Chapter 1 - Delivering on commitments. 4

Introduction. 4

1........... EU response to world developments in 2011. 6

2........... Leading the way in development policy. 8

2.1 A more strategic approach: the Agenda for Change & the reform of budget support 8

2.2 Making a difference: an increased budget and new instruments. 10

3........... Keeping long-term promises. 12

3.1 Progress in achieving the MDGs. 12

3.2 Focussing on poverty. 15

3.3 Strengthening human rights and good governance. 17

3.4 Mainstreaming of cross–cutting issues. 18

3.5 Cooperation with non-state actors and local authorities. 22

4........... More, better and more effective aid. 23

4.1 Aid effectiveness and financing for development 23

4.2 Coherence between development and other policies. 26

4.3 Cooperation with the international donor community. 28

5........... Outlook 2012. 29

Chapter 2 - Implementation: geographic overview.. 30

1........... European Neighbourhood and the Middle East 30

1.1........ European Neighbourhood & Russia. 30

1.2........ Middle East 50

2........... Sub-Saharan Africa & Intra-ACP programmes. 55

2.1 Sub-Saharan Africa. 55

2.2 South Africa. 68

2.3 Intra-ACP programmes. 71

3........... Overseas Countries and Territories (OCTs) 73

4........... Latin America & the Caribbean. 75

4.1 Latin America. 75

4.2 Caribbean. 85

5........... Asia, Central Asia & the Pacific. 91

5.1 Asia. 91

5.2 Central Asia. 100

5.3 Pacific. 107

Chapter 3 - Implementation: thematic overview.. 118

1-.......... The thematic programmes. 118

1.1 Investing in People. 118

1.2 Non-State actors and local authorities in development 120

1.3 Migration and asylum.. 121

1.4 Environment, climate change and sustainable development 123

1.5 Food security. 126

2-.......... Democracy and human rights. 130

3-.......... Stability. 136

3.1 Crisis response and preparedness. 136

3.2 Global and regional trans-border challenges. 137

4-.......... Nuclear safety. 141

5-.......... Humanitarian assistance. 144

6-.......... Macro-financial assistance. 148

Chapter 4 - Managing aid for results. 149

1-.......... Monitoring project performance. 149

1.1 Performance measurement: Results Oriented Monitoring (ROM) 149

1.2 Evaluation: Review of the work carried out 153

1.3 Lessons learned. 156

2-.......... Aid delivery modalities. 157

2.1 Developments in aid delivery modalities and channels. 157

2.2 Budget support and public finance. 159

2.3 Blending of grants and loans/innovative financing. 161

3-.......... Progress in aid management 162

3.1 Progress on qualitative issues in aid management 162

3.2 Simplification of procedures. 164

4-.......... Communication & transparency. 165

4.1 Communication and visibility. 165

4.2 Transparency. 166

Chapter 5 - Financial Annex. 166

5.1 Introduction to financial tables. 166

5.2 Financial tables. 168

Annual Report 2012 on the European Union's Development and external assistance policies and their implementation in 2011

Chapter 1 - Delivering on commitments

Introduction

2011 was a particularly challenging year. Political and economic developments, both in European Neighbourhood[1] countries and within the EU, dominated the international agenda. The global economic crisis, which caused widespread market fluctuations and economic instability, continued to send shock waves around the globe, affecting the already poor and vulnerable. Tensions within the Eurozone were a source of deep concern both within Europe and in other countries.

During the Arab Spring, people-led movements demanded greater personal freedoms and voiced aspirations for a better future based on fundamental values as well as social, political and economic reform. 2011 also saw the unfolding of a humanitarian crisis in the Horn of Africa and the birth of a new African state – South Sudan. It was also a year of consolidation of longer-term issues in international politics, such as the continuing rise of the emerging economies and continued concerns about global climate change and regional poverty.

There was some progress made towards reaching the poverty reduction targets of the Millennium Development Goals (MDGs), but key challenges remain, notably tackling severe poverty. Many countries and societies are highly vulnerable to shocks and crises. The rapidly changing global environment, with new global challenges and new donors, requires new approaches both in EU external action and development policy.

In 2011, the EU launched several new strategies. They include: a comprehensive strategy for the Arab Spring, a revised European Neighbourhood Policy, a Strategy for Security and Development in the Sahel and a Strategic Framework for the Horn of Africa. To respond to the Arab Spring, EU priorities were reviewed to focus on governance, employment, and youth. Up to €1 billion of additional funding was pledged (for the period 2011-13, €3.5 billion had already been allocated to the Southern Mediterranean countries). An updated Human Rights and Democracy strategy envisaged a cohesive approach across EU external policies along with a strengthened focus on human rights and support for democracy. New EU Delegations were opened in Libya and South Sudan.

Human rights, democracy and other key elements of good governance were also essential elements of the European Commission's Communications of October 2011 on a revised EU development policy – an “Agenda for Change” and on budget support. The Agenda for Change proposes two new pillars for EU development policy: good governance and sustainable and inclusive growth. It also contains a proposal to bring in differentiation, amounting to resources being targeted to countries most in need of assistance, including situations of fragility, and where they can have the biggest poverty reduction impact. Such differentiation will mean less, or no, development grant aid to more advanced partners, with whom new forms of strategic cooperation will be developed.

Providing more than half of the world's total Official Development Assistance (ODA), the EU and its Member States continued in 2011 to be a leader in development policy and action. The main international development event of the year was the Busan Forum on Aid Effectiveness. A new Partnership for Effective Development Cooperation was adopted[2] building on the former Paris Declaration and Accra Agenda for Action[3]. In addition to aid effectiveness, it contains commitments for development effectiveness covering South-South cooperation, involvement of the private sector and funding to counter climate change. The document has been endorsed by a wide community of traditional bilateral and multilateral donors, developing countries, emerging economies, civil society, parliaments and private sector.

The EU pursued its policy of improving Policy Coherence for Development (PCD) throughout 2011.

The European Development Days event (EDD)[4] – an annual forum debating global issues and development cooperation – held in Warsaw, Poland in December 2011, focussed this time around on the relationship between development and democracy.

Institutional changes and the first year of the EEAS

The Lisbon Treaty put the fight against poverty at the core of the EU’s external and development cooperation policies. 2011 was the first year of operation of the European External Action Service (EEAS) under the authority of the High Representative of the Union for Foreign Affairs and Security Policy (HR)/Vice President (VP) of the European Commission, Catherine Ashton. It was an intense and challenging year for building the EU’s role in foreign policy and external relations and promoting more effective development cooperation through more joined-up policy making.

Within the Commission, the former Directorate-General for Development and the European Cooperation Office - EuropeAid were merged to form DG Development and Cooperation and a new service for Foreign Policy Instruments (FPI) was created. Under the authority of VP Ashton, the FPI is tasked with implementing the Common Foreign and Security Policy (CFSP) budget, the crisis response and prevention measures financed under the Instrument for Stability (IfS), the electoral Observation Missions under the European Instrument for Democracy and Human Rights and the cooperation with industrialised countries (ICI). It is also responsible for preparing and implementing sanctions proposals.

The Arab Spring was both a foreign policy challenge and a political opportunity. EU institutions brought together their services and instruments. Joint crisis platforms brought together the EEAS and the relevant Commission services in coordinating an immediate response to the crises in Libya and Tunisia.

During the year, Commission services and the EEAS also worked hand in hand on a number of issues, ranging from proposals for development policy, notably the Commission Communications on the Agenda for Change and on budget support and the Human Rights and Democracy strategy. They also worked together on preparing the Commission proposals for the next Multi-annual Financial Framework (MFF), drafting of proposals for the new financial instruments and guidelines for multi-annual programming.

The United Nations (UN) General Assembly Resolution in May on the status of the EU also underlines support for the EU to play its international role. The global network of 140 EU Delegations carry out political, diplomatic, development and policy work for the EU and provide support to Member States through such activities as shared reporting. They also offer the future prospect of better division of labour, including joint programming of development assistance. As some national diplomatic services scale back their resources to concentrate on other priorities, the value added of the Delegations is in ensuring that the EU is properly represented throughout the world.

1. EU response to world developments in 2011

Events across the North Africa and the Middle East regions during 2011 – known as the Arab Spring – resulted in a profound transformation of the EU’s relations with its southern neighbours.

The EU was the first to acknowledge that the uprisings and their outcomes must be owned and driven by the people of the countries themselves. It also took immediate steps to respond rapidly and effectively to the challenges of the evolving situation, notably providing substantial humanitarian and civil protection assistance, support to democratic transition and assistance to impoverished areas.

In March 2011, a new EU approach to the southern Neighbourhood was set out. It offered “A Partnership for Democracy and Shared Prosperity” to partners committed to wide-ranging and bold reforms. This led to a new approach for the whole European Neighbourhood Policy. The revised incentive-based policy - known as “more for more” - was drawn up to support partners who were delivering reforms, building “deep democracy” and ensuring sustainable and inclusive economic development.

Significant support was provided by the EU for the holding of elections in Tunisia, Morocco and Egypt. There was political condemnation of the respective situations in Bahrain, Yemen, and especially Syria. In Libya (before the fall of former Leader Muammar Gaddafi) and Syria, the EU decided on economic sanctions, trade embargoes, asset freezes, suspension of new EIB loans and visa bans. In parallel, it expanded its support to civil society in the entire Neighbourhood. It also took the initiative to coordinate and strengthen coherence of the international response to the Arab Spring events.

