Proposal for a COUNCIL REGULATION (EC) ON COFINANCING OPERATIONS WITH EUROPEAN NON-GOVERNMENTAL DEVELOPMENT ORGANIZATIONS (NGDOs) IN FIELDS OF INTEREST TO THE DEVELOPING COUNTRIES
Date: 1995-07-10
Institutions: European Commission
Subjects: co-financing, developing countries, development aid, development policy, non-governmental organisation

COMMISSION  OF THE EUROPEAN  COMMUNITIES 

Brussels,  10.07.1995 
COM(95)  292  final 

95/0168 (SYN) 

Proposal  for a 

COUNCIL  REGULATION  (EC) 

ON COFINANCING  OPERATIONS  WITH EUROPEAN 

NON-GOVERNMENTAL  DEVELOPMENT 

ORGANIZATIONS  (NGDOs) IN FIELDS OF INTEREST 

TO THE DEVELOPING  COUNTRIES 

(presented by the Commission) 

EXPLANATORY  MEMORANDUM 

Cooperation  in  the  field  of  development  between  the  European  Community  and  non 
governmental  organizations  (NGOs)  was  introduced  in  1976  with  the  aim  of  adding  a 
further  dimension to Community  development policy.  This led to the  creation  of budget 
heading  B7-5010,  which  enabled  the  Community  and  European  NGOs  to  cofinance 
development  projects  in  the  developing  countries  and  awareness  campaigns  in  Europe. 
This  form  of  cooperation  has  become  the  focus  for  the  Community  contribution  to  the 
solidarity  of Europe's citizens with the poor people of the Third  World. 

In  line  with  its  declared  intention  of  supporting  this  policy  of  solidarity,  the  budgetary 
authority has constantly increased the funds allocated to this budget heading, from ECU  2.5 
million  in  1976 to  ECU  174 million  in  1995.  On numerous  occasions,  most  recently  in 
May  1992, the European Parliament has confirmed  the vital  and unique role of the NGOs 
and the effectiveness  of their aid to the needy  in the developing world.  The  Council  has 
also  consistently,  and  most  recently  in  November  1992,  confirmed  its  commitment  to 
providing  full  and  increasing  support  for  the  NGOs'  contribution  to  the  development 
process,  particularly  in  the  areas  in  which  they  are  most  effective,  such  as  measures 
undertaken  with  local  participation  to assist the poorest  sections  of the  population. 

The fact that NGOs generally have direct, long-term relations with the beneficiaries  enables 
them accurately to identify,  understand and meet their needs.  The motivation  and personal 
commitment  of the European  organizations and their local partners creates a development 
environment  of  which  participation  is  a  key  feature.  Being  independent  and  relatively 
small, NGO can often  respond with  remarkable rapidity  and flexibility  at fairly  low cost. 

Cofinancing  projects  with  NGOs  maintains  a  link  of  solidarity  between  the  people  of 
Europe and the people of the Third World,  even in countries where the political  situation 
precludes  direct European  intervention  at government level. 

Moreover NGO work often  focuses on people who cannot, for  a variety  of reasons, easily 
be reached  by bilateral  or multilateral  government  aid. 

The proposed  regulation  establishes the  objectives  and procedures  governing  cooperation 
in the form  of projects cofinanced by the Commission and European NGOs selected on the 
basis of competence, experience and administrative and financial  management skills.  These 
projects will be designed to provide direct assistance to meet the basic requirements of the 
needy  in  the  developing  world,  and  will  include  local  social  and  economic  development 
in  rural  and urban  environments,  human  resources  development  and  institutional  support 
for  local  partners. 

The  Commission  and  selected  NGOs  also  cofinance  awareness  campaigns  in  Europe  to 
inform  the public  about  development  problems and  to mobilize support for  the  people of 
the Third World.  However, whether the projects are carried out in the developing countries 
or in Europe, the main  criteria  are the same: the reliability  of the  European  NGO and  the 
local  partner  involved  and  the quality  of the project  itself. 

Most Member  States have a system for  cofinancing  development  projects with NGOs, but 
the  Community  system  has  certain  specific  features.  For  example,  the  Commission 
provides significantly  more financing for projects proposed and implemented jointly by two 
or more NGOs, preferably  from  different  Member States.  Indeed, the European  dimension 
is  a  major  selection  criteria  for  public  awareness  campaigns,  with  preference  going  to 
projects which target groups in several Member States, involve cooperation between NGOs 
from  several  Member  States,  or concern  subjects  with  a European  angle. 

