Communication from the Commission to the Council and the European Parliament - Annual Report 2006 on the European Community’s Development Policy and the Implementation of External Assistance in 2005 {SEC(2006) 808}
Date: 2006-06-22
Institutions: European Commission
Subjects: activity report, aid evaluation, aid policy, cooperation policy, developing countries, development aid, impact study

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 22.6.2006 
COM(2006) 326 final 

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL AND THE 
EUROPEAN PARLIAMENT 

Annual Report 2006 on the European Community’s Development Policy and the 
Implementation of External Assistance in 2005 

{SEC(2006) 808} 

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COMMUNICATION FROM THE COMMISSION TO THE COUNCIL AND THE 
EUROPEAN PARLIAMENT 

Annual Report 2006 on the European Community’s Development Policy and the 
Implementation of External Assistance in 2005 

TABLE OF CONTENTS 

1. 

1.1. 

1.2. 

2. 

Toward the achievement of the Millennium Development Goals ............................... 4 

Backing the ‘Millennium + 5’ UN Summit, the EU sets its objectives ....................... 4 

A European vision of development.............................................................................. 5 

A partnership approach ................................................................................................ 6 

2.1. 

Co-operation with the Western Balkans ...................................................................... 6 

2.2 

2.3 

The EU Neighbourhood Policy.................................................................................... 6 

The ‘Common Spaces’ with Russia ............................................................................. 7 

2.4. 

The oldest partnership: Africa, the Caribbean and the Pacific..................................... 7 

2.5 

3. 

3.1. 

3.2. 

3.3. 

4. 

4.1. 

4.2. 

4.3. 

4.4. 

Strengthening the partnership with Latin America ...................................................... 8 

An increasing political dimension................................................................................ 8 

Instruments to promote democracy and Human Rights............................................... 8 

Creating a framework for political dialogue ................................................................ 9 

Migration and asylum issues in the frame of development policy............................... 9 

More, better, faster Aid – Europe delivers................................................................. 10 

The issue of aid effectiveness .................................................................................... 10 

Evaluation .................................................................................................................. 11 

Management issues .................................................................................................... 11 

Results ........................................................................................................................ 11 

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Introduction 

The  European  Union  is  the  world’s  largest  provider  of  development  assistance,  the 
main trading partner of developing countries, and a key actor in political dialogue. In 
2005,  the  EU  committed  itself  to  double  its  current  level  of  Official  Development 
Assistance (ODA) by 2010.  

In  terms  of  delivery  of  development  aid,  2005  was  a  record  year  for  the  European 
Commission  :  €6.2  billion  was  spent  –  up  from  €5.7  billion  the  previous  year.  It 
showed  again that the Commission, which  manages about one-fifth of  the  EU  total 
flows  of  official  development  aid,  can  deliver  effectively  and  rapidly  on  its 
commitments,  so  that  the  money  reaches  those  who  need  it.  The  results  show  the 
value  of  the  reforms  launched  in  2000  to  improve  the  way  in  which  the 
Commission’s aid to third countries is spent. This, together with the EU’s activities 
in  response  to  natural  disasters  like  the  Tsunami  and  the  earthquake  in  Pakistan, 
testify to the fact that the Commission is becoming an increasingly reliable partner. 

The  overall  objectives  of  European  Community  development  policy  and  external 
assistance are set out in its Treaty (art. 177). 

Within  this  legal  framework,  the  Commission  set  out  in  its  Annual  Policy  Strategy 
(APS)  for  20051  specific  objectives  of  particular  relevance  for  development  policy 
and external assistance. In 2005 it chose to focus on the following: 

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– 

– 

– 

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The stabilisation and association process in the Balkans; 

Further implementation of the European Neighbourhood Policy, particularly by 
means of Action Plans; 

Creation of the four ‘Common Spaces’ with Russia; 

Contribution to the reconstruction of Iraq; 

Review and scaling up of the EU contribution to the Millennium Development 
Goals; 

–  Making the Peace Facility for Africa operational; 

– 

Launch of an EU Water Facility. 

To complete the APS objectives, the Commission had also planned to conclude and 
sign a revised Cotonou Agreement. This objective, together with the implementation 
of  the  Peace  Facility  and  the  emphasis  on  the  Millennium  Development  Goals, 
reinforced the focus on Africa as the main priority for 2005. 

These objectives have oriented the actions and financing programmes carried out in 
2005. These actions are featured extensively in the Annual Report. 