There were further initiatives taken in the region to respond to the new situation, notably in the area of trade and mobility. A significant amount of new funding was offered by the EU as well as making adjustments to its on-going support to fit with new policy objectives. The EU also took a pro-active role in international coordination efforts, together with the UN, the Arab League and other major actors like Turkey. During the Libyan crisis, HR/VP Ashton brought together the UN and regional organisations (EU, Arab League, African Union and Organisation of Islamic Cooperation) in the Cairo Group and actively participated in the Libya contact group. This diplomacy led to a convergence of views in the international community on how to respond to the Libyan crisis. An international Task Force, bringing together the EU, third countries and international financial institutions, was created to enhance the coherence of international support to countries in transition in the Southern Mediterranean. Its September 2011 meeting in Tunis, co-chaired by the Tunisian Prime Minister and the HR/VP, resulted in an overall financial support to Tunisia of about €1 billion in 2011 for supporting economic recovery. Coordination, both within the EU and with international partners, is a key role of the new EU Special Representative for the Southern Mediterranean. Task forces with other countries are in preparation.

Events in the southern Mediterranean have also had both short and potentially longer-term impacts on the region’s southern neighbours, particularly in the Sahel and neighbouring countries like Chad. Using the IfS, the EU has responded to requests for immediate support to address migration flows and offset the disruption of remittances. The Strategy for Security and Development in the Sahel addresses the longer-term security and development impacts on the region.

The Arab Spring has also brought more urgency to the Middle East Peace Process (MEPP). The voice of the EU in the MEPP became stronger, not least by pushing for a more active role for the Quartet: the UN, United States, EU and Russia.

The High Representative pursued international diplomatic attempts to find a solution to the Iranian nuclear issue based on her United Nations Security Council (UNSC) mandate. The aim has been to convince Iran that it must demonstrate its readiness to engage in a confidence-building process in order to address all existing concerns on its nuclear programme. This followed a resolution of the Board of Governors of the International Atomic Agency (IAEA) expressing the body’s deep concern at Iranian activities relating to the development of military nuclear technology. Alongside diplomacy, the EU’s approach has been to continuously strengthen existing sanctions. Additional measures affecting the financial, transport and energy sectors were prepared with the aim to have them adopted by the Council in early 2012. At the same time, close attention has been paid to the country’s worrying human rights situation.

Turning to Sub-Saharan Africa, 2011 saw the adoption of an EU Strategic Framework for the Horn of Africa. In partnership with the region and key bodies such as the United Nations and the African Union, it aims to bring greater peace, stability, security, prosperity and accountable government to the region. The EU continues to lead multiple common security and defence policy operations in the region. The European Union Naval Force (EUNAVFOR) Somalia ATALANTA operation fights piracy. The EU is also helping to train Somalia’s own security forces. Around 1 800 Somali soldiers have been trained by the EU Training Mission (EUTM) in Uganda to join AMISOM, the AU peacekeeping force in Somalia which is largely funded by the EU. The EU is also the largest humanitarian donor in the Horn of Africa, having provided over €700 million in assistance since the beginning of this year. The new EU Special Representative for the Horn of Africa will play an important role in addressing the many complex issues of the region.

In July 2011, High Representative/Vice President Ashton attended the independence ceremony of the new state of South Sudan, born of the 2005 Sudanese Comprehensive Peace Agreement (CPA). A comprehensive approach to Sudan and South Sudan to underpin the development and peaceful co-existence of two viable, stable and prosperous states has since been followed by the EU. In cooperation with the AU, UN and international partners, the Special Representative for Sudan and South Sudan is at the fore in the EU’s efforts to support the resolution of outstanding issues between both states.

At the request of the European Council, the EU is engaging in a process to formulate a more effective EU policy towards its main strategic partners. This has contributed to more focused and substantive Summits and other high-level meetings with these countries, as well as more active co-operation in other areas of mutual concern.

In Asia, support to the accelerating Association of Southeast Asian Nations (ASEAN) integration process continued in the form of capacity building for the ASEAN Secretariat and engaging with the ASEAN Inter-Governmental Commission on Human Rights (AICHR). The transition in Myanmar was monitored very closely, with the EU beginning to deliver a response in the country.

Throughout 2011, the EU continued to take the lead in combating dangerous climate change and pushing for progress in international climate negotiations. It delivered on its commitments to provide fast start finance and stepped up its climate diplomacy activities ahead of the UN climate conference held in Durban, South Africa in November. The Durban Platform for Enhanced Action reflects European proposals for a detailed roadmap with a global comprehensive climate agreement to be negotiated by 2015 and to come into force by 2020 at the latest. Under the new agreement, to replace the current architecture based on the Kyoto Protocol, all countries would take on legally binding commitments to reduce or limit emissions of greenhouse gases with the effect of collectively containing global warming to a maximum of 2°C. Durban also brought into effect other earlier commitments on a Green Climate Fund and the setting up of new bodies and instruments on adaptation and technology transfer. At Durban, the EU’s call for such ambitious action was joined by more than 100 countries particularly vulnerable to climate impacts.

2 Leading the way in development policy 2.1 A more strategic approach: the Agenda for Change & the reform of budget support

Two major political documents which aim to update EU development policy were published on 13 October 2011, following months of intense consultation with stakeholders. They build on the common understanding of EU development policy defined in the European Consensus on Development[5]. The Communication, "Increasing the impact of EU development policy: an Agenda for Change"[6], aims to significantly increase the impact and effectiveness of EU development policy, while the second document, "The future approach to EU budget support to third countries"[7] is to strengthen the use of budget support.

Why revisit European Union development policy?

The EU has already done a great deal to help reduce poverty, but a lot remains to be done. Recent changes, both within and outside the EU, mean that there is a new development context. The Arab Spring reaffirmed the importance of democracy and good governance for development to occur, and the need for societies to offer a future to their young people. In addition, some former developing countries have become major international players and are now donors in their own right. The entry into force of the Lisbon Treaty has also brought about institutional changes in Europe. Last but not least, the world still has to cope with economic crisis which is putting donors' respective aid budgets under pressure.

Agenda for change: What's new?

The "Agenda for Change" foresees a two-pillared approach. Through the lessons learnt from recent events in North Africa, human rights, democracy and good governance trends will be given greater weight. The second pillar will stimulate inclusive and sustainable growth to reduce long-term poverty by: promoting decent work, social protection floors, social inclusion and human development; supporting business and regional integration and assisting sustainable agriculture, energy supply and access to energy. EU grant aid will go to countries where it is most needed and can have the most impact. This differentiated approach means that other forms of cooperation will be considered for other countries. The new approach will also favour other issues:

· Donor coordination will be improved and duplication reduced, leading to more focussed EU aid which will be targeted to sectors with a high impact on poverty reduction such as governance, quality employment and social protection, health, energy or agriculture. In future, the EU will allocate resources under individual programmes drawn up with countries to no more than three sectors[8].

· EU development aid will use more innovative financial tools, for example, the blending of grants and loans and including private sector involvement.

· Better coordination with Member States is foreseen. The Commission is calling for the introduction of joint EU and Member State responses based on partner countries' own strategies. It also foresees the setting up of a common EU results framework.

· Reaffirmation of the crucial role of policy coherence in the interests of development.

The Communication on budget support

Budget support will continue to be an important EU development cooperation instrument in line with the modernisation of development cooperation policy outlined in the “Agenda for Change”. It will also be considered as an integral part of the toolbox for pre-accession assistance, among other forms of financing. The EU will provide budget support as a vector for change to address the following development challenges and objectives:

· Promoting human rights and democratic values;

· Improving financial management, macroeconomic stability and the fight against corruption and fraud,

· Promoting good governance and inclusive growth for human development;

· Promoting sector reforms and improving sector service delivery, with particular focus on pro-poor, gender and children's issues;

· State-building in fragile states and addressing development challenges of SIDS and OCTs;

· Improving domestic revenue mobilisation and reducing dependency on aid.

“Good governance and development contracts” (general budget support) will be provided when there is trust and confidence that aid will be spent on pursuing the fundamental values of human rights, democracy and the rule of law. "Sector reform contracts" are also foreseen to promote reforms, support sector policies, and improve service delivery to populations. In post-conflict and fragile situations, the EU will also use, on a case-by-case basis, “state-building contracts” to help partner countries to ensure vital state functions, to deliver basic social services and to promote governance, human rights and democracy.

Existing eligibility criteria and their assessment will be strengthened, as will the EU’s approach to assessing and managing risks. The EU will also put more emphasis on accountability and transparency, with a new eligibility criterion on budget transparency and oversight. The Commission will also look carefully at efforts made to strengthen parliaments and civil society, and will publish relevant information on budget support agreements and performance reviews. There will also be a stronger EU coordinated approach to maximise the impact of support.

The way forward

All future EU action will have to be compatible with this renewed policy framework. It has already been integrated into the Commission's proposals for post-2013 financial instruments, particularly the Development Cooperation Instrument (DCI).

2.2 Making a difference: an increased budget and new instruments

In June, the Commission proposed a new Multiannual Financial Framework (MFF) for the period 2014-2020. The Communication, “A Budget for Europe 2020”[9], highlighted the areas where the EU could play an important role in an increasingly globalised world. Based on the Europe 2020 strategy and the new institutional architecture of the Lisbon Treaty, it defines broad budgetary orientations, including the future architecture and funding of external action financial instruments. The EU remains committed to pursuing the MDGs and to achieving the target of Official Development Assistance (ODA) of 0.7% of Gross National Income (GNI) by 2015. To help achieve these targets, the Commission suggested stepping up financing for external action within the budget from €56.8 billion to €70 billion and for the European Development Fund (EDF), from currently €23 billion for six years to €30.3 billion for seven years (in 2011 prices).