The draft  regulation  provides for  an annual  report  to be  submitted  by the Commission  to 
the Council  and  to Parliament  as the basis for  a debate on the general  aims of the budget 
heading  concerned.  Given  the  large  number  of  relatively  small  projects  and  the  type of 
work involved,  there is no need for the Member  States to be consulted  on each  individual 
case. 

To emphasize  the need  for  continuity,  no duration  is specified  in this proposal. 

PROPOSAL  FOR A COUNCIL REGULATION  (EC) No 
OF ... 
ON COFINANCING  OPERATIONS  WITH EUROPEAN  NON-GOVERNMENTAL 
DEVELOPMENT  ORGANIZATIONS  (NGDOs) IN FIELDS  OF  INTEREST  TO  THE 
DEVELOPING  COUNTRIES 

THE  COUNCIL  OF THE  EUROPEAN  UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  parties  ar 
Article  130w thereof, 

Having  regard  to the proposal  from  the Commission, 

In  cooperation  with  the European  Parliament,1 

Whereas  the  Commission,  in  its  communication  to the  Council  of  6 October  1975,2  put 
forward guidelines on relations with non-governmental development organizations, together 
with  general  conditions  and  procedures  for  the  use  of  funds  intended  for  development 
operations  by  such  organizations; 

Whereas the budgetary  authority  introduced  into the  1976 budget an item for  cofinancing 
with NGDOs and has since steadily increased  the volume of such funding  (from  ECU  2 5 
million  in  1976  to  ECU  174  million  in  1995)  on  the  basis  of  the  Commission's  annual 
reports  on the use of these  resources; 

Whereas  the  Council,  on  28 November  1977,3  approved  the  general  conditions  and 
procedures  proposed  by  the  Commission; 

Whereas the European  Parliament,  in its resolution  of  14 May  1992 on the role of  NGOs 
in development cooperation,4 reaffirmed  the specific  and irreplaceable role of NGDOs and 
the usefulness  and effectiveness  of their development operations, emphasizing in particular 
the key role of NGDOs' work on behalf of marginal  social groups in developing countries, 
the  need  to  preserve  the  NGDOs'  freedom  of  action,  and  the  vital  role  of  NGDOs  in 
promoting  human  rights  and the development  of grassroots  democracy; 

1  Opinion  delivered  on  .......  (OJ  Ho  ....  of 
2  COM(75)  504.  6.10.1975 
"' R/207/78  (Working  Party  on  Development  Cooperation).  26  1.1978 
4  OJ  No  C  150.  15.6  1992.  p  271 

) and  Decision  of 

(OJ  No 

of 

) 

Whereas  the  Council,  in  its  resolution  of  27 May  1991  on  cooperation  with  the  NGOs, 
underlined  the  importance  of  the  autonomy  and  independence  of  NGDOs;  whereas  it 
recognized,  moreover,  the  need  for  complementarity  between  the  Community  system  of 
cooperation  with the NGDOs and  similar efforts  at national  level, together  with  the need 
for  flexibility  in  procedures  and their application; 

Whereas the Council, in its conclusions of  18 November  1992,5 noted with satisfaction  the 
criteria applied by the Commission when selecting development and education projects for 
cofinancing,  notably  strengthening  the fabric  of democracy  and respect  for  human  rights 
in the  developing  countries,  and particularly  welcomed  the fact  that the Commission  had 
made it clear that the main criterion remained the quality of the project, an approach which 
it backed  unreservedly; 

Whereas  administrative  procedures  should  be established  for  cofinancing  operations  with 
European  NGDOs  in fields  of interest to the developing countries; 

HAS ADOPTED  THIS  REGULATION: 

Article 1 

1. 
The  Community  shall  cofinance  operations  with  European  non-governmental 
development  organizations  (NGDOs)  to  meet  directly  the  basic  needs  of  disadvantaged 
people in  developing  countries.  Such operations  shall be proposed  by European  NGDOs 
and conducted  in cooperation  with their  partners in the developing  countries and  shall  be 
aimed at poverty  alleviation as well as enhancing the target group's quality of life and own 
development  capacity. 

