Corrigendum : #Commission staff working document - Annex to the Report from the Commission to the Council and the European Parliament - Annual Report 2009 on the European Community's development and external assistance policies and their implementation in 2008 {COM(2009)296}
Date: 2009-06-30
Institutions: European Commission
Subjects: activity report, aid evaluation, aid policy, cooperation policy, developing countries, development aid

EN 

EN 

   EN 

 
 
COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 1.7.2009 
SEC(2009) 831 final/2 

Corrigendum : annule et remplace la version du 30.6.2009; concerne uniquement la version EN 

COMMISSION STAFF WORKING DOCUMENT 

Annex to the  

REPORT FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN 
PARLIAMENT 

Annual Report 2009 on the European Community's Development and External 
Assistance Policies and their Implementation in 2008 

{COM(2009)296} 

EN 

   EN 

 
 
 
COMMISSION STAFF WORKING DOCUMENT 

Annex to the  

REPORT FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN 
PARLIAMENT 

Annual Report 2009 on the European Community's Development and External 
Assistance Policies and their Implementation in 2008 

{COM(2009)296} 

EN 

2 

   EN 

 
TABLE OF CONTENTS 

COMMISSION STAFF WORKING DOCUMENT Annex to the......... Error! Bookmark not 
defined. 

REPORT FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN 
PARLIAMENT Annual Report 2009 on the European Community's Development and 
External Assistance Policies and their Implementation in 2008 ................................................ 2 

1. 

1.1. 

1.2. 

1.3. 

1.4. 

1.5. 

1.6. 

POLICY ....................................................................................................................... 9 

Introduction .................................................................................................................. 9 

Annual Policy Objectives........................................................................................... 11 

Implementation of the European Consensus on Development .................................. 12 

Coherence between development and other policies ................................................. 14 

Mainstreaming cross-cutting issues ........................................................................... 18 

Aid effectiveness and co-financing............................................................................ 23 

1.6.1.  Aid effectiveness........................................................................................................ 23 

1.6.2.  Division of labour and co-financing .......................................................................... 24 

1.7. 

Partnership with United Nations and World Bank..................................................... 26 

1.7.1.  United Nations ........................................................................................................... 26 

1.7.2. 

International Financial Institutions ............................................................................ 27 

1.7.3.  OECD......................................................................................................................... 27 

1.8. 

1.9. 

Poverty focus in middle-income countries................................................................. 28 

Sectoral policy and strategy developments ................................................................ 29 

1.10.  Outlook 2009.............................................................................................................. 35 

2. 

IMPLEMENTATION ................................................................................................ 37 

2.1. 

European Neighbourhood and Partnership Instrument .............................................. 38 

2.1.1.  Bilateral and regional cooperation ............................................................................. 38 

2.1.1.1.  Introduction ................................................................................................................ 38 

2.1.1.2.  Aid effectiveness and donor coordination.................................................................. 40 

2.1.1.3.  Working towards the MDGs ...................................................................................... 41 

2.1.1.4.  Regional cooperation and integration ........................................................................ 42 

2.1.1.5.  Implementation .......................................................................................................... 44 

EN 

3 

   EN 

 
2.1.1.6.  Monitoring.................................................................................................................. 50 

2.1.1.7.  Results ........................................................................................................................ 53 

2.1.1.8.  Prospects .................................................................................................................... 55 

2.1.1.9.  Success stories............................................................................................................ 57 

2.1.2.  Cross-border cooperation ........................................................................................... 58 

2.2. 

European Development Fund..................................................................................... 59 

2.2.1.  Africa.......................................................................................................................... 59 

2.2.1.1.  Introduction ................................................................................................................ 59 

2.2.1.2.  Aid effectiveness and donor coordination.................................................................. 60 

2.2.1.3.  Working towards the MDGs ...................................................................................... 61 

2.2.1.4.  Regional cooperation and integration ........................................................................ 63 

2.2.1.5.  Implementation .......................................................................................................... 64 

2.2.1.6.  Monitoring.................................................................................................................. 65 

2.2.1.7.  Results ........................................................................................................................ 66 

2.2.1.8.  Prospects .................................................................................................................... 67 

2.2.1.9.  Success stories............................................................................................................ 68 

2.2.2.  Caribbean (including OCTs) ...................................................................................... 69 

2.2.2.1.  Introduction ................................................................................................................ 69 

2.2.2.2.  Aid effectiveness and donor coordination.................................................................. 70 

2.2.2.3.  Working towards the MDGs ...................................................................................... 70 

2.2.2.4.  Regional cooperation and integration ........................................................................ 71 

2.2.2.5.  Implementation .......................................................................................................... 71 

2.2.2.6.  Monitoring.................................................................................................................. 72 

2.2.2.7.  Results ........................................................................................................................ 73 

2.2.2.8.  Prospects .................................................................................................................... 74 

2.2.2.9.  Success stories............................................................................................................ 74 

2.2.3.  Pacific (incl OCTs) .................................................................................................... 74 

2.2.3.1.  Introduction ................................................................................................................ 74 

2.2.3.2.  Aid effectiveness and donor coordination.................................................................. 76 

2.2.3.3.  Working towards the MDGs ...................................................................................... 76 

2.2.3.4.  Regional cooperation and integration ........................................................................ 77 

EN 

4 

   EN 

 
2.2.3.5.  Implementation .......................................................................................................... 77 

2.2.3.6.  Monitoring.................................................................................................................. 78 

2.2.3.7.  Results ........................................................................................................................ 79 

2.2.3.8.  Prospects .................................................................................................................... 79 

2.2.3.9.  Success stories............................................................................................................ 80 

2.2.4.  ACP-wide activities ................................................................................................... 84 

2.3. 

Development Cooperation Instrument ....................................................................... 86 

2.3.1.  Asia ............................................................................................................................ 86 

2.3.1.1.  Introduction ................................................................................................................ 86 

2.3.1.2.  Aid effectiveness and donor coordination.................................................................. 87 

2.3.1.3.  Working towards the MDGs ...................................................................................... 88 

2.3.1.4.  Regional cooperation and integration ........................................................................ 89 

2.3.1.5.  Implementation .......................................................................................................... 89 

2.3.1.6.  Monitoring.................................................................................................................. 92 

2.3.1.7.  Results ........................................................................................................................ 93 

2.3.1.8.  Prospects .................................................................................................................... 94 

2.3.1.9.  Success stories............................................................................................................ 95 

2.3.2.  Central Asia................................................................................................................ 96 

2.3.2.1.  Introduction ................................................................................................................ 96 

2.3.2.2.  Aid effectiveness and donor coordination.................................................................. 96 

2.3.2.3.  Working towards the MDGs ...................................................................................... 97 

2.3.2.4.  Regional cooperation and integration ........................................................................ 97 

2.3.2.5.  Implementation .......................................................................................................... 98 

2.3.2.6.  Monitoring.................................................................................................................. 98 

2.3.2.7.  Results ...................................................................................................................... 100 

2.3.2.8.  Prospects .................................................................................................................. 100 

2.3.2.9.  Success stories.......................................................................................................... 101 

2.3.3.  Middle East .............................................................................................................. 101 

2.3.3.1.  Introduction .............................................................................................................. 101 

2.3.3.2.  Implementation ........................................................................................................ 102 

2.3.3.3.  Prospects .................................................................................................................. 103 

EN 

5 

   EN 

 
2.3.4.  Latin America........................................................................................................... 104 

2.3.4.1.  Introduction .............................................................................................................. 104 

2.3.4.2.  Aid effectiveness and donor coordination................................................................ 106 

2.3.4.3.  Working towards the MDGs .................................................................................... 106 

2.3.4.4.  Regional cooperation and integration ...................................................................... 107 

2.3.4.5.  Implementation ........................................................................................................ 109 

2.3.4.6.  Monitoring................................................................................................................ 111 

2.3.4.7.  Results ...................................................................................................................... 113 

2.3.4.8.  Prospects .................................................................................................................. 114 

2.3.4.9.  Success stories.......................................................................................................... 114 

2.3.5.  South Africa ............................................................................................................. 115 

2.3.5.1.  Introduction .............................................................................................................. 115 

2.3.5.2.  Aid effectiveness and donor coordination................................................................ 115 

2.3.5.3.  Working towards the MDGs .................................................................................... 116 

2.3.5.4.  Regional cooperation and integration ...................................................................... 116 

2.3.5.5.  Implementation ........................................................................................................ 116 

2.3.5.6.  Monitoring................................................................................................................ 117 

2.3.5.7.  Results ...................................................................................................................... 118 

2.3.5.8.  Prospects .................................................................................................................. 118 

2.3.5.9.  Success stories.......................................................................................................... 119 

2.3.6.  Accompanying measures for Sugar Protocol countries ........................................... 121 

2.3.7. 

Investing in people ................................................................................................... 123 

2.3.8.  Non-state actors and local authorities in development ............................................ 126 

2.3.9.  Migration and asylum .............................................................................................. 126 

2.3.10.  Environment and sustainable management of natural resources including energy . 128 

2.3.11.  Food security............................................................................................................ 130 

2.4. 

2.5. 

Democracy and human rights................................................................................... 132 

Stability .................................................................................................................... 140 

2.5.1.  Crisis response and preparedness............................................................................. 140 

2.5.2.  Global and regional trans-border challenges............................................................ 143 

2.6. 

Nuclear safety........................................................................................................... 148 

EN 

6 

   EN 

 
2.7. 

Humanitarian assistance........................................................................................... 151 

2.7.1.  Context ..................................................................................................................... 151 

2.7.2.  Humanitarian policy................................................................................................. 153 

2.7.3.  Disaster preparedness............................................................................................... 153 

2.7.4.  Budget ...................................................................................................................... 153 

2.8. 

Macro-financial assistance ....................................................................................... 154 

3. 

4. 

4.1. 

4.2. 

4.3. 

FEATURE ARTICLES............................................................................................ 155 

RESULTS ................................................................................................................ 166 

Introduction .............................................................................................................. 166 

Project results: results-oriented monitoring (ROM) ................................................ 167 

Evaluation: review of the 2008 work programme.................................................... 172 

4.3.1.  Organisation of the evaluation function................................................................... 172 

4.3.2.  The 2008 work programme...................................................................................... 173 

4.3.3.  Results from evaluations finalised in 2008 .............................................................. 173 

4.3.4.  Synthesis of main lessons learned............................................................................ 176 

4.3.5.  Outlook for 2009 ...................................................................................................... 176 

5. 

5.1. 

5.2. 

AID MANAGEMENT............................................................................................. 177 

Introduction .............................................................................................................. 177 

Developments in aid delivery modalities and channels ........................................... 178 

5.2.1.  The 'Backbone Strategy' for reforming Technical Cooperation............................... 178 

5.2.2.  Budget support ......................................................................................................... 179 

5.3. 

5.4. 

5.5. 

5.6. 

6. 

6.1. 

6.2. 

6.3. 

Progress on qualitative issues in aid management ................................................... 182 

Simplification of procedures .................................................................................... 184 

Cooperation with international organisations and other donors .............................. 185 

Visibility and communication .................................................................................. 189 

ANNEXES ............................................................................................................... 189 

Introduction to financial tables................................................................................. 189 

Financial tables......................................................................................................... 192 

Glossary.................................................................................................................... 215 

EN 

7 

   EN 

 
EN 

8 

   EN 

 
 
1. 

POLICY 

1.1. 

Introduction 

Development  and  external  assistance  are  now  central  policies  of  the  EU.  They 
are major components of its international influence and effective instruments of 
its  soft  power.  Their  main  purpose  is  to  fight  poverty  and  promote  economic 
development and democracy. The present decade has seen the rise of the EU as a 
leading actor in the development field. The figures are impressive: the amounts 
committed have increased by 90% since 2001. In 2008, the EU and its Member 
States  were  again  the  biggest  international  donor,  providing  almost  60%  of 
global aid. 

The  amount  committed  at  EU  level  in  2008  (€12  billion)  enabled  the  EU  to 
implement an external assistance policy which is global, focused long-term and 
responsive.  It  is  global  with  more  than  160  countries  and  organisations 
benefiting  from  European  funds.  It  has  acquired  a  long-term  focus  through  its 
regular  project  evaluations  which  seek  to  optimise  their  developmental  impact 
year  on  year.  It  is  responsive  and  flexible,  as  shown  by  the  comprehensive 
assistance package of up to €500 million pledged by the European Commission 
to support Georgia after its conflict with Russia in August 2008. 

In  2008,  the  world  faced  a  number  of  severe  challenges  which  have  hampered 
progress  towards  the  Millennium  Development  Goals  (MDGs).  The  steep 
increase  in  food  and  energy  prices  and  the  global  financial  crisis  have 
contributed  to  driving  over  100  million  people  back  into  poverty.  The 
Commission took various actions to meet the food crisis challenge. It mobilised 
€200  million  from  the  reserve  for  unforeseen  needs  under  the  10th  European 
Development  Fund  (EDF)  to  respond  to  the  macroeconomic  and  social 
consequences  of  soaring  food  prices  in  the  worst-affected  African-Caribbean-
Pacific  (ACP)  countries.  The  budget  for  humanitarian  food  aid  was  reinforced 
with €140 million. Following a proposal from the Commission, a €1 billion EU 
Food Facility was adopted to mitigate the effects of the steep rise and volatility 
of food prices on the most vulnerable populations in all developing countries. 

Several important events relating to the achievement of the MDGs took place in 
2008.  The  European  Commission  together  with  the  Member  States  played  a 
leading  role  at  a  number  of  international  meetings  including  the  Third  High 
Level  Forum  on  Aid  Effectiveness  in  Accra  (2-4  September  2008),  the  High 
Level Event on the MDGs in New York (25 September 2008) and the Follow-up 
International Conference on Financing for Development in Doha (29 November 
–  2  December  2008).  The  priorities  agreed  by  the  Council  of  the  European 
Union  in  July  2008  (use  of  country  systems,  the  division  of  labour  among 
donors, increased aid predictability, mutual accountability for results and less aid 
conditionality) were reflected in the Accra Agenda for Action (AAA) adopted at 

EN 

9 

   EN 

 
the  Third  High-Level  Forum  on  Aid  Effectiveness  in  Accra.  Likewise,  during 
the  UN  follow-up  Conference  on  Financing  for  Development  in  Doha,  the  EU 
was instrumental in reaching consensus on important policy issues including the 
need to maintain donors’ commitments to increase official aid volumes to 0.56% 
of Gross National Income (GNI) by 2010 and 0.7% of GNI by 2015. 

In this context, the Commission played a key role in coordinating a common EU 
response.  Its  Communication  in  April,  The  EU  -  a  global  partner  for 
development.  Speeding  up  progress  towards  the  Millennium  Development 
Goals1,  confirms  the  EU  as  the  world’s  largest  donor  providing  60%  of  total 
international  Official  Development  Assistance  (ODA)  and  reiterates  the  EU 
commitment  to  improve  on  aid  delivery  and  aid  effectiveness.  As  part  of  that 
commitment, the MDG-Contract approach was finalised, providing longer-term, 
more predictable and results-focused budget support in seven ACP countries. At 
partner  country  level,  a  fast-track  process  was  launched  together  with  the  EU 
Member  States  to  expedite  the  implementation  of  the  Code  of  Conduct  on 
Complementarity  and  Division  of  Labour,  which  was  adopted  in  2007. 
Furthermore, the EU Agenda for Action approved in June 2008 set out a number 
of  intermediate  milestones  against  core  social  and  environmental  targets  to  be 
reached by 2010.  

These  initiatives  were  complemented  by  a  number  of  other  papers  and 
Communications, aimed at further reinforcing European development policy (as 
set  out  in  the  2005  European  Consensus  on  Development).  These  included  the 
Communications on:  
•  The EU, Africa and China: Towards trilateral dialogue and cooperation2 
•  Regional integration: a vision for the developing world3  
•  A Special Place for Children in EU External Action4.  

The  Commission  also  issued  a  policy  paper  on  Local  Authorities:  Actors  For 
Development to set out the first elements of a strategy which will capitalise on 
local  authorities'  experience  as  partners  in  development  and  draw  up  a 
coordinated  approach  for  a  structured  involvement  in  development  cooperation 
policy.  The  growing  number  and  changing  role  of  local  authorities  in 
development was the key issue during the European Development Days held in 
Strasbourg on 15-17 November 2008. 

The  Commission  gave  new  impetus  to  relations  between  the  EU  and 
neighbouring countries with the creation of a Union for the Mediterranean. The 
aim is to reinforce the existing partnership, offering more balanced governance 

1 
2 
3 
4 

COM(2008) 177 final of 09.04.2008 
COM(2008)654 final of 17.10.2008 
COM(2008) 604 final of 06.10.2008 
COM(2008)55 final of 05.02.2008 

EN 

10 

   EN 

 
                                                 
of  the  process,  increased  visibility  and  stronger  focus  on  projects  promoting 
intra- and inter-regional cooperation.  

For its eastern neighbours, the Commission adopted a Communication proposing 
the  creation  of  an  Eastern  Partnership  on  3  December  20085.  This  initiative 
aims  at  strengthening  the  links  between  the  EU  and  six  partners  in  the  East, 
reinforcing  the  bilateral  agenda  in  the  context  of  the  European  Neighbourhood 
Policy (ENP) and establishing a new framework for multilateral cooperation. 

1.2. 

Annual Policy Objectives 

In  2008,  the  Commission's  external  action  sought  to  achieve  the  following 
objectives: 

•  Build  on 

the  European  Neighbourhood  Policy  by  focusing  on 

the 
implementation of sectoral programmes in  the  areas  of  migration,  education 
and  energy.  Make  progress  towards  the  conclusion  of  new  agreements  and 
advance  economic  and  political  relations  with  neighbouring  countries. 
Continue  the  European  Union’s  contributions  to  the  Middle  East  peace 
process.  

•  Step up cooperation with ACP and other developing countries, particularly in 
areas  such  as  energy,  climate  change  and  migration.  Develop  together  with 
the  African  Union  a  Joint  EU-Africa  Strategy  which  will  define  the  new 
priorities in the EU’s relations with Africa. Start implementing the Economic 
Partnership Agreements and the 10th European Development Fund. Prepare a 
proposal for a second revision of the EC-ACP Partnership Agreement. 

•  Make progress on or conclude negotiations for agreements with China, India, 
South  Korea,  ASEAN  and  Latin  America  (Andean  Community,  Central 
America). Strengthen the transatlantic partnership with the United States. 

•  Support  the  successful  completion  and  implementation  of  the  Doha 

Development Round of world trade talks. 

Except in the last case, substantial progress has been achieved in these different 
areas.  In  addition,  to  respond  to  emerging  challenges  during  2008,  the 
Commission also took concrete initiatives to: 

•  Mobilise  additional  funding  for  poor  countries  at  risk  from  the  rise  in  food 

prices;  

•  Launch an Adaptation Fund for the most vulnerable countries in response to 

climate change;  

•  Take the lead on the Accra Agenda for Action to improve aid effectiveness; 

5 

COM/2008/823 final of 3.12.2008 

EN 

11 

   EN 

 
                                                 
•  Enhance  relations  between  the  Union  and  neighbouring  countries  with  the 
creation  of  a  Union  for  the  Mediterranean,  an  Eastern  Partnership  and  the 
development of the Black Sea Synergy. 

1.3. 

Implementation of the European Consensus on Development 

The European Consensus on Development6, which constitutes a milestone in EU 
development  cooperation,  defines  at  EU  level  the  common  values,  principles, 
objectives and means in order to eradicate poverty and achieve the Millennium 
Development Goals. 

What are the Millennium Development Goals? 

The Millennium Development Goals (MDGs) are eight goals to be achieved by 
2015 that respond to the world's main development challenges. The MDGs are 
drawn from the actions and targets contained in the Millennium Declaration that 
was  adopted  by  189  nations  and  signed  by  147  heads  of  state  and  government 
during the UN Millennium Summit in September 2000.  

Goal 1: Eradicate extreme poverty and hunger  
Goal 2: Achieve universal primary education  
Goal 3: Promote gender equality and empower women  
Goal 4: Reduce child mortality  
Goal 5: Improve maternal health  
Goal 6: Combat HIV/AIDS, malaria and other diseases  
Goal 7: Ensure environmental sustainability  
Goal 8: Develop a Global Partnership for Development  

towards 

The Commission ensured that, throughout 2008, the objectives and principles of 
the  Consensus  were  reinforced.  In  its  April  Communication  on  speeding  up 
progress 
the  Commission 
the  Millennium  Development  Goals, 
confirmed its commitments to help eradicate poverty in developing countries by 
increasing  the  amount  of  aid,  making  it  more  effective  and  strengthening  the 
coherence  between  development  assistance  and  other  policy  areas.  The  EU 
presented  its  position  at  international  fora,  especially  in  Accra  (on  aid 
effectiveness), in New York (on the MDGs), at the UN summit and in Doha (on 
aid volumes).  

In  this  context,  the  Commission  was  instrumental  in  preparing  the  EU  Agenda 
for Action on MDGs adopted in June 2008. This Agenda is a collective offer by 
Europe  to  its  development  partners  and  the  international  community,  setting  a 
number of intermediate milestones against core social and environmental targets 
to  be  reached  by  2010.  This  initiative  should  facilitate  the  achievement  of  the 
MDG  targets  by  2015.  Referring  to  estimated  financing  gaps  per  sector,  the 

6 

The  Consensus  was  endorsed  in  December  2005  by  the  Presidents  of  the  Commission,  Council 
and European Parliament. 

EN 

12 

   EN 

 
                                                 
Agenda  presents  examples  of  EU  actions  foreseen  in  the  next  two  years  and 
assesses the expected impact of increased EU aid in specific sectors. 

As  part  of  the  initiative  on  Mobilising  European  Research  for  Development 
Policies  which  seeks  to  provide  a  European  perspective  on  international 
development  issues,  the  Commission  issued  a  first  EU  Research  paper.  The 
document Millennium Development Goals at Midpoint: Where do we stand and 
where do we need to go?7 places ongoing efforts to fulfil MDG commitments in 
the  broader  context  of  the  changing  world  economy,  challenging  current 
development thinking and making policy recommendations for the way forward.  

like  democratic  governance  and  human  rights, 

Building  on  the  international  and  multilateral  aspects  of  the  Consensus 
concerning  values 
the 
Commission  proposed  a  structured  dialogue  with  China  and  Africa  in  its 
Communication on The EU, Africa and China: Towards trilateral dialogue and 
cooperation.  This  document  acknowledges  that  the  EU  and  China  are  long-
standing  partners  of  Africa  who  have  in  recent  years  responded  to  Africa’s 
transformation with increased trade, investment and aid. It calls for joint efforts 
to  find  common  solutions  to  common  challenges  such  as  peace  and  security, 
agriculture  and  food  security,  climate  change,  infrastructure  and  sustainable 
management of the environment and natural resources. 

Following  the  adoption  of  the  EU-Africa  Partnership  in  Lisbon  in  December 
2007, the Commission issued its 2008 review of progress entitled One year after 
Lisbon:  the  Africa-EU  partnership  at  work8.  The  document  confirms  the  step-
change  in  Europe's  relations  with  Africa  and  seeks  to  stimulate  debate  among 
stakeholders on both continents in order to boost implementation of the strategy. 
Its eight sector partnerships have been developed and are now starting to deliver 
concrete results.  

The Joint EU Africa Strategy 

The Joint Africa-EU Strategy provides an overarching long-term framework for 
Africa-EU  relations,  while  its  first  action  plan  specifies  concrete  proposals  for 
2008-2010, structured along eight Africa-EU strategic partnerships:  
- Peace and security,  
- Democratic governance and human rights,  
- Trade, regional integration and infrastructure,  
- Millennium Development Goals,  
- Energy,  
- Climate change,  
- Migration, mobility and employment,  
- Science, information society and space  

7 

8 

F Bourguignon et al (2008). Available at: 
http://ec.europa.eu/development/icenter/repository/mdg_paper_final_20080916_en.pdf 
COM(2008) 617 final of 17.10.2008 

EN 

13 

   EN 

 
                                                 
http://ec.europa.eu/development/geographical/regionscountries/euafrica_en.cfm 

in 

Particular  attention  was  paid  in  2008  to  regional  integration  as  a  driver  of 
development.  The  Commission  presented  a  shared  EU  vision 
its 
Communication  on  Regional  integration  for  development  in  ACP  countries. 
Citing Europe's successful integration over the last 50 years, the paper looks at 
opportunities  for  ACP  countries  to  develop  and  expand  their  own  regional 
initiatives.  Acknowledging  a  sometimes  difficult  context,  marred  by  limited 
ownership  and  capacity  at  regional  or  national  level,  fragmentation  of  regional 
markets,  insufficient  economic  diversification  and  infrastructure  development, 
the document highlights the need for a joined-up EU approach. This requires a 
strong  political  partnership  within  the  joint  EU-Africa  Strategy,  increased  EU 
support  for  regional  integration  and  strengthening  existing  regional  integration 
processes  through  the  conclusion  of  fully-fledged  Economic  Partnership 
Agreements. 

Similar  efforts  towards  aid  effectiveness  are  underway  in  the  field  of 
humanitarian  aid.  Adopted  in  December  2007,  the  European  Consensus9  on 
Humanitarian  Aid  has  given  the  European  Union  a  common  set  of  values, 
principles  and  objectives  intended  to  strengthen  the  coherence  of  its  overall 
humanitarian action. The Consensus was followed by the adoption of an action 
plan in 200810. The overall aim is to ensure that the European Union maximises 
the effectiveness  of its  contribution to the  collective international humanitarian 
response  and  this  inter-alia  through  a  more  closely  co-ordinated  approach  with 
all  donors  involved,  a  better  linking  of  humanitarian  aid  with  long-term 
development  and  other  assistance  and  a  strengthening  of  disaster  reduction 
activities supported increasingly by long-term aid approaches. 

1.4. 

Coherence between development and other policies 

As  part  of  the  European  Consensus  on  Development,  the  Commission  has 
increasingly  focused  on  the  contribution  that  other  policies  with  an  impact  on 
development  –  trade,  agriculture,  environment,  security,  migration,  the  social 
dimension  of  globalisation,  employment  and  decent  work,  and  international 
scientific cooperation (including research on agriculture and health) – can make 
towards achieving the Millennium Development Goals. 

As pointed out in the research paper on MDGs at midpoint, it is widely agreed 
that development policy alone will not bring sufficient results and that a number 
of  other  policies  can  have  a  major  impact.  The  EU’s  aim  is  to  maximise  the 
positive  effect  of  these  policies  while  minimising  their  negative  impact  on 
developing countries. 

9 

10 

The European Consensus on Humanitarian Aid was signed by the Presidents of the Council, the 
European Parliament and the European Commission in December 2007 - OJ C 25 – 30/1/2008 
SEC(2008)1991 

EN 

14 

   EN 

 
                                                 
Following  the  adoption  of  the  first  EU  report  on  Policy  Coherence  for 
Development  (PCD)  in  2007,  the  Commission  explored  the  impact  on 
development  of  four  EU  policy  areas:  climate  change,  energy  (through  the 
example  of  biofuels),  migration  and  research.  The  EU  research  paper  lays  the 
basis for further policy work required at EU level. 

In the climate change and energy areas, a key element in EU strategy is its long-
term commitment to the development of renewable energies. Among renewable 
energies,  biofuels  are  of  particular  relevance  in  the  context  of  development 
policy  given  the  multidimensional  policy  perspective  they  offer  (e.g.  energy, 
environment,  agriculture,  research).  Hence  the  proposal  that  the  EU  help 
developing  countries  to  benefit  from  the  opportunities  created  by  the  biofuels 
market for fighting poverty, while carefully monitoring the impact it can have on 
third  countries,  particularly  in  terms  of  food  security,  access  to  land  and 
environmental degradation. 

On migration, any European policy on structuring and managing migration flows 
is  bound  to  interact  with  development  policy.  The  EU  research  paper 
concentrates on 'brain drain' and 'brain waste' issues. It focuses on measures to 
address  the  related  challenges  such  as  'training  for  export'  of  highly  skilled 
workers in developing countries, the retention of skilled workers, the facilitation 
of  temporary  or  permanent  return  to  migrants'  countries  of  origin,  or  the 
strengthening of 'ethical recruitment' in the EU. 

On  research,  the  paper  indicates  how  research  policy  can  better  contribute  to 
development.  It  suggests  promoting  research  on  MDG-related  issues,  and 
improving  access  to  the  results  so  that  developing  countries  also  benefit  from 
them. To strengthen the knowledge base of developing countries, it proposes to 
promote the participation of their researchers in European research programmes 
while  at  the  same  time  strengthening  their  research  capacity  through  a  more 
balanced mobility of researchers between the EU and developing countries. 

In addition to these specific initiatives in four key policy areas the Commission 
has  been  integrating  development  concerns  in  all  initiatives  with  important 
impacts on developing countries. 

With regard to trade, an Economic Partnership Agreement (EPA) was finalised 
with  the  Cariforum11  region,  while  negotiations  took  place  with  other  regional 
groupings.  In  addition,  a  number  of  Interim  Agreements  were  signed  with 
individual  developing  countries  as  further  negotiations  toward  fully-fledged 
agreements continued. The EPAs are intended to consolidate regional integration 
initiatives among ACP countries and to foster their gradual integration into the 
global economy on the basis of an open, transparent and predictable framework 

11 

Caribbean Forum 

EN 

15 

   EN 

 
                                                 
for  trade  in  goods  and  services.  EPAs  are  trade  and  cooperation  agreements  at 
the service of development. 

As  indicated  in  the  recently  adopted  Communication  on  Promoting  Good 
Governance  in  tax  matters,  the  Commission  is  of  the  view  that  the  coherence 
between  EU  financial  support  and  provision  of  access  to  EU  markets  to 
particular  countries  and  their  level  of  cooperation  with  the  principles  of  good 
governance in the tax area should also be considered.  

As  for  climate  change,  environment  and  energy,  the  EU's  ambitious  climate 
policy will directly benefit the poorest and most vulnerable developing countries 
as  it  aims  to  limit  global  temperature  rise  to  an  average  of  2°C  above  pre-
industrial  levels.  In  a  Communication  of  October  2008,  the  Commission 
presented  the  challenges  of  dealing  with  deforestation  in  the  context  of 
international  efforts  to  tackle  climate  change.  The  document  stresses  the 
importance  of  policy  coherence,  and  calls  for  a  review  of  the  impact  of  EU 
policies  on  global  deforestation.  Then  in  December  2008,  the  EU  reached 
political  agreement  on  the  Climate  action  and  renewable  energy  package12 
which  confirms  the  EU's  commitment  to  fight  climate  change  and  promote 
renewable energy up to 2020 and beyond. The package offers opportunities for 
developing  countries,  in  particular  through  its  decision  to  increase  the  share  of 
renewable  energy  in  final  energy  consumption  to  20%  of  total  energy  use  by 
2020 and to reach a minimum 10% share of renewables in transport by the same 
date. In that context, the package sets out sustainability criteria that biofuels will 
have  to  meet  to  ensure  they  deliver  real  environmental  benefits.  Finally,  of 
particular relevance to this policy area, 2008 has seen the operational launch of 
the  Adaptation  Fund  giving  developing  countries  direct  access  to  the  funds 
generated by a 2% levy on the Clean Development Mechanism (CDM) which is 
part of the Kyoto Protocol on climate change. 

Thanks to its far-reaching agricultural policy reforms, and as part of an overall 
package  deal  in  the  Doha  Development  Agenda  during  2008,  the  EU  has  been 
endeavouring  towards  a  steep  reduction  in  the  ceiling  on  its  trade-distorting 
support, the elimination of its export subsidies and a significant reduction of its 
border  protection  in  the  context  of  a  deal.  In  2008,  EU  agriculture  ministers 
reached  a  political  agreement  on  a  'health  check'  of  the  Common  Agricultural 
Policy. This modernises and simplifies some aspects of the CAP. Among a range 
of measures, the agreement abolishes arable set-aside, adjusts milk quotas in the 
lead-up to their abolition in 2015, reduces the role of price support and aims to 
create  a  genuine  safety  net  for  farmers.  Support  for  agriculture  and  rural 
development  in  Africa  has  been  further  reinforced  via  EU  development 
cooperation  instruments  and,  in  response  to  the  food  crisis  of  2007-2008, 
through  the  adoption  of  a  €1  billion  EU  Food  Facility  for  2008-2010.  The 

12 

http://ec.europa.eu/environment/climat/climate_action.htm  

EN 

16 

   EN 

 
                                                 
facility makes funds available to support a rapid and direct response to volatile 
food prices in developing countries, covering measures in support of agricultural 
production as well as safety nets. 

With  regard  to  fisheries,  preliminary  discussions  started  on  a  review  of  the 
Common  Fisheries  Policy.  The  review  will  be  based  on  an analysis  of  the 
achievements  and  shortcomings  of  the  current  policy,  and  will  look  at 
experiences in other fisheries management systems to identify potential avenues 
for the reform of this policy, including its external aspects. 

As  far  as  migration  is  concerned,  the  EU  strategy,  the  so  called  "Global 
Approach"  includes  three  pillars:  promoting  legal  migration  and  mobility, 
fighting  irregular  immigration,  and  maximising  the  impacts  of  migration  on 
development in the country of origin. The same logic prevails in the European 
Pact on Immigration and Asylum, adopted by the European Council in October 
2008. The Pact intends to foster synergies between migration and development, 
and  will  provide  solid  ground  on  which  to  build  initiatives  to  support  circular 
migration  and  knowledge  transfer.  Initiatives  have  been  launched  enabling 
members  of  the  migrant  diaspora  to  contribute  to  the  development  of  their 
country  of  origin  for  example  through  remittances  or  to  support  the  temporary 
return  of  highly-qualified  migrants.  The  Africa-EU  Partnership  on  Migration, 
Mobility  and  Employment  provides  the  framework  to  incorporate  aspects  of 
migration  into  education  and  health  policies  as  well  as  social  and  economic 
development strategies. 

With  regard  to  European  Security  and  Defence  Policy  (ESDP),  the  EU 
continued  efforts  to  increase  coherence  between  security  and  development 
notably  through  the  revision  of  the  2003  European  Security  Strategy,  the 
ongoing  work  towards  an  action  plan  on  the  security-development  nexus,  and 
increased  interaction  between  conflict  and  development  analyses  as  well  as 
between ESDP planning and development programmes. However, the report on 
the  implementation  of  the  European  Security  Strategy  recognises  the  need  to 
further strengthen coherence, through better institutional coordination and more 
strategic decision-making. 

Throughout  2008,  work  continued  to  develop  science  and  technology 
cooperation with partner countries. This included the negotiation and adoption of 
agreements  with  several  of  them  and  the  launch  of  regional  multi-stakeholder 
platforms  for  dialogue  and  exchange13.  A  Communication  on  A  Strategic 
European Framework for International Science and Technology Cooperation, 14 
setting  out  a  new  partnership  with  Member  States  to  coordinate  international 

13 

14 

INCO-Net  platforms  in  the  following  regions:  Mediterranean,  Western  Balkans,  Eastern  Europe 
and  Central  Asia  (EECA),  Sub-Saharan  Africa,  South-East  Asia  and  Latin  America. 
http://ec.europa.eu/research/iscp/pdf/978-92-79-08080-7_en.pdf  
COM(2008) 588 final of 24.09.2008 

EN 

17 

   EN 

 
                                                 
S&T cooperation was endorsed by the Council in December15. Through the EU's 
Seventh  Research  Framework  Programme  (FP7),  projects  were  funded  to 
support  developing  countries  in  reaching  the  MDGs,  particularly  in  the  health, 
food and environment areas. 

1.5.  Mainstreaming cross-cutting issues 

The  Commission  is  committed  to  mainstreaming  certain  cross-cutting  issues 
throughout its activities as agreed in the European Consensus on Development. 
They include: the promotion of human rights, gender equality, democracy, good 
governance,  rights  of  children  and 
indigenous  peoples,  environmental 
sustainability  and  combating  HIV/AIDS.  These  objectives  are  promoted  and 
supported in their own right through projects and programmes. They are at the 
same  time  vital  factors  in  strengthening  the  impact  and  sustainability  of 
development  cooperation  in  general  and  should  be  taken  into  account  and 
integrated into all projects and programmes. The Commission is taking steps to 
strengthen  efforts  to  fully  integrate  cross-cutting  issues  into  all  its  cooperation 
activities.  

Democratic governance 

In  recent  years,  the  EU  has  moved  democratic  governance  to  the  top  of  its 
agenda.  It  makes  major  efforts  to  translate  this  political  commitment  into  a 
comprehensive policy framework and to provide concrete support for democratic 
governance  in  its  development  cooperation  activities16.  While  recognising  that 
improving  democratic  governance  is  an  internal  process  in  each  country,  the 
Commission is determined to address democratic governance both as a specific 
policy  area  (i.e.  support  for  human  rights,  democracy,  public  administration, 
decentralisation,  civil  society  and  rule  of  law)  and  as  a  cross-cutting  issue 
concerning all programmes and sectors (i.e. support for democratic governance 
within sectors like food security, education, transport, justice, etc).  

This is why the Commission not only integrates democratic governance into its 
own policy-making process, but also makes it a core element in its Partnership 
and  Cooperation  Agreements  with  countries  in  all  regions.  Democratic 
governance  is  a  basis  for  dialogue  with  partners  at  country,  regional  and 
continental level. It is taken into account at all steps of the programming cycle: 
programming dialogue, drafting of Country Strategy Programmes and National 
Indicative  Programmes,  programme  implementation  and  review.  During  2008, 
the Commission developed a methodology to analyse and address governance in 

15 

16 

EN 

Council 
http://www.consilium.europa.eu/ueDocs/cms_Data/docs/pressData/en/intm/104442.pdf  
Governance  in  the  European  Consensus  on  Development  COM(2006)  421  and  Council 
Conclusions of 17.11.2006 

02.12.2008: 

conclusions 

of 

18 

   EN 

 
                                                 
sector operations as a way to further improve results and to integrate democratic 
governance into all cooperation programmes at sector level17. 

Promoting  democratic  governance  and  supporting  partner  countries’  efforts  are 
therefore  an  integral  part  of  EU  cooperation  strategies.  Respect  for  ownership, 
dialogue between partners and a focus on incentives for result-oriented reforms 
are the main principles. To put this approach into practice and build on existing 
support, the Commission launched the Governance Initiative for ACP countries 
and  Africa.  This  provides  ACP  countries  with  access  to  additional  funding 
according to their governance commitments: €2.7 billion from the 10th European 
Development  Fund  were  reserved  for  such  incentives.  More  than  60  countries 
have  put  forward  plans  for  reform  and  benefited  from  an  extra  allocation.  A 
review of this instrument was finalised in 2008.  

Working on democratic governance is a highly sensitive political process. It also 
takes time. The Commission strategy is first to consider each specific situation 
from  a  country  and  a  sector  perspective,  and  thereafter  to  aim  for  a  pragmatic 
and gradual approach. Increased attention is given to monitoring the impact and 
results of development efforts to promote democratic governance. To strengthen 
understanding  and  knowledge  in  this  field  and  to  find  out  how  it  can  help 
partners  to  measure  progress  in  democratic  governance,  the  Commission 
together with the UNDP's Oslo Governance Centre launched a study in 2008 on 
governance indicators and governance assessments. 

Gender  

Gender  equality  is  not  only  an  end  in  itself,  it  is  also  a  strong  driver  for 
development.  

The year 2008 saw major initiatives in promoting gender equality: in the context 
of  achieving  the  MDGs,  on  the  issue  of  women  in  conflict  or  post-conflict 
countries,  in  the  fight  against  violence,  and  in  the  area  of  aid  effectiveness. 
Within  the  so-called  MDG  3  Torch  Campaign  promoted  by  the  Danish 
Government, Commissioner for External Relations Benita Fererro-Waldner and 
Commissioner  for  Development  and  Humanitarian  Aid  Louis  Michel  were 
Champion  Torch  Bearers  and  made  personal  commitments  to  do  something 
extra to promote better equality and achieve MDG 3 (gender). The Commission 
prepared a joint paper in collaboration with the Slovenian Presidency of the EU 
entitled  Women  and  Armed  Conflict.  The  EU  Agenda  for  Action  on  MDGs, 
adopted  in  2008  with  a  strong  focus  on  gender  equality,  will  also  stimulate 
concrete actions.  

17 

http://ec.europa.eu/europeaid/infopoint/publications/index_en.htm 

EN 

19 

   EN 

 
                                                 
For the second edition of the drawing competition on gender equality organised 
by the Commission, some 30 000 children around the world aged between eight 
and 10 expressed their views on equality between women and men.  

The  Comprehensive  EU  approach  for  the  implementation  of  United  Nations 
Security  Council  Resolutions  1325  and  1820  on  women,  peace  and  security, 
adopted in December 2008, provides guidance and commitments to ensure that 
the  Union’s  external  actions  are  shaped  to  protect  women  from  violence,  and 
that they contribute to better equality between women and men during and after 
armed  conflict  and  in  situations  of  fragility.  Women:  Stabilising  an  Insecure 
World  was  the  theme  of  the  March  2008  high-level  international  conference 
promoted by Commissioner Ferrero-Waldner. As a result of the conference, over 
40 women political leaders joined her in proposing to the UN Secretary-General 
that  a  Ministerial-level  meeting  be  organised  in  2010  –  the  10th  anniversary  of 
the adoption of UN Security Resolution 1325 – to reinforce global commitment 
to  its  implementation.  To  advance  the  implementation  of  Resolution  1325,  the 
Commission  will  also  support  the  2009  International  Colloquium  on  women’s 
leadership.  These  initiatives  will  help  take  effective  action  to  end  impunity  for 
violence  against  women,  and  ensure  women’s  participation  in  all  aspects  of 
reconstructing institutions and communities after conflicts. 

In  December  2008,  the  EU  adopted  the  Guidelines  on  violence  against  women 
and  girls  and  combating  all  forms  of  discrimination  against  them.  This  marks 
the EU's clear political will to treat women's rights as a priority and to take long-
term  action 
their 
implementation  discussed  by  civil  society  organisations  at  the  10th  EU-NGOs 
Annual  Human  Rights  Forum,  which  in  2008  focused  on  Equality  in  Action: 
Ending Discrimination Against Women.  

this  field.  The  Guidelines  were  welcomed  and 

in 

In  September  2008,  donors  and  partner  countries  agreed  the  Accra  Agenda  for 
Action  on  aid  effectiveness  which  includes  commitments  on  gender  equality. 
The Commission has been at the forefront of efforts to link the gender equality 
and aid  effectiveness  agendas. The  EC/UN  Partnership  on  Gender  Equality  for 
Development  and  Peace  has  produced  significant  findings  on  aid  effectiveness 
and gender equality in 12 pilot countries through mapping researches. This has 
provided  useful  messages  for  both  donors  and  partner  countries.  The  EC/UN 
partnership  will  continue  by  supporting  in-country  and  regional  capacities  to 
bring a stronger gender equality perspective to aid effectiveness. An interactive 
website has been set up to provide information on resources, material and good 
practice18.  The  EC/UNIFEM19  programme  on  integrating  gender-responsive 
budgeting  into  the  aid  effectiveness  agenda,  launched  in  early  2008,  has  also 
been a valuable resource for generating knowledge in this area. 

18 
19 

For further information: www.gendermatters.eu 
The UN Development Fund for Women 

EN 

20 

   EN 

 
                                                 
In  the  Mediterranean  region,  the  EU  leads efforts  to  put  gender  equality  at  the 
heart of the Euro-Mediterranean Partnership. The 2006 Istanbul Conclusions on 
Strengthening the role of women in society are closely monitored20 and a stock-
taking  Euro-Mediterranean  Ministerial  conference  will  take  place  in  2009.  The 
Role  of  Women  in  Economic  Life  programme  has  come  to  an  end  after  a 
successful  contribution  to  capacity  building,  carrying  out  analyses  and 
disseminating  good  practices.  Building  on  this,  a  new  regional  programme  has 
started  and  will  encourage  the  implementation  of  the  Convention  on  the 
Elimination of All Forms of Discrimination against Women.  

Providing Commission staff with knowledge on gender issues is vital to enable 
them  to  engage  in  dialogue  with  partner  countries  and  civil  society.  Capacity-
building activities continued throughout 2008 via training workshops. Within the 
Commission's  Inter-service  Group  on  Gender  Equality,  an  External  Relations 
working  group  was  established 
internal  coordination. 
to 
Dissemination of information and exchange of good practice amongst European 
Commission  Delegations  is  ensured  through  a  network  of  gender-focused 
persons.  

strengthen 

In  2009,  the  Commission  will  prepare  an  EU  Action  Plan  on  Gender  Equality 
and  Women's  Empowerment  in  External  Action.  Support  for  civil  society 
organisations active in the field of gender equality and women's empowerment 
will continue to fight women's illiteracy, promote women's ownership rights and 
empower  non-state  actors.  A  second  Ministerial  conference  on  gender  equality 
within  the  Euro-Mediterranean  Partnership  will  take  place.  The  extraordinary 
creativity  of  children  will  again  be  solicited  by  the  Commission's  third 
worldwide drawing competition on the issue of gender equality. 

Children 

Children's rights were a focus of attention in 2008. A Communication entitled A 
Special Place for Children in EU External Action21 and two accompanying Staff 
Working  Papers,  The  European  Union’s  Action  Plan  on  Children’s  Rights  in 
External  Action22  and  Children  in  Emergency  and  Crisis  Situations,23  were 
issued 
four  Commission  Directorates-General: 
Development,  Humanitarian  Aid,  External  Relations  and  Justice  Freedom  and 
Security. The package outlines a comprehensive policy on children in the EU's 
external  policies,  using  all  available  instruments  from  political  dialogue  to 
development  cooperation  and  humanitarian  aid.  The  Action  Plan  on  Children's 
Rights in External Action sets a number of priorities at regional and global level. 

in  February 

jointly  by 

20 

21 
22 
23 

For further information: 
http://ec.europa.eu/external_relations/euromed/women/gender_followup_en.htm 
COM(2008) 55 final of 05.02.2008 
SEC(2008) 136 of 05.02.2008 
SEC(2008) 135 of 05.02.2008 

EN 

21 

   EN 

 
                                                 
These  concern:  child  labour,  child  trafficking,  children  affected  by  armed 
conflict and violence against children.  

In  2008,  a  number  of  projects  on  children  affected  by  armed  conflict  and  on 
trafficking  in  children  were  shortlisted  as  a  result  of  a  call  for  proposals.  In 
addition,  the  Commission  reinforced  its  internal  coordination  by  creating  an 
Inter-service sub-group on children. A Children's Toolkit to support the work of 
partner countries, delegations and other relevant actors and stakeholders is being 
prepared  jointly  with  UNICEF.  Additionally,  the  implementation  of  action 
against  the  worst  forms  of  child  labour  in  conflict  or  post-conflict  situations 
started with a study whose results will be published in 2009. The Commission is 
also carrying out a study on positive incentives on the sale of products that have 
been produced without using child labour. 

Indigenous people  

Constant  efforts  are  being  made  to  improve  the  design  and  the  impact  of  EC 
external assistance programmes on indigenous people (IPs) by strengthening the 
Commission's ability to draw on lessons learnt and best practices. During 2007-
2008, a specific EC initiative was devoted to ways to better integrate the rights 
of indigenous people into development cooperation.  

In 2007, the Commission launched a study on promoting indigenous rights and 
issues under the Cotonou Partnership Agreement and the 10th EDF based on two 
case studies in Kenya and Suriname. This led to the preparation of a Draft Tool 
for  EC  Cooperation  with  Indigenous  Peoples  in  ACP  countries24  designed  to 
provide  advice  and  assistance  to  European  Commission  Delegations  in 
formulating  and  implementing  development  cooperation  programmes.  Only 
mechanisms that enable the full and effective participation of indigenous peoples 
in  all  stages  of  development,  from  design,  implementation,  monitoring  and 
evaluation  to  benefit-sharing,  can  make  the  application  and  operation  of  these 
concepts work. This tool could be extended to other regions. 

Environment 

in  sensitive  areas.  This 

In  the  new  generation  of  country  and  regional  strategy  papers,  increased 
consideration  was  given  to  environmental  sustainability  concerns  in  sector 
included  strategic  environmental 
programmes 
assessments in sectors like transport, sugar sector reform, sea defences. Efforts 
to conceptualise and provide operational guidance on integrating climate change 
adaptation into external cooperation were stepped up. These efforts also focused 
on donor coordination mechanisms.  

24 

http://ec.europa.eu/europeaid/what/universal-issues/human-rights/index_en.htm  

EN 

22 

   EN 

 
                                                 
Activities to strengthen staff capacities to include the environmental dimension 
into  all  EC  cooperation  programmes  continued  successfully  in  2008  with 
increasing  focus  on  climate  change  adaptation.  Renewed  emphasis  on  this 
objective was given in the Green AIDCO Action Plan adopted at the beginning 
of  the  year.  Environmental  integration  seminars  were  held,  methodological 
support provided and awareness-raising sessions organised.  

Combating HIV/AIDS 

for 

sub-Saharan  Africa,  HIV/AIDS  mainstreaming 

The  European  Consensus  on  Development  recognises  HIV/AIDS  as  a  key 
development challenge, which requires a multi-faceted response, including more 
attention  to  mainstreaming.  In  most  10th  EDF  Country  Strategy  Papers  of 
countries 
figures 
prominently.  The  HIV/AIDS  mainstreaming  process  includes  integration  of 
awareness  raising,  educational  activities,  condom  promotion  and  other  AIDS 
prevention  activities  in  sector  work  on  education  and  vocational  training, 
transport and infrastructure and rural development. In addition to mainstreaming, 
HIV/AIDS  is  explicitly  addressed  as  a  main  focus  for  focal  sectors  in  four 
countries  and  an  identified  priority  for  General  Budget  Support  in  four  others. 
Growing  recognition  of  the  HIV/AIDS  challenge  is  evident  in  some  countries 
which  have  defined  their  focal  sectors  on  the  basis  of  a  careful  analysis  of  the 
interplay between the sectors concerned and HIV/AIDS.  

A  regional  HIV/AIDS  helpdesk  has  been  created  in  Southern  Africa,  and 
supports EC Delegations in mounting an expanded EC response to AIDS in the 
region. 

The Commission's "HIV in workplace policy", introduced in 2007, is now being 
implemented through education and training programmes in non-EU countries. 

1.6. 

Aid effectiveness and co-financing 

1.6.1.  Aid effectiveness 

The  Third  High-Level  Forum  on  Aid  Effectiveness  in  Accra,  Ghana,  in 
September made 2008 an important year for the global aid effectiveness agenda. 
Monitoring by the OECD's Development Assistance Committee (DAC) showed 
that,  despite  progress,  donors  risked  falling  short  of  the  targets  agreed  in  the 
Paris  Declaration  of  2005.  A  further  push  and  a  renewed  commitment  to  aid 
effectiveness were needed. 

In  May,  the  Council  called  on  Member  States  and  the  Commission  to  seek  an 
ambitious  outcome  from  Accra.  In  July,  the  EU  consolidated  its  common 
position  in  advance  of  the  forum.  Special  emphasis  was  given  to  division  of 
labour,  use  of  country  systems,  predictability  of  aid  and  mutual  accountability 
for results, including less conditionality. 

EN 

23 

   EN 

 
The outcome of the High-Level Forum, the Accra Agenda for Action (AAA)25, 
reflects the aspirations of the EU. While the AAA, unlike the Paris Declaration, 
contains  few  numerical  targets,  it  nevertheless  consists  of  significant  political 
commitments by donors and developing countries. Touching more themes than 
ever  before,  the  aid  effectiveness  agenda  now  also  involves  a  wide  range  of 
partners  from  the  development  community.  Partner  countries  themselves, 
emerging  donors,  middle-income  countries  and  non-state  actors  all  play  an 
increasingly important role. 

The Commission has set out the broad lines of its approach for implementing the 
Accra  Agenda,  in  particular  at  operational  level.  It  is  building  on  its  earlier 
strategies on use of country systems and joint missions, as well as on the recent 
"Backbone strategy" to increase effectiveness and the overall quality of technical 
cooperation  and  project  implementation  arrangements  (see  Sections  4.2.  and 
5.1.1. below for details). Discussions with Member States will continue on how 
the  EU  will  carry  forward  the  aid  effectiveness  agenda  at  a  European  and 
international  level,  such  as  in  the  ongoing  work  in  the  OECD/DAC  Working 
Party  on  aid  effectiveness.  EU  performance  will  be  monitored  as  part  of  the 
annual  Monterrey  reporting  system  as  well  as  in  the  overall  Paris  Declaration 
monitoring exercise. 

As part of its response to the commitments on the use of country systems and aid 
predictability,  the  Commission  finalised  its  proposals  for  MDG-Contracts. 
Under the 10th EDF some 44% of resources programmed in ACP countries will 
be budget support (€13.5 billion). The aim of MDG contracts is to make budget 
support more effective in accelerating progress towards the MDGs by increasing 
its predictability and focusing on results. Individual MDG contracts will provide 
longer-term  general  budget  support  targeted  at  countries  with  a  proven  track 
record.  MDG  contracts  were  initially  approved  for  seven  ACP  countries 
(Burkina  Faso,  Ghana,  Mali,  Mozambique,  Rwanda,  Uganda,  and  Zambia), 
representing  over  40%  of  programmed  general  budget  support  under  the  10th 
EDF. 