The objective of the new MFF is to enable the EU to speak with one voice and meet its development and enlargement objectives: promoting democracy, peace, solidarity, stability and prosperity and poverty reduction – both at global level and in its immediate neighbourhood – and also helps safeguard global public goods.

On 7 December, the Commission adopted a package of proposals for Regulations and Decisions covering nine geographic and thematic external action instruments[10]. These new proposals have been designed to increase both the efficiency and impact of external spending. They aim to reduce overlaps and gaps between the instruments, increase their flexibility and responsiveness, reduce the dispersion of activities and promote aid effectiveness.

The proposals revolve around three main axes.

The first is cooperation with beneficiary and partner countries in line with the Treaty-based policy priorities related to:

· Enlargement, with the Instrument for Pre-accession Assistance (IPA II) as the financial pillar of the enlargement strategy;

· the neighbourhood, with the European Neighbourhood Instrument (ENI) used to support deeper political cooperation, closer economic integration and an effective transition to democracy in the EU’s neighbouring countries;

· the promotion of EU and mutual interests worldwide, with a focus on industrialised countries, emerging economies and countries where the EU has significant interests will be supported by the new Partnership Instrument;

· development cooperation with the primary objective of combating poverty, with the Development and Copperation Instrument (DCI) and using the European Development Fund (EDF) for cooperation with African, Caribbean and Pacific (ACP) countries.

· the EU-Greenland Partnership, which will be strengthened.

The second axis is the promotion of democracy and human rights globally through the European Instrument for Democracy and Human Rights. The proposal would boost it by providing more EU support for the development of thriving civil societies, supporting their specific role as key actors for positive change in support of human rights and democracy.

The third axis is crisis prevention and management through the “Instrument for Stability” where an increase is proposed to respond to current global challenges. The “Instrument for Nuclear Safety Cooperation” will continue to aim to promote high levels of nuclear safety.

Policy changes during 2011 have meant specific improvements in the following ways, among others:

· there will be flexibility in the programming process for faster decision-making in all instruments, particularly in cases of crisis, post-crisis and fragility. For some of the geographic programmes (DCI, ENI), the EU may synchronise its programming cycle to its partners' cycles and replace specific Commission-adopted development strategy papers with other existing strategy documents, or adopt simplified programming documents based on jointly agreed objectives with partner countries or through joint programming with EU Member States;

· creation of incentive-based approaches, in particular as a performance reward for progress in reforms along the EU accession path, under the IPA II and under the ENI “more for more” policy to better support democratic transition in the EU’s Neighbourhood;

· a more strategic approach based on the priorities of the enlargement agenda for the Instrument for Pre-Accession Assistance;

· establishment under the DCI of a Pan-African programme enabling the coherent implementation of the Joint Africa-Europe Strategy;

· increased flexibility with a single Global Public Goods programme under the same instrument increasing the EU's capacity to respond to global challenges.

The Commission has also explored ways of making the differentiation of aid between partner countries concrete, allocating a greater proportion of funds where aid can achieve the biggest changes for people. With regard to the DCI, it is proposed that 19 wealthier countries no longer benefit from bilateral development assistance. However, these countries will continue to have access to regional and thematic cooperation.

Innovative tools such as the blending of grants and loans and the inclusion of the private sector are also part of the updated policy. As part of of the revision of EIB's external mandate, the Commission is studying ways to optimise the functioning of mechanisms for blending in the external regions.

With this new setup the EU is much better placed to promote and defend its core values and stand by its international commitments to its neighbours, particularly those undergoing transition and on a path to joining the Union, as well as the poorest and most vulnerable globally.

3 Keeping long-term promises

3.1 Progress in achieving the MDGs

Following the 2010 UN MDG Summit, the Commission took a step to reprioritise its activities to increase the impact of its development cooperation on achieving the MDGs. The “Agenda for Change”[11] is intended to better assist partner countries in attaining the MDGs. This section gives information on the Commission’s activities in 2011 to help countries achieve MDG targets. More details can be found in Chapter 3.

In late 2011, the first component of the EU's €1 billion MDG initiative, launched at the New York Summit in September 2010, was adopted. It focuses on countries that are most off-track in their MDG targets.

Eradication of extreme poverty and hunger

Progress towards achieving MDG1 on the eradication of extreme poverty and hunger continues to be hampered by the global economic crisis and deterioration of the labour market, the effects of climate change, price volatility, gender inequality, lack of access to land, poor nutrition and situations of protracted crisis, namely the 2011 famine in the Horn of Africa.

The “Agenda for Change” places quality employment, social protection, sustainable agriculture, food security and nutrition high on the EU's development cooperation agenda. Throughout 2011, the EU continued to work closely on food security and nutrition with a number of actors. For example, on 27 June 2011, a new strategic framework of cooperation was signed in Rome by the Commission, the UN Food and Agriculture Organisation (FAO), the International Fund for Agriculture Development (IFAD) and the World Food Programme (WFP). This will increase the capacity of the four partners to deliver effective, coordinated, timely and sustainable support to food security and nutrition.

By the end of 2011, the €1 billion EU Food Facility had reached its target. In three years, it has funded 134 projects implemented by NGOs and EU Member State agencies, 69 projects by international organisations, three regional projects and ten budget support measures (see chapter 3).

In the light of the global financial and economic crisis, decent employment and social protection are increasingly considered as crucial to the achievement of MDG1. Social protection, employment and decent work are also key themes of the “Agenda for Change” which aims to bring the benefits of growth to more people. Sustainability and inclusiveness in economic development through employment, skills development, social inclusion and social protection, particularly for young people, were chosen as priorities within the support for partnership, reform and inclusive growth programme (SPRING) for Southern Mediterranean countries, approved at the end of 2011.

Education

In line with its 2010 policy for “More and better education for all in developing countries”, the EU supports the overall balanced development of education systems in partner countries, with particular attention paid to equal access to education and improving the quality of education. In the current programming period, the EU’s support for education in 48 countries amounts to around €4 billion (see chapter 3).

Gender equality

The EU's thematic programme, “Investing in People”, also funded two major gender equality initiatives during 2011; one on women's social and economic empowerment, and a new UN programme, “Increasing accountability for financing to gender equality", launched with EU support. Both initiatives aim to contribute to the achievement of MDG3 on gender equality by supporting women's leadership in economic and social spheres and by mobilising resources to implement partner countries' commitments on gender equality (see chapter 3).

Health

The Commission’s support to the health sector covers three health-related MDGs and other sectors having an impact on child morbidity and mortality, such as nutrition, water and sanitation.

Steady progress is being made in reducing child deaths. Globally, the mortality rate for children under five has declined by 35%, from 88 deaths per 1 000 live births in 1990 to 57 in 2010. All regions, except Sub-Saharan Africa, Caucasus and Central Asia, Southern Asia and Oceania, have seen reductions of at least 50%. Despite population growth, the number of deaths in children under five worldwide dropped from 12 million in 1990 to 7.6 million in 2010, or 12 000 fewer children dying each day. The rate of decline in under-five mortality rates has also accelerated from 1.9% a year, 1990–2000 to 2.5% a year, 2000–2010.

The EU has contributed to achievement of the health MDGs by improving the overall functioning of health systems of partner countries, of critical importance for the population to access sustainable services[12]. It supports projects to eradicate poverty-related diseases and improve health such as the Global Alliance on Vaccines and Immunisation (MDG4) and the Global Fund to fight against HIV/AIDS, Tuberculosis and Malaria (MDG6).

In addition to its ongoing support to the health sector, 11 country proposals were selected in 2011 for additional aid totalling €280.4 million to accelerate the MDGs for child health and maternal health (see chapter 3).

Support to fight HIV/AIDS is mostly channelled through the Global Fund to fight HIV/AIDS, tuberculosis and malaria[13]. The EU has disbursed more than €922 million through this instrument so far. This has been complemented by other specific support - totalling €250 million over the last decade to social organisations at country level to help them run their HIV control activities.

Pandemic preparedness and response - emerging diseases

The EU is the largest contributor (contributing more than 75% of the total of approximately $125 million) to the multi-donor trust fund Avian and Human Influenza Facility (AHIF), administered by the World Bank. AHIF funds national plans worldwide involving human and animal health services, aiming at preventing and if needed mitigating the effects of serious infectious diseases and pandemics. In 2011, actions financed by AHIF started taking into account the One Health approach, which addresses health risks originating at the interface between humans, animals and their various environments.

Environmental sustainability

The Commission pursued many policies and projects in 2011 to promote environmental issues for the achievement of MDG 7: the Global Climate Change Alliance (GCCA), the EU forest law enforcement, governance and trade (FLEGT) Action Plan and the ACP-EU Water Facility. The GCCA has provided €210 million for 30 Least Developed Countries (LDCs) and Small Island Developing States (SIDs), which are particularly vulnerable to climate change. FLEGT agreements strengthen forest governance in timber producing countries at the same time as combatting illegal logging and associated trade. FLEGT also supports work on climate change mitigation and reduced emissions from degradation and deforestation (REDD+).

Energy-generating income in Malawi The MDGs will not be reached without a steady increase in access to modern energy. The Commission is improving access to modern energy to help achieve the MDGs. Women and children in Msamala, a rural district in Malawi, now collect 30% less firewood thanks to energy-efficient stoves introduced as part of a sustainable energy project. Funded under the ACP-EU Energy Facility, the additional installation of solar photovoltaic systems has increased learning hours for 8860 students. The revenues of 34 business groups have also gone up thanks to the project's spin-off: stove production, bee-keeping and mushroom growing. These activities have in turn increased household investment in livestock and have enabled food to be bought to supplement harvests.