2. 
The  Community  shall  also cofinance  with  European  NGDOs  public  awareness and 
information  operations in  Europe about  the problems facing  the countries  of the South in 
their development  and their relations with the industrialized  world.  Such operations  shall 
be  proposed  by  European  NGDOs  and  shall  be  designed  to  mobilize  public  support  in 
Europe  for  development  and  for  strategies  and  operations  benefiting  people  in  the 
developing  countries. 

3. 
The Community shall also cofinance operations designed to reinforce cooperation and 
coordination  between  NGDOs  from  the  Member  States,  and  between  NGDOs  from  the 
Member  States and  the Community  Institutions. 

Sec  9907/92  D f i V G KN  56.  9  11  1992 

Article 2 

1. 
The  operations  cofinancée!  in  the  developing  countries  under  Article  1(1)  of  this 
Regulation shall, in particular,  concern local social and economic development in rural and 
urban areas, the development of human resources and institutional support for local partners 
in the  developing  countries. 

Within  those  fields  of  activity,  though  the  quality  of  operation  is  paramount,  particular 
attention  shall  be given  to operations  connected  with: 

the strengthening  of civil  society  and  participatory  development,  and the promotion 
and  defence  of human  rights and  democracy; 
the role of women  in  development, 
sustainable  development. 

2. 
Public  awareness  and  information  operations  under  Article  1(2)  of  this  Regulation 
shall  be  targeted  at  clearly-defined  groups,  deal  with  relevant  issues,  be  founded  on  .• 
balanced  analysis  and  a sound  knowledge  of  the issues  and  groups  targeted,  and  involve 
a European  dimension 

Though the quality  of operation is paramount, special attention  shall be accorded to public 
awareness  operations  which: 

highlight  the interdependence  of the Member  States  and  the developing  countries; 
seek  to mobilize  support for  more  equitable North-South  relations; 
encourage  cooperation  between NGDOs; 
enable  partners  in  the  developing  countries to play  an  active part. 

3. 
The operations designed to reinforce coordination between NGDOs from the Member 
States  and  with  the  Commission  Institutions,  under  Article  1(3) of this  Regulation  shall, 
in particular,  concern  the development  of communication  networks. 

Article 3 

The  agents  of  cooperation  eligible  for  cofinancing  under  this  Regulation  shall  be 

1. 
NGDOs  satisfying  the following  conditions: 

they  must  be  constituted  as  autonomous  non-profit-making  organizations  in  a 
Member  State  of  the  European  Community  in  accordance  with  the  laws  of  that 
country; 
they  must  have  their  headquarters  in  a Member  State  of the  European  Community. 
where  all  decisions  relating  to the cofinanced  operations  must  be taken; 
the  majority  of  their  funding  must  originate  in Europe 

In determining whether an NGDO is eligible for  cofinancing,  account shall be taken 

2. 
of: 

its  capacity  to  mobilize  solidarity  and  raise  private  funding  in  the  European 
Community  for  its development  activities; 
the priority  it  accords to development  and its  experience in that field; 
its administrative  and financial  management  capacities. 

Article 4 

1.  Community  cofinancing  for  the operations  referred  to  in  Article  1 may  cover  both 
investment  and  operational  spending  in  foreign  or  local  currency,  and  generally  any 
spending necessary for the smooth implementation of the cofmanced  operations, including 
the administrative  costs NGDOs  or NGDO networks. 

2.  An NGDO  with  which  a cofinancing  contract  is  concluded  shall  notify  its partners 
of the  Community's  contribution  to the operation. 

3. 
The  NGDO  shall  systematically  examine  the  scope  for  the  developing-country 
agencies  or  partners  ultimately  benefiting  from  a  operation  to  contribute  in  kind  or 
financially,  according to their  means and the specific  nature of the operation  concerned. 

Community  cofinancing  under this Regulation  shall take the form  of grants. 

Article 5 

Article 6 

1. 
The Commission  shall appraise, decide and administer the cofinancing  of operations 
covered  by this Regulation  according to the budgetary  and other procedures in force,  and 
in particular those laid  down in the Financial  Regulation  applicable to the general  budget 
of  the  European  Communities,  taking  account  of  the  nature  and  specific  features  of 
NGDOs,  and  particularly  their financial  contribution  to the operations  in  question. 

2.  All  cofinancing  contracts  concluded  under  this  Regulation  shall  provide  for  the 
Commission  and  the  Court  of  Auditors  to  conduct  on-the-spot  checks  according  to  the 
usual  procedures laid  down by the Commission under the rules in force,  and in  particular 
those  of  the  Financial  Regulation  applicable  to  the  general  budget  of  the  European 
Communities. 