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Besides  this  general  record,  the  focal  points  in  the  year  2005  of  EC  aid  and 
development policy centred on five main issues: 

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– 

– 

– 

In  the  course  of  the  preparation  of  the  “Millennium  +  5”  UN  Summit  in 
September  2005,  the  EU  also  renewed  its  commitment  vis-à-vis  the 
achievement of the Millennium Development Goals (MDGs) and agreed on 
a  common  approach  to  development.  The  EU  took  firm  commitments  to 
accelerate progress towards achieving the MDGs, concentrating on : more and 
better aid, strengthened policy coherence for development, and extra efforts in 
support of Africa. 

A new tripartite development policy statement, the ‘European Consensus on 
Development’, was endorsed by the European Parliament, the Council and the 
Commission,  and  complemented  by  an  EU  strategy  for  Africa.  The  specific 
problems  of  Africa,  in  particular  Sub-Saharan  Africa,  demand  an  appropriate 
response.  This  dedicated  strategy  will  help  the  EU’s  efforts  to  offer  a  ‘step 
change’ in support to Africa, in terms of both quantity and quality. 

The  EU  developed  further  its  partnership  approach:  countries  are  offered  a 
framework  for  their  relationship  with  the  EU  which  is  both  collaborative  and 
adapted  to  their  situation.  2005  saw  major  steps  in  the  strengthening  of  these 
partnerships with Western Balkans countries, Russia, Latin America and ACP 
countries,  and  has  also  been  a  key  year  for  the  European  Neighbourhood 
Policy. 

The political dimension of aid and external assistance has been fundamental, 
whether  it  has  meant  using  aid  as  leverage  for  political  dialogue,  or  funding 
specific actions devoted to strengthening the rule of law and respect for Human 
Rights. 

The Community has maintained in 2005 its requirement for faster and better 
aid delivery. The Paris Declaration, signed by EU Member States and the EC 
in 2005, has made a key contribution in that area and its benefits will soon be 
visible. 

1. 

TOWARD THE ACHIEVEMENT OF THE MILLENNIUM DEVELOPMENT GOALS  

1.1. 

Backing the ‘Millennium + 5’ UN Summit, the EU sets its objectives 

2005  saw  a  series  of  major  steps  by  the  international  community  to  address  the 
challenge  of  fighting  world  poverty  by  actively  re-launching  the  Millennium 
Development  Goals  (MDGs).  The  EU  played  a  leading  role  in  the  UN  World 
Summit in September 2005, both in terms of political and financial commitments.  

In preparation for the Summit, on the basis of Commission proposals, the European 
Union  agreed  on  a  set  of  measures  to  accelerate  progress  towards  achieving  the 
Millennium Development Goals which seek to reduce extreme poverty in all its key 
dimensions. They formed the basis for the European contribution to the UN Summit, 
and consisted of three main elements: 

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A significant increase in the quantity and quality of EU aid 

The  25  Member  States’  Official  Development  Aid  (ODA)  totalled  €43 billion  in 
2005.  The  EU  agreed  to  continue  increasing  its  ODA  budgets  beyond  the 
commitments  made  at  Monterrey  –  0.39%  of  GNI  in  2006  –  committing  to  a  new 
interim minimum target for 2010 for each Member State of 0.51% of GNI (0.17% for 
the new Member States) in order to achieve the 0.7% target fixed by the UN in 2015. 
This would take the Union's collective effort to 0.56% of GNI in 2010. In absolute 
terms,  this  commitment  would  mean  that  an  additional  €20 billion  in  ODA  would 
become available annually by 2010. 

Policies in other areas should also help to achieve the MDGs 

Development  co-operation  alone  will  not  be  enough  to  achieve  the  Millennium 
Development  Goals.  Other  EU  policies  have  an  essential  role  to  play  in  helping 
developing countries achieve the MDGs, hence the concept of Policy Coherence for 
Development  (PCD)2.  The  EU  has  agreed  to  associate  12  policy  areas3  with  the 
MDG  objectives  and  timeframe  and,  in  these  12  areas,  has  accepted  specific  ‘PCD 
commitments’ to ensure coherence with the development policy objectives.  

A priority: Africa 

The  Commission  wishes  to  focus  its  efforts  on  Africa  in  order  to  help  Africans 
become  the  main  players  in  their  own  development,  and  to  act  as  a  catalyst  for 
additional development aid. The EU is working to establish a real partnership based 
on  mature  trading  and  political  relationships.  Besides  general  concern  for  social 
cohesion  and  sustainable  development,  the  EU  fosters  the  network  necessary  for 
regional integration between African countries and for South-South trade. It has also 
created  a  partnership  with  the  African  Union,  and  its  institutions  carry  out  actions 
such as the refinancing of the Peace Facility. 