Water projects in pipeline

Thirty-two projects, totalling €23 million, to improve water governance, resource management and sustainable development of water infrastructure in ACP states were selected for funding in 2011. They are funded out of the 10th EDF ACP-EU Water Facility (€212 million), set up to provide water and basic sanitation to the poor and improve water resource management in ACP countries. Access to sanitation in urban and peri-urban areas – one of the most off-track MDG indicators globally – has been targeted in a new set of calls for proposals. The creation of a pool funding mechanism will also provide private sector and loan financing.

The EU supported the newly-founded International Renewable Energy Agency (IRENA) which promotes the use of all forms of renewable energies in developing countries. IRENA notably emphasises the key role played by renewable energies in supporting sustainable growth and alleviating energy poverty whilst reducing green-house gas emissions and enhancing energy security.

Trailblazing renewable energy in the Southern Mediterranean

The three-year EU-funded, “Paving the Way for the Mediterranean Solar Plan” project is promoting the greater use of renewable energy across Southern Mediterranean countries. It has set up a platform for dialogue to explore the possibilities of a harmonised regulatory framework for investments in renewable energy across the nine countries involved. A benchmarking report has been issued for each beneficiary country on the integration of renewable energy into respective electricity systems, along with studies on the infrastructure requirements for the integration of renewable energy in the countries’ electricity systems[14].

For Commission activities in relation to MDG8 on developing a global partnership for development, see Chapter 1 section 4 more, better and more effective aid.

3.2 Focussing on poverty

The Lisbon Treaty puts fighting poverty at the core of European external and development policies. The EU has already done much to help reduce poverty and in particular to support the achievements of the MDGs. However, the global economic and financial crisis, exacerbated by the food and energy crisis have seriously challenged progress in poverty reduction. According to the UNDP and the World Bank (WB), it is largely Asia’s sustained growth that is putting the world on track to meet the poverty reduction target of halving between 1990 and 2015 the proportion of people whose income is less than $1 dollar a day. However, only 49 of 87 countries are on track to achieve MDG poverty alleviation targets.

An established positive correlation exists between economic growth, reforms, political stability/good governance, and effective poverty alleviation strate­gies. Current rapid growth in China, India, Brazil, and other emerging economies has been impressive. Yet, new challenges need to be addressed such as effective social protection for all including the informal sector, ensuring decent working conditions, environmental degradation, climate change, food security and energy efficiency whilst ensuring that economic growth reaches everyone, particularly those most in need.

Looking ahead, the “Agenda for Change” will focus EU support on those partner countries where it can have the greatest poverty reduction impact. Given that the 2015 target for achieving the MDGs is close, developed and developing countries will need to act more quickly to reach the MDGs. The new policy should ensure that the development policy of the EU and its Member States has the greatest possible impact in attaining its objectives. At a time when the credibility of aid is under pressure, demonstrating this increased impact is more important than ever for maintaining political and public support for development assistance.

In 2011, the Fourth United Nations Conference on the Least Developed Countries (LDC IV) took place in Istanbul. The new 10-year Programme of Action reaffirms the global commitment to address the special needs of the LDCs, including the aim of enabling half the number of LDCs to meet the criteria for graduation by 2020. The UN General Assembly decided in December 2011 to establish an ad hoc Working Group to study and strengthen the graduation and smooth transition process. The EU will contribute actively to this follow-up work. Other main achievements and deliverables include a strong commitment from donor countries to review their ODA commitments in 2015; and a high-level mid-term Review in 2015 as a follow-up regarding commitments by donor countries and emerging economies.

Progress in reducing poverty

All EU partners in Eastern Europe and the Caucasus covered by the European Neighbourhood and Partnership Instrument (ENPI) are now classified as Middle–Income Countries (MICs). While poverty in the region has been reduced, social inequality and exclusion are still increasing at country and regional levels. Regional needs are significant. Although the Republic of Moldova[15] has been reclassified as a low–middle income country, it remains Europe’s poorest country.

Mediterranean countries covered by the ENPI also have to cope with poverty (all of them, apart from Israel, belong to the MIC category). Due to the existence of informal, as well as formal redistributive channels, more budgetary and fiscal discipline is required. The Arab Spring offers an opportunity for the southern Neighbourhood to carry out reforms needed for better governance and inclusive and sustainable growth for progress on poverty reduction.

EU assistance through the ENPI hence focuses on these issues. The most difficult social situation remains that of the occupied Palestinian territory where, despite humanitarian assistance, more than 30 % of the Palestinian population still live in poverty.

Sub-Saharan Africa has managed to cope with the crisis better than expected and its growth rates are above pre-crisis levels. As a result, many African countries have made progress towards the MDGs. For example, four countries: Cape Verde, Ethiopia, Ghana and Malawi are projected to achieve most of the MDGs, if not by 2015, then soon thereafter. However, serious challenges remain. About half of the population still lives on $1.25 a day, and development progress is neither reaching those most in need nor vulnerable groups. Weak governance is another challenge.

Recovery from the crisis is firmly on track in Asia and the Pacific with real GDP growth registered. There has been an impressive reduction of absolute poverty in Asia, led by China, India and most countries of Southeast Asia. However, poverty is still widespread in India and other countries: Afghanistan, Bangladesh, Cambodia, Laos, Myanmar/Burma, Nepal, North Korea, Pakistan, Papua New Guinea and Timor–Leste. Economic growth has led to considerable income and regional disparities, including inequalities between rural and urban populations. There is wide variation in levels of development in Southeast Asian MICs. In these areas, EU cooperation through the DCI focuses on capacity building, social infrastructures, energy efficiency, land management, climate change, food security, environmental protection and trade integration, all of which have spill–over effects on poverty alleviation strategies at regional and country level.

Central Asian transition countries saw growth pick up in 2010 after the crisis caused weaker markets for commodity exports and lost remittances from citizens working abroad. But overall, in the region growth rates fell, poverty levels rose and the urban/rural divide widened. To help meet these challenges, EU support focuses on raising living standards, developing the social sector and providing a social safety net. It also seeks to improve the rule of law and public governance.

Progress in economic and social reform during the 1990s and early 2000s ensured prolonged economic growth for Latin America throughout which poverty levels fell significantly. For example, more than 50 million people were lifted out of moderate poverty between 2002 and 2008. However, an aver­age of 40% of the Latin American population still lives in poverty and income inequality remains. Haiti remains the poorest country in the Caribbean and its reconstruction and poverty challenges are being supported through a revised country strategy which includes joint-programming with EU Member States. For Latin America, EU programmes financed out of the DCI support the fight against poverty by promoting social cohesion and backing regional integration. The EU policy dialogue has also been broadened to include economic competitiveness, trade, migration, environment/energy/climate change, governance, and sustain­able development. This is particularly the case for Argentina, Brazil, Chile, Mexico and Uruguay, among the upper MICs.

3.3 Strengthening human rights and good governance

In 2011, the EU used its range of external instruments and policies to promote and protect human rights and good governance and to combat gender inequality. The “Agenda for Change” and budget support communications stress human rights, democracy and good governance as a main focus of EU development cooperation with third countries for the period 2014-2020. Further, the proposals presented in December on the EU financial instruments, including the European Instrument for Democracy and Human Rights strengthen the promotion of democracy and human rights and the stepping up of support to civil society worldwide.

The High Representative and the Commission presented a joint communication to the European Parliament and to the Council on “Human rights and democracy at the heart of EU external action – towards a more effective approach”[16] in December. While reaffirming the EU's position on human rights, it aims to tailor the EU’s approach to promoting human rights to local conditions. The vision is of a cohesive approach across EU external policies. The communication sets out how to strengthen EU partnerships when implementing the new approach and puts forward ways to harness the EU's collective weight. The EU also started developing human rights strategies for almost 160 countries worldwide. They are shaped to respond to the particular needs of individual countries to achieve stronger positive impacts on the ground. They establish country-specific priorities and objectives, which can be integrated in all relevant EU external policies such as development, trade or security. In 2011, over 130 strategies were finalised, having taken into account the views of civil society.

The EU is also active in multilateral fora at the UN, the Council of Europe (CoE) and the Organisation for Security and Co-operation in Europe (OSCE) in setting human rights standards and promoting human rights as universal. In the Human Rights Council (HRC), the EU successfully called for special sessions on Libya and Syria to condemn human rights violations and establish oversight to monitor the situation and ensure accountability.

The EU also put Belarus on the HRC’s agenda. It ran initiatives such as the resolutions on Democratic People's Republic of Korea (DPRK) and Burma/Myanmar and resolutions on the protection of freedom of religion or belief and children’s rights in the UN’s General Assembly. Bilaterally, it held over 40 human rights dialogues with third countries which gave the EU many opportunities to address specific human rights concerns. Numerous EU statements also addressed country specific and thematic human rights issues.

Further, the EU deployed ten Election Observation Missions (EOM) and seven election expert missions in 2011. Five EU EOMs accompanied and gave additional credibility to major developments, most notably the regime change in Tunisia, the creation of a new country in South Sudan, the transition from a military to a civilian regime in Niger, and the long-awaited shift to the political opposition in Peru and Zambia. Three EOMs accompanied relatively smooth re-elections of incumbent authorities in Nigeria, Chad and Uganda, while two others were led in challenging electoral contexts in Nicaragua and the Democratic Republic of Congo (DRC).