Article 7 

After  each  budget  year,  the  Commission  shall  report  to  Parliament  and  the  Council, 
summarizing  the  operations  financed 
in  the  course  of  that  year,  evaluating  the 
implementation  of this  Regulation  in that period  and  proposing general  guidelines  for  its 
future  application. 

The report  shall  set out the conclusions of any independent  evaluations  performed 

Article 8 

This Regulation  shall  enter into force  on the third  day  following  that of its publication  in 
the Official Journal of the European  Communities. 

This  Regulation  shall  be  binding  in  its  entirety  and  directly  applicable  in  all  Member 
States. 

Done at Brussels,  .. 

For the Council 
The President 

FINANCIAL STATEMENT 

1. 

ITEM:  B7-5010 

2.  TITLE  OF OPERATION:  Community  contribution  towards  schemes  concerning 

developing  countries  carried  out  by non-governmental  organizations 

j Appropriations  authorized 
|  1995 

appropriations  requested 
1996 

%  change 

commitments 

disbursements 

commitments 

disbursements 

commitments 

disbursements 

174.0 

146.5 

174.01 

146.51 

0 

0 

3.  LEGAL BASIS 

Proposal  for  legal basis  will be presented  to the Council  in the very  near  future. 

4.  DESCRIPTION  OF OPERATION 

4.1  General  objective 

This operation  has three general  objectives: 

(1)  in the- developing  countries: 

support  for  initiatives  identified  by  partners  in  the  South  aimed  at  meeting 
directly  the basic equirements of  the very  poor; 

(2)  in the EU: 

support  for  raising  European public awareness  of  development problems  in the 
developing  countries  and  in  relations  between  developing  and  industrialized 
countries; 

(3)  in the  EU: 

support  for  the  strengthening  of  cooperation  between  European  NGOs  and 
between  European  NGOs  and  Community  institutions  through  the  NGO-EC 
Liaison  Committee. 

The  figures  should  in  any  event  be  corrected  it  increased  by  the  aniendini.'  budget  resulting  from  HI 
cillai-..'cnient. 

4.2  Period covered  and  arrangements  for  renewal  or extension: 

Since  the  legal  basis  has  not  yet  been  approved  by  the  Council,  it  is  a  renewable 
annual  operation. 

5.  CLASSIFICATION  OF EXPENDITURE  OR REVENUE 

5.1  Non-compulsory  expenditure 
5.2  Differentiated  appropriations 
5.3  Type of  revenue involved:  none 

6.  TYPE OF EXPENDITURE OR REVENUE 

-  100% subsidy:  none 

-  Subsidy for joint  financing  with other sources in the public or private secto» : 

For objectives  I and  II:  the Community  contribution  may  not,  generally  speaking, 
exceed  50%  of  the  total  cost of  the operation. 
For exceptional, duly justified  cases, the EC contribution may reach 75 %  of the total 
cost  of the operation. 
A minimum  of  \5%  of  the total cost of  the operation comes as a rule from  private 
European  funds  mobilized  by  the  NGOs  (through  fund-raising,  donations  and 
sponsorship,  etc.). 
Any  shortfall  may  be  made  up  by  the  Member  States'  public  sector,  the  EU's 
partners  in the South  or any other  source. 

the  remainder  having  come  various  sources 

For objective  HI:  in 1995, the Commission will have cofinanced  86% of the Liaison 
Committee  budget, 
(NGOs, 
Fondation  Roi  Baudouin,  etc.) 
At the NGO General  Assembly  in April  1995 the NGOs will  decide on  the amount 
of  their  "contribution"  to the operation of  the  Liaison  Committee. 
As  a  rule,  from  1996  the  NGOs  should  systematically  contribute  more  to  the 
financing  of  the Committee's  budget. 

-  Interest  subsidy:  none 

-  Other:  none 

-  Should the  operation prove an economic success,  is there provision  for  all  or 

part  of the  Community  contribution  to be reimbursed? 

For objectives  II and  III: no 

For objective  I: no, because the operations  in the developing countries are intended 
to  improve  living  conditions. 
In  the  case  of  projects  targeted  at  economic 
activities,  any  refunds  are  ploughed  back  tor  the  benefit  of  the  recipients. 

