Report from the Commission to the Council and the European Parliament - Annual Report 2008 on the European Community's Development and External Assistance Policies and their Implementation in 2007 {SEC(2008)2062}
Date: 2008-06-23
Institutions: European Commission
Subjects: activity report, aid evaluation, aid policy, cooperation policy, developing countries, development aid, impact study

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 23.6.2008 
COM(2008) 379 final 

REPORT FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN 
PARLIAMENT 

Annual Report 2008 on the European Community's Development and External 
Assistance Policies and their Implementation in 2007 

{SEC(2008)2062} 

 (presented by the Commission) 

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REPORT FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN 
PARLIAMENT 

Annual Report 2008 on the European Community's Development and External 
Assistance Policies and their Implementation in 2007 

The  EU  is  continuing  to  consolidate  its  status  as  the  world's  leading  donor,  giving  60%  of 
total  official  development  assistance.  In  2007  the  Commission  rapidly  improved  the 
effectiveness  of  its  assistance  following  the  major  innovations  in  policy  and  procedures 
introduced over the past two years: adoption of the European Consensus on Development in 
December  2005,  a  European  Consensus  on  Humanitarian  Aid  in  December  2007,  and 
overhaul of the instruments of the external assistance programmes. 

Policy Coherence 

The first Report on Policy Coherence for Development (September) highlights the interactions 
and complementarities between development policy and twelve other EU policies that have an 
impact on developing countries. Trade is seen as a key element in any coherent development 
strategy.  In  that  context,  access  to  the  EU  market  is  generally  favourable  to  developing 
countries. In agriculture, important progress has been made on export subsidies, which have 
been drastically reduced through the successive Common Agricultural Policy (CAP) reforms. 
A new generation of fisheries agreements focuses more on supporting the fisheries sector of 
partner  countries.  Migration  and  research  are  viewed  as  policy  areas  with  tremendous 
potential  for  developing  countries.  On  climate  change,  all  efforts  are  being  made  to  ensure 
that  measures  directly  benefit  the  poorest  and  most  vulnerable  developing  countries. 
Environmental  integration  efforts  are  directed  at  addressing  environmental  protection  and 
sustainable natural resources management both through specific actions and as a cross-cutting 
theme,  including  the  preparation  of  country  environmental  profiles  and  the  use  of  strategic 
environmental assessments. 

Gender equality is one of the key considerations in external assistance. A Communication on 
Gender Equality and Women's Empowerment in Development Cooperation adopted in March 
introduces, for the first time, a strategy at the European level. Gender mainstreaming is made 
more effective. It also proposes specific actions in five fields and describes the various ways 
of  promoting  gender  equality  through  the  new  aid  delivery  methods.  An  action  plan  will 
ensure  its  follow-up.  Moreover,  in  accordance  with  the  European  Consensus,  external 
assistance actions must take children's rights into consideration. This approach is beginning to 
bear fruit. Several country strategy papers adopted in 2007 show real inclusion of children's 
rights in how activities and target populations are addressed. The Commission and UNICEF 
have  partnered  to  prepare  a  toolkit  to  address  and  mainstream  children's  rights  in  European 
development cooperation and external relations. A Communication on a European Agenda for 
Culture  in  a  globalizing  world  was  adopted  in  May.  This  highlights  the  role  of  culture  in 
Europe and in EU external relations and proposes objectives for a new common EU agenda 
for culture. 

Working Together 

Responding  to  the  call  for  more  coordination  and  harmonisation  among  EU  donors,  a  new 
code of conduct for the division of labour between the Commission and the Member States 

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introduces specific principles to help in deciding the best use of the EU's collective capacities 
and  resources  in  support  of  partner  countries.  These  innovations  are  a  milestone  in  the 
implementation  of  the  Paris  Declaration  on  Aid  Effectiveness  and  a  landmark  in  the 
implementation of the EU's promise to deliver "more, better and faster aid". Implementation is 
already  taking  place  through  consultations  at  field  level  between  Commission  Delegations, 
Member States, partner countries and other donors. 