During 2011, work continued on the implementation of the Council conclusions of November 2009 and December 2010 on democracy support with the confirmation of pilot countries to explore new ways of working. They involve the following countries: Benin, Ghana, Bolivia, Lebanon, Mongolia, Kyrgyzstan, Indonesia, Maldives, and Solomon Islands. Commitments in the May 2011 joint communication issued by the High Representative and the Commission on the Neighbourhood, also further strengthened work in the sphere of good governance and democratisation.

3.4 Mainstreaming of cross–cutting issues

The EU supports a number of sectors in developing nations in their own right, such as gender or human rights (see previous section). In having an impact a number of other sectors, such assistance helps to achieve wider development goals, including the MDGs.

Gender

2011 was the first year of implementation year of the EU Plan of Action on Gender Equality and Women's Empowerment in Development 2010-2015[17]. This aims to strengthen cohesion and coordination and improve the EU's work on gender in external action for more impact on the ground. The plan contains commitments to be implemented by the Commission, the EEAS and the Member States. It foresees an accountability system where actors must report annually to the Council on progress in implementing the indicators for which they are responsible.

In November, the first annual progress report was submitted to the European Council. The report represents the first comprehensive stock-taking exercise of what the EU is doing to mainstream gender equality in development cooperation and in policy/political dialogue in partner countries. It provides a valuable baseline against which to assess future progress, compare trends, and identify good examples and the challenges ahead. The reporting process has also given the opportunity to improve internal communication and strengthen commitments on gender issues between the Commission, EU Delegations, the EEAS and Member States.

The replies registered progress and emerging good practices. It was found that EU Delegations play an active part in gender coordination groups/mechanisms aimed at mainstreaming gender equality in development cooperation. Most Delegations also use thematic local calls for proposals to support gender-related projects, including those aimed at fighting violence and discrimination against women and girls. Cooperation with UN Women has been strengthened, including the preparation of a memorandum of understanding for a strategic partnership with the EU, as well as EU support to a number of UN gender equality programmes. The Commission has increased EU budget allocations for gender by €10 million through the thematic programme, Investing in People, and in November 2011 launched a global call for proposals on women's social and economic empowerment. Capacity-building for EU staff on gender equality has continued through online courses, thematic training, and ongoing support to gender focal persons in EU Delegations.

Lessons learned include the need to strengthen the capacity of EU staff to mainstream gender equality and empowerment of women in the different sectors and modalities of EU bilateral cooperation (including budget support programmes). This would lead to a more focused and informed gender policy dialogue with its partners in government and civil society. There is also a need to ensure broader impact and the consolidation of institutional memory on gender issues. For this, capacity building on gender should not represent a self-standing activity, but be integrated into core EU training. To accomplish these goals, in December 2011 the Commission launched a new contract with external gender advisory services which will be responsible for capacity building and technical assistance to EU staff on gender issues.

Environment and Climate Change

In 2011, the Commission and the Member States continued work on a strategy to integrate environment and climate in development cooperation. The aim is to produce an ambitious EU-wide strategy, to be adopted by the European Council in 2012.

The Commission revised parts of the guidelines on the integration of environment and climate change in development cooperation, in particular with regard to climate risk assessments of projects. A study on environmental integration indicators and a review of the Commission’s experience with using the strategic environmental assessment tool were completed. The conclusions of these reviews will be incorporated in the Commission's work in 2012.

Staff training and information seminars on mainstreaming environment and climate change continued. A one-day course on 'greening development' was introduced, in recognition of the rising importance of the 'green economy' concept. In the context of the Global Climate Change Alliance (GCCA), the Commission has trained over 200 senior officials. The training targeted ministries of finance, planning and environment in GCCA partner countries in an effort to catalyse mainstreaming, with a strong focus on reflecting climate issues in the budgeting process.

Utilisation of specific 'climate change windows' in investment facilities continued, allowing more informed investments in projects taking due consideration of climate change, facilitating the tracking of these investments and leveraging loans, particularly for renewable energy and energy efficiency projects.

Gearing up to green economy

In the run-up to the Rio+20 conference and through specific projects, the EU has been promoting the emerging international concept of a green economy. This aims to engender improved human well-being and social equity, while significantly reducing environmental risks and ecological scarcities. At the same time, it seeks to promote sustainable development and create employment. The EU’s approach also emphasises private sector-led development and growth with a focus on agriculture and energy. In 2011, the EU supported the green economy by promoting activities geared to smart and inclusive growth in the following ways:

- SWITCH Asia targets sustainable production and consumption by introducing life-cycle thinking, eco-design, eco-innovation and product environmental foot print thinking. The project both encourages producers and consumers to switch to greener activities and strengthens environmental policy frameworks and greener governance.

- The Green Economy and Social and Environmental Entrepreneurship Development in Africa programme is working with both the private and public sectors to put in place policies to stimulate greener investments and support private entrepreneurs by means of capacity building, networking and provision of tools.

- The Energy Facility and the Environment and Natural Resources Thematic Programme targets renewable energy and increased energy efficiency.

- Support to climate change mitigation programmes.

- Training sessions on mainstreaming environment and climate change policies.

Anti–corruption

As corruption is a sign of failure of broader governance systems, it should be treated as part of the overall support to democratic governance rather than in isolation. To fight corruption effectively, communication and the flow of information to operational staff, as well as close cooperation with other donors and stake-holders, are all necessary. A set of initiatives is being implemented to develop operational tools and support for field work. The Commission is part of a joint initiative with Transparency International, the UNDP and other stakeholders to make more efficient use of existing corruption assessment and measurement tools, through the development of a web-based gateway.

The Commission is a party to a memorandum of understanding with other donors and the International Organisation of Supreme Audit Institutions to develop capacities of Supreme Audit Institutions in aid recipient countries. Several working relationships with civil society organisations are also in place for supporting citizens in the daily challenges posed by corruption, notably through legal advice and seeking to achieve systemic changes. The Commission also continues to support anti-corruption efforts in third countries through specific interventions in key governance areas. They include: justice, security, democratisation, non-state actors, public sector reform and decentralisation. It also supports the mainstreaming of governance in other areas of cooperation such as health, water, education, transport and infrastructure, so as to ensure that all projects and programmes – at every stage of their development – analyse and address governance challenges.

Culture

No effective aid programme is possible without proper consideration of the cultural dimension. Both the international seminar in Gerona, Spain in May 2010 and the UN MDG Summit of September 2010 stressed the cross–cutting contribution of culture to social and economic development.

Cooperation with partners in different regions, notably with the European Neighbourhood and ACP countries, provides support to the cultural and creative sector in the framework of geographic (such as ENPI, EDF) and thematic (Investing in people) instruments, whose implementation continued in 2011.

In parallel, a roadmap for strengthened cultural cooperation was agreed between the EU and the African Union in May 2011 under the democratic governance and human rights priority. The European Parliament also passed a resolution on 12 May 2011 on the cultural dimensions of the EU’s external actions.

2011 saw further developments in the implementation of the Work Plan for culture 2011-2014 as regards the priority of culture in external relations. As part of a more strategic approach and cooperation in this area, the first informal meetings between senior officials from the Ministries of Foreign Affairs and Culture of EU Member States took place. In light of these meetings, the Commission proposed to set up an expert group on culture and external relations in 2012. This group will have a specific focus on cultural relations with China in the framework of EU-China relations, notably the 2012 Euro-China Year of Intercultural Dialogue and the launch of the Third Pillar of the EU-China strategic partnership on people-to-people contacts.

In its capacity as a Party to the UNESCO Convention on the protection and promotion of the diversity of cultural expressions, the Commission set up an expert facility on cultural governance, run by UNESCO for the period 2010-2012 and providing €1 billion, with the aim of strengthening the system of governance for culture in developing countries through technical assistance based on the needs and priorities of the beneficiary countries.

3.5 Cooperation with non-state actors and local authorities

2011 saw the conclusion of the first phase of the Structured Dialogue, a multi-stakeholder consultation lasting almost two years.

Designed to improve mutual knowledge, share lessons learnt and enable a climate of confidence and trust among various stakeholders engaged in EU development cooperation, the initiative was finalised in May 2011. The dialogue aimed to improve the effectiveness of the partnership between the EU, civil society and local authorities, in line with the aid and development effectiveness agenda.

The Structured Dialogue brought together 700 participants from the EU and partner countries (over 60 nations) including members of civil society (development, relief/humanitarian and human rights NGOs, trade unions, grant making and political foundations, cooperatives, and chambers of commerce, youth organizations, etc.) and decentralised local and regional authorities with representatives of EU institutions: the European Parliament, EU Member States and the European Commission (representing both headquarters and EU Delegations). Debates included the promotion of an enabling environment for civil society and local authorities, multi-stakeholder dialogues, partnerships and complementarities between actors, the territorial approach and its articulation at the local level; finally, how ownership and alignment principles relate to Civil Society and Local Authorities. The Structured Dialogue contributed to building consensus and trust by developing a shared vision of the roles and added value of organised civil society and local authorities. The final conference in Budapest, co-hosted by the Hungarian Presidency of the EU and the EU Commissioner for Development, prompted the ”Joint Declaration of Budapest”, a series of commitments and recommendations addressed to each category of actor (EU, civil society, local authorities and partner countries)[18]. All actors adhering to the Declaration of Budapest committed to provide follow up. On its side, the Commission will ensure the continuation of the Structured Dialogue at the national level, and at the highest policy level.