9 

Will the proposed operation cause any change in the level  of  revenue? 
No 

Re-use: 
the 
The  revenue  gives  rise 
Financial  Regulation  of  21 December  1977 applicable  to the general  budget  of  the 
European  Communities  (OJ  L 356,  31.12.1977,  p.  1),  as 
last  amended  by 
Regulation  (Euratom,  ECSC, EEC)  No 610/90 (OJ L 70 of  16 March  1990, p.  1). 

in  accordance  with  Article 24  of 

to  re-use 

7. 

FINANCIAL IMPACT 

7.1  Method of calculating total cost of operation: 

The  breakdown  of the  1996 should  be as  follows: 

operations  in the developing  countries  (objective  I): 
development  awareness campaigns  (objective  II): 
Liaison  Committee  (objective  III): 

89% 
10% 

1 % 

7.2  Itemised breakdown of cost: 

Since the aim of this heading  is to support the operations  initiated and presented by 
NGOs  in the EU,  no breakdown  of  expenditure can be given  beforehand. 

The  tables below  give a breakdown  of expenditure  for  recent years. 

I.  Operations  in the developing  countries  (Objective D 

In  practice,  projects  in  the  developing  countries  are  aimed  mainly  at  essential 
requirements,  which  include food  security,  health and training, often  in the form  of 
an  integrated  approach. 

Bv geographical  area 

1992 

35.5 

Sub-Saharan 
Africa 

Mediterranean 

4 

Asia 

Latin  America 

Caribbean 

Pacific 
Other  l 

TOTAL 2 

15.5 

42 

2 

0.5 

0.5 

1993 
(%) 

38 

5 

18 

35 

2.5 

0.5 

1 

1994 
(%) 

33 

5.5 

16 

41 

4 

~ 

0.5 

100 
ECU  79.9m 

100 
ECU  98.5m 

100 
ECU  106.2 

1  A number  of countries  in a number of geographical  areas. 
2 These figures do not include block grants, i.e. operations for which the Community contribution may range 

from  ECU  I  000  to  ECU  15 000. 

By type of activity 

Agriculture 

Training 

Health 

Economic 
activities 

Migrants, 
refugees 

Social 

TOTAL2 

1992 

32.8 

25.7 

20.5 

6.7 

0.3 

14 

1993 
(%) 

30.1 

25.8 

28 

7.6 

0.4 

8.1 

1994 
(%) 

28 

25 

25 

7.5. 

0.5 

14 

100 
ECU  79.9m 

100 
ECU 98.5m 

100 
ECU  106.2m 

II.  Development education activities  (objective ID 

By target groups 

Education 

General  public 

Youth 

Decision  makers/media 

Development  agencies 

Labour  associations 

Agricultural  associations 

Associations  (in general) 

Other 

1992 
(%) 

22A 

16.9 

13^9 

13.8 

11.4 

6.4 

6.0 

4.4 

Jk8 

1994 
(%) 

\9A 

15.6 

123 

13.7 

5.9 

7.8 

3.9 

11.6 

10T 

2 These figures do not include block grants, i.e. operations for which the Community contribution  mav range 

from  ECU  1  000  to  ECU  15 000. 

By topics 

Development 

Economics/trade 

Specific  regions 

Images/cultures 

Rights/conflicts 

Agri-food 

Human resources 

Environment 

Health/drugs 

European policies 

Other 

1993 

(%) 

17.6 

14.4 

12.2 

9.8 

_93 

SA 

7.3 

5.9 

._5/7 

3.2 

62 

III.  Liaison  Committee  (objective  III) 

Not  applicable 

1994 

(%) 

33.5 

14.7 

6.1 

12.9 

1.3 

^9 

9.7 

5.1 

^6 

3.7 

^5 

7.3  Operating  expenditure  on studies,  experts'  meetings,  etc.,  included in  Part  B 

None 

7.4  Schedule  for multiannual  operations 
None  - or  file  HI to be completed  later 

8.  FRAUD PREVENTION MEASURES; RESULTS OF MEASURES TAKEN 

In the General  Conditions for  this budget heading  auditing procedures are  included, 
namely: 

-  presentation  and  approval  of  progress  reports  which enable  Community  funds  to 

be  released  and  final  reports  to be presented  on the operation  cofinanced. 
The  examination  of  the  reports  leads  in  some  cases  to  the  conclusion  that  the 
NGOs  must  refund  unused  sums  (not  that  this  necessarily  implies  fraud); 

-  audit  by  the  Commission's  financial  department  and  by  the  Court  of  Auditors  at 

the NGO  headquarters  and  at  the site of  the  operation; 

-  in  the  event  of  poor  management  of  Community  funds,  the  Commission  may 

request partial  or  total  reimbursement  of  its contribution. 