Co-financing  with  Member  States  is  now  possible,  specifically  in  fund  management  and 
delegated  co-operation.  In  addition,  the  Commission  is  preparing  a  Compendium  on  Best 
Practices in Division of Labour. This will contain case studies of best practices and identify 
bottlenecks and drivers of division of labour, and attempt to  develop indicators. A study on 
EU  co-financing  provides  information  on  “who’s  doing  what  with  whom  and  how”, 
indentifying  key  lessons  learned  from  bilateral,  EC,  and  decentralised  co-financing 
experiences;  while  determining  possible  future  actions  for  developing  a  comprehensive  EU 
co-financing strategy. 

Relations  between  the  United  Nations  and  the  EU  now  cover  virtually  all  areas  of  the  EU's 
external  relations  and  span  the  entire  scope  of  the  UN  Charter.  2007  marked  the  mid-way 
point towards the 2015 target date for the Millennium Development Goals (MDGs). The UN 
Secretary-General launched the MDG Africa Steering Group to devise strategies and prepare 
actions  to  bring  sub-Saharan  Africa  in  particular  on  track  to  meet  the  MDGs.  President 
Barroso is a member of this Group where the Commission actively shared its experience and 
views.  In  addition,  2007  was  the  first  full  year  of  operation  of  the  new  UN  Peacebuilding 
Commission (PBC). Together with other EU actors, the Commission participated in its work 
both  on  country-specific  and  thematic  issues.  The  PBC  adopted  integrated  peacebuilding 
strategies for Burundi and Sierra Leone and held several debates on thematic issues. 

Better Strategies 

Following  the  approval  in  late  2006  of  a  simplified  range  of  financing  instruments  for 
assistance from the EC Budget, a wide range of thematic and country/regional strategies for 
the 2007-2013 period was agreed. 

The  EU  recognises  the  vital  contribution  of  non-state  actors  (NSA)  as  strategic  partners  in 
political,  social  and  economic  dialogue  and  as  key  aid  delivery  actors.  It  promotes 
constructive dialogue with all types of NSA and local authorities. The strategy for 2007-2010 
for  the  new  thematic  programme,  Non  State  Actors  and  Local  Authorities  in  Development, 
was adopted in June following consultation with civil society and dialogue with the European 
Parliament.  Its  overarching  objective  is  poverty  reduction  in  the  context  of  sustainable 
development,  including  pursuit  of  the  MDGs.  Policy  evolution,  as  regards  participatory 
approaches, resulted in several important innovations, including relaxing eligibility criteria for 
all types of NSA and local authorities as well as stakeholders in partner countries. To ensure 
partner  country  stakeholder  participation,  Commission  Delegations  will  assume  greater 
responsibility  for  country-level  interventions,  including  the  launching  of  local  calls  for 
proposals. 

A thematic strategy for human and social development, Investing in People, was adopted in 
May.  Driven  by  the  ambition  to  help  partner  countries  achieve  the  MDGs,  the  strategy 
proposes  to  support  activities  under  four  main  pillars:  good  health  for  all,  education, 
knowledge  and  skills,  gender  equality,  and  other  aspects  of  human  and  social  development 
with an overall budget of €1.06 billion in 2007 -2013. The Commission played an increasingly 

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central  and  influential  role  internationally  in  education  and  health,  working  with  Member 
States and other donors and stakeholders. It organised a  high level education event Keeping 
Our Promises on Education in May with the World Bank and the UK Government to mobilise 
political commitment. As in previous years, the Commission played a key role in the Global 
Fund to fight HIV/AIDS, Tuberculosis and Malaria, contributing €100 million in 2007.  

The  thematic  strategy  for  the  environment  and  the  sustainable  management  of  natural 
resources (ENRTP) integrates environmental protection into development and other external 
policies. It will also help promote EC environmental and energy policies abroad. The strategy 
addresses  challenges  that  profoundly  affect  the  lives  of  poor  people,  in  particular  degrading 
ecosystems, climate change, poor global environmental governance and inadequate access to 
(and security of) energy supply. It is characterised by flexibility in the choice of implementing 
partners and includes two new initiatives, the Global Climate Change Alliance and the Global 
Energy  Efficiency  and  Renewable  Energy  Fund.  Climate  change  impacts  are  a  reality,  will 
increase over time, and could undermine development efforts. Adaptation to climate change is 
therefore necessary for sustainable development (see feature article for details). 