1.2. 

A European vision of development 

On  20  December  2005,  the  Presidents  of  the  Commission,  Council  and  Parliament 
endorsed  the  new  EU  development  policy  statement,  the  European  Consensus  on 
Development4, which constitutes a milestone in the history of EU development co-
operation. For the first time in fifty years common values, principles, objectives and 
means  to  eradicate  poverty  and  achieve  the  Millennium  Development  Goals  have 
been defined at Union level. 

The EU Strategy for Africa5, adopted in December, is the first concrete application 
of the European Consensus on Development. It sets out a framework for action for 
Member States and the European Commission to support Africa's efforts to attain the 

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COM(2005) 134 - April 2005. 
Trade; environment; climate change; security; agriculture; fisheries; social dimension of globalisation, 
migration; research and innovation; information society; transport; energy. 
The Commission and the Council adopted the document at the General Affairs and External Relations 
Council on 22 November 2005 (14820/05), whereas the Parliament endorsed it at the Plenary Session of 
15 December 2005 (Resolution n. P6-TA-PROV (2005) 0528 
COM(2005) 132 

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Millennium  Development  Goals,  with  enhanced  support  in  particular  for  peace  and 
security, governance, infrastructure and trade.  

Stepping up care for children 

The  new  EU  Development  Policy  Statement  as  well  as  the  new  EU  Strategy  for  Africa  give 
attention to children’s needs and rights (education, health, child labour, orphanage, etc.), as the 
EU is committed to progress on the internationally agreed objectives of the Convention of the 
Rights of the Child. Guidelines on children’s rights have been developed for policy dialogue at 
delegation  level.  The  Group  of  Commissioners  on  Fundamental  Rights,  chaired  by  President 
Barroso,  decided  in  April  2005  to  work  towards  a  “Pact  for  the  Child”  to  advance  the 
promotion of children’s rights in internal and external EU policy. 

2. 

A PARTNERSHIP APPROACH  

2.1. 

Co-operation with the Western Balkans 

In  2005,  the  countries  of  the  Western  Balkans  have  made  considerable  progress  in 
stabilisation  and  reconciliation,  internal  reform  and  regional  co-operation.  Now 
closer  to  the  EU,  they  will  continue  to  benefit  from  the  CARDS  programme  of 
financial support until the introduction of the unified instrument for pre-accession in 
20076. In June 2005 the European Council reaffirmed its commitment to implement 
the Thessaloniki agenda. Important steps have been taken in 2005: opening accession 
negotiations with Croatia, granting candidate status to the former Yugoslav Republic 
of  Macedonia,  nearing  conclusion  of  a  Stabilisation  and  Association  Agreement 
(SAA)  with  Albania,  and  opening  SAA  negotiations  with  Serbia  and  Montenegro 
and  Bosnia  and  Herzegovina.  The  political  process  for  reaching  a  decision  on 
Kosovo’s  future  status  has  begun.  The  European  perspective  provides  a  powerful 
incentive  for  political  and  economic  reform  and  has  encouraged  reconciliation 
among the peoples of the region. 

2.2 

The EU Neighbourhood Policy  

The  European  Neighbourhood  Policy  (ENP)7  aims  to  develop  a  zone  of  shared 
prosperity  and  stability  between  the  EU  and  its  neighbours,  on  the  basis  of 
commitments agreed by both sides in line with the principles of joint ownership. It 
offers a stake in the internal market and support in meeting EU standards, as well as 
assistance with reforms that will stimulate economic and social development. In turn, 
ENP partners make precise, monitorable commitments to strengthen the rule of law, 
democracy and respect for Human Rights, to promote economic reforms, to stimulate 
employment and social cohesion, and to co-operate on key foreign policy objectives 
(counter-terrorism,  non-proliferation  of  weapons  of  mass  destruction).  The 
partnership is designed to reward progress with greater incentives, which are entirely 
distinct from any prospect of accession. The ENP also helps address concerns within 
the EU about illegal migration, border management and organised crime. 