1.6.2.  Division of labour and co-financing 

The  EU  Code  of  Conduct  on  Complementarity  and  Division  of  Labour  in 
Development  Policy,  adopted  by  the  Council  in  May  2007,  presents  11 
principles  for  reducing  aid  fragmentation  at  the  country,  regional  and  global 
level.  Dependent  on  local  circumstances  at  country  level,  the  Code  is  being 
implemented  at  varying  speeds.  A  fast-track  initiative  aimed  at  speeding  up 
division  of  labour  has  been  established  with  an  EU  Member  State  or  the 
European Commission leading the work in a number of countries. This initiative 
incorporates  a  proposal  by  Commissioner  Louis  Michel  whereby  responsibility 
for specific projects in a particular sector can be delegated by the Commission to 

25 

http://www.accrahlf.net/  

EN 

24 

   EN 

 
                                                 
a  Member  State  and  vice-versa  in  what  is  called  delegated  cooperation. 
Implementation  of  fast-tracking  has  started,  and  more  cases  of  delegated 
cooperation are expected.  

in 

two  directions:  from 

the 
Delegated  cooperation/co-financing  works 
Commission  to  a  Member  State,  after  prior  assessment  of  the  Member  State's 
capacity  to  manage  EC  funds,  and  from  a  Member  State  to  the  Commission. 
Examples  are  the  delegation  of  the  Central  Kenya  Roads  programme  from  the 
Commission to Germany's Kreditanstalt für Wiederaufbau, and the co-financing 
arrangements  with  Germany  for  the  Global  Energy  Efficiency  and  Renewable 
Energy Facility and with Sweden for the Global Climate Change Alliance, both 
of  which  come  under  the  Thematic  Programme  Environment  and  Sustainable 
Management of Natural Resources, including Energy (ENRTP). 

The  mid-term  reviews  for  the  Strategy  Documents  under  the  financial 
instruments  of  the  EC  Budget  (2009)  and  the  EDF  (2010)  provide  a  further 
opportunity to enhance division of labour. 

An EU toolkit on complementarity and division of labour was prepared by the 
Commission together with the Member States to facilitate practical work on the 
ground. A compendium of good practices was drawn up to support international 
dialogue26. 

Monitoring the Paris Declaration: results of the 2008 survey 

The  first  challenge  for  developing  countries  is  to  improve  the  quality  of  their 
poverty-reduction  strategies  (better  prioritisation,  stronger  links  with  national 
budgets  and  more  results-oriented).  The  second  is  to  improve  and  reform  their 
national  systems  for  public  financial  management  and  procurement.  Donors 
should  use  country  systems  more  and  increase  the  predictability  of  aid.  They 
should also refrain from setting up parallel project implementation units, which 
undermine  local  capacity  development,  make  more  use  of  programme-based 
approaches  and  better  coordinate  in-country  missions  and  analytical  studies.  In 
the light of these recommendations, the Commission should be able to meet the 
following  commitments:  coordinate  technical  cooperation  (including  missions 
and analytical studies), cut the number of parallel project implementation units, 
and  raise  aid  predictability.  Major  challenges  for  the  Commission  concern  the 
use of country systems. 

26 

COM(2007) 72 final of 13.2.2008, SEC(2007) 248  

EN 

25 

   EN 

 
                                                 
1.7. 

Partnership with United Nations and World Bank 

1.7.1.  United Nations 

The  EU  sees  the  UN  as  one  of  its  most  important  partners  in  the  field  of 
development.  The  EU-UN  partnership  is  guided  by  the  international  policy 
agenda,  in  particular  the  UN  Millennium  Declaration  and  the  Millennium 
Development  Goals.  Throughout  2008,  the  Commission  continued  its  contacts, 
cooperation and dialogue with the UN and its agencies, funds and programmes. 
This cooperation has developed into a mutually beneficial partnership in policy, 
normative and operational terms with individual UN bodies and the UN system 
as  a  whole.  These  joint  efforts  have  resulted  in  saving  and  protecting  lives, 
strengthening governance, protecting human rights, preventing and overcoming 
crises as well as promoting human development and sustainable livelihoods. 

The  Commission  has  continued  to  give  particular  attention  to  projecting  EU 
policy priorities and values in the UN context. This goes hand in hand with the 
Commission's increased presence and input in policy-making and debates at UN 
institutional  fora,  conferences  and  conventions.  UN  reform  remains  a  key 
priority for the Commission, which supports UN efforts to promote system-wide 
coherence and to increase UN effectiveness in its country-level operations. The 
Commission has shown particular interest in progress in the implementation of 
the 'Delivering as One' initiatives. 

In  2008,  the  Commission  took  an  active  part  in  the  first  Development 
Cooperation Forum, a new initiative of the UN Economic and Social Council to 
strengthen the UN's role in the development cooperation dialogue. 

In  the  context  of  UN  efforts  to  mobilise  global  support  towards  achieving  the 
MDGs,  the  Commission  called  on  all  partners  to  reaffirm  their  existing 
commitments.  Its  positions  on  development  cooperation  policies  achieved  high 
visibility in the UN context thanks to the participation of Commission President 
José  Manuel  Barroso  and  several  Commissioners.  This  built  on 
the 
Commission's  active  participation  in  the  UN  Secretary-General's  Africa  MDGs 
Steering Group of which President Barroso is a member. 

The  positive  conclusion  of  the  UN  events  in  September  led  to  the  further 
enhancement  of  the  global  partnership  for  development  at  the  UN  Review 
Conference  on  Financing  for  Development in Doha, Qatar, in early December. 
The  action-oriented  outcome  of 
the  donors' 
commitment to increase their development assistance despite the financial crisis. 
The  EU  as  a  whole  showed  strong  leadership  throughout  the  conference, 
building  bridges  with  partners  in  the  spirit  of  global  partnership  and  always 
aiming for a consensual result. 

the  conference  reaffirmed 

The protection of human rights was an important theme in 2008, which saw the 
60th  anniversary  of  the  Universal  Declaration  of  Human  Rights.  In  the  UN 

EN 

26 

   EN 

 
framework, the Commission worked to secure the universal rights of people, as 
well as principles for respect of cultural diversity, and an emerging consensus on 
women's rights through the strengthening of the UN's so-called gender equality 
architecture.  Together  with  the  UN,  the  Commission  gave  high  priority  to 
mainstreaming human rights into development policy so as to demonstrate that 
the two are mutually reinforcing goals. 

Throughout the year, the Commission played a leading role in other UN events 
and  high-level  conferences  such  as  the  FAO  Conference  on  World  Food 
Security,  Climate  Change  and  Bioenergy  (Rome,  3-5  June).  At  the  UN 
Conference  on  Trade  and  Development  (UNCTAD  XII)  in  April  in  Accra, 
progress was made on UNCTAD reform. The commitment to make globalisation 
a  tool  for  poverty  eradication  was  reaffirmed.  The  European  Community,  as  a 
full  member  of  the  Food  and  Agricultural  Organisation  (FAO),  played  an 
important bridge builder role in the FAO reform process.  

1.7.2. 

International Financial Institutions 

Cooperation  between  the  Commission  and  International  Financial  Institutions 
(IFIs)  especially  the  World  Bank  (WB)  and  the  International  Monetary  Fund 
(IMF)  continued  to  grow  in  2008.  Important  steps  were  taken  in  EC  relations 
with regional development banks. 

World Bank and IMF 

The  Commission  and  the  World  Bank  cooperated  on  crucial  policy  initiatives 
including the response to the food crisis, climate change financing and support 
for  fragile  states.  In  2008,  the  Limelette  Process,  which  was  launched  in  2003 
between  the Bank and the Commission  to improve their cooperation in  Africa, 
was expanded to incorporate the Tunis Process, a joint EC-African Development 
Bank initiative which aims to achieve greater development results. The Merged 
Process was initiated in June 2008 when senior officials of the three institutions 
met  in  Tunis  to  launch  a  tripartite  partnership  on  budget  support  and  public 
finance management (PFM). They agreed to start cooperation with four African 
pilot countries: Ghana, Mali, Mozambique and Rwanda.  

Regional Development Banks 

The Commission maintained strong bilateral ties with the African Development 
Bank  (AfDB),  providing  financial  support  for  the  African  Economic  Outlook, 
published  jointly  by  the  AfDB,  the  Development  Centre  of  the  OECD  and  the 
UN Economic Commission for Africa. 

1.7.3.  OECD 

Cooperation with the OECD on development issues intensified in 2008, notably 
in preparation for the High-Level Forum in Accra. Commissioner Michel spoke 

EN 

27 

   EN 

 
at  the  annual  High-Level  Meeting  of  the  Development  Assistance  Committee, 
stressing  the  need  for  donors  to  live  up  to  their  commitments  and  use  the 
challenge of the key development events in 2008 to help achieve the MDGs. The 
Commission participated actively in a reflection group preparing a new mandate 
for  the  DAC.  As  part  of  the  DAC's  regular  peer  reviews  of  its  members,  the 
Commission and Canada examined Norway's development assistance. 

1.8. 

Poverty focus in middle-income countries 

More  than  80  countries  are  classified  as  Middle-Income  Countries  (MICs).  A 
large  and  diverse  group  of  countries,  MICs  make  up  just  under  half  of  the 
world’s  population  and  are  home  to  one  third  of  those  people  across  the  globe 
living  on  less  than  two  dollars  per  day.  The  highest  income  MICs  have  a  per 
capita income 10 times higher than the lowest income ones. In fact, MICs break 
down into two groups: Lower Middle Income Countries ($936-$3 705 GNI per 
capita) and Upper Middle Income Countries ($3 706-$11 455 GNI per capita)27. 
Disparities  in  income  and  levels  of  social  exclusion  remain  significantly  high, 
especially  in  Latin  America  and  Asia.  The  recent  global  economic  slowdown 
and the related decrease in capital investment and development aid may further 
worsen this situation. 

Commission  assistance  to  MICs  aims  to  enhance  sustainable  development  and 
reduce poverty in line with the MDGs. The Commission uses several financial 
instruments including: the Development Cooperation Instrument (DCI) for Latin 
America  and  Asia  and  the  European  Neighbourhood  Partnership  Instrument 
(ENPI) for eastern European and southern Mediterranean countries. 

All 17 Latin American countries are presently defined as MICs. In line with the 
European  Consensus  on  Development  and  the  recent  Communication  on  a 
stronger partnership between the EU and Latin America, the Commission takes a 
flexible approach that corresponds to the level of development of each country. 

For  the  Lower  Middle  Income  Countries,  EC-funded  cooperation  concentrates 
mainly  on  supporting  policies  to  reduce  poverty,  inequality  and  exclusion 
through  the  promotion  of  social  cohesion  and  institution  building.  This 
cooperation  with  countries  such  as  Honduras,  Ecuador,  Paraguay,  Peru  and 
Nicaragua includes budget and sector support programmes, which focus mainly 
on  social  sectors  and  the  improvement  of  public  financial  management.  Other 
countries  like  Colombia  and  Bolivia  benefited  from  cooperation  on  peace, 
stability,  the  rule  of  law,  the  fight  against  drugs  or  water  management.  For 
Higher  Middle  Income  Countries,  more  emphasis  was  put  on  economic  and 
trade  cooperation,  the  promotion  of  sectoral  dialogues  and  support  for  higher 
education. 

27 

World Bank list of economies (July 2008)  

EN 

28 

   EN 

 
                                                 
The overarching objective of EC assistance under the Development Cooperation 
Instrument  for  Asian  MICs  is  poverty  reduction.  Aid  provided  by  the 
Commission  covers  areas  such  as  economic  and  environmental  issues, 
education,  health,  government  and  civil  society  depending  on  countries' 
priorities at national or regional level. The regional poverty level has diminished 
in recent years, mainly due to the rapid growth of large countries such as China. 
Nevertheless  those  people  recently  lifted  out  of  poverty  in  Asian  MICs  remain 
highly  vulnerable  to  negative  effects  caused  by  the  recent  food,  energy  and 
financial crises. 

The  EU's eastern neighbours are now classified as MICs. While  poverty in  the 
region  has  been  reduced,  significant  social  inequalities  and  exclusion  persist. 
The  introduction  of  the  European  Neighbourhood  Partnership  Instrument  and 
increased assistance in the form of sector budget support added to the efficiency 
of  the  EC  assistance.  However,  needs  remain  significant  in  this  region  (for 
example the Republic of Moldova is still the poorest country in Europe). 

The  southern  Mediterranean  region 
is  also  affected  by  poverty.  The 
consequences  were  especially  visible  in  2008  when  rises  in  commodity  prices 
provoked  social  unrest  in  some  countries.  Therefore,  in  countries  with 
particularly high poverty levels, ENPI assistance supported the development of 
basic social infrastructure (social safety nets, health and education). 

1.9. 

Sectoral policy and strategy developments 

Human and social development 

To accelerate the implementation of the EU policy to provide human resources 
in health, the Commission prepared a Progress Report on the implementation of 
the  European  programme  for  action  to  tackle  the  critical  shortage  of  health 
workers in developing countries (2007-2013)28. The report, with input from 18 
Member  States,  shows  that  the  EU  supports  health  programmes  with  a  human 
resources for health (HRH) component in 51 of the 57 countries identified by the 
World  Health  Organisation  as  facing  an  HRH  crisis.  It  provides  support  for 
regional  research,  capacity-building  and  knowledge-generating  initiatives.  The 
report begins to explore, at the global level, opportunities to encourage circular 
migration and the introduction of other mechanisms to deal with the pull factors 
in  the  migration  of  health  workers  from  poorer  countries.  Yet,  the  responses 
from the Member States indicate that actions in health and on HRH are largely 
uncoordinated.  This  runs  counter  to  the  idea  of  the  programme  for  action  as  a 
guiding tool for EU collective action on health and HRH. The Commission will 
work with the Member States in 2009 to translate the existing policy into more 
robust joint action on the ground. 

28 

SEC(2008) 2476 of 16/09/08 

EN 

29 

   EN 

 
                                                 
In  collaboration  with  the  French  EU  Presidency,  the  Commission  prepared  a 
document  on  Social  health  protection  and  health-care  financing  in  developing 
countries:  towards  a  framework  for  concerted  intervention  by  the  European 
Union29 which was discussed at an informal ministerial meeting in Bordeaux on 
29  September  2008.  In  November,  the  Council  of  the  EU  adopted  formal 
conclusions  on  strengthening  health  systems  in  developing  countries.  The 
Commission  initiated  the  progress  review  on  the  European  Programme  for 
Action  to  Confront  HIV/AIDS,  Malaria  and  Tuberculosis  Through  External 
Action  (2007-2011)30  through  a  wide  consultation  of  European  and  African 
stakeholders  at  meetings  in  Brussels  and  Dakar,  Senegal.  These  produced 
recommendations on policy updates, options and priorities for collective action 
by the European Union. Stressing the need for continued investment in new tools 
and  technologies,  the  Commission  organised  the  international  conference 
Challenges for the Future: Research for HIV/AIDS, Malaria and Tuberculosis to 
rally  political  support  and  define  research  priorities  for  the  Commission's  7th 
Research  Framework  Programme.  The  Commission  reinforced  its  internal 
coordination  on  communicable  diseases 
to  promote  policy  coherence, 
coordination  and  collaborative  action.  Ten  Commission  services  are  involved. 
The Commission worked closely with the European G8 members to consolidate 
their  response  to  HIV/AIDS,  malaria  and  tuberculosis  as  a  basis  for  a  broader 
and  more  comprehensive  G8  involvement  in  global  health  and  health-system 
strengthening  as  well  as  donor  harmonisation  and  aid  effectiveness.  On  1 
December,  the  Commission  collaborated  with  the  EU  Presidency  and  Member 
States on the EU Statement One Word: Leadership - Keeping the promise to stop 
HIV/AIDS. 

Working  with  Member  States  and  other  donors  and  stakeholders,  the 
Commission  strengthened  its  international  position  in  education  and  health.  As 
in previous years, the Commission played a key role in the Global Fund to fight 
AIDS,  Tuberculosis  and  Malaria  (GFATM)  to  which  the  EC  contributed  €100 
million in 2008. The EC's total contributions have reached €672 million over the 
last seven years. The Commission argued strongly for a better alignment of the 
GFATM-funded programmes with countries' national strategies and worked for 
better coordination between EU Member States to prepare EU positions. It also 
actively  participated  in  the  International  Health  Partnership.  The  Commission 
continued its close involvement in the Education for All – Fast Track Initiative 
(FTI), especially on governance reform, strengthening of country level processes 
and the oversight of its evaluation. 

The Commission was involved with the UN and its agencies in the preparations 
leading  up  to  the  UN  events  on  Africa  and  on  the  MDGs  in  New  York  in 
September  2008.  This  gave  it  considerable  influence  on  the  various  outcome 
documents  on  education  and  health  feeding  into  the  UN  Secretary  General's 

29 
30 

http://ec.europa.eu/development/icenter/repository/social_health_protection_codev_2008_en.pdf  
COM(2005) 179 final of 09.04.2008 

EN 

30 

   EN 

 
                                                 
MDG Africa Group. During the events, the Commission signed up to the Class 
of 2015, an initiative for stepping up international advocacy on education goals. 
In line with the Joint Africa-EU Strategy, an active dialogue with UNESCO in 
the  context  of  the  Education  for  All  (EFA)  process  was  instrumental  in 
establishing the international Task Force on Teachers for EFA. 

Food Security 

Global food security was negatively affected by food price increases in 2007 and 
2008.  In  the  course  of  2008,  the  European  Community  responded  to  this 
challenge  in  various  ways.  First,  an  additional  €130  million  from  the 
Commission's Directorate-General for Humanitarian Aid was allocated for food 
assistance.  Second,  where  feasible,  resources  from  other  development 
cooperation  instruments  were  mobilised,  making  available  a  further  €250 
million31. Third, following a proposal by the Commission of July, the European 
Parliament and the Council adopted a Regulation establishing a facility for rapid 
response  to  soaring  food  prices  in  developing  countries32.  This  Regulation 
provides for the implementation of a €1 billion Food Facility, and constitutes the 
main EU response to the worsening global food security situation in 2008. The 
Food Facility will support measures in developing countries to (1) encourage a 
positive  supply  response  from  the  agricultural  sector;  (2)  respond  rapidly  and 
directly to the negative effects of volatile food prices on local populations, and 
(3)  strengthen  the  productive  capacities  and  the  governance  of  the  agricultural 
sector to enhance sustainability. It will operate for a period of three years (2008-
2010)  and  thus  be  an  instrument  that  operates  in  the  time-spectrum  between 
emergency assistance and long-term development cooperation. 

Sugar 

As part of the accompanying measures to support the adaptation process of ACP 
Sugar  Protocol  countries  following  the  reform  of  the  EU  sugar  regime,  the 
Commission  decided  on  13  June  2008  to  add  €3  million  to  the  indicative 
allocation  of  the  available  budget  between  eligible  countries  (€670  million  in 
total for the 2007-2010 period). Following the adoption of all country strategies 
and Annual Action Plans (AAPs) for 2007, the 2008 AAPs were adopted. 

Environment 

The Commission's services finalised in July 2008 a staff working document on 
the  implementation  of  the  Global  Climate  Change  Alliance  (GCCA)33  which 
was  allocated  €60m  for  2008-2010  to  create  awareness  and  jointly  address 

31 

32 
33 

€50 million from the Food security Thematic Programme, targeted at 12 developing countries; and 
€200 million from the EDF10 reserve for unforeseen needs, targeted at 30 ACP countries. 
Regulation (EC) No 1337/2008 of 18 December 2008. 
For further information : 
http://ec.europa.eu/development/icenter/repository/env_cc_GACC_com2007_0540_en.pdf 

EN 

31 

   EN 

 
                                                 
climate  change  between  the  EU  and  the  most  vulnerable  developing  countries 
(typically  least  developed  countries  and  small  island  developing  states).  Based 
on a number of criteria, four countries have been identified to start up activities 
under the GCCA. They are Vanuatu, the Maldives, Cambodia and Tanzania. The 
activities  will  be  mostly  in  the  form  of  budgetary  assistance  for  the 
implementation of their Climate Change Action Plans. 

The  first  Voluntary  Partnership  Agreement  (VPA)  under  FLEGT  (Forest  law 
enforcement,  governance  and  trade)34  was  concluded  with  Ghana  on  4 
September  2008.  Negotiations  progressed  with  Malaysia,  Cameroon  and  the 
Republic  of  Congo,  with  a  view  to  reaching  an  agreement  in  the  first  half  of 
2009. Negotiations are ongoing with Indonesia, and a number of countries have 
expressed  their  interest  in  starting  negotiations  in  2009:  Central  African 
Republic,  Gabon,  Liberia  and  Vietnam.  The  VPA  negotiations  have 
demonstrated  that  stakeholder  involvement  in  developing  national  policy  and 
systems  is  essential  for  their  successful  conclusion  and  has  resulted  in  new 
working practices and relationships in the forest sector. 

As  a  key  element  of  the  FLEGT  Action  Plan,  the  Commission  has  proposed  a 
new  regulation  to  strengthen  the  EU's  efforts  to  stop  illegal  logging.  It  is 
designed to encourage the purchase and use of timber products from identified 
authorised sources and to support timber-producing countries to develop FLEGT 
voluntary partnership agreements.  

Energy 

The  EU  is  engaged  in  several  initiatives  to  support  the  provision  of  adequate, 
affordable and sustainable energy to developing countries. These include the EU 
Energy Initiative for Poverty Eradication and Sustainable Development and the 
EU-Africa  Partnership  on  Energy.  EU  energy  policy  which  aims  to  deliver 
sustainable,  secure  and  competitive  energy  to  all  Member  States,  also  aims  to 
integrate  Europe’s  energy  and  external  and  development  policies.  The  Second 
Strategic  Energy  Review,  adopted  in  November  2008,  reiterates  that  energy 
must be given the political priority it merits in the EU's international relations. 
Developing  countries  facing  similar  energy  and  climate  challenges  will  benefit 
from EU efforts to diversify energy supply and to develop energy-efficient and 
renewable  energy  technologies.  The  Review  urges  the  EU  to  assess  the 
increasingly  important  role  of  Africa  in  EU  energy  security,  to  intensify  its 
energy  relationships  with  Africa,  together  with  its  support  for  the  regional 
integration of electricity markets and the promotion of renewable energy.  

Following  the  launch  of  the  Africa-EU  Energy  Partnership  in  December  2007, 
several  high-profile  initiatives  of  the  Commission  have  kick-started  the 

34 

For further information: 
http://ec.europa.eu/development/policies/9interventionareas/environment/forest/flegt_en.cfm 

EN 

32 

   EN 

 
                                                 
cooperation including a joint energy mission of Commissioners Andris Piebalgs 
and Louis Michel to Africa.  

EC support for energy has become more visible with its inclusion as a priority 
area  in  the  European  Consensus  on  Development  and  the  awareness  created 
through  the  ACP-EU  energy  facility  and  the  EU-Africa  Partnership  on 
Infrastructure. Energy is a development sector in the indicative programmes of 
15 countries under the 10th EDF. Six of them are in Africa and nine in the Pacific 
region. Additional support for energy is included in the thematic programme on 
environment and sustainable management of natural resources, including energy. 
The replenishment of the Energy Facility (€200 million) and the reinforcement 
of the EU-Africa Infrastructure Partnership and its Trust Fund (€300 million) are 
foreseen  under  the  10th  EDF  intra-ACP  programme.  In  2008,  a  number  of 
initiatives  were  launched  at  continental/regional  and  bilateral  level  to  support 
African  Power  Pools  and  the  Forum  for  Utility  Regulators,  to  promote  energy 
interconnections,  renewable  energy  and  energy  efficiency  and  to  encourage 
investment in the energy sector. 

Energy is also a major concern of the European Neighbourhood Policy, in both 
its southern and eastern dimensions. As part of the proposed Eastern Partnership, 
the EU plans to include energy-interdependence chapters in the new Association 
Agreements  with  its  eastern  neighbours.  These  chapters  intend  to  increase 
energy security in the partner countries as well as in their relations with the EU. 
The multilateral approach will also include a platform on renewables and energy 
efficiency.  Looking  south,  energy  issues  have  long  been  a  priority  in  Euro-
Mediterranean  relations.  The  Union  for  the  Mediterranean  sets  a  framework  to 
foster  cooperation  in  order  to  offer  secure  and  affordable  energy.  Concrete 
initiatives have also been launched, such as the development of a Solar Plan in 
support of solar energy. 

The  energy  related  activities  in  both  the  Development  Cooperation  Instrument 
and  the  European  Neighbourhood  Policy  Instrument  take  into  account  the 
objectives of the European Strategic Energy Technology Plan (SET-Plan)35. 

Transport  

In  the  first  half  of  2009,  the  Commission  will  look  at  ways  to  strengthen 
cooperation on transport between the European Union and Africa. This follows 
the launch of the EU-Africa Partnership on Infrastructure and the first steps by 
the  EU  in  2008  to  support  the  African  Union  Commission  on  infrastructure 
planning. EU efforts will focus on the ongoing cooperation in civil aviation, as 
wells as road safety, multi-modal transport, and maritime transport (in particular 
the motorways of the sea). 

35 

COM (2007) 723 final of 22/11/2007 

EN 

33 

   EN 

 
                                                 
The Commission is also willing to share methods and instruments of its Trans-
European  Networks  in  the  area  of  transport  as  a  benchmark  for  further 
infrastructure coordination and development. 

In  addition,  the  Commission  has  sought  to  establish  a  close  partnership  in  the 
area of aviation with its African partners: the African Union, regional economic 
communities  and  individual  states.  The  aim  is  to  support  the  liberalisation  of 
access to air transport markets in Africa, through sharing the experience of the 
EC internal market. 

The  Commission  has  provided  €750 000  to  the  African  Union  Commission 
under the EU-Africa Partnership on Infrastructure for Yamoussoukro Decision36 
support initiatives. 

The  EU  –  Africa  transport  cooperation  will  also  look  at  the  experience  gained 
with  North  African  countries  in  the  framework  of  EuroMed  Transport.  The 
implementation  of  the  Regional  Transport  Action  Plan  (RTAP)  for  the 
Mediterranean for 2007-2013 is ongoing. First results in terms of approximation 
of legislation to the EU acquis in the fields of market liberalisation, safety and 
security  are  expected  for  2009.  Discussions  on  the  methodology  for  defining  a 
trans-Mediterranean transport network are also proceeding. 

Information and Communication Technologies 

The  Commission  considers  information  and  communications  technology  (ICT) 
as an enabling tool to reach other development objectives via job creation, and to 
underpin  efforts  to  attain  the  MDGs.  Attracting  private  investments  requires  a 
stable legal environment and an appropriate regulatory framework. This is why 
the  Commission  directs  its  actions  towards  creating  national  and  regional 
regulatory frameworks for electronic communications that ensure a level playing 
field for all entrants.  

Further  investments  are  being  supported  in  broadband  telecommunication 
networks  through  public-private-partnerships  and  in  non-commercial  electronic 
applications, such as telemedicine and e-learning.  

The EU-Africa Partnership on the Science, Information Society and Space aims 
to strengthen cooperation in building knowledge-based economies in Africa and 
will formulate a response to the African Regional Action Plan on the Knowledge 
Economy. 

Research 

36 

The Yamoussoukro Decision aims to create a single African airspace, one of its most innovative 
provisions is that (eligible) air carriers have unrestricted access to routes within Africa. 

EN 

34 

   EN 

 
                                                 
In  the  research  domain,  the  Africa-EU  Partnership  for  Science,  Information 
Society  and  Space37  received  impetus  following  a  joint  statement  issued  by 
European  Research  Commissioner  Janez  Potočnik  and  African  Union 
Commissioner  Jean-Pierre  Ezin  in  October  2008.  Six  priority  projects  for 
immediate  implementation  were  identified.  Another  concrete  step  was  the 
secondment  of  a  senior  European  scientific  officer  to  the  Secretariat  of  the 
African Union in Addis Ababa. 

Progress  was  made  with  China  and  India,  in  particular  in  issuing  coordinated 
calls for projects in selected research fields of mutual interest. Several regional 
information  and  matching  events  to  enhance  scientific  and  technological 
cooperation  were  held  with  the  participation  of  research  teams  from  European 
and ASEAN countries. 

Latin  American  teams  had  a  good  participation  rate  in  the  Seventh  Research 
Framework  Programme.  Research  results  from  collaborative  projects  were 
show-cased  during  events  such  as  the  First  Environment  Ministerial  Meeting 
between the EU, Latin American and Caribbean countries and the Lima Summit. 

Aggregate  data  from  2007-2008  (as  of  February  2009)  shows  a  total 
of some 8400  evaluated  applications  from  different  regions  in  the  7th  Research 
Framework  Programme  (2007-2013),  with  Africa,  Asia  and  the  Caribbean 
having  proportionately  the  highest  number  of  successful  applicants.  Almost 
€170 million were attributed to the 1 529 most successful candidates. 

1.10.  Outlook 2009  

In 2009,  the  global  financial  crisis  and issues  of  food  security and volatility  in 
fuel/commodity  prices  combined  with  the  long-term  effects  of  climate  change, 
will  limit  the  potential  for  progress  by  developing  countries  towards  reducing 
poverty and achieving the MDGs.  

The  Commission  will  closely  monitor  and  analyse  how  these  crises  affect 
progress  towards  the  MDGs,  and  propose  measures  to  support  developing 
countries.  The  Commission  will  also  issue  its  annual  monitoring  report  on  EU 
commitments to development financing and aid effectiveness. In addition, short-
term actions under the €1 billion Food Facility will continue while a long-term 
strategy will be worked out, in particular through strengthening or expanding EU 
food security policy. 

In  this  context,  cooperation  with  international  partners  will  be  crucial  and  the 
Commission  will  further  engage  with  multilateral  financing  organisations  and 

37 

The 8th Africa-EU Partnership on Science, Information Society and Space was adopted as part of 
the Action Plan at the Lisbon Summit in December 2007 http://ec.europa.eu/research/iscp/pdf/01-
04beas2007_action_plan_science_en.pdf  

EN 

35 

   EN 

 
                                                 
contribute to multilateral processes and platforms (G8, G20, the UN conference 
on  the  development  impact  of  the  financial  and  economic  crisis)  in  order  to 
maximise  the  impact  of  international  efforts.  Similarly,  the  Commission  will 
further develop the trilateral cooperation and dialogue with Africa and China as 
well as with Africa and Brazil, both initiated in 2008. 

In  parallel,  the  Commission  will  seek  the  proactive  involvement  of  ACP 
countries  to  initiate  the  second  revision  of  the  Cotonou  agreement.  The 
negotiations with the ACP should be concluded by February 2010. 

The year 2009 will be one of consolidation and implementation of EU regional 
strategies  with  the  Caribbean,  the  Pacific  and  Africa.  In  the  context  of  the 
Africa-EU  Joint  Strategy,  the  eight  specific  partnerships,  particularly  those  on 
trade  and  regional  integration  and  on  water  and  energy,  should  see  rapid 
progress.  

As  regards  environment  and  climate  change,  2009  will  be  marked  by  the 
Copenhagen  Conference  on  the  post-2012  follow-up  to  the  Kyoto  Protocol, 
which will take place in December. Policy dialogue in the context of the Global 
Climate  Change  Alliance  will  aim  to  develop  a  shared  vision  with  the  most 
vulnerable  developing  countries.  The  Commission  will  continue  to  work  on 
innovative  sources  of  funding  for  climate  change  issues.  To  complement  these 
efforts, the Commission will adopt a new strategy on disaster risk reduction and 
revise its Environmental Integration Strategy. 

In 2009, the Commission will prepare policy documents on financing of health 
systems  and  social  protection  in  health,  and  on  fostering  more  and  better 
education  in  developing  countries.  Progress  on  the  European  Programme  for 
Action  to  Confront  AIDS,  Malaria  and  Tuberculosis  through  External  Action 
(2007-2011)  will  be  reviewed.  The  Commission  will  continue  to  be  actively 
involved in the Global Fund to fight AIDS, Tuberculosis and Malaria and in the 
Education for All Fast Track Initiative. 

On  cross-cutting  issues,  prioritised  by  the  European  Consensus,  other  reports 
will  be  produced  in  2009.  An  EU  action  plan  on  gender  equality  and  women's 
empowerment  in  EU  external  action  will  be  proposed,  outlining  a  coherent 
approach  to  implement  the  2007  Communication  on  gender  equality.  As 
requested  by  the  Council  and  the  Court  of  Auditors,  a  specific  report  will  be 
prepared on ways to make environmental policy more operational on the ground.  

Special  attention  will  be  given  to  strengthening  cultural  cooperation.  A  high-
level  international  colloquium  on  Culture  and  Creativity  as  Vectors  for 
Development  will  bring  together  ministers  of  culture  and  professionals  from 
both  EU and  ACP  states in April  2009 to debate the role of cultural  sectors  in 
boosting local economies and ways of improving access of ACP cultural goods 
to EU and international markets.  

EN 

36 

   EN 

 
The  Commission,  together  with  the  Member  States  involved,  will  further 
develop  its  activities  with  the  research  community  and  produce  a  European 
Report on Development, building on the first research report issued in 2008. The 
focus  of  this  forward-looking  exercise  in  2009  will  be  development  in  the 
context of fragility. 

Finally, Policy Coherence for Development will be a major undertaking for the 
Commission in the coming year with the publication of the second EU Report on 
Coherence. The paper will attempt to provide concrete evidence of the 'beyond-
aid agenda', namely the contribution made by other EU policies to economic and 
social  development  in  poor  countries.  It  will  illustrate  how  European  policies 
affect  the  ability  of  these  countries  to  make  progress  towards  the  MDGs.  The 
report will highlight the EU's multiple and increasingly diversified relationships, 
and set out innovative approaches for a more inclusive global development. 

2. 

IMPLEMENTATION 

This  synopsis  of  the  EU's  external  assistance  is  presented  through  six  major 
implementation instruments:  

•  the European Neighbourhood and Partnership Instrument (ENPI),  
•  the European Development Fund (EDF),  
•  the Development Cooperation Instrument (DCI) 
•  the European Instrument for Democracy and Human Rights (EIDHR) 
•  the Instrument for Stability (IfS) 
•  the Instrument for Nuclear Safety Cooperation (INSC) 
A  section  of  this  chapter  is  dedicated  to  humanitarian  assistance38.  This  report 
does  not  cover  the  Instrument  for  Pre-Accession  (IPA)39  nor  the  Common 
Foreign and Security Policy40 (CFSP). 

The  geographical  cooperation  for  sub-Saharan  Africa,  the  Caribbean  and  the 
Pacific  regions  (ACP)  is  mainly  financed,  South  Africa  excepted,  from  the 
European  Development  Fund  (EDF),  i.e.  outside  the  EU  budget.  External 
assistance for other geographic areas and the thematic programmes are financed 
from the general budget of the European Community. 

Some  figures  are  given  to  illustrate  this  chapter  but  exhaustive  financial 
information can be found in Chapter 6.  

38 

39 

40 

The  European  Commission's  Humanitarian  assistance  is  covered  in  more  detail  by  the  annual 
report on humanitarian aid 2008 
For  more  information  on  the  IPA:  http://ec.europa.eu/enlargement/how-does-it-work/financial-
assistance/instrument-pre-accession_en.htm 
For more information on CFSP: http://ec.europa.eu/external_relations/cfsp/intro/index.htm 

EN 

37 

   EN 

 
                                                 
2.1. 

European Neighbourhood and Partnership Instrument 

The ENPI provides EC assistance at a bilateral or regional level to 17 countries: 
Algeria, Armenia, Azerbaijan, Belarus, Egypt, Georgia, Israel, Jordan, Lebanon, 
Libya,  the  Republic  of  Moldova  (hereafter  Moldova),  Morocco,  the  occupied 
Palestinian territory, Syria, Tunisia, Ukraine and Russia. It comprises a specific 
cross-border  cooperation  component  covering  border  regions  of  EU  Member 
States. 

2.1.1.  Bilateral and regional cooperation  

2.1.1.1.  Introduction 

Relations  between  the  EU  and  its  neighbours  are  handled  within  two  political 
frameworks: the European Neighbourhood Policy (ENP) covering relations with 
16 of the EU's immediate neighbours, and the separate Strategic Partnership with 
the Russian Federation. 

The  ENP  seeks  to  build,  together  with  partner  countries,  a  prosperous,  secure 
and  stable  neighbourhood  on  the  basis  of  shared  values  and  common  interests, 
promoting  greater  prosperity  and  economic  development,  better  governance  as 
well  as  common  stability  and  security.  The  implementation  of  the  12  ENP 
Action  Plans  (jointly  agreed  with  Armenia,  Azerbaijan,  Egypt,  Georgia,  Israel, 
Jordan,  Lebanon,  Moldova,  Morocco,  the  Palestinian  Authority,  Tunisia  and 
Ukraine) as well as corresponding bilateral and regional strategy papers provide 
the main operational tools to achieve this objective.  

In 2008, further progress was achieved in key aspects of the ENP. Political and 
financial  cooperation  was  strengthened  as  was  economic  integration.  Mobility 
between the EU and some ENP partner countries was enhanced (pilot project on 
'mobility  partnership'  in  Moldova),  cooperation  on  justice  and  the  fight  against 
organised  crime  improved  and  transport  links  strengthened.  Progress  was  also 
made towards opening EC programmes and agencies to ENP partners41. 

the  Commission 

issued  a  Communication42  on 

In  April  2008, 
the 
implementation  of  the  European  Neighbourhood  Policy,  accompanied  by  a 
sectoral  progress  report  and  12  country-specific  progress  reports  on  the 
implementation  of  the  ENP  Action  Plans  by  the  respective  countries.  The 
Communication concluded that the ENP has enabled the EU and its partners to 
make  clear  progress  in  deepening  their  cooperation  and  in  better  targeting  the 
needs and ambitions of partners, thus leading to a more differentiated policy for 
each one.  

41 

42 

A Protocol to enable Israel to participate in Community programmes was approved in April 2008. 
Negotiations for the conclusion of a similar Protocol were launched with Moldova, Morocco and 
Ukraine 
Implementation of the European Neighbourhood Policy in 2007, COM(2008)164 of 03.04.2008  

EN 

38 

   EN 

 
                                                 
In  2008,  the  Union  created  two  further  policy  frameworks,  one  each  for  its 
southern and eastern neighbours. To complement the ENP and strengthen further 
the  Euro-Mediterranean  Partnership,  the  Barcelona  Process:  Union  for  the 
Mediterranean43 was launched in Paris on 13 July 2008. It aims to reinforce the 
partnership,  offering  more  balanced  governance  of  the  process,  increased 
visibility and focus on projects promoting intra-and inter-regional cooperation.  

In June 2008, the Commission adopted a report on the first year of implementing 
the Black Sea Synergy44. The BSS complements the bilateral relations with the 
region and boosts ongoing cooperation, promoting dialogue and coordination at 
the regional level.  

On  3  December  2008,  the  Commission  adopted  the  Communication  proposing 
an  Eastern  Partnership45  to  strengthen  the  links  between  the  EU  and  the  six 
eastern ENP partners, reinforcing the bilateral agenda in the context of the ENP 
and establishing a new framework for multilateral cooperation.  

The seperate relationship between the EU and the Russian Federation continued 
via  the  Strategic  Partnership  and  its  four  Common  Spaces  (economic 
cooperation;  freedom,  security  and  justice;  external  security;  research  and 
education  including  culture).  Negotiations  for  a  new  overall  EU-Russia 
agreement are ongoing. 

Implementing the comprehensive EU cooperation agenda with the ENP partners 
and Russia has been supported since 2007 by the European Neighbourhood and 
Partnership  Instrument.  This  supports  a  wide  range  of  cooperation  activities. 
These  include  the  15  bilateral  assistance  programmes,  the  main  part  of  EU 
financial  assistance  to  the  Palestinian  Authority,  key  regional  initiatives  and 
projects  in  the  south  and  in  the  east  as  well  as  the  cross-border  cooperation 
programmes  at  the  external  border  of  the  EU.  In  2009  the  ENPI  programming 
documents will be subject to a mid-term review. 

In  2008,  the  Neighbourhood  Investment  Facility  (NIF)  was  established  to  pool 
grants  from  the  Community  and  the  Member  States  so  as  to  leverage 
investments  in  partner  countries  provided  by  the  European  public  financing 
institutions.  Lending  operations  supported  through  the  NIF  focus  on  the 
priorities  set  by  the  agreed  ENP  Action  Plans  mainly  in  the  transport,  energy, 
environment  and  social  sector.  In  2008,  the  Facility  approved  15  projects  for 
financing with a total NIF contribution of €71 million. This leveraged loans from 
European  financing  institutions  worth  approximately  €1.65  billion.  For  the 
period 2007-2013, the Commission has earmarked a total of €700 million for the 
NIF. In addition, the Member States have to date pledged €37 million in direct 

43 
44 
45 

Now called "Union for the Mediterranean" 
COM(2008) 391 of 19.06.2008 
COM(2008) 823 of 03.12.2008 

EN 

39 

   EN 

 
                                                 
contributions to the NIF Trust Fund managed by the EIB, for the period 2008-
2010. 

Cooperation in the field of higher education continued through the programmes 
Tempus IV and Erasmus Mundus External Cooperation Window. 

2.1.1.2.  Aid effectiveness and donor coordination 

Donor  coordination  is  further  improving  in  ENPI  partner  countries,  especially 
with the introduction of sector budget support (SBS) in place of project funding. 
This results in increased ownership of reforms by recipient governments. Donor 
coordination is central to the whole SBS approach and Commission experience 
emphasises  the  importance  of  a  clear  government-led  management  and 
coordination framework for a given sector. 

In  Armenia  and  Azerbaijan, 
Delegations 
effectiveness in these countries.  

in  2008 

the  opening  of  fully-fledged  Commission 
is  further  enhancing  donor  coordination  and  aid 

Ukraine has established a Donor-Government Working Group for each sector as 
part of its coordination commitment under the Paris Declaration. Other facilities 
like the establishment of a Cabinet-level or Minister-level Bureau of European 
and  Euro-Atlantic  Integration  should  improve  dialogue  and  coordination  not 
only  with  the  Commission  and  Member  States,  but  also  with  other  donors.  In 
addition,  the  Commission  has  developed  a  matrix  of  all  EU  technical  and 
financial cooperation activities with Ukraine, including those of the Commission 
and Member States. The preparation of a sector budget support in environment, 
to be financed under the 2009 Annual Action Programme, is being done jointly 
by the Commission and Sweden. 

The Commission was active in sector working groups in Moldova on health and 
social protection. These groups were led by the respective ministers and, in some 
cases,  co-chaired  by  the  Commission  Delegation.  They  took  a  sector-wide 
approach,  analysing  the  sector  allocations  foreseen  in  Moldova's  Medium-term 
Expenditure Framework 2009-2011, as well as in the main donor projects. The 
Commission played a leading role in coordinating this  sector, through its 2007 
SBS for social protection and the 2008 SBS on health. 

In  Belarus,  EU  coordination  with  major  donors  was  actively  promoted. 
Following  seminars  organised  by  the  Commission,  in  cooperation  with  the 
UNDP, Belarus has announced its interest in signing the Paris Declaration. 

Improved  coordination  and  donor  effectiveness  is  further  illustrated,  by  the 
example  of  assistance  to  the  occupied  Palestinian  territory  with  the  smooth 

EN 

40 

   EN 

 
transition  from  the  Temporary  International  Mechanism  (TIM)  to  PEGASE46 
between  February  and  March  2008.  The  TIM  was  established  in  June  2006  by 
the Commission at the request of the Quartet47 and of the European Council to 
maximise support from international donors. Building upon the TIM, PEGASE 
was launched on 1 February 2008 to support the three-year Palestinian Reform 
and  Development  Plan  and  channel  funding  from  a  wide  range  of  donors, 
helping  to  optimise  the  use  of  overall  external  assistance  to  the  Palestinian 
people. 

The NIF represents a practical step towards donor coordination, the division of 
labour  among  donors  and  harmonisation  of  procedures.  By  enabling  joint 
the  NIF  generates  greater  donor  coherence  and 
European  operations, 
coordination  in  line  with  the  objectives  of  the  Paris  Declaration  and  the  Accra 
Agenda  for  Action,  bringing  greater  visibility  to  the  European  dimension  of 
external cooperation. 

2.1.1.3.  Working towards the MDGs 

Helping  to  achieve  the  UN  Millennium  Development  Goals  is  one  of  the 
objectives of the ENPI. For instance, the substantial sector budget support (SBS) 
programme on Vocational Education and Training (VET) in Armenia explicitly 
supports  its  poverty  reduction  strategy.  In  Ukraine  and  Belarus,  a  number  of 
major  gender  equality  projects  (MDG  3)  have  been  launched,  along  with  two 
initiatives  to  combat  HIV/AIDS  (MDG  6).  The  action  programme  for  Belarus 
focused  entirely  on  environmental sustainability (MDG 7). A  project involving 
Moldova,  Ukraine  and  Russia  to  protect  the  Eurasian  steppe  ecosystems  also 
focused  on  environmental  sustainability.  Other  significant  programmes  in  the 
region  also  concentrated  on  the  environment.  In  Azerbaijan,  an  EC-funded 
project  led  to  the  adoption  of  a  social  assistance  master  plan.  Comprehensive 
healthcare programmes in various partner countries contributed to MDGs 4 and 
5.  In  any  case,  it  can  be  said  that  virtually  all  ENPI  external  assistance 
contributed directly or indirectly to reducing poverty and reaching other MDGs. 

The  same  applies  to  southern  neighbours.  Reducing  extreme  poverty  and 
providing basic social services (MDG 1) for the population were aims actively 
pursued  in  2008  in  the  occupied  Palestinian  territory,  as  well  as  in  Lebanon, 
where the Palestinian refugee camp of Nahr el Bared needs to be reconstructed. 
Equitable  access  to  healthcare  will  gradually  be  developed  in  Algeria  and 
Morocco  through  health  sector  reform  support  programmes.  In  Egypt,  the 
improvement  of  water  quality  and  waste  water  treatment  will  be  reinforced 
through  the  IWSP  Programme,  while  the  education  sector  programme  will 
increase access to education, particularly for disadvantaged children (MDG 2). It 

46 
47 

Mecanisme "Palestino-Europeen de Gestion et d'Aide Socio-Economique" 
The Quartet on the Middle East consists of the United States, Russia, the European Union, and the 
United Nations  

EN 

41 

   EN 

 
                                                 
is  also  expected  that  women's  rights  will  be  strengthened  and  that  their 
conditions  will  be  improved  through  a  project  to  promote  civil  society 
development and raise the level of human rights protection in Egypt (MDG 3). 
Sustained  EC  support  to  Libya  in  the  field  of  AIDS/HIV  prevention  and  care 
reflects,  along  with  other  measures  to  combat  infectious  diseases,  the  attention 
paid to the achievement of MDG 6. 

2.1.1.4.  Regional cooperation and integration 

ENPI  programmes  for  regional  cooperation  play  an  important  role  in  fostering 
cooperation between countries on issues of mutual interest, both in the East and 
the Mediterranean basin. Regional cooperation facilitates policy dialogue, builds 
synergies,  promotes  the  sharing  of  experiences  and  creates  networks  between 
people in the EU and the partner countries. 

In 2008, the political dialogue between the EU and its partners progressed, with 
a number of successful ministerial conferences on key areas of cooperation such 
as the environment, health, culture and infrastructure investments.  

Cooperation with Mediterranean partners 

In  2008,  €85  million  were  made  available  for  new  regional  initiatives  in  the 
Mediterranean  region.  Four  new  projects  were  identified  and  launched  in  line 
with the main priority areas of the Union for the Mediterranean.  They concern 
the environment, transport, energy and infrastructure investments.  

Recognising  the  region's  growing  environmental  problems,  the  EU  and  its 
partners  are  addressing  the  issue  of  water  scarcity  and  quality  by  initiating  a 
reform of environmental standards and investing in infrastructure. The next steps 
will be to improve governance, strengthen capacities and develop a sustainable 
Mediterranean Environment Reporting Mechanism.  

One of the greatest potentials for energy saving can be found in the construction 
sector.  An  ongoing  project  (MED-ENEC)  will  be  continued  to  provide 
assistance to partner countries to control their energy consumption in this sector. 
It  will  explore  how  energy  needs,  particularly  for  cooling  purposes,  can  be 
satisfied by energy efficient solutions combined with greater use of solar energy. 
Further  support  to  renewable  energy  and  energy  efficiency  is  also  provided 
through a project on the integration and the security of the Euro-Mediterranean 
energy  market  (MED-EMIP).  Furthermore,  market  integration  in  both  the 
electricity  and  gas  market  has  continued  to  receive  support  in  2008  in  the 
Mashreq and the Maghreb sub-regions. 

To support the economic and social development of the region, the Commission 
transport 
regional  Euro-Mediterranean 
encourages 
infrastructure  network  allowing  more  functional  and  efficient 
transport 
connections between the two shores of the Mediterranean. A new initiative will 

the  creation  of  a 

EN 

42 

   EN 

 
consolidate  the  political  dialogue,  carry  out  analyses  on  regulatory  reform, 
infrastructure  planning  and  assessment  of  financing  needs  and  support  the 
implementation of priority projects.  

Particular  efforts  will  be  made  to  create  the  Motorways  of  the  Sea.  Economic 
development  and  innovation  will  also  be  encouraged  through  the  creation  of  a 
Euro-Mediterranean  information  society.  A  new  project  will  foster  the 
establishment of a harmonised and investment-friendly enabling environment in 
the electronic communications sector. 

In  2008,  the  Commission  also  continued  to  support  civil  society  initiatives  in 
favour  of  the  Middle  East  peace  process  through  a  new  allocation  for  the 
Partnership  for  Peace  programme,  which  encourages  cooperation  between 
Israeli and Arab people through a number of civil society initiatives. Finally, the 
Commission  has  continued  to  support  the  Facility  for  Euro-Mediterranean 
Investment and Partnership (FEMIP), with an additional €32 million allocated in 
2008. Seven new risk capital operations were contracted by the EIB in 2008 for 
a total amount of €60 million. More than €10 million was approved for technical 
assistance  operations  which  support  FEMIP  operations  such  as  environmental 
projects, as well as investment funds. 

Cooperation with eastern partners 

the  framework  of 

In 
the  Baku  Initiative,  INOGATE  and  TRACECA 
programmes  continued  to  support  policy  dialogue  and  capacity  building  in  the 
energy and transport sector.  

New  regional  projects  with  the  EU's  eastern  neighbours  received  €45  million 
funding  in  2008.  These  include  a  project  to  reduce  environmental  risks  and 
pollution and to promote more sustainable use of natural resources in the region, 
as  well  as  to  improve  the  management  of  waste.  Furthermore,  a  project  was 
launched  in  2008  to  assist  partner  countries  in  preparing  for  post-Kyoto 
negotiations. 

On  energy,  a  new  project  under  INOGATE's  umbrella  is  to  develop  energy 
efficiency  in  the  building  sector  so  as  to  help  partner  countries  reduce  their 
dependency  on  fossil  fuels  and  improve  security  of  their  energy  supply.  As 
regards  the  strategic  issue  of  energy  supply,  the  Commission  supports 
investigations into the development of a Trans-Caspian–Black Sea gas corridor. 
Both  suppliers  and  consumers  of  gas  have  an  interest  in  securing  and 
diversifying  their  gas  supplies.  The  next  step  is  to  develop  the  proposal  for  a 
"Caspian Development Corporation" and subsequently to identify infrastructure 
needs associated to a new gas supply route.  

The continuation of the European Union Border Assistance Mission to Moldova 
and Ukraine (EUBAM) was also financed in 2008 

EN 

43 

   EN 

 
The  Eastern  Partnership  initiative,  launched  by  the  Commission  in  December 
2008,  will  strengthen  the  multilateral  framework  to  the  EU’s  relations  with  its 
partners.  This  includes  four  thematic  platforms  intended  to  foster  links  among 
the  partners  themselves  and  with  the  EU  as  well  as  flagship  initiatives  to 
mobilise multi-donor support. 

It is planned also to launch an Eastern Partnership Culture Programme with the 
aim of  strengthening the capacity of cultural  operators, fostering  regional links 
and  contributing  to  the  development  of  inclusive  cultural  polices  in  partner 
countries. 

2.1.1.5.  Implementation 

The  European  Neighbourhood  and  Partnership  Instrument  entered  its  second 
year in 2008 and implementation is now well underway. A total of €1.7 billion 
was committed for the EU's 17 eastern and southern neighbours from the 2008 
EC Budget and the respective annual action programmes were adopted (except 
for Russia).  

Eastern Neighbourhood 

In the eastern ENPI countries, the bulk of funds went into sector budget support 
programmes, except for Russia and Belarus, where there is no budget support. 

A European Commission Delegation was opened in Armenia in February 2008. 
The  2007  SBS  programme  started  in  the  domain  of  Vocational  Education  and 
Training,  supporting  Armenia's  poverty  reduction  strategy  and  boosting  job 
creation.  The  2008  SBS  programme  concentrates  on  justice  reform.  It  aims  to 
help  restore  the  trust  of  the  population  toward  the  courts  and  judges  and  to 
improve  the  quality  of,  and  achieve  better  access  to,  justice.  Further  SBS  was 
provided  through  the  ongoing  Food  Security  Programme.  The  TAIEX  facility 
has begun to be extensively used and the first Twinning projects were launched 
in  the  field  of  economy  and  justice.  The  Commission  has  also  extensively 
supported civil society and NGOs. Further projects focused on the environment, 
nuclear safety and migration. 