The  launch  of  the  Instrument  for  Stability  (IfS)  enhanced  the  Commission’s  crisis  response 
capacity  considerably,  in  addition  to  introducing  an  allocation  for  crisis  preparedness  and 
creating  the  possibility  to  address  longer-term  trans-regional  security  threats.  The  new 
instrument  represents  a  considerable  increase  in  financial  allocations  (an  average  of  €200 
million per year during the period 2007-2013) and in the duration of programmes. 

The  European  Instrument  for  Democracy  and  Human  Rights  (EIDHR)  complements  and 
reinforces  action  on  human  rights  and  democracy  under  other  instruments  (€1,104  billion 
2007-2013). It tackles human rights issues at the front line, with particular reference to human 
rights  defenders,  torture  and  ill-treatment,  and  democratic  reform  and  human  rights  at  local 
level.  For  2007-2010,  EIDHR  aims  to  enhance  respect  for  human  rights  in  countries  and 
regions where they are most at risk; strengthening the role of civil society; supporting actions 
in  areas  covered  by  EU  Guidelines  (e.g.  the  death  penalty,  children  and  armed  conflict); 
strengthening  international  and  regional  frameworks  for  the  protection  of  human  rights, 
justice, the rule of law and the promotion of democracy; while also enhancing the reliability 
and transparency of electoral processes. In 2007 the EU successfully implemented ten election 
observation  missions  with  a  total  of  some  800  observers  deployed  on  the  ground.  These 
missions played a key role in providing an assessment of the electoral process, particularly in 
countries where the election was controversial (e.g. Nigeria, Kenya). 

Turning to the geographic programmes, this was the first year of implementing assistance to 
the  EU's  neighbours  in  the  east  and  in  the  south  through  the  European  Neighbourhood  and 
Partnership Instrument (ENPI). This provides the framework for EC assistance in support of 
the  relations  with  17  countries  and  for  cross-border  co-operation  programmes  on  the  EU's 
external border. The introduction of a policy-driven single instrument, managed on the basis 
of  uniform  principles  for  all  countries  and  endowed  with  increased  resources,  allowed  for  a 
more ambitious and coherent policy towards the EU's neighbours. The ENPI budget for 2007–
2013 stands at €12 billion – a 32% increase in re al terms from the previous budget period. All 
the  country  strategy  papers  for  2007-2013,  as  well  as  the  regional,  interregional  and  cross 
border cooperation strategy papers, were adopted in March. To enhance ENPI's effectiveness, 
the Commission established additional financial mechanisms. A Governance Facility provides 
additional  support  to  countries  making  particular  progress  in  implementing  reforms.  A 
Neighbourhood  Investment  Facility  pools  grant  resources  to  leverage  investment  in  partner 
countries from European development and finance institutions. 

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Cooperation  with  Asia,  Latin  America  and  South  Africa  is  financed  through  the  Instrument 
for Development Cooperation (DCI) (total amount: €16.897 billion for the 2007-2013 period). 
This  assistance  should  support  poverty  eradication  and  the  achievement  of  the  MDGs.  For 
Asia, the Commission adopted 18 individual country strategies and a regional strategy for the 
period  2007-2013  with  an  overall  budget  of  some  €5.2  billion,  and  implementation  is 
underway. Although during the year Asia progressed towards the achievement of the MDGs, 
poverty remains a significant challenge, as the region is still home to two thirds of the planet’s 
poor people. Nevertheless, in 2007 Asia surpassed NAFTA to become Europe’s main trading 
partner,  accounting  for  a  third  of  Europe’s  total  trade  flows.  Moreover,  European  direct 
investment  in  Asia  amounts  to  a  third  of  European  investment  abroad,  and  is  growing.  The 
EU  therefore  also  increasingly  finances  programmes  for  some  Asian  countries  through  the 
Industrial  Cooperation  Instrument,  which  in  addition  to  traditional  developed  partners  (e.g. 
Japan),  now  includes  five  other  countries  and  territories  in  the  region.  The  Commission’s 
2007-2013  strategy  for  Central  Asia,  adopted  in  April,  foresees  a  doubling  of  budget 
allocations  to  €750  million.  Eigh ty  percent  of  EC  assistance  is  directed  to  bilateral 
cooperation, taking into account the policy agendas of the Central Asian countries and their 
distinct political and social realities, with a focus on attainment of the MDGs. Twenty percent 
goes  to  regional  challenges,  such  as  the  environment  and  water  management,  energy  and 
transport, border management, and combating drug trafficking. The alignment of priorities in 
these sectors with the regional ENPI strategy enables Central Asian partners to participate in 
ENPI regional projects. With regard to Latin America, the main objectives include supporting 
social  cohesion  and  regional  integration,  the  reinforcement  of  good  governance  and  public 
institutions,  a  common  EU-Latin  America  higher  education  area,  and  promoting  sustainable 
development.  Within  this  framework,  several  strategic  priorities  were  established,  including 
maintaining the high level of political dialogue, both at regional and sub-regional levels. For 
Latin America, 21 strategy papers were adopted for the 2007-2013 time frame. Aid directly 
targeting  the  basic  health  and  education  sectors1  reached  some  17%2  of  total  commitments 
under  the  relevant  DCI  geographical  programmes  (Asia,  Latin  America  and  South  Africa), 
even without including general budget support with conditionality linked to these sectors. The 
Commission is thus well on track to reach, by 2009, the 20% goal agreed with the adoption of 
the DCI regulation for assistance to these sectors under the DCI country programmes. 