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Apart from Croatia which has already been granted candidate country status, and benefits from all three 
pre-accession financial instruments as well as the CARDS regional programme 
COM(2004) 373 final 

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In 2005, further progress has been made in finalising Action Plans with the countries 
covered by the European Neighbourhood Policy, notably on market economy status, 
visa  facilitation  and  energy  dialogue  with  Ukraine,  setting  up  a  border  monitoring 
mission on the Moldova-Ukraine border, as well as strengthening and extending the 
scope  of  the  political  dialogue  with  a  number  of  Mediterranean  countries.  New 
Action  Plans  are  being  implemented  with  Jordan,  Israel,  the  Palestinian  Authority, 
Moldova  and  Ukraine.  Finally,  negotiations  have  been  launched  with  Georgia, 
Armenia and Azerbaijan. In the Mediterranean region, increased emphasis has been 
given  to  supporting  economic  reforms  initiated  by  the  partner  countries,  funding 
sectoral  policies  (particularly  education  and  health),  and  promoting  democracy, 
Human Rights and good governance. 

2.3 

The ‘Common Spaces’ with Russia 

A single package of road maps was adopted in May 2005 for the creation of the four 
‘Common  Spaces’8  between  the  EU  and  Russia.  These  road  maps  set  out  shared 
objectives for EU-Russia relations, as well as the actions necessary to achieve these 
objectives. In addition, EU co-operation with Russia is pursued in the framework of 
the strategic partnership established between the two. 

2.4. 

The oldest partnership: Africa, the Caribbean and the Pacific  

2005 was also the year in which the Cotonou Agreement was revised. The Cotonou 
Agreement,  which  provides  the  framework  for  relations  with  the  countries  of 
Africa, the Caribbean and the Pacific (ACP), is the EU’s oldest partnership and is 
aimed  at  promoting  the  development  of  a  common  strategy  on  poverty  reduction 
through a true partnership approach. 

Joint  institutions,  including  the  Joint  Parliamentary  Assembly  and  the  ACP-EU 
Council  of  Ministers,  have  played  a  pivotal  role  in  the  partnership  since  the 
beginning, and the association of civil society and other stakeholders has contributed 
to enhancing the effectiveness of ACP-EU co-operation.  

The  social,  economic,  political,  cultural  and  environmental  aspects  of  sustainable 
development have been integrated throughout the Agreement, reflecting the relevant 
international commitments taken by the EU and its ACP partners.  

Moreover,  steady  progress  is  being  made  in  putting  into  place  an  innovative 
economic  and  trade  co-operation  framework  aimed  at  promoting  development  by 
strengthening  regional  economic 
trade  obstacles  and 
promoting the gradual integration of ACP countries into the global economy.  

integration,  abolishing 

To  deliver  on  the  partnership  with  the  ACP  countries,  a  new  European 
Development  Fund  was  agreed  which  will  provide  €22.682  billion  for  the  ACP 
countries in 2007-2013. 

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Common economic space, common space of freedom, security and justice, common space on external 
security, common space on research, education and culture 

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2.5 

Strengthening the partnership with Latin America 

In  May  2005,  the  Foreign  Ministers  of  the  European  Union  met  their  counterparts 
from the Rio Group. Discussions focused on regional integration processes in Latin 
America,  social  inequality  and  exclusion.  They  also  discussed  preparations  for  the 
September 2005 UN Summit. 

In  December  2005  the  European  Commission  decided  to  give  new  impulse  to  the 
strategic partnership with Latin America by adopting a Communication “A stronger 
partnership between the European Union and Latin America.” 

Negotiations have continued on an association and free trade agreement between the 
EU  and  Mercosur  and  preparatory  steps  were  taken  for  agreements  with  Central 
America and the Andean Community. 

3. 

AN INCREASING POLITICAL DIMENSION 

3.1. 

Instruments to promote democracy and Human Rights 

This  priority  is  reflected  in  all  the  Agreements  concluded  and  is  translated  into  the 
political  dialogue  at  country  and  regional  level,  as  well  as  the  geographical  co-
operation  programmes.  The  European  Initiative  for  Democracy  and  Human 
Rights (EIDHR)9 is mainly targeted at countries that are most in need of support in 
these  areas:  its  main  beneficiaries  are  civil  society  organisations  engaged  in  these 
areas. In 2005, €126.7 million were spent, mostly to keep funding projects launched 
in the two previous years. Projects included support for the work of the Office of the 
High Commissioner for Human Rights, the Council of Europe, the special courts for 
former  Yugoslavia,  Sierra  Leone  and  Cambodia,  as  well  as  projects  for  the 
promotion of democracy in Belarus10 and other initiatives in support of the rights of 
indigenous peoples. With a total amount of €10 million, specific priority was given 
to  Iraq  in  2005.  Projects  were  identified  within  the  UN  trust  funds  specifically 
targeting the constitutional process, training of domestic election observers and civil 
society organisations.  