The Structured Dialogue results contributed substantially to the EU common position ahead of the 4th High Level Forum on Aid Effectiveness (Busan 2011). They were also reflected in the new development agenda of the EU (Agenda for Change). A Communication on EU engagement with civil society organisations, to be tabled in 2012, will consolidate these new aspects and reflections. In parallel, new operational guidelines on "how to engage more strategically with civil Society" are currently elaborated for the benefit of EU Delegations in third countries.

Another example of the Commission’s commitment to implementing the recommendations of the Structured Dialogue was also seen in the mapping study on regional, continental and global networks of civil society organisations and local authorities. The study will contribute to the achievement of the Commission’s objective to promote and support regular, structured and inclusive multi-stakeholder dialogues. Funding will allow civil society organisations and local authorities, particularly their platforms and representative organisations, to effectively participate in future dialogues.

The Commission has also moved forward with its cooperation with local authorities, defined in a 2008 communication. The second “Assises of decentralised cooperation” took place in March 2011. It permitted representatives of EU local authorities and of developing countries, to conduct a political dialogue on development cooperation with European institutions. The Commission has thus strengthened its strategic relation with local authorities at political level in parallel to continuing its co-financing of projects proposed by these authorities.

2011 was also a fruitful year for the Development Education and Awareness Raising in Europe (DEAR) programme. Following the completion of the DEAR study process in 2010, the Commission started implementing its recommendations, and set DEAR’s future priorities. There was stronger emphasis on ensuring complementarity and close cooperation with Member States, particularly on aspects of the programme related to formal education. All Commission-funded development education projects with activities in the formal education sector (inclusion of development education in teacher training, curriculum development, lessons plans, etc.) will complement development education strategies, or orientations in the Member States where the project takes place.

The European dimension of the DEAR programme was also strengthened. Priority was given to projects with wide and co-ordinated European coverage. These priorities were reflected in two separate calls for proposals at the end of the year for non-state actors and local authorities.

Capacity development and capitalisation of results were also an area of renewed focus this year, with the organisation of an innovative workshop for beneficiaries of new grants. The Commission also set the bases for future work on capitalisation and communication of good practice in the field of development education and awareness-raising.

The Commission also stepped up its collaboration with key actors in the field, culminating in the hosting of a GENE (Global Education Network Europe) round table in Brussels – a network of Member States active in global education. The participation of Commissioner Piebalgs in the public hearing on development education, organised by the European Parliament development committee in August, confirmed the Commission's strong involvement in DEAR in Europe.

4 More, better and more effective aid

4.1 Aid effectiveness and financing for development

Mobilising more development financing from all available sources is necessary – although not sufficient – to fight poverty and foster development. Founded on the global “Financing for Development” agenda, the EU and its Member States set themselves common quantitative and qualitative targets against which progress can be measured. The Council invited the Commission to monitor and report progress annually. Part of the agreement was to collectively provide 0.56% of the combined GNI as Official Development Assistance (ODA) by 2010 with a view to spending 0.7% ODA/GNI in 2015.

In 2011, the Commission presented its 9th annual report, 'Enhancing EU Accountability on Financing for Development'[19]. It showed that, in general, the EU as a whole has kept up progress in delivering on its various financing for development pledges, although the situation varies greatly between issues and between Member States. On ODA, the EU and its Member States spent a historical high of €53.5 billion for aid, corresponding to 0.44% of the combined GNI[20], but fell short of the 2010 intermediate target by around €15 billion. The EU collectively accounted for 58% of net ODA to developing countries in 2010 from all members of the Development Assistance Committee (DAC) of the Organisation for Economic Cooperation and Development (OECD) and for 65% of the global €26 billion ODA increase from 2004-2010.

In 2011, the EU continued its work on meeting commitments to implement the internationally-agreed aid effectiveness agenda at several levels. At an international level, the EU continued to support and play a key role in the Working Party on Aid Effectiveness hosted by the OECD’s DAC, focusing mainly on developing its policies for the 4th High Level Forum on Aid Effectiveness (Busan, 29 November - 1 December 2011) – the key development policy event in 2011. The EU played a leading role in the preparations of the Forum.

In Busan, China, India and Brazil signed up for the first time to a document defining common goals and shared principles of a development partnership. The Busan Forum also set up a new inclusive global governance structure – the Global Partnership for Effective Development Cooperation. It also marked a conceptual shift from aid effectiveness to aid and development effectiveness, meaning a clearer emphasis on results and strengthening the role of aid as a catalyst to achieve development results.

The common EU priorities are largely reflected in the Busan outcome document[21]: a focus on results and accountability, ownership, transparency and reduced fragmentation and on country level implementation while streamlining the global governance structure. The EU will participate in further supporting the establishment and strengthening of partner country-led frameworks for accountability and results. These frameworks are to be tailored to partner country priorities and local contexts.

At the global level, the working arrangements of the Global Partnership, as well as global monitoring and indicators, will be decided upon by June 2012 by the Working Party on Aid Effectiveness. The EU will actively participate in this process to ensure that the working arrangements of the partnership will be light and that the partnership will focus on providing support for country level implementation.

At EU level, the Commission continued working with the EU Member States on implementing the Operational Framework on Aid Effectiveness. Division of labour among donors remains the main tool to reduce aid fragmentation and is an essential element of the aid effectiveness agenda.

In order to promote evidence-based policy-making on aid effectiveness, the Commission finalised several studies, for example, on the costs of non-implementation of the aid effectiveness agenda[22]. The main message from the study is that the EU and Member States could together save up to €5 billion per year. Measures to reach this would include streamlining project planning and implementation, more division of labour with a focus on fewer countries and sectors, further untying of aid, progress towards more budget support, reducing the volatility of aid, and indirect effects on partner countries' economic growth. Another important study of 2011 on joint multi-annual programming[23] outlines the possibilities and constraints for joint programming in a number of partner countries, starting with the countries of the EU Fast Track Initiative on Division of Labour. The study clearly highlights the need for the EU and Member States to synchronise their programming cycles with the strategy cycles of their partner countries.

Fostering joint programming of EU and Member States' aid, a commitment repeated in a series of Council conclusions since 2006, was a priority area of work in 2011. The Commission proposals on the financial instruments for external action in view of the future EU Multi-annual Financial Framework (2014-2020)[24] take due account of aid effectiveness principles and will result, if accepted, in considerable changes to the programming of EU aid.

In line with the importance the EU attaches to the ownership of partner countries over their own national development, the Commission would synchronise its programming cycles with those of its partner countries. Wherever possible, the Commission would base its programming of aid on a partner country's own national strategy without formulating an EU strategy paper. The Commission would programme its aid jointly with others, foremost with EU Member States, wherever this option emerges from an in-country coordination process. Its ambition is to have all EU Member States, which are active in a given partner country, on board when conducting joint programming. In 2011, the Commission identified 10 partner countries where circumstances are most conducive to commence with joint programming in 2012.

Transparency of aid is a priority for the European Commission. In 2011, it started to publish its aid information through the International Aid Transparency Initiative (IATI). Implementing the IATI standard will fulfil the transparency requirements of the EU Transparency Guarantee, adopted by the Council in 2011. Progress in developing the TR-AID (Transparent Aid) tool will further enhance transparency, increase accountability, help reduce fragmentation of EU-managed aid, facilitate division of labour amongst donors as well as reduce the risk of duplication.

At Commission level, since mid-2011 a single dedicated unit deals with all issues related to aid effectiveness, increasing effectiveness in this area, including training courses on aid effectiveness the Commission services and the EEAS. With regard to the indicators of progress stated in the Paris Declaration, the 2011 monitoring showed that the Commission has achieved some but not all targets. Its performance was average in comparison with Member States and other donors.

4.2 Coherence between development and other policies

The EU is a major global actor and its various policies can have a strong impact on developing countries. The Lisbon Treaty requires the EU to take into account the development objectives in all its policies. The EU work programme on policy coherence for development, 2010–2013, provides guidelines for promoting this policy coherence for development across EU policies. It covers five main areas:

trade and finance – to enhance the opportunities of developing countries to obtain maximum benefit from their integration into the world economy, food security – to help developing countries mobilise their own resources, particularly in sustainable fishing and agriculture, climate change – to assist developing countries in adapting to climate change and reduce CO2 emis­sions while preserving an environmental balance and biodiversity, migration – to bring about better coordination between migration and development by reduc­ing the risk of “brain drain”, making migrants’ remittances cheaper and safer, and by facilitating circular migration, security – to consider the links between security and socio–economic development when planning and implementing security operations.

In 2011, the European Commission published its third biennial ‘whole-of-the-EU’ report on policy coherence for development. Building on contributions from Commission services and EU Member States it focuses on actions, processes and thematic priorities pursued by the EU and the Member States since 2009. It covers the five focus areas at EU and Member States' levels, looks at lessons learned and the challenges ahead. The three main ones are: to move beyond the ‘do no harm approach’ and seek better integration of the development dimension in the design of other EU and national policies. The second challenge is to strengthen the EU’s cooperation and networking capacity on policy coherence for development with Commission participation in the OECD international platform on policy coherence launched in 2011 seen as an important step in this regard. The third challenge is to enhance and monitor policy coherence and increase data collection capacity in both Member States and the EU. There are several examples of how the EU took development objectives into account in various policy initiatives in 2011.

Most progress on policy coherence for development occurred in the sphere of EU climate policy, with the EU moving ahead with its commitment to mobilise fast start finance of €7.2 billion during 2010-2012 to support climate mitigation and adaptation in developing countries.