For some key countries, the situation does not yet allow for the preparation of a strategy. The 
Commission has supported Iraq reconstruction since 2003, concentrating on fighting poverty 
by alleviating the difficulties encountered by the Iraqi people. The programme covers all areas 
of activity, from basic services to support to the political process, with a special emphasis on 
elections. So far, most EC aid has been channelled through the International Reconstruction 
Fund  Facility  for  Iraq.  This  multilateral  approach  has  facilitated  the  deployment  of  EC 
support  in  challenging  conditions  where  direct  Commission  actions  would  not  be  feasible. 
Efforts have also been made to launch bilateral actions with Iraq such as provision of electoral 
observation, support to civil society organisations in the field of human rights and technical 
assistance to the government. The Commission remains the largest donor to the Palestinians 
with  an  unprecedented  donation  of  €550  million.  In  June  the  EU  resumed  normal  relations 
with  the  Palestinian  Authority,  including  financial  assistance.  The  Temporary  International 
Mechanism continued to provide vital assistance directly to the population. The Commission 
also  continued  to  respond  to  the  difficult  socio-economic  situation  in  Gaza,  but  access 
problems hamper the assistance. 

1 
2 

OECD DAC sector codes 112 (primary education), 113 (secondary education) and 122 (basic health) 
See also table 6.14 

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Following  the  adoption  in  December  2005  of  a  common,  comprehensive  EU  Strategy  for 
Africa, in 2007 the EU and the African Union (AU) took the partnership one step further in 
the  build-up  to  the  second  EU-Africa  Summit,  held  in  Lisbon  in  December.  For  two  days, 
leaders  discussed  several  key  political  issues,  including  security,  trade,  regional  integration 
and climate change. The participants highlighted the positive developments in Africa in recent 
years – more growth, more democratic elections, more confidence on the international stage, 
and  the  emergence  of  the  AU  as  a  strong  and  independent  international  actor  and  a  key 
partner for the EU. The leaders adopted the Lisbon Declaration, a Euro-African consensus on 
values, common interests and strategic objectives. The main policy documents adopted were 
the  Joint  Africa-EU  Strategy  and  a  first  action  plan  covering  priority  actions  under  eight 
thematic  partnerships  for  2008-2010.  On  this  basis,  the  EU  and  Africa  will  now  gradually 
move EU-Africa dialogue and cooperation “beyond development” (working more closely on 
issues  such  as  trade,  peace  and  security,  and  the  environment),  “beyond  Africa”  (jointly 
addressing  issues  such  as  UN  reform,  the  situation  in  the  Balkans,  or  climate  change)  and 
“beyond  institutions”  (a  stronger  role  for  non-state  actors).  The  challenge  now  is  to  deliver 
tangible  results.  The  programming  of  cooperation  with  South  Africa  for  2007-2013  (€980 
million)  was  concluded  with  the  adoption  of  a  country  strategy  paper  and  a  multi-annual 
indicative  programme.  The  strategy  paper  was  the  first  to  be  prepared  jointly  by  the 
Commission, South Africa and eleven EU Member States. 

