30.12.93 OfficialJournaloftheEuropeanCommunities NoC352/67
experiencegainedintheseinstitutionsshouldbeanaly­
zedandusedtoboosttheinvolvementofsocio-econ­
omicinterestgroupsintheEuropeanintegrationpro­cess.Thisexperiencemightalsobeusefulandnecessary
forfurtherdemocraticdevelopment ,interaliainEast­
ernEurope.
DoneatBrussels,21October1993.
TheChairman
oftheEconomicandSocialCommittee
SusanneTIEMANN
OpinionontheLomeIVConvention—Mid-termreview
93/C352/16)
On30June1993theEconomicandSocialCommitteedecided,inaccordancewiththefourth
paragraphofArticle20ofitsRulesofProcedure,todrawupanOpiniononLomeIV
Convention—Mid-termreview.
TheSectionforExternalRelations,TradeandDevelopmentPolicy,whichwasresponsible
forpreparingtheCommittee'sworkonthissubject,adopteditsOpinionon1October1993.
TheRapporteurwasMrStrauss.
Atits309thPlenarySession(meetingof21October1993),theEconomicandSocialCommittee
adoptedthefollowingOpinionwithnovotesagainstandthreeabstentions .
1.SummaryofRecommendations 1.5.Togivedecentralizedcooperationafillip,pro­
moteenterprisedevelopmentandencouragesocialand
economicgroupingstheConventionshould
1.1.TherealvalueoftheCommunity'sfinancial
assistanceshouldbemaintainedforthedurationofthe
secondhalfoftheConvention'stenyearperiod(para.
2.8).—earmarkfundsforenterprisedevelopment ,witha
significantproportionbeingsetasideforSMEs
(para.8.3),
—provideassistancetocommercialbanksandsaving
institutionsintheinformalsectortoencouragethem
topromoteenterprisedevelopment (paras.8.6and
8.7),1.2.ItshouldbecomepossibleundertheConvention
toreduceorsuspendaidactivitiesintheeventof
—sustainedgovernmentbreachesofhumanrights
(para.4.2);
—floutingoffreeelectionresultsortopplingfreely
electedgovernmentsbyforce(para.4.3).
—statethatgovernmentsshouldconsulttherelevant
socio-economic interestgroupsbeforeNational
IndicativePlansareagreed;andallowthemtoplay
akeyadvisoryroleinsectoraldevelopmentpro­
grammes(para.4.5),1.3.Itshouldalsobepossibletoenhanceaidin
responsetoprogressindemocratization (para.4.3).
1.4.Reducedcooperationactivitieswithgovern­
mentsshouldwheneverpossiblebeoffsetbymore
aidtonon-governmental organizations andinformal
networks(para.4.4).—providefinanceonadegressivescaleforforming
andraisingtheoperatingefficiencyofindependent
socio-economic interestgroups(para.4.5),

NoC352/68 OfficialJournaloftheEuropeanCommunities 30.12.93
—makeitpossibleforsuchgroupsintheECandin
ACPstatestoestablishongoingcontacts(para.4.6).provideforperiodicexaminations ofNational
IndicativePlansandadjusttheminthelightof
changingcircumstances (para.5.7).
1.11.Repayabledebtsshouldbereducedmaterially;
innocaseshouldthedebtserviceexceedtheamount
ofaidprovided.1.6.Theproceduresforselectingprojectsand
awardingcontractsshouldnotonlybemoreopenbut
alsomorecloselycontrolled (paras.2.8and5.1).To
promotegreatertransparencyintheawardofcontracts
andreducecorruption :
—technicalassistanceshouldbeavailabletogovern­
mentstohelpthemfightcorruptionandgovern­
mentsshouldaskcompaniestoabidebystandards
ofconductcentraltowhichisapledgenottooffer
oracceptbribes(para.6.3).2.TheConvention
2.1.TheLomeIVConventionenteredintoforcein
March1990andwasconcludedforaten-yearperiod.