In the area of trade, the EU made substantial progress to introduce comprehensive country-by-country reporting (CBCR) – a key tool to improve transparency, multi-national companies' corporate accountability and to tackle tax avoidance in developing countries. The last Commission communication on Corporate Social Responsibility (CSR)[25] renews the EU’s commitment to promote CSR in developing countries, in favour of long term employment perspectives and consumer trust.

In the area of food security, the Commission’s 2011 proposals for the reforms of the Common Fisheries Policy (CFP) and of the Common Agricultural Policy (CAP) gave an opportunity to study and take into account the potential interactions of these policies with development objectives. In particular, the external dimension of the reformed CFP sets the ambition of greater coordination and policy coherence between fisheries and development policies to ensure that the recognition of the aspirations of developing States to build up their fisheries sector is linked to raising awareness of their duties of sustainable fisheries governance[26].

Important steps forward are the ambitious EU 2020 Biodiversity Strategy to protect biodiversity as a key factor to achieve food security (focussing on more sustainable agriculture and forestry and better management of fish stocks) as well as the emphasis on biodiversity protection in CAP and CFP reforms.

The mobility partnerships proposed in the Commission communication on a ‘Global Approach to Migration and Mobility’[27] are a good example for the search of synergies and mutual benefits for the EU and developing countries. They are increasingly recognised as a central instrument to provide important advantages for migrants and the countries involved. The EU pays also more attention to the concept of the 'brain drain', is more open to effective dialogue and cooperation with diaspora groups and migrant communities, promotes more efficient and secure flows of remittances and defends a common EU approach to migrants’ rights.

The Renewable Energy Directive requires all EU Member States to apply a common sustainability scheme, ensuring that all biofuels counted towards EU targets – whether of EU origin or imported – have been produced in compliance with EU sustainability criteria. In June 2010, the European Commission adopted guidance for the EU sustainability criteria to encourage industry, governments and NGOs to set up certification schemes for all types of biofuels, including those imported into the EU. Such voluntary schemes may also cover other sustainability issues that are not covered by the EU sustainability criteria. These schemes may also have a wider impact, potentially enhancing sustainable production of agricultural raw materials as a side-effect. The Directive also includes comprehensive monitoring and reporting requirements on the impacts of the EU promotion of biofuels. The first reporting will take place in 2012 and a study setting the 2008 baseline for this has been finalised.

Also on energy, the Commission's communication on security of energy supply and international cooperation – “The EU Energy Policy: Engaging with Partners beyond Outer Borders"[28] – highlights the EU's commitment to improve access to sustainable energy for developing countries by fully incorporating energy in the EU's development activities, while promoting comprehensive energy policies, reform measures, favourable investment conditions, infrastructure development and energy efficiency in countries concerned.

The EU continues to support cooperation between researchers in Europe and developing countries. Since the start of the seventh framework programme (FP7) in 2007 €378 million has been granted to researchers in developing countries to participate in collaborative projects with European researchers. The forthcoming Horizon 2020 programme will continue to promote international cooperation. Funding will be more focussed on promoting competitiveness and targeting societal challenges such as health, food security, sustainable agriculture, renewable energy and climate change and on support to external European policies.

4.3 Cooperation with the international donor community

OECD

Close cooperation with the OECD on develop­ment issues continued in 2011 at all levels. In 2011, the Commission helped draw up a framework for an OECD Strategy on Development and worked very closely with the OECD to promote the aid effectiveness agenda and improve policy coherence for development.

During 20011, the DAC reviewed EU development cooperation policies and programmes in the framework of the peer review exercise, to be finalised in March 2012. Following the positive peer review of 2007, this exercise will assess the EU’s development policies and aid delivery over the past five years.

United States

The EU-US Dialogue continued throughout 2011 in all its clusters: food security, climate change, and health (under the MDGs cluster). Overall, progress was mixed: results were visible at the policy level leading, inter alia, to streamlined EU-US positions ahead of the Busan High Level Forum on Aid Effectiveness.

In the field, efforts for joint EU-US activities continued in the six pilot countries on food security (Ethiopia, Zambia, Mali, Guatemala, Bangladesh, Nigeria – for the economic community of West African states, ECOWAS), as well as in the three pilots on climate change (Indonesia, Mali, Vietnam). Cooperation on food security in Ethiopia is the most successful pilot so far. In 2012, both sides have agreed to intensify their efforts in the rest of the pilot countries in an attempt to ensure progress on an equal footing with the policy dialogue at headquarters' level.

The 2011 EU-US Summit tasked the dialogue "to pursue with vigour our joint efforts in areas such as food security, climate change, health and the MDGs". A new element in 2011 was the “Leaders' agreement "on the importance of close co-operation on security and development in the Sahel, the Horn of Africa and Afghanistan". The Commission, in consultation with the Member States, will ensure the Leaders' mandate is followed up during 2012 and aims to shift the centre of gravity of this dialogue from the field to policy work and to further align EU and US development policy priorities.

Brazil

The EU and Brazil attach high importance to the role of triangular cooperation. During 2011, there was progress in the joint pilot projects on bio-energy in Mozambique and Kenya, as well as on electoral processes in Portuguese-speaking African countries (PALOP). Work on the electoral processes shows great potential and the Commission is exploring ways to build on this. This provides a good opportunity to move ahead with the implementation of triangular cooperation, as mentioned in the Letter of Intent on electoral processes signed by Brazil and the EU in July 2010.

China

The E continued to play an active part in the China DAC Study Group (CDSG), which brings together DAC, Chinese and African development officials and academics. In 2011, the CDSG completed its first round of four thematic conferences (including one on infrastructure funded by the EU in 2010) and one summary conference, and presented documentation on lessons for African development from Chinese and DAC experience. A side-event was held in Busan and a programme developed for 2012-13, including a move to engage Chinese development policy makers more closely, all of which contributed to Chinese openness to an inclusive result.

5 Outlook 2012

The recently adopted new framework for EU development policy heralds a new start and a promising future. The two communications on development policy (the "Agenda for Change" and budget support) outlined how EU development policy will look in the future with a more modern policy, better equipped to face the challenges of what is a rapidly changing global environment. In particular, the “Agenda for Change” aims to increase the impact of aid by introducing an EU differentiated approach towards partner countries and allocating more funds to countries most in needs, and to focus development cooperation in support of poverty reduction, human rights, democracy, good governance and inclusive and sustainable growth.

The Commission will work in 2012 on the preparation of the 2014-2020 programming cycle. The legislative work on the adoption of the EU's external action instruments by the Parliament and the Council will continue during the course of 2012. 2012 will be also a key year for the preparation of the Strategy Papers and programming documents, in order to define funding priorities with partner countries for 2014-2020. The new programming cycle will also see an increased roll-out of innovative financial instruments (such as loans, guarantees, and equity and risk-sharing instruments) aimed at catalysing private investment and strengthening institutions in recipient countries.

The objectives of this new policy framework will also have a significant impact on staff allocation. Delivering the new policies rapidly and efficiently will mean allocating resources appropriately, in terms of numbers and profiles alike, both at headquarters and in Delegations. This process shall also start in 2012.

Through drawing lessons from the Arab Spring, the Commission will monitor the implementation of initiatives already developed in the southern Neighbourhood region with a view to their possible replication in, or adaptation for other parts of the world. In addition, the Commission will issue a communication on supporting sustainable change in societies in transition in 2012. It will assess the existing policies and implementation methodology in order to identify how the EU can improve its tools to support sustainable change in transition societies, adapted to and taking account of their situations and needs.

The vulnerability of low-income countries to external shocks remains high. In 2012, the Commission will therefore examine the feasibility of developing a proposal for a shock-absorbing mechanism to be implemented as necessary during 2012-13, prioritising rapid and effective disbursement.

Achievement of the MDGs will remain a key issue. Looking ahead, the next UN MDG Review in 2013 – two years ahead of the MDG 2015 target year – will be an important milestone. In 2012, the Commission will therefore start preparing a communication to report on EU action on the MDGs and outline principles for an EU position on a post-2015 framework.

Chapter 2 - Implementation: geographic overview

This chapter presents the EU's external assistance in the main geographic regions. The geographic instruments covered here are the European Neighbourhood and Partnership Instrument (ENPI), the European Development Fund (EDF) and the Development Cooperation Instrument (DCI). The European Development Fund is the main source of financing for EU assistance to Sub-Saharan Africa (except South Africa), the Caribbean and the Pacific regions (ACP). The EDF is separate from the EU budget, which finances external assistance to other geographic areas and the thematic aid programmes.

This report does not cover the Common Foreign and Security Policy (CFSP)[29] or the current Instrument for Pre-Accession Assistance (IPA), which is covered by a separate report[30]. A short section of this report is dedicated to humanitarian assistance[31].

While some figures and data can be found throughout this chapter, detailed financial information can be found in Chapter 5, Financial Annex.

1 European Neighbourhood and the Middle East 1.1 European Neighbourhood & Russia

1.1.1 Introduction

A new European Neighbourhood Policy

The EU’s evolving relationship with its partners in the Neighbourhood and the transition in the Southern Mediterranean called for a new policy response, set out following a Strategic review of the European Neighbourhood Policy (ENP). The 25 May 2011 Joint Communication of the Commission and High Representative on “A new response to a changing Neighbourhood” outlines the new ENP vision and builds on the Joint Communication, “A Partnership for Democracy and shared Prosperity with the Southern Mediterranean”, adopted on 8 March 2011.