Better Delivery 

Turning  to  implementation,  the  ODA  figures  were  again  impressive  –  €9.949  billion  in 
commitments  and  €8.493  billion  in  disbursement s.  The  main  feature  was  the  success  in 
committing all the remaining funds – €3.64 billion – in the previous European Development 
Funds  before  the  tenth  Fund  comes  into  effect.  This  has  never  been  achieved  before. 
Disbursements from the EDF were €2.92 billion a nd would have been higher if the funds had 
been available. 

The Commission's external assistance is implemented through three main delivery modalities. 
The  choices  depend  on  a  joint  Commission/government  analysis  of  the  country  and  sector 
environment.  The  project  approach  is  used  to  support  non-state  actors,  for  regional 
programmes,  or  where  conditions  do  not  allow  for  use  of  government  systems.  The  sector 
approach  aims  to  underpin  a  sector  policy  and  a  strategic  framework  monitored  through 
performance  criteria  and  indicators.  The  EC  also  supports  national  or  macro  level  goals 
expressed  in  national  policy  and  strategy  documents  through  general  budget  support,  with 
funds  transferred  to  the  national  treasury  of  the  beneficiary  country.  The  sectoral  approach 
and budget support follow the orientations of the European Consensus on Development as a 
preferred aid modality. 

implementation  structures,  and  favour  a  coordinated  approach 

In addition, the Paris Declaration on Aid Effectiveness has given positive momentum to these 
forms  of  aid  delivery,  which  are,  by  their  very  nature,  aligned  with  country  systems,  avoid 
parallel 
to  capacity 
development and the use of joint field missions and shared analysis. The introduction of the 
new  Financial  Instruments  was  an  important  step  in  harmonising  the  use  of  budget  support 
across  different  regions.  This  year,  budget  support  commitments  came  to  €1.79  billion,  or 
23%  of  the  total.  This  is  a  substantial  increase  when  compared  to  2006,  explained  by  an 
increase  in  commitments  in  Asia  and  the  ENP  region.  For  the  EDF,  budget  support 
commitments remained broadly constant, with an increase in general budget support offset by 
a fall in sector budget support. 

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The  MDGs  are  the  key  development  outcomes  that  the  EU,  along  with  the  countries 
concerned and other partners in the development community, wants to achieve between now 
and  2015.  The  Commission  has  worked  with  an  expert  group  including Member  States,  the 
OECD  Development  Assistance  Committee,  UNDP  and  the  World  Bank,  to  develop  a  core 
set of 10 indicators drawn from the MDGs. Six of these indicators are directly related to the 
well-being  of  children,  while  three  have  a  specific  gender  dimension.  The  Commission  is 
preparing  tools  to  measure  the  quantifiable  effects  of  its  operations  in  order  to  report  on 
development  results  and  enhance  accountability  to  the  European  Parliament  and  Member 
States. In September, the Commission launched the pilot phase of systematic use of standard 
result  indicators  in  specific  sectors  which  are  key  areas  for  progress  towards  the  MDGs. 
Quantifiable performance indicators are used to measure the effectiveness of external aid and 
to  appraise  trends  over  a  given  period  of  time.  The  EC's  increasing  support  for  statistics  of 
good quality is instrumental in making pertinent indicators available. 

The Commission monitors its projects both during and after implementation, and also has a 
thorough  system  of  evaluations.  The  Results  Oriented  Monitoring  system  provides  an 
overview  of  how  the  portfolio  is  progressing  towards  results  and  is  based  on  regular  onsite 
assessments  of  ongoing  and  completed  projects  and  programmes.  This  year  the  system 
covered 148 countries and 1630 operations with a total value of nearly €10 billion. Between 
2005  and  2007  scores  have  stabilised.  Relevance  has  increased  as  the  devolution  of  aid 
management  has  led  to  projects  that  respond  better  to  local  needs.  In  some  cases,  however, 
objectives are overambitious. The careful and effective identification and design of a project 
are  key  pre-requisites  for  its  sustainability  after  EC  support  has  ended.  There  is  a  high 
correlation  between  ownership  and  the  effective  participation  of  partners  during  the  design 
phase. More effort is needed to develop phasing-out strategies to improve sustainability. Risk 
management  during  implementation  also  needs  more  attention.  In  addition  to  1421  ongoing 
projects,  198  completed  ones  were  monitored  "ex-post".  The  share  of  projects  classified  as 
(very)  good  and  as  having  (major)  problems,  remains  consistent  for  both  ongoing  and 
completed projects within each region. However, the share of projects performing really well, 
as  well  as  that  of  projects  performing  really  poorly,  becomes  larger  when  ex-post 
measurements are done. Good projects tend to perform better after assistance has ended, while 
those that perform poorly tend to deteriorate. Although most projects have detailed reporting 
systems,  very  few  systematically  record  their  positive  and  negative  experiences  so  as  to 
identify the most appropriate lessons learned. Finally, policy support, ownership and financial 
viability are the most crucial factors for sustainability. 