The  EU  is  increasingly  seen  as  a  key  player  in  the  field  of  election  observation. 
When  launching  an  Election  Observation  Mission  (EOM),  the  Commission,  the 
European  Parliament  and  the  Council  work  closely  together  to  assess  the  extent  to 
which elections are “free and fair”. The number of EOMs has increased in 2005 and 
will  continue  to  increase  in  2006.  About  1  000  observers  were  deployed  in  2005, 
compared with 632 in 2004. 

Election Observation Missions took place for presidential or parliamentary elections, 
or  referenda,  in  Afghanistan,  Burundi,  Guinea-Bissau,  Lebanon,  Liberia,  Ethiopia, 
the Democratic Republic of Congo, Venezuela and Sri Lanka. In all these missions, 
the  EU  has  gained  visibility  while  becoming  an  increasingly  critical  actor  in  the 

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including the European Humanities University in Vilnius providing higher education in Belarusian on 
democracy and Human Rights related issues 

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reinforcement of the democratic process. Missions were also in preparation at the end 
of 2005 for deployment in 2006 (West Bank and Gaza Strip, Uganda and Haiti). 

In  addition  to  EOMs  as  such,  financial  support  for  electoral  processes  was  also 
provided through projects in Asian and ACP countries. 

3.2. 

Creating a framework for political dialogue 

In the case of the ACP countries, the revision of the Cotonou Agreement signed in 
June  200511  provided  the  opportunity  to  enhance  the  political  dimension  of  the 
partnership by means of a more systematic, formal, effective and results oriented 
political  dialogue  based  on  the  well  established  principles  of  partnership  and 
ownership.  

The ACP-EU partners also introduced a reference to co-operation in countering the 
proliferation of weapons of mass destruction. This constitutes a real breakthrough 
in the area of international relations. A reference to the International Criminal Court 
and the Statute of Rome has also been introduced into the Agreement, demonstrating 
partners’ common commitment to the institutions of global governance. Furthermore, 
the  revised  Agreement  provides  for  a  clause  confirming  ACP-EU  international  co-
operation in the fight against terrorism. Strengthening partner countries’ ability to 
counter  terrorism  must  be  financed  by  resources  other  than  those  intended  for  the 
financing of ACP-EC development cooperation12. 

3.3.  Migration and asylum issues in the frame of development policy 

This  much  debated  issue  requires  policies  and  aid  which  address  both  the 
opportunities and the difficulties it generates. To this end the European Council has 
repeatedly underlined the need for a comprehensive approach to migration.  

At the policy level in the follow-up to the ‘Hague programme’ of 2004, the EU has 
shaped  its  migration  policy  further  with  regard  to  third  countries.  National  and 
regional  programmes  such  as  MEDA  or  TACIS  provide  the  core  funding  for 
migration  and  asylum  projects.  Established  in  200413,  the  AENEAS  thematic 
programme  is  complementary  to  the  geographic  programmes:  it  provides  financial 
and technical assistance to third countries in support of their efforts to ensure more 
effective  management  of  all  aspects  of  migration  flows.  The  first  round  of  projects 
was selected during 2005 for a total amount of €30 million of which approximately 
€16  million  were  earmarked  for  the  Mediterranean  region.  The  second  ‘Call  for 
Proposals’  was  published  in  December  2005  with  a  total  budget  of  €40.3  million. 
Geographic  emphasis  will  be  on  the  CIS  countries,  the  Mediterranean  and  Sub-
Saharan Africa. 

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Ratifications have to proceed. The agreement should enter into force on the 1st January 2008 
Revised  Cotonou  Partnership  Agreement  :Council/Commission  Joint  Declaration  on  Financial  and 
Technical assistance in the area of cooperation in the fight against terrorism and art. 11a) inserted in the 
Revised Cotonou Partnership Agreement 
Regulation (EC) N° 491/2004 

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With  regard  to  asylum,  the  Commission  adopted  a  Communication  on  Regional 
Protection Programmes on 1 September 200514. The first pilot programmes are to 
be  developed  in  Tanzania  and  in  the  Western  Newly  Independent  States  (NIS),  in 
close partnership with the third countries involved and the UNHCR, so that refugees 
who  require  protection  are  able  to  access  it  quickly  and  in  a  form  most  closely 
matching their needs. 