A Commission Delegation was also opened in Azerbaijan. It is scheduled to be 
fully staffed by mid-2009. EC-funded projects successfully supported the reform 
of  the  social  protection  system,  and  set  up  an  integrated  border  management 
model  on  the  border  with  Iran.  Forthcoming  technical  assistance  projects  will 
seek to improve the investment and export climate, strengthen the capacity of the 
Ministry  of  Economic  Development  and  enhance  the  vocational  education  and 
training system. The 2007 SBS on energy will start in 2009 after late signature 
by  the  authorities.  The  first  three  Twinning  contracts  were  signed  in  2008  and 
two  other  Twinning  projects  were  awarded.  Two  new  projects  were  launched. 
Five  more  projects  are  already  in  the  pipeline.  TAIEX  continued  but  was 

EN 

44 

   EN 

 
underused,  while  the  Sigma  programme  was  launched  with  a  focus  on  public 
administration reform and public internal financial control. 

The  focus  of  assistance  to  Belarus  was  on  continued  support  to  young 
Belarusians  in  higher  education,  with  sizeable  contributions  for  the  benefit  of 
students  enrolled  at  the  European  Humanities  University,  which  is  in  exile  in 
Vilnius,  Lithuania,  for  political  reasons.  Dialogue  was  enhanced  with  the 
administration  in  the  areas  of  energy,  customs,  agriculture  and  transport. 
Application  of  the  2007  action  programme  to  support  the  implementation  of  a 
comprehensive  energy  policy  will  start  in  2009.  The  Commission  has  also 
adopted  an  action  programme  to  support  Belarusian  environmental  policies. 
Other  projects  dealt  with  promotion  of  human  rights,  support  for  democratic 
electoral  and  political  processes  and  mitigating  the  consequences  of  the 
Chernobyl catastrophe. TAIEX was successfully launched following the official 
appointment  of  the  National  Contact  Point  (NCP).  For  the  time  being, 
Belarusians  have  expressed  no  desire  for  Twinning  projects  and  the  possible 
introduction of Sigma would be premature. 

Georgia  became  a  particular  focus  of  attention  following  the  crisis  in  August 
2008.  A  comprehensive  assistance  package  of  up  to  €500  million  over  three 
years  was  then  pledged  by  the  Commission.  Of  these  funds,  the  Commission 
allocated  more  than  €60  million  in  2008  via  EuropeAid  to  support  internally 
displaced persons (IDPs) in Georgia. This was targeted budget support under the 
ENPI,  complementing  support  provided  by 
the  Directorate-General  for 
Humanitarian  Aid  and  assistance  given  under  the  Instrument  for  Stability.  The 
action supported the Georgian Government's strategy to create the conditions for 
the dignified and safe return of IDPs and to provide decent living conditions for 
the  displaced  population  and  their  participation  in  society.  In  addition  to  these 
special  measures,  populations  were  assisted  through  the  ongoing  Commission 
rehabilitation  programmes  to  support  the  Georgian-Abkhaz  and  Georgian-
Ossetian zones of conflict. Sector budget support in Georgia continued with the 
food security programme and started in the area of public finance management. 
A  further  SBS  programme  was  signed  on  criminal  justice  reform.  In  other 
traditional  assistance  projects  concentrated  on  health  care, 
domains, 
environment,  anti-trafficking  or  on  reform  of  various  public  administration 
sectors.  New  instruments,  such  as  TAIEX48,  Twinning  and  Sigma49  were 
successfully introduced. 

In Moldova, the 2007 SBS programme in support of the social assistance sector 
was  launched  (including  a  cash-benefits  system  for  the  very  poor),  to  be 
followed  by  a  programme  concentrating  on  the  health  sector.  The  SBS  food 
security programme was continued, while the Commission funded a Centre for 
Veterinary  Diagnosis  as  the  new  Moldovan  reference  laboratory  for  testing 

48 
49 

Technical Assistance Information Exchange  
Support for Improvement in Governance and Management 

EN 

45 

   EN 

 
                                                 
exports  and  imports  of  animal-origin  products.  Other  projects  concentrated  on 
justice  reform,  health  care,  the  environment,  democratisation  and  border 
management.  The  first  Twinning  project,  supporting  the  Moldovan  Parliament, 
is being implemented. 

While  the  Russian  Government  has  not  formally  endorsed  the  ENPI  bilateral 
indicative  programme  (2007-2010),  cooperation  principles  have  been  agreed. 
Bilateral projects along the four Common Spaces, nuclear safety and the ENPI 
cross-border cooperation programme are the main elements in this cooperation. 
CBC has been well received as a sign of commitment to mutual cooperation, and 
Russia has decided to provide substantial co-financing. Positive results were also 
achieved  in  the  Northern  Dimension  Environmental  Partnership  with  a  €10 
million  contribution  from  the  EC  following  €20  million  contributed  by  Russia. 
Important  progress  was  made  with  regard  to  the  North  Caucasus  special 
programme (which focuses on health care, education and job creation) and other 
priority programmes in education, civil society support and culture. 

In Ukraine, the first financing agreement for budget support in the energy sector 
was  signed  and  the  programme  launched.  Policy  dialogue  was  enhanced  on 
energy  efficiency,  removal  of  trade  barriers,  transport  and  environment  with  a 
view to preparing further budget support operations. Furthermore, dialogue on a 
sector-wide approach in the area of judiciary reform has started. As for project 
assistance,  priorities  were  nuclear  safety,  border  management  and  support  for 
sustainable regional and local development. The number of Twinning projects is 
increasing (10 projects running at the end of 2008, five projects launched and 15 
in  the  pipeline).  TAIEX  continued  and  Sigma  was  launched  with  a  focus  on 
critical areas like public procurement and reform of public administration. 

Southern Neighbourhood 

In the Southern ENPI countries, the thrust was towards economic diversification 
and  support  for  investments  and  competitiveness  in  Algeria,  Jordan,  Lebanon, 
Morocco  and  Tunisia;  health  sector  reform  in  Algeria  and  Morocco;  education 
reform  in  Egypt;  and  reform  in  the  field  of  justice  in  Jordan  and  Lebanon.  A 
substantial  proportion  of  the  assistance  took  the  form  of  sector  budget  support 
programmes  (62%  of  bilateral  assistance  commitments  in  2008).  In  several 
countries, new resources were made available to support the implementation of 
their Association Agreement  with the EU and the Action Plan, mainly through 
Twinning projects. 

Cooperation  with  Algeria  was  boosted  by  the  signature  in  2008  of  a  road  map 
for  implementing  the  Association  Agreement.  The  joint  document  identifies  a 
number of priority areas for intensifying cooperation, such as economic reform, 
trade,  energy,  mobility  and  the  fight  against  terrorism.  Two  financing 
agreements were signed early in the year to ensure the follow-up of programmes 
related to small and medium-sized enterprises (SMEs) and the justice sector. In 

EN 

46 

   EN 

 
addition, the Commission launched an annual action programme which focuses 
on health sector reform and economic diversification.  

Egypt  is  one  of  the  main  beneficiaries  of  ENPI-South  funds.  The  assistance 
underlines  continuing  EC  support  for  Egypt’s  social,  political  and  economic 
reform  agenda.  A  large  proportion  is  targeted  at  the  Transport  Sector  Policy 
Support  Programme  to  help  establish  an  efficient,  competitive,  safe  and 
sustainable  multi-modal  transport  system.  The  2007  education  sector  policy 
programme  was  reinforced,  and  the  Commission  contributed  to  a  significant 
multi-donor  effort  to  improve  water  and  waste-water  services  for  millions  of 
people. Actions are also being undertaken to strengthen civil and political rights, 
women  and  children's  rights  and  environmental  rights.  EC-Egypt  cooperation 
also consists of helping the Egyptian government to improve governance in the 
public administration.  

Concerning Israel, a first bilateral allocation for 2007-2008 was made available 
under the ENPI to encourage regional cooperation and the opening of a regular 
political  dialogue  on  issues  of  common  interest.  This  allocation  aims  at 
promoting the approximation of Israeli norms and standards to those of the EC 
through the institutional Twinning tool. So far, two Twinning projects have been 
selected in the fields of data protection and urban transport. 

In  Jordan,  the  Commission  continued  to  support  the  government's  extensive 
reform  efforts  in  the  framework  of  the  national  agenda  and  of  the  EU-Jordan 
Action  Plan.  The  2008  National  Financing  Plan  focuses  on  the  private  sector 
through two large projects, the Trade and Transport Facilitation Programme and 
the  Support  to  Enterprise  and  Export  Development  Programme.  The  reform  of 
the  criminal  justice  system,  the  fight  against  corruption  and  the  fight  against 
radicalisation are other areas of activity. Four Twinning projects were contracted 
in the field of human rights, security, energy and environmental legislation. The 
TAIEX instrument continued to be used by Jordan in 2008.  

In Lebanon, cooperation was targeted at the modernisation of the justice system, 
so  as  to  improve  the  efficiency  and  the  transparency  of  case  handling  in 
Lebanese courts, in particular by introducing IT into management processes. The 
project  will  also  allow  the  Judiciary  Studies  Institute  to  provide  training  for 
judges who face an evolving legal environment. In the poorest part of northern 
Lebanon,  the  development  of  sustainable  agricultural  practices  is  being 
promoted to alleviate the economic consequences of the conflict in the Nahr el 
Bared  area.  The  project  will  involve  the  local  population  in  decision-making 
processes. 

With  regard  to  Libya,  the  Commission  made  available  another  €4  million  in 
support of the HIV/AIDS Action Plan for Benghazi. The project will no longer 
be limited to the Benghazi region, but extended to the whole country. It will also 
address other infectious diseases. 

EN 

47 

   EN 

 
The 2008 programme for Morocco covers the three main pillars of EC/Morocco 
cooperation:  

•  progress towards democracy and the rule of law, with projects in the fields of 

human rights and institutional reinforcement;  

•  support for economic growth through budget support programmes aiming at 

fostering energy reform and improving the investment climate; and  

•  strengthening  social  cohesion  with  a  new  budget  support  programme  in  the 

field of health. 

Aid  provided  to  the  occupied  Palestinian  territory  was  channelled  mainly 
through  TIM  and  PEGASE.  Through  this  latter  mechanism,  the  EC  made 
available  a  total  of  €309  million  to  cover  the  recurrent  expenditures  of  the 
Palestinian  Authority  (Palestinian  administration  and  services,  non-salary  costs 
of  social  ministries,  Palestinian  social  protection  system,  provision  of  essential 
public services – including energy and water – and arrears to the private sector). 
It  also  covered  technical  assistance  and  equipment  in  key  sectors  for  the 
Palestinian  Reform  and  Development  Plan  and  public 
infrastructure 
development. In East Jerusalem, as in 2007, EC assistance was used to support 
social initiatives. In addition, the Commission continued to support UNRWA50, 
with a contribution of more than €75 million. Another ongoing programme is the 
Partnership for Peace, which aims to rebuild mutual trust through reconciliation 
measures. Altogether, the resources made available to the Palestinian people in 
2008 amounted to €498 million. 

Assistance  to  Syria  focuses  on  public  finance  reform.  The  objective  is  to  help 
Syria to improve its fiscal system and to streamline public finance management. 
Support  for  secondary  education  reform  was  also  made  available  in  order  to 
respond  to  the  needs  of  Syrian  society  and  to  reinforce  the  development  of  its 
market economy. 

Within  the  framework  of  the  annual  action  programme  for  Tunisia,  the 
Commission  pursued  its  support  for  the  economic  sector.  This  follows  the 
opening up of the Free Trade Area for industrial products in January 2008 and it 
is  expected  to  boost  the  integration  of  the  Tunisian  and  EU  markets.  Two 
complementary  actions  are  to  be  implemented:  a  programme  to  reinforce 
business  competitiveness  and  another  to  foster  economic  integration.  Reforms 
regarding the macroeconomic sector and the business environment are expected 
to  be  undertaken  in  parallel,  while  other  measures  are  designed  to  enhance  the 
competitiveness of the national production system.  

50 

United Nation Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) 

EN 

48 

   EN 

 
                                                 
Figure 1 ENPI - Breakdown by sector of external aid financed on the General Commission Budget 
managed by EuropeAid in 2008

Commitments ( € million )
175 M€, 11%

182 M€, 11%

112 M€, 7%

303 M€, 19%

Payments ( € million )

113 M€, 8%

55 M€, 4%

74 M€, 5%

110 M€, 8%

752 M€, 45%

Social infrastructures: education, health,
water, government and civil society,
other 

Economic infrastructures and services:
transport, communications, energy, other
services

Production: agriculture, forestry and
fishing, industry, mining and
construction, trade and tourism

Multisector/crosscutting: environment,
other

Budget support, food aid, food security

Others - including emergency
assistance, reconstruction relief

Social infrastructures: education, health,
water, government and civil society,
other 
Economic infrastructures and services:
transport, communications, energy, other
services
Production: agriculture, forestry and
fishing, industry, mining and
construction, trade and tourism
Multisector/crosscutting: environment,
other

Budget support, food aid, food security

1 052 M€, 75%

Others - including emergency
assistance, reconstruction relief

Bilateral and Multilateral ODA (EuropeAid only).

EN 

49 

   EN 

 
 
Figure 2 ENPI - External aid financed on the General Commission 
Budget managed by EuropeAid

€ million

2007

2008

Commitments

         1 666              1 773    

Payments

         1 412              1 530    

Bilateral and Multilateral flows (EuropeAid only).

Figure 3 ENPI - General and sector budget support per country

Commitments 2008 (€ million)

Country

Morocco
Tunisia
Armenia
Azerbaijan

Egypt

Egypt

Sector

GBS / 
SBS
GBS General budget support
GBS General budget support
SBS Government and civil society
SBS Government and civil society

SBS Education

SBS Transport and storage

Georgia

SBS Government and civil society

Decription

Total

Investments and exports support programme 
Economic integration support programme 
Support to justice reform in Armenia
Justice reform support programme
Education sector policy support programme-
additional commitment
Targeted support for sector reforms-transport
Support to the reform of criminal justice system in 
Georgia 

Georgia

SBS Emergency response

Support to Georgia IDPS action plan: 2008 part I

Georgia

SBS Emergency response

Support to Georgia IDPS action plan: 2008 part II

Jordan

SBS

Trade policy and regulations 
and trade-related adjustment

Moldova

SBS Health

Morocco

SBS Health

Morocco

SBS Energy generation and supply

Ukraine

SBS Energy generation and supply

Ukraine

SBS

Trade policy and regulations 
and trade-related adjustment

Trade and transport facilitation programme 
Jordan
Health sector policy support programme 
Sectoral support programme to reform of the 
Moroccan health system
Support programme for reform of the Moroccan 
energy sector
Support to the implementation of Kkraine strategy 
in the area of energy efficiency and renewable 
sources of energy
Promoting mutual trade by removing technical 
barriers to trade between Ukraine and the EU

GBS : General Budget Support
SBS : Sector Budget Support

2.1.1.6.  Monitoring 

The figures in this section come from the Results Oriented Monitoring System 
(ROM),  which  evaluates  the  impact  of  projects  on  development.  The 
methodology is described in detail in Chapter 4. 

Five  monitoring  criteria  are  used  in  this  exercise:  quality  of  design,  efficiency, 
effectiveness, impact prospects, and potential sustainability. 

60
50
18
16

20

80

16

10

51.5

33

46.6

64

76.66

70

45

EN 

50 

   EN 

 
 
 
In  the  Eastern  ENPI  region,  the  positive  trend  in  the  region  continued,  with  a 
good overall average of 2.87 out of a possible total of 4. In all, 220 projects (35 
regional and 185 national) were monitored, representing a budget of more than 
€430  million.  Overall,  ENPI-East  demonstrates  excellent 
impact  and 
sustainability (2.95 and 2.91). However, in the Caucasus, financial and economic 
viability  remains  problematic,  with  institutional  shortcomings  in  the  support 
provided to projects after external assistance has ended. 

The  economic  infrastructure  and  services  sector  scored  best  with  2.91.  The 
production sector score, although lower, was still well above target (2.81). The 
lowest  performing  area,  while  still  on  track  with  2.59,  was  the  multisectoral 
cross-cutting one. This area includes two thirds of regional programmes, which 
on average tend to have a lower rating than national projects due inter alia to the 
difficulty to raise national ownership for this kind of operations. 

Figure 4: ENPI East - Project monitoring results per ODA sector 

3.00

2.90

2.80

2.70

2.60

2.50

2.40

2.30

2.20

2.10

2.00

Social Infrastructure and
Services

Economic Infrastructure
and Services

Productuction sectors

Multisector -
Crosscutting

Relevance

Efficiency

Effectiveness

Impact

Sustainability

Figure 5: ENPI East - Performance of ongoing projects  

EN 

51 

   EN 

 
 
e
g
a
t
n
e
c
r
e
P

100
90
80
70
60
50
40
30
20
10
0

86

81

84

7

5

2

2

13

5

4

10

2

2006

2007

2008

Very good 

Good 

Problems

Major difficulties

In ENPI-South countries, 157 projects51 with a total value of €1.65 billion were 
monitored and 154 monitoring reports were produced. Of these projects, 47 were 
regional and 110 national. 

Although overall project performance (2.83 in 2008) in this region has shown an 
increase since 2002 (from 2.65), it was marginally lower than in 2007 (2.89). 

The  social  infrastructure  and  services  sector,  which  is  the  largest  one, 
representing  more  than  half  the  resources  allocated,  performed  very  well,  with 
an average score of 2.91, compared to the average of 2.83 for ENPI-South as a 
whole. The best performing sector is the production sector with a rating of 2.93. 
It covers 16 projects with a total value of €288 million. Though still in the 'good' 
category,  economic  infrastructure  projects  are  the  poorest  performers  with  an 
overall average of 2.64 in 2008. 

Figure 6: ENPI South -Project monitoring results per ODA sector 

51 

For 3 projects Monitoring Notes were produced.  

EN 

52 

   EN 

 
 
                                                 
3.00

2.90

2.80

2.70

2.60

2.50

2.40

2.30

2.20

2.10

2.00

Social Infrastructure and
Services

Economic Infrastructure and
Services

Productuction sectors

Multisector - Crosscutting

Relevance

Efficiency Effectiveness

Impact Sustainability

Figure 7: ENPI South - Performance of ongoing projects  

e
g
a
t
n
e
c
r
e
P

100
90
80
70
60
50
40
30
20
10
0

70

69

71

8

16

6

9

15

7

7

17

5

2006

2007

2008

Very good 

Good 

Problems

Major difficulties

2.1.1.7.  Results 

In  ENPI-East  countries,  a  major  achievement  was  the  start  of  the  first  sector 
budget support programmes, after a successful transition period needed to make 
effective use of the new ENPI toolbox. 

The  European  Commission  was  effective  and  quick  in  its  reaction  to  the 
Georgian  crisis  in  August  2008.  After  pledging  a  €500  million  assistance 
package over three years, the Commission managed to allocate over €60 million 
of those funds through the ENPI before the end of 2008 in support of internally 

EN 

53 

   EN 

 
 
 
displaced  persons  in  Georgia.  This  complemented  EC  humanitarian  aid  and 
assistance given under the Instrument for Stability for the UN flash appeal52. 

An example of sector budget support in Eastern Europe is in Moldova, where the 
Commission  managed  to  stabilise  the  Moldovan  budget  at  a  time  of  growing 
global  and  regional  financial  crisis  via  macro-financial  assistance  and  budget 
support. Part of these funds explicitly targets the very poor through a new social 
assistance cash-benefits system. 

In the South Caucasus, Commission support for the Armenian VET (vocational 
education and training) sector has made refurbishment of VET centres possible 
and  laid  the  basis  for  a  comprehensive  national  VET  structure.  The  follow-up 
phases  will  create  an  even  closer  link  to  the  labour  market  and  its  need  for  a 
qualified work force. 

The  three  demand-driven  institution-building  instruments,  Twinning-TAIEX-
Sigma,  are  now  welcomed  by  most  neighbourhood  countries  and  Russia,  with 
countries  using  at  least  one  of  the  three.  The  activities  funded  have  steadily 
increased and their implementation has grown accordingly. 

In  ENPI-South  countries,  cooperation  with  Morocco  achieved  excellent  results 
in  2008,  as  illustrated  by  the  level  of  payments  (€224  million).  This  figure  is 
very  close  to  the  amount  of  commitments  (€228  million),  which  was  itself 
exceptionally  high  in  2008  due  to  a  rescheduling  of  financial  commitments 
between  2008  and  2009.  Two  thirds  of  this  total  concerned  budget  support 
operations. Good performance and a relatively high absorption capacity are two 
of the justifications for the EU decision to grant Morocco 'advanced status'. 

The  Temporary  International  Mechanism  (TIM)  established  at  Commission 
initiative to respond to the difficult situation in the occupied Palestinian territory, 
was  operational  from  June  2006  to  March  2008.  It  allowed  direct  financial 
assistance to be provided to more than one million people. Using three separate 
'windows', the TIM set up systems to provide essential supplies and services, as 
well as social allowances to public service providers and vulnerable Palestinians. 
This mechanism was also successful in mobilising Member States' support (€185 
million  from  the  total  of  €643  million  managed  through  the  TIM).  In  the  first 
quarter of 2008, PEGASE replaced TIM, with the aim of moving gradually from 
emergency  assistance  to  development  and  institution-building  support  to  the 
occupied Palestinian territory. 

52

EN 

http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/08/645&format=HTM

L&aged=0&language=EN&guiLanguage=en  

54 

   EN 

 
                                                 
 
2.1.1.8.  Prospects  

Based on the lessons learned from previous external assistance programmes and 
instruments 
the  European  Neighbourhood  and 
Partnership  Instrument  clearly  improves  the  quality  of  Commission  support  in 
many ways, making it more coherent and efficient.  

like  Tacis  and  MEDA, 

In  line  with  these  improvements,  the  period  of  transition  in  eastern  ENPI 
countries  away  from  project-based  programmes  to  the  greater  use  of  sector 
budget support (now more than 50% on average) ended in 2008. The first SBS 
operations have begun, and this approach will determine EU external assistance 
to its eastern neighbours in the coming years. The principle of focusing on fewer 
priorities  (or,  in  most  cases,  on  a  single  sector  per  year)  has  been  respected  as 
planned, and will contribute to more efficient utilisation of available funds. The 
assistance priorities reflect the objectives of the national indicative programmes 
2007-2010  for  each  partner  country,  effectively  driving  the  process  in 
accordance  with  the  European  Neighbourhood  Policy  and  therefore  increasing 
coherence. 

This means that from 2009, in Ukraine for example, the Commission will pursue 
sector support operations on agreed priorities like the environment sector, with 
active support from Sweden in the design, implementation and the monitoring of 
this operation. Forthcoming programmes could focus on the transport sector, the 
judiciary  and  border  management.  Similarly,  in  other  ENPI-East  countries,  the 
Commission will embark on sector support programmes tailored to each country' 
needs  and  in  line  with  the  EU's  external  assistance  strategy.  In  addition,  in 
Armenia,  a  team  of  high-level  experts  drawn  primarily  from  Member  States' 
administrations  will  be  funded  to  further  assist  the  Armenian  Government  in 
promoting its reform agenda  and  meeting  the objectives of the Partnership and 
Cooperation Agreement as well as of the ENP Action Plan. As for Georgia, the 
Commission will continue to implement the €500 million assistance package and 
pay close attention to the aftermath of the August 2008 crisis. From 2009, SBS 
programmes in Georgia could focus on the VET sector.  

In  addition,  the  Commission  has  proposed  the  new  Eastern  Partnership  which 
comes  with  additional  financial  assistance  –  a  substantial  increase  from  €450 
million in 2008 to €785 million in 2013. This means the addition of €350 million 
to  the  planned  resources  for  2010-2013.  Moreover,  €250  million  already 
allocated to the ENP regional programmes will be redeployed. The activities of 
the  Eastern  Partnership  will  include  the  following  flagship  initiatives  for  the 
coming years: the integrated border management programme;  an SME facility; 
promotion  of  regional  electricity  markets,  energy  efficiency  and  renewable 
energy  sources;  development  of  the  southern  energy  corridor;  and  cooperation 
on prevention, preparedness for and response to natural and man-made disasters. 

EN 

55 

   EN 

 
In  the  southern  ENPI  region,  cooperation  with  Algeria  is  expected  to  improve 
further  in  2009,  with  the  launch  of  the  first  Twinning  projects.  Moreover,  the 
2009  annual  action  programme  focusing  on  'employability',  will  be  the  first  to 
include  a  sector  policy  support  programme  (SPSP).  Concerning  Morocco,  the 
'advanced  status'  granted  by  the  EU  in  2008  is  likely  to  modify  the  content  of 
bilateral cooperation for the 2011-2013 period, for which programming missions 
will  be  launched  from  2009.  In  Tunisia,  actions  are  foreseen  in  the  fields  of 
education/employment  and  research  and  innovation.  Looking  ahead  in  Egypt, 
the EC is preparing an extensive programme of support to the health sector. In 
Jordan, a large employment and vocational training programme will be the focus 
of the assistance in 2009, which seeks to match employment market needs with 
the skills offered. The 2009 objectives for Lebanon include the reinforcement of 
human  rights  and  democracy,  support  for  the  reform  priorities  set  out  in  the 
National Reform Programme and in the joint EU-Lebanon ENP Action Plan. In 
December 2008 the Association Agreement with Syria was initialed again. This 
provides  encouragement  to  develop  EU-Syria  relations  in  the  coming  years. 
Actions  planned  for  2009  include  a  health  sector  modernisation  programme 
(Phase II), assistance for decentralisation and local development and support for 
social protection reform. For 2009 it is expected that PEGASE will still be the 
main channel for providing support to the occupied Palestinian territory. Already 
in  late  2008,  €168  million  were  made  available  to  cover  the  recurrent 
expenditures of the Palestinian Authority, together with €67 million to continue 
assisting UNRWA. 

The 100th ENP Twinning project will be launched in 2009 with a further 180 or 
so at the identification stage. This shows that Twinning has become a priority for 
ENP  countries  in  their  cooperation  with  the  EU.  For  the  first  time,  Twinning 
projects  will  be  operational  in  Algeria  (covering  three  Maghreb  countries)  and 
Armenia (covering three Caucasus countries). 

In  the  case  of  Armenia,  Georgia  and  Israel,  the  appointment  of  a  National 
Contact Point for TAIEX has proved useful for the introduction of the Twinning 
instrument  as  well  as  for  Sigma  operations.  A  similar  scenario  is  expected 
notably in Belarus in the future. Moreover, the introduction of Sigma will help 
strengthen  human  resources  within  public  administrations  enhancing  their 
participation in Twinning projects in terms of ownership and sustainability. 

The Neighbourhood Investment Facility (NIF) will continue in 2009, providing 
funds  for  a  new  series  of  infrastructure  projects.  The  NIF,  as  a  key  financing 
tool,  will  support  new  ENP  initiatives  adopted  in  the  framework  of  recent 
regional  or  multilateral  processes  like  the  Union  for  the  Mediterranean,  the 
Black Sea Synergy and the Eastern Partnership. 

In  addition,  support  for  the  private  sector  through  the  EIB's  Facility  for  Euro-
Mediterranean  Investment  and  Partnership  will  remain  crucial  in  2009  in  the 
current context of the global financial crisis. 

EN 

56 

   EN 

 
2.1.1.9.  Success stories 

Budget support in Morocco 

In recent years, the Moroccan government has embarked on an extensive reform 
programme.  This  initiative,  combined  with  good  management  of  government 
spending and macroeconomic stability, created a favourable environment for the 
use of budget support programmes. The Commission allocated €682 million to 
Morocco under its national indicative programme for 2007-2010. 

Budget  support  programmes  for  human  development,  the  elimination  of 
illiteracy,  public  administration  reform  and  health  insurance  for  the  most 
deprived  began  in  2007.  In  2008  and  2009,  four  budget  support  programmes 
targeting  health,  education,  energy  and  private  sector  development  (to  support 
investment and export capacities) were also approved. Budget support facilitated 
coordination  between  donors  and  government  for  key  governmental  reform 
programmes,  particularly  the  public  administration  reform  plan  (PARAP)  and 
the education and health sector reform programmes. 

Consumer Society and Citizen Networks (CSCN) project, Ukraine 

The  CSCN  project  is  a  joint  initiative  of  the  EU  and  the  UNDP.  Its  goal  is  to 
increase the role of civil society in Ukraine. Specifically, CSCN promotes access 
of citizens to information on product safety, consumer rights, and to the results 
of  independent  product  testing.  It  also  encourages  wider  public  discussion  of 
challenges  facing  consumers  in  Ukraine.  The  CSCN  project  has  organised  a 
number  of  consumer  awareness  campaigns.  These  included:  "Fast  food  -  fast 
help!"  drawing  attention  to  the  potential  health  risks  associated  with  too  much 
fast  food,  especially  for  youngsters;  "What  hides  behind  the  E",  a  campaign 
encouraging  consumers  to  pay  more  attention  to  the  additives  in  food;  and  the 
"Anything  Fishy"  campaign  which  encouraged  consumers  to  check  the  sell-by 
dates of products. The project also launched a Consumers' information website53. 

Eurasian steppes preservation 

Ninety  percent  of  the  sweeping  landscapes  of  the  Eurasian  steppes  have  been 
damaged.  They  are  now  one  of  the  most  fragmented  and  fragile  ecosystems  in 
the  world.  Since  2007,  the  'Eurasian  Steppe'  project  is  working  to  save  and 
restore  these  unique  landscapes  in  Moldova,  Ukraine  and  Russia  through  an 
integrated  approach  involving  the  populations  concerned  and  promoting 
cooperation  between  these  three  countries.  It  develops  mechanisms  and 
instruments  for  sustainable  agriculture,  and  helps  restore  the  socio-economic, 
historical and ecological value of steppe resources. The project has set aside one 
million  hectares  of  land to  be developed  as  a  steppe  conservation  area. It  is 

53 

www.consumerinfo.org.ua 

EN 

57 

   EN 

 
                                                 
working  with  pilot  farms  to  support  sustainable  agriculture  and  develop 
ecotourism. 

Energy efficiency in the Mediterranean 

Energy efficiency and renewable energy can help reduce energy dependency and 
mitigate  the  environmental  impact  of  extensive  energy  use  on  climate  change. 
The MED-ENEC  regional project  encourages energy efficiency in the building 
sector  in  the  Mediterranean  region.  It  focuses  on  slowing  down  the  growth  of 
electricity  consumption,  particularly  from  air-conditioning  installations,  by 
encouraging  insulation,  natural  ventilation,  bio-climatic  design  and  the  use  of 
solar thermal energy. It reinforces institutional capacities and public awareness, 
and promotes better incentive measures and construction standards. Ten energy-
efficient pilot projects have been launched in Israel (green community building), 
Turkey  (training  &  scientific  research  centre),  Jordan  (urban  villa  with  solar 
cooling), Morocco (urban building at National School of Architecture), Lebanon 
(refurbishment of a hospital), Egypt (solar cooling), Algeria (rural house), Syria 
(low-income housing), Occupied Palestinian Territory (geothermal systems), and 
Tunisia  (eco-hotel).  These  pilots  are  now  used  for  full-scale  replication  in 
hospitals or larger building programmes.  

2.1.2.  Cross-border cooperation 

Cross-border  cooperation  is  the  new  tool  of  the  European  Neighbourhood  and 
Partnership  Instrument  to  enhance  cooperation  between  Member  States  and 
partner countries across the external border of the European Union. 

Fifteen CBC programmes along the EU's eastern and southern borders (nine land 
border,  three  sea  crossing  and  three  sea  basin  programmes),  were  identified  in 
the  CBC  strategy  paper  adopted  in  March  2007.  The  first  one  was  already 
adopted  in  2007.  The  main  challenge  in  2008  was  to  finalise  the  remaining 
programme  documents  by  the  30  June  deadline.  By  that  date,  13  programmes 
had been submitted. They were all adopted in the second half of 2008 with the 
exception of Spain-Morocco and CBC Atlantic. 

Several  programmes  (Mediterranean  Sea  Basin,  Black  Sea  Basin,  Baltic  Sea 
Region, Romania/Ukraine/Moldova, Hungary/Romania/Slovakia/ Ukraine) have 
organised  the  first  management  meeting  and  prepared  the  first  calls  for 
proposals. 

Extensive negotiations for the financing agreements have been carried out with 
several  partner  countries.  Some  of  them  were  already  signed  in  2008  but  the 
majority of the signatures are expected in 2009. 

The Commission provides technical support for CBC programmes through two 
projects: RCBI (Regional Capacity Building Initiative) which organised special 

EN 

58 

   EN 

 
training  sessions  in  2008  and  INTERACT  ENPI.  The  latter  will  provide  the 
ENPI CBC community with a platform to share expertise and good practice. 

2.2. 

European Development Fund 

The  European  Development  Fund  provides  financial  assistance  to  the  EU's  78 
partner  countries  in  the  African,  Caribbean  and  Pacific  group  as  well  as  to  the 
Overseas Countries and Territories (OCTs) of Member States. 

In  2008,  the  amount  of  aid  delivered  by  the  European  Development  Fund 
continued to increase. The 10th EDF became operational on 1 July 2008, when 
the  revised  ACP-EC  Partnership  Agreement  took  effect.  The  10th  EDF  has 
available  funding  of  €22.8  billion  for  the  period  2008-2013.  Despite  the  late 
entry  into  force,  the  Commission  was  able  to  approve  62  Annual  Action 
Programmes, including major new budget support operations in 24 ACP states, 
by year-end. Compared to the previous year, global commitments and payments 
both  reached  record  levels.  During  2008,  the  Commission  put  into  place  new 
EDF financing for ACP countries and OCTs worth a total of €4.8 billion. This 
covers commitments for Sub-Saharan Africa under the 10th EDF of around €3.94 
billion,  including  budget  support  operations  of  €2.6  billion.  In  addition  to  the 
funds  committed  at  country  level,  ACP  states  also  benefited  from  regional 
cooperation  under  the  EDF,  such  as  a  new  contribution  to  the  African  Peace 
Facility of €300 million, support for ACP institutions and for the Global Fund to 
Fight AIDS, Tuberculosis and Malaria.  

ACP countries also received significant support from the EC budget through the 
thematic programmes and instruments available for all developing countries. But 
they  also  benefited  from  specific  budget  programmes  for  the  ACP.  Traditional 
ACP  suppliers  of  bananas  received  €46  million  of  technical  and  financial 
assistance to adjust to new market conditions in the banana sector and to support 
diversification.  ACP  countries,  which  were  affected  by  EU  sugar  reform, 
received €71 million in payments to support the adaptation process. (See Section 
2.3.6. for details of accompanying measures for Sugar Protocol countries). 

2.2.1.  Africa 

2.2.1.1.  Introduction 

Since  the  second  Africa-EU  Summit  in  Lisbon  (December  2007),  substantial 
progress  has  been  made  to  implement  the  Africa-EU  Joint  Strategy.  The  two 
partners  have  deepened  their  political  dialogue  and  put  in  place  an  innovative 
institutional  architecture  and  working  arrangements  necessary  to  expand  and 
consolidate  their  mutual  cooperation.  The  innovative  joint  implementing 
mechanisms  have  produced  their  first  tangible  results  in  the  eight  thematic 
partnerships of the first Action Plan of the Joint Strategy. Together with Member 
States  and  non-institutional  actors, 
the  European  and  African  Union 
Commissions  have  taken  important  steps  to  ensure  that  the  political  and 

EN 

59 

   EN 

 
operational  commitments  of  the  Action  Plan  can  be  achieved  before  the  next 
Africa-EU Summit in 2010. The new institutional architecture has also enhanced 
the  complementarity  and  coherence  of  the  European  Commission  and  EU 
Member States' relations with Africa. 

In 2008, the EU-Africa political dialogue was also strengthened on global issues 
such as the impact of the financial crisis, governance in international institutions 
and  climate  change,  allowing  the  EU  and  Africa  to  develop  a  common 
understanding and joint positions on global challenges. 

2.2.1.2.  Aid effectiveness and donor coordination 

Increasing  donor  coordination  and  the  division  of  labour  among  them  have 
become  important  instruments  for  delivering  aid  in  the  most  efficient  way  and 
for  ensuring  a  positive  impact  on  development.  In  2008,  the  Commission 
continued  to  cooperate  closely  with  other  donors.  Burkina  Faso,  Ethiopia, 
Ghana,  Mali,  Mozambique,  Tanzania  and  Uganda  are  examples  of  countries 
where  donor  cooperation  is  advanced  and  where  a  clear  division  of  labour  is 
sought. In Mozambique, the Programme Aid Partners Group (also referred to as 
the  G19)  coordinates  agencies  providing  general  budget  support.  It  sets  an 
advanced harmonisation framework and promotes mutual accountability through 
joint  annual  performance  assessments.  In  addition, 
there  are  sectoral 
coordination platforms, for example, for health and agriculture. Coordination is 
formalised through memoranda of understanding and a donors' code of conduct. 

For  the  Southern  African  Development  Community  (SADC)  region,  the 
Commission  continues  to  be  the  lead  agent  for  donor  coordination  in  a  Joint 
SADC-International  Cooperating  Partners  Task  Force,  acting  in  close  liaison 
with  the  SADC  Secretariat’s  unit  for  policy  and  strategic  planning.  The  main 
objective of the task force is to improve coordination between donors and SADC 
in implementing the Regional Indicative Strategic Development Plan.  

In Liberia and Niger, the Commission works to establish the division of labour 
among  donors  at  operational  level.  The  Liberia  Infrastructure  Rehabilitation 
Trust Fund, to which the Commission has pledged support, is a good example as 
is  the  harmonised  effort  to  strengthen  rural  development  in  Niger.  In  the  past, 
coordinated budget support and pool funding were used. New opportunities for 
setting  up  Transfer  Agreements  (aid  received  by  the  Commission  in  trust  from 
Member States or their agencies) or Delegation Agreements (funds given in trust 
to  Member  States  or  their  agencies)  are  being  created.  This  should  help  to 
concentrate  the  efforts  of  each  donor,  including  the  Commission,  on  fewer 
activities,  thereby  reducing  the  transaction  costs  for  both  donors  and  the 
beneficiary countries. 

EN 

60 

   EN 

 
In Cameroon, donors are organised at three levels: at political level involving the 
Heads  of  Mission  in  the  8+6  group54;  at  central  level,  where  the  operational 
coordination takes place through a multi-donor committee composed of heads of 
cooperation;  and  at  the  level  of  technical  thematic  working  groups.  This 
coordination  mechanism  aims  to  implement  the  Paris  Declaration  on  aid 
effectiveness  and  the  Accra  Agenda  for  Action  by  reorganising  the  working 
groups and identifying a lead donor for each sector. A comprehensive mapping 
exercise  took  place,  identifying  ongoing  programmes,  donor  participation  and 
levels  of  financing.  On  this  basis,  donors'  capacity  and  relative  degree  of 
involvement were evaluated and sector lead donors were chosen.  

2.2.1.3.  Working towards the MDGs 

Population  growth  and  the  inability  to  create  enough  jobs  despite  improved 
economic  growth  in  many  countries  in  Sub-Saharan  Africa  over  the  past  six 
years are part of the reason why poverty reduction in the region remains slow. 
Even  though  the  proportion  of  people  living  in  extreme  poverty,  defined  as 
living  on  less  than  one  dollar  a  day,  has  levelled  off,  this  number  is  likely  to 
increase  again  as  a  result  of  the  impact  of  the  financial  crisis  on  African 
countries.  The  region  is  not  on  track  to  reach  the  goal  of  reducing  poverty  by 
half by 2015. Rising food and commodity prices have been hampering growth, 
threatening  to  push  more  people  into  poverty.  Income  inequality  has  risen  in 
many countries and recent concerns about climate change and its adverse effects 
have  further  overshadowed  development  progress  in  Africa.  Developing 
countries face the worst consequences of climate change and are the least able to 
adjust.  On  current  trends,  most  countries  in  Africa,  especially  those  in  fragile 
situations,  will  not  achieve  their  MDGs  by  2015.  The  international  community 
will  need  to  do  more  in  favour  of  Africa  to  avoid  jeopardising  the  modest 
progress made towards reducing poverty and reaching the other MDGs. 

In 2008, the EC also continued to support health-related MDGs in Sub-Saharan 
Africa.  At  country  level,  the  EC  supports  health  sector  reform  and  healthcare 
delivery  approaches  that  ensure  improved  access  to  and  the  sustainability  of 
basic  services.  Serious  efforts  are  needed  to  prevent  the  spread  of  poverty-
related diseases, such as HIV/AIDS, malaria, tuberculosis and others. HIV rates 
have  been  rising  since  2001.  By  the  end  of  2006,  some  39.5  million  people 
worldwide  were  living  with  the  virus,  most  of  them  in  Sub-Saharan  Africa, 
where it remains the primary cause of death. Malaria also takes its greatest toll in 
Sub-Saharan  Africa,  where  more  than  a  million  people  die  each  year,  most  of 
them children under the age of five. Prevention, however, is expanding. The use 
of insecticide-treated bed nets among children under five has at least tripled in 
16  out  of  20  countries  in  Sub-Saharan  Africa  since  2000.  The  Commission 
channels  funds  through  international  organisations  such  as  UNICEF  to  boost 

54 

Seven EU Member States present in Cameroon and the EC plus Canada, the United States, Japan, 
the World Bank, the African Development Bank and the International Monetary Fund 

EN 

61 

   EN 

 
                                                 
anti-malaria  efforts  in  African  countries.  In  addition,  it  supports  international 
initiatives such as the Global Fund to fight HIV/AIDS, Tuberculosis and Malaria 
and the Global Alliance for Vaccines and Immunisation.  

With  regard  to  the  MDG  of  universal  primary  education,  sub-Saharan  Africa 
lags behind, with a 70% net enrolment ratio in primary school compared to an 
average of 85% for developing countries overall. A total of 35 million children 
of  primary  school-age  are  still  not  enrolled  in  school.  But  within  the  region, 
some countries have made substantial progress. Malawi, Uganda, Tanzania and 
Kenya, for instance, have abolished school fees, enabling more than one million 
extra children in each country to enrol in primary school. Poverty is the biggest 
obstacle  to  school  attendance:  children  from  the  poorest  households  are  least 
likely to attend school. 

The  Commission  provides  support  for  the  education  sector  directly  to 
beneficiary  countries  through  project  support  (in  countries  experiencing 
fragility)  and  through  general  and  sectoral  budget  support.  In  addition,  the 
Commission,  along  with  EU  Member  States,  has  been  fully  involved  in  the 
Education  for  All  Fast  Track  Initiative.  The  FTI  is  a  global  partnership  of 
developing countries, donors and NGOs, which encourages the development of 
sound education sector strategic plans and the mobilisation of financial and other 
resources  to  support  their  implementation.  In  this  framework,  the  Commission 
has  contributed  since  2006  to  the  Catalytic  Fund,  a  multi-donor  trust  fund 
managed  by  the  World  Bank.  The  purpose  of  the  fund  is  to  provide  financial 
assistance to FTI countries which have a poverty reduction strategy and whose 
education  sector  plans  have  been  endorsed  by  in-country  donors,  but  which 
experience  difficulties  mobilising  additional  external  funding.  To  date,  30 
countries  have  received  grants  from  the  Catalytic  Fund  and  donor  pledges 
amount to more than $1.4 billion.  

According  to  the  UN,  some  1.6  billion  people  have  gained  access  to  safe 
drinking  water  since  1990.  However,  almost  one  billion  people  worldwide  are 
still deprived of access to improved water supplies, 300 million of them living in 
Sub-Saharan  Africa.  A  total  of  450  million  lack  adequate  sanitation  services. 
With  the  ACP-EU  Water  Facility,  the  EC  seeks  to  contribute  to  achieving  the 
MDG target on water and sanitation. The EC contribution to the Water Facility 
under  the  9th  and  10th  EDF  amounts  to  some  €700  million,  which  will  provide 
improved  access  to  safe  water  for  14.5  million  people  and  improved  sanitary 
facilities for some 3.5 million.  

To  accelerate  progress  towards  the  Millennium  Development  Goals,  the 
Commission,  in  consultation  with  the  Member  States,  launched  in  2008  an 
enhanced  form  of  general  budget  support for  seven  African  countries  (Burkina 
Faso, Ghana, Mali, Mozambique, Rwanda, Uganda and Zambia,). This is called 
the  "MDG-Contract"  approach  to  highlight  the  contractual  nature  of  its  long-
term  financial  commitments  and  its  focus  on  MDG-related  results,  notably  in 

EN 

62 

   EN 

 
health  and  education.  An  MDG  Contract  is  designed  to  provide  more 
predictable, longer-term budget support that should help beneficiary ACP states 
to advance towards the targets. The key principles of the MDG Contract are that 
for  six  years  it  will  provide  a  minimum,  virtually  guaranteed  annual  level  of 
support; carry out annual monitoring with a focus on results; assess performance 
in a medium-term framework; and support processes of donor harmonisation and 
country alignment. 

2.2.1.4.  Regional cooperation and integration 

EC  support  for  regional  cooperation  and  integration  continued  as  part  of 
European  efforts  to  promote  growth  and  development  in  Sub-Saharan  Africa. 
Particular  attention  was  paid  to  boosting  regional  economic  integration  and 
trade.  This  included  negotiations  on  the  Economic  Partnership  Agreements 
(EPAs).  The  EU  and  its  partners  remain  firmly  committed  to  reaching 
comprehensive EPAs, which include provisions on services and investment and 
a set of regional trade-related rules.  

Together with the Commission, African regional organisations have prepared the 
10th EDF Regional Strategy Papers and Regional Indicative Programmes, which 
were  signed  in  November.  From  2008  to  2013,  the  10th  EDF  regional 
programmes  will  be  the  primary  instrument  of  EC  support  for  ACP  regional 
integration  organisations.  With  an  allocation  of  €1.78  billion,  the  available 
funding  will  almost  double  compared  to  the  2000-2007  period,  reflecting  the 
EU-ACP  consensus  on  the  importance  of  regional  issues  for  development.  In 
cases where a cross-regional approach can add value, funds from the intra-ACP 
budget will contribute to reinforcing regional integration. 

Several actions have been taken to improve  the effectiveness and  speed up the 
pace  of  implementation  of  regional  programmes  under  the  9th  EDF.  The 
Commission is increasingly making use of new instruments, such as contribution 
agreements,  to  improve  the  efficient  delivery  of  aid  to  its  regional  partner 
organisations.  In  2009,  the  Commission  will  continue  the  efficient  and  timely 
implementation of the 9th EDF regional programmes and prepare new activities 
under the 10th EDF. 

With its regional programmes, the Commission supports initiatives in numerous 
fields  such  as  economic  integration,  infrastructure,  environment,  biodiversity 
and energy as well as food security. In West Africa, for example, the EC-funded 
ECOPAS  project  (Ecosystèmes  protégés  en  Afrique  soudano-sahélienne)  helps 
to  finance  the  conservation  and  management  of  Park  West,  a  National  Park, 
covering  more  than  one  million  hectares  spread  over  three  countries  (Niger, 
Benin and Burkina Faso). In addition, the Commission has successfully stepped 
up conservation efforts in Central Africa, which is home to the planet’s second- 
largest tropical forest system after Amazonia. The conservation of these forests 
is crucial to the development of 65 million people, who are heavily dependent on 

EN 

63 

   EN 

 
the  forest’s  resources.  The  ECOFAC  programme  (Ecosystèmes  Forestiers 
d’Afrique  Centrale)  aims  at  development  and  poverty  reduction  through  long-
term  conservation  and  sustainable  management  of  natural  resources  in  seven 
Central  African  countries:  Cameroon,  the  Central  African  Republic,  the 
Democratic  Republic  of  the  Congo  (DRC),  Congo,  Equatorial  Guinea,  Gabon 
and São Tomé e Príncipe. The programme is ongoing since 1992 and has so far 
received financial contributions of more than €100 million.  

In  West  Africa,  the  solar  regional  programme  funded  the  installation  of  solar 
photovoltaic  pump  systems  in  nine  countries  of  the  region,  helping  to  improve 
the  living  conditions  of  almost  six  million  people  by  safeguarding  the 
environment  and  facilitating  access  to  clean  water.  In  eastern  and  southern 
African countries, the Regional Integration Support Programme (€33.5 million) 
is  developing  the  capacity  of  the  Common  Market  for  Eastern  and  Southern 
Africa as well as the East African Community and their Member States in policy 
formulation,  implementation  and  monitoring  of  the  regional  integration  agenda 
in addition to multilateral and regional trade. The programme also contributes to 
economic integration by promoting the adoption of a common external tariff. In 
the  Southern  African  Development  Community,  there  are  several  important 
ongoing  projects  worth  some  €80  million,  providing  support  for  regional 
integration and the multilateral trading system. This was a focal sector under the 
9th  EDF  and  will  continue  to  receive  funding  from  the  10th  EDF  totalling  €92 
million. The EU-SADC Investment Promotion Programme is helping the SADC 
region  to  modernise  and  substantially  invest  in  its  productive  sector,  attracting 
capital to attain the economic growth rates necessary for poverty reduction. The 
programme enhances the capacity of regional investment promotion agencies to 
provide companies with better services and to make the region more attractive to 
both regional and international investors.  

2.2.1.5.  Implementation 

In sub-Saharan Africa, 36 annual action programmes with a total value of nearly 
€3.94 billion were approved in 2008. New EDF funding earmarked for national 
and  regional  cooperation  in  Sub-Saharan  Africa  totalled  €2.31  billion  in 
payments.  

Budget support 

The  Commission  continued  to  implement  ongoing  budget  support  programmes 
under the 9th EDF and moved to establish follow-up programmes under the 10th 
EDF.  Budget  support  programmes  provide  aid  directly  to  ACP  governments. 
They are linked to clear performance criteria and disbursement conditions, and 
directly related to poverty reduction strategies and public finance management, 
thereby providing financial incentives for producing results.  

The Commission approved new budget support operations (sector policy support 
programmes  and  general  budget  support)  in  22  African  countries  worth  €2.4 

EN 

64 

   EN 

 
billion, corresponding to 96% of the new actions approved in the area of budget 
support  under  the  EDF  during  2008.  Several  new  operations  are  large-scale 
budget  support  programmes  in  the  form  of  MDG  Contracts.  In  2008,  the 
Commission  approved  MDG  Contracts  for  seven  African  countries  (Burkina 
Faso,  Ghana,  Mali,  Mozambique,  Rwanda,  Uganda  and  Zambia).  MDG 
Contracts accounted for 63% (or €1.52 billion) of the budget support operations 
in Sub-Saharan Africa.  

As  an  example,  the  EC  has  been  providing  general  budget  support  to  Burkina 
Faso since 1991. In  2002, the Commission started disbursing funds in variable 
tranches  measured  against  performance  in  social  sectors  as  well  as  public 
finance  management.  Commission  disbursement  levels  have  increased  steadily 
to reach an average level of €50 million per year. Overall, budget support now 
represents  35%  of  all  external  financing  provided  to  Burkina  Faso.  With  the 
introduction  of  the  Poverty  Reduction  Strategy  in  the  early  2000s,  budget 
support became more focused on social sector results. There has been progress 
against  key  social  indicators  since  2000.  Because  of  its  good  track-record, 
Burkina Faso has been selected by the Commission as one of the seven African 
countries  to  receive  budget  support  in  the  form  of  an  MDG  Contract.  The 
country  will  be  receiving  €320  million  over  six  years,  provided  it  pursues  its 
efforts towards reaching the MDGs. 

Implementation of previously-approved operations (mostly from the 9th EDF but 
also from the 8th EDF) went on at a steady pace. During 2008, the Commission 
concentrated  funds  on  budget  support  operations  (60%),  government  and  civil 
society (14%) as well as the health sector (9%). In addition, major new financing 
was provided for the African Peace Facility (€300 million) and the Global Fund 
for HIV/AIDS, Tuberculosis and Malaria (€150 million). 

2.2.1.6.  Monitoring  

The figures in this section come from the Results Oriented Monitoring System, 
which  evaluates  the  impact  of  development  projects.  The  methodology  is 
described in detail in Chapter 4. 

From  August  to  December  2008,  138  projects  were  monitored  covering  most 
countries  in  Sub-Saharan  Africa.  This  did  not  include  regional  projects  and 
programmes. Of the operations monitored, 128 were still ongoing, while 10 were 
the object of ex post monitoring. In addition, one EDF-funded agriculture sector 
policy support programme worth €35 million was monitored in Mozambique as 
part  of  an  exercise  to  test  a  new  monitoring  methodology  for  budget  support. 
The  total  budget  of  the  operations  monitored  was  just  under  €1.29  billion  of 
which around €1.17 billion were financed from the EDF. 

Ongoing operations in Africa showed a generally good performance in 2008, in 
particular with regard to project design, effectiveness, impact prospects and their 
the  efficiency  of 
potential  sustainability,  but  showed  weaknesses 

in 

EN 

65 

   EN 

 
implementation.  The  scores  of  projects  subject  to  ex  post  monitoring  revealed 
unsatisfactory results as to their real impact and their sustainability.  

The following graph presents a general overview of the performance of projects 
which were ongoing over the last three years. Category I represents projects with 
very good performance, category II projects with good performance, category III 
projects  performing  with  problems,  while  category  IV  represents  projects  with 
major  performance  difficulties.  The  graph  shows  a  positive  trend  with  the 
number of projects in category II rising significantly in 2008, while the number 
of poorly-performing projects fell. 