The  evaluation  programme  covers  both  strategic  and  project  evaluations.  According  to  the 
2007 strategic evaluations, the relevance of Commission programming and implementation is 
generally  good.  The  Commission  response  addresses  the  needs  of  partner  countries  and  is 
coherent  with  EU  goals.  Several  major  positive  impacts  have  been  noted,  e.g.  on  the  social 
sectors  in  India,  economic  stability  in  Jordan  and  Mozambique,  the  water  sector  in  Jordan, 
food security in Mozambique, and economic integration in Central America. However, delays 
in implementation, lack of flexibility and cumbersome procedures lead to recurrent efficiency 
weaknesses.  While  the  high  quality  of  projects  within  some  sectors  (such  as  rural 
development) is recognised, impact on the sectoral policies of partner countries is often poor. 
The  Commission  provides  particular  added  value  in  its  support  for  regional  co-operation 
between partner countries; however, the linkage between national and regional programmes is 
often weak. 

IN  2007,  THE  COMMISSION'S  EXTERNAL  ACTION  WAS  GEARED 

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TOWARDS ACHIEVING THE FOLLOWING OBJECTIVES: 

•  A  renewed  EU  market  access  strategy  taking  into  account  competitiveness, 
social  and  environmental  concerns:  EU  Strategy  on  Aid  for  Trade  adopted  by 
Council in October; Commission and Member States working on concrete follow-
up activities; €16 million earmarked for furthe r integration of ACP states into the 
WTO  and  for  further  support  of  the  enhanced  integrated  framework;  regional 
programming for the 10th EDF is ongoing, with major attention to trade and EPA-
related support. 

•  Concluding  negotiations  on  Economic  Partnership  Agreements:  full  EPA 
initialled  with  all  CARICOM  Member  States;  Pacific  ACP  Interim  Agreement 
signed  by  Papua  New  Guinea  and  Fiji;  Interim  agreements  reached  with  seven 
African  countries,  the  East  African  Community  and  the  Eastern  and  Southern 
Africa  group;  Gabon  and  Congo  Brazzaville  examining  adhesion  to  interim 
agreement; agenda and timetable set for progressing towards a full EPA in 2008. 

•  Reinforcing  the  European  Neighbourhood  Policy.  Prepare  new  arrangements 
with  Ukraine,  Moldova  and  Israel.  Enhancing  the  EU  presence  in  Black  Sea 
cooperation:  negotiations  on  a  new  Enhanced  Agreement  between  the  EU  and 
Ukraine  started  in  March;  Black  Sea  Synergy  regional  cooperation  initiative 
presented in April; first ENP Ministerial Conference with all EU and ENP states 
held  in  September;  Communication  A  strong  European  Neighbourhood  Policy 
issued in December. 

•  Negotiating Association  Agreements with partners in Asia and Latin America. 
Progress  in  negotiations  with  Russia,  China  and  Ukraine:  negotiations  started 
on  Association  Agreements  with  Andean  Community  and  Central  America; 
negotiations  started  with  Ukraine  and  progressed  with  Russia  (including  two 
summit meetings) and China (including one summit meeting). 

•  Continuing  the  European  Security  Strategy  and  stabilisation  efforts  in  the 
Middle  East  and  South  Asia:  UN  plans  to  promote  system-wide  coherence 
supported,  especially  the  launching  of  “Delivering  as  One”  initiatives  in  eight 
pilot  countries;  over  €550  million  made  available  to  the  Palestinian  people  this 
year;  Temporary  International  Mechanism  continued  throughout  the  year  (with 
€350  million  of  EC  funding);  Partnershi p  for  Peace  Programme  continued; 
support to Afghanistan continued (with just under €196 million of EC funding). 