Itspurposeistopromoteandexpeditetheeconomic,
socialandculturaldevelopmentofACPStatesand
consolidatetheirrelationswiththeEuropeanCom­
munity'inaspiritofsolidarityandmutualinterest'.1.7.Toensurecoherenteconomicpolicies,itshould
bemandatoryforthepartnerstoconsulteachotheron
allmajorprojectnegotiationsthatagovernmentmay
havewithindividualMemberStates,thirdcountries
andinternationalorganizations (para.7.1).
1.8.Giventhepivotalimportanceofagriculturein
economicdevelopment ,theConventionshouldstate
that:
—farmersshouldhavesufficientresourcesforinvest­
ment(para.9.3),
—fundsshouldbeavailabletopromotetriangular
tradeinfood.2.2.TheConventioncoversthearrangementsunder
whichACPmembersenjoysignificanttradepreferences
inCommunitymarkets.Italsosetsouttheamounts,
conditionsandmannerinwhichtheECextendsits
EuropeanDevelopmentFundassistanceandEIBlend­
ing.SignificantadditionalCommunityfundsaremade
availabletodeveloping,includingACP,countriessepar­
atelyunderindividualECbudgetlines,buttheyfall
outsidetheConvention .Inadditiontherearebilateral
aidarrangements betweenindividualMemberStates
andcertainACPcountrieswhichareentirelyseparate
fromanyCommunityfundings.Nonetheless ,Title
XVIIoftheMaastrichtTreatyonUnionstatesthat
'Communitypolicyinthesphereofdevelopmentcoop­
erationshallbecomplementary tothepoliciespursued
bytheMemberStates'(Article130u,ouremphasis).1.9.Toimproveadministration andreducedelay:
—theCommissionshouldconsiderdevolvingmuchof
theadministrative developmentprojectworkfrom
BrusselstoDelegationsandaugmenttheirstaff
(para.5.4).2.3.TheConventionprovidesforamid-termreview.
TheCommunityandMemberStatesontheonehand,
andACPstatesontheother,cangivenoticenotlater
than1March1994ofanychangestotheConvention
whichtheywouldliketomake.Thefinancialprotocol
willhavetoberenegotiatedforthesecondfive~year
period;itrunsouton28February1995havingmade
availableECU12billionoverthefirstquinquennium .1.10.Tostreamlinedevelopmentcooperationthe
Conventionshould:
—recognizethattheECshouldberesponsibleforthe
executionofprojectswheretheACPadministration
findsitdifficulttocope(para.5.6),
—establishsettlementproceduresfordisputesbetween
thepartners(para.5.8),
—considerthereplacementofNAOswithotherauth­
orizationchannels(para.5.5),
—exemptprojectscostinguptoECU30000andspon­
soredbyreputableNGOs,fromfirstrequiring
agreementbytheACPauthorities (paras.10.1and
10.2),2.4.LomeIVwasnegotiatedwhentherewasstill
intenserivalrybetweenthecommunistandnon-com­
munistblocksofnationstoretainthesupportand
allegianceofthedevelopingcountries.ACPgovern­
mentsnowrequireanassurancethattheywillnot
beletdown,andthoseundertakinggenuinereforms
designedtoattaingreatersocialandpoliticalequity
andeconomicgrowthdeservespecialsupport.
2.5.SincesigningtheConventionin1989thepublic
financesofmostMemberStateshavedeteriorated ,

30.12.93 OfficialJournaloftheEuropeanCommunities NoC352/69
populations .Theaimistocreateatruepartnership
betweentheCommunity,theACPgovernmentsand
ordinarymenandwomenintheACPcountries.somequitemarkedly.AtthesametimetheCom­
munity'sownresourcesareundergreatpressure.There
arelargerequestsforaidfromEasternEuropeandthe
Commonwealth ofIndependentStatesalthoughthe
bulkofwesterninvestmentwill,ofcourse,haveto
comefromprivatesources.Thefocusofattentionof
somepoliticiansisswitchingfromdevelopmentaidfor
theACPcountries,tostimulatingeconomicprogress
inareasfromwheremigrationtotheCommunityis
greatest.Itwillthereforebefarfromeasytoraisethe
amountoffinancialassistanceforthesecondhalfof
theten-yearperiod.3.3.Thisobjectivehasnotbeenrealized.Govern­
mentsarereluctanttodecentralizedecisiontaking.