4. 

MORE, BETTER, FASTER AID – EUROPE DELIVERS 

4.1. 

The issue of aid effectiveness 

The process of increasing aid effectiveness concentrates on simple but practical ways 
of harmonising the preparation of country strategies, the implementation of aid and 
the  way  in  which  its  use  is  reported,  of  implementing  more  reliable  systems  and 
procedures in beneficiary countries and more co-ordination between donors. Partner 
countries  take  the  key  role,  undertaking  to  improve  their  operational  development 
strategies,  strengthen  their  public  finance  management  and  national  procurement 
systems,  and  enhance  monitoring  and  audit  practices.  This  allows  donors  to  co-
ordinate  their  activities  better,  channelling  more  assistance  through  the  national 
budget  and  minimising  reporting  requirements.  The  transaction  costs  for  partner 
countries  are  reduced,  freeing  up  scarce  local  management  and  administrative 
capacity  to  work  on  national  priorities.  A  significant  aspect  of  this  initiative  is  the 
move  towards  providing  aid  in  the  form  of  direct  budget  support,  so  that  it  is 
administered entirely within the partner country’s own systems. 

The  Commission’s  efforts  to  step  up  co-ordination  with  Member  States  (European 
Consensus on Development) and other donors is illustrated by the close collaboration 
after  the  Tsunami  with  governments,  civil  society  in  the  affected  countries, 
international  NGOs  and  financial  institutions.  In  helping  to  co-design  delivery 
mechanisms,  such  as  reconstruction  trust  funds  with  governments  and  the 
international community, the EC ensured that affected communities were also fully 
involved in designing reconstruction projects. 

The  Paris  Declaration  of  2  March  2005  on  Aid  Effectiveness15  is  an  agreement 
between nearly 100 countries – representing recipients of aid and donors, including 
the 25 Member States and the Commission – and over 25 development agencies to 
provide  aid  in  a  way  that  best  supports  the  realisation  of  the  Millennium 
Development Goals by 2015. The Paris Declaration established a commitment to set 
and  track  targets  using  12  Indicators  of  Progress16.  The  targets  and  indicators  are 
designed  to  monitor  progress  at  the  global  level  among  the  signatories  of  the 
Declaration. 

The  12  indicators  track  progress  following  the  five  partnership  commitments 
included in the Paris Declaration: ownership of the partner country; alignment of the 
donors on the countries’ national development framework; harmonisation of donors’ 
actions; management for results and mutual accountability of donors and partners for 

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COM(2005) 388 final 
http://www.oecd.org/DATAOECD/11/41/34428351.pdf 
DAC. CHAIR (2005) 12 /REV.1  

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the results. The EU is committed to a timely implementation of the Declaration. The 
Commission  will  be  expected  to  report  on  progress  achieved  in  respect  of  the  aid 
effectiveness  agenda  at  EU  level  and  to  submit  a  report  on  2005  country  level 
implementation to the Council. To that end, it has developed a simple interactive tool 
for reporting progress on alignment and harmonisation. 

4.2. 

Evaluation 

Evaluation aims at increasing the impact of assistance, and in 2005 the programme to 
improve  the  methodology  of  the  evaluation  function  was  finalised.  Eleven  new 
evaluations were launched in 2005; several others are underway, including two major 
joint  evaluations,  one  on  general  budget  support  and  the  other  on  co-ordination, 
complementarities  and  coherence.  The  main  evaluation  findings  in  2005  concerned 
two countries (Benin, Ghana), two regions (the Caribbean and Latin America), and 
one  sector  (private  sector  development).  As  an  example,  the  evaluation  of  the 
Commission’s  support  to  Ghana  showed  it  is  mainly  visible  in  terms  of  increased 
access to safe water and sanitation and to basic education and health services for the 
poorest  segments  of  the  population.  In  general,  however,  evaluations  point  to  long 
delays  in  implementation  and  highlight  the  rigidity  and  slowness  of  Commission 
procedures.  Two  evaluation  reports  on  the  EIHDR,  as  well  as  a  study  on  the 
suitability of its indicators, were completed in 2005 with positive global conclusions. 

4.3.  Management issues 

In  2005  the  Commission  continued  to  shift  its  focus  from  input  to  outcome  and 
impact  issues  as  they  affect  the  process  of  delivering  aid.  The  quality  focus  is  a 
continuation  from  the  reforms  of  external  assistance  management  that  were 
implemented over the preceding four years (2001-2004).  