Mutual accountability and a shared commitment to the universal values of human rights, democracy and the rule of law are at the core of the renewed ENP. In line with the “more for more” principle, it involves a high level of differentiation and gives each partner country scope to develop its relationship with the EU according to its own aspirations, needs and capacities. Closer economic integration and stronger political co-operation on governance reforms, security, conflict-resolution matters, including joint initiatives in international fora on issues of common interest with the neighbours committed to follow the path of an enhanced partnership, are all part of this.

Above all, it seeks to support 'deep democracy' and form partnerships with societies: intensifying political and security cooperation, supporting their sustainable economic and social development, creating growth and jobs; strengthening trade ties, enhancing sector cooperation, promoting further mobility and enhancing regional partnerships. Launched in September 2011, the new civil society facility, with an initial budget of € 26.4 million, aims at strengthening the capacity of civil society to promote reform and increase public accountability in the Neighbourhood.

An additional €66 million was allocated to the Erasmus Mundus Programme to boost co-operation in higher education. Preparations of other initiatives, notably the European Endowment for Democracy, are continuing.

The new policy approach aims to provide substantial funding earmarked for the Neighbourhood for 2011-2013. It is enshrined in the proposal for the new European Neighbourhood Instrument (ENI) adopted by the Commission on 7 December 2011 - part of its overall proposal on the Multi-annual Financial Framework (MFF) 2014-2020.

The Southern Neighbourhood and the Arab Spring

Immediate steps were taken by the EU to respond rapidly and effectively to the challenges arising from the Arab Spring. Initial humanitarian and civil protection support (to date €80.5 million) was approved, as well as of a range of measures for democratic transition and assistance to impoverished areas.

In March 2011, a new approach to the southern Neighbourhood was set out. "A Partnership for Democracy and Shared Prosperity”[32] was offered to those partners committed to wide and bold reforms. A strategic review of the ENP led to a revised approach for the whole European Neighbourhood Policy[33]. An incentive-based approach was devised (“more for more” principle) to support partners who deliver on reforms, build “deep democracy” and ensure sustainable and inclusive economic development.

In 2011, the EU provided significant support for elections in Tunisia, Morocco and Egypt. There was political condemnation of the political situations in Bahrain, Yemen, and especially Syria. A set of measures: economic sanctions, trade embargoes, asset freezes and visa bans were applied in Libya (before the fall of former Leader Muammar Gaddafi) and Syria. In parallel, across the entire Neighbourhood, the EU expanded its support to civil society. In May 2011, HR/VP Ashton visited Benghazi to open the EU’s first office in Libya. An EU office opened in Tripoli in September which two months later was upgraded to a fully-fledged EU Delegation. A range of short-term support has backed the transition in Libya. The EU is currently the lead donor in the country’s post-conflict needs assessment in a number of key sectors. The EU was also one of the first donors to suspend its bilateral co-operation with the Syrian regime. Not all support has stopped however; several projects are still ongoing to support non-state actors, Syrian civil society and refugee populations.

The EU also took the initiative to co-ordinate and strengthen the coherence of international response to events of the Arab Spring, with the establishment of a task force and appointment of a an EU Special Representative (EUSR) to co-ordinate task force activities throughout the Neighbourhood South region. Further initiatives followed. In December 2011 the Council approved mandates for negotiating Deep and Comprehensive Free Trade Agreements (DCFTA) with Egypt, Tunisia, Morocco and Jordan. A dialogue on migration, mobility and security was officially launched with Tunisia and Morocco in October 2011,with a view to concluding, inter alia, mobility partnerships.

The EU also increased its financial support, in addition to adjusting its ongoing support to meet new policy objectives. This included support to the SPRING initiative (Support for Partnership, Reform and Inclusive Growth) launched in September 2011. It made available an additional €350 million for 2011 and 2012 for southern partners showing commitment to, and progress in, democratic reforms.

An additional budget allocated to the Erasmus Mundus programme allowed the funding of an additional 743 mobility grants for the academic exchange of students and staff for the 2011/12 academic year, thus strengthening academic cooperation between universities from the EU and the South Mediterranean region.

The Eastern Neighbourhood

In 2011, the EU continued to focus on its eastern partners who view it as a magnet and a catalyst for reform; as an economic opportunity and a close political partner.

At the second Eastern Partnership summit in Warsaw on 29-30 September 2011, the EU and its eastern neighbours renewed their commitment to these objectives and continued implementation of the Eastern Partnership. An allocation of additional resources (of up to €130 million) for 2012-2013 will benefit partners who are committed to reforms.

Repeated calls were made by the EU over the course of the year for all political prisoners in Belarus to be released and rehabilitated and for the opening of political dialogue with the opposition. In response to the violent aftermath of the December 2010 elections in Belarus, the EU pledged more than €17 million in immediate and medium-term assistance to the Belarusian people – mainly for NGOs and non-state actors – to promote freedom of assembly and the monitoring of election processes. It also imposed restrictive measures on the authors of the repression.

The EU-Ukraine Summit in December 2011 noted common understanding on the full text of the association agreement (AA), including the Deep and Comprehensive Free Trade Area (DCFTA), opening the way for its final consolidation and subsequent initialling. Ukraine’s performance, notably in relation to respect for common values and the rule of law, will be of crucial importance for the speed of its political association and economic integration with the EU, including in the context of the conclusion of the Association Agreement and its subsequent implementation.

Negotiations on Association Agreements with the Republic of Moldova, Armenia, Azerbaijan and Georgia made good progress throughout 2011. The launch of negotiations on a DCFTA with the Republic of Moldova and Georgia was announced at the end of 2011. The EU and its eastern partners also worked closely on increased mobility arrangements. A Mobility Partnership between the EU and Armenia was signed in October, with it thus becoming the third country in the region with whom such a Partnership has been concluded (after Moldova and Georgia).

Russia

In 2011, EU-Russia relations developed further, with significant progress in several areas, notwithstanding protracted conflicts in the Neighbourhood and new differences emerging over the crises in Libya and Syria. The EU-Russia Summit on 14-15 December 2011 in Brussels produced a number of important results, in particular relating to World Trade Organisation (WTO) accession, solutions to aviation issues, visas, and modernisation.

Following close dialogue between High Representative/Vice President Ashton and Foreign Minister Lavrov on Syria, Russia finally accepted to discuss a UN Security Council resolution on Syria. The formal re-launch of the 5+2 process on Transnistria on 1 December in Vilnius, after a break of five years, is an encouraging step.

Russia’s recent WTO accession is a basis on which to reinvigorate negotiations on the new EU-Russia Agreement. Significant progress has been made on mobility and visa issues.

The partnership for modernisation is now being fully implemented. This is a pragmatic framework which provides additional momentum to EU cooperation with Russia. Twenty-three EU Member States have concluded bilateral modernisation partnerships with Russia, reinforcing and underpinning the EU-Russia partnership.

1.1.2 Aid effectiveness and donor coordination

Throughout 2011, the EU has been playing a key and instrumental role in donor coordination in many partner countries in the eastern and southern Neighbourhood.

With the support of Member States and other co-operation partners, the EU Delegation in Azerbaijan has taken a lead in donor coordination since end of 2009. The EU Delegation in Belarus organised regular co-ordination meetings with EU Member States and all major donors active in Belarus (UNDP, WB, Swedish International Development Cooperation agency (SIDA), the European Bank for Reconstruction and Development (EBRD) etc.) to synchronise actions and avoid any overlapping. This co-ordination was organised in compliance with the principles of the Paris Declaration and aimed to ensure maximum aid effectiveness.

2011 was a milestone in setting up the donor coordination system in Georgia, including the government of Georgia's signing of the Paris Declaration on Aid Effectiveness in April 2011. A fruitful dialogue is ongoing in key sectors, such as: justice, agriculture, health and trade. The coordination is multi-lateral and the EU is strongly encouraging dialogue between the Government of Georgia, EU Member States, international organisations, non-EU donors and civil society. The overall donor coordination architecture counts 13 working groups at national level, in the framework of which key strategies were drawn up jointly with the government.

Sweden and Romania were the two biggest bilateral EU donors in Moldova in the areas of energy, trade, public administration etc. A joint project was also implemented with Austria in the water sector. Due to the absence of operational government/donor co-ordination structures in Ukraine, international donor organisations co-ordinated their activities through the major donor forum and other mechanisms at their own initiative.

Few southern neighbourhood countries participated in the 2011 OECD DAC survey of the Paris Declaration. According to this survey, Jordan has fully met four of nine indicators, specifically in the areas of ownership, alignment and mutual accountability. There has also been progress in the use of country systems. In Morocco, there is progress on indicators relating to ownership, alignment, harmonisation and accountability for results and in the use of national Public Finance Management (PFM) systems.

Egypt has made progress in meeting many of the Paris Declaration targets including those for ownership and management for results; progress was also made on alignment. Future efforts should be focused on harmonisation and mutual accountability.

In the occupied Palestinian territory, results showed that ownership and alignment were very strong. As for the indicators on management for results and harmonisation, further efforts are required by donors to increase coordination and provide data.

To further deepen commitments and strengthen development effectiveness, the EU will promote and support specific initiatives. It has been proposed that Tunisia take part in joint programming from 2012 in order to reduce aid fragmentation and promote harmonisation. Further assessments will be carried out to confirm whether this exercise can go ahead. A proposal has also been made to implement joint programming (Commission/Member States) during 2012 both in Ukraine and Moldova, but not yet decided.

1.1.3 Working towards the MDGs

In 2011, several ENPI programmes in the social sector were specifically designed to meet MDG objectives.

“Empowering young women” and “Entrepreneurship as a tool for raising the role of women in the society” are examples of