

Information is scarce on the situation in Wa State, and there are no other existing development programmes. The only foreign aid is in drug control in the remote mountainous area of Burma bordering Laos, Thailand and PR China. The fundamental issue is that the hill tribes lack the knowledge and expertise to grow other crops than opium and fear the devastating effect on their livelihood that change would involve. Therefore temporary food support and primary health programmes are essential to create the conditions for capacity building to help this isolated and ethnically diverse population.

Within 5 years, the project initiated by Health Unlimited (UK), will cover 168.000 people who are the most marginalised in Pangsang district and Menmor county of the northern Wa area, better accessed from the Chinese Yunnan province. It aims to provide a permanent training base, develop training materials, train managers and health workers, vaccinate children under 2 years old, equip local « hospitals » and clinics, implement malaria control campaigns, and investigate appropriate approaches to the management of HIV. The proposal has been welcomed by the Wa authorities who do not have the expertise or the financial resources to carry out the program.

HU will work with both government and community structures.

Plans to train local staff and traditional health workers will ensure that approaches are compatible with the community structures, and that traditional power systems and administrative systems in the villages are respected.

By making the most of this period of relative peace, and by co-financing Health Unlimited's proposal, the EC will be helping the to build up social services and infrastructure in a region of the world where official EU co-operation is impossible.

To illustrate ''NGO own initiative'' implementation where State Actors do not operate:

B7-6000: Basic Health Care for displaced populations in Chiapas province, Mexico EC contribution: 449.875EUR over 3 years starting in May 1999

When NAFTA came into force in 1994, the province of Chiapas erupted in violence, a revolt that still epitomises the struggle of the Indian populations towards self- determination. Last year, the political dialogue faltered again upon the voting of a new law on the rights and local cultures by the Mexican Parliament, thereby undermining the spirit of reconciliation enshrined in the 1997 '' San Andrés Agreement''. The Chiapas province is again a ''no-go area '' patrolled by opposing factions, the Government military and the EZLN (Zapatista National Liberation Army), where communal divisions and tensions are rife, life is precarious and the State systems are all but defunct.

In this context, a European NGO drew on EC co-financing to improve the health situation of the displaced tsotsil ethnic group in 7 encampments in the Municipe of Chenalhó, i.e. 12.5000 persons at the beginning of the project in 1999. In fact, the displaced beneficiaries have changed several times since the beginning of the project, as the conflict has evolved, and the NGO has adapted its response by spreading the operation accordingly. The indirect beneficiaries are rated at about 30.000 persons (displaced or local) as the community clinics are opened to both types of population. At the end of 2001, 65 ''promotors'' were active in 8 sanitary outposts, and 12 more, who are elected by their community, were operating in the free communes of Abeja. They are all in permanent training under the supervision of medical doctors, dispensing basic health care and being trained in recovering related operating costs (pharmacy).

By liaising with the SSA (the remnant of the official Health Ministry), the IRCC (International Red Cross), local medical doctors (Church, etc..) and EAPSEC (a local NGO), the European NGO has started a broad-based capacity building project in an area that State Actors have long since deserted.

To illustrate ''NGO own initiative'' involvement in capacity building and/or NSA structuring in the South :

B7-6000: Financial support for G.A.D.E.C. activities in Senegal EC contribution: 201,219 Euros

G.A.D.E.C. was established in 1987 by intellectual farmers and technicians with the aim of promoting local sustainable development with three specific objectives: institutional capacity strengthening, redefinition of the G.A.D.E.C. vision, and management and technical capacity building. In order to attain the first objective the employees of G.A.D.E.C. had their salaries regularised along with training and detailed description of posts. For the second objective, following a number of workshops a document with guidelines was produced to serve as the basis for future activities. For the third objective training and workshops focused on the management of natural resources, forestry code and local administration.

G.A.D.E.C. is in a region that covers almost one third of Senegal but it is far from the city centres and more economically favoured regions. It is important for the population concerned to defend their interests, particularly where the decentralised policy of Senegal entrusts more important responsibilities to communities.

Co-financing has made for a real improvement in institutional capacities and development in relation to the target group. The project set out to bolster the production capacity of Farmers organisations.