Thereisstilltheperceptionthatallstagesofaproject
shouldbecontrolledcentrally,particularlywhenscarce
foreigncurrencyisinvolved.TheCommunity'sdesire
tochannelaidmorewidely,tobusinessandother
socio-economic interestgroups,appearstohavebeen
frustrated .2.6.Economicandfinancialaidisthepractical
expressionbywhichtherelativelyfewrichcountries
canhelpthemanyneedydevelopingnationstobecome
lesspoor.ForhistoricalreasonstheCommunityhas
adoptedaspecialresponsibilityforassistingACPdevel­
opment.3.4.AlargepartofLomeaidwill,ofcourse,have
tocontinuetobespentcentrallyasthereisanurgent
needtoimproveinfrastructures suchasroads,trans­
port,healthandeducationforwhichgovernmentsare
responsible .Butitisimportantthatgovernmentsshould
involvetherelevantsocio-economic interestgroupsin
decidingonprojectsandthattheiradvicebetaken
seriously.2.7.TheUN-agreedobjective,subscribedtobyall
ECMemberStates,isthatdevelopednationsshouldaim
todonate0.7%oftheirGNPtoofficialdevelopment
assistance .Thecontribution ofMemberStatesvaries
from0.16%tomorethan1%,withtheaveragenow
beingintheregionof0.5%.Incontrast,theother
majordonors,JapanandtheUSAcontributed0.3%
and0.18%oftheirGNPrespectivelyin1992andthe
averagefortheOECDwasconsequentlylower,at
0.3%.In1991theCommunityaccountedfor9%ofall
officialaidtoAfricanACPcountries;togetherwiththe
aidfromMemberStatestheproportionwas56percent.3.5.Anotherproblemisthattheproceduresnecess­
arybeforeaprojectislaunchedhavebecomeevermore
complex.WhereastheECwantedtobeinvolvedonly
inthepreliminaryappraisalsandfinalagreementof
individualprojectstheyhavefounditnecessaryto
becomemoreandmoreengagedindecisionswhich
wereintendedtobelefttotheACPauthorities .This
haspartlybeenduetosomenationaladministrations
becomingprogressively lesseffective.Theneedto
streamlinetheproceduresunderwhichaidismade
availableisconfirmedbythe'Post-FijiReport'.2.8.IntheCommittee'svieweveryeffortshould
bemadeatleasttomaintaintherealvalueofthe
Community'sfinancialassistancetoACPcountriesfor
thesecondhalfoftheten-yearperiod.
2.9.AtthesametimetheCommitteerecommends
thattheCommission shouldensurethattheaidis
usedeffectively.Thisrequiresdetailedmonitoring .The
evaluationofaidactivitiesshouldbepublished.
3.NeedforrevisingtheConvention3.6.TheCommittee isconcernedaboutthelack
ofinternational coordination ofaidwithinindividual
countries.Tobeeligibleforaid,agovernmentisasked
bydonorcountriesandinternationalinstitutionsto
followamutuallyagreedmacro-economic policy.The
variousdonorsdonotsufficientlycoordinatetheir
economicprescriptions ,withtheresultthatanACP
governmentmaybeaskedtoagreedifferingpolicies.
Governments willbetemptedtoagreetoallofthese,
particularlyifthisenablesthemtofollowtheirownline.