Figure 8: Performance of Ongoing Projects

100%

80%

60%

40%

20%

0%

2.2.1.7.  Results 

59%

61%

69%

Category I

Category II

Category III

Category IV

25%

14%

27%

10%

3%

3%

2%

23%

7%

2006

2007

2008

During  2008,  the  Commission  continued  the  process  of  linking  relief, 
rehabilitation  and  development  in  several  countries,  such  as  the  Democratic 
Republic of Congo and Liberia. Greater efforts were made to handle the specific 
problems  of  conflict,  post-conflict  and  other  fragile  situations  where  basic 
security and emergency services for the population must be assured in the short 
term,  while  capacity  is  gradually  built  to  provide  social  services,  security  and 
justice in a sustainable way over the medium and long term. Regular and more 
systematic  contacts  between  the  humanitarian  and  development  services  of  the 
Commission  at  all  levels,  also  involving  Member  States  and  other  donors,  is 
being established.  

The Commission has a confirmed comparative advantage in its capacity to work 
in countries where few other donors are present. In such situations, the key issue 
is  to  prioritise  between  competing  needs  and  to  ensure  that  activities  do  not 
overlap. In the Central African Republic, for example, the Commission manages 
a substantial cooperation programme, playing a leading role in several areas like 

EN 

66 

   EN 

 
 
infrastructure, health, justice and security sector reform. The Commission takes 
every  opportunity  to  encourage  Member  States  to  become  involved  with 
countries  receiving  little  aid  (so-called  aid  orphans),  and  has  agreed  on  co-
financing  procedures  whereby  additional  funds  from  Member  States  can  be 
managed by the Commission on their behalf.  

In  addition,  there  are  many  examples  of  successful  initiatives  where  EC  funds 
have  had  a  positive  impact  on  development.  In  Mauritius,  a  middle  income 
country, EC development aid together with intensive policy dialogue have added 
value  to  government  efforts  to  increase  the  competitiveness  of  the  economy, 
including the complex but so far successful reform of the sugar sector, affected 
by the reform of the EU sugar regime. In São Tomé e Príncipe, a special system 
of road maintenance, based on the participation of civil society, has been put in 
place.  In  all,  32  associations  (GIME  –  interest  groups  for  road  maintenance) 
have been created in rural communities to carry out simple maintenance, such as 
weeding  or  cleaning  of  gutters.  Thanks  to  their  willingness  to  develop  their 
capabilities,  GIMEs  now  carry  out  more  complex  tasks  such  as  bricklaying  or 
repairing bridges. As  a  result,  communities  not  only benefit from a maintained 
road  network  of  1  100  km  but  also  from  1  700  part-time  jobs  (40%  of  those 
employed  are  women)  generated  by  the  project,  reducing  the  number  of  those 
out-of-work or in precarious employment by 8%. Workers' families benefit from 
a salary of around €350 per year on top of their existing income. Moreover, the 
project  has  improved  the  access  of  rural  communities  to  basic  social  services, 
schools  and  health  centres.  New  farmland  could  be  cultivated  and  thanks  to  a 
better  access  to  urban  markets,  agricultural  products  can  now  be  transported 
more easily at lower costs. 

2.2.1.8.  Prospects  

A  particular  priority  for  2009  will  be  to  launch  the  implementation  of  the  10th 
EDF  regional  programmes,  signed  in  November  2008,  and  the  Intra-ACP 
programme.  The  rate  of  mobilising  EDF  resources  is  set  to  increase.  The 
Commission  is  putting  more  emphasis  on  budget  support  operations  to  deliver 
aid  to  ACP  countries  in  order  to  reinforce  local  ownership  and  align  aid  with 
national priorities and procedures as specified in international aid effectiveness 
commitments.  This  is  shown  by  the  rising  share  of  budget  support  operations 
under  the  10th  EDF,  which  is  likely  to  reach  almost  50%  of  commitments,  as 
well  as  the  introduction  of  MDG  Contracts,  which  will  further  increase  long-
term commitment and predictability of funds. The Commission continues to play 
a central role in the international community in terms of monitoring, evaluating 
and  promoting  a  results-oriented  culture  for  budget  support  operations.  At  the 
same time, the budget support methodology is continuously refined to meet new 
challenges even in the poorest countries with fragility issues like Togo and the 
Central  African  Republic.  In  October  2007,  the  Commission  agreed  on 
guidelines to improve the speed and flexibility of its implementing procedures in 
fragile situations. In this context, the Commission has also made its operations 

EN 

67 

   EN 

 
more  effective  by  responding  to  needs  with  a  range  of  instruments,  including 
budget support. Under the 10th EDF, five budget support programmes in fragile 
situations  (Central  African  Republic,  Guinea-Bissau,  Burundi,  Haiti  and  Sierra 
Leone)  have  been  agreed  so  far.  In  the  case  of  the  Central  African  Republic, 
budget  support  has  contributed  to  post-conflict  stabilisation,  by  enabling  the 
government  to  honour  its  budget  commitments  and  providing  leverage  and 
expertise to improve public financial management. 

2.2.1.9.  Success stories 

In Rwanda, Urunana project ("Hand in Hand") produces a radio soap opera that 
promotes  health  education.  The  stories  aired  build  on  real  health  concerns  of 
Rwanda's rural population and combine entertainment with educational aspects, 
focusing on sexual and reproductive health, including HIV/AIDS. An estimated 
10 million people listen regularly to Urunana since the programme went on air. 
Urunana is the only health-focused radio programme in the African Great Lakes 
Region.  Impact  assessments  conducted  by  the  local  implementing  partner, 
Urunana  Development  Communications  and  independent  consultants,  have 
shown that the project has stimulated discussion on sensitive health issues within 
Rwandan  families,  which  now  appear  to  be  having  a  positive  impact  on 
behaviour  and  health.  The  European  Commission  is  funding  the  project  for  a 
period of four years with a total contribution of €750 000. 

In  the  Democratic  Republic  of  the  Congo,  the  PAUK  project  (Projet 
d’Assainissement  Urbain  à  Kinshasa)  is  implementing  an  urban  drainage  and 
rubbish collection in Kinshasa one of the biggest city in Africa. The city's basic 
urban infrastructure is rundown and inadequate. The project seeks to contribute 
to  the  reduction  of  urban  poverty  by  improving  the  living  conditions  of  the 
population. The programme focuses on the management of waste and rain water 
and  on  the  setting-up  and  management  of  a  labour-intensive  solid  waste 
treatment  system.  The  programme  is  reinforcing  the  capacity  of  the  main 
institutions,  both  national  and  municipal,  involved  in  Kinshasa's  urban 
development. As a result, illegally-dumped rubbish is cleared each day, 800 m3 
of  solid  waste  is  cleaned  per  day,  29  km  of  storm  drains  have  been  tidied  and 
900  metres  rehabilitated.  Moreover,  800  jobs  were  created  for  the  solid  waste 
management and 1 200 jobs for the storm drain management. 

In  Uganda  and  Ghana,  Microinsurance  Agency  (MIA)  offices  have  been 
established. The MIA works with microfinance institutions to develop insurance 
products that respond to the needs of poor people. Microinsurance, such as life, 
health  and  crop  insurance,  helps  to  mitigate  risks,  and  thus  reduce  the 
vulnerability  of  the  poor.  The  MIA  caused  a  fundamental  shift  in  insurance 
coverage in Uganda. It helped to develop an insurance product that covers death 
from  any  cause,  including  HIV/AIDS,  forcing  competitors  to  do  the  same, 
thereby expanding the options for poor people in the country. In Africa, MIA has 
already sold more than 80 000 insurance policies benefiting low income clients 

EN 

68 

   EN 

 
of  Microfinance  Institutions  in  Uganda  and  Ghana  and  in  the  future  in  several 
other African countries. 

2.2.2.  Caribbean (including OCTs) 

2.2.2.1.  Introduction 

The EU strategy for the Caribbean is built around a vision of the future founded 
upon a history of shared values, in parallel with maximising the opportunities of 
the  Cotonou  Agreement55.  The  strategy  seeks  to  create  an  enhanced  EU-
Caribbean partnership capable of meeting a set of interrelated challenges:  

•  tackling economic and environmental opportunities and vulnerabilities; 
•  promoting social cohesion and combating poverty including the fight against 

HIV/AIDS;  

•  strengthening health care systems;  
•  fighting against illicit drugs and tax fraud.  

As  provided  for  in  the  Cotonou  Agreement,  the  traditional  trade  system  was 
replaced  by  a  wider  Economic  Partnership  Agreement  signed  on  15  October 
2008 by the European Union and the countries of the region, with the exception 
of  Haiti.  Haiti  is  still  studying  the  potential  impact  of  certain  aspects  of  the 
agreement  and  may  sign  at  a  later  stage.  The  EPA  not  only  defines  the  trade 
relations between the EU and the Caribbean but also aims at promoting regional 
integration and economic development. The 10th EDF regional programme will 
support  the  regional  integration  process  and  as  such  is  complementary  to  the 
EPA. This is also the case for the 10th EDF country strategies, signed at the end 
of  2008,  which  address  both  private  and  public  actors.  Major  sectors  covered 
include  governance  and  competitiveness,  infrastructure  and  interconnectivity, 
macroeconomic  budgetary  support  and  poverty  reduction.  Other  sectors 
explicitly  include  capacity-building  related  to  the  regional  programme  for 
additional  trade-related  assistance  accompanying  the  EPA,  as  well  as  good 
governance in the tax area. After committing all the funds from the 9th EDF by 
the  end  of  2007,  together  will  all  remaining  balances  from  earlier  EDFs,  all 
programmes were signed and ready for implementation in 2008. 

For  the  Overseas  Countries  and  Territories,  the  programming  exercise  for  the 
10th  EDF  was  launched  in  2008  and  should  be  largely  completed  in  2009.  In 
addition, an in-depth discussion on the future of OCT-EU relations was launched 
by  means  of  a  Green  Paper56  published  in  2008.  By  October  2008,  comments 
were received from all stakeholders and a discussion took place during the OCT 
Forum.  The  Commission  will  continue  its  consultations  in  order  to  publish  a 

55 
56 

COM(2006) 86 final of 15.02.2008 
Green  Paper  on  future  relations  between  the  EU  and  the  Overseas  Countries  and  Territories, 
COM(2008)383 of 25.06.2008 

EN 

69 

   EN 

 
                                                 
Communication to the Council proposing a revision of OCT-EU relations from 
2013 onwards. 

2.2.2.2.  Aid effectiveness and donor coordination 

In  the  Caribbean,  the  Commission  continued  its  efforts  towards  further 
strengthening donor coordination with the few bilateral and multilateral donors 
present  in  the  region.  Information-sharing  is  generally  well  structured  and 
progress  has  been  made  with  regard  to  joint-programming  and  division  of 
labour. In most countries, close cooperation takes place particularly in the area 
of  public  finance  management.  In  Haiti,  the  10th  EDF  Country  Strategy  Paper 
was prepared jointly with France, Spain and Germany.  

Numerous  examples  of  donor  cooperation  are  available,  including  from  Haiti 
where  the  possibility  of  transferring  funds  from  France  to  the  European 
Commission  for  a  road-infrastructure  programme  was  discussed.  In  Barbados, 
the Commission works closely with the World Bank, the International Monetary 
Fund, the UK Department for International Development (DfID), the Caribbean 
Technical  Assistance  Centre,  the  Canadian  International  Development  Agency 
(CIDA)  and  the  Caribbean  Development  Bank  (CDB),  particularly  on  budget 
support.  There  is  also  close  cooperation  with  the  World  Bank  and  the  United 
Nations  Development  Programme  on  sub-regional  social  protection  reform. 
DfID  has  been  actively  engaged  in  sugar  reform  and  planning  the  adaptation 
strategy.  The  European  Commission  has  been  consulted  on 
the  new 
programming  strategy  of  the  World  Bank,  the  Inter-American  Development 
Bank, the CDB and UNDP. Donor coordination on trade issues is effective while 
there  are  periodic  contacts  on  drugs  and  crime  issues.  In  Jamaica,  regular 
interaction  takes  place  at  sectoral  level.  For  the  preparation  of  the  general  and 
sector  budget  support  programmes  under  the  10th  EDF,  the  Commission 
participated  in  extensive  discussions  with  a  wide  range  of  government  offices 
and  donor  agencies  present  in  Jamaica.  Donor  meetings  are  held  regularly, 
especially in the areas of security and justice. The Commission also took part in 
a number of working groups for the development of the so-called Vision 2030, 
the long-term development strategy of the Government of Jamaica. In Suriname, 
different  infrastructure  projects  are  being  completed  under  the  8th  and  9th  EDF 
together with the Netherlands.  

2.2.2.3.  Working towards the MDGs 

Most  Caribbean  countries  now  benefit  from  general  or  sector  budget  support, 
with  the  latter  particularly  evident  in  health  and  education.  To  help  the 
Dominican  Republic  achieve  the  MDGs,  in  particular  the  goal  of  universal 
primary education, €52 million was allocated to its education sector under the 9th 
EDF. In Haiti, one of the most fragile and poorest countries in the region after a 
long period of political and economic turmoil, education is essential for poverty 
reduction  and  socio-economic  development.  A  programme  of  €14  million  to 

EN 

70 

   EN 

 
support  the  quality  of  education  under  the  9th  EDF  is  ongoing.  Under  the  10th 
EDF, the social sectors in Haiti will receive general budget support. Malnutrition 
in  Haiti  is  addressed  through  food  security  programmes  financed  from  the 
humanitarian  aid  budget,  the  food  security  thematic  programme  and  the  Food 
Facility.  The  funds  allocated  to  the  Dominican  Republic  under  the  10th  EDF 
include  €61  million  for  human  and  social  development.  This  allocation 
represents 35% of the total funds available and will be provided through general 
budget  support  in  order  to  cover  long-term  human  and  social  development 
activities. In addition, the EC is also supporting several projects and programmes 
to  combat  HIV/AIDS,  which  is  a  major  concern  in  the  Caribbean,  where 
infection levels are the second highest worldwide. The Commission is the largest 
individual donor assisting the Caribbean ACP countries and OCTs. In 2007, the 
it approved a €6 million grant from the 9th EDF to support the Dutch and British 
OCTs in their efforts to reduce the spread of the disease. The programme, whose 
implementation through the Pan American Health Organisation (PAHO) started 
in  2008,  targets  11  beneficiary  territories.  It  complements  the  Regional 
HIV/AIDS  Programme  of  the  Caribbean  Forum  of  ACP  states  (Cariforum), 
which is also funded by the EDF and implemented through PAHO. 

2.2.2.4.  Regional cooperation and integration 

A full Economic Partnership Agreement (EPA) covering services, trade in goods 
and  development  support,  was  signed  in  October  2008  by  the  EU  and  the 
countries  of  the  region,  with  the  exception  of  Haiti.  The  EPA  not  only  defines 
the trade relations between the EU and the Caribbean but will also support the 
ongoing  regional  integration  process  to  maximise  its  benefits.  The  10th  EDF 
regional  programme  provides  support  for  the  integration  process.  Particular 
attention  will  be  paid  to  implementing  those  regional  integration  activities 
required  to  achieve  maximum  benefits  from  the  EPA  and  to  mitigate  eventual 
adverse  effects  of  the  adjustment  process.  Some  21  sector  studies  covering  all 
areas  of  the  agreement  have  been  completed  or  are  under  way  with  a  view  to 
translating  the  cooperation  provisions  of  the  EPA  into  concrete  action.  These 
programmes  are  intended  to  specify  all  necessary  actions  the  region  has  to 
undertake  at  national  and  regional  level  in  order  to  meet  the  commitments 
defined by the EPA. The regional authorities have agreed with the Commission 
to develop a roadmap complementing the regional programme and the findings 
of the studies. The roadmap will identify key priorities for action, selecting the 
most  appropriate  institutions  for  their  implementation  and  mapping  possible 
donor contributions and interventions. 

2.2.2.5.  Implementation 

The 9th EDF was fully committed at the end of 2007. An amount of €207 million 
had been contracted up to the end of 2008. During 2008, some €126 million was 
committed  from  the  10th  EDF.  In  the  Caribbean,  general  budget  support  and 
sector  policy  support  programmes  accounted  for  45%  of  the  new  programmes 

EN 

71 

   EN 

 
approved in 2008. Thirteen percent of commitments were devoted to economic 
and  development  planning.  New  funds  under  the  EDF  in  the  Caribbean  region 
totalled just over €1 billion in commitments and €791 million in payments over 
the  period  2002-2008.  From  the  EC  budget,  the  Caribbean  received  significant 
support  under  the  Special  Framework  of  Assistance  for  Traditional  ACP 
Suppliers of Bananas: €18 million in commitments and €35 million in payments. 
Six  Caribbean  countries  are  also  part  of  the  EC-ACP  Sugar  Protocol  and 
benefited  from  accompanying  measures  to  support  the  adaptation  of  the  sugar 
sector  following  the  reform  of  the  EU  sugar  regime.  In  2008,  these  countries 
received €90 million in commitments and €33 million in payments (see Section 
2.3.6. for more details). 

2.2.2.6.  Monitoring 

The figures in this section come from the Results Oriented Monitoring System 
which  evaluates  the  impact  of  development  projects.  The  methodology  is 
described in detail in Chapter 4. 

During  2008,  33  projects  were  monitored  in  several  Caribbean  countries, 
including  Aruba  and  the  Dutch  Antilles  with  a  total  value  of  €320  million,  of 
which  €301  million  came  from  the  EDF.  Of  the  operations  monitored  29  still 
had ongoing activities. Four were subject to ex post monitoring.  

According  to  the  monitoring  exercise,  the ongoing operations in the Caribbean 
region  performed  well  as  concerns  project  design,  effectiveness,  impact  and 
potential sustainability. However, the scores for ongoing operations revealed that 
projects do less well in terms of efficiency, even though progress has been made 
over the last two years. Projects subject to ex post monitoring showed very good 
results as regards sustainability, while scores on project impact were mixed.  

The  following  graph  presents  an  overview  of  the  performance  of  projects  with 
ongoing  activities  over  the  last  three  years.  As  in  the  previous  graph  of  this 
report,  scores  are  ranked  in  four  categories  (I  –  IV,  corresponding  broadly  to 
'very good', 'good', 'problematic' and 'in serious difficulties') The graph shows a 
positive  trend  in  the  results  of  the  external  monitoring  exercise,  with  the  sharp 
rise  in  the  number  of  projects  in  category  II  in  2008  being  particularly 
noteworthy. 

EN 

72 

   EN 

 
Figure 9: Performance of Ongoing Projects

50%

50%

38%

27%

18%

66%

28%

Category I

Category II

Category III

Category IV

5%

4%

8%

3%

3%

2006

2007

2008

100%

80%

60%

40%

20%

0%

2.2.2.7.  Results  

The programme for the Economic Development of the Northern Corridor of the 
Island  of  Hispaniola,  which  included  the  rehabilitation  of  the  road  from  Cap 
Haïtien towards the Dominican border, boosted the dialogue between Haiti and 
the  Dominican  Republic  on  bilateral  cooperation.  As  a  result,  the  National 
Authorising Officers of both countries signed the Santo Domingo Declaration in 
December 2008, confirming their countries' commitment to closer cooperation in 
several  areas  of  common  interest,  such  as  the  environment,  transnational 
economic development and infrastructure. 

In Guyana, the Linden Economic Advancement Programme (LEAP), to promote 
the economic development of the town of Linden, has produced positive results, 
creating  solid  benefits  for  Linden  and  its  Administrative  Region.  LEAP  was 
launched  in  2002,  investing  €12  million  in  the  expansion  of  the  region’s 
economic base over a seven-year period. This had become necessary following 
the  continued  decline  of  the  bauxite  industry  and  the  consequent  economic 
dislocation  the  region  was  facing.  The  project  seeks  to  diversify  the  local 
economy  away  from  the  traditional  dependency  on  bauxite.  The  conclusion  of 
the  project  and  the  planning  of  the  hand-over  to  local  counterparts  is  ongoing 
and will probably be finalised in the course of 2009-2010. 

In  Grenada,  a  contribution  of  €10  million  from  the  9th  EDF  to  the  school 
rehabilitation project has greatly supported the recovery of the education system 
after the devastation caused by Hurricane Ivan in 2004.  

In response to soaring food prices in Haiti, the Programme de réponse à la vie 
chère included among its activities, an important component of labour-intensive 

EN 

73 

   EN 

 
 
successful 
road  maintenance  and  electricity  grid 
implementation of this component allowed hundreds of jobless Haitians to earn 
their living and to cope with the impact of rising food prices. 

rehabilitation.  The 

2.2.2.8.  Prospects  

Over  the  past  few  years,  cooperation  with  the  Caribbean  countries  has  shifted 
from  being  project-oriented  towards  general  and  sector  budget  support,  both 
under  the  EDF  and  the  accompanying  measures  for  Sugar  Protocol  countries. 
Within  this  framework,  increasing  attention  is  being  paid  to  public  finance 
management  and  policy  dialogue.  Haiti  will  continue  to  be  treated  under  the 
initiative for countries in a situation of fragility. Regarding regional cooperation, 
the  implementation  of  the  10th  EDF  Regional  Indicative  Programme  will  focus 
on  the  development  chapters  of  the  EPA.  In  2009,  a  regional  environmental 
profile will be drawn up which will identify and assess environmental issues to 
be considered as part of the mid-term review of the Caribbean country strategy 
papers as well as the regional strategy paper. 

2.2.2.9.  Success stories 

The  Commission  provided  a  total  of  €12.5  million  via  the  World  Bank  to  the 
Caribbean  Catastrophe  Risk  Insurance  Fund  (CCRIF)  to  strengthen  its  core 
capital  and  provide  better  insurance  coverage  for  its  members.  Some  17 
countries  and  territories  have  signed  up  to  the  CCRIF  and  pay  the  premiums 
required.  During  the  2008  hurricane  season,  with  its  16  tropical  storms  and 
hurricanes in the Caribbean, the CCRIF intervened rapidly in the Bahamas, Haiti 
and the Turks and Caicos Islands, providing governments with funds to make the 
most urgent repairs to damaged infrastructures. 

In Trinidad and Tobago, the 8th EDF poverty reduction programme comprising 
several  micro-projects  at  community  level  came  to  an  end  in  June  2008.  More 
than  600  micro-projects  received  funding  for  a  total  value  of  €2  million.  The 
programme  succeeded  in  creating  structures  for  decentralised  social  services 
delivery in Trinidad and Tobago. 

2.2.3.  Pacific (incl OCTs) 

2.2.3.1.  Introduction 

The year 2008 was a significant one for relations between the European Union 
and the Pacific.  

In  2007,  the  EU  and  the  Pacific  Island  Forum  (PIF)  agreed  to  strengthen  the 
regional political dialogue. In September 2008, the first-ever EU-PIF Ministerial 
Troika  was  held  in  Brussels.  The  agenda  included  regional  security  and 
governance, with a focus on Fiji where the political situation remains a source of 
concern  following  the  military  coup  of  December  2006.  Other  items  covered 

EN 

74 

   EN 

 
trade, development cooperation, climate change and fisheries. The Troika issued 
a  joint  communiqué  highlighting  common  views  and  areas  for  further 
cooperation. 

In November 2008, the EU and the Forum also agreed a declaration on climate 
change that sets a joint framework for policy and action on adaptation to climate 
change.  Pacific  island  countries  are  particularly  vulnerable  to  the  impact  of 
global  warming  and  sea-level  rise.  For  its  part,  the  EU  takes  the  lead  in  the 
international  debate  on  a  post-Kyoto  agreement.  Both  sides  have  a  shared 
interest in a positive outcome of the process.  

Pacific  island  countries  are  working  towards  a  common  position  on  climate 
change and where to focus adaptation efforts. Some of the low atolls are already 
considering  people  relocation  strategies.  The  Niue  Declaration,  adopted  by 
Forum leaders in August, and the EU-PIF joint declaration of November outline 
the building blocks for a common policy framework and coordinated action. 

Also  in  November,  the  Commissioner  for  Development  Louis  Michel  and  the 
Secretary-General of the Pacific Island Forum, Neroni Tuiloma Slade, signed the 
Regional  Strategy  Paper  (RSP)  and  Regional  Indicative  Programme  (RIP)  for 
the  Pacific.  The  regional  component  of  the  10th  European  Development  Fund 
amounts  to  €95  million.  The  threefold  increase  compared  with  the  previous 
period is consistent with the enhanced relationship between EU and PIF and the 
priorities identified in the 2006 EU Strategy for a strengthened partnership with 
the  Pacific,  which  in  turn  was  a  response  to  the  Pacific's  own  development 
strategy,  the  Pacific  Plan.  The  RSP  and  RIP  focus  on  regional  economic 
integration,  including  support  for  EPA-related  needs,  and  the  sustainable 
management  of  natural  resources  and  the  environment,  which  is  the  great  but 
vulnerable asset of the Pacific region and its people. 

In June, a high-level Troika mission visited Fiji under the Article 96 procedure57 
of 
the  Cotonou  Partnership  Agreement.  Following  meetings  with  all 
stakeholders,  the  Troika  concluded  that  a  genuine  and  inclusive  political 
dialogue was both necessary and possible.  

Political  cooperation  at  regional  level  intensified  in  2008,  with  the  Forum 
leaders  taking  the  unprecedented  decision,  at  their  annual  summit  in  August 
2008, of threatening Fiji with suspension if it failed to hold elections by the end 
of March 2009. 

In  November,  Commissioner  Michel  visited  Timor-Leste  where  he  signed  an 
addendum to the country strategy paper for the incentive tranche in recognition 
of  Timor-Leste's  Governance  Action  Plan.  He  also  met  political  leaders  and 

57 

Article  96  on  consultation  procedure  and  appropriate  measures  as  regards  human  rights, 
democratic principles and the rule of law 

EN 

75 

   EN 

 
                                                 
announced  new  conflict/crisis  management  measures  under  the  Instrument  for 
Stability  

Negotiations  for  a  comprehensive  Economic  Partnership  Agreement  continued 
in 2008 but could not be finalised by year-end. 

2.2.3.2.  Aid effectiveness and donor coordination 

During  2008,  efforts  continued  to  implement  the  principles  of  the  Paris 
Declaration on Aid Effectiveness, both at regional and national level. In April, a 
regional  workshop  was  organised  by  the  UNDP,  the  Asian  Development  Bank 
and  the  Pacific  Islands  Forum  Secretariat  to  review  progress  on  implementing 
the  principles  of  aid  effectiveness  in  the  Pacific  region  and  to  prepare  for  the 
Accra High-Level Forum. At country level, Papua New Guinea adapted the Paris 
Declaration  to  its  local  context  by  signing  a  joint  statement  of  principles  and 
actions with development partners in February 2008.  

Given  the  limited  presence  of  EU  Member  States  in  the  Pacific  region, 
coordination 
international 
takes  place  with  other  donor  countries  and 
organisations.  Bi-annual  bilateral  and  trilateral  meetings  are  held  regularly 
between  Australia,  New  Zealand  and  the  European  Commission.  Cooperation 
with Australia will be further reinforced following the signature of the new EU-
Australia Partnership Framework in October 2008, which includes an action plan 
for enhancing cooperation and coordination in the Pacific region. 

Regional  coordination  at  sector  level  was  pursued  in  the  area  of  energy  and 
climate change. Moreover, various instances of effective coordination at project 
level  exist.  In  Samoa,  for  example,  the  government  has  set  up  a  joint  water 
sector steering committee, in which all key stakeholders participate. 

2.2.3.3.  Working towards the MDGs 

The latest statistics indicate that poverty is increasing in the Pacific region and 
that progress towards achieving the MDGs in 2015 is mixed. While reliable data 
are  rare,  it  is  estimated  that  roughly  30%  of  the  total  population  are  living  in 
extreme poverty on less than one dollar a day. Therefore, intensified efforts are 
needed to accelerate progress towards attaining the MDGs.  

Access  to  clean  water  and  sanitation  is  key  to  reducing  child  mortality  in  the 
Pacific region. Even though child mortality has fallen across the region, the lack 
of clean water remains the largest single cause of death among young children. It 
is estimated that up to 18 000 children die each year. By financing programmes 
that  improve  access  to  adequate  water  sources  and  sanitation  services,  the  EC 
not  only  contributes  to  reducing  child  mortality  but  also  helps  to  increase  the 
proportion  of  people  with  access  to  safe  drinking  water  and  basic  sanitation 
(MDG 4 and 7). 

EN 

76 

   EN 

 
Up  to  the  end  of  2008,  the  EC  had  supported  water  supply  and  sanitation 
initiatives with a total value of more than €80 million. This allocation includes 
both  bilateral  cooperation  activities  (approximately  €73  million  earmarked  for 
Samoa, Tuvalu, Nauru, Marshall Islands, Tonga, Papua New Guinea and French 
Polynesia)  as  well  as  projects  financed  under  the  EU  Water  Facility  (€4.5 
million under regional and specific programmes for Timor-Leste and Papua New 
Guinea). 

In  Papua  New  Guinea,  the  first  phase  of  a  rural  water  supply  and  sanitation 
programme  ended  in  August  2008.  The  programme  aims  to  provide  improved 
and  sustainable  water  supplies  and  sanitation  facilities  to  rural  communities. 
This  first  phase  (€8  million)  benefited  76  700  people  in  134  villages  by 
constructing 2 207 latrines, supplying 455 water tanks, implementing 57 gravity-
flow schemes and installing 27 shallow wells with hand pumps. The programme 
uses  a  community-development  approach  in  order  to  promote  local  ownership 
and  responsibility  for  the  maintenance  of  the  water  supply  and  sanitation 
schemes.  This  programme  is  followed  by  a  second  phase  (€17  million)  which 
will run to the end of 2011. 

2.2.3.4.  Regional cooperation and integration  

Given the region's vulnerability to the impact of global warming, climate change 
is  the  focus  of  regional  cooperation  efforts.  The  Niue  Declaration,  adopted  by 
the  Pacific  Island  Forum  in  August,  and  the  EU-PIF  Joint  Declaration  in 
November  outline  the  building  blocks  for  a  common  policy  framework  and 
coordinated  action.  Under  the  9th  EDF,  the  Commission  continued  support  to 
eight  Pacific  ACP  countries  which  are  participating  in  a  multi-country 
programme on disaster preparedness, to prepare against natural disasters such as 
cyclones.  

The  two  major  Pacific  ACP  countries  currently  exporting  goods  to  the  EU  – 
Papua  New  Guinea  and  Fiji  –  initialled  an  interim  Economic  Partnership 
Agreement  with  the  EC  in  November  2007.  In  parallel  however,  the  EC 
continues to negotiate with all 14 Pacific ACPs on a comprehensive EPA. This 
is  expected  to  cover  the  same  areas  as  the  interim  EPA  with  the  addition  of 
development  cooperation  provisions,  a 
social  and 
environmental issues and competition. Contentious issues concern the inclusion 
of  trade  in  services  and  trade-related  areas  like  intellectual  property  rights  and 
government procurement.  

fisheries  chapter, 

2.2.3.5.  Implementation 

In 2008, efforts focused on the preparation of new programmes funded under the 
10th  EDF,  which  entered  into  force  in  July.  By  the  end  of  the  year,  11  Annual 
Action  Programmes  were  approved,  amounting  to  more  than  €20  million. 
Cooperation  under  these  new  programmes  will  mainly  focus  on  capacity-
building activities.  

EN 

77 

   EN 

 
The  Commission  also  approved  two  new  operations  benefiting  New  Caledonia 
and  French  Polynesia,  using  the  additional  resources  which  became  available 
after  the  9th  EDF  mid-term  review  for  OCTs.  New  Caledonia  received  €8.7 
million  of  sector  budget  support  for  vocational  training.  French  Polynesia 
received  €8.9  million  to  support  water  supply  and  sanitation  in  Moorea  and 
Punaauia. 

EDF financing for ongoing operations in the Pacific region in 2008 totalled €66 
million in terms of the amount contracted and €59 million in payments. Funding 
operations  are  project-based  except  in  Vanuatu  and  New  Caledonia  where 
budget support is provided.  

As the energy sector is a priority for the Pacific region, the EC is supporting a 
multi-country  programme  on  renewable  energies  in  Micronesia,  Nauru,  Niue, 
Palau  and  the  Marshall  Islands.  The  programme  supports  the  installation  or 
distribution  of  renewable  energy  systems  and  energy-efficiency  equipment.  In 
parallel,  local  authorities  receive  assistance  to  draw  up  energy  policies  and 
renewable  and  energy-efficiency  strategies.  In  addition,  the  energy  sector  in 
Vanuatu  received  considerable  support  through  the  9th  EDF  energy  facility.  In 
2008, four new projects were launched for a total amount of €3 million. Three of 
them focus on the provision of electricity to remote areas of the country through 
the  use  of  generators  running  on  100%  copra  oil.  The  fourth  project  aims  to 
produce energy through a wind mill in the southern part of Vanuatu. 

2.2.3.6.  Monitoring 

The figures in this section come from the Results Oriented Monitoring System 
(ROM),  which  evaluates  the  impact  of  projects  on  development.  The 
methodology is described in a comprehensive way in Chapter 4. 

From July to December 2008, independent monitoring assessed 33 projects and 
programmes in several Pacific countries and OCTs. They included operations at 
national  and  regional  level  and  resulted  in  the  production  of  40  monitoring 
reports.  Of  the  operations  covered,  32  still  had  ongoing  activities,  seven  were 
subject  to  ex  post  monitoring.  One  EDF-funded  water  sector  policy  support 
programme  with  a  budget  of €19 million in Samoa was monitored as part of a 
test  for  a  new  monitoring  methodology  for  sectoral  budget  support.  The  total 
budget  of  the  operations  monitored  was  €141  million  of  which  €109  million 
were EDF-funded.  

Monitoring  results  of  the  ongoing  operations  showed  that  the  Pacific  region 
performed well in 2008 in terms of project design, efficiency, impact prospects 
and  potential  sustainability  (78%).  However,  slight  weaknesses  were  revealed 
with  regard  to  the  effectiveness  of  the  ongoing  projects.  On  the  other  hand, 
projects subject to ex post monitoring showed good results as to their real impact 
and sustainability. 

EN 

78 

   EN 

 
The  following  graph  presents  an  overview  of  the  performance  of  projects  with 
ongoing  activities  over  the  last  three  years.  As  in  previous  graphs  in  this 
document, scores are marked on a scale of I to IV (where I is highest). The graph 
shows a positive trend in the results of the external monitoring exercise, with the 
number of projects in category II rising strongly in 2008. 

Figure 10: Performance of ongoing projects 

Performance of Ongoing Projects

100%

80%

60%

40%

20%

0%

2.2.3.7.  Results 

56%

33%

50%

70%

Category I

Category II

Category III

Category IV

28%

18%

24%

2%

9%

5%

3%

3%

2006

2007

2008

the  capacity  of 

In  Samoa,  the  Commission  is  supporting  the  development  of  an  integrated 
approach  to  water  resource  and  supply  management.  This  includes  efforts  to 
long-term 
strengthen 
sustainability  and  the  development  of  a  government  policy  on  sanitation.  The 
programme  contributes  to  giving  30  000  people  in  the  country  access  to  safe 
water and has paved the way for the Samoan  authorities  to draw  up an overall 
policy in the sector, which is now the basis for preparing a sector budget support 
procedure under the 10th EDF. 

the  Samoa  Water  Authority  for 

2.2.3.8.  Prospects  

With  the  exception  of  Fiji,  the  10th  EDF  programming  for  the  Pacific  ACP 
countries was concluded in 2008. As a result, €443 million have been earmarked 
for the Pacific for the period 2008-2013 at both national and regional level. The 
finalisation  of  the  country  strategy  paper  for  Fiji,  however,  depends  on  the 
positive  evolution  of  the  political  situation  there.  This  is  also  affecting  the 
commitment of funds for Fiji from the EU budget to help ACP Sugar Protocol 
countries  adapt  to  the  reform  of  the  EU  sugar  regime  (€60  million  for  2008-
2010) that are currently on hold.  

EN 

79 

   EN 

 
 
Work on new programmes to be funded under the 10th EDF has already started 
and  will  continue  during  2009, 
the  smooth 
implementation of all ongoing operations.  

together  with  ensuring 

In  line  with  the  commitments  on  aid  effectiveness,  it  is  intended  to  move 
towards a greater use of budget support in the Pacific region, which is currently 
used  only  in  Vanuatu  and  New  Caledonia.  Discussions  with  Samoa  for  budget 
support  in  the  water  sector  are  ongoing.  In  order  to  assess  public  financial 
management  systems,  the  EC  has  been  involved  in  supporting  multi-donor 
public expenditure and financial accountability reviews. This will be continued 
in 2009.  

With regard to the four Pacific OCTs, New Caledonia, French Polynesia, Wallis 
&  Futuna  and  Pitcairn,  €58.5  million  has  been  earmarked  for  the  period  2008-
2013.  The  preparation  of  the  strategy  documents  is  ongoing.  Following  the 
positive  eligibility  assessments  carried  out  in  2008,  all  countries  are  likely  to 
receive aid through budget support, building on the positive experience in New 
Caledonia,  where  the  Commission  has  supported  vocational  training  through 
sector budget support. 

2.2.3.9.  Success stories 

In  the  Solomon  Islands,  where  more  than  80%  of  the  population  lives  in  rural 
areas,  the  micro  projects  programme  provides  rural  communities  with  greater 
access  to  improved  social  services  and  sources  of  income.  In  2008,  over  120 
projects  were  completed,  including  social  infrastructure  projects,  such  as  the 
rehabilitation of village schools and clinics and the installation of more than 104 
water  and  sanitation  systems  in  addition to  60  income-generation  or  livelihood 
projects.  For  example,  on  Kolombangara  Island,  virgin  coconut  oil  is  being 
extracted  by  a  women’s  group,  using  equipment  purchased  under  a  micro 
projects  grant.  The  entire  production  is  being  sold  to  a  nearby  rural  training 
centre  where  it  is  used  as  biofuel  for  tractors.  The  programme,  which  was 
allocated  €5.7  million,  started  in  2005  and  was  completed  in  2008.  Due  to  its 
success, the EC has agreed to continue supporting micro-project activities up to 
a value of €7.4 million in 2009. 

EN 

80 

   EN 

 
Figure 11 EDF - Breakdown by sector of external aid financed on the European Development Fund 
(EDF) managed by EuropeAid in 2008

Commitments ( € million )

301 M€, 7%

706 M€, 16%

2 179 M€, 48%

1 147 M€, 25%

Social infrastructures: education, health,
water, government and civil society,
other 

Economic infrastructures and services:
transport, communications, energy, other
services

Production: agriculture, forestry and
fishing, industry, mining and
construction, trade and tourism

Multisector/crosscutting: environment,
other

Budget support, food aid, food security

90 M€, 2%

101 M€, 2%

Others - including emergency
assistance, reconstruction relief

Payments ( € million )

389 M€, 12%

477 M€, 15%

911 M€, 29%

186 M€, 6%

293 M€, 9%

931 M€, 29%

Social infrastructures: education, health,
water, government and civil society,
other 
Economic infrastructures and services:
transport, communications, energy, other
services
Production: agriculture, forestry and
fishing, industry, mining and
construction, trade and tourism
Multisector/crosscutting: environment,
other

Budget support, food aid, food security

Others - including emergency
assistance, reconstruction relief

Bilateral and Multilateral ODA. Excl non-ODA resources (Peace facility,…).

EN 

81 

   EN 

 
 
Figur e 12 EDF - Br eakdown by sector of  exter nal aid financed  on t he E uropean 
De ve lopment  Fund  (EDF) managed by E uropeAid in 2008

Africa

Caribbean

Pacific

O ve rse as Coun tries & T erritories

ACP Unallocated

Total

Commitments (€ 
million)

Paymen ts (€ 
million )

3 939 

126 

12 

-

448 

4 525 

2 504 

244 

64 

11 

364 

3 189 

B ilateral a nd M ultilatera l ODA. Excl non-ODA resource s (Pe ace facility,…).

EN 

82 

   EN 

 
              
              
                 
                 
                   
                   
 
                  
                   
                 
                 
              
              
 
Figure 13 EDF - General and sector budget support per country

Commitments 2008 (€ million)

Country

Benin

GBS / 
SBS
GBS General budget support

Sector

Burkina Faso GBS General budget support

Burundi

GBS General budget support

Cap Vert

GBS General budget support

Ghana

GBS General budget support

Decription

General SCRP budget support 
MDG ABCRP contract 2009-2014 (budget support 
for growth and poverty reduction)
Budget support programme for economic 
recovery
Budget support for the growth and poverty 
reduction strategy
MDG contract

Guinea-Bissua GBS General budget support

Budget support to stabilisation 2009/11

Haiti

GBS General budget support

Jamaica

GBS Action relating to debt

Lesotho

GBS General budget support

Madagascar GBS General budget support

Malawi

Mali

GBS General budget support

GBS General budget support

Mozambique GBS General budget support

Niger

RCA
Rwanda
Senegal

GBS General budget support

GBS General budget support
GBS General budget support
GBS General budget support

Sierra Leone GBS General budget support

Togo

Uganda

Zambia
Benin

GBS Action relating to debt

GBS General budget support

GBS General budget support
SBS Transport and storage

Ethiopia

SBS Transport and storage

Jamaica

SBS Government and civil society

General budget support to the national strategy 
for growth and poverty reduction
Debt reduction and growth enhancement 
programme
10th EDF poverty reduction budget support
Poverty reduction budget support programme 
(PARP 3)
Poverty reduction budget support III
MDG Contrat - multiannual budget support 
programme PPAB 2
MDG contract 1 mozambique
Multiannual support programme on poverty 
reduction 2009-2011
ASERCA II support to economic stability in CAR
MDG contract
Budget support to poverty reduction strategy
General budget support (Multi-donor budget 
support)
EIB micro financial rehabilitation
Millennium development goals contract for 
Uganda
Poverty reduction PRBS3 - MDG contract 1
Support to  road-building funds
Second sector policy support programme (SPSP 
II) in support of Ethiopia's road sector 
development programme (RSDP)
Security sector reform programme (SSRP)

Mozambique SBS Health

Health and HIV sector policy support programme

Total

50.5

     320.14 

48

16.3

175

18

27

40

26

90

90

148

303

93

17
175
75

46.4

       17.47 

175

225
65

200

33

30

New Caledonia SBS Education

Vocational training

         8.71 

Niger

SBS

Developmental food aid/food 
security assistance

Uganda

SBS Transport and storage

Zambia

Zambia

SBS Health

SBS Transport and storage

GBS : General Budget Support
SBS : Sector Budget Support

Support programme to food security sector

Ugandan road sector policy support programme - 
capacity development component
Supporting public health service delivery in 
Zambia
Second sector policy support programme
Grand Total

15

10

35

77
  2 649.52 

EN 

83 

   EN 

 
 
2.2.4.  ACP-wide activities 

In  addition  to  its  geographic  cooperation  with  the  ACP  through  national  and 
regional programmes, the EDF also provides funds for intra-ACP programmes. 

In  2008,  the  Commission  continued  to  support  African  efforts  to  build  durable 
peace  and  security  on  the  continent  through  the  African  Peace  Facility.  The 
African  Union  Mission  to  Somalia,  which  played  a  key  role  in  maintaining 
security  in  Mogadishu  and  in  supporting  the  Djibouti  peace  process,  was 
allocated  €15.5  million.  An  additional  €20  million  will  be  mobilised  to  extend 
the  operation  until  May  2009.  The  six-month  African  Union  Electoral  and 
Security Assistance Mission in the Comoros received €3.5 million to ensure free 
and  transparent  elections  in  Anjouan.  The  multinational  force  MICOPAX  to 
consolidate peace and security in the Central African Republic was allocated €5 
million.  Funds  were  also  used  to  sustain  the  national  reconciliation  process  as 
well as the reform of the security sector. Capacity building measures to support 
the AU and the sub-regional organisations in the planning and conduct of peace 
support operations on the continent received €35 million. The programming for 
the period 2008-2010 under the 10th EDF was finalised in 2008. A sum of €300 
million was approved for the continuation of the African Peace Facility to allow 
the Commission to react promptly to African crises and to continue to build on 
African accomplishments in the field of peace and security.  

In 2008, the ACP-EU water facility continued to make an important contribution 
to  achieving  the  MDG  water  and  sanitation  target.  The  EC  contribution  to  the 
Water  Facility  amounts  to  some  €497  million  with  €414.5  million  being 
allocated to two calls for proposal. Out of 1 288 proposals received, 175 projects 
were  contracted,  the  majority  of  them  being  in  Sub-Saharan  Africa  where  the 
need  is  greatest.  The  projects  will  provide  14.5  million  people  with  improved 
access to safe water and some 3.5 million with sanitary facilities, while offering 
hygiene  education  for  10.5  million.  Under  the  10th  EDF  intra-ACP  budget,  the 
water facility has been allocated €200 million.  

Of  the  €220  million  available  for  the  9th  EDF  ACP-EU  energy  facility,  €10 
million  were  committed  to  actions  under  the  ACP-EU  partnership  on 
infrastructure.  An  additional  €196  million  were  contracted  to  75  projects 
selected  under  a  call  for  proposals.  Of  these  projects,  62  are  located  in  Sub-
Saharan  Africa,  six  in  the  Caribbean  and  four  in  the  Pacific  region.  Three 
projects on improved cross-border cooperation are benefiting all ACP countries. 
The projects focus on improved access to energy services, energy management 
and  governance,  in  particular  in  rural  and  peri-urban  areas.  In  Vanuatu,  for 
example,  the  production  and  use  of  copra  oil  will  provide  energy  for  nine 
villages. With a total cost of €2.4 million (75% covered by an EC grant) three 
copra  oil  mills  and  nine  power  plants  as  well  as  12  km  of  low  voltage 
distribution  network  will  be  constructed.  This  will  deliver  energy  for  950 
households,  10  schools  and  five  health  centres.  Renewable  energies  and 

EN 

84 

   EN 

 
transmission  lines,  with  40%  each  of  available  resources,  are  the  main 
beneficiaries.  In  all,  seven  million  people  are  projected  to  benefit  from  these 
initiatives.  The  energy  facility  has  been  allocated  €200  million  from  the  10th 
EDF intra-ACP budget.  

The year 2008 brought about a more strategic approach to the implementation of 
intra-ACP funds under the 10th EDF. While the resources available under the 9th 
EDF  were  committed  on  an  ad-hoc  basis,  an  intra-ACP  strategy  paper  and 
indicative  programme  for  the  10th  EDF  was  prepared  in  2008,  defining  the 
framework for the €2.7 billion cooperation programme. The strategy paper was 
due  to  be  adopted  in  early  2009.  The  first  annual  action  programme  was 
approved,  covering  mainly  a  new  contribution  to  the  Global  Fund  for 
HIV/AIDS, Tuberculosis and Malaria as well as support to the ACP institutions 
for a total amount of €204 million.  

In 2008, the EC contributed to boosting economic growth in the ACP countries 
through  trade-related  assistance  and  private  sector  development.  The  ongoing 
TradeCom  Facility  continued  to  utilise  credits  of  €50  million  for  supporting 
institutional  capacity-building  and  bolstering  the  EPA  negotiations.  The 
signature of the financing agreement in 2008 by the ACP secretariat marked the 
start  of  the  project  for  the  Integration  of  ACP  States  into  the  Multilateral 
Trading System of the WTO and Support to the Enhanced Integrated Framework 
(€16  million)  which  will  further  reinforce  the  EC's  commitment  to  help  ACP 
countries  integrate  into  the  world  economy.  The  BizClim  Private  Sector 
Enabling  Environment  Facility  received  €20  million  for  the  period  2006-2009. 
In  addition,  the  Commission  has  continued  its  support  for  the  debt  relief 
initiative  for  highly-indebted  poor  countries  (€460  million)  as  well  as  for  the 
EIB  Investment  Facility  (€2  billion).  Private  sector  development  through  the 
PRO€INVEST  project  (€110  million)  was  extended  until  September  2011. 
Through the EU-ACP microfinance framework programme (€15 million for five 
years),  the  Commission  is  supporting  the  development  of  strong  domestic 
financial systems that work for the poor.  

In  the  context  of  the  support  for  higher  education  institutions  under  the 
EDULINK programme, two calls for proposals were organised, which led to the 
award of 55 grant contracts worth a total of €25 million. The Education for All, 
Fast  Track  Initiative  and  its  Catalytic  Fund  in  favour  of  primary  education 
received  about  €90  million.  Two  calls  for  proposals  (€6.5  and  €2.3  million, 
respectively)  were  organised  in  favour  of  the  ACP  audiovisual  and  cultural 
industries.  In  the  health  sector,  new  commitments  were  made,  for  example,  to 
support  the  Global  Fund  for  AIDS  (€150  million  for  2008-2010)  and  the 
introduction  of  pneumococcal  vaccines  in  ACP  countries  (€9.5  million).  The 
migration facility and the natural disaster facility received allocations worth €25 
million  and  €12  million  from  the  9th  EDF.  Implementation  started  of  the 
Agricultural Commodities Programme (€45 million), complemented by the IFC-
managed Global Index Insurance Fund (€25 million) to which the EC is the first 

EN 

85 

   EN 

 
donor. Capacity-building support is offered to ACP states, inter alia, through the 
Pesticides  Initiative  Programme  (€33  million),  the  strengthening  of  fisheries 
management  (€30  million)  and  of  the  sanitary  and  phytosanitary  systems  (€30 
million).  Finally,  the  EC  allocated  €109  million  from  the  9th  EDF  to  the  EIB 
Infrastructure Trust Fund. 

Figure  14:  The  sectoral/thematic  division  of  commitments 
commitments): 

(Total 

Social: Health/Education 

Institutional Support/Capacity Building 

Natural Resources and Infrastructure 

Trade and Private Sector Support 

Coordination/Others 

Total 

€188.51 million

€20.00 million

€48.00 million

€18.30 million

€9.46 million

€284.27 million

2.3. 

Development Cooperation Instrument  

The Development Cooperation Instrument (DCI) has three main functions. The 
first is to provide assistance to South Africa and 47 developing countries in Latin 
America,  Asia  (including  Central  Asia)  and  the  Middle  East  not  covered  by 
other EU instruments. Secondly, it supports the adaptation process of the sugar 
sector  in  18  ACP  Sugar  Protocol  countries  following  the  reform  of  the  EU's 
sugar  regime.  Thirdly,  it  runs  five  thematic  programmes:  investing  in  people; 
environment  and  the  sustainable  management  of  natural  resources  including 
energy;  non-state  actors  and  local  authorities  in  development;  food  security; 
migration and asylum. 

2.3.1.  Asia 

2.3.1.1.  Introduction 

Strengthening EU-Asia relations continued to be one of the EU’s external policy 
priorities during 2008. Despite recent economic growth, poverty in Asia remains 
a  significant  challenge  as  the  region  is  still  home  to  two  thirds  of  the  planet’s 
poor  people.  Overall  relations  with  Asia  are  complex.  This  is  why  the  EU  has 
been  fostering  dialogue  and  cooperation  with  all  Asian  partner  countries  and 
numerous sub-regional partners and policy fora. These include the Asia-Europe 
Meeting  (ASEM),  the  Association  of  South-East  Asia  Nations  (ASEAN),  the 

EN 

86 

   EN 

 
 
ASEAN Regional Forum and to a lesser extent the South Asian Association for 
Regional Cooperation (SAARC) to which the EU is now an observer.  

To  further  strengthen  political  and  economic  relations,  regular  summits  took 
place  during  2008  with  individual  countries  and  within  the  ASEM  framework. 
The  7th  ASEM  was  held  in  Beijing  in  October  2008  attended  also  by  new 
ASEM members Bulgaria, India, Mongolia, Pakistan, Romania, and the ASEAN 
Secretariat.  

The European Union intends to continue promoting the strategic partnership that 
it  enjoys  with  China,  particularly  at  a  time  when  the  global  economic  and 
financial  situation  calls  for  closer  cooperation  between  Europe  and  China.  The 
EU-China High-Level Economic and Trade Dialogue Mechanism was launched 
by  Commission  President  Barroso  and  Chinese  Prime  Minister  Wen  Jiabao  in 
April 2008 in Beijing. 

The  9th  EU-India  Summit  took  place  in  September  2008  and  confirmed  the 
strengthening of EU-India relations.  

Furthermore,  the  Commission  is  negotiating  free  trade  agreements  with  South 
Korea,  India  and  ASEAN  countries,  as  well  as  partnership  and  cooperation 
agreements with China, South Korea and some ASEAN countries. 

A  mid-term  review  of  the  multi-annual  indicative  programmes  for  2007-2010 
started  in  2008  to  examine  the  relevance  of  the  Asia  regional  and  country 
strategy papers. 

2.3.1.2.  Aid effectiveness and donor coordination 

The  Commission  has  made  further  efforts  to  improve  the  effectiveness  of  its 
external  aid  to  most  countries  in  Asia.  Progress  has  been  most  encouraging  in 
Cambodia, Laos, Thailand and Vietnam, but also in Burma/Myanmar, where the 
Commission has played a key role in the preparation and  management of  joint 
donor  programmes  to  the  Three  Diseases  Fund  and  the  education  sector.  In 
Afghanistan,  the  joint  EU  contribution  on  aid  effectiveness  was  prepared  to 
respond  to  the  Afghan  National  Development  Strategy.  Based  on  a  promising 
joint  management  experience  with  Member  States  for  delegation  and  transfer 
agreements  in  the  health  sector  in  Vietnam,  further  programmes  might  be 
envisaged where the Commission receives and manages funds from other donors 
or  contributes  to  programmes  managed  by  other  donors,  based  on  core 
competences of the implementing partner. 

Budget  support  and  sector  policy  support  programmes  contribute  to  improving 
aid  effectiveness  in  Asia  and  Central  Asia.  Nineteen  percent  of  the  value  of 
actions  prepared  for  commitment  in  2008  cover  budget  support,  consisting  of 
8% general budget support and 11 % sector budget support. A number of public 
finance management support programmes (including a new commitment of €15 

EN 

87 

   EN 

 
million for Bangladesh) should allow for increased use of budget support in the 
future. 