The  department responsible for  management and the Delegations make a number of 
visits  to the site so that they can check  on proper  implementation  and  the  accuracy 
of  the  reports  supplied  by the NGOs. 

9.  ELEMENTS  OF COST-EFFECTIVENESS  ANALYSIS 

9.1  A.  Specific  and quantified  objectives 

I.  Operations  in the developing  countries  (general  objective D 

The operations cofinanced  in order to attain the general objective  relate in particular 
to rural  and urban development,  in the socio-economic  sectors,  the development of 
human  resources  and  support  for  local  partners  in  the developing countries. 

Operations  may be  conducted  in all  the developing  countries,  but  the  Commission 
encourages  the NGOs  to undertake  more projets: 

-  in the Arab world, particularly  the Maghreb, where the activity of European NGOs 

has so far  remained  generally  rather  limited; 

-  in  countries  where  official  cooperation  has  been  suspended  or  is  impossible  for 

political reasons; 

-  in countries with rehabilitation programmes or making the transition to democracy; 
-  and not to neglect Africa,  despite the particular difficulties  often encountered there 

in setting  up projects. 

The selection  of projects  takes account of these criteria  of  comparable  quality. 
Examples of operations  cofinanced  include vocational  training,  primary  health  care 
in rural  and urban areas,  and  income-generating  operations,  etc. 

II.  Development  education  operations  (general  objective  II) 

In  addition  to  the  ongoing  specific  objectives,  in  particular  the  incorporation  of 
development  education  into  the  programmes  of  formal  and  informal  education 
structures  and  the  strengthening  of  the  impact  of  consciousness-raising  through 
inter-NGO  collaboration,  there are  also the following  specific  objectives: 

-  involving  new participants  in consciousness-raising  and  development; 
-  encouraging the active participation of partners in the developing countries in order 

to create  channels  for  North-South  collaboration; 

-  countering the present negative  images and perceptions of the developing countries 
in  order  to  create  a  climate  of  opinion  which  is  more  favourable  towards 
development; 

-  heightening  consumer  awareness  by  means of  fair  trade  campaigns. 

M 

Examples  of  operations cofinanced  include  the role of  women  in development,  the 
promotion  of alternative  trade and support  for  lobbying. 

NB:  In its annual report to the Council,  the Commission gives a detailed  list of  the 
operations cofinanced  for  general  objective  I and general  objective  II. 

III. 

Liaison  Committee  (general  objective  III) 

Enabling  the  Liaison Committee  to play  its dual  role: 
(1)  of  representing  the  European  NGOs  in the European  institutions; 
(2)  of  acting as a  forum  for  coordination  between  the EU's  NGOs. 

9.1  B.  Target  population 

General  objective  I (operations  in the developing  countries) 

The  ultimate  beneficiaries  of  the  operations  are  the  people  of  the  developing 
countries,  and  in  particular  the  very  poor,  who  are  not  targeted  by  official 
cooperation. 
In order  to  reach  the very  poor,  the  Commission  cofinances  operations  which  are 
proposed  by  the  European  Union's  NGOs,  and  are  initiated  and  conducted  in 
conjunction  with  the NGOs'  partners  in the developing  countries. 

General  objective  II  (development education  activities) 

These  operations  are aimed  directly  at  the European public and  focus  either  on  the 
general  public or on highly  specific  target groups. 
The  Commission cofinances  operations  proposed  and  initiated  by  NGOs,  which  in 
this  way  act  as  intermediaries  between  European  public  opinion  and  the  indirect 
beneficiaries,  i.e.  people  in the developing  countries. 

General  objective  III 

NGOs in the European Union and the representation of the NGOs in the institutions. 

9.2  Grounds  for the operation 

-  Need  for  Community  financial  aid 

General  objective  I (operations  in the developing  countries) 

It  is stated  in a number of Council and  Parliament resolutions  that there  is no real 
development  policy  without  support  for  the  operations  initiated  by  the  NGOs. 
They  stress  the  specific,  irreplaceable  role  of  the  NGOs,  the  usefulness  and 
efficiency  of  their  operations  to  promote  development  and  their  special  role  in 
helping the marginalized sections of the population  in the developing countries (see 
in  particular  Parliament  Resolution  of  14.5.1992  and  Council  Resolution  of 
18 November  1992). 