Equallyseriousisthatnon-coordination ofprogrammes
leadstoincompatibleprojects.3.1.TheaimsoftheConventionremainexemplary :
inadditiontotradeaccessprovisions,theECwill
providedevelopmentaidtoACPgovernments ;the
governmentsdrawupnationalindicativedevelopment
programmeswhichareagreedwiththeEC;withinthese
theECandACPauthoritieswillsettleonindividual
developmentprojects,andadjustmentassistanceisalso
availableinprogrammeform.3.7.TheinnovationinLomeIV,bywhichtheCom­
munitycancoordinatewithotherfundersonacommon
approach,countrybycountry,tostructuraladjustment
iswelcomed.TheCommunityshouldtargetamajor
proportionoftherelevantfundstothoseaspectsof3.2.Withtheintroductionofdecentralizedcooper­
ationthereshouldbegreaterinvolvementbylocal

NoC352/70 OfficialJournaloftheEuropeanCommunities 30.12.93
reformwhichtakeproperaccountofsocialconsider-ofthepress,anindependentandproperlyresourced
ationsandparticularlyofequity. judiciaryandanaccountablegovernmentsystem.
4.4.WheretheCommunityisforcedtoreduceor
suspenditscooperationactivitieswithgovernments ,
assistancetonon-governmental organizations and
informalnetworksshouldwheneverpossiblebeaug­
mentedsothatsufferinganddisruptiontodevelopment
projectscanbekepttoaminimum.3.8.TheCommitteehasbeenconsideringwhether
thepartnershipbetweenthetwopartieswouldbeputat
riskiftheconditionsforaidweremademorestringent.
CommunitydevelopmentaidisderivedfromEuropean
taxpayers.Theyexpecttheirmoneytobeusedeffec­
tively.IfACPgovernmentsflouttheaimsoftheCon­
ventionandimpairsustainabledevelopment ,theCom­
munityhasadutytopersuadeitspartnerstoagreeto
changesinLomeIVtoensurethatECaidisdeployed
asintended.TheCommittee'ssupportforasustained
levelofaidforthenextfiveyearsisconditionalon
therebeingadequatecontrolsoveritsuse.4.5.Essentialtoapluralisticsocietyistheexistence
ofindependentsocio-economic interestgroups.Rather
thanviewingsuchgroupsasathreat,governments
shouldlookuponthemasanopportunitybywhichthe
varioussectorscanplayafullandpositiveroleinthe
developmentoftheircountry,ofteninpartnershipwith
theauthorities .Theconventionshouldstatethatthe
groupsshouldbeconsultedontheIndicativeDevelop­
mentProgrammesandtherelevantrepresentative
groupsshouldplayakeyadvisoryroleintheplanning
ofsectoraldevelopmentprogrammes .UnderArticle
220,financeshouldbeavailablefortheformation,
andforraisingtheoperatingefficiency,ofindependent
interestgroups.Suchaidshouldbeavailableona
degressivescale,theorganizationshavingtobefinan­
ciallyindependentwithin,say,fiveyears.Thiswould
makeitpossible,too,forECinterestgroupstosecond
stafftoACPorganizations .4.Humanrightsanddemocratization
4.1.TheMaastrichtTreatystatesthatCommunity
developmentcooperationpolicyshouldcontributeto
thegeneralobjectiveofdevelopingandconsolidating
democracyandtheruleoflaw;andtothatofrespecting
humanrightsandfreedoms.TherevisionofLomeIV
willhavetoreflectthisandtherelevantILOConven­
tions.4.6.TheConventionshouldbeamendedsothat
financeismadeavailableoutsidetheJointAssemblyfor
representatives ofCommunityandACPsocio-economic
interestgroupstoestablishon-goingcontacts.Aseries
ofconferences inACPcountriesinwhichmembersof
theEconomicandSocialCommitteeexplainedhow
employerorganizations ,tradeunionsandprivatesector
cooperativesoperateintheCommunitycouldhelpto
promotepluralisticsocietiesandmightgosomeway
towardsconvincingtheauthoritiesofthenationalben­
efitthatisderivedfromsuchgroups.4.2.AstheConventionstandsitisnotlegallyposs­
iblefortheCommunitytosuspendtheaidprovisions .