The  outcome  of  implementing  these  reforms  was  charted  in  a  public  report 
Qualitative  assessment  of  the  reforms  in  the  management  of  external  assistance17 
published  in  July  2005.  This  report  reviews  operational,  organisational  and 
methodological reforms in assistance delivery, and assesses the effects and results. 

The effect of the reforms has been to ensure a constant improvement in the speed of 
aid delivery, with higher payments levels each year and shorter average duration of 
aid implementation.  

As a consequence of the completion of the devolution process – giving management 
responsibility  for  most  development  programmes  to  the  Commission’s  in-country 
Delegations  –  the  headquarters  structure  of  EuropeAid  Co-operation  Office  was 
modified  in  March  2005  to  provide  more  help  and  support  to  Delegations  and  to 
reflect the transfer of the Western Balkan countries to DG Enlargement, in the light 
of the prospect of their future membership of the EU. 

4.4. 

Results 

In  2005  the  European  Commission  has  acted  with  record  speed  and  efficiency  to 
implement  programmes,  so  that  the  money  swiftly  reaches  those  who  need  it.  The 

17 

SEC(2005) 963 

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results  show  the  value  of  reforms  introduced  in  2000  to  improve  the  way  in  which 
the Commission’s aid to third countries is disbursed. 

In  2005,  commitments  rose  to  €8  billion,  more  than  16%  higher  than  in  2004. 
Commitments  to  countries  in  Africa,  the  Caribbean  and  Pacific  rose  by  over  €1 
billion  and  almost  reached  the  record  level  of  2003.  Commitments  to  Asia  also 
recorded a sharp rise (almost 50%) over 2004. €6.2 billion in development aid was 
disbursed, up from €5.7 billion the year before. 

EuropeAid - Evolution of Regional breakdown 2001-2005. Commitments  (€ million)
External assistance managed by EuropeAid (plus CARDS)

Thematic

ACP (1)

South Africa

Mediterranean

Asia

Latin America

NIS

Balkans

2005
2004
2003
2002
2001

-

500

1.000

1.500

2.000

2.500

3.000

3.500

4.000

Balkans

NIS

2001

2002

2003

2004

2005

 705 

 658 

 620 

 663 

 519 

 426 

 432 

 504 

 504 

 515 

Latin 
America
 301 

 333 

 342 

 312 

 329 

Asia

 407 

 575 

 558 

 611 

 834 

Mediterra
nean
 709 

South 
Africa
 121 

 762 

 782 

1 003 

1 075 

 124 

 127 

 135 

 155 

ACP (1)

Thematic

Total

1 971 

2 169 

3 811 

2 685 

3 546 

 928 

 949 

 943 

1 001 

1 055 

5 568 

6 002 

7 687 

6 916 

8 027 

Commitments 2005 made by EuropeAid + DG Enlargement (CARDS)
South Africa contribution to peace facility excl.
Administrative costs not managed by EuropeAid excl.
Regional breakdown following geographic and thematic budget lines
(1) ACP Region includes EDF + Bananas budget line 2001-2005

Thanks  to  the  reforms,  the  Commission  is  processing  the  money  pledged  more 
effectively,  both  in  its  own  internal  procedures  and  in  the  implementation  of 
programmes themselves. A comparison between 2001 and 2005 shows commitments 
up  by  44%  and  payments  up  by  50%.  The  figures  signify  that,  on  average, 

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implementation takes 3.32 years, down from 3.55 years in 2004 and nearly five years 
in 2000. 

EuropeAid - Evolution of Regional breakdown 2001-2005. Payments (€ million)
External assistance managed by EuropeAid (plus CARDS)

Thematic

ACP (1)

South Africa

Mediterranean

Asia

Latin America

NIS

Balkans

2005
2004
2003
2002
2001

-

500 

1.000 

1.500 

2.000 

2.500 

Balkans

NIS

2001

2002

2003

2004

2005

 845 

 619 

 425 

 510 

 345 

 402 

 384 

 396 

 359 

 432 

Latin 
America
 152 

 182 

 290 

 314 

 376 

Asia

 383 

 455 

 470 

 526 

 681 

Mediterra
nean
 488 

South 
Africa
 99 

 707 

 700 

1 125 

1 122 

 119 

 118 

 116 

 138 

ACP (1)