The sector approach has been promoted in Asia and Central Asia with 42% of all 
commitments representing sector programmes (budget and project approach). 

2.3.1.3.  Working towards the MDGs 

Under  the  DCI,  EC  development  cooperation  contributed  to  progress  by  Asian 
countries  towards  the  MDGs.  Where  possible,  the  European  Commission 
aligned its contribution with the policy goals of the beneficiary country and its 
poverty  reduction  strategy.  Particular  priority  is  given  to  the  social  sectors  – 
health  and  primary  and  secondary  education  represented  22%  of  new 
commitments,  which  include  preparatory  work  for  future  sector  support 
programmes. 

The region as a whole was found to be on track 58 to reach the 2015 targets on 
reducing  extreme  poverty,  universal  primary  education,  primary  completion 
rates and gender parity. However, there are risks, and governments in a number 
of countries have made additional efforts to meet the MDGs. Most countries are 
on track or early achievers with regard to tuberculosis and HIV prevalence and 
tuberculosis death rates. 

Progress is less satisfactory as regards child mortality, notably infant mortality, 
and underweight and malnourished children. While the region as a whole is on 
track to attain MDG goals for communicable diseases, HIV remains a concern, 
notably  in  Malaysia  and  Vietnam.  Asia  as  a  whole  has  severe  environmental 
problems:  forest  coverage  is  disappearing  and carbon dioxide (CO2) emissions 
per head are rising rapidly. Asia was also hit by the food price increase and by 
direct  and  indirect  effects  of  the  financial  crisis  which  may  weaken  efforts  to 
attain the MDGs. 

In South Asia59, four out of eight countries are off track for more than one third 
of the MDG indicators; two of the four are Least Developed Countries (LDCs). 
India is an early achiever or on track for universal primary education and gender 
parity  access  to  education,  HIV  and  tuberculosis  prevalence  rates,  but  shows 
slow  progress  in  fighting  extreme  poverty  and  infant  and  under-five  mortality 
rates. In South-East Asia,60 five countries are off track out of eight. In East and 
North-East Asia 61, China is on track for most of the indicators but remains off 
track  for  CO2  emissions,  access  to  water  and  sanitation.  The  under-five 
mortality  rate,  infant  mortality  and  forest  cover  were  worsening  in  the 

58 
59 
60 
61 

13 countries or more, on track, out of 19 Asian countries. 
Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka.  
Burma/Myanmar, Cambodia, Indonesia, Laos, Malaysia, Philippines, Thailand, Vietnam. 
China, North Korea (DPRK), Mongolia. 

EN 

88 

   EN 

 
                                                 
Democratic  People's  Republic  of  Korea  (North  Korea).  Mongolia  also  faces 
difficulties with reaching the target with regard to universal primary enrolment, 
forest cover and access to water. 

2.3.1.4.  Regional cooperation and integration 

The Commission continued its support for regional cooperation and integration. 
ASEAN  and  SAARC  were  focal  points  in  the  regional  strategy  paper  and 
multiannual  indicative  programme  for  Asia  adopted  in  2007.  Assistance  to 
ASEAN continues to focus on its integration efforts as outlined in the ASEAN 
economic  community  blueprint  and  builds  on  European  experience  in  regional 
integration  issues  such  as  statistics,  customs  and  standards.  Assistance  to 
SAARC under the regional MIP will support the SAARC free trade agreement 
process, the regional sector policies developed by the organisation as well as the 
region's civil aviation safety standards. 

The  year  2008  saw  significant  further  progress  in  ASEAN,  with  the  formal 
adoption  of  the  ASEAN  Charter62  including  three  blueprints  for  integration  in 
December 2008.  

Two new programmes were initiated with a strong focus on integration: the EU-
ASEAN  migration  and  border  management  programme  and  the  EU-ASEAN 
statistical capacity-building programme.  

In  2008,  the  Commission  adopted  three  new  support  programmes  for  ASEAN 
with a total value of €12 million:  

•  Enhancing ASEAN FTA negotiation capacity  
•  ASEAN cooperation project on the protection of intellectual property rights 
•  ASEAN air transport integration project. 

In support of the Asia-Europe Meeting, a third-generation project was launched 
to  extend  both  the  technical  capacity  and  geographical  coverage  of  the  Trans-
Eurasian  Information  Network.  The  ASEM  dialogue  facility  supported 
participation  by  poorer  Asian  countries  in  high-level  dialogues  on  a  variety  of 
topics  under  the  ASEM  umbrella.  In  addition,  the  Asia-Europe  Foundation 
received  funding  from  the  EC  and  other  donors  to  promote  civil  society 
participation  in  the  ASEM  process.  Support  for  collaboration  between  higher 
education  institutions  in  EU  and  Asia  was  continued  via  the  Erasmus  Mundus 
programme. 

2.3.1.5.  Implementation 

In  2008,  the  second  implementation  year  of  the  DCI,  the  EC  committed  €664 
million to Asia for policy- and reform-oriented programmes and projects, many 

62 

http://www.aseansec.org/ASEAN-Charter.pdf  

EN 

89 

   EN 

 
                                                 
of  them  in  partnership  with  other  donors,  including  Member  States.  Moreover, 
€307  million  (43%)  of  2008  EC  aid  to  Asia  will  be  directly  disbursed  through 
government budget systems, thus ensuring ownership by the partner countries.  

The  EC  contribution  to  eradicating  extreme  poverty  and  hunger  encompassed 
new  measures  for  food  security,  including  action  to  alleviate  the  effects  of 
soaring  food  prices  in  Afghanistan  (€10  million  in  total),  Burma/Myanmar  (€2 
million)  Cambodia  and  Laos  (€4  million  each),  and  the  Democratic  People's 
Republic  of  Korea  (€7  million).  The  Commission  continued  its  support  for 
refugees and displaced persons through new actions in Sri Lanka and Philippines 
of €12 million and €3 million respectively. In response to the escalating conflict 
in Sri Lanka, the EC allocated €36 million for conflict-affected communities. In 
Bangladesh, €10 million was allocated to strengthen access to land and property 
rights  which  will  benefit  in  the  first  place  the  landless  and  vulnerable  part  of 
society. 

The  Commission  also  launched  a  first  development  support  project  for  the 
DPRK  of  €3  million  –  which  may  pave  the  way  for  further  development 
programmes provided there is progress on the denuclearisation issue. 

Support  for  primary  and  secondary  education  made  up  11%  of  new  2008 
commitments.  In  India,  an  additional  €70  million  were  committed  to  allow 
continuation of the sector policy support programme for Sarva Shiksa Abhiyan, 
which  supports  government  policies  and  efforts  towards  universal  elementary 
education  in  a  harmonised  and  coordinated  manner  with  other  development 
partners.  

The  Asia  region  also  benefits  from  the  higher  education  regional  programme 
Erasmus Mundus. An additional €95 million was committed for India and China 
as well as new programmes at Asian regional level. Erasmus Mundus supports 
joint  masters  and  doctoral  programmes  between  European  and  non-European 
universities and the mobility of students and academics. 

High-profile  higher  education  symposia  and  fairs  in  seven  Asian  countries 
(China,  India,  Indonesia,  Malaysia,  Philippines,  Thailand,  and  Vietnam)  have 
promoted  cooperation  and  exchanges  between  Asian  and  European  higher 
education institutions (Asia Link). Support for basic and vocational education is 
also provided in Pakistan (€20 million). 

Taken together, Community aid to health constituted 11% of new commitments 
in a large number of Asian countries. In Burma/Myanmar, the EC contributes to 
the  Three  Disease  fund  which  aims  to  reduce  the  burden  of  communicable 
diseases  on  the  local  population.  In  India,  a  €110  million  contribution  to  the 
health  sector  programme  improves  the  quality  and  accessibility  of  health 
services  with  particular  focus  on  women  and  children.  In  2008,  the  EC 
committed €60 million to the public health and nutrition sector in Afghanistan, 
and  another  €15  million  to  strengthen  health  sector  capacity  in  Vietnam.  At 

EN 

90 

   EN 

 
regional  level,  the  EC  has  delivered  timely  funding  to  support  the  multi-donor 
trust  fund  for  the  fight  against  infectious  diseases  and  the  prevention  of  avian 
influenza  ('bird  flu')  and  human  influenza  through  technical  assistance, 
community awareness, prevention and preparedness in Burma/Myanmar. It also 
contributed  to  the  organisation  of  the  Ministerial  Conference  on  Avian  and 
Pandemic Influenza in Egypt, in October 2008. 

Strengthening  the  rule  of  law  and  good  governance,  including  public  finance 
management and economic transition reforms, is a major concern and focus for 
Community aid throughout the region.  

The  EC  successfully  supported  the  Preparation  of  Electoral  Roll  with 
Photographs,  a  comprehensive  and  effective  voter  registration  system  for 
Bangladesh,  which  helped  ensure  sound  and  fair  elections  in  2008.  The 
Commission deployed programmes to strengthen the rule of law and security in 
Indonesia and public finance management in Laos. It also supported dialogue on 
governance in the Philippines and Vietnam. 

In  2008,  the  Commission  contributed  €20  million  to  support  justice  and  €10 
million  for  customs  and  border  management  in  Afghanistan;  €7  million  to 
sustain  policy  dialogue  and  public  administration  in  China;  €15  million  to 
improve  public  financial  management  in  Bangladesh;  €8  and  €2  million  to 
improve governance and human rights in Cambodia and Laos.  

The  Commission  has  promoted  the  role  of  SMEs  in  sustainable  economic  and 
social  development  in  Asia  through  instruments  like  the  SWITCH  regional 
programme  which  promotes  sustainable  consumption  and  production. 
Institutional capacity building was provided in the field of civil aviation in India, 
trade  capacity  in  China,  India,  Laos,  Philippines,  Thailand,  Sri  Lanka  and 
Vietnam and at regional level – to ASEAN and SAARC. 

New  funds  were  committed  in  2008  for  trade  policy  support  programmes  in 
Bangladesh, Indonesia and Pakistan. ASEAN received support in the areas of air 
transport, intellectual property rights and for its FTA negotiations. 

including  €30  million 

The  Commission  continued  to  provide  assistance  in  the  areas  of  rural 
development, 
in 
Afghanistan.  EC  support  to  Afghanistan  also  comprises  a  €24  million  social 
protection programme. In Pakistan, the Commission will assess the feasibility of 
sector  support  in  rural  development.  The  Commission  also  supports  capacity 
development of civil aviation in China. 

towards  alternative 

livelihoods 

EC  environmental  cooperation  with  China  took  a  major  step  forward  with  €35 
million  to  support  a  Clean  Energy  Centre  and  an  Institute  for  Clean  and 
Renewable  Energy  and  to  promote  environmental  governance.  New  regional 
programmes concerning climate change and the environment will promote forest 
law enforcement, governance and trade (€6 million for the FLEGT action plan) 

EN 

91 

   EN 

 
and  a  switch  to  more  sustainable  production  and  consumption  in  Asia  (€25 
million for SWITCH). The Commission strives to improve livelihoods through 
sustainable  management  of  natural  resources  and  use  of  renewable  energy  in 
Pakistan. 

2.3.1.6.  Monitoring 

Figure 15: Asia Monitoring results per ODA sector 

Only samples of a minimum of five monitoring reports are considered statistically relevant. Therefore no information is 
provided for those sectors having less than the minimum number of monitoring reports. Maximum grading is 4 points 

Figure 16: Performance of Ongoing Projects

100%

80%

60%

40%

20%

0%

59%

68%

64%

Category I

Category II

Category III

Category IV

27%

10%

4%

20%

5%

7%

4%

23%

10%

2006

2007

2008

The figures in this section come from the Results Oriented Monitoring System 
which  evaluates  the  impact  of  development  projects.  The  methodology  is 
described in a comprehensive way in Chapter 4. 

EN 

92 

   EN 

 
 
 
A  total  of  189  monitoring  reports  of  ongoing  programmes  were  produced  in 
Asia, covering 18 different countries and with a total budget of €710 million63. 
Average  results  were  above  2.6  (on  a  rising  scale  of  1  to  4).  The  majority  of 
projects  monitored  belong  to  social  infrastructure  and  services.  The  best 
performing sector is humanitarian aid with an average score of 2.98 and a peak 
of nearly 3.25 for effectiveness. 

There  is  clearly  scope  for  improvement  in  relevance  and  design  quality  which 
received the lowest scores, especially for economic and infrastructure services.  

2.3.1.7.  Results 

EC  aid  has  substantially  contributed  to  progress  by  Asian  countries  towards 
achieving  the  MDGs,  notably  in  term  of  eradication  of  extreme  poverty, 
general/basic health which has improved a lot, education, good governance and 
respect  for  human  rights  and  for  the  rule  of  law  in  the  context  of  sustainable 
development. 

In  term  of  fighting  extreme  poverty,  the  Commission  response  to  natural 
disasters  (tsunami,  earthquakes  and  flooding)  in  Bangladesh,  Indonesia,  Sri 
Lanka, the Maldives and Pakistan, has contributed to rebuilding livelihoods and 
rehabilitating infrastructure. The Commission response to the 2004 tsunami was 
rapid  and  meaningful,  as  acknowledged  in  the  European  Court  of  Auditors 
report  (2008)64  which  stated  that  the  EC  responded  promptly  to  meet  the  real 
needs of people and to improve coordination  and consultation  with  beneficiary 
countries  at  national  and  local  level.  Food  security  programmes  and  help  for 
uprooted  people  have  also  contributed  to  alleviate  hunger  and  rebuild 
livelihoods. Asian countries also received EC assistance in agriculture which has 
helped in a lasting way to reduce extreme poverty by improving living standards.  

Considerable support was provided to a large number of Asian countries to help 
strengthen  health,  education  and  other  social  sectors.  The  completion  of  the 
RHIYA programme was a good example of how to promote reproductive health 
among youth in Asia. In Afghanistan, the Commission supported the ministry of 
public health in health-care policy and management, including hospital reform, 
disability  and  mental  health  services,  as  well  as  NGOs  delivering  a  basic 
package of health services in 10 provinces, and an essential package of hospital 
services in five provinces. This benefited an estimated five million Afghans. 

The  Commission  contributed  to  improving  good  governance  and  respect  for 
human  rights  and  the  rule  of  law  in  a  large  number  of  Asian  countries.  In 
Afghanistan  for  instance,  Commission  assistance  contributed  to  re-establishing 
the rule of law, in particular through further funding for LOTFA (the Law and 

63 
64 

Excluding monitoring of regional programmes. 
eca.europa.eu/portal/pls/portal/docs/1/1357526.PDF  

EN 

93 

   EN 

 
                                                 
Order  Trust  Fund)  which  finances  the  police,  border  management  and  customs 
support programme. In this way, the Commission helped to increase revenues to 
the Afghan budget that still remains heavily dependent on donors' support. 

The  Commission  has  also  contributed  to  poverty  reduction  through  economic 
and  trade  development  in  several  Asian  countries.  It  provided  support  for  the 
Afghan  customs  academy  and  the  construction  of  two  border  crossing  points, 
further  increasing  revenues  to  the  Afghan  budget.  The  Asia  Invest  regional 
programme  has  further  promoted  economic  cooperation  in  the  field  of  SME 
development.  Developing  Asian  countries  have  also  benefited  from  the  Asia 
Trust Fund for targeted trade-related technical assistance. 

Environment-related programmes were implemented in Afghanistan, China and 
India  and  at  Asia  regional  level.  In  Afghanistan,  the  National  Environment 
Protection  Agency  and  the  ministry  of  agriculture,  irrigation  and  livelihoods 
received  support  to  tackle  the  inadequate  management  of  natural  resources; 
over-exploitation of the natural resource base; collapse of traditional community 
institutions  for  managing  natural  resources;  and  low  levels  of  public  and 
government awareness. Another good example of EC intervention is the multi-
sector policy support programme in India which includes actions for Rajasthan 
to  provide  equitable  access  to  safe,  adequate,  affordable  and  sustainable  water 
supply  and  the  conservation,  stabilisation  and  replenishment  of  surface  and 
groundwater. 

2.3.1.8.  Prospects 

The Commission will further focus its external aid under the DCI on MDGs and 
support for regional integration.  

Ownership by the beneficiary is crucial for the success and sustainability of aid 
programmes. The Commission will engage, together with other donors, in policy 
dialogue  with  governments,  so  as  to  ensure  that  the  necessary  policy  and 
regulatory frameworks are in place to facilitate the success of aid programmes. 

Concentration on a more limited number of sectors, increased use of sector-wide 
approaches  and  of  budget  support,  combined  with  an  active  EC  role  in  policy 
dialogue with beneficiary governments will contribute to improved results.  

Following the recommendations on technical assistance in the Court of Auditors 
report and its commitment to the Accra Agenda for Action, the Commission will 
ensure  that  future  programmes  have  more  substantial  capacity  and  institutional 
development  components,  making  use  when  possible  of  relevant  European 
expertise. 

Delivery  on  the  aid  effectiveness  commitments  and  implementation  of  the  EU 
code of conduct will remain a priority. The Commission will also make use of 
seek 
new  opportunities  presented  by 

the  DCI  Regulation, 

and 

EN 

94 

   EN 

 
support/engagement of relevant public institutions from Member States, and will 
work closely with other donors. 

Improved  donor  coordination  will  allow  the  Commission  to  further  focus  on 
ways  to  obtain  better  results  and  impact.  The  EC  will  seek  to  define  smart 
indicators for measuring progress and triggering disbursements. 

2.3.1.9.  Success stories 

Rebuilding livelihoods after the earthquake in Pakistan 

Following the Pakistan earthquake in October 2005, the Commission took rapid 
action and approved a €50 million package to restore the socio-economic fabric 
in the earthquake-affected areas. A number of results have been achieved such as 
public  infrastructure  rehabilitation  and  the  reconstruction  of  schools.  Through 
the  Multi-Donor  Emergency  Education  Programme  led  by  UNICEF,  progress 
has been made in the construction of transitional shelters. Of these, 180 are now 
functional  and  six  permanent  schools  have  been  handed  over  to  the  education 
department.  The  improvement  of  Community-Based  Livelihoods  Recovery 
Programme  (UNDP)  led  to  over  1  000  dialogues  conducted  with  target 
communities  and  the  establishment  of  950  community  organisations.  Critical 
infrastructures  (irrigation  schemes,  link  roads)  have  been  rehabilitated  and 
numerous  training  activities  have  been  carried  out  (carpentry,  masonry,  candle 
making, handicraft etc.).  

The Three Diseases Fund (3DF) in Burma/Myanmar 

The EC is the second largest donor and will contribute €18 million over a four-
year  period  to  the  Three  Diseases  Fund,  with  the  aim  of  helping  to  reduce  the 
human suffering caused by HIV, tuberculosis and malaria.  

Since  3DF  became  fully  operational  in  April  2007,  broad  geographic  coverage 
has been achieved through reaching out to remote communities with mobile and 
fixed  clinics.  Funding  was  provided  to  23  implementing  partners  drawn  from 
NGOs  and  UN  agencies  to  implement  34  projects  in  support  of  the  national 
disease programmes. Between May 2007 and June 2008, 5 530 patients received 
anti-retroviral treatments through the 3DF (of a total of 10 418 people registered 
on anti retroviral therapy), 76 128 insecticide-treated bed nets were provided in 
2008 to protect the population from malaria; 117 008 malaria cases and 18 329 
new Pulmonary TB sputum smear positive cases were successfully treated.  

Security programmes in Afghanistan 

Support  for  the  UN  Office  on  Drugs  and  Crime  has  helped  to  equip  and  train 
border police at the 24 border control posts along the border with Iran, as well as 
to develop the country-wide fight against chemical precursors to heroin; support 
also went to UNDP in Tajikistan to train border police and customs personnel. 

EN 

95 

   EN 

 
On  security,  the  Commission  has  promoted  effective  law-enforcement  through 
establishing  a  national  police  force.  With  approximately  €181  million  since 
2003,  the  EC  is  the  biggest  contributor  to  the  Law  and  Order  Trust  Fund, 
financing  all  police  salaries  and  has  contributed  significantly  to  improving  its 
performance. The Commission is seen as a critical but constructive player. 

2.3.2.  Central Asia 

2.3.2.1.  Introduction 

Overall relations with Central Asian countries continued to strengthen in 2008. 
Particular attention was given to the implementation of key initiatives under the 
EU  strategy  for  Central  Asia,  including  the  education  initiative  and  the  rule  of 
law initiative, which were launched at high-level events in June and November 
2008.  Political  dialogue  intensified  with  the  first  EU-Central  Asia  Security 
Forum  held  in  Paris  in  September  2008,  and  human  rights  dialogues  were 
launched  with  all  Central  Asian  countries.  Cooperation  in  the  field  of  the 
environment  was  strengthened,  notably  with  the  launch  of  a  water  policy 
dialogue with Kyrgyzstan, as the first Central Asian country, under the EU water 
initiative. 

2.3.2.2.  Aid effectiveness and donor coordination 

During  2008,  the  Commission  made  further  efforts  to  promote  donor 
coordination and to implement the EU code of conduct in Central Asia. In 2007, 
the  Commission  joined  a  group  of  donors  establishing  a  joint  intervention 
strategy  (Joint  Country  Support  Strategy)  for  Kyrgyzstan  and  Tajikistan  in 
support  of  national  poverty  reduction  strategies.  The  strategy  for  Kyrgyzstan 
covers the period 2007-2010 while the strategy for Tajikistan is expected to be 
endorsed in 2009 and cover the period to 2012. Donor coordination in these two 
countries is also very active around public finance management issues, an area in 
which the Commission supports a number of projects.  

To ensure synergy between EC and Member State assistance to Central Asia a 
number  of  assistance  coordination  meetings  organised  by  or  with  the 
Commission took place in 2008. A general assistance coordination meeting with 
Member  States  was  held  in  March  and  a  coordination  meeting  concerning  the 
Tempus65  programme  in  September.  The  rule  of  law  initiative  was  launched  in 
November followed by the water and environment initiative in December. These 
meetings  allowed  for  a  comprehensive  overview  of  ongoing  and  planned 
assistance and policy dialogue initiatives. In all 32% of bilateral aid committed 
in 2008 for Central Asia will be delivered through the country systems, thereby 
increasing ownership. 

65 

Trans-European Mobility Programme for University Studies. It covers the EU and other regions, 
including central Asia 

EN 

96 

   EN 

 
                                                 
2.3.2.3.  Working towards the MDGs 

Kazakhstan  is  likely  to  achieve  most  MDGs  and  has  already  met  a  number  of 
them,  in  particular  poverty  reduction,  access  to  primary  education  and 
empowerment of women. Kazakhstan has consequently adopted more ambitious 
objectives for those areas: the MDG+ targets. Although progress has been made 
in Kyrgyzstan and Tajikistan with regard to poverty reduction and in achieving 
primary education enrolment targets, these countries remain among the poorest 
countries  in  Asia  according  to  the  Human  Development  Index.  Progress  in  the 
fight against HIV and AIDS has been recorded in Kyrgyzstan, Kazakhstan and 
Tajikistan,  but  the  prevalence  of  tuberculosis  has  increased.  Further  progress 
remains to be made throughout the region, particularly in the field of health and 
water and sanitation in rural areas. 66  

EC  external  aid  under  the  DCI  contributes  to  the  fight  against  poverty  and  to 
achieving the MDGs in Central Asia. It provided sector budget support to reform 
the  social  protection  systems  in  Kyrgyzstan  worth  €18  million  for  2008-2009 
and support for education of €6 million. In Tajikistan, support has been provided 
for a health management information system and €5 million has been disbursed 
for  poverty  reduction  in  rural  areas.  In  Uzbekistan,  the  EC  contributes  to  the 
improvement  of  living  standards  of  vulnerable  groups.  Support  for  education 
system  reforms  has  been  given  to  Turkmenistan.  The  Commission  also 
contributed  to  the  MDGs  through  its  €4  million  regional  programme  for  the 
environment. 

2.3.2.4.  Regional cooperation and integration 

Central  Asia  is  strategically  situated  between  Europe  and  the  rest  of  Asia. 
Because of its history, its links with Russia and other CIS countries are strong. 
However, economic ties with Europe and Asia, especially China, are developing 
rapidly. Regional cooperation is therefore focusing on specific issues where the 
five  countries  have  an  objective  need  to  cooperate.  An  EU  strategy  paper  for 
Central  Asia  identifies  five  of  those  areas:  education,  energy,  transport, 
environment  and  border  management.  In  all  these  areas  specific  cooperation 
programmes are being implemented or planned. 

In  the  framework  of  the  EU  strategy  for  Central  Asia,  a  series  of  high-level 
initiatives have been agreed by the EU and all Central Asian countries, with the 
active involvement of the EU Member States. At present, three main core-areas 
of  intensified  policy  dialogue  and  enhanced  cooperation  have  been  identified 
and initiatives launched: education, environment and the rule of law. 

66 

Based on WB 2008 report and Kazakhstan MDG report 2007. 

EN 

97 

   EN 

 
                                                 
2.3.2.5.  Implementation 

In  2008  the  EC  committed  €63  million  to  Central  Asia.  The  aid  was  project-
based,  except  in  Kyrgyzstan  where  EU  support  to  reform  the  social  protection 
systems was in the form of sector budget support.  

The  new  commitments  for  2008  cover  the  following  main  sectors:  health  (€1 
million),  education  (€29  million),  social  protection  (€9  million),  border 
management (€5 million), environment (€4 million), democratic governance (€6 
million) and rural development (€4 million). 

The  Tempus  regional  programme  continues  to  support  education  reform, 
curricula  development  and  university  modernisation  through  partnerships 
between  higher  education  institutions.  Support  is  also  provided  for  vocational 
education and training to help the population to access new opportunities in the 
growing and evolving private sector. In 2008, €10 million and €5 million have 
been  committed  for  the  continuation  of  Erasmus  Mundus  and  Tempus  for 
Central Asia.  

Support for strengthening governance including public finance management and 
economic  transition  reforms  has  been  provided  to  Kyrgyzstan  (€9  million)  and 
Tajikistan  (€2  million).  The  EC  has  also  continued  supporting  civil  society  in 
Uzbekistan  through  the  institution-building  and  partnership  programme  (€2 
million)  and  has  contributed  €2  million  to  increase  the  effectiveness  of  the 
legislative process of the Uzbek Parliament.  

Under  the  border  management  programmes  BOMCA  and  CADAP,  border 
crossing  points  in  the  region  have  been  constructed  and  a  constant  policy 
dialogue with the five countries is conducted bilaterally and regionally. The rule 
of law initiative supports reforms and the sharing of experiences between the EU 
and Central Asia in the area of legal and judicial reforms. 

In order to ensure environmental sustainability, the EC has committed €4 million 
in  favour  of  a  regional  environment  programme  focusing  on  protecting  water 
resources. 

2.3.2.6.  Monitoring 

Figure 17: Central Asia ROM Monitoring results per ODA sector 

EN 

98 

   EN 

 
Only samples of a minimum of five monitoring reports are considered statistically relevant. Therefore no information is 
provided for those sectors having less than the minimum number of monitoring reports. Maximum grading is 4 points. 

Figure 18: Performance of Ongoing Projects

100%

80%

60%

40%

20%

0%

66%

27%

54%

61%

33%

33%

Category I

Category II

Category III

Category IV

0%

7%

2%

11%

2%

5%

2006

2007

2008

The  figures  hereafter  refer  to  the  Results  Oriented  Monitoring  System  (ROM), 
implemented  to  evaluate  the  impact  of  projects  on  development.  The 
methodology is described in a comprehensive way in Chapter 4. 

A  total  of  101  monitoring  reports  for  ongoing  projects  in  the  five  countries  of 
Central  Asia  have  been  produced,  covering  actions  with  a  total  budget  of  €89 
million67. 

Monitored projects were mainly implemented in four areas: social infrastructures 
and  services,  followed  by  economic  infrastructure  and  services,  production 
sectors and finally multi-sector and cross-cutting issues. 

67 

Excluding reports on regional cooperation. 

EN 

99 

   EN 

 
 
 
                                                 
On a rising scale of 1 to 4, the average scores for Central Asia for 2008 all show 
an  improvement  over  2007,  with  the  exception  of  efficiency  which  fell  from 
2.64  to  2.61.  Relevance/quality  of  design  improved  from  2.61  to  2.71; 
effectiveness rose from 2.53 to 2.64; impact from 2.57 to 2.68 and sustainability 
from 2.53 to 2.66. 

2.3.2.7.  Results 

The Joint Progress Report by the Council and the European Commission to the 
European Council on the implementation of the EU strategy for Central Asia68 
concludes  that  the  intensified  high-level  political  dialogue  with  Central  Asian 
countries has contributed positively to practical cooperation.  

The regional approach is given high priority when implementing the strategy in 
areas  like  combating  drug  trafficking,  modernising  border  management, 
promoting  higher  education,  facilitating  energy  and  transport  links  and 
environment  issues  including  water  management.  The  rule  of  law  initiative  for 
Central Asia, launched at a Ministerial meeting in November 2008 in Brussels, 
supports  reforms  and  the  sharing  of  experiences  between  the  EU  and  Central 
Asia  in  the  area  of  legal  and  judicial  reforms.  The  European  educational 
initiative for Central Asia, launched in Ashgabat in April 2008, seeks to increase 
dialogue, resources and exchanges in the area of education.  

The EC provided substantial support to civil society organisations and non-state 
actors. It also supported the provision of basic social services through the non-
governmental  sector,  complementing  ineffective  governmental  systems  in 
Uzbekistan and Tajikistan. Support for rural development in Tajikistan has led to 
improved sustainable on-farm and off-farm livelihoods and better access to clean 
drinking  water.  In  Kyrgyzstan  and  Tajikistan,  the  Commission's  support  for 
public finance management and technical assistance projects contributed further 
to capacity development which allows for delivery of aid through sector budget 
support programmes. 

2.3.2.8.  Prospects  

As part of the EU Strategy for Central Asia69, regional and bilateral cooperation 
programmes  will  continue  in  line  with  the  strategic  guidelines  of  the  Central 
Asia  indicative  programme  2007-2010.  This  includes  continued  support  to 
regional cooperation in higher education, border management, environment and 
rule of law. In Uzbekistan, there are large programmes planned for the coming 
year  to  support  judicial  reform  and  rural  development.  In  Kazakhstan  €13 
million will go to a programme on poverty reduction and local development with 

68 
69 

http://ec.europa.eu/external_relations/central_asia/docs/progress_report_0608_en.pdf  
The EU and Central Asia: Strategy for a New Partnership, adopted by the Council of the EU on 31 
May 2007 (10113/07) 

EN 

100 

   EN 

 
                                                 
the  purpose  of  supporting  the  national  and  local  governments,  lawmakers  and 
local  development  actors  in  further  developing  and  implementing  policies  to 
improve  living  conditions  for  the  most  vulnerable  people.  Continued  sector 
budget  support  to  reform  the  social  protection  system  in  Kyrgyzstan  and 
Tajikistan are planned, based on positive evaluations of ongoing programmes. 

2.3.2.9.  Success stories 

A more effective and better targeted social protection system in Kyrgyzstan 

After  independence,  the  social  protection  systems  inherited  from  Soviet  times 
faced a double challenge. Due to increasing poverty, needs were rising, while the 
resources to meet these needs were shrinking. As a result, the level of service in 
many  institutions  fell  dramatically.  In  addition,  many  allocations  in  kind  or 
privileges could no longer be justified in the new context.  

The  Commission  supported  the  necessary  reforms  through  the  food  security 
thematic  programme.  Key  reforms  were  de-institutionalised;  a  monetisation  of 
benefits  and  a  reduction  of  privileges  were  carried  out;  social  allocations  for 
families  or  individuals  without  resources  have  been  and  continue  to  be  re-
organised in order to target social support to those who need it most. Better data 
for  estimating  income  levels  should  facilitate  the  process.  With  the  recent 
increase in food prices, the Commission provides, jointly with other donors, the 
financial resources allowing for an increase of these allocations. 

A specific case is that of residential institutions for orphans or abandoned and/or 
handicapped children. Due to unrestricted access to such institutions shortly after 
independence, a number of emigrants, leaving the country to find work abroad, 
abandoned  their  children  in  orphanages.  However  the  state  did  not  have  the 
resources  to  provide  an  adequate  diet,  nor  decent  services.  Thanks  to  support 
from the Commission, child mortality in these institutions has been reduced, and 
food and care improved, while at the same time admission has been made much 
more  restrictive.  The  new  policies  being  implemented  will  further  reduce  the 
role  of  such  residential  institutions  by  developing  social  services  to  support 
families, including day-care centres. 

2.3.3.  Middle East 

2.3.3.1.  Introduction 

Three  countries  in  the  Middle  East  are  covered  by  the  DCI:  Iraq,  Iran  and 
Yemen. Positive, though fragile, improvements in security in Iraq during 2008, 
plus  substantial  Iraqi  government  revenue  from  oil  exports,  prompted  the  first 
steps  in  a  shift  of  EC  assistance  away  from  emergency  reconstruction,  and 
towards long-term capacity building. A key priority of the Iraqi government and 
its  international  partners  is  to  provide  the  necessary  technical  assistance  to  the 
different institutions so as to allow the country to make the best use of its own 

EN 

101 

   EN 

 
considerable financial resources. EC support in the medium-term is therefore set 
to concentrate on the sustainability of Iraqi institutions, on the improvement of 
management and civil service capacity and on boosting the provision and quality 
of  basic  services  (health,  water/sanitation).  The  Commission  also  continued  its 
major programme of rule of law assistance – ranging from building up judicial 
institutions and the machinery of human rights protection to support for NGOs 
providing citizens’ rights and legal advice. 

In parallel, the EC continued to focus a large proportion of its aid on support for 
internally-displaced people and refugees in Jordan and Syria, so as to ease their 
increasingly difficult living conditions. 

In Yemen, while the government remained committed in principle to its reform 
agenda  –  taking  forward  civil  service  reform  and  financial  management 
measures – progress on the adoption of a revised election law, in line with EU 
recommendations in 2006, remained stalled. Meanwhile the overall situation in 
Yemen  deteriorated,  with  fighting  in  the  northern  governorates  until  mid-year 
and signs of social unrest due to rising food and fuel prices. The EU raised its 
level  of  involvement,  to  try  to  help  Yemen  avoid  state  failure,  raising  the 
planned  allocation  from  the  DCI  budget  by  another  25%  to  €19  million.  New 
Commission assistance projects focused on support for juvenile justice and the 
rule  of  law  in  Yemen  and  a  reproductive  health  programme.  These  were 
additional  to  existing  governance  work  (electoral  and  democratic  support  as  a 
follow-up  to  the  2006  EU  elections  observation  mission)  and  local  community 
development through the Social Fund for Development. 

Finally,  the  Commission  continued  to  support  the  negotiations  of  the  EU3 
(France,  Germany  and  the  UK)  with  Iran  in  the  hope  that  the  nuclear  dossier 
could  be  unblocked,  opening  the  way  for  enhanced  cooperation.  Support  for 
non-state actors was provided for under an Iran-specific call for proposals, while 
support was also offered to Iran in the context of cross-regional cooperation to 
combat drug trafficking. 

2.3.3.2.  Implementation 

The  Commission  has  supported  the  reconstruction  of  Iraq  since  2003 
contributing  over  €785  million.  EC  reconstruction  aid  concentrates  on  fighting 
poverty through alleviating the difficulties encountered by the Iraqi people. Almost 
half  of  the  aid  has  gone  into  the  development  of  basic  services  with  the 
remainder  devoted  to  human  development  sectors,  the  improvement  of 
institutional  capacity,  and  electoral  support.  In  2004-2007,  EC  support  was 
principally  channelled  through  the  IRFFI  –  the  International  Reconstruction  Fund 
Facility for Iraq, a multilateral mechanism established in 2004. Working through the 
IRFFI  enabled  the  international  community  to  combine  their  efforts  through  a 
common  strategy  and  action  channel.  In  this  way,  the  EC  was  able  to  deploy  its 
support  in  challenging  conditions  and  a  very  difficult  security  environment 

EN 

102 

   EN 

 
where  direct  Commission  action  would  not  have  been  feasible.  This  was 
complemented  by  bilateral  actions  with  Iraq  such  as  support  for  civil  society 
organisations  in  the  field  of  human  rights  and  technical  assistance  to  key  Iraqi 
institutions.  In  the  last  few  years,  the  Commission  increased  significantly  its 
support to the displaced Iraqi population inside Iraq, in Syria and in Jordan, in 
view of their huge numbers and difficult situation.  

The  2008  assistance  programme  for  Iraq  has  been  predominantly  implemented 
on  a  bilateral  basis  in  the  light  of  the  improved  security  situation  and  the 
decision of the Donor Committee to gradually wind down IRFFI's operations. A 
major  programme  of  technical  assistance  to  Iraqi  government  departments  and 
institutions was approved. The assistance programme also provides support  for 
specialised  medical  services,  together  with  a  project  to  improve  water  services 
and  increase  government  capacity  to  manage  the  water  and  sanitation  sectors. 
Five programmes have been put in place to support internally displaced persons 
inside Iraq and the large number of refugees in Syria and Jordan.  

As  Yemen  is  one  of  the  poorest  countries  in  the  world,  EC  assistance 
concentrates on helping meet the basic economic and social needs of the Yemeni 
population. In 2008, the focus was on two main areas. One is the Reproductive 
Health and Population Programme, which will continue to tackle the high birth 
rate  in  the  country  and  to  improve  healthcare  for  children.  The  second  is  the 
Juvenile  Justice,  Rule  of  Law  and  Public  Administration  Modernisation 
programme, to help with the important reform efforts of governance institutions. 

Despite  a  difficult  political  context  for cooperation  with  Iran,  the  four  existing 
projects  promoting  good  governance  and  human  rights  (essentially  through  UN 
bodies) and in the field of drug rehabilitation proceeded satisfactorily. Activities 
undertaken as part of one of those projects have now been completed. Two new 
projects  financed  under  the  Non-State  Actors  and  Local  Authorities  in 
Development thematic programme were expected to get underway in early 2009. 
One will focus on the reduction of natural risk vulnerability of communities and 
buildings  in  natural  disaster-prone  areas  of  Iran.  The  other  aims  to  stimulate 
social and economic development in impoverished areas of Iran. 

2.3.3.3.  Prospects  

Programming  of  assistance  to  Iraq  has  been  on  a  yearly  basis  since  2003.  The 
adoption  of  a  strategy  paper  and  indicative  programme  has  not  been  possible 
until  now,  in  view  of  the  security  situation  and  the  prevailing  political 
uncertainty. Yearly programming will continue in 2009 and 2010, which will be 
a  period  of  very  important  changes  in  Iraq,  including  the  holding  of  elections 
and  referenda  plus  the  planned  withdrawal  of  international  coalition  forces.  If 
this  process  goes  well,  the  Commission  foresees  the  establishment  of  the  first 
multi-annual programming exercise in the period 2011-2013. 

EN 

103 

   EN 

 
Given Yemen's poverty and its high dependence on food imports and exposure 
to  high  food  prices,  the  Commission  concentrates  its  aid  for  2009  on  food 
security. The exceptionally large number of projects in this area will tackle the 
issue from different angles to try to improve both the availability and the access 
to food by the poorest. The total cost of €25 million will be funded from the EC's 
annual action programme and from the food security thematic programme.  

2.3.4.  Latin America 

2.3.4.1.  Introduction 

Latin America was high on the EU's external policy agenda in 2008, leading to 
the deepening of mutual relations.  

In 2008, the political dialogue between the two regions culminated in the Fifth 
European Union–Latin America and Caribbean (LAC) Summit of Heads of State 
and  Government  that  took  place  on  16-17  May  in  Lima,  Peru.  This  summit, 
under the heading Addressing our Peoples’ priorities together, was a successful 
event, demonstrating the strength of the bi-regional strategic partnership and the 
willingness of both regions to work together to address major global challenges. 
In  the  run-up  to  the  summit,  the  European  Commission  organised  or  co-
organised  several  preparatory  events,  notably  the  Forum  on  Social  Cohesion 
(Santiago de Chile, September 2007), the First EU-LAC ministerial meeting on 
the environment (Brussels, March 2008) and the third EU-LAC experts’ meeting 
on migration (Brussels, March 2008.) 

The  Lima  summit  adopted  a  Declaration  which  includes  a  Lima  Agenda  for 
Joint  Action  containing  concrete  commitments  and  actions  on  the  two  key 
summit  themes  in  the  period  up  to  the  next  summit  in  2010  in  Spain:  social 
cohesion and  sustainable  development. Beside these two key themes, the Lima 
summit addressed other inter-related issues such as concern at rising food prices, 
migration, and investments and the need for a stable legal investment climate. 

As  a  follow-up  to  Lima,  the  Commission  held  a  structured  and  comprehensive 
dialogue  on  migration  with  Latin  America  and  the  Caribbean.  It  held  regular 
high-level meetings with the region's representatives to present and explain the 
EU's evolving common migration policy. The meetings presented an occasion to 
exchange  information  and  concerns  with  a  view  to  identifying  common 
challenges and increasing mutual understanding of migration realities. 

On the subject of regional integration – a key element in EU policy towards the 
region – the Commission continued in 2008 to pursue negotiations to conclude 
comprehensive  association  agreements  (political  dialogue,  cooperation  and 
preferential  trade)  with  the  Andean  Community  and  with  Central  America. 
Several  negotiating  rounds  took  place  in  2008  with  Central  America,  and 
negotiations for the association agreement are expected to be concluded in 2009. 
Negotiations  with  the  Andean  Community  face  serious  difficulties  due  to  the 

EN 

104 

   EN 

 
different  political  views  within  the  Andean  Community.  The  Commission  has 
tried hard since the beginning of the negotiations to accommodate the different 
positions  of  the  Andean  Community  countries  to  allow  the  negotiations  to 
proceed. Given the absence of a consensus among its partners and the impasse in 
the negotiations, the Commission pursues separate trade negotiations with those 
Andean Community countries which have expressed an interest in deepening the 
existing  political  and  cooperation  agreement.  Negotiations  on  an  association 
agreement  with  Mercosur  remain  on  hold.  However,  political  dialogue  and 
cooperation  moved  ahead  in  2008.  A  number  of  meetings  at  technical  and 
ministerial level took place to review the situation of the negotiations and to hold 
political dialogue on issues of mutual interest. These contacts culminated in May 
2008  in  a  separate  gathering  of  EU  and  Mercosur  leaders  during  the  EU-LAC 
Lima summit.  

The  establishment  of  a  strategic  partnership  at  the  first  EU-Brazil  summit  in 
Lisbon in July 2007 has given relations with Brazil a new platform. The strategic 
partnership  rests  on  five  principal  pillars  for  cooperation:  peace  and  security; 
economic,  social,  and  environment  issues;  regional  cooperation;  science, 
technology  and  innovation;  people-to-people  exchanges.  In  advance  of  the 
second  summit  on  22  December  2008  in  Rio  de  Janeiro,  the  EU  and  Brazil 
prepared  a  draft  Joint  Action  Plan  that  sets  out  the  path  for  relations  over  the 
next three years.  

Commission  President  Barroso  visited  Mexico  in  May  2008,  confirming  the 
progressive strengthening of EU-Mexico relations since the global agreement of 
2000. In a Communication on 15 July 200870, the Commission recommended to 
the  Council  and  to  the  European  Parliament  the  establishment  of  a  strategic 
partnership with Mexico putting it on a par with the other so-called Outreach 5 
countries:  China,  Brazil,  India  and  South  Africa.  The  Commission’s  initiative 
was  endorsed  by  the  EU  Member  States  in  October.  The  strategic  partnership 
will mainly enhance coordination of EU and Mexico’s positions on global issues 
but will also boost the bilateral cooperation. 

Relations  with  Chile  continued  to  develop  positively  during  2008  in  the 
framework of the 2002 Association Agreement. An EU-Chile summit took place 
during the main Lima summit. The two sides are now exploring ways to develop 
the  relationship  further,  building  on  the  excellent  results  achieved  since  the 
Agreement entered into force. In particular, Chile tabled a proposal to launch a 
new  agenda  of  policy  dialogue  and  cooperation,  the  Asociación  para  el 
desarrollo  y  la  innovación,  which  will  be  essentially  a  bilateral  EU-Chile 
initiative  but  open  to  involvement  of  other  Latin  America  countries  in  sharing 
experience and good practices. 

70 

COM(2008) 447 final of 15.07.2008  

EN 

105 

   EN 

 
                                                 
In  2008,  the  EU  also  remained  determined  to  strengthen  multilateralism  by 
working  as  closely  as  possible  with  all  relevant  international  organisations 
involved  in  cooperation  with  Latin  America,  like  the  UN  and  its  Agencies 
(notably ECLAC and UNDP), the Inter-American Development Bank and other 
international  financial  institutions  plus  other  partners.  EU  representatives  met 
US,  Canadian  and  Russian  counterparts  to  exchange  views  and  explain  policy 
towards Latin America. 

2.3.4.2.  Aid effectiveness and donor coordination 

Increasing  donor  coordination  especially  with  EU  Member  States  remains  a 
priority.  The  Commission  promotes,  organises  and  participates  in  regular 
meetings  with  Member  State  representatives  and  other  donors  to  exchange 
experiences and to ensure coherence between its policies and other cooperation 
activities  and  programmes.  Sector  approaches  have  encouraged  a  more 
harmonised and effective pooling of development potential. 

The  first-ever  conference  on  EU  donor  coordination  in  Latin  America  was 
organised  by  EuropeAid  and  the  French  EU  Presidency  in  December  2008  in 
Brussels.  This  gave  EU  Member  States,  via  their  relevant  ministries  and 
agencies,  and  international  organisations  active  in  Latin  America  a  unique 
opportunity  to  inform  each  other  on  their  activities  in  the  region  and  to  take 
stock of aid effectiveness mechanisms already in place. This conference was in 
line with the Accra Agenda for Action and the EuropeAid Action Plan currently 
under preparation.  

In the Latin American region, many activities have been launched to apply the 
EU  code  of  conduct  on  the  division  of  labour  among  donors,  in  close 
consultation  with  beneficiaries  and  donors.  In  Nicaragua,  for  example, 
cooperation  activities  of  the  EU  and  its  Member  States  were  mapped  via  the 
ODAnic  Database.  In  Bolivia,  the  Commission  was  nominated  to  chair  the 
working group for monitoring the poverty reduction strategy. This group aims to 
strengthen  dialogue  with  the  government,  other  donors  and  civil  society  in  all 
priority sectors. The results of its work will lay the foundation for future political 
actions between the G16 (donor countries, development banks and the UN) and 
the government. 

2.3.4.3.  Working towards the MDGs 

According to the Millennium Development Goals Report 200871, the region as a 
whole has already met at least five MDGs. In the other areas, progress has been 
rapid enough to put Latin America on track to meet the 2015 deadline. The 2008 
report  notes  nonetheless  that,  despite  the  progress  made,  Latin  America  still 
faces several challenges, particularly with regard to reducing child and maternal 

71 

http://www.un.org/millenniumgoals/ 

EN 

106 

   EN 

 
                                                 
mortality,  reducing  adolescent  pregnancies  and  meeting  the  need  for  family 
planning.  Furthermore,  income  inequality  is  one  of  the  highest  among  all 
developing regions, and the very high unemployment rate among young people 
remains one of its major challenges.  

The European Commission actively contributes to the achievement of the MDGs 
through  several  activities.  In  El  Salvador,  the  Commission  is  financing  a  €37 
million  budget  support  programme  that  aims  at  alleviating  extreme  and  severe 
poverty  (MDG  1)  through  improved  basic  services  and  infrastructure  in  rural 
areas.  These  cover:  education  (MDG  2),  healthcare  (MDG  4-5),  water, 
sanitation, electricity, and roads, in 100 municipalities. The PAPES programme 
has already ensured the extension of health services to 81 municipalities and 413 
000 citizens. More than 250 000 inhabitants of local communities have benefited 
from  new  infrastructures  (rural  roads,  schools,  health  units,  bridges).  In  the  32 
municipalities  classified  as  suffering  from  severe  poverty,  the  population  with 
access  to  sanitary  services  increased  from  65%  to  77%;  the  percentage  of 
schools with access to electricity rose from 66% to 81% and the percentage of 
schools with access to drinking water from 57% to 85%. 

In  Honduras,  the  PRAEMHO72  programme  (€28  million)  supports  secondary 
education  (MDG  1  and  2)  by  providing  professional  training  to  students.  The 
programme is a component of the poverty reduction strategy of the government 
of  Honduras.  To  date,  some  4  340  teachers  were  trained  in  professional  and 
technical  training  skills.  A  total  of  1  446  students  have  benefited  from  grants 
guaranteeing  their  access  to  training  and  entry  into  the  workforce;  and  33 
workshops,  42  laboratories  and  18  classrooms  were  built  and  equipped  in  19 
secondary schools.  

In  Peru,  the  PROPOLI73  programme  (€12  million)  fought  poverty  (MDG  1)  in 
the  Lima  metropolitan  area  by  integrating  lower-income  families  into  socio-
economic  development  processes.  It  has  financed  the  creation  of  780  micro-
enterprises  in  the  sector  of  production,  services  and  trade  through  a  business 
initiative fund. Close to 10 000 micro-enterprises received training, consultancy 
and  technical  assistance  for  their  development.  The  programme,  "Enterprising 
Women"  (MDG  3)  allowed  700  women  to  engage  in  trade  activities,  notably 
through the organisation of trade fairs. 

2.3.4.4.  Regional cooperation and integration 

Latin  American  countries  have  embarked  on  regional  integration  processes,  a 
priority area for European Commission support. 

72 
73 

http://ec.europa.eu/europeaid/where/latin-america/country-cooperation/honduras/honduras_en.htm  
http://ec.europa.eu/europeaid/where/latin-america/country-cooperation/peru/peru_en.htm  

EN 

107 

   EN 

 
                                                 
Two  initiatives  were  approved  in  2008  to  fight  drug  trafficking  in  the  Andean 
Community  (CAN).  The  programme  INTER-CAN  (Integración  Económica 
Regional de la CAN), received €6.5 million to improve cooperation in the area of 
intra-regional  trade  through  an  integrated  control  of  goods  and  services  at 
borders.  This  can  be  achieved  for  instance  by  working  on  better  links  between 
administrations  through  electronic  data  exchange  networks  and  improved 
customs  inspection  laboratories.  The  programme  PRADI-CAN  (Programa 
Antidrogas ilícitas en la CAN) is the first comprehensive cooperation project on 
drugs  within  the  2007-2013  programming  period.  One  of  the  main  goals,  with 
funding  of  €3.25  million,  will  be  the  establishment  of  a  network  of  national 
observatories on drug trafficking. Other elements will aim at developing regional 
activities  on  control  of  precursors  in  the  CAN  and  improving  the  capacity  of 
drug-related analysis of the countries of the Andean Community. 

In  Central  America,  the  second  support  programme  for  Central  American 
regional integration (PAIRCA II) was launched with an EC contribution of €15 
million.  The  overall  objective  of  the  programme  is  to  support  the  process  of 
regional  integration  by  strengthening  its  institutional  system,  with  a  view  to 
increasing  its  efficiency  and  legitimacy.  The  specific  objectives  are  mostly 
oriented towards: 

•  Facilitating  the  process  of  reform,  structuring  and  modernisation  of  the 
system, as well as supporting regional and national institutions in their efforts 
to cope with the challenges at stake; 

•  Enhancing  coordination  and  networking  at  all  levels,  as  well  as  increasing 

civil society participation;  

•  Raising awareness among the population in general and making training and 

information available to the public.  

In 2008, the Commission also approved an audiovisual programme to strengthen 
the  cinematographic  and  audiovisual  sector  in  Mercosur  as  an  instrument  to 
foster the regional integration process and the participation of civil society. The 
programme has been designed to:  

•  Promote  the  free  circulation  of  cinematographic  and  audiovisual  goods  and 

services and the population's access to them;  

•  Contribute  to  the  harmonisation  of  legislative  issues  of  the  cinematographic 
and audiovisual sector in Mercosur (supporting the Mercosur Work plan74);  
•  Increase  the  market  share  of  Mercosur  audiovisual  products  in  the  region 

through regional distribution, exhibition and production agreements;  

•  Increase  the  number  of  Mercosur  co-productions,  promoting  interregional 
exchange,  and  Mercosur  content  with  a  view  to  increasing  the  Mercosur 
profile;  

74 

MERCOSUR/LXX GMC/DT 21/07 

EN 

108 

   EN 

 
                                                 
•  Promote  the  complementarities  and  integration  of  the  cinematographic  and 
audiovisual  industries  in  the  region  by  reducing  asymmetries  between  the 
productive structures of Mercosur member countries, with special attention to 
Paraguay. 

2.3.4.5.  Implementation 

In 2008, the Commission approved 18 bilateral cooperation actions with a total 
financial  commitment  of  more  than  €348  million.  The  main  sectors  of 
intervention were education and culture with six actions, together with trade and 
regional  integration,  social  cohesion  and  economic  development,  and  good 
governance and human rights with four actions each.  

Budget  support  has  become  the  preferred instrument  of  cooperation  with  Latin 
America during the last few years. This is the case in countries like Nicaragua, 
Bolivia,  El  Salvador,  Honduras,  Ecuador,  Uruguay,  Guatemala  and  Peru  for 
various  sectors  such  as  poverty  reduction,  education,  justice,  government 
decentralisation,  growth  and  trade,  water  management  and  innovation.  Since 
2003, the EC has committed through budget support an average of €84 million 
per  year.  In  2008,  the  EC  committed  a  total  of  €166  million  to  support  the 
poverty reduction programme in Honduras, to improve global social spending in 
the education sector and support sustainable economic opportunities in Ecuador, 
to support the education sector in Paraguay and to support the national plan for 
river basins in Bolivia.  