ThisshouldbealteredtoenabletheCommunityto
discontinueorchangetheaidprovisionsintheevent
ofseriousandsustainedbreachesofhumanrightsbya
government .TheCommitteefullysupportstheCouncil
Resolutiononhumanrights,democracyanddevelop­
mentofNovember1991.
5.Needtostreamlineadministrative procedure
5.1.TheCommitteebelievesthattheprocedures
underwhichprojectsareselectedandcontractsare
securedmustbemoreopen.Thisbyitselfwouldengen­
deragreaterelementofmutualtrustamongstallpeople
engagedin,oraffectedbydevelopmentprojects.4.3.Theconceptofdemocratization islessclearcut.
Theaimmustbetoavoidsituationswhereachangein
governmentcanonlybebroughtaboutbythethreat
oractualuseofforce.Thepopulationofdeveloping
fcountriesshouldbefreetoexpresspoliticalchoice.But
theachievementofeffectiveparliamentary democracy
isdifficultincountrieswherepoliticalpartiesaredrawn
onethniclinesandwhereethnicrapportispoor.The
Conventionshouldbealteredsothatwhenagovern­
mentdoesnotabidebyafreeelection,orwherea
democratically electedadministration istoppledby
unconstitutional means,cooperationactivitiescanbe
suspendedormodified.ButtheConventionshouldalso
beusedpositivelytoassistwithsecuringthefoun­
dationsofdemocraticdevelopment -suchasfreedom5.2.Manydevelopmentprojectsareplaguedby
administrative delayateverystageofplanningand
execution.Hold-upsarecostlybecausetheypostpone
thebenefitswhichprojectsaremeanttoprovide;they

30.12.93 OfficialjournaloftheEuropeanCommunities NoC352/71
alsoaddtocoststhrough,forexample,higherinterest
chargesandnoncontinuousutilizationoflabourand
machinery .Delaysreducetherealvalueofdevelopment
aidanddiscouragethecontinuityofgrassrootspartici­
pation.conditionsmodifications arerequired.MostACP
countriesareimplementingstructuraladjustmentpro­
grammeswhicharethemselvesoftenexperimentaland
NIPsmayneedtobemodifiedastheseprogrammes
progress.
5,8.Inthepast,disputesbetweenthepartnershave
beenresponsibleforlongdelays.TheConvention
shouldsetoutarecognizedprocedurefordealing
expeditiouslywithdisputes.
6.Theneedfortransparencyintheawardofcontracts5,3.TheECandACPauthoritiesareacutelyaware
oftheneedtoaddressquicklytheissuesraisedbythe
Post-FijiStudy.Manyoftheissuesareofanadminis­
trativenatureanddonotfallproperlywithinthe
revisionoftheConvention .Thus,undertheConven­
tion,CommissiondelegatesandNationalAuthorizing
Officers(NAOs)canapprovelocalworkscontractsup
toECU5millionandsupplycontractsuptoECU1
millionwithoutreferringtoBrussels.InpracticeBrus­
selsstillseemstohavetobeconsulted .Atthesame
time,thelevelofstaffinginBrusselsisinadequateto
copewiththework-load .Analreadytightsituationhas
beenaggravatedbythetransferofstafftoaseparate
Directorate-General ,DGI-A,todealwiththerequire­
mentsofEasternEuropeandtherepublicsoftheformer
SovietUnion.6.1.Malpracticesintheawardofcontractsdriveup
costsandcausemisallocationofresources.Corruption
underminesthefabricofsocietyandnegatestheCon­
vention'saimtoimprovestandardsofgovernment .
6.2.TheCommitteebelievesthatthereshouldbe
muchmoreeffectivefinancialcontrolofECaidthrough
rigorousandrapidinternalauditingofexpenditure .