IN  ADDITION  TO  THE  ABOVE-MENTIONED  OBJECTIVES,  THE 
COMMISSION  MADE  PROGRESS  IN  THE  FOLLOWING  FIELDS,  FOR 
WHICH IT HAD ANNOUNCED STRATEGIC INITIATIVES IN 2007: 

•  Establishing  Erasmus  Mundus  II:  Erasmus  Mundus  II  approved  in  July  with 

some €950 million of funding over five years. 

•  A  Communication  on  complementarity,  division  of  labour  and  scaling  up  of 
development aid: EU Code of Conduct on Complementarity and Division of Labour 
in Development Policy adopted on 15 May. 

•  A Communication reviewing the state of play of EU-Africa relations: EU-Africa 

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Partnership  adopted  at  Lisbon  Summit  in  December;  Communication  on  the 
implementation of the Joint EU-Africa Strategy to be published in 2008. 

Table 1 2000-2007 Poverty focus.

Net Disbursements

50%

40%

30%

20%

10%

0%

45.8%

32.0%

21.6%

18.4%

10.4%

3.1%

39.5%

37.9%

26.7%

15.1%

11.2%

5.3%

2000

2001

LDC

43.1%

36.9%

32.7%

16.3%

10.4%

2.5%

2002

OLIC

44.5%

35.8%

43.7%

44.3%

43.6%

44.3%

33.4%

33.5%

32.9%

30.7%

31.0%

21.8%

22.4%

8.7%

3.0%

10.3%

2.9%

24.9%

22.3%

10.8%

8.6%

27.9%

18.1%

10.7%

10.4%

35.0%

26.6%

19.1%

10.0%

9.2%

2003

2004

2005

2006

2007

LMIC

U MIC

REGION / UNALLOC

LDC+OLIC

2000-2003 EC reporting to DAC (following the same method: LDCs/LICs country specific allocations -including EIB- /Total disbursements)
2004 Annual Report information
2005, 2006 Annual Report information revised according to DAC List of recipient available on 2006
2007 Provisional figures Annual Report exercise (According to DAC List of recipient available on 2006)

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

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Table 2 Sectoral Breakdown

9. Other/Unallocated : 
Admin. Costs, Support to 
NGOs, Unspecified,  609 
M€, 6.0%

7. Emergency assistance, 
Reconstruction Relief, 1 
086 M€, 10.8%

6. Action relating to debt, 
23 M€, 0.2%

5. Budget Support, Food 
Aid, Food Security,  977 
M€, 9.7%

4. Multisector/Crosscutting 
: Environment, Other,  912 
M€, 9.0%

3. Production : Agriculture, 
Forestry & Fishing, 
Industry, Mining & 
Construction, Trade & 
Tourism,  731 M€, 7.2%

2. Economic Infrastructures 
& Services : Transport, 
Communications, Energy, 
Other services, 1 448 M€, 
14.4%

Commitments 2007 (Millions Eur)

ODA/OA resources managed by European Commission

Sectoral breakdown per main sector as defined by the DAC

1. Social Infrastructures: 
Education, Health, Water, 
Government & Civil 
Society, Other , 4 304 M€, 
42.7%

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Table 3 European Consensus : Areas relating to EU development cooperation

10. Multi areas, 1 740 M€, 
17.2%

1. Governance and support 
for economic and 
institutional reforms, 1 650 
M€, 16.4%

9. Conflict prevention and 
fragile states, 1 471 M€, 
14.6%

8. The environment and 
sustainable management 
of natural resources,  326 
M€, 3.2%

7. Rural development, 
territorial planning, 
agriculture and food 
security,  805 M€, 8.0%

6. Human and social 
development, 1 042 M€, 
10.3%

Commitments 2007 (Millions Eur)

ODA/OA resources managed by European Commission

2. Trade and regional 
integration,  634 M€, 6.3%

3. Infrastructure and 
transport,  795 M€, 7.9%

4. Water and energy,  779 
M€, 7.7%

5.Social cohesion and 
employment,  847 M€, 
8.4%

EN 

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