Cooperation with Nicaragua, the third biggest recipient of EC aid after Bolivia 
and Honduras for the period 2007-2013, ran into difficulties at the end of 2008. 
The  European  Commission  and  other  EU  donors  decided  in  December  to 
suspend  the  disbursement  of  the  aid  channelled  through  budget  support  to  the 
government of Nicaragua. Nevertheless, the Commission continued its activities 
outside  of  budget  support  and  will  review  the  situation  in  the  light  of  action 
taken by the Nicaragua government.  

In Colombia, one of the 17 countries receiving EC assistance in this region, the 
Commission  supported  the  UNHCR's  protection  response  for  internally 
displaced persons, with an emphasis on the restitution of their land and property. 
In  a  context  where  conflict  between  the  FARC  and  ELN  guerrilla  movements 
has  led  to  mass  forced  displacement,  with  nearly  70%  of  those  affected  losing 
their  homes  and  their  lands,  securing  land  and  property  rights  is  essential  for 
making  long-term  peace,  stability,  economic  vitality  and  justice  possible  in 
Colombia. This was the objective of the EC and the UNHCR in the framework 
of the global protection plan 2007-2009, with an EC contribution of €4 million. 
In particular, it aims at promoting and updating the existing legal framework on 
the state's international obligations, at reinforcing institutional capacity building, 
at  promoting  social  organisation  and  empowerment  and  at  strengthening 
domestic supervisory mechanisms. To achieve these results, the UNHCR used a 

EN 

109 

   EN 

 
participatory  assessment  methodology  whereby  beneficiaries  were  involved  to 
identify gaps in public policies at national and local levels, to implement direct 
protection  responses  and  to  identify  vulnerable  groups  and  their  most  common 
protection risks.  

The  regional  cooperation  programmes75  aim  to  develop  closer  and  sustainable 
links between civil society in Latin America and Europe. The year 2008 was one 
of  transition  for  the  regional  programmes,  with  new  activities  starting  in  2009. 
Nevertheless, 2008 did produce visible and positive impacts. Some examples of 
successful programmes are: 

EUROsociAL76  (EC  contribution  €31.3  million,  2005-2009):  this  programme 
aims  to  increase  social  cohesion  in  Latin  America  by  promoting  reforms  and 
improved  management  of  public  policies  through  the  exchange  of  experiences 
with European public institutions. Up to November 2008, some 228 exchanges 
had  taken  place  in  the  five  key  areas  (education,  employment,  health,  taxation 
and  justice),  with  the  involvement  of  1  176  organisations  (862  from  Latin 
America and 314 from the EU) and 5 638 participants (4 708 Latin Americans 
and  930  Europeans).  These  activities  contributed,  amongst  other  things,  to  the 
passing of a law against feminicide and other forms of violence against women 
in  Guatemala  and  allowed 
launch  a 
comprehensive  reform  process  in  the  field  of  fiscal  policy  by  encouraging 
voluntary fulfilment of fiscal duties while protecting citizens’ rights. 

the  government  of  Paraguay 

to 

Alßan77  (Programme  for  Higher  Education  and  Training  Scholarships  in  the 
European  Union  for  Latin  American  citizens:  EC  contribution  €88.5  million, 
2002-2010).  This  programme  awarded  3  319  grants  to  nationals  of  the  18 
participating Latin American countries to obtain masters, doctorates or advanced 
specialisation  training  in  17  EU  countries.  At  the  end  of  2008,  a  total  of  677 
students  from  Latin  America  were  still  involved  in  academic  projects  with  the 
support of Alßan. 

This  will  be  complemented  by  a  new  €41.6  million  programme  within  the 
framework  of  the  Erasmus  Mundus  External  Cooperation  Window  which  will 
promote  partnerships  and  exchanges  between  European  and  Latin  American 
higher education institutions as well as a mobility scheme.  

AL-INVEST  III78  (EU-Latin  America  Trade  and  Investment  Promotion 
Programme:  EC  contribution  €42.9  million,  2003-2007).  This  is  an  economic 
cooperation  programme  to  help  create  cross-border  links  for  SMEs  in  Latin 
America,  in  collaboration  with  European  business  associations  in  order  to 

75 
76 
77 
78 

http://ec.europa.eu/europeaid/where/latin-america/regional-cooperation/index_en.htm  
http://ec.europa.eu/europeaid/where/latin-america/regional-cooperation/eurosocial/index_en.htm  
http://ec.europa.eu/europeaid/where/latin-america/regional-cooperation/alban/index_en.htm  
http://ec.europa.eu/europeaid/where/latin-america/regional-cooperation/al-invest/index_en.htm  

EN 

110 

   EN 

 
                                                 
reinforce  social  cohesion  in  the  region.  AL-INVEST  III  ended  in  June  2008. 
Throughout its 15-year life from 1993 to 2008, the programme received a total 
of €144 million from the Commission, and generated over €500 million worth of 
intra-regional trade and investment, representing a return on spent public funds 
of  about  3  to  1.  The  calls  for  proposals  and  calls  for  tenders  for  the  follow-on 
programme AL-INVEST IV were published  in  spring 2008 and  contracts for a 
total amount of €50 million were signed by the end of 2008. 

The objectives of the programme @LIS79 - Alliance for the Information Society 
(EC  contribution  €63.5  million)  are  to  establish  cooperation  on  policy  and 
regulatory  frameworks  in  key  areas  and  to  boost  interconnections  between 
research  networks  and  communities  in  Europe  and  in  Latin  America  hence 
reducing  the  digital  divide  and  integrating  Latin  America  into  a  global 
information  society.  Five  horizontal  actions  and  19  demonstration  projects  (in 
sectors  like  e-education,  e-inclusion,  e-governance  and  e-health)  have  been 
launched  involving  more  than  220  stakeholders  in  both  regions.  In  the  health 
sector,  the  projects  T@lemed  and  EHAS  have  developed  a  telemedicine 
application  for  medically  underserved  and  remote  regions  in  Brazil,  Colombia, 
Cuba  and  Peru.  In  the  education  sector,  the  INTEGRA  project  has  integrated 
new information and communication technologies in 150 secondary schools and 
220  primary  schools  in  Argentina,  Chile  and  Uruguay,  developing  and 
promoting interconnectivity in the region. A second phase of @LIS was adopted 
in October 2008, with an EC contribution of €22 million. 

The  EURO-SOLAR80  programme,  with  an  increased  EC  contribution  of  €28.7 
million, aims to enable remote rural communities without access to electricity in 
eight  countries  (Bolivia,  Ecuador,  El  Salvador,  Guatemala,  Honduras, 
Nicaragua,  Paraguay  and  Peru)  to  benefit  from  renewable  electric  energy.  In 
2008, preparatory activities were carried out, such as the selection of 600 rural 
communities,  as  well  as  the  selection  and  testing  of  electrification  equipment 
and  other  supplies  (photovoltaic  panels,  battery  chargers,  refrigerators,  a  water 
cleaning system, computers, etc) so as to install all the kits in 2009. 

A study facility in the field of climate change "EUroCLIMA" was approved in 
December  2008  with  a  total  budget  of  €630 000  (EC  contribution  €500 000). 
This  facility  aims  to  finance  studies  on  the  socio-economic  impact  of  climate 
change in Latin American countries. 

2.3.4.6.  Monitoring 

The figures in this section come from the Results Oriented Monitoring System 
which  evaluates  the  impact  of  development  projects.  For  more  on  the 
methodology, see Chapter 4. 

79 
80 

http://ec.europa.eu/europeaid/where/latin-america/regional-cooperation/alis/index_en.htm  
http://ec.europa.eu/europeaid/where/latin-america/regional-cooperation/euro-solar/index_en.htm  

EN 

111 

   EN 

 
                                                 
Figure 19: Performance of ongoing projects 

Sixteen  countries  were  visited  and  202  projects  monitored,  of  which  173  are 
ongoing  while  29  have  been  completed  and  were  monitored  ex  post.  A  large 
number  of  projects  (70%)  were  concentrated  in  eight  countries  (Colombia  25, 
Brazil  19,  Guatemala  16,  Peru  14,  Nicaragua  13,  Bolivia  12,  Honduras  12  and 
Ecuador 11). 

Of  the  173  ongoing  projects  monitored,  106  were  projects  with  an  EC 
contribution  of  more  than  €1  million  (100%  of  eligible  projects),  against  67 
projects  with  an  EC  contribution  of  less  than  €1  million  (38%  of  monitored 
projects).  The  average  financial  amount  is  €4.36  million,  although  this  figure 
varies  significantly.  In  addition  to  monitoring  reports  for  the  173  ongoing 
projects,  29  ex  post  monitoring  reports,  six  country  reports  (Guatemala  Brazil, 
Peru, Nicaragua, Colombia and Ecuador) and two sector reports (environmental 
and social cohesion) were produced.  

The  overall  average  score  of  2.81  (on  a  rising  scale  of  1  to  4)  reflects  a  very 
good  performance,  based  on  a  target  of  2.5,  which  means  that  projects  are  on 
track.  Projects  show  very  good  relevance  (2.80),  effectiveness  (2.81),  impact 
(2.86),  sustainability  (2.88)  and  good  efficiency  (2.68).  The  scores  for  the  five 
criteria were (a) very good 6%, (b) good 66%, (c) problems 26% and (d) serious 
deficiencies  1%.  Potential  sustainability  is  again  the  most  positively-assessed 
parameter  (79%),  whereas  efficiency  remains  the  weakest  (62%).  Both 
parameters have increased  compared to their 2007  scores. The  three  remaining 
criteria  –  quality  of  design,  effectiveness  and  impact  –  record  similar  scores 
(71%, 73% and 77% respectively) to 2007. Looking at results by ODA sectors, 
the trend is similar to that of 2006 and 2007. Social infrastructure and services 
are the most important sector in Latin America (representing 36.3% of the total 

EN 

112 

   EN 

 
 
portfolio  monitored  in  2008),  followed  by  multisector/cross-cutting  projects 
(30.8%)  and  the  production  sector  (16.9%).  In  terms  of  performance,  social 
infrastructure and services, score highest (78% with good or very good ratings), 
whereas economic infrastructure and service projects score poorly (57% of them 
with  problems).  The  12  commodity  aid  and  general  programme  assistance 
projects score relatively well also (75% rated as good or very good). The criteria 
with the best scores in all sectors are: relevance, impact prospects and potential 
sustainability.  This  year,  by  region,  the  Andean  Community  shows  the  best 
results with a score of 2.93. 

Of the 173 ongoing projects monitored in 2008, 35 were re-monitored (as done 
in 2006 and 2007), a 20% sample. The overall results show an improvement in 
the  average  scores  for  these  projects  ranging  from  2.68  to  2.72.  Of  particular 
note are the improvements recorded in efficiency, with a score increasing from 
2.44 to 2.66. 

Figure 20: performance per ODA sector  

2.3.4.7.  Results 

Currently more than €4 billion is committed in the Latin America region and its 
countries, financing more than 900 ongoing projects managed by governments, 
local  authorities,  non-state  actors,  NGOs  and  other  international  organisations 
and agencies. 

The  Commission  has  contributed  to  the  development  of  various  focal  sectors 
such  as  social  cohesion  where  various  programmes  have  encouraged 
governments  to  tackle  income  inequalities  within  the  population  by  offering 
training and education to underprivileged persons together with equal economic 
and  social  opportunities.  The  Commission  has  also  contributed  to  the  regional 
integration processes, encouraging governments to cooperate with each other in 
various sectors.  

EN 

113 

   EN 

 
 
2.3.4.8.  Prospects  

The  year  2009  will  be  a  challenging  one  for  cooperation  with  Latin  America. 
With  the  current  financial  and  economic  situation,  the  European  Commission 
will  have  to  ensure  the  continuity  of  its  commitment  and  performance  in  its 
assistance to the most vulnerable socio-economic groups of the Latin American 
population.  At  the  European  Union-Latin  America  and  Caribbean  Summit  in 
Lima, the parties reaffirmed their commitments to the reduction of poverty and 
inequalities and to actions on the environment, climate change and energy. In the 
coming  years,  more  effort  will  be  needed  to  tackle  those  issues  and  guarantee 
sustainable development in the region.  

The Commission will seek closer coordination with EU Member States as well 
as with other multilateral donors. On aid delivery methods, the Commission will 
strive  to  make  greater  use  of  budget  support,  when  and  where  the  appropriate 
conditions exist, in order to strengthen local ownership and support beneficiary 
countries' national policies, accountability and procedures. 

2.3.4.9.  Success stories 

Panama:  Incorporation  of  new  electrification  technologies  for  education 
and health in marginal areas (SOLEDUSA) 

Even though Panama is one of the richest countries in Latin America, it displays 
major  contradictions,  with  a  very  uneven  income  distribution  and  territorial 
disparities  between  the  various  provinces  of  the  country.  In  all,  40.5%  of  the 
population live in poverty. 

The SOLEDUSA project aims to overcome inequalities and improve rural living 
conditions  by  raising  the  quality  of  primary  education  and  health  services 
through  the  provision  of  renewable  electrical  energy  to  education  centres  and 
health  facilities.  The  project  provided  access  to  appropriate  technologies  and 
training processes. Of the 431 solar-based electrification systems installed, 333 
were  in  schools,  benefiting  35  500  pupils.  Another  97  went  to  health  centres, 
benefiting  the  whole  population  in  the  Veraguas  Province  while  one  was 
installed  at  the  University  of  Technology  of  Panama.  Furthermore,  audiovisual 
equipment and computers were installed in schools and health centres to support 
educational and health programmes. To ensure the sustainability of the project, 
342 committees in the different communities were created to promote the use of 
solar energy and ensure the maintenance of the equipment, and more than 3 000 
people were trained in schools and health centres. 

Colombia: Peace Laboratory in Magdelena Medio  

The  programme  started  in  2002  with  the  main  objective  of  establishing,  in  the 
Magdalena  Medio  Department,  a  'Peace  Laboratory'.  By  defending  the  basic 
human  rights  of  all  the  inhabitants  and  promoting  sustainable  human 

EN 

114 

   EN 

 
development,  the  laboratory  contributes  significantly  to  citizens'  peaceful 
coexistence  and  shows  effective  and  viable  ways  to  overcome  the  conflict  that 
can affect other regions of Colombia. Many other donors are also contributing to 
this programme that will end in 2010. 

The  programme  has  consolidated,  in  29  municipalities  in  the  south  of  the 
Departments  of  Bolívar,  Cesar,  Antioquia  and  Santander,  a  series  of 
participatory  processes  (about  84  000  direct  beneficiaries  participate  in  more 
than  300  projects)  on  sustainable  development,  civic  coexistence  and 
institutional  strengthening.  Over  the  years,  it  has  helped  indirectly  to  reduce 
levels  of  violence,  to  lower  the  number  of  kidnappings,  to  decrease  the 
production  of  coca.  As  a  result,  the  regional  aggregated  value  of  income  has 
increased. 

2.3.5. 

South Africa 

2.3.5.1.  Introduction 

The first ever EU-South Africa Summit took place in France in July 2008. It was 
an opportunity to discuss a wide range of subjects, including difficult ones such 
as  Zimbabwe,  in  a  constructive  atmosphere.  The  summit  confirmed  the  very 
good  relations  between  the  EU  and  South  Africa,  and  gave  new  impetus  to 
cooperation  and  dialogue  in  areas  like  the  environment,  energy,  transport  and 
migration.  It  took  place  in  the  framework  of  the  EU-South  Africa  strategic 
partnership,  and  the  action  plan  for  its  implementation  adopted  in  May  2007. 
The next summit is scheduled to take place in South Africa in the second half of 
2009  during  the  Swedish  EU  presidency.  The  Joint  Cooperation  Council  on  3-4 
November  further  reviewed  the  state  of  play  of  sectoral  policy  cooperation  with 
South  Africa,  opening  up  additional  new  areas  of  dialogue  such  as  on  space  and 
health. 

Also  in  2008  the  Council  of  the  European  Union  adopted  an  amendment  to  the 
Trade  Development  and  Cooperation  Agreement  that  the  Commission  had 
negotiated with South Africa in 2007. The changes primarily aim at strengthening 
the political dimension of the agreement.  

2.3.5.2.  Aid effectiveness and donor coordination 

To  move  towards  programming  of  joint  implementation,  six  donor  sector 
working groups have so far been set up in the areas of employment, HIV/AIDS, 
education,  governance,  regional  cooperation  plus  science  and  technology. 
Following  an  initial  phase  of  information  sharing,  joint  policy  dialogue  has 
started, leading to a more harmonised approach.  

EN 

115 

   EN 

 
2.3.5.3.  Working towards the MDGs 

South Africa already met some of the MDG targets, such as those on water and 
sanitation.  For  the  others  still  to  be  achieved,  the  country  is  well  on  track  to 
reach  them  by  2015.  The  biggest  challenges,  however,  remain  the  increasing 
income  disparity,  insufficient  economic  growth,  now  aggravated  by  recession, 
and the inability to create enough jobs. Furthermore, achieving MDGs 4, 5 and 6 
improving  maternal  health  and  combating 
(reducing 
HIV/AIDS), is proving difficult in the face  of  the  AIDS  pandemic.  To  address 
these challenges, South Africa is revising its poverty reduction strategy to focus 
more on creating economic opportunities and improving education. 

infant  mortality, 

2.3.5.4.  Regional cooperation and integration 

South  Africa  is  a  key  player  in  Africa  and  within  the  Southern  African 
Development  Community  (SADC).  With  75%  of  the  total  GNP  of  SADC,  it 
clearly represents the economic hub of the region. South Africa is committed to 
creating  a  SADC  common  market  by  2012,  and  to  achieving  other  regional 
priorities  such  as  trade  promotion,  improved  education,  regional  energy  pools, 
common  approaches  to  HIV/AIDS  as  well  as  security  and  peacekeeping.  The 
country  is  also  one  of  the  driving  forces  behind  the  efforts  to  strengthen  the 
African  Union  and  its  structures  as  well  as  the  new  partnership  for  Africa’s 
development (NEPAD).  

The EC contributed €37.9 million to different regional cooperation programmes 
in 2008 addressing: 

–  Social cohesion and regional political and economic integration 
–  Peacekeeping and mediation 
–  Common strategies in confronting HIV/AIDS 
–  Promotion of scientific research, development and regional cooperation 
–  Support to the water sector 
–  Economic integration support. 

2.3.5.5.  Implementation 

Sectoral  budget  support  and  sectoral  policy  support  programmes  accounted  for 
more  than  90%  of  the  programmes  approved  in  2008.  In  total,  commitments 
worth €145 million were made. Four major new programmes were approved that 
complement  the  two  priority  areas  for  cooperation  with  South  Africa: 
employment creation and capacity-development for service delivery. 

The  first  programme  focuses  on  employment  creation  through  a  sector  policy 
budget  support  operation  of  €100  million.  Governance  is  the  object  of  two 
operations  for  a  total  amount  of  €40  million,  providing  support  to  the  South 
African legislatures (central and provincial parliaments) as well as civil society 
through  the  Department  of  Justice.  A  special  facility  of  €5  million  was 

EN 

116 

   EN 

 
established  to  develop  and  strengthen  EU-South  African  relations  beyond 
traditional  trade  exchanges  and  development  cooperation.  Moreover,  the  EC 
supported 17 projects in the field of water and sanitation, health and population, 
education and training as well as urban development.  

Support  for  the  education  and  training  sub-sector  was  provided  through  six 
projects  worth  €47.8  million  to  improve  teaching  and  learning  facilities,  to 
promote economic and social development and to address HIV/AIDS in higher 
education institutions. The improvement of teaching and learning facilities in the 
three  poorest  provinces  (Limpopo,  KwaZulu-Natal  and  Eastern  Cape)  through 
the schools’ infrastructure support programme will benefit up to 6 000 children 
who  will  get  access  to  additional  classrooms  and  sanitation  facilities.  The 
innovative  aspect  of  the  programme  is  the  provision  of  nutrition  centres  at 
schools  included  in  the  primary  school  nutrition  programme.  In  all,  12  500 
children will benefit from these facilities. 

2.3.5.6.  Monitoring 

The figures in this section come from the Results Oriented Monitoring System 
which  evaluates  the  impact  of  development  projects.  The  methodology  is 
described in a comprehensive way in Chapter 4. 

During the 2008 monitoring mission to South Africa, 10 projects with ongoing 
activities  were  monitored,  representing  a  total  budget  of  €131.8  million,  of 
which €126.1 million were financed from the South Africa budget line and €5.7 
million from thematic budget lines. One project of €1.2 million was monitored 
ex post.  

Projects with ongoing activities achieved good performance results as to design, 
effectiveness, impact prospects and potential sustainability. The poor scores for 
efficiency  are  the  biggest  concern.  Half  the  projects  visited  showed  no 
significant improvement in this performance criterion in recent years. Results of 
the ex post monitored project indicated a sight decline on design and impact in 
comparison  to  2007,  when  the  same  project  was  monitored  while  its  activities 
were still ongoing.  

The following graph provides an overview of the performance of projects with 
ongoing activities over the last three years. They are classified in four categories: 
I  for  projects  with  very  good  performance,  II  for  projects  with  good 
performance, III for projects performing with problems, and IV for projects with 
major  difficulties.  The  graph  shows  a  positive  trend  with  more  projects  in 
category II and fewer in categories III and IV in 2008. 

EN 

117 

   EN 

 
Figure 21: Performance of Ongoing Projects

100%

80%

60%

40%

20%

0%

58%

62%

80%

Category I

Category II

Category III

Category IV

21%

16%

23%

15%

20%

5%

0%

0%

0%

2006

2007

2008

2.3.5.7.  Results 

The  roll-out  of  the  first  and  second  phases  of  the  government's  water  and 
sanitation  programme  benefited  from  EC  support  of  €35  million  for  the  period 
2001-2006. The third water programme, to which the EC provides an additional 
allocation  of  €107  million  for  a  three-year  period  until  2010,  now  includes  the 
concept of water for growth and development. In the last year alone, more than 
1.6 million people got access to water and 380 000 households received access 
to basic sanitation.  

In the field of governance there are 12 programmes with a total EC commitment 
of  €108.7  million.  The  Cape  Town-based  Legislatures  Support  Programme 
created unprecedented momentum by facilitating initiatives and proposals within 
legislatures.  State-of-the-art  video  conferencing  facilities,  interlinking  national 
and provincial legislatures, are in use today and make a solid contribution to the 
efficiency and transparency of policy-making. The system will continue to assist 
law-making,  policy  development  and  oversight  as  well  as  increase  public 
participation. 

2.3.5.8.  Prospects  

In  the  development  of  new  programmes,  the  principles  of  innovation,  added 
value and capacity development remain crucial. The new governance and health 
sector  programmes  now  foresee  a  stronger  role  for  civil  society  both  as 
beneficiaries and implementation partners. The reduced number of programmes 
and alignment with the policy priorities of the government improved the overall 
efficiency of development cooperation with South Africa. So did  the enhanced 
coordination  with  other  European  donors  and  development  partners  as  well  as 

EN 

118 

   EN 

 
 
the alignment with local processes and procedures, in line with the principles of 
aid effectiveness. 

2.3.5.9.  Success stories 

The  expanded  programme  of  partnerships  for  health  and  HIV/AIDS  services 
provides  much-needed  support  to  the  healthcare  system.  It  is  considerably 
improving  access  and  affordability  of  primary  health  services  for  the  poorest 
communities  based  on  a  system  of  home-based  care.  Without  this  support  at 
community  level,  care  would  simply  not  be  available  or  would  create  another 
burden for the already overstretched clinic services. Instead, with the help of EC 
funding, 758 non-profit service provider organisations were contracted in 2008 
to provide primary health care services. A total of 10 700 care workers, mainly 
from disadvantaged backgrounds, have been appointed. Almost 500 000 patients 
were  taken  care  of.  The  quality  of  service  is  considered  very  high  and  is  well 
regarded by health professionals and care recipients alike. 

EN 

119 

   EN 

 
Figure 22 DCI Geographic - Breakdown by sector of external aid financed on the General Commission 
Budget managed by EuropeAid in 2008

Commitments ( € million )

74 M€, 5%

118 M€, 9%

34 M€, 2%

160 M€, 12%

88 M€, 6%

Payments ( € million )

280 M€, 25%

30 M€, 3%

140 M€, 12%

116 M€, 10%

74 M€, 7%

Bilateral and Multilateral ODA (EuropeAid only).

Social infrastructures: education, health,
water, government and civil society,
other 

Economic infrastructures and services:
transport, communications, energy, other
services

Production: agriculture, forestry and
fishing, industry, mining and
construction, trade and tourism

Multisector/crosscutting: environment,
other

895 M€, 66%

Budget support, food aid, food security

Others - including emergency
assistance, reconstruction relief

494 M€, 43%

Social infrastructures: education, health,
water, government and civil society,
other 
Economic infrastructures and services:
transport, communications, energy, other
services
Production: agriculture, forestry and
fishing, industry, mining and
construction, trade and tourism
Multisector/crosscutting: environment,
other

Budget support, food aid, food security

Others - including emergency
assistance, reconstruction relief

EN 

120 

   EN 

 
 
Figure 23 DCI Geographic - External aid financed on the General 
Commission Budget managed by EuropeAid.

€ million

2007

2008

Commitments

         1 362              1 371    

Payments

         1 279              1 137    

Bilateral and Multilateral flows (EuropeAid only).

Figure 24 DCI - General and sector budget support per country

Commitments 2008 (€ million)

Country

GBS / 
SBS

Sector

Decription

Total

Honduras

GBS General budget support

Budget support to the poverty reduction strategy

60.5

Laos
Vietnam

Bolivia

GBS General budget support
GBS General budget support

Second general budget support to Laos PDR
Poverty reduction support credit 7-9

SBS Water supply and sanitation

Sectoral support to the river basins national plan 

Ecuador

SBS Education

Support to the ten-year education plan 2006-2015

Ecuador

SBS Industry

India

SBS Education

Kyrgyzstan

SBS

Other social infrastructure and 
services

Paraguay

SBS Education

South Africa

SBS Government and civil society

South Africa

SBS Government and civil society

South Africa

SBS

Other social infrastructure and 
services

Support programme for a sustainable and 
equitable economic system
Sector policy support programme phase II for 
Sarva Shiksa Abhiyan (SSA)
Sector policy support programme - social 
protection and PFM
Education sector policy support programme in 
Paraguay
Access to justice and promotion of constitutionnal 
rights
Legislative sector policy support programme
Employment creation, sector policy support to the 
economic cluster programme of action

13
44

19

12

20

70

9

54

25

15

100

GBS : General Budget Support
SBS : Sector Budget Support

2.3.6.  Accompanying measures for Sugar Protocol countries 

The  EU  reformed  its  sugar  regime  in  2006,  leading  to  a  reduction  of  the  EU 
sugar price. Recognising the significant adjustment needs in ACP Sugar Protocol 
countries, the Commission took action to accompany the ACP sugar producers 
to adapt to the new market conditions via increased development assistance. The 
special assistance is provided through the so-called accompanying measures for 
Sugar Protocol countries affected by the reform of the EU sugar regime. These 
measures cover the period 2006-2013 and seek to support the adaptation process 
of 18 ACP Sugar Protocol countries. The legal basis for this specific support was 
adopted  in  2006,  with  significant  funding  envisaged  during  the  2007-2013 

EN 

121 

   EN 

 
 
 
financing  period  (€1.24  billion,  of  which  €670  million  for  2007-2010).  This 
budget  is  distributed  among  the  beneficiary  countries  according  to  their  needs, 
depending on the impact of the reform and the importance of the sugar sector in 
their  economies.  For  the  period  2007-2010,  the  Commission  allocated  on  an 
indicative basis81 49%, 42% and 9% of the budget to the concerned Caribbean, 
African and Pacific countries, respectively. 

EC assistance is country-specific, based on national adaptation strategies. It aims 
to strengthen the competitiveness of the sugar sector, where this is a sustainable 
option, to support the development of alternative economic activities, and/or to 
mitigate  broader  impacts,  in  particular  social  and  environmental.  The  EC 
assistance  strategy  adopted  in  2006  was  complemented  by  multi-annual 
indicative  programmes  for  2007-2010  and  annual  action  plans  in  conformity 
with the requirements of the Development Cooperation Instrument. 

In  2008,  the  implementation  of  the  2006  and  2007  financing  agreements 
proceeded, while new financing decisions for the 2008 budget were adopted for 
all  countries.  Average  commitment  levels  for  2006  and  2007  were  satisfactory 
(64%), although processes were considerably slower in countries where project 
support  was  the  chosen  method  of  disbursement.  Three  countries  where 
commitment levels had not reached 30% by 31 August 2008, will receive 30% 
less  of  their  indicative  2009  and  2010  allocations82.  These  funds  are  to  be 
distributed  among  beneficiary  countries,  which  met  the  required  commitment 
level, in relation to their indicative allocations. The progress in implementing the 
strategies will be assessed as part of the mid-term review to start in 2009. With 
regard  to  the  social,  economic  and  environmental  impacts,  it  is  too  early  to 
assess the progress. 

The  conclusion  of  Economic  Partnership  Agreements  (EPAs)  implies  a 
significant change in the EU-ACP trade regime for sugar. While upholding the 
commitment  to  duty-free  and  quota-free  access  for  Least  Developed  Country 
(LDC) sugar from 1 October 2009 under the Everything But Arms Initiative, the 
EC  provides  similar  access  to  ACP  sugar  under  EPAs  from  1  October  2009, 
subject to a specific safeguard clause for non-LDCs. For  2008-2009, zero-duty 
tariff  quotas,  additional  to  those  of  the  Sugar  Protocol  and  the  Everything  But 
Arms Initiative, have been granted to the countries having initialled an EPA as 
follows:  Caribbean  60  000  tonnes,  Pacific  30  000  tonnes,  eastern  and  southern 
Africa 75 000 tonnes, East African Community 15 000 tonnes and the Southern 
African  Development  Community  50  000  tonnes.  A  minimum  price  obligation 
for  importers  will  be  maintained  until  2012.  To  take  account  of  this  new  trade 
regime  between  the  EU  and  the  ACP,  the  EU  took  the  necessary  measures  in 
2007 to denounce the Sugar Protocol (in conformity with its Article 10), so that 
it terminates on 30 September 2009. 

81 
82 

Commission Decision C(2008) 4284 (amending C(2007) 1688). 
In accordance with Commission Decision C(2007) 1688. 

EN 

122 

   EN 

 
                                                 
The EU raw sugar reference price was cut by 5% in 2006-2007 and 2007-2008. 
As from 1 October 2008, the price cut was 14.3%. Reference prices of raw sugar 
were  set  at  496.8  €/t  (2006-2007  &  2007-2008);  448.8  €/t  in  2008-2009;  and 
335.2  €/t  as  from  2009-2010.  The  impact  of  the  EU  price  reductions  on  ACP 
economies, at this stage, has also to be seen in the context of the appreciation of 
the exchange rate of the euro against the dollar. 

2.3.7. 

Investing in people 

The  European  Commission  has  supported  social  sectors  (health,  education, 
employment,  social  protection)  through  various  measures.  Most  assistance  is 
deployed  through  bilateral  country  programmes,  where  the  preferred  means  is 
sector  support  funded  mainly  through  sectoral  or  general  budget  support  (see 
geographic  sections).  In  addition  to  this  bilateral  cooperation,  the  Commission 
has  committed  and  implemented  thematic  programmes  that  are  complementary 
to its action at the country level as highlighted below. 

Health 

Three of the eight MDGs are health-related (child mortality, maternal mortality, 
and  reversing  HIV/AIDS  and  other  poverty-related  diseases).  The  health  care 
systems  of  low-income  countries  make  an  important  contribution  to  their 
progress  towards  these  MDGs.  Beyond  the  bilateral  cooperation,  health  is  the 
object  of  worldwide  support  actions  that  are  frequently  implemented  in 
cooperation  with  UN  agencies,  particularly  the  WHO,  and  with  major 
international  partnerships  (as  in  the  case  of  vaccinations).  In  2008,  the 
Commission committed €76.4 million to health under this programme, of which 
€50 million went to the Global Fund on HIV/Aids, Malaria and Tuberculosis. A 
key  problem  of  these  disease-specific  funding  mechanisms  has  already  been 
addressed,  namely  that  their  effectiveness  depends  on  functioning  health-care 
systems. The Global Fund has opened the possibility for a broader strengthening 
of  health  systems,  going  beyond  the  narrow  scope  of  the  three  focal  poverty 
diseases.  However,  a  severe  shortage  of  health  workers  in  many  low-income 
countries  has  severely  constrained  the  provision  of  health  care  –  despite  the 
availability  of  effective  and  affordable  treatments  for  many  diseases.  An  EU 
programme for action on this matter was adopted in 2007, and a specific support 
programme has been developed in collaboration with the WHO and the Global 
Health Workforce Alliance. 

Improving young people’s sexual and reproductive health (SRHP) 

Tajikistan has a very young population: 70% are under 30 years of age. Young 
people  are  particularly  at  risk  from  sexually  transmitted  infections  given  their 
lack  of  knowledge  about  contraception  and  the  difficulties  they  face  when 
looking for information and help services and clinics. 

EN 

123 

   EN 

 
By  2009,  this  project  has  improved  the  sexual  and  reproductive  health  of  350 
000 young people aged 10 to 24, through: 

• better access to health services and information; 

• better education of young people in the area of sexual and reproductive health; 

•  the  updating  of  social  and  environmental  policy,  incorporating  support  for 
sexual and reproductive health. 

Eight quality clinics designed for young people have been set up and 30 signpost 
services  for  guidance,  assistance  and  availability  for  young  people  have  been 
created. Clinical staff as well as assistance and guidance staff have been trained 
in sexual and reproductive health. 

Education 

Complementary to the EC's bilateral cooperation to help achieve the MDGs for 
primary education and gender equality are contributions to key global initiatives 
in education through the Investing in People programme. In 2008, this had three 
components: €4.6 million for the Education For All Fast Track Initiative (FTI) 
Catalytic  Fund;  €1  million  for  the  FTI  Secretariat;  and  €4  million  for  the 
Education  in  Emergencies  and  Post-Crisis  Transition  Programme  through 
UNICEF. 

The  FTI  is  a  global  partnership  of  developing  countries,  donors  and  NGOs, 
which encourages the development of sound education sector strategic plans and 
the mobilisation of financial and other resources to support their implementation. 
There are two multi-donor trust funds, the Education Programme Development 
Fund  and  the  Catalytic  Fund.  The  EC  continued  its  support  for  the  Catalytic 
Fund,  which  in  2008  disbursed  over  $142  million  to  13  countries  on  four 
continents,  where  the  education  sector  plans  had  been  endorsed  and  the 
remaining financing gaps identified by the government and donors in-country. 

The Commission also joined efforts to extend the benefits of the FTI partnership 
to  countries  in  the  most  difficult  circumstances,  where  there  remain  many 
millions of children out of school, but where the government is not yet able to 
produce  plans  and  strategies  ready  for  full  FTI  endorsement.  The  2008 
contribution  to  the  Education  in  Emergencies  and  Post-Crisis  Transition 
Programme  is  reaching  children  in  post-conflict  and  'fragile'  states  and  helping 
to  develop  and  implement  basic  education  plans  in  several  countries  not  yet 
eligible for the FTI Catalytic Fund.  

Labour market, social protection and culture 

A  proportion  of  activities  in  2008  focused  on  support  to  capacity-building  and 
functioning of labour market and vocational training systems (TVET), as basic 

EN 

124 

   EN 

 
tools  for  promoting  decent  work.  Two  calls  for  proposals  were  prepared  for 
launch  in  early  2009.  The  first  one  (€6.7  million)  aims  at  supporting  relevant 
stakeholders (government agencies, public and private bodies, statistical offices, 
social partners) to improve the collection, production and analysis of quantitative 
and  qualitative  labour  market  information,  in  order  to  generate  more  reliable, 
timely and comparable labour market data for the design and implementation of 
targeted policies and services. The other call concerning demand-driven TVET 
(€5.8  million)  seeks  to  support  the  creation  of  a  structured  and  flexible 
methodology/dialogue  to  involve  the  demand  side  of  the  labour  market 
(enterprises) in planning and implementing TVET activities on the basis of the 
market's skill needs, so as to enhance the employability potential of vocational 
training  systems.  The  selected  areas  of  intervention  are  West  Africa,  the  south 
ENP (Maghreb) region and Latin America. 

An  EC  contribution  agreement  (€4  million)  is  trying  to  develop  and  spread  an 
integrated  social  approach  combining  social  protection  and  employment  in 
development cooperation, as a strategic pattern in poverty reduction and decent 
work policies. 

Other than these activities, the EC finalised two contribution agreements in 2008 
with the ILO (for €4 million and €3.3 million), for innovative actions for decent 
work. The first seeks to provide governments and social partners in low-income 
and  middle-income  countries  with  the  tools  and  the  capacity  to  monitor  trends 
and measure progress on decent work results over time and to apply high-quality 
policy  analysis.  The  second  aims  to  manage  labour  market  adjustment  to 
maximise the  benefits of  trade in  developing  countries,  specifically  to improve 
knowledge of the effects of trade policies on employment. 

Long recognising the importance of cultural cooperation to achieve sustainable 
development and eradicate poverty, the Commission took further steps in 2008. 
Under the thematic programme, the focus has been on access to local culture and 
the  protection  and  promotion  of  cultural  diversity.  The  programme  promotes 
inter-cultural dialogue, cultural diversity and respect for the equal dignity of all 
cultures.  This  includes  respect  for  the  social,  cultural  and  spiritual  values  of 
indigenous peoples and minorities to enhance equality and justice in multi-ethnic 
societies. The programme also addresses culture as a promising economic sector 
for  development  and  growth.  Its  major  objectives  are  to  improve  the  access  of 
local  populations  to  culture,  in  particular  through  the  strengthening  of  local 
capacities,  intercultural  dialogue,  the  setting  up  of  platforms  and  networks  to 
exchange  expertise  and  good  practices  and  through  the  promotion  of  public-
private partnership. 

A  first  call  for  proposals  (€4.3  million)  was  launched  in  December  2007  and 
generated  a  large  response  from  civil  society  organisations  and  other  relevant 
actors.  Throughout  2008,  these  proposals  were  evaluated  and  contracted.  The 

EN 

125 

   EN 

 
call for proposals under the 2008 budget (€7.3 million) was due for launch at the 
beginning of 2009. 

2.3.8.  Non-state actors and local authorities in development  

At  the  core  of  EU  development  policy  are  the  principles  of  ownership  and 
participation.  The  Commission,  through  its  thematic  programme  Non-State 
Actors and Local Authorities in Development, facilitates and promotes dialogue 
between  state  and  non-state  actors  on  development  priorities  and  strategies  in 
partner countries.  The programme's overarching objective is poverty reduction, 
including working towards the MDGs and other internationally agreed targets. It 
is an 'actor-oriented' programme aimed at capacity-building through support for 
initiatives  by  non-state  actors  and  local  authorities  in  both  the  EU  and  partner 
countries. 

As part of the multi-annual strategy (2007-2010) of the programme, the annual 
action programmes for 2007 and 2008 were adopted. These were prepared with 
the  involvement  of  the  key  stakeholders  in  the  Palermo  process,  the  Member 
States representatives, Members of the European Parliament, and representatives 
of civil society. 

This structured 'quadrilogue' with the Commission services enables all parties to 
create  the  conditions  for  more  efficient  aid  delivery,  and  improves  the  policy 
formation  process.  Concrete  results  were  achieved  in  simplifying  certain 
administrative procedures for the award of projects, taking on board suggestions 
made by development NGOs with regard to financial rules and procedures. On-
line  registration  of  potential  applicants  into  a  new  data  base,  PADOR,  has 
become compulsory for all calls for proposals covered by the 2008 annual action 
programme.  It  decreases  the  administrative  burden  for  applicants  and  provides 
the  Commission  with  a  tool  to  improve  knowledge  and  understanding  of  the 
needs of its implementation partners. 

The  award  of  projects  selected  under  the  calls  for  proposals  from  the  2007 
annual  action  programme  was  completed  at  the  end  of  2008.  The  Commission 
selected  385  projects  proposed  by  non-state  actors  from  the  EU  and  partner 
countries and 32 projects proposed by local authorities from the EU and partner 
countries,  reflecting  the  solidarity  of  the  European  taxpayer  with  the  most 
vulnerable populations in the world. The total value of the projects was €171.7 
million, of which €106.8 million went to projects selected under local calls for 
proposals  managed  by  Commission  Delegations  in  partner  countries  and  €64.9 
million  for  projects  selected  under  centralised  calls  for  proposals  managed  by 
EuropeAid. 

2.3.9.  Migration and asylum 

In 2008, the Commission continued to expand its actions in the area of migration 
and  asylum,  within  the  context  of  the  global  approach  to  migration  both  under 

EN 

126 

   EN 

 
geographic  instruments  and  the  thematic  programme.  The  global  approach 
covers  all  aspects  of  migration,  such  as  the  links  between  migration  and 
development,  legal  migration  management,  and  the  fight  against  illegal 
migration, including re-admission. It also deals with more horizontal issues, such 
as protection of migrants and promoting asylum and refugee protection. 

Under the thematic programme for migration and asylum a call for proposals for 
a  total  amount  of  €62  million,  was  launched  in  December  2007,  with  an 
emphasis on specific migratory routes: south (sub-Saharan Africa and southern 
Mediterranean)  €27  million;  east  (eastern  Europe,  south  Caucasus  and  Central 
Asia)  €21  million;  Middle  East  and  Gulf  countries  €1.96  million;  Asia  €6 
million;  Latin  America  and  the  Caribbean  €6  million.  The  evaluation  of  the 
proposals  resulted  in  54  projects  being  approved  for  funding.  In  addition,  six 
global or multi-regional initiatives and two 'special measures' projects have also 
been funded. 

Under  an  EC-UNDP  joint  initiative,  with  funding  of  €15  million,  a  call  for 
proposals  addressed  to  local  governments  and  civil  society  groups  in  16  target 
countries was launched in December 2008. The aim is to create positive linkages 
between  the  phenomenon  of  migration  and  development  in  countries  of 
migration origin, destination or transit. 

Several important and innovative initiatives were taken. The Commission joined 
forces  with  a  number  of  Member  States  and  established  the  first-ever  pilot 
mobility  partnerships  with  Moldova  and  Cap  Verde  in  June  2008.  Another 
important event was the opening of the Migration Management and Information 
Centre in Mali, in October 2008. The Commission also co-organised a workshop 
on circular migration in Mauritius in September. 

In  June,  the  Commission  adopted  its  policy  plan  on  asylum,  highlighting  the 
importance  of  solidarity  with  third  countries  affected  by  refugee  flows,  and 
proposed  an  increase  in  resettlement  and  the  improvement  and  expansion  of 
existing regional protection programmes. Resettlement can alleviate the burden 
on  third  countries  of  hosting  large  refugee  populations  by  allowing  the 
establishment of some of those refugees in the EU. 

Following  the  Commission’s  Communication  of  June  2008  “A  Common 
Immigration  Policy  for  Europe:  Principles,  actions  and  tools"83,  the  European 
Pact on Immigration and Asylum was adopted by the European Council of 15-16 
October  2008.  The  Pact  reaffirmed  the  place  of  migration  in  the  external 
relations  of  the  European  Union  as  well  as  the  importance  of  the  balance 
between the external and internal aspects of migration policy. 

83 

COM(2008)359 of 17.06.2008 

EN 

127 

   EN 

 
                                                 
The Council Conclusions  adopted in December  reaffirmed the global approach 
to migration as the policy framework for EU relations with third countries in the 
area of migration and asylum whilst underlining the importance of coordinated 
implementation  of  the  tools  contained  in  the  global  approach,  ensuring  the 
promotion of synergies. 

The Commission also played an active role in the policy dialogue on migration 
and asylum issues in various international and regional fora and events such as 
the  Global  Forum  on  International  Migration  and  Development,  which  took 
place  in  Manila  in  October  2008.  In  November  2008,  the  second  Ministerial 
Conference  on  Migration  and  Development,  in  Paris,  focused  on  cooperation 
along  the  western  migratory  route.  Concrete  work  has  also  started  on  the 
partnership  on  migration,  mobility  and  employment  of  the  Lisbon  Action  Plan 
adopted in December 2007. The Africa-EU informal joint expert group met for 
the  first  time  in  December  2008.  The  dialogue  on  migration  issues  also 
continued  with  other  regions  of  the  world,  including  Latin  America  and  the 
Caribbean,  Asia  (in  the  context  of  ASEM),  as  well  as  bilaterally  with  Russia, 
India,  Ukraine,  and  other  countries  in  the  western  Balkans  and  in  the 
Mediterranean region. 

2.3.10.  Environment and sustainable management of natural resources including energy 

Support  for  the  environment  and  the  sustainable  management  of  natural 
resources is one of the main priorities of EC development cooperation. 

The  Development  Cooperation  Instrument  makes  provision  for  a  thematic 
programme  for  the  environment  and  the  sustainable  management  of  natural 
resources including energy (ENRTP). A total budget of €889.5 million has been 
foreseen to support this thematic programme from 2007 to 2013. 

In the first programming period 2007-2010, the corresponding thematic strategy 
paper has five priorities constituting the core of the programme with a budget of 
€469.7 million:  

(a) 

(b) 

(c) 

(d) 

(e) 

to work upstream in assisting developing countries to achieve MDG 7 on 
environmental sustainability;  
to  promote  the  implementation  of  EU  initiatives  and  help  developing 
countries to meet internationally-agreed environmental commitments;  
to  promote  coherence  between  environmental  and  other  policies  and 
enhance environmental expertise;  
to  strengthen 
development;  
to support sustainable energy options in partner countries. 

international  environmental  governance  and  policy 

Based on this strategy paper, the 2008 annual action programme was adopted by 
the  Commission  in  August  2008  with  a  budget  of  €101  million.  It  focuses  on 
major environmental issues, such as climate change, desertification, biodiversity, 
and  forest  preservation  (including  FLEGT,  the  EU  Forest  Law  Enforcement, 

EN 

128 

   EN 

 
Governance and Trade initiative). Support for the developing countries' capacity 
to implement multilateral environmental agreements also continued. 

The  GCCA  (Global  Climate  Change  Alliance)  received  an  allocation  of  €15.5 
million, to support poor developing countries most vulnerable to climate change, 
in particular the least developed countries and small island developing states, in 
their efforts to adapt to the effects of climate change. Four countries will benefit 
from  the  2008  GCCA  initiative:  Vanuatu,  Tanzania,  Maldives  and  Cambodia. 
Furthermore, a facility is under preparation to provide support, hold events and 
conduct analyses and studies. 

In the context of the EU's overall energy policy objectives, support to the Global 
Energy Efficiency and Renewable Energy Fund (GEEREF) was continued, with 
an allocation of €20 million in 2008. The objective of GEEREF is to pool public 
and  private  funds  through  an  innovative  public-private  partnership  in  order  to 
offer new risk sharing and co-funding options for various investors in the areas 
of energy efficiency and renewable energy. Follow-up activities in the context of 
the EU energy initiative were also financed.  

ENRTP  provided  just  under  €7  million  to  support  a  number  of  activities  to 
improve  international  environmental  governance,  particularly  conventions  that 
are  directly  relevant  for  developing  countries.  These  included  multilateral 
environmental agreements in the area of trade in protected species, biodiversity, 
climate change, chemicals and water. The ENRTP complements environmental 
activities  planned  and  implemented  under  other  programmes.  In  the  area  of 
sustainable  production  and  consumption  for  instance,  the  SWITCH-Asia 
programme  supports  green  growth  and  the  development  of  environmental 
technology through an overall allocation of €100 million. Fifteen projects have 
been funded for a total budget of €23 million following a first call of proposals. 
The projects cover a wide range of issues such as greening production of local 
and  export-oriented  products,  sustainable  procurement, 
improved  energy 
efficiency  and  energy  savings.  A  network  facility  has  also  been  established, 
which  will  ensure  dissemination  and  replication  of  project  results  and  lessons 
learned within the broader national and regional political context for sustainable 
consumption and production. 

Sustainable production and consumption are also addressed under the European 
Neighbourhood Policy Instrument (€6.5 million for ENPI East), with a view to 
reducing the environmental and health hazards from inappropriate management 
of waste. Through improved waste governance, more sustainable production and 
consumption patterns at regional and national levels will be attained. 

EN 

129 

   EN 

 
2.3.11.  Food security 

In line with the food security thematic programme strategy paper,84research and 
technology support played a dominant role in the 2008 annual action plan. €81.5 
million  was  allocated  for  agricultural  research  for  development  projects,  of 
which  the  largest  share  supported  the  Consultative  Group  on  International 
Agricultural  Research.  An  amount  of  €48.4  million  was  committed  to  support 
LRRD  –  linking  relief,  rehabilitation  and  development  in  the  following 
countries:  Chad, 
Sudan,  Zimbabwe,  Timor-Leste,  North  Korea, 
Burma/Myanmar  and  Afghanistan.  This  activity  foresees  the  integration  of 
refugees  through  improved  access  to  food,  as  well  as  the  intensification  of 
agricultural activities and measures to protect livelihoods. Other areas funded by 
this thematic programme include food security information systems for strategy 
development  (€11  million),  support  to  the  Comprehensive  Africa  Agricultural 
Development  Programme 
farmers' 
organisations  (€5  million),  as  well  as  advocacy  and  policy  support  (€7.3 
million), mainly through civil society networking. 

(€5  million), 

to  African 

regional 

An amount of €50 million was reallocated within the 2008 food security budget 
to  respond  to  rising  food  prices  in  12  countries  selected  on  the  basis  of  urgent 
needs  (Afghanistan,  Democratic  Republic  of  Congo,  Eritrea,  Guinea,  Haiti, 
Honduras, Kyrgyzstan, Liberia, Nicaragua, occupied Palestinian territory, Sierra 
Leone, and Yemen). The objectives were twofold: reducing the negative effects 
of  high  food  prices  on  the  poorest  consumers  through  cash  transfers  and 
ensuring  a  positive  supply  response  from  farmers  thanks  to  market-based  and 
production-support measures. 

This  initiative  is  complementary  to  the  €1  billion  food  facility  which  was 
adopted  on  16  December  2008  and  for  which  actions  were  prepared  for  early 
adoption in 2009. A further €363 million was made available for humanitarian 
aid. 

84 

C/2007/1924 of 26.04.2007 

EN 

130 

   EN 

 
                                                 
Figure 25 DCI Thematic - Breakdown by sector of external aid financed on the General Commission 
Budget managed by EuropeAid in 2008

Commitments ( € million )

66 M€, 7%

235 M€, 25%

217 M€, 23%

40 M€, 4%

143 M€, 15%

250 M€, 26%

Payments ( € million )

69 M€, 8%

266 M€, 32%

278 M€, 34%

51 M€, 6%

132 M€, 16%

33 M€, 4%

Bilateral and Multilateral ODA (EuropeAid only).

Social infrastructures: education, health,
water, government and civil society,
other 

Economic infrastructures and services:
transport, communications, energy, other
services

Production: agriculture, forestry and
fishing, industry, mining and
construction, trade and tourism

Multisector/crosscutting: environment,
other

Budget support, food aid, food security

Others - including emergency
assistance, reconstruction relief

Social infrastructures: education, health,
water, government and civil society,
other 
Economic infrastructures and services:
transport, communications, energy, other
services
Production: agriculture, forestry and
fishing, industry, mining and
construction, trade and tourism
Multisector/crosscutting: environment,
other

Budget support, food aid, food security

Others - including emergency
assistance, reconstruction relief

EN 

131 

   EN 

 
 
Figure 26 DCI Thematic - External aid financed on the General 
Commission Budget managed by EuropeAid.

€ million

2007

2008

Commitments

            834                 956    

Payments

            745                 838    

Bilateral and Multilateral flows (EuropeAid only).

Figure 27 DCI Thematic - General and sector budget support per country

Commitments 2008 (€ million)

Country

GBS / 
SBS

Sector

Decription

Total

Jamaica

GBS General budget support

St Kitts and 
Nevis

GBS General budget support

Mauritius

SBS Agriculture

Barbados

SBS Banking and financial services

Guyana

SBS Agriculture

Jamaica

SBS Agriculture

Debt reduction and growth enhancement 
programme (DRGEP)
Accompanying measures 2008 for sugar protocol 
countries for St.Kitts & Nevis
Improved competitveness for equitable 
development II
International business & financial services - sector 
budget support
Guyana annual action pgrogramme 2008 on 
accompanying measures for sugar
Accompanying measures 2008 for sugar protocol 
countries Jamaica sector budget support 
component 

         9.00    

         9.43    

       32.32    

       10.13    

       24.37    

         9.00    

Trinidad and 
Tobago

SBS Agriculture

T&T annual action plan 2008 under AMSP

         9.97    

GBS : General Budget Support
SBS : Sector Budget Support

2.4. 

Democracy and human rights 

The  European  Instrument  for  Democracy  and  Human  Rights  (EIDHR) 
contributes to the development of democracy, the rule of law, respect for human 
rights and fundamental freedoms. 

The universality and indivisibility of human rights, the responsibility to defend 
them throughout the world, the promotion of pluralistic democracy, support for 
civil society and effective guarantee for the rule of law are essential principles 
for the European Union. 