CorruptionsapsthewillingnessofECtaxpayersto
contributetoofficialdevelopmentwork.Butmalprac­
ticesarenotinevitableindevelopmentprojectsandin
north/southbusinessdeals.Thecancerofcorruptionis
asembarrassingtomanyACPadministrations asitis
totheEC.5.4.Formidabledelaysarecausedbytechnicaland
financialappraisalsofpotentialprojectsinBrussels.To
reduceadministrative delaystheCommissionshould
considerdevolvingmuchdevelopmentprojectwork
fromBrusselstotheDelegations .Thiswouldnecessitate/
thestrengtheningofDelegationsbysuitablyqualified
staff,buttheextracostshouldbeoffsetbysavings
resultingfromprocessingprojectsmorequickly.Wher­
everpossiblelocalstaffshouldbetakenon,perhapson
atemporarybasis.Thegainintheirworkexperience
couldaddtothepoolofmoreableadministrators .6.3.TheConventionshouldthereforebestrength­
enedtoprovidetechnicalassistancetoACPgovern­
mentstohelpthemtocurbandeventuallytoeliminate
corruption .TobeabletosubmittendersforEDF
developmentprojectsundertheLomeConvention,the
rulesstipulatethatbiddersmustactinaccordancewith
thelawsandregulationsofthecountryconcerned.The
Conventionshouldstatethatgovernmentsshouldask
companiestoabidebystandardsofconductcentralto
whichisapledgenottoofferoracceptbribes,The
CommitteebelievesthattheCommunityshouldfur­
thermoreuseitsstrongestendeavourstopersuade
governmentstoadoptthispractice.5.5.TheroleoftheNAOshouldbeexamined .To
ensuretruepartnership,theConventionassignspower
ofdecisionovertheutilizationofdevelopmentfunds
andtheexecutionofprojectstotheNAO,whoin
manycountriesiseithertheMinisterofFinanceorthe
PermanentSecretarytotheTreasury.Thesepersons
frequentlyfinditdifficulttodelegateauthority,with
theresultthatbottlenecksoccur.TheCommunityand
ACPauthoritiesshouldexaminetheuseofotherauth­
orizationchannelsandamendtheConventionaccord­
ingly.
6.4.OECDhasrecentlyvoiceditsconcernabout
corruptionandaprivateorganization ,Transparency
International (T.I.)isdevelopingaStandardofConduct
whichthepartnersshouldexamine. 5.6.OntheECsidetheCommittee isoftheview
thattheCommunityshouldbegivenpowertobe
responsiblefortheexecutionofprojectswheretheACP
administration findsitdifficulttocope.Thiswould
formalizemanyexistingpractices.7,Coordinationofpoliciesanddevelopmentprojects
5.7.TheConvention shouldstatethatNational
IndicativeProgrammes (NIPs)willhavetobeexamined
periodicallytoseewhetherinthelightofchanging7.1.Toensurethatgovernmentsadoptcoherent
economic,socialandenvironmental policies,andthat
thedevelopmentprojectsaremutuallycompatible,itis

NoC352/72 OfficialJournaloftheEuropeanCommunities 30.12.93
essentialthattheConvention isrevisedtomakeit
mandatoryforeveryACPgovernmenttoconsultwith
theEConallprojectnegotiationsthatagovernment
mayhavewithindividualMemberStates,third
countriesandinternationalorganizations .8,6.Tostimulateprivatesectorenterprisedevelop­
ment,thecommercialbanksinACPcountries,in
additiontothenationaldevelopmentbanks,shouldbe
encouragedtolendtosmallscaleenterprises .Sincethe
riskandadministrative costofsmalllendingoperations
isrelativelyhigh,thebankswillrequireaspecialincen­
tivetoseekthistypeofbusiness.Fundsshouldtherefore
beprovidedthroughtheConventiontoencouragethe
bankstomakesuchloans.Thetermsbywhichthe
commercialbanksareassistedwouldhavetobeclearly
definedtoensurethatthefundsareusedforlendingto
SMEs.7.2.ItisdeplorablethatoutsidetheConvention
thedegreeofcoordinationbetweenMemberStates
themselves,andbetweenMemberStatesandtheCom­
missionisoftennon-existent,especiallyinviewofthe
aimsofcomplementarity andpolicycoherence
expressedintheMaastrichtTreaty.