15 

General  objective  II  (development education  operations) 

Through support for this objective the Commission aims to facilitate and strengthen 
the work  of  the  NGOs  aimed  at developing  and  consolidating  solidarity  between 
the  people  of  Europe  and  the  people  of  the  developing  countries. 
In  this  it  is 
responding  to  the  need,  now  largely  recognized,  to  focus  public  attention  on  the 
problems  posed  by the growing  interdependence  between  the North  and  South. 

Public  opinion  can  in  this  way  be  actively  committed,  in  full  knowledge  of  the 
facts,  so that appropriate solutions can be found  to the problems of the developing 
countries  and  the  dangers  resulting  in  terms  of  peace  and  social  and  economic 
progress  in the  world. 

A number  of resolutions  and  in particular  the conclusions  of the Council  meeting 
of  18 November  1992 reaffirm  the  Council's  commitment  to giving even  greater 
support  to  the  NGOs'  participation  in  the  development  process,  in particular  in 
development  education. 
The  Council  unreservedly  supports  the  Commission  in the philosophy  underlying 
this approach  (see point 7 of the conclusions). 

-  Choice  of  ways and means: 

*  advantages over possible  alternatives  (comparative  advantages) 
*  analysis of any  similar  Community  or  national  operations 

The objective could  in theory also be attained  through  public-sector  contributions, 
but the aim  is to supplement  these and  ensure that  they are on a sufficiently  large 
scale to promote far-reaching  development with lasting effects.  Experience shows 
that,  in most cases, government representatives do not have the direct contact with 
the beneficiary  population  which  is needed  in order  to know and  really  meet  the 
requirements. 

Cofinancing  with  NGOs  has  a  number  of  important  spin-off  effects:  a  rapid, 
effective  contribution  to  development  efforts  which  the  population  of  the 
developing  countries make for  themselves.  The use of NGOs makes it possible to 
improve  the  quality  of  development  by taking  as  a basis  initiatives  by  grassroots 
associations  and  mobilizing  all  the energy  and  resources  available  in Europe. 

In order to benefit  from  the comments and contributions of the various departments 
involved  and  to avoid duplication by the various  forms  of development  financing, 
the department which administers cofinancing  in the developing countries consults 
these other  departments  and  ensures  that  the  NGO  activities  are  compatible  with 
official  projects. 

Coordination  meetings between DG  I N/S,  ECHO and  DG  VIII are held  regularly 
to draw  a demarcation  line  between  the various  budget  headings. 

The  department  which  administers  this  heading  has  regular  exchanges  of 
information  with  its counterparts  in the Member States. 

Consultations  of this kind are also held on development  education  in cases  where 
this proves  necessary. 

In  most  Member  States  there are  cofinancing  systems for  activities  conducted  by 
NGOs  to promote  development. 

The  Community  system has certain specific  aspects,  however: 

For  general  objective  I (operations  in the developing  countries) 

The Commission provides greater  financial  support for operations  initiated by two 
or  more NGOs, preferably  from  different  Member  States. 
Since  1988, the Commission  has set up a strategy  for  strengthening  and  financing 
the  non-governmental  sector  in  the  South  (only  very  few  of  the  Member  States' 
cofinancing  systems have any such strategy). 
There  is a chapter  on this  in the General  Conditions. 

For  general  objective  II (development  education  schemes) 

The Commission gives  increased  financial  support to operations presented  by two 
or  more NGOs from  different  Member  States. 

An  important  selection  criterion  is  the  European  dimension  of  the operations,  in 
particular  because: 

-  they  are  linked  with  relations  between  the  European  Community  and  the 

developing  countries; 

-  they are linked  with  the  impact  of  EC policies  on the developing  countries; 
-  they  reach  target  groups  in a  number  of  Member  States; 
-  they provide  for  cooperation  between  NGOs  from  a number of  Member  States. 

Certain Member States do not take the cofinancing  of such operations into account 
in their  cofinancing  system. 

Main  factors  of  uncertainty  which  could  affect  the  specific  results  of  the 
operation 

The  main  factors  of  uncertainty  which  may  affect  the  specific  results  of  the 
operation  are  sudden  changes  in  the  economic  or  political  situation  in  the 
beneficiary  countries. 