On December 10, 2008, on the occasion of the 60th anniversary of the Universal 
Declaration  of  Human  Rights,  the  EU  acknowledged  the  achievements  to  date 
while deploring the continuing violations of human rights in many parts of the 
world.  The  EU  re-emphasised  that  the  international  community  and  all  states 
have  the  legitimate  and  permanent  responsibility  to  promote  and  safeguard 

EN 

132 

   EN 

 
 
 
human  rights  throughout  the  world.  The  EU  reiterated  its  full  support  for 
international  human  rights  mechanisms  at  the  global  and  regional  level, 
reaffirming its commitment and determination to make the full attainment of all 
human rights a reality for all. 

In promoting human rights and democracy worldwide, the EC is using a whole 
range  of  approaches,  from  political  dialogue  and  diplomatic  initiatives  to 
specific  instruments  of  financial  and  technical  cooperation,  such  as  the 
the  European  Neighbourhood 
Development  Cooperation 
Partnership  Instrument,  the  Instrument  for  pre-Accession,  the  European 
Development  Fund  for  the  ACP  countries,  the  Instrument  for  Stability,  and  the 
European Instrument for Democracy and Human Rights.  

Instrument, 

The  EU  therefore  provides  support  to  a  wide  variety  of  activities  including 
legislative and administrative reforms, capacity and institution building for key 
human rights institutions and actors, training and education programmes, as well 
as  awareness  raising  and  networking  activities.  Attention  was  paid  in  2008  to 
improving  the  design  and  the  impact  of  EC-managed  external  assistance 
programmes by ensuring coherence and synergy between the geographic (ENPI, 
DCI and EDF) and thematic (EIDHR) instruments. Geographic instruments are 
mainly used for an approach focusing on institution-building and the support of 
domestic  processes  aiming  at  consolidating  human  rights  and  democratic 
governance through a multi-action approach. 

The European Instrument for Democracy and Human Rights (EIDHR) 

As  the  main  thematic  instrument,  the  EIDHR  is  the  concrete  expression  of  the 
importance  the  EU  gives  to  this  policy.  One  of  its  key  assets  is  its  autonomy, 
which enables it to grant aid even where there are no development cooperation 
links.  Even  more  crucially,  it  can  intervene  without  the  agreement  of  the 
governments of third countries. Its main beneficiaries are groups and individuals 
who  are  struggling  for  democracy,  human  rights  and  fundamental  freedoms 
within civil society. 

In 2008, six global calls for proposals were launched with a total budget of €57.6 
million:  

–  €20  million  for  projects  aimed  at  enhancing  respect  for  human  rights  and 
fundamental freedoms in countries and regions where they are most at risk; 

–  €24  million  for  transnational  projects  to  strengthen  the  role  of  democratic 
reform  in  facilitating  the  peaceful  conciliation  of  group  interests  and  in 
consolidating political participation and representation;  

–  €13.6  million  for  projects  aimed  at  supporting  actions  on  human  rights  and 
democracy issues in areas covered by the EU guidelines: children and armed 

EN 

133 

   EN 

 
conflict,  the  promotion  and  protection  of  the  rights  of  the  child,  the  death 
penalty, torture, human rights dialogues, and also human rights defenders.  

–  In 72 countries, Commission Delegations launched local call for proposals to 
be  implemented  from  2008  onwards,  for  an  indicative  amount  of  €46.2 
million. Even though civil society is facing increasing difficulties to operate 
worldwide,  an  effort  has  been  made  to  increase  by  50%  the  number  of 
countries covered by these local calls for proposals as compared to 2007, as 
well  as  the  funding  for  locally-operated  projects.  The  difficulties  faced  by 
civil  society  are  not  only  linked  to  repressive  environments  but  also  to 
increasing legal obstacles. 

–  Strategic  partnerships  were  aimed  at  supporting  and  strengthening  the 
international  and  regional  framework  for  the  protection  of  human  rights, 
justice, the rule of law and the promotion of democracy. €11.6 million were 
allocated  for  nine  targeted  actions  with  strategic  partners  including  in 
particular  an  annual  contribution  to  the  operations  of  the  Office  of  the  UN 
High Commissioner for Human Rights. 

Another  379  new  projects  were  funded  worldwide  in  2008.  Some  are  being 
carried out in countries and regions where human rights are most at risk. Others 
address  the  themes  covered  by  EU  guidelines  on  torture  and  on  human  rights 
defenders.  They  also  provide  support  for  the  effective  functioning  of  the 
International  Criminal  Court  in  its  formative  years  and  the  regional  Master's 
Degree Programmes in Human Rights. An evaluation of EC support to Torture 
Rehabilitation Centres was launched in 2007 and its results were made available 
during 2008. Two more evaluations carried out during 2008 were the Evaluation 
of  EIDHR  Programme  in  Russia  (2008),  covering  15  projects  managed  by  the 
EC  Delegation  to  Russia,  and  the  evaluation  of  the  EIDHR  support  to  the 
International  Criminal  Court,  whose  results  were  to  be  available  at  the 
beginning of 200985.  

A special effort was put into communication and visibility actions by the EIDHR 
to make EU support for democracy and human rights better known worldwide. 
This  was  done  to  mark  the  60th  anniversary  of  the  Universal  Declaration  of 
Human Rights and involved an information and communication campaign on the 
actions  funded  by  the  EC  in  the  fight  against  torture  and  other  forms  of  ill-
inter-institutional 
treatment.  Other  elements 
conference with the European Parliament and the United Nations on Sixty years 
of  the  Universal  Declaration  of  Human  Rights  –  the  Defenders  take  the  floor, 
and  funding  for  a  film  consisting  of  contributions  from  more  than  20  well-
known  film-makers  and  artists,  produced  by  the  Office  of  the  UN  High 
Commissioner for Human Rights in partnership with ART for the World. 

the  campaign  were 

the 

in 

85 

EN 

reports 

All 
http://ec.europa.eu/europeaid/where/worldwide/eidhr/working-documents_en.htm  

the  EuropeAid 

-  EIDHR 

published 

internet 

are 

in 

pages 

at: 

134 

   EN 

 
                                                 
Fighting against impunity and preventing torture 

In  Argentina,  Chile,  Brazil  and  Uruguay,  many  individuals  continue  to 
experience serious psychological problems caused by violations of human rights. 
An  ongoing  project  provides  psychological  and  medical  assistance  to  those 
suffering  from  psychological  or  physical  scars  resulting  from  human  rights 
violations, and to facilitate their return to normal life. So far, 1 681 individuals 
have  benefited  from  medical  treatment  and  help  towards  rehabilitation.  Thirty-
two  legislative  acts  were  adopted  in  favour  of  human  rights.  In  all,  150 
initiatives  were  put  in  place  to  enhance  the  skills  of  the  medical  personnel  in 
four torture prevention and rehabilitation centres. 

Support for civil society, parliament, justice and rule of law 

The  Commission  considers  civil  society  as  a  major  actor  in  the  promotion  and 
defence of democracy and human rights. 

Civil society support is included in a number of EC geographic programmes as 
part of governance reform processes. This support covers advocacy, information 
and education on human rights and democracy issues. It is also aimed at building 
the  capacity  of  civil  society  organisations.  Support  has  gone  to  domestic 
observation  of  elections,  voter  and  civic  education  campaigns  (with  a  special 
focus  on  the  participation  of  women,  minorities  or  disadvantaged  groups),  as 
well as projects assisting civil society and media to monitor the activities of and 
interact with parliaments and public authorities. A special emphasis in 2008 was 
put on the link between support for civil society and justice and the rule of law. 
A  'Support  for  the  rule  of  law'  sector  programme  (€16  million)  focusing  on 
criminal  justice  was  recently  approved  for  Georgia,  following  extensive 
consultation with civil society, and will be implemented via budget support. 

In South Africa, the justice sector programme is based on two pillars. Firstly, the 
institutional  support  for 
the  Department  of  Justice  and  Constitutional 
Department (€20 million), implemented through budget support, will encourage 
partnerships  with  civil  society  on  access  to  justice  for  vulnerable  and 
marginalised groups. Secondly, a parallel series of activities (€4.5 million) will 
support  the  independent  capacity  of  action  of  specialised  civil  society 
organisations in advocacy, lobbying, capacity-building and policy dialogue with 
government and institutions.  

The  essential  role  of  democratically-elected  citizen's  representatives 
in 
strengthening both democratic legitimacy and the effectiveness of governance in 
their  countries  is  clearly  acknowledged  by  the  Commission.  Strengthening 
parliaments is seen as a means to improve the overall effectiveness and impact 
of  development  assistance,  especially  as  EC  assistance  moves  increasingly 
towards a sectoral approach and budgetary support. 

EN 

135 

   EN 

 
of 

components 

EC  support  for  parliaments  can  be  at  national  level,  with  dedicated  projects  or 
consist 
at 
regional/continental/global levels. In 2008, new projects included strengthening 
the parliamentary system and networking with public authorities in Uzbekistan 
(€2  million),  a  legislative  sector  policy  support  programme  for  South  Africa 
(€15 million), and ACP participation in Joint Parliamentary Assembly meetings 
(€10 million). 

project/programmes 

wider 

of 

Activities  targeting  civil  society  and  the  media  are  also  used  to  improve 
interaction  with  parliaments,  political  participation  of  women  and  minority 
groups  as  well  as  to  raise  awareness  on  the  importance  of  parliaments  as  key 
democratic institutions. 

Strengthening  of  the  role  of  parliaments  in  areas  like  public  accountability, 
financial  transparency  and  ultimately  democratic  governance  is  an  important 
aspect. Within the context of budget support, the diagnosis of the public finance 
management  framework  is  conducted  using  a  set  of  performance  indicators 
covering the legislative scrutiny of the annual budget law and of external audit 
reports. In 2008 a contract was signed for a wide study to start in early 2009, to 
provide  Commission  staff  with  a  stocktaking  and  analysis  of  the  strategies, 
approaches, 
to  strengthen 
parliaments in the ACP countries.  

instruments,  methods  and 

interventions  used 

Electoral support  

Particularly  important  in  the  strategy  to  promote  democracy  is  support  for  the 
electoral  process.  This  is  provided  in  two  main  ways.  The  first  is  electoral 
assistance  with  legal,  technical  and  logistic  support  aimed  at  strengthening 
national capacities to conduct peaceful and well-organised elections in an open, 
competitive and transparent process. The second is electoral observation via the 
deployment of EU election observation missions, to enhance public confidence 
in the electoral process and deter fraud, strengthen respect for human rights, and 
contribute to the prevention and resolution of conflicts.  

Electoral assistance 

Effective  electoral  assistance  supports  electoral  processes  while  integrating 
interventions  into  a  wider  context  of  democratic  governance.  This  strategy 
adheres  to  the  principles  of  the  Paris  Declaration  on  ownership,  alignment, 
harmonisation,  managing  for  results  and  mutual  accountability.  Based  on  the 
experience  of  joint  training  on  effective  electoral  assistance,  the  Commission 
together  with  UNDP  has  created  within  the  Joint  Donors’  Competence 
Development  Network  (Train4Dev),  a  Global  Training  Platform  on  Effective 
Electoral Assistance. The first meeting of interested organisations took place in 
Brussels  in  January  2008.  A  subgroup  was  established  in  March  with  the 
participation of the European Commission, UNDP, the International Institute for 
Democracy  and  Electoral  Assistance  (IDEA),  the  Canadian  International 

EN 

136 

   EN 

 
Development Agency (CIDA) and the International Organisation for Migration 
(IOM). The Organisation of American States (OAS) joined in September 2008. 

and 

started 

formulated 

The  European  Commission 
the 
identified, 
implementation of 21 electoral assistance programmes/projects in the following 
countries  in  2008:  Maldives,  Belarus,  Benin,  Ethiopia,  Niger,  Fiji,  Georgia, 
Guinea-Bissau,  Ivory  Coast,  Angola,  Zimbabwe,  Nicaragua,  Uganda,  Ukraine, 
Yemen,  Zambia  and  Lebanon.  The  amount  involved,  more  than  €66  million, 
came  from  the  following  financial  instruments:  EDF,  ENP,  DCI,  EIDHR  and 
IfS.  The  development  of  methodological  tools  and  the  coordination  and 
cooperation  with  the  main  actors  in  the  field  continues  to  be  a  priority.  The 
Commission's  Methodological  Guide  on  Electoral  Assistance  has  been  further 
put  into  practice.  A  Study  on  the  use  of  ICT  in  electoral  processes  has  been 
launched. An updated version of the training manual for the Commission/UNDP 
CIDA,  IOM  OAS  Joint  Training  on  Effective  Electoral  Assistance86  was 
produced.  Two  training  seminars  were  held  in  2008  in  Maputo  and  Brussels. 
These seminars brought together more than 150 participants including European 
Commission  and  UNDP  staff  as  well  as  representatives  from  electoral 
management  bodies  and  government  institutions,  and  staff  from  bilateral 
development agencies, international and regional organisations.  

European Union Election Observation Missions (EU EOMs) 

In  2008,  European  Union  election  observation  missions  were  deployed  to  10 
countries.  Legislative  elections  were  observed  in  Pakistan,  Bhutan,  Nepal 
(Constituent  Assembly),  Cambodia,  Angola,  Rwanda,  Guinea-Bissau,  Ghana 
(including two rounds of presidential elections) and Bangladesh. In Ecuador, the 
constitutional  referendum  was  also  observed.  By  their  very  presence,  the  EU 
EOMs contributed to deterring fraud by reducing the possibility of intimidation 
and  manipulation,  as  well  as  to  improving  public  confidence  in  the  electoral 
process, and facilitating acceptance of results. 

In  addition,  small-scale  election  expert  missions  were  deployed  to:  Zambia 
(general  elections);  Maldives  (presidential  elections);  Côte  d’Ivoire  (voter 
registration)  and  Nicaragua  (local  elections).  See  the  Feature  Article  on  EU 
Election Observation in Chapter 3 of this document for more details. 

86 

For further information: www.ec-undp-electoralassistance.org 

EN 

137 

   EN 

 
                                                 
Figure 28 EIDHR - Breakdown by sector of external aid financed on the General Commission Budget 
managed by EuropeAid in 2008

Commitments ( € million )

9 M€ , 6%

Payments ( € million )

10 M€, 8%

Social infrastructures: education, health,
water, government and civil society,
other 

Economic infrastructures and services:
transport, communications, energy, other
services

Production: agriculture, forestry and
fishing, industry, mining and
construction, trade and tourism

Multisector/crosscutting: environment,
other

Budget support, food aid, food security

143 M€, 94%

Others - including emergency
assistance, reconstruction relief

Social infrastructures: education, health,
water, government and civil society,
other 
Economic infrastructures and services:
transport, communications, energy, other
services
Production: agriculture, forestry and
fishing, industry, mining and
construction, trade and tourism
Multisector/crosscutting: environment,
other

Budget support, food aid, food security

Others - including emergency
assistance, reconstruction relief

105 M€, 92%

Mains sectors : Government and civil society, Administratives costs related to EIDHR
Bilateral and Multilateral ODA (EuropeAid only).

EN 

138 

   EN 

 
 
Figure 29 EIDHR - Breakdown by region of external aid financed on the General Commission Budget 
managed by EuropeAid in 2008

Commitments ( € million )

ENPI East

ENPI South

Asia

Latin America

ACP

Regional

Payments ( € million )

152 M€, 100%

14 M€, 12%

36 M€, 31%

7 M€, 6%

ENPI East

ENPI South

17 M€, 15%

Asia

Latin America

29 M€, 25%

13 M€, 11%

ACP

Regional

Beneficiary countries not identified at commitment stage (multi-regional call for proposal)
Bilateral and Multilateral ODA (EuropeAid only).

EN 

139 

   EN 

 
 
Figure 30 EIDHR - External aid financed on the General Commission 
Budget managed by EuropeAid

€ million

2007

2008

Commitments

            142                 153    

Payments

            130                 121    

Bilateral and Multilateral flows (EuropeAid only).

2.5. 

Stability 

The Instrument for Stability aims to contribute to stability in countries in crisis 
by providing an effective response to help preserve, establish or re-establish the 
conditions essential to the proper implementation of the EU’s development and 
cooperation policies. 

2.5.1.  Crisis response and preparedness 

EC  external  instruments  have  for  a  number  of  years  been  used  by  the 
Commission as part of the Union’s overall crisis responses, in the case of both 
natural disasters and political crises in third countries. In the latter case, it often 
intervenes  alongside  EU  joint  actions  under  Common  Foreign  and  Security 
Policy  (CFSP)87  or  European  Security  and  Defence  Policy  (ESDP).  Between 
2000  and  2006,  this  role  was  played  by  the  EC  Rapid  Reaction  Mechanism 
(RRM) as regards non-humanitarian crisis responses. Despite modest budgets (in 
the  order  of  €30  million  per  year)  and  severely  limited  programme  durations 
(maximum six months), RRM-funded projects have played a significant role in a 
number  of  EU  crisis  responses,  in  many  cases  kick-starting  programmes  under 
the EC geographic instruments or dovetailing with CFSP/ESDP. The RRM was 
used  in  Afghanistan,  in  response  to  the  Asian  tsunami,  and  in  the  Aceh  Peace 
Process,  The  RRM  also  provided  for  the  EU  Border  Assistance  Mission  to 
Moldova and Ukraine, and responded to a series of other crises in Africa, Latin 
America, the western Balkans and the Middle East.  

The  launch  of  the  Instrument  for  Stability  in  2007  considerably  enhanced  the 
Commission’s crisis response capacity (in addition to introducing an allocation 
for  crisis  preparedness  and  creating  the  possibility  to  address  trans-regional 
security threats over the longer term - see Section 2.5.2). Compared to the RRM, 
the  crisis  response  component  of  the  IfS  represents  a  considerable  increase  in 
funding allocations (€93 million in 2007, and €128 million in 2008) and in the 

87 

More information on CFSP http://ec.europa.eu/external_relations/cfsp/index_en.htm  

EN 

140 

   EN 

 
 
                                                 
duration  of  programmes  (18  months,  with  the  possibility  of  extension,  or  of 
follow-on interim response measures).  

Crisis-response measures under the Instrument for Stability address a wide range 
of  issues,  including  support  for  mediation,  confidence-building,  and  interim 
administrations, strengthening the rule of law, transitional justice, as well as the 
disarmament,  demobilisation  and  reintegration  of  combatants,  equitable  access 
to  natural  resources,  disaster  response  and  rehabilitation.  Such  activities  are 
relevant  in  situations  of  crisis  or  emerging  crisis,  when  assistance  cannot  be 
provided rapidly enough under other EC financial instruments. Typically, the IfS 
can be mobilised in case of a major political crisis or natural disaster, or when 
there is an urgent need to secure the conditions for the delivery of EC assistance, 
or  alongside  CFSP/ESDP  actions.  Approval  procedures  are  designed  to  ensure 
the rapid adoption of programmes.  

In  its  second  year  of  operation,  the  Stability  Instrument  again  financed  a 
significant  number  of  crisis  response  projects  with  a  total  budget  of  €128 
million. These include:  

•  assistance to resolve the conflict in the Democratic Republic of Congo (€10 

million);  

•  support for the fragile peace process and transition in Nepal (€5.95 million);  
•  post-conflict support for internally displaced people in Georgia (€15 million);  
•  continuing  support  for  peace-building  in  Kosovo  (€14.2  million)  during  the 
difficult transition following its declaration of independence and the launch of 
the EU’s EULEX mission;  

•  a  substantial  recovery  programme  in  Bangladesh  following  the  devastating 

cyclone SIDR (€13 million);  

•  additional  support  to  the  fragile  reconciliation  process  in  Lebanon  to  help 

prepare the 2009 elections (€4 million).  

In  addition,  two  new  facilities  were  adopted  in  support  of  smaller-scale  and 
urgent  actions  for  transitional  justice  and  international  tribunals  (€12  million), 
and  for  mediation  and  reconciliation  (€5.5  million).  In  all,  36  crisis  response 
measures and two new facilities were adopted in 2008. 

Two  years  after  its  start,  the  Stability  Instrument  crisis  response  component  is 
now well established as a complementary EU crisis management tool. In terms 
of  geographic  distribution,  €220  million  were  committed  in  total  in  2007  and 
2008  for  58  actions  worldwide.  The  main  share  of  support  was  provided  in 
Africa (mainly Central African Republic, Chad, Democratic Republic of Congo, 
Somalia – 29%), followed by actions in Asia (mainly Aceh, Afghanistan, Nepal, 
Southern Thailand, Timor- Leste, Sri Lanka – 19%), the Middle East (Lebanon, 
occupied  Palestinian  territory,  Iraqi  Refugees  in  Syria  –  12%).  In  addition, 
Kosovo received €24 million and Georgia €17 million. 

EN 

141 

   EN 

 
Thematically,  the  adopted  measures  cover  a  broad  range  of  issues,  targeted  on 
the  specific  needs  of  each  conflict/post-conflict  situation:  short-term  advice  to 
develop  and  kick-start  post-conflict  security  system  reform  (Central  African 
Republic,  Democratic  Republic  of  Congo,  Guinea-Bissau,  Lebanon,  occupied 
Palestinian territory, Timor-Leste), measures in areas where ESDP missions are 
deployed  (Afghanistan,  Chad,  DRC,  Georgia,  Kosovo,  occupied  Palestinian 
territory), support to regional peace-building capacity (AU–AMISOM Somalia, 
AU-UN mediation in Darfur), rule of law and transitional justice (Afghanistan, 
Colombia, Haiti, Kyrgyzstan, Sierra Leone, Solomon Islands), support to interim 
administrations  (ICO  Kosovo,  Somalia),  conflict  resolution  and  reconciliation 
(Burma/Myanmar,  Colombia,  Nepal,  occupied  Palestinian  territory,  Peru,  Sri 
Lanka,  Thailand,  Uganda,  Zimbabwe),  post-disaster  recovery  programmes  and 
needs assessments (Bangladesh, Lebanon, Nicaragua, Peru), support to displaced 
populations  (Lebanon,  Syria  and  Timor-Leste),  conflict  resources  (dedicated 
infrastructure 
(Fiji)  and 
facility),  election  preparation 
programmes to tackle high unemployment as a driver of fragility (Timor-Leste). 

labour-intensive 

Regarding the Stability Instrument’s ‘crisis preparedness’ component, 2008 saw 
further  progress  in  establishing  the  peace-building  partnership  to  mobilise  and 
consolidate  civilian  expertise  for  peace-building  activities.  It  focuses  on 
strengthening the up-stream capacity of relevant partners to rapidly respond to a 
crisis scenario, and addresses in particular civil society organisations and think-
tanks, but also international and regional organisations and relevant agencies in 
EU Member States.  

In  2008,  the  components  and  objectives  identified  in  the  peace-building 
partnership annual action programmes for 2007 and 2008 were implemented and 
total funding of €15 million was allocated as follows:  

•  Two  calls  for  proposals  were  launched  to  build  the  capacity  of  non-state 

actors, active in the field of peace-building; 

•  Four  direct  grants  were  awarded  in  the  context  of  cooperation  with 
international  organisations  on  early  warning  and  early  recovery:  one  to  the 
African  Union,  and  three  to  the  UNDP  on  post-conflict  and  post-disaster 
needs assessment, and on natural resources and conflict, for a total amount of 
about €2.5 million.  

•  Three  direct  grants  were  also  awarded  in  the  framework  of  training  for 

civilian stabilisation missions.  

Moreover,  the  dialogue  process  with  civil  society  organisations  has  been 
enhanced  through  a  series  of  consultation  meetings  and  the  use  of  the  peace-
building  partnership  web-portal  as  a  tool  for  advertising  its  activities  and 
circulating relevant documents.  

Work  also  continued  in  2008  to  further  improve  the  Commission’s  crisis- 
response capacities. The network of more than 130 Commission Delegations in 
third  countries  is  being  strengthened  specifically  as  regards  the  coordination/ 

EN 

142 

   EN 

 
facilitation  of  crisis  responses,  with  the  objective  of  progressively  building 
regional  poles  of  multi-sector  expertise  for  crisis  response.  Work  is  also 
continuing  on  further  reinforcing  emergency  aid  coordination  between 
humanitarian  responses,  civil  protection,  and  other  crisis  responses,  at 
headquarters  level  and  in  the  field.  The  civil  protection  mechanism  deployable 
within and outside the EU through the mechanism’s Monitoring and Information 
Centre was further reinforced during 2007, inter alia to allow the Commission to 
facilitate  and  in  some  cases  co-finance  (up  to  50%)  the  transport  of  civil 
protection assistance to a disaster-affected country. 

In  addition,  the  Commission  strengthened  its  cooperation  with  the  UN  and  the 
World  Bank  in  the  field  of  responding  to  post-crisis  situations  and  planning 
recovery by way of a joint declaration signed on 25 September. The purpose of 
the  agreement  is  to  harmonise  and  coordinate  the  collective  assistance  the 
institutions provide to countries.  

A  communication  was  adopted  in  March  on  reinforcing  the  Union's  disaster 
response  capacity88.  Its  purpose  is  to  enable  the  EU  to  respond,  on  its  own 
territory  or  outside,  to  the  growing  number  of  natural  disasters  or  man-made 
crises.  In  this  context  a  study  on  international  humanitarian  logistics  response 
capacities was launched and will be finalised in 2009. 

2.5.2.  Global and regional trans-border challenges 

One of the components of the IfS aims at developing longer-term EC actions to 
counter  global  and  trans-regional  threats  arising  from  organised  crime, 
trafficking,  proliferation  of  nuclear,  biological  and  chemical  agents,  as  well  as 
threats  to  critical  infrastructure  and  public  health.  It  also  supports  building 
capacity  within  the  EU  and  in  the  international  community  for  effective  crisis 
response, including via non-state actors (peace-building partnership).  

Complementing  actions  supported  through  other  EC  instruments,  including  the 
EDF,  projects  to  address  illicit  trafficking  of  drugs  from  Afghanistan,  of 
radioactive and nuclear materials in the former Soviet Union and to strengthen 
export controls  of dual-use goods have been implemented in line with the first 
indicative  programme  (2007-2008).  A  mechanism  to  mobilise  EU  expertise  in 
the  domains  covered  by  the  IfS  (expert  support  facility)  has  been  successfully 
developed and employed in the preparation of the second indicative programme 
(2009-2011).  More  than  50  EU  experts  visited  over  20  potential  partner 
countries  for  assessing  the  scope,  needs  and  conditions  for  cooperation  and 
assistance under the IfS. 

The  other  components  of  the  IfS  address crisis  response  and  preparedness  (see 
Section 2.5.1). 

88 

COM(2008) 130 final 

EN 

143 

   EN 

 
                                                 
Mine action 

The  Commission  continued  to  support  partner  countries  affected  by  anti-
personnel  landmines  and  other  so-called  explosive  remnants  of  war,  including 
cluster munitions, with the aim of alleviating the socio-economic impact of these 
weapons on countries and populations in the aftermath of conflict. By doing so, 
the  Commission  continued  to  play  a  considerable  part  in  support  of  the 
implementation  of  the  Ottawa  Convention  on  the  Prohibition  of  the  Use, 
Stockpiling, Production and Transfer of Anti-personnel Landmines and on their 
Destruction (also known as the Mine Ban Treaty).  

In  2008,  mine  action  continued  to  be  part  of  wider  EC  assistance  and 
development  programmes  in  third  countries.  Promoting  and  monitoring  the 
integration  of  mine  action  into  the  European  Community’s  external  assistance 
programmes  was  further  strengthened.  To  this  end,  a  set  of  Guidelines  on 
European Community Mine Action 2008-2013 was endorsed in November 2008 
to ensure a valid follow-up to the previous EC Mine Action Strategy 2005-2007 
by  steering  EC  Delegations  in  mine-affected  countries  towards  effective  mine 
action  programming.  In  2008,  the  Commission’s  contribution  to  mine  action 
continued  to  follow  the  2005-2007  strategy.  Mine  action  policy  was  pursued 
through various instruments with total funding of over €27 million for action in 
nine  countries:  Albania,  Angola,  Bosnia  &  Herzegovina,  Ethiopia,  Georgia, 
Lebanon,  Nepal,  Sri  Lanka  and  Thailand.  Activities  supported  included  mine 
clearance  (including  cluster  bombs),  mine  risk  education,  the  destruction  of 
stockpiles of anti-personnel mines and assistance in the safe return resettlement 
and  re-establishment  of  internally  displaced  persons  and  refugees.  Regional 
evaluations to assess mine action supported by the European Commission from 
2004 until 2007 were carried out in six regions: Africa, Asia-Pacific, Caucasus 
and Central Asia, Europe, Latin America, and the Middle East. 

Small Arms and Light Weapons (SALW) 

The  Commission  continued  supporting  the  implementation  of  the  EU  Small 
Arms  and  Light  Weapons  Strategy.  The  Commission  has  been  pursuing  the 
integration  of  issues  related  to  small  arms  into  country  and  regional  strategy 
papers.  This  offers  partner  countries  the  opportunity  to  give  the  appropriate 
political  and  funding  priority  to  these  issues  in  the  context  of  EC  external 
assistance programmes.  

The main project addressed the illicit accumulation and trafficking of firearms in 
Africa.  SALW-related  projects  both  at  regional  and  national  level,  were 
accompanied  by  seminars  and  initiatives  aimed  to  increase  the  Commission’s 
participation in policy debates, ensuring more coherence between CSFP and EC-
funded initiatives and to strengthen cooperation with other non-EU partners. 

Non-proliferation of weapons of mass destruction 

EN 

144 

   EN 

 
Weapons  of  Mass  Destruction  (WMD)  and  missile  proliferation  constitute  a 
major threat not only for the EU but also for international security. In responding 
to the risks related to WMD, the EU continued in 2008 to implement its WMD 
strategy  through  a  number  of  EU  joint  actions.  In  this  context,  the  Stability 
Instrument also provided political, financial and technical support to competent 
multilateral  bodies  as  well  as  assistance  to  third  countries  on  nuclear  security, 
export  control,  bio-safety/bio-security,  redirection  of  former  weapons  scientists 
and  border  monitoring  in  conformity  with  UN  Security  Council  Resolution 
1540.  In  addition  to  continuing  efforts  in  the  former  Soviet  Union,  the 
Commission has started to develop its assistance in other regions like the Middle 
East and South-East Asia. Work has also been taken forward to include a non-
proliferation  clause  as  an  essential  element  in  agreements  with  third  countries. 
Such a clause has been included in agreements between the EU and almost 100 
countries worldwide.  

EuropeAid's nuclear safety unit is implementing the new Instrument for Stability 
priority  1  –  non-proliferation  of  weapons  of  mass  destruction  [IfS  2007-2013]. 
In 2008, all the activities defined under annual action plan 2007 were contracted 
and  those  under  the  2008  plan  defined  and  decided.  They  focus  on  supporting 
research  activities  as  alternative  employment  for  former  weapon  scientists  and 
engineers 
(International  Science  and 
Technology  Centre  in  Moscow  /  Science  and  Technology  Centre  in  Ukraine  in 
Kiev), on strengthening civilian capabilities and exchange of information to fight 
against  illicit  trafficking  of  chemical,  biological,  radiological  and  nuclear 
materials,  on  reinforcing  export  control  of  dual-use  goods,  and  on  improving 
capabilities against biological threats.  

through  support 

ISTC/STCU 

to 

Fight against trafficking from and to Afghanistan 

Trafficking of illegal drugs from Afghanistan is still growing despite the efforts 
deployed by the international community, and represents a risk for the stability 
of  countries  of  origin,  transit  and  destination  along  the  'heroin  route'.  The 
Commission  has  prepared  a  programme  covering  the  10  countries  of  the 
Economic  Cooperation  Organisation  (ECO)  under  the  leadership  of  Germany 
with  the  support  of  Italy,  and  with  more  limited  contributions  envisaged  by 
Poland and Bulgaria. The UN Office on Drugs and Crime and Interpol will also 
be important partners of the programme. A memorandum of understanding was 
to  be  signed  in  February  2009  with  ECO  to  support  the  implementation  of  the 
programme. 

EN 

145 

   EN 

 
Figure 31 IFS - Breakdown by sector of external aid financed on the General Commission Budget 
managed by EuropeAid and Relex in 2008

Commitments ( € million )

30.3 M€, 21%

1.6 M€, 1%

Payments ( € million )

15.0 M€, 13%

5.2 M€, 5%

0.5 M€, 0%

Social infrastructures: education, health,
water, government and civil society,
other 

Economic infrastructures and services:
transport, communications, energy, other
services

Production: agriculture, forestry and
fishing, industry, mining and
construction, trade and tourism

Multisector/crosscutting: environment,
other

Budget support, food aid, food security

111.6 M€, 78%

Others - including emergency
assistance, reconstruction relief

Social infrastructures: education, health,
water, government and civil society,
other 
Economic infrastructures and services:
transport, communications, energy, other
services
Production: agriculture, forestry and
fishing, industry, mining and
construction, trade and tourism
Multisector/crosscutting: environment,
other

Budget support, food aid, food security

92.6 M€, 82%

Others - including emergency
assistance, reconstruction relief

Bilateral and Multilateral ODA (EuropeAid + Relex)

EN 

146 

   EN 

 
 
Figure 32 IFS - Breakdown by region of external aid financed on the General Commission Budget 
managed by EuropeAid and Relex in 2008

Commitments ( € million )

5.3 M€, 4%

33.7 M€, 28%

ENPI East

ENPI South

14.0 M€, 12%

5.1 M€, 4%

Asia

Latin America

ACP

Regional

39.6 M€, 33%

Payments ( € million )

7.1 M€, 6%

27.2 M€, 25%

7.7 M€, 7%

36.6 M€, 33%

ENPI East

ENPI South

Asia

Latin America

ACP

Regional

18.6 M€, 17%

Bilateral and Multilateral ODA (EuropeAid + Relex)

EN 

147 

   EN 

 
 
Figure 33 IFS - External aid financed on the General Commission Budget 
managed by EuropeAid and Relex.

€ million

2007

2008

Commitments

            137                 181    

Payments

              49                 129    

Bilateral and Multilateral ODA (EuropeAid + Relex)

2.6. 

Nuclear safety 

The EU continued its support for enhanced nuclear safety in Russia and Ukraine 
under  the  Tacis  programme,  the  main  challenges  being  to  strengthen  the 
regulatory  authorities  (Russia,  Ukraine,  Belarus  and  Georgia),  to  promote  an 
effective nuclear safety culture at all levels, and to develop the management of 
spent  fuel  and  radioactive  waste.  The  Commission  paid  a  €49.1  million 
contribution to the new safe confinement project in Chernobyl. In Armenia, the 
EU provided on-site assistance to the Medzamor power plant in the framework 
of  an  action  driven  by  the  International  Atomic  Energy  Agency  and  to  the 
Armenian regulatory authority. 

Since  1  January  2007,  a  new  instrument  –  the  Instrument  for  Nuclear  Safety 
Cooperation (INSC 2007-2013) has been dealing  with measures to support the 
promotion of high-level nuclear safety, radiation protection and the application 
of  efficient  and  effective  safeguards  of  nuclear  material  in  non-EU  countries. 
Exploratory  missions  have  been  conducted  in  Jordan  and  in  Egypt  to  reinforce 
their regulatory authorities and projects have been decided. 

EN 

148 

   EN 

 
 
Figure 34 NSI - Breakdown by sector of external aid financed on the General Commission Budget 
managed by EuropeAid in 2008

Commitments ( € million )
1.2 M€, 2%

Payments ( € million )

0.8 M€, 1%

Social infrastructures: education, health,
water, government and civil society,
other 

Economic infrastructures and services:
transport, communications, energy, other
services

Production: agriculture, forestry and
fishing, industry, mining and
construction, trade and tourism

Multisector/crosscutting: environment,
other

Budget support, food aid, food security

57.8 M€, 98%

Others - including emergency
assistance, reconstruction relief

Social infrastructures: education, health,
water, government and civil society,
other 
Economic infrastructures and services:
transport, communications, energy, other
services
Production: agriculture, forestry and
fishing, industry, mining and
construction, trade and tourism
Multisector/crosscutting: environment,
other

Budget support, food aid, food security

54.1 M€, 99%

Others - including emergency
assistance, reconstruction relief

Main sector : Nuclear power plants
Bilateral and Multilateral ODA (EuropeAid only).

EN 

149 

   EN 

 
 
Figure 35 NSI - Breakdown by region of external aid financed on the General Commission Budget 
managed by EuropeAid in 2008

Commitments ( € million )

5.9 M€, 10%

2.0 M€, 3%

ENPI East

ENPI South

Asia

Latin America

51.1 M€, 87%

ACP

Regional

ENPI East

ENPI South

Asia

Latin America

41.5 M€, 75%

ACP

Regional

Payments ( € million )

13.1 M€, 24%

0.3 M€, 1%

Bilateral and Multilateral ODA (EuropeAid only).

EN 

150 

   EN 

 
 
Figure 36 NSI - External aid financed on the General Commission Budget 
managed by EuropeAid

€ millions

2007

2008

Commitments

         78.01              72.49    

Payments

         56.27              76.33    

Bilateral and Multilateral flows (EuropeAid only).

2.7. 

Humanitarian assistance 

2.7.1.  Context 

Through  its  Directorate-General  for  Humanitarian  Aid  (DG  ECHO),  the 
Commission  provided  needs-based  humanitarian  assistance  to  the  victims  of 
natural or man-made disasters in over 60 countries in 2008 worth a total of €937 
million. 

The initial budget was increased on several occasions in order to respond to new 
crises and natural disasters occurring during the year and also, most importantly, 
in order to react to soaring food prices. 

Figure 37: Humanitarian aid 2008

Technical assistance, 
2.7%

Support expenditure, 
0.8%

Non-geographical 
assistance, 0.7%

Asia and Latin 
America, 20.5%

Middle East, Medit, 
Europe, Caucasus 
and Central Asia, 
16.3%

Africa, Caribbean, 
Pacific, 58.9%

In  addition  to  the  food  crisis,  natural  disasters,  accentuated  by  climate  change, 
continued  to  increase  both  in  frequency  and  severity.  In  conflict-related 

EN 

151 

   EN 

 
 
 
humanitarian  crises,  the  environment  in  which  donors  and  humanitarian 
organisations  operate  is  becoming  increasingly  complex,  creating  severe 
difficulties  of  implementing  the  policy  and  getting  humanitarian  assistance  to 
those who need it. 

Natural disasters created serious damage in the following geographical areas in 
2008:  

•  cyclones/hurricanes in the Caribbean region, affecting Haiti, Bahamas, Cuba, 

Madagascar and in Burma/Myanmar;  

•  droughts  in  the  Horn  of  Africa,  Sahel,  Moldova,  Paraguay,  Honduras  and 

occupied Palestinian territory;  

•  earthquakes in China;  
•  epidemics in Benin (cholera), Latin America and the Caribbean;  
•  floods  in  Bangladesh,  Bolivia,  Ecuador,  Guatemala,  Honduras,  Nepal, 

Namibia, India, and Yemen;  

•  periods of extreme cold in Peru and Bolivia  
•  typhoons in Laos and Vietnam.  

The Commission had to respond speedily to help thousands of suffering people, 
sometimes already affected by other crises.  

In  terms  of  "man-made"  crises,  the  conflict  between  Georgia  and  Russia 
Federation in South Ossetia in August led to emergency intervention in favour of 
the population affected by this new conflict. Kenya was affected by widespread 
political  turmoil  following  disputed  presidential  elections.  The  post-election 
violence led to the displacement of more than 500,000 people. In 2008, Yemen 
experienced an escalation of the internal conflict in the north of the country. In 
August,  the  failed  signature  of  a  peace  agreement  between  the  Moro  Islamic 
Liberation Front and the Government of Philippines sparked renewed fighting in 
the southern island of Mindanao, causing the displacement of more than 550,000 
people.  At  year  end,  around  320,000  people  remained  displaced,  with  no 
perspective  of  a  solution  in  sight.  Finally,  in  Sri  Lanka,  the  conflict  between 
government forces and the Liberation Tigers of Tamil Elam (LTTE) in the north 
of the island seriously escalated from the beginning of 2008.  

In  addition  to  these  new  crises,  the  Commission  had  to  manage  worsening 
humanitarian  situations  often  involving  complex  emergencies  as  part  of  long-
running  conflicts.  The  two  main  examples  are  Sudan  and  the  Democratic 
Republic of Congo.  

The  Commission  paid  particular  attention  to  ‘forgotten’  crises,  i.e.  situations 
where  major  humanitarian  needs  receive  little  attention  from  donors  and  low 
media  coverage.  These  forgotten  crises  received  14%  (€41.3  million)  of  the 
initial budget.  

EN 

152 

   EN 

 
2.7.2.  Humanitarian policy 

The Commission adopted on 29 May 2008 an action plan for the implementation 
of the European Consensus on Humanitarian Aid which gives the EU a common 
set of values, principles and objectives intended to strengthen the coherence of 
its  overall  humanitarian  action.  The  overall  aim  is  to  ensure  that  the  EU 
maximises  the  effectiveness  of  its  contribution  to  the  collective  international 
humanitarian response. 

As part of the implementation of the action plan, a conference on international 
humanitarian  law  was  held  at  the  European  Parliament  on  16  September  2008 
with  the  participation  of  the  humanitarian  community  including  NGOs,  UN 
agencies and EU Member States. 

In March, the Commission adopted a Communication on reinforcing the Union's 
Disaster Response Capacity89. To respond to increasing challenges whether they 
be  natural  disasters  or  man-made  crises,  the  Communication  proposes  that  the 
EU  reinforces  its  capacity  to  provide  civil  protection  and  humanitarian 
assistance either on its own territory or in third countries. 

2.7.3.  Disaster preparedness 

local 
The  Commission  supports  disaster  preparedness  actions  within 
communities  in  several  regions  prone  to  natural  disasters,  so  as  to  help  them 
react  rapidly  and  in  an  appropriate  manner  in  case  of  a  disaster,  thus  allowing 
many lives to be saved. 

The  Commission  continued  to  support  programmes  launched  in  2007  (Central 
America,  Caribbean,  South  Asia  and  South  America,  focusing  on  the  Andean 
Community).  New  funding  (€32.3  million)  was  allocated  in  the  following 
regions: Southern Africa and Indian Ocean, Central Asia, Central America and 
South-East Asia. 

2.7.4.  Budget 

Application  of  the  needs-based  principles  led  to  the  following  geographical 
division of the funds (in euro) for humanitarian aid committed in 2008: 

89 

COM(2008) 130 final of 05.03.2008 

EN 

153 

   EN 

 
                                                 
Figure 38: Humanitarian assistance in 2008 (in € '000)

Unit/Region

Humanit. 
Aid

Food Aid DIPECHO

Total

%

A/1: Africa, Caribbean, Pacific

292 297

254 550

5 000

551 847

58.9%

Sudan & Chad
Horn of Africa
Central & Southern Africa, Indian Ocean
West Africa
Caribbean

98 000
78 297
79 650
26 100
10 250

99 000
89 600
41 550
13 000
11 400

5 000

197 000
167 897
126 200
39 100
21 650

A/2: Middle East, Mediterranean, Europe, 
Caucasus & Central Asia

82 550

62 760

7 325

152 635

16.3%

Mediterranean & Middle East
Europe, Caucasus & Central Asia

A/3: Asia & Latin America

South Asia
South East & East Asia
Latin America

Non-geographical assistance (capacity 
building, grants and services, etc)

Technical Assistance (experts & field 
offices)
Support expenditure (audits, evaluations, 
information, etc)

62 100
20 450

128 920

64 850
44 000
20 070

62 760

43 407

29 407
10 000
4 000

7 325

124 860
27 775

20 000

192 327

20.5%

10 000
10 000

94 257
64 000
34 070

4 460

2 534

27

7 021

0.7%

25 000

25 000

2.7%

7 812

0.8%

TOTAL

533 227

363 251

32 352

936 642

100%

For  more  details  on  interventions  by  the  Commission  in  the  field  of 
humanitarian  aid,  please  refer  to  its  Annual  Report  and  financial  reports, 
available on DG Humanitarian Aid's internet website90.  

2.8.  Macro-financial assistance  

The  Commission  implements  macro-financial  assistance  (MFA)  in  association 
with support programmes of the IMF and the World Bank and on the basis of a 
Council  Decision.  MFA  incorporates  a  set  of  principles  which  underline  its 
exceptional  character,  its  complementarity  to  financing  from  international 
financial  institutions,  and  its  macroeconomic  conditionality.  It  is  an  instrument 
designed  to  help  the  beneficiary  countries  experiencing  serious  but  generally 
short-term  macroeconomic 
imbalances  (balance  of  payments  and  fiscal 
difficulties). In close coordination with IMF and World Bank programmes, MFA 
has promoted policies that are tailored to specific country needs with the overall 

90 
report: http://ec.europa.eu/echo/funding/key_figures/echo_en.htm 

Annual report: http://ec.europa.eu/echo/about/what/reports_en.htm and Financial 

EN 

154 

   EN 

 
 
                                                 
objective  of  stabilising  the  external  and  internal  financial  situation  and 
establishing market-oriented economies. 

No  new  operations  were  decided  by  the  Council  in  2008.  Regarding  the 
implementation  of  ongoing  assistance,  the  second  tranche  of  €10  million  to 
Moldova  was  disbursed  in  June  in  the  form  of  grant  and  the  third  and  last 
tranche  of  €15  million  was  paid  in  late  December.  For  Lebanon,  the  first 
payment of €15 million in the form of grant was made in late December. 

3. 

FEATURE ARTICLES 

•  Article 1: A strategic partnership between Africa and the European Union 

The  year  2008  confirmed  that  a  new  era  in  Africa-Europe  relations  has  begun. 
Since  the  adoption  of  the  Joint  Africa-EU  Strategy  at  the  Lisbon  Summit  in 
December  2007,  the  strategic  partnership  between  Africa  and  the  EU  gained 
shape  and  substance.  An  efficient  institutional  architecture  and  innovative 
working  arrangements,  facilitating  joint  decision-making  and  cooperation  on 
new  challenges,  together  with  a  strengthened  political  dialogue,  have  anchored 
the  neighbouring  continents  in  a  more  balanced,  forward-looking  and  strategic 
partnership.  Guided  by  the  principles  of  equality,  mutual  respect  and  co-
responsibility  in  bilateral  cooperation  and  towards  global  issues,  this  renewed 
relationship  marks  a  break  with  the  past  and  establishes  a  comprehensive, 
ambitious and long-term framework for future dialogue and cooperation. 

Today,  Africa-EU  relations  go  beyond  traditional  development  issues  and  are 
conducted through wide-ranging political dialogue and cooperation, covering all 
aspects of Africa-EU ties as well as global issues and challenges. 

A partnership with new horizons 

“Beyond  development”:  To  promote  dialogue  and  cooperation  not  only  on 
conventional  development  issues but also in other policy areas such as energy, 
climate  change,  science  and  technology,  where  there  is  an  interest  in  pursuing 
common objectives. 

“Beyond  Africa":  To  discuss  global  issues  and  secure  a  system  of  effective 
multilateralism,  with  strong, 
international 
institutions and agreements. 

representative  and 

legitimate 

"Beyond institutions": To facilitate and promote a broad-based and wide-ranging 
people-centred partnership, Africa and the EU have agreed to empower non-state 
actors  and  create  conditions  to  enable  them  to  play  an  active  role  in  the 
monitoring and implementation of the strategy. 

EN 

155 

   EN 

 
fragmentation":  To  support  Africa's  regional  and  continental 
"Beyond 
integration, to respect Africa's unity, and break with the fragmented approach of 
the past. 

The  first  concrete  results  of  this  conceptual  leap  are  already  visible.  Since  the 
Lisbon  Summit,  Africa  remains  high  on  the  EU's  foreign  policy  agenda,  with 
dialogue  increasingly  going  beyond  the  confines  of  traditional  development 
issues,  agencies  and  officials.  Africa,  too,  no  longer  views  the  EU  from  the 
perspective of the traditional donor-recipient relationship, but rather as a partner 
with whom global challenges can be effectively tackled. 

A partnership for more complementarity and coherence 

Cutting  red  tape,  pooling  scarce  resources,  putting  money  where  it  is  needed 
most, sharing work so as to deliver it better and faster. These are all aspirations 
that the EU is committed to by the Paris Declaration (2005). This underlines the 
importance  of  making  full  use  of  each  other's  comparative  advantages  and 
enhances  complementarity  and  coherence,  while  respecting  the  ownership  of 
partner countries.  

With  the  Joint  Strategy  and  its  first  action  plan,  both  the  EU  and  Africa  have 
made  ambitious  commitments  that  require  an  efficient  institutional  architecture 
to  deliver  tangible  results,  in  cooperation  with  all  actors  and  stakeholders.  In 
response to the political, operational and organisational challenges posed by the 
action plan and the need for effective coordination mechanisms, the two parties 
have  set  up  joint  expert  groups.  These  create  an  informal  setting  to  coordinate 
and to implement the eight thematic partnerships agreed in Lisbon:  

- Peace and security;  
- Democratic governance and human rights;  
- Trade, regional integration and infrastructure;  
- Millennium Development Goals;  
- Energy;  
- Climate Change;  
- Migration, mobility and employment;  
- Science, information society and space.  

The  informal  joint  experts  groups  have  been  truly  instrumental  in  stepping  up 
coordinated  efforts  towards  the  implementation  of  the  Joint  Strategy,  reducing 
the risks of duplication and an inefficient fragmentation of activities. Finally, the 
multi-sector approach of the strategy can also be considered as a major attempt 
in ensuring that different policy areas do complement each  other, especially as 
regards their impact.  

A partnership that expands political dialogue  

EN 

156 

   EN 

 
In  2008,  contacts  between  Africa  and  the  EU,  and  between  their  respective 
institutions  were  considerably  strengthened.  The  political  dialogue  on  global 
issues has improved, allowing constructive and frank ministerial debates on all 
important  issues,  including  sensitive  ones  like  the  financial  crisis,  universal 
jurisdiction and crisis situations in Africa and Europe. Followed by joint action, 
this  high-level  dialogue  has  contributed  to  the  strengthening  of  the  ties  linking 
the two continents. The establishment of a 'double-hatted'91 EU Delegation to the 
African  Union  in  Addis  Ababa,  the  greater  involvement  of  the  African  Union 
Delegation  to  the  EU  in  Brussels,  the  ever-intensifying  Commission-to-
Commission  dialogue  and  cooperation  agenda,  as  well  as  the  partnership 
between  the  European  and  Pan-African  Parliaments  have  also  helped  bring 
Africa and Europe closer. 

A partnership that delivers 

With the institutional architecture in place, initial progress has been made in all 
eight partnerships. 

-  Peace  and  security:  Political  dialogue  has  been significantly  strengthened  in 
this domain, as evidenced by the first-ever meeting between the AU Peace and 
Security  Council  and  the  EU  Political  and  Security  Committee,  the  regular 
consultations  and  exchange  of  information  between  the  AU  Commission,  the 
European  Commission  and  the  Council  of  the  European  Union.  Dialogue  has 
also started on related issues such as small arms and light weapons and the fight 
against  terrorism.  The  cooperation  on  the  African  Peace  and  Security 
Architecture, particularly in the area of early warning, and the African Standby 
Force  has  improved.  Finally,  on  the  funding  of  African-led  peace  support 
operations,  mention  should  be  made  of  ongoing  efforts  to  implement  the  new 
Africa  Peace  Facility  of  €300  million  for  the  period  2008-2010.  At  the  same 
time, the two sides are maintaining close consultations regarding the work of the 
UN Panel led by former Commission President Romano Prodi. 

-  Democratic  governance  and  human  rights:  Africa  and  the  EU  launched 
parallel  reflections  on  a  common  approach  to  democratic  governance  in  the 
context of the coming dialogue in international fora and at global level. The two 
sides have also engaged in initial discussions on EU support for the African Peer 
Review  Mechanism  and  the  Pan-African  governance  architecture,  election 
observation and cooperation in the area of cultural goods.  

-  Trade,  regional  integration  and  infrastructure:  Important  steps  have  been 
taken to further Africa's regional integration. In this respect, significant progress 
has been made in the advancement of free trade areas and customs unions, and 
specific attention has been given to training on regional integration. With respect 

91 

The Head of the EU Delegation to the African Union holds the double mandate of representative 
of the European Commission and the EU special Representative. 

EN 

157 

   EN 

 
                                                 
to  infrastructure,  2008  was  also  a  year  of  delivery.  There  has  been  increased 
investment  in  Africa's  transport,  energy,  water  and  ICT  networks.  The  EU's 
Africa  Infrastructure  Trust  Fund  has  proved  to  be  an  innovative  instrument  to 
enhance  regional  integration  and  has  received  contributions  of  more  than  €150 
million from 12 EU Member States and 9th European Development Fund. 

-  Millennium  Development  Goals:  the  MDG  joint  expert  group  took  stock  in 
particular  of  the  UN  High-Level  Meetings  in  2008  which  focused  on  the 
implementation  of  all  commitments  made  to  and  by  Africa  and  on  the  MDGs 
globally. These were the Accra High-Level Forum which made important steps 
towards  enhanced  aid  effectiveness,  the  EU  Member  States’  commitments  to 
increase  ODA  collectively  to  0.56%  of  GNI  by  2010;  and  the  EU  Agenda  for 
Action (June 2008), which represents a collective European offer to developing 
partners, in particular in Africa, and sets a number of intermediate milestones to 
be reached by 2010. It was agreed that the work of the MDG partnership should 
link  coherently  with  the  outcomes  of  these  events  and  processes,  in  order  to 
ensure complementarity between the various MDG-focused initiatives. 