8.7.Theinformalsector,too,shouldbeencouraged
tochannelitssavingsintoproductivepurposes.Funds
shouldthereforebeavailableunderwhichlocalsaving
associationsareencouragedtolendtosmallenterprises.8.EnterpriseDevelopment
8.1.Developmentpolicymustcentreonwealthcre­
ationwhichinturndependsonsuccessfullyencourag­
ingandfosteringbusinessenterprise.MuchoftheCon­
ventiondealswithtradepreferences,butthesehave
becomeoflesshelpasthecompetitivepositionofACP
countrieshasdeterioratedandtariffsthemselveshave
beenreduced.Asaproportionoftotalimportsintothe
EC,shipmentsfromACPcountriesarecontinuingto
decline.8.8.Thebanksaswellasotherfinancialinstitutions
couldbecomeamediumbywhichmarketingandpro­
ductivityisimproved.Theirofficialsshouldbetrained
toenablethemtooffertheircustomersguidanceon
efficientbusinesspractices.Boththecommercialbanks
andsavingassociationsshouldbeusedasvehiclesfor
publicisingthetypeofaidavailablefromtheEC.
9.Agricultureandfoodsecurity8.2.Enterprisedevelopmentisofpivotalimportance
ifpovertyandunemployment aretobereduced.This
hasbeenrecognizedbysuccessiveConventions ,butit
hasproveddifficulttoinculcatetheenterpriseculture
intomanyACPcountries.Thedifficultieshavebeen
compoundedbyanapparentlackofwillontheparts
ofmanygovernments ,butnotbyall,toimplementthe
spiritoftheConvention .Governments arekeento
obtainfundsofferedforpromotingbusinessandtechni­
calassistance,butareoftenreluctanttochannelthese
toindependententerprises.9.1.TheConventionrecognizesthatvigorousefforts
mustbemadetohelpdevelopandstrengthenACP
agriculturalproductionwhilerespectingnaturalcon­
ditionsandsuitabilityoflandinthecountriescon­
cerned.Theaimistoachievegreaterfoodsecurity,
enhanceruralemploymentandraisetheproductivity
ofthefarmingsector.
8.3.TheConventionshouldthereforebeamended
sothatspecificfundsaretiedtoenterprisedevelopment ,
withasignificantproportionbeingearmarkedfor
SMEs.Theseenterprisesshould,ofcourse,observefair
labourpractices.9.2.ACPgovernmentsrecognizetheimportanceof
thesector,butinpracticetoomanyofthemstillaccord
littleprioritytoruralproduction .AndyetinmostACP
countries,economicdevelopmentwilldependonfirst
securingareasonablyprosperousagriculturefrom
whichindustrialdevelopmentcantakeoff.Thatishow
industrialisation tookplaceinEuropeandEastAsia.8.4.Inapportioningaiditshouldbeborneinmind
thattoraisethestandardoflivinginACPcountriesit
isasimportanttoimprovethechannelsofdistribution
asitistoraisetheefficienciesofmanufacturing and
agriculture.
9.3.Centraltosuccessfulagriculturaldevelopment
isapolicywhichensuresthatfarmershavesufficient
resourcesavailableforinvestment .ACPfarmerscan
rarelyproducebasicfoodssuchasgrains,pulsesand
riceatworldprices.Theavoidanceofdumpingonto
ACPmarketsofsurplusesisthereforeaprerequisitefor8.5.TheroleoftheEuropeanInvestmentBankin
promotingsmall-scalebusinesshassofarbeendisap­
pointing.ItisimportantthatinfuturetheBankbecomes
muchmoreSMEorientated .

30.12.93 OfficialjournaloftheEuropeanCommunities NoC352/73
markettheirproducts.Theyalsorequirefacilitiesto
enablethemtoundertakethefirststageofprocessing
cropsforexport.