Thematic

Total

1 814 

1 968 

2 366 

2 472 

2 468 

 771 

 815 

 851 

 790 

 932 

4 109 

4 630 

5 191 

5 701 

6 149 

Payments 2005 made by EuropeAid + DG Enlargement (CARDS)
South Africa contribution to peace facility excl.
Administrative costs not managed by EuropeAid excl.
Regional breakdown following geographic and thematic budget lines
(1) ACP Region includes EDF + Bananas budget line 2001-2005

The  amount  of  ODA  managed  by  the  Commission  and  destined  for  low-income 
countries, including the least developed, again increased substantially. It has grown 
from about €1.5 billion in 2000 to more than double – about €3.2 billion – in 2005. 
As  a  percentage,  it  went  from  32%  in  2000  to  45.8%  in  2005.  This  trend  should 
continue, since over half the new commitments in 2005 were for the benefit of these 
countries. 

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2000-2005 Poverty focus

Net Disbursements ODA by the Commsission

Commiments

39,5%

37,9%

26,7%

15,1%

11,2%

5,3%

43,1%

36,9%

32,7%

16,3%

10,4%

44,5%

43,7%

35,8%

30,7%

33,4%

31,0%

46,0%

33,4%

28,6%

21,8%

22,4%

22,3%

8,7%

10,3%

12,6%

2,5%

3,0%

2,9%

3,0%

48,8
%

38,5
%

24,7
%
22,7
%

10,2
%

3,8
%

2001

2002

2003

2004

2005

2005

OLIC

LMIC

UMIC

REGION / UNALLOC

LDC+OLIC

50%

40%

30%

20%

10%

0%

45,8%

32,0%

21,6%

18,4%

10,4%

3,1%

2000

LDC

2000-2003 EC reporting to DAC (following the same method: LDCs/LICs country specific allocations -including 
EIB- /Total disbursements)
2004 Annual Report information
2005 Annual Report exercise (according to DAC List of recipients available at December 2005)

LDC : Least Developed Countries

OLIC : Other Low Income Countries

LMIC : Lower Middle Income Countries

UMIC : Upper Middle Income Countries
REGION / UNALLOC : Regional Programmes and Unallocated

Speed and efficiency are important, but the results obtained in helping those in need 
are  what  counts.  The  findings  of  the  Commission’s  results-oriented  monitoring 
system, which is based on regular on-site assessments by independent experts, show 
a clear trend towards steady improvement in quality. In particular, the scores for both 
the  efficiency  and  sustainability  of  projects  and  programmes  have  increased 
substantially since 2001. 

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Sectoral Breakdown

9. Other/Unallocated : 
Admin. Costs, Support to 
NGOs, Unspecified;  191 
M€; 2%

7. Emergency assistance, 
Reconstruction Relief;  771 
M€; 10%

5. Budget Support, Food 
Aid, Food Security; 1 266 
M€; 16%

4. Multisector/Crosscutting 
: Environment, Women in 
development, Other;  519 
M€; 6%

3. Production : Agriculture, 
Forestry & Fishing, 
Industry, Mining & 
Construction, Trade & 
Tourism;  388 M€; 5%

2. Economic Infrastructures 
& Services : Transport, 
Communications, Energy, 
Other services; 1 321 M€; 
16%

1. Social Infrastructures: 
Education, Health, Water, 
Government & Civil 
Society, Other ; 3 563 M€; 
45%

Commitments 2005 made by EuropeAid + DG Enlargement (CARDS)

South Africa contribution to peace facility excl.

Administrative costs not managed by EuropeAid excl.

The Commission is determined to improve its management of the funds for which it 
is  responsible  still  further,  and  has  proposed  simplifying  both  the  legal  basis  for 
external assistance (the instruments) and its own internal procedures.  

Intense  activity  took  place  in  2005  in  preparing  the  next  generation  of  aid 
programmes  which  will  be  implemented  in  the  framework  of  the  Financial 
Perspectives  2007-2013.  In  co-operation  with  the  competent  authorities  and  the 
relevant stakeholders of the beneficiary countries, as well as with the Member States 
and other donors, the Commission has started to prepare the Strategy Papers which 
will  guide  the  programming  process  for  the  different  countries  and  regions.  This 
process will be completed in 2006, so that the actions planned can be implemented 
from January 2007. 

The  objectives  and  principles  set  out  in  the  December  2005  statement  on 
development  policy,  the  European  Consensus  on  Development,  have  inspired  the 
preparation  of  these  country  and  regional  Strategy  Papers.  Particular  attention  has 
been paid to improving aid effectiveness by translating into the programming process 
the relevant commitments entered into by the EU and its Member States. 

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