\~i 

9.3  Monitoring  and evaluation  of the  operation 

Monitoring 

A  considerable  effort  has  been  made  (despite  the  increasingly  serious  lack  of 
personnel)  to  speed  up  the  supply  of  reports  which  the  NGOs  are  expected  to 
produce  and  to check  their  quality  more carefully.  The  initial  results  have proved 
very useful  and the effort  will be continued.  Some checks were made by visiting the 
site,  but  this  cannot  be  done  with  sufficient  frequency  owing  to  lack  of  time  and 
funds. 

In 1994 Financial Control visited Spanish and Portuguese NGOs and at the beginning 
of  1995  visited  Chile,  on  which  occasion  it  went  to  a  project  cofinanced  with  a 
Spanish NGO. 

Evaluation 

In addition to the evaluation (financed under heading  B7-5010) of specific operations, 
thematic evaluation  operations  are conducted  (financed  from  heading B7-5091). 
The evaluation is based on conventional indicators including efficiency,  effectiveness, 
impact and  durability. 

General  objective  I (operations  in developing  countries) 

Over  the  last  two  years  (1992-94)  the  Commission  has  cofinanced  four  thematic 
evaluation  operations,  namely: 

-  institutional  support  for  grassroots  organizations  in the developing  countries; 
-  vocational  training  operations; 
-  savings  and  credit; 
-  integrated  development  schemes. 

The Commission  has  summary  reports  for  the first  two evaluation operations. 
The  final  reports  for  the other  two should become  available  in the course of  1995. 

The results of the first  two evaluation operations  show  that,  generally  speaking,  the 
multiplier effects  of the operations cofinanced  are considerable and that their success 
is due above all to the high degree of motivation and commitment of the NGOs and 
their  partners  in  the  South,  their  independence  and  relatively  small  size  and  the 
autonomy  and  flexibility  with  which  they  are  administered  as  a  result.  The 
interaction  of  these  positive  factors  generally  gives  rise  to  efficiency,  speed  and 
flexibility  in the design and  implementation  of projects  in the developing  countries. 

The main conclusions of the evaluation operations conducted  on institutional  support 
and  vocational  training  schemes  are available  from  the  Commission. 

Lessons  to be  learnt  for  the future  administration  of  the programmes  concerned 

The results of these two evaluation operations will be used in the current process of 
revising  the General Conditions on cofinancing.  This revision,  which  is being done 
in conjunction  with the NGOs, has  two main objectives: 

(a)  to  make  administration  easier  for  the  Commission  and  the  NGOs  and  to 

concentrate  the checks on what  is essential; 

(b)  to  encourage  an  approach  towards  European  NGOs'  programmes  which  backs 
up action programmes and strengthens NGOs  in the South, particularly  through 
multiannual  programme-contracts. 

At  the same time,  the Commission  and  the NGOs are taking  the  necessary  steps  to 
give  the various people concerned  the main  results of  the evaluation  exercises. 

General  objective  II  (development  education  schemes) 

An  operation  (financed, under  heading  B7-5091)  will  be  conducted  in  1995-96  to 
evaluate  the  consciousness-raising  activities.  The  exercise  will  cover  some  20 
operations  conducted  in  schools  in  various  Member  States.  The  evaluation  will 
provide  an  assessment  of  the  various  strategies  for  incorporating  development 
education  into  school  syllabuses. 
It  will  determine  the  extent  to  which  these 
strategies  give development  education  a lasting  impact. 

A  similar  evaluation  was  conducted  in  1991  on  projects  aimed  at  agricultural  and 
trade union organizations. 

9.4  Coherence  with  financial  programming 

-  Is the  operation  incorporated  in  the DG's  financial  programming  for  the  relevant 

years? 
Yes 

-  To  which  broader  objective  defined  in the  DG's  financial  programming  does  the 

objective  of  the proposed  operation  correspond? 

The  general  objectives  of  this  heading  correspond  to  those  of  the  entire 
development  policy  of  the EU and  in particular  the  following: 

-  food  security; 
-  combating  poverty  in the developing  countries; 
-  helping  to strengthen  the basic  fabric  of  democracy; 
-  participatory  development. 

IV 

ISSN  0254-1475 

COM(95) 292  final 

DOCUMENTS 

EN 

11 

Catalogue number  :  CB-CO-95-328-EN-C 

ISBN 92-77-91013-5 

Office for Official Publications of the European Communities 

L-2985 Luxembourg