10.Non-Governmental Organizations
10.1.Togivedecentralisedcooperationafillipand
toexpediteauthorizationprocedure,projectssponsored
byECNGOs,part-financed fromLomefunds,and
whosetotalcostdoesnotexceedECU30000,should
nolongerberequiredtoobtaintheagreementofthe
ACPauthorities.Suchprojectswillhavetobenon­
discriminatory .TheConventionshouldbeamended
accordingly .
10.2.Meanwhilethereshouldbeanunderstanding
thatwhereDelegationscanvouchforalocalNGO,the
Delegatecanauthorizethecommencement ofsmall
projectswhosetotalcostdoesnotexceedECU30000.
Delegationsshouldbesuppliedwithfundssothatsuch
projectscouldbeagreedlocallywithoutreferenceto
Brussels.
11.DebtRelief
11.1.TheCommitteeisappalledthatinrecentyears
repaymentofdevelopingcountries'debtshaveledtoa
netoutwardflowoffundsfromthepoorcountriesto
therich.
11.2.Sinceover90%ofCommunityaidisinthe
formofgrantsandnotinloans,theACPcountries'
debtburdentotheECisrelativelylight.
11.3.Nevertheless ,opportunityshouldbetakenat
themid-termreviewtoreducedebtsrepayabletothe
Communityverymaterially,possiblythroughdebt/
developmentswapsbywhichthedebtservicewritten
offshouldbereallocatedlocallytonewinitiativesjoint­
lyagreedandstrictlymonitored.Innocaseshoulddebt
repaymentsexceedtheamountofaidprovided.
11.4.SuchactionbytheECmightsetaprecedent
forothercreditorstofollow.greaterfoodsecurityandthisshouldberecognizedby
thetraditionalexporters.
9.4.Thereisaneedtopromotetriangulartrade
wherebyACPcountrieswithfarmsurplusessellthese
profitablytoneighbouringdeficitstates.Lomefunds
shouldbeavailabletofacilitatethistradeevenifthis
weretoreduceimportsfromothersources.
9.5.Governments havebeenreluctanttoraisefarm
pricesbecausevulnerableconsumergroupsmustbe
abletoaffordfood.Itisthereforenecessarytofollow
atwo-prongedapproach:increaseproducerreturnsbut
minimisethepricerisetovulnerableconsumersthrough
well-targetedsubsidies.Thisapproachisinharmony
withthemorepositiveaspectsofstructuraladjustment .
CounterpartfundsgeneratedfromthesaleofFoodAid,
aswellasfromSectorandGeneralImportProgrammes ,
shouldplayaroletodefraythecostofsuchsubsidies.
9.6.Thejudiciousprimaryuseoffoodaiditselfhas
alsoaparttoplayinprotectingconsumers,butitmust
notactasadisincentivetoindigenousproductions ,nor
mustitbeallowedtoweanconsumersawayfromfoods
thatcanbeproduceddomestically .
9.7.TheConventionshouldmakeitmandatorythat
wheneverruraldevelopmentprogrammesaredrawn
up,andalsowhenspecificprojectsareconsidered,
representatives ofallfarmersandruralworkerslikely
tobeaffectedshouldbebroughtintotheconsultation
procedure.
9.8.Foodsecurityandruralemploymentareseldom
enhancedbyfocusinginvestmentexclusivelyongreater
productionofexportcrops.Instead,theCommittee
believesthatagriculturalinvestmentshouldnowcon­
centrateonsimpleprojectswithlowmaintenancecosts
and,wheneverpossible,wheretheinitiativeforprojects
hascomefromthefarmersthemselves .ManyACP
producersfeelthatthefocusofinvestmentshouldbe
onprojectssuchasaccessroads,transportandstorage
facilitieswhichwouldenablethemmorereadilyto
DoneatBrussels,21October1993.
TheChairman
oftheEconomicandSocialCommittee
SusanneTIEMANN