-  Energy:  The  European  Commissioners  for  Energy  and  Development 
undertook  a  joint  mission  to  Africa  to  promote  the  Energy  Partnership.  As  a 
direct outcome of their mission, the European and African Union Commissions 
signed  a  Joint  Statement  on  the  Implementation  of  the  Africa-EU  Energy 
Partnership.  Among  the  priorities  agreed,  the  mobilisation  of  additional 
resources  for  investment  in  the  energy  sector  is  being  implemented  through, 
among  other  actions,  the  renewal  of  the  energy  facility,  to  be  formally 
announced in early 2009.  

-  Climate  change:  An  important  accomplishment  of  2008  was  the  adoption  of 
the  joint  Africa-EU  declaration  on  Climate  Change  ahead  of  the  Poznan  UN 
Framework Convention on Climate Change Conference in December. This was 
an excellent illustration of the new dimension of the partnership, as the African 
Union, its Commission, the European Commission and EU Member States were 
able to take a common stance towards a global issue at an international forum. 
The  expert  group  has  been  tasked  to  translate  the  proposed  priorities  into 
concrete  cooperation  activities  in  2009.  The  EU  Global  Climate  Change 
Alliance, the framework for policy dialogue and support to developing countries 
to adapt to climate change, became operational with a budget of €300 million for 
2008-2010  funded  partly  from  the  European  Development  Fund  and  the  EU 
environment and natural resources thematic programme. 

- Migration, mobility and employment: To organise migration movements and 
help create more jobs of higher quality in Africa, the two sides exchanged ideas 
on  issues  relating  to  migration,  mobility  and  employment,  both  within  and 
between  the  two  continents.  Discussions  focused  on  a  procedure  for  the 
preparation of the November 2010 Summit and on the possibility of setting up 
an African Remittances Institute. 

EN 

158 

   EN 

 
- Science, information society and space: the EU and AU have agreed to work 
jointly on:  

•  African research grants and scientific awards,  
•  Water and food security in Africa,  
•  African connect, the African internet exchange system,  
•  the African global monitoring for environment and security, 
•  capacity building in the AU Commission in geo-spatial sciences.  

There is no doubt that secondary effects of these projects would go far beyond 
the boundaries of this specific partnership. 

Challenges ahead and the way forward 

Since  the  December  2007  Lisbon  Summit  and  throughout  2008,  substantial 
progress has been made in the implementation of the Africa-EU Joint Strategy. 
The two partners have put in place the innovative institutional architecture and 
the  demanding  working  arrangements  agreed  in  Lisbon,  and  achieved  the  first 
concrete results in the eight thematic partnerships of the Action Plan. But even 
with the institutional architecture and dialogue modalities agreed, much remains 
to be done to deliver all results and expected outcomes of the Joint Strategy. 

In  2009,  both  sides  need  to  provide  the  necessary  leadership  in,  and 
responsibility  for,  the  effective  delivery  of  their  respective  commitments  and 
pledged  contributions  to  the  implementation  of  the  Strategy  and  Action  Plan. 
Moreover, the two partners need to ensure that all actors integrate the principles, 
objectives and priorities of the Joint Strategy into the programming of financial 
and  technical  cooperation,  as  well  as  into  their  political  dialogue  and  meetings 
with  third  parties.  Finally,  wider  African  and  European  ownership  of  the  Joint 
Strategy and proactive involvement in its implementation would be necessary to 
put into action a 'people-centred' partnership, which responds to the aspirations 
of all its stakeholders. 

•  Article 2: Electoral Observation 

The  EU  election  observation  policy  is  aimed  at  strengthening  democratic 
processes  worldwide  through  the  deployment  of  missions  (EU  Election 
Observation Missions, EU EOMs). These missions independently assess a given 
election process in all its components for a period of several months, before and 
after election day. 

Although  the  scope  of  democracy  obviously  goes  well  beyond  elections, 
democracy  is  not  conceivable  without  credible  elections.  In  this  sense,  the 
comprehensive  report  from  a  credible  independent  and  election  observation 
mission,  carried  out  by  a  body  external  to  the  process,  may  enhance  public 
confidence in the elections and provide useful elements for further reform of a 
given electoral system. 

EN 

159 

   EN 

 
The EU deployed its first election observation mission in 1993, to Russia. The 
experience  gained  from  this  and  a  number  of  other  EU  observation  missions 
which  covered  significant  elections  in  the  1990s  (South  Africa  1994,  the 
Palestinian  territories  1996,  Cambodia  1998)  led  to  the  development  of  a 
coherent and consistent EU Election Observation policy. This has been practiced 
since  2000,  on  the  basis  of  a  Communication  on  Electoral  Assistance  and 
Observation92 endorsed by the Council and the European Parliament. 

Under the direction of the Commission, EU election observation has developed 
relatively quickly from a short-term, ad hoc operation into a long-term process 
with  a  rigorous  and  systematic  methodology.  From  April  2000 until December 
2008,  70  EU EOMs were deployed to elections in over 50 countries in Africa, 
Latin America and the Caribbean, the Mediterranean and the Middle East, Asia 
and the Pacific. 

The  EU  does  not  deploy EOMs to countries in Europe where the Organisation 
for Security and Cooperation in Europe (OSCE) has the lead through its Office 
for  Democratic  Institutions  and  Human  Rights.  With  EU  EOMs  and  OSCE 
missions based on a very similar methodology and approach, a de facto division 
of  labour  has  been  established  between  the  EU  and  the  OSCE  in  terms  of 
election observation. 

EU  EOMs  have  become  an  essential  instrument  of  EU  external  action  for  the 
promotion  of  democracy  and  human  rights.  EU  election  observation  can  help 
reinforce  other  EU  foreign  policy  objectives  such  as  development  cooperation, 
peace-building and security reforms.  

The  Commission's  Communication  on  Electoral  Assistance  and  Observation93 
cites the following main objectives of EU election observation: 

•  to strengthen respect for fundamental freedoms and political rights; 
•  to undertake an impartial, comprehensive assessment of an election process in 
accordance  with  international  standards  for  elections  as  reflected  in 
international human rights conventions; 

•  to  enhance  public  confidence  in  the  electoral  and  democratic  processes, 

including providing deterrence to fraud; 

•  to contribute, where relevant, towards the prevention or resolution of conflict. 

Election  observation  mission  can  enhance  transparency  and  accountability.  It 
promotes public confidence in the electoral process and mitigate the potential for 
election-related  conflict.  While  election  observation  is  not  an  end  in  itself,  it 
should be seen as a positive contribution to electoral processes, complementing 
other  democracy-promoting  efforts  including  those  of  regional  and  domestic 
observers. 

92 
93 

COM(2000) 191 of 16.4.2008 
http://ec.europa.eu/external_relations/human_rights/election_observation/index_en.htm  

EN 

160 

   EN 

 
                                                 
It is important to underline that – contrary to common beliefs – EU EOMs do not 
have  a  mandate  to  validate  the  results  of  a  given  election.  This  remains  a 
prerogative of the national institutions, and the international community cannot 
replace this fundamental attribute of national sovereignty. 

The  funding  of  EU  EOMs  under  the  European  Instrument  for  Democracy  and 
Human Rights, further guarantees the independence of the missions. For 2007-
2013, the total budget for the EIDHR is €1.1 billion (approximately €157 million 
per year). On average, €30–€35 million is spent annually to fund EU EOMs. 

While the Commission is politically and financially responsible for EU election 
observation policy and for ensuring the methodology for observation, EU EOMs 
are independent in their findings and conclusions. 

Where to observe? 

EU EOMs can only be sent to countries which have invited the EU to observe 
the  elections  and  which  have  formally  accepted  the  presence  throughout  the 
country  of  observers  before,  on  and  after  election  day,  in  order  to  assess  the 
main  aspects  of  an  electoral  process.  Freedom  of  movement  for  the  observers 
and freedom of access to key aspects and actors of the electoral process are key 
elements  of  professional  election  observation.  Such  guarantees  are  usually 
codified in memoranda of understanding between the European Commission and 
the political and electoral authorities of the host country. 

The  Commission  receives  more  invitations  annually  to  send  EU  EOMs  than  it 
can  effectively  deploy  due  to  financial  and  human  resources  restrictions. 
Therefore  a  process  of  selection  of  political  priorities  has  been  established  in 
liaison with the Council and the European Parliament. The final list of priorities 
is  determined  by  the  Commissioner  for  External  Relations  and  European 
Neighbourhood  Policy,  Benita  Ferrero-Waldner,  who  is  ultimately  responsible 
for the EU election observation policy.  

The  Commission  deploys,  usually  four  months  before  election  day,  an 
exploratory  mission  to  carry  out  a  preliminary  assessment  of  the  electoral 
framework  in  the  country.  On  the  basis  of  the  recommendation  of  this 
exploratory mission, a final decision on the deployment of an EU EOM is made 
by Commissioner Ferrero-Waldner.  

In  2008,  EU  EOMs  were  deployed  to  Pakistan,  Bhutan,  Nepal,  Cambodia, 
Rwanda,  Angola,  Ecuador,  Guinea-Bissau,  Ghana,  and  Bangladesh.  An  EU 
EOM for a recall referendum in Bolivia in August 2008 was not deployed, since 
it seemed preferable instead to observe the subsequent constitutional referendum 
of 25 January 2009. 

Deciding where to send observers requires a strategic and consistent approach to 
democracy  support.  EU  EOMs  are  deployed  to  countries  where  observation  is 

EN 

161 

   EN 

 
complementary  to  the  EU’s  efforts  in  promoting  democracy  and  human  rights 
(Yemen 2006, Pakistan 2008, Bangladesh 2008) and/or where the EU is engaged 
in post-conflict stabilisation (Liberia 2005, Democratic Republic of Congo 2006, 
Timor-Leste 2007, Sierra Leone 2007, Nepal 2008). EU EOMs should also bring 
added  value  and  make  a  constructive  contribution  to  election  processes  by 
increasing voter confidence and delivering technical recommendations aimed at 
the  improvement  of  the  electoral  system.  Hence,  EU  EOMs  are  mostly  sent  to 
countries  situated  in  the  ‘grey’  zone  of  democratic  transition  or  consolidation. 
They do not go to countries where, from the outset, an election can be expected 
to  fall  substantially  short  of  international  standards,  or  on  the  contrary  to 
countries  where  democratic  practices  are considered  to  be  generally  sound  and 
election observation would have no added value.  

EU EOMs should be seen in the context of positive and long-term engagement 
with the partner country. While EU EOMs are complementary to other activities 
to  support  democratisation,  their  recommendations  on  electoral  reform  can 
contribute  to  longer-term  commitments  by  national  authorities  and  the  donor 
community to the consolidation of democracy, human rights and the rule of law.  

Who are the EU observers? 

While  the  countries  where  elections  are  to  be  observed  are  selected  by  the 
Commission in consultation with other EU institutions, the missions, under their 
Chief  Observer  are  independent  in  their  findings  and  judgment  on  an  election 
process.  EU  EOMs  are  usually  led  by  a  Member  of  the  European  Parliament, 
nominated  by  Commissioner  Ferrero-Waldner.  The  Chief  Observer  is  assisted 
by a number of analytical and operational specialists who constitute the so-called 
core  team,  managing  the  EU  EOM  activities  from  the  capital  of  the  country 
where the election is being observed. Core team members, except for the Chief 
Observer, are selected by the Commission on the basis of a call for candidates 
published on the Europa website94.  

Long-  and  short-term  observers  (LTOs  and  STOs)  complement  the  core  team. 
They are the mission's ‘eyes’ and ‘ears’ and are in principle deployed throughout 
electorally  relevant  parts  of  the  country  (see  criteria  below),  provided  that 
security  and  logistics  allow.  LTOs  usually  arrive  in  the  country  four-to-five 
weeks  before  Election  Day,  and  leave  two  weeks  after  the  vote.  STOs  are 
deployed for a few days in the country with the mandate to focus specifically on 
the polling and counting process.  

A  roster  system  has  been  established  for  the  selection  of  the  observers:  any 
European citizen interested in becoming an election observer first has to register 
in  this  roster  in  their  country.  If  his/her  profile  matches  the  requirements 
requested  for  a  specific  EOM,  his/her  name  is  forwarded  to  the  European 

94 

http://ec.europa.eu/external_relations/human_rights/election_observation/index_en.htm  

EN 

162 

   EN 

 
                                                 
Commission,  which  makes  the  final  selection  of  observers.  Observers  are 
present  in  the  country  for  10  to  12  weeks,  two  months  before  and  one  month 
after election day. Observers from Norway and Switzerland can also participate 
in  most  EU  EOMs:  these  two  countries  are  to  a  large  extent  part  of  the  EU 
election observation policy. 

is  part  of 

On election day, the EOM is often joined by an observation delegation from the 
the  EOM.  The  delegation  of 
European  Parliament,  which 
parliamentarians  is  integrated  in  the  EOM  team,  carries  out  observation  of 
voting  operations  and  it  is  associated  with  the  preparation  of  the  preliminary 
EOM  statement.  The  cooperation  with  the  European  Parliament  in  election 
observation  is  very  fruitful  and  gives  an  additional  political  dimension  to  the 
EOM, without interfering with the technical rigour of the assessment. 

Cooperation with the EU Member States is essential to the success of the EOM: 
Member States embassies and the Commission are in close and constant contact 
with the EOM and diplomats from the embassies have the possibility to join the 
mission as short-term observers. 

During their stay in the country, the EU EOMs systematically follow all aspects 
of an election and liaise with national authorities, civil society, other observers, 
both domestic and international, in order to get the maximum information and to 
act in full transparency to produce a sound and comprehensive assessment of a 
given  election.  These  activities  result  in  a  number  of  reports,  including  a 
preliminary statement issued shortly after the vote (usually within 48 hours) and 
a final report. The latter focuses in detail on the different aspects of the electoral 
process and, importantly, formulates possibilities for further improvement in the 
electoral system and process. These proposals are presented to the political and 
electoral  authorities  of  the  countries  and  to  the  various  stakeholders,  namely 
political parties and domestic observers groups. 

EU  EOMs  can  consist  of  60  to  300  observers,  depending  on  the  size  of  the 
country  and  electorate  and  the  complexity  of  the  election  process.  Five  main 
criteria are used to determine the locations for the field deployment of LTOs and 
STOs: 

–  balanced geographical coverage 
–  population centres 
–  areas of specific relevance 
–  logistical and security restrictions 

Examples of EU EOMs in 2008 

Some  EU  EOMs  deployed  in  2008  were  very  significant:  the  EU  EOM  to 
Pakistan  was  exceptional  in  terms  of  the  complexities  of  the  political  and 
security  situation.  A  carefully  prepared  and  managed  EU  EOM  contributed 

EN 

163 

   EN 

 
significantly  to  improving  the  electoral  climate,  to  the  transparency  of  the 
process and also enhanced the role of the EU in Pakistan. 

A  similar  situation  occurred  with  the  EU  EOM  to  Bangladesh.  This  had  been 
withdrawn  from  the  country  in  early  2007,  when  the  democratic  process  was 
interrupted by the intervention of the army. Its recommendations, aiming at the 
restoration  of  a  sound  electoral  framework,  were  used  as  a  reference  and 
introduced in time for the legislative elections of 29 December 2008, which were 
assessed as credible and broadly in line with international standards. Also in this 
case, the EU mission had a pivotal role for the credibility of these elections. 

The  EU  EOM  to  Bhutan  had  to  be  tailored  to  the  specificities  of  this  unique 
country. Initially cautions, the Bhutanese authorities finished by acknowledging 
the important contribution to the process by an EU EOM deployed to cover the 
first election ever held in the country. 

The  EU  EOM  to  Angola  assessed  an  electoral  process  which  was  calm  and 
peaceful  with  a  high  voter  turnout  –  significant  achievements  for  a  country 
which  had  not  held  elections  in  16  years.  However,  serious  deficiencies  were 
found  in  terms  of  a  level  playing  field  for  contestants,  organisational 
arrangements and effective pluralism in society, especially in the media. 

The EU EOM to Ghana assessed an election that was very competitive, decided 
by  very  narrow  margins  and  whose  results  were  accepted  by  all  parties.  This 
election  showed  that  African  countries  can  carry  out  elections  in  line  with 
international standards, if the political will is there and credible and professional 
institutions are in place. 

Assessment of the results of EU EOMs 

EU EOMs have enhanced the visibility of the EU in the domain of democracy 
and  human  rights  promotion.  This  is  especially  the  case,  when  the  observation 
takes  place  in  the  context  of  a  crisis  or  a  post-crisis  situation,  as  indicated  by 
recent cases (Kenya 2007, Nigeria 2007, Sierra Leone 2007, Pakistan 2008, and 
Bangladesh 2008).  

Increasing  professionalism,  a  consistent  methodology  and  tested  independence 
of  EU  EOMs  in  their  judgements  and  findings  have  contributed  to  the  EU’s 
credibility  as  an  international  observation  organisation.  The  number  of 
invitations  for  EU  election  observation  (from  countries  conducting  elections) 
and requests for EU EOMs (from EU Member States and the Commission) show 
the degree of esteem for the instrument. 

Consequently, EU EOMs enjoy a high degree of acceptance and have been able 
to operate in politically sensitive and volatile environments (for example Nigeria 
2003 and 2007, Malawi 2004, Liberia 2005, The Democratic Republic of Congo 
2006, Kenya 2007, Timor-Leste 2007, Pakistan 2008).  

EN 

164 

   EN 

 
EU EOMs have proven to be of particular importance in ACP countries where 
art. 96 consultation procedures95 were ongoing, as holding democratic elections 
is  a  fundamental  part  of  the  Cotonou  Agreement.  EU  EOM  findings  and 
conclusions in these cases can have a determining role in defining whether aid 
should be suspended, reoriented or resumed.  

Way ahead  

Intensifying  election  support  efforts  means  investing  in  capacity-building.  Due 
to  increased  international  and  European  involvement  in  elections,  Commission 
services regularly face a shortage of trained and qualified EU election experts. In 
addition,  with  the  increased  complexity  of  electoral  processes,  the  need  for 
specific  expertise  (e-voting,  security,  statistics,  minority  rights,  gender  etc.) 
accumulates.  Therefore,  priority  continues  to  be  given  to  the  training  of  EU 
EOM  team  members  and  long-term  observers  (NEEDS  III  project).  The  first 
training sessions will commence in early 2009. 

Cooperation  with  other  international  observers  adhering  to  the  Declaration  of 
Principles  for  International  Election  Observation  such  as  the  OSCE,  the 
Organisation  of  American  States,  the  African  Union,  the  Southern  African 
Development  Community,  the  Economic  Community  of  West  African  States 
(ECOWAS), 
the 
Commonwealth  could  be  strengthened.  There  is  value  in  systematically 
exchanging views on the state of the art of observation methodology, including 
making  improvements  where  needed.  Coordination  on  specific  elections  being 
observed might be enhanced. But the independence of the EU EOMs should not 
be affected by these exchanges of views.  

the  Pan-African  Parliament,  La  Francophonie  or 

Conclusion 

The  EU  election  observation  policy  is  a  concrete  example  of  a  successful 
external policy instrument where the EU brings a very specific added value and 
builds credibility in the international arena. In institutional terms, it represents an 
example  of  excellent  cooperation  between  the  Commission,  Council  and 
European Parliament. 

With the EU election observation missions, the EU has at its disposal a visible, 
concrete and rapidly deployable instrument of foreign policy, which contributes 
to strengthening democracy worldwide. 

Obviously, election observation is only part of more comprehensive support for 
the  electoral  cycle  and,  more  generally,  for  democracy.  In  fact,  election 
observation  is  complementary  and  consistent  with  election  assistance,  which  is 

95 

Article  96  concerns  consultation  procedure  and  appropriate  measures  as  regards  human  rights 
democratic principles and the rule of law 

EN 

165 

   EN 

 
                                                 
provided before an election takes place. Ideally, the recommendations of an EU 
EOM should be used as a reference for the eventual electoral assistance provided 
to  the  country  in  question.  In  this  framework,  the  EC  Delegation  has  an 
important  role  of  follow-up  of 
the  EU  EOM 
the 
recommendations, once the mission is over. 

implementation  of 

Democracy is not limited to elections: promoting democracy remains a complex 
exercise  in  which  a  more  coherent  way  ahead  going  beyond  supporting  and 
observing elections has to be further developed. 

EU  EOMs  conclusions  can  touch  on  sensitive  issues  or  give  rise  to  hostile 
reactions:  however,  since  these  conclusions  are  the  result  of  a  complex  and 
rigorous  technical  exercise,  their  coherence  is  usually  appreciated  by  a  non-
partisan public. 

The visibility of EU EOMs in the beneficiary countries is usually very high and, 
generally,  citizens  of  the  countries  observed  appreciate  EU  observation 
missions;  however,  the  Commission  encourages  the  different  missions  to 
multiply their efforts to communicate better and provide more information about 
their mandates and prerogatives. 

One remaining challenge is to make European public opinion more aware of the 
importance of election observance as a highly-visible tool of EU foreign policy, 
and of the involvement of citizens from the 27 Member States working together 
as EU observers. 

More information on the EU Election Observation Policy is available at the 
following link: 
http://ec.europa.eu/external_relations/human_rights/eu_election_ass_observ/inde
x.htm 

4. 

RESULTS 

4.1. 

Introduction 

In 2008, the Commission continued to improve the quality and performance of 
its  external  assistance.  Delivery  of  programmes  and  projects  has  been 
demonstrably  faster,  even  if  the  amounts  committed  have  risen.  EuropeAid 
monitors and evaluates the impact of its activities through:  

•  The results-oriented monitoring (ROM) system which provides an overview 
of how the project portfolio is progressing. The main question is: are projects 
and programmes on target to deliver the intended results?  

EN 

166 

   EN 

 
•  Evaluations which aim to inform the public about the results and impacts of 
activities  financed  by  EC  funds  and  which  provide  lessons  about  what  has 
worked and what has not.  

4.2. 

Project results: results-oriented monitoring (ROM) 

Introduction  

The  ROM  System  has  become  an  integral  part  of  the  implementation  of  EC 
development  assistance  activities.  It  is  a  transparent,  rapid  and  comprehensive 
review of how a project is progressing at a particular point in time. It is carried 
out on the spot in all regions of external cooperation by independent experts in 
coordination  with 
the 
Commission  in  Brussels.  Based  on  a  well-structured  and  robust  methodology, 
findings  are  presented  according  to  internationally  agreed  criteria.  These  are 
based on those of the OECD's Development Assistance Committee and are the 
following: relevance, efficiency, effectiveness, impact and sustainability. 

local  EC  Delegations,  national  stakeholders  and 

Each monitoring report contains short explanations for each evaluation criterion 
with  their  corresponding  scores  as  well  as  recommendations  for  improvements 
to  the  different  stakeholders.  After  eight  years  of  implementation,  ROM's 
usefulness is proven: 

–  At  project 

level:  ROM 

informs  stakeholders  objectively  on  project 

performance and helps project managers to think in result-oriented terms.  
–  At macro level: ROM provides statistics on overall portfolio performance to 

support management decisions.  

–  At  programming  level:  ROM  provides  qualitative  data  for  analysis  e.g.  to 

identify lessons learnt, to review specific sector performances, etc.   

ROM achievements in 2008 

As can be seen in the following table, the number of monitoring reports fell by 
22% compared to 2007. This was the result of some contractual changes in 2008 
with the external companies that implement ROM. All previous ROM contracts 
finished in December 2007, and the new companies selected needed time to set 
up their activities. For some regions such as Africa, the Caribbean and Pacific, 
the new contracts were signed between March and April 2008,  resulting in the 
first ROM missions only taking place in July. Monitoring will revert to previous 
levels in 2009 and 2010 once the new teams gain momentum. 

EN 

167 

   EN 

 
Figure 39: Overview of monitoring activites 

Overview per region 

ENPI 
East 

ENPI 
South 

Africa  Caribbean

Pacific 

Asia 
including 
Central 
Asia 

Latin 
America 

Centrally 
Managed 
Thematic 
Projects 

Total 
2008 

Total 
2007 

Change 
in % 
from 
2007 

N° countries visited 

7 

9 

17 

of  monitoring 

N° 
produced 

reports 

348 

154 

138 

of 

N° 
monitored 

national 

projects 

218 

108 

138 

N°  of  regional  programmes 
monitored 

130 

46 

0 

7 

29 

29 

0 

14 

25 

15 

55 

149 

148 

1% 

32 

278 

173 

97 

1249 

1421 

-12% 

21 

193 

154 

4 

865 

n/a 

n/a 

Million € covered* 

433 

1654 

1344 

332 

107 

800 

756 

11 

85 

19 

93 

30 

384 

n/a 

n/a 

5456 

9852 

-45% 

Estimate 
coverage 
portfolio 

actual  ROM 
of 
in  %  of  overall 

N°  of  ex  post  monitoring 
Reports 

Million € covered 

41% 

27%

13%

29% 

23%

33%

7% 22% 

43% 

-22% 

30 

38 

9 

72 

11 

50 

4 

12 

7 

3 

46 

29 

3 

139 

198 

-30% 

100 

213 

0,5 

488,5 

1466 

-67% 

EN 

168 

 
 
 
What is behind ROM data? A qualitative and quantitative performance review 
of the ROM portfolio. 

The  expressed  need  to  move  forward  from  purely  quantitative  to  more  qualitative 
analysis  of  ROM  data  was  tackled  in  2008.  Focusing  on  ex  post  ROM  reports,  a 
study assessed a total of 205 monitoring reports relating to 114 finished projects. It 
identified  17  aspects  which  are  fundamental  for  project  performance,  12  which  are 
the  most  crucial  characteristics  and/or  explanatory  causes  behind  project 
performance,  and  five  additional  issues  that  regularly  affect  central  aspects  of  the 
projects' portfolio. The following main performance causalities were identified: 

–  Project  performance  is  mainly  related  to  internal  factors,  both  among  good  and 

poor performers. Consequently they can be addressed. 

–  The  good  or  poor  performance  of  most  projects  can  be  traced  back  to  the 

identification and design phases. 

–  There is a major difference between "strategic relevance" (looking from a policy 
and strategic point of view) and "real relevance" (looking from the beneficiaries’ 
point of view). Regardless of strategic relevance, real relevance is a pre-requisite 
for good performance and ownership. 

–  Over-ambition results from the mismatch of objectives and resources rather than 

the size or ambition of the project itself. 

–  Good communications and strong internal monitoring systems are to be found in 
most  successful  projects  and  their  absence  is  always  to  the  detriment  of  the 
project. 

–  The study reveals the widespread absence of results-oriented monitoring systems 
within  all  projects.  As  a  consequence  accountability,  visibility  and  learning 
capacity  are  compromised.  Only  excellent  projects  show  a  satisfactory  use  of 
results-oriented monitoring systems. 

The  methodology  applied  in  this  study  will  be  replicated  in  the  future  to  analyse 
qualitative  aspects  of  the  project  performance  e.g.  by  region,  sector,  project  size, 
regional programmes, etc. 

Performance timeline by OECD/DAC criteria 

The  OECD's  Development  Assistance  Committee  criteria  allows  for  the  ROM's 
consistent and coherent implementation in all regions and types of projects. The use 
of international criteria is also the basis for further coordination and alignment with 
other  donors  and  partner  governments'  systems.  The  trend  in  project  performance 
continues  to  improve  slightly  as  the  timeline  below  shows96.  On  the  basis  of  the 
scoring system97, EC projects are on average performing according to plan or better. 
Efficiency,  which  has  always  scored  the  lowest,  showed  a  slightly  faster  rate  of 
improvement than the other criteria. On the other hand, relevance dropped slightly. 

Figure 40: Performance timeline 

96 

97 

Timeline data is never strictly comparable as each year the total number of projects monitored varies; 
the individual projects are different, etc. 
Scores are: a (4 points) = very good; b (3 points) = good; c (2 points) = minor problems and d (1 point) 
=  major  problems.  The  baseline  parameter  for  the  scoring  scale,  2.5  points,  has  been  defined  as 
'implementation according to plan'. Thus, a project with a score of 2.5 is fully on track and expected to 
deliver the benefits and impact planned  

EN 

169 

   EN 

 
                                                 
2.9

2.8

2.7

2.6

2.5

100%

80%

60%

40%

20%

0%

Relevance

Efficiency
Effectiveness

Impact
Sustainability

Average

2002

2004

2006

2007

2008

Overall  performance  per  project:  When  assessing  each  project’s  overall 
performance, 2008 showed an increase in the percentage of good projects as well as 
an important fall in the number of projects having major difficulties. 

Figure 41: Projects performance 

Very good performance 

Performing with problems 

Good performance 

Not performing, or having major difficulty

65%

67%

71%

21%

9%

4%

4%

21%

8%

19%

3%

6%

2006

2007

2008

Results  by  ODA  sectors:  Most  monitored  projects  fall  under  the  heading  social 
infrastructure  and  services,  which  overall  is  performing  well.  Another  important 
sector,  economic  infrastructure  and  services,  is  performing  even  better,  whereas 
production  sectors  and  multi-sector/cross-cutting  sectors  show  the  highest  level  of 
poor performing projects. 

Figure 42: Results by ODA sectors 

EN 

170 

   EN 

 
 
 
2008 by ODA 
sector 

Social 
Infrastructure 
and Services 

Economic 
Infrastructure 
and Services 

Productio
n sectors 

Multisector 
- 
Crosscuttin
g 

Commodit
y Aid and 
General 
Programm
e 
Assistance 

Emergenc
y 
Assistance 

Other 
Unallocate
d 
Unspecifie
d 

N°  operations 
monitored 

reports 

N° 
produced 

Million 
covered 

€ 

Very good (a) 

Good (b) 

Problems (c) 

S.  deficiencies 
(d) 

595 

595 

210 

164 

136 

205 

159 

134 

32 

32 

38 

37 

89 

87 

2.219 

1.169 

803 

613 

195 

193 

262 

7% 

64% 

27% 

2% 

5% 

70% 

24% 

1% 

6% 

61% 

30% 

5% 

59% 

31% 

10% 

57% 

25% 

10% 

64% 

27% 

7% 

62% 

28% 

3% 

4% 

2% 

1% 

3% 

ROM methodological developments in 2008 

For ongoing projects, the ROM methodology has been streamlined and improved, so 
as  to  better  cover  important  topics  such  as  the  mainstreaming  of  gender  and 
environmental  issues,  and  the  linkage  of  ROM  with  the  ex  ante  quality  assurance 
process  (oQSG).  To  support  the  development  and  implementation  of  the  new 
Backbone  Strategy 
for  Reforming  Technical  Cooperation  and  Project 
Implementation  Units  (PIU)98  a  review  of  the  role  played  by  PIUs  in  ongoing 
projects monitored by ROM was undertaken. The study confirmed that appropriately 
qualified  staffed  in  well-managed  PIUs  were  a  key  factor  in  the  successful 
implementation of a project. However, as the ROM methodology could not capture 
whether  the  PIU  structure  was  appropriate,  it  was  amended  in  2008  to  cover  this 
issue in future.  

A  new  methodology  to  monitor  regional  projects  and  programmes  has  been 
developed ('ROM Regional'), which captures the regional dimension of the different 
types of interventions.  

In  2006,  2007  and  2008,  more  than  530  completed  projects  were  monitored  by  the 
ROM  ex  post  methodology.  A  2007  study  examined  the  potential  benefits  of  this 
instrument,  which  confirmed  ex  post  ROM  as  a  cost-effective  and  flexible  tool.  A 
questionnaire  sent  to  70  Delegations,  revealed  a  great  demand  for  more  structured 
information on lessons learned and detailed data from ROM ex post. In addition, HQ 
staff  asked  for  more  emphasis  on  transferable  lessons  learned.  A  first  important 
answer  to  this  demand  has  been  the  study  on  causes  and  effects  for  projects 
performance cited above. 

98 

http://ec.europa.eu/europeaid/what/delivering-aid/aid-
effectiveness/documents/backbone_strategy_on_tc-pius_final_en.pdf  

EN 

171 

   EN 

 
                                                 
The ROM for sector policy systems programmes (SPSP), which implied significant 
challenges  to  the  ROM  system  and  methodology,  has  been  tested  in  all  regions, 
involving  22  programmes  monitored  with  an  overall  budget  of  €769  million.  The 
final analysis of this exercise has yet to be concluded but the first indications show 
that the adapted ROM methodology is applicable. 

Outlook for 2009 

In 2009, the new variants of the ROM methodology, developed and tested in 2008, 
will  be  applied.  However,  although  the  ROM  methodology  can  be  used  to  monitor 
SPSPs, the way in which this is to be fully applied in practice is part of the ongoing 
debate linked to the principles of the Paris Declaration and the European Consensus 
on  Development  Policy.  In  response  to  the  growing  number  of  large  multi-donor 
programmes  and  the  increasing  emphasis  on  partner  government  management  and 
monitoring of their own programmes, EuropeAid is considering the development and 
strengthening of joint monitoring mechanisms and approaches.  

The  positive  evolution  of  the  system  is  being  underpinned  by  the  development  of 
new IT tools in the Commission. 

4.3. 

Evaluation: review of the 2008 work programme 

4.3.1.  Organisation of the evaluation function 

The  evaluation  unit  in  the  EuropeAid  Cooperation  Office  has  a  joint  evaluation 
function  on  behalf  of  three  External  Relations  Directorates-General:  Development, 
External Relations and EuropeAid99. A multi-annual programme for 2007-2013 was 
approved by the Commissioner for External Relations and European Neighbourhood 
Policy,  in  agreement  with  the  Commissioner  for  Development  and  Humanitarian 
Aid, in March 2007. This programme confirmed the three main policy approaches of 
the  previous  period:  more  emphasis  on  geographical  evaluations  (partner  countries 
and  regions);  enlarging  the  scope  of  thematic  and  sectoral  evaluations;  and 
continuing to take forward evaluations of aid procedures. 

It  should  be  noted  that  the  joint  evaluation  function  is  only  responsible  for 
evaluations  covering  regional  and  sector  policies,  programmes  and  programming 
cycles and of providing methodological support for all types of evaluations. 

The  Commission  takes  into  account  the  results  of  these  evaluations  to  improve  the 
quality and impact of its external assistance. 

99 

When the last reform of external aid management took place, it was stated that "the evaluation of the 
results of regional and sectoral policies, programmes and programming performance is crucial for the 
success of the external aid policies as a whole, and needs to feed back into the programming cycle. To 
ensure objectivity, this level of evaluation should be conducted independently and serve as a feedback 
loop for the services responsible for policy, programming and implementation. The evaluation services 
would be accountable to the Group of Relex Commissioners. The Group will decide on the work 
programme of the evaluation services and act on its reports recommendations", (SEC(2000)814/5 of 15 
May 2000). The new financial instruments repeated the spirit of the evaluation mandate: "evaluation of 
the results of the regional and sectoral policies, programmes and programming is crucial for the success 
of the external aid policies." (ENPI, Article 24; DCI Article 20; IfS Article 15; and IPA Article 22; 10th 
EDF implementing regulation Article 15) 

EN 

172 

   EN 

 
                                                 
4.3.2.  The 2008 work programme 

Nine  reports  were  completed  during  the  year.  Four  were  geographical  reports 
(Guyana,  Eastern  Africa,  West  Africa,  and  a  synthesis  of  geographical  evaluations 
between  1998  and  2006);  one  was  thematic  (energy);  and  three  were  on  aid 
modalities  (aid  disbursements  through  UN  agencies,  development  banks  and  civil 
society). An 'issue paper' on the methodology for evaluating budget support was also 
delivered. Full texts of these reports are available on the evaluation website100. 

Twelve new evaluations were initiated in 2008. Ten concerned individual countries: 
Botswana,  Burkina  Faso,  Egypt,  El  Salvador,  Namibia,  Nicaragua,  Niger  (jointly 
with  four  Member  States)  Nigeria,  Tunisia,  Vietnam.  The  other  two  dealt  with 
conflict prevention and peace building, and employment and social inclusion. 

Eleven evaluations launched in 2007 were still ongoing at the end of 2008: Angola, 
ASEAN,  Central  African  Republic,  Chad,  Laos,  Malaysia,  MEDA  Regulation, 
Thailand, Uganda, education, and health and poverty diseases. 

With  regard  to  dissemination  and  feedback  mechanisms,  three  seminars  were 
organised  in-country  to  discuss  the  evaluation  report  findings  for  Guyana,  Pacific 
Islands  (Fiji)  and  Chad.  A  further  three  seminars  were  organised  in  Brussels  to 
present  evaluation  findings  on  energy  and  the  channelling  of  aid  through  UN 
agencies  and  development  banks.  The  'fiches  contradictoires'  (which  follow-up  on 
earlier  evaluation  recommendations)  were  published  for  the  reports  on  Ghana,  the 
private sector, micro-projects, governance and statistical support. 

4.3.3.  Results from evaluations finalised in 2008 

Guyana:  The  evaluation  report  covers  the  period  1997-2007.  The  study  concludes 
that  the  EC  cooperation  strategy  is  largely  relevant  to  partner  needs.  Nevertheless, 
several Commission operations were not sufficiently integrated in a clear and explicit 
strategy, with sea defences a notable example. Most Commission interventions have 
achieved  their  outputs  but  the  global  impact  of  these  activities  is  limited. 
Sustainability  of  Commission  operations  is  weak  because  there  is  often  no  exit 
strategy.  The  efficiency  of  programme  implementation  has  been  constrained  by 
weaknesses in institutional set-ups and delays. 

Eastern  and  Southern  Africa  and  Indian  Ocean:  The  8th  and  9th  EDF  regional 
strategies  are  relevant,  especially  for  trade.  They  represent  the  most  important 
external  programme  in  support  of  regional  integration.  The  Commission's  added 
value  is  evident  in  promoting  regional  integration.  However,  there  are  no  explicit 
linkages  between  the  national  and  regional  strategies  and  there  is  a  lack  of 
coordination in their implementation. There are significant impacts in sectors such as 
trade,  regional  integration,  transport  and  natural  resources  management.  The 
Commission,  despite  its  major  added  value,  and  its  strategic  potential  to  support 
conflict  prevention,  resolution  and  management,  is  ill-equipped  presently  to  do  so. 
EC  operations  are  becoming  more  visible,  strategic  and  effective,  despite  the 
persistence of significant efficiency and management problems. 

100 

http://ec.europa.eu/europeaid/how/evaluation/index_en.htm 

EN 

173 

   EN 

 
                                                 
West Africa: EC cooperation in the West Africa region during the period 1996-2007 
was  considered  relevant,  notably  in  the  transport  sector.  EC  cooperation  has  added 
value  to  the  regional  integration  process  by  focusing  its  aid  on  institutional 
development.  With  the  exception  of  transport,  coherence  and  complementarity 
between the regional and national strategies was weak. Strategies outlined in the 8th 
and 9th EDF did not generate the expected effects on the regional programmes. At the 
end  of  the  evaluation  period,  new  measures  were  set  up  to  clarify  and  improve  the 
performance  of  the  regional  strategy.  However,  because  a  time  lag  is  required  to 
measure  real  impact,  the  effects  of  these  changes  cannot  be  quantified  or  even 
described.  Efficiency  was  also  weak  because  of  poor  programme  management 
processes and long delays. 

Synthesis of geographical evaluations (1998-2006): The evaluation report assesses 
the  evolution  of  evaluation  methodology  used  for  complex  evaluations  and 
summarises  the  main  conclusions  and  recommendations  from  related  evaluation 
reports. The Commission's approach to evaluation was modified from 2001, and only 
stabilised  in  2006.  Evaluation  reports  completed  during  this  period  respond  well  to 
six  of  the  quality  criteria,  with  three  other  quality  criteria  requiring  improvement 
(clarity of the report, design of the evaluation and analyses of data). The quality of 
evaluation reports was uneven. The evaluation reports contain some common trends:  
•  The Commission's strategy is considered uneven in some cases;  
•  Coherence between Commission instruments needs to be improved;  
•  Thematic  coverage  is  generally  relevant,  demonstrating  impact  but  with  poor 

sustainability;  

•  Cross-cutting  issues  (gender,  environment  and  human  rights)  need  to  be  better 

mainstreamed;  

•  Implementation  of  EC  support  is  a  concern  in  all  the  evaluation  reports 
(cumbersome procedures, long delays and weak management) and is made worse 
by poor institutional memory. 

Energy:  The  evaluation  report  covers  the  period  1996-2006  for  all  external 
cooperation  partner  countries.  The  study  was  organised  around  three  clusters  of 
objectives: access to energy for poverty reduction in partner countries, nuclear safety 
and  security  of  EU  energy  supply.  This  evaluation  concluded  that  while  EC- 
supported  interventions  are  often  relevant,  they  do  not  result  from  a  systematic 
approach  that  is  aimed  at  maximising  their  contribution  to  EU  goals.  The 
Commission was among the first international donors to invest in nuclear safety. But 
its  role  in  other  energy  sectors  remained  more  limited.  The  effectiveness  of  the 
Commission's nuclear activities is tangible. However, its impact on overall safety is 
hard to assess, especially on enhancing the safety culture. A large part of the limited 
resources  dedicated  to  activities  targeting  and  supporting  security  of  EU  energy 
supplies  was  spent  on  investment,  with  the  effects  and  impacts  yet  to  be 
demonstrated. A few EC operations (mainly pilot projects) have directly contributed 
to reducing carbon emissions. 

Channelling  aid  through  the  organisations  of  the  UN  family:  Funds  channelled 
through the UN bodies have dramatically increased from 2001, reaching €1 billion in 
2005  and  2006.  Both  the  Commission  and  UN  agencies  have  benefited  from  this 
through  a  financial  and 
increased  cooperation,  which  has  been  facilitated 
administrative framework. The EC has taken a pragmatic, rather than a structural and 
strategic, approach, treating UN bodies as partners and working with them on an ad 

EN 

174 

   EN 

 
hoc basis. There has been a positive impact at the partner-level for the majority of the 
EC funding through the UN, with the Commission able to maintain its visibility with 
partner countries. However, new strategic communication needs to be considered and 
visibility  must  be  reinforced  at  headquarters  and  with  the  general  public.  The 
Commission needs a mechanism or structure that can generate a comprehensive view 
of UN interventions and analyse information covering this aid delivery mode. 

Channelling  aid  through  development  banks  and  the  EIB:  Funds  channelled 
through  the  World  Bank  and  the  European  Investment  Bank  have  substantially 
increased  since  2001,  reaching  €650  million  in  2006.  Channelling  funding  through 
the WB or the EIB serves different functions. Channelling aid through the EIB was 
carried out within the framework of strategic EU cooperation agreements for a range 
of grant-based financial instruments. On the other hand, funding via the WB was on 
a  case-by-case  basis,  covering  a  broad  range  of  development  issues  and  global 
initiatives.  Both  the  Commission  and  the  banks  have  benefited  from  their 
cooperation.  Impact  in  partner  countries  has  been  positive  for  most  Commission 
funding through the banks. The one difficult area which produced mixed results, was 
funding to WB single-donor trust funds. Whilst the Commission was able to maintain 
its  visibility  at  the  partner country level, it was low at  headquarters and among  the 
general  public.  Commission  internal  organisation  has  not  adapted  itself  to  the 
substantial increases  in  aid  channelled  through  development banks.  This is coupled 
with a lack of knowledge on this particular aid procedure within the Commission. 

EC  aid  delivery  through  civil  society  organisations  (CSOs):  While  the 
participatory development agenda adopted by the EC in 2000 is gradually affecting 
the  CSO  channel,  the  Commission  has  not  yet  developed  a  clear  and  consistent 
strategy  on  how  to  use  this  channel  to  meet  its  stated  policy  objectives.  Moreover, 
the  prevailing  culture  within  the  Commission  is  not  conducive  to  strategic 
management of the CSO delivery channel because of a number of disincentives:  

•  limited political backing  
•  the administrative priority towards disbursing funding, the financial control of aid 

and focus on short-term results;  

•  the lack of space to establish strategic partnerships with CSOs;  
•  institutional fragmentation at both the headquarters and Delegation level.  

The CSO channel has had positive effects at project level but questions remain about 
the sustainable impact of these activities. The added value of the CSO channel is not 
sufficiently used by the Commission, while good practices are not underpinned by a 
coherent and consistently-applied strategy throughout all its external services. 

Evaluating Budget Support: A group of three experts has been asked to produce a 
specific approach for evaluating budget support. The main objective is to assess the 
chain  of  impacts  for  this  instrument.  The  experts  have  proposed  a  three-step 
approach. The first step focuses on the relevance of the inputs provided, looking at 
their  direct  outputs,  while  assessing  the  quality  and  adequacy  of  changes  in  the 
government  system  (i.e.  induced  outputs).  The  second  step  provides  exhaustive 
information  on  the  extent  to  which  development  results  targeted  by  budget  support 
were  achieved  in  the  partner  country  and  what  the  determining  factors  were.  The 
final step aims to assess the contribution of budget support to factors that have had a 
key role in determining the success or failure of government strategy in the partner 

EN 

175 

   EN 

 
country. It also combines and compares the results of the first and second steps. This 
'issue  paper'  has  been  submitted  to  the  evaluation  expert  group  within  the 
OECD/DAC and faced scrutiny by an ad hoc group to assess its feasibility. 

4.3.4. 

Synthesis of main lessons learned 

–  The relevance of EC programming and implementation is generally good: the EC 
addresses  the  needs  of  partner  countries  and  remains  coherent  with  the  goals  of 
the EU. 

–  Effectiveness  is  good  for  most  activities.  The  expected  outputs  are  in  general 
delivered  but  there  is  a  lack  of  attention  to  sustainability  in  implementation 
because  there  is  too  little  attention  to  exit  strategy  when  the  activities  are 
designed. 

–  EC interventions do generate impacts: as demonstrated in the nuclear field, or by 
several country-level  evaluations and  the evaluations on channelling  aid  through 
development banks and UN bodies. However, internally there is a general lack of 
knowledge on the results of these interventions. 

–  The weakness of aid efficiency is highlighted in all the reports. This is mainly due 
to  delays  in  implementation,  cumbersome  procedures,  and  weak  management. 
This also limits the effectiveness of EC actions. 

–  The Commission has a clear added value in its regional programming. However, 
linkages  remain  between  national  and  regional  programming  and 

weak 
implementation. 

–  Certain modalities for delivering aid have emerged. These channel large amounts 
of EC funds and have generally given positive results. However, the Commission 
lacks  a  comprehensive  view  of  activities  under  these  emerging  modalities  and 
urgently needs a structure for analysing information and learning new lessons. 

–  These  emerging  aid  modalities  have  maintained  the  visibility  of  EC  activities  at 
partner country level but there is not enough awareness at the general public and 
headquarters level. 

–  Most  evaluations  point  out  the  necessity  for  the  Commission  in  certain  cases  to 
develop  a  more  global  strategy,  both  in  programming  and  in  implementation. 
Areas where more thought needs to be given include: synergy between activities; 
mix of modalities for delivering aid; and coherence between country and regional 
aid. 

4.3.5.  Outlook for 2009 

The  evaluation  programme  for  2009  will  follow  the  path  laid  down  in  the 
multiannual  evaluation  programme  for  2007-2013.  The  following  evaluations  are 
planned  to  be  launched:  12  geographic  evaluations  (Djibouti,  Dominican  Republic, 
Ethiopia,  Honduras,  Liberia,  Maldives,  Pakistan  (or  Nepal),  Philippines,  Overseas 
Countries and Territories, Sri Lanka, Senegal (jointly with Spain) and Ukraine); five 
thematic  evaluations  (support  for  the  decentralisation  process,  respect  of  human 
rights  and  fundamental  freedoms,  visibility  of  EU  external  action,  judicial  and 

EN 

176 

   EN 

 
security  sector  reform  and  aid  to  basic  products)  and  one  evaluation  on  technical 
assistance. Setting up a common methodology for evaluating budget support will be 
pursued with other donors. 

5. 

AID MANAGEMENT 

5.1. 

Introduction 

The  Commission  has  sought  to  raise  its  standards  in  recent  years  for  aid 
implementation, quality control, accountability and results monitoring. It has moved 
towards new and simpler processes and to more dynamic forms of partnership with 
beneficiaries and with other donors. It has simplified its procedures and clarified the 
rules for delivery and implementation. 

The  Commission’s  progress  has  been  recognised  by  its  peers,  in  particular  by  the 
OECD  Development  Assistance  Committee.  The  DAC  2008101  survey  showed  that 
the  EC  was  performing  above  the  average  of  all  surveyed  donors  against  the 
indicators of the Paris Declaration on aid effectiveness. 

A comparative study102 also revealed that EC operations are well in line with those of 
other leading donors. The EC time frame of operations, from start of programming to 
start  of  operations  is  comparable  to  these  donors  (120  weeks  for  the  EC  and  for 
DFID, 122 for AFD, 100 for SIDA), although the nature of the EU decision making 
process  creates  a  longer  approval  period.  The  duration  of  the  contracting  phase  is 
very similar to that of the surveyed donors. 

The positive trend which is emerging is the consequence of a consistent effort made 
over  the  last  few  years  to  take  into  consideration  results  of  evaluations  which 
systematically  pointed  to  implementation  delays,  complicated  procedures  and  more 
generally lack of efficiency as the main weaknesses of Commission managed aid. In 
2008, efforts concentrated especially on: 

•  A reform of EuropeAid's technical cooperation and project implementing units to 

improve aid effectiveness. 

•  A  simplification  of  procedures  with  the  alignment  of  EC  budget  and  EDF 

procedures for awarding procurements and grants. 

•  A growing use of budget support. Budget support has become the EC's preferred 
aid modality as it helps increase local ownership and reduce transaction costs. 

•  The  development  of  skills  and  capacity  of  staff  involved  in  delivering  external 
assistance at HQ and delegation level. EuropeAid has become a front runner in the 
delivery of training. 

101 
102 

http://www.oecd.org/document/0/0,3343,en_2649_15577209_41203264_1_1_1_1,00.html  
http://ec.europa.eu/europeaid/what/delivering-aid/documents/final_comparative_study_en.pdf  

EN 

177 

   EN 

 
                                                 
•  An  extension  of  the  quality  control  process:  99%  of  projects  and  programmes 
have  been  screened  by  the  Quality  Support  Group  at  identification  and 
formulation stage.  

•  A stronger cooperation with  other donors: the proportion of EuropeAid’s  annual 
commitments delivered through International Organisations has risen significantly 
over  the  last  five  years,  and  lessons  are  being  learnt  from  this  type  of 
management. Co-financing opportunities are also now operational. 

5.2. 

Developments in aid delivery modalities and channels 

The EC Approach to Aid Delivery 

In  line  with  the  international  commitments  on  Aid  Effectiveness  and  the  Accra 
Agenda for Action agreed in September 2008, the European Commission is a leader 
in the use of budget support and the sector approach to deliver its external assistance. 
European external assistance is implemented through three main delivery modalities, 
the  choices  depending  on  a  joint  Commission/government  analysis  of  the  country 
and sector environment. 

the  orientations  of 

At a policy level, the sectoral approach and the use of budget support as a preferred 
aid  modality  also  follow 
the  European  Consensus  on 
Development,  which  states  that  “where  circumstances  permit,  the  use  of  general  or 
sectoral budget support should increase as a means to strengthen ownership, support 
partner’s  national  accountability  and  procedures,  to  finance  national  poverty 
reduction  strategies  (PRS)  and  to  promote  sound  and  transparent  management  of 
public finances”.  

The sector approach, where a sector policy support programme (SPSP) is used, aims 
to  underpin  an  agreed  sector  policy  and  a  realistic  strategic  framework  monitored 
through  performance  criteria  and  indicators.  SPSPs  may  be  financed  by  (i)  sector 
budget  support  (SBS),  with  funds  transferred  to  the  national  treasury  of  the 
beneficiary  country;  (ii)  pooling  funds  with  beneficiary  governments  and  other 
donors, or (iii) project procedures using EC procurement and grant award processes. 
The EC also supports national or macro-level goals expressed in national policy and 
strategy  documents  (such  as  a  poverty  reduction  strategy  paper).  This  support  is 
financed  through  general  budget  support  (GBS),  with  funds  transferred  to  the 
national  treasury of  the  beneficiary country.  It  is  usually  accompanied  by  capacity-
development activities, generally in the area of public financial management. 

The  project  approach  is  used  in  situations  such  as  support  to  non-state  actors  and 
regional  programmes,  or  where  conditions  do  not  allow  for  complete  use  of 
government systems, for example in conflict or post-conflict situations. Projects are 
implemented using the EC’s procurement and grant award procedures. 

5.2.1.  The 'Backbone Strategy' for reforming Technical Cooperation  

During  2008,  the  Commission  worked  intensively  to  prepare  the  reform  of  its 
technical cooperation and projects implementation units. Following a wide process of 
consultation  with  European  Commission  Delegations,  partner  countries  and 
Members  States,  the  so-called  backbone  strategy  was  adopted  in  July.  This  work 

EN 

178 

   EN 

 
builds  on  the  findings  and  the  recommendations  of  the  Special  Report  on  the 
Effectiveness of Technical Assistance in the context of Capacity Development issued 
in  2007  by  the  European  Court  of  Auditors.  The  strategy  is  fully  in  line  with  EC 
commitments on aid effectiveness and the Accra Agenda for Action with respect to 
capacity development.  

The  strategy  provides  a  clear  vision  and  a  set  of  principles  including:  focus  on 
development  of  local  capacity,  demand-led  approach,  partner  country  ownership 
throughout  the  management  cycle  of  operations,  strong  result  orientation.  Special 
attention  is  paid  to  innovative  options  for  the  provision  of  technical  cooperation 
including the use of national and regional resources and of public sector expertise, as 
well as various forms of Twinning arrangements. 

The  backbone  strategy  is  supported  by  a  detailed  and  ambitious  work  plan  which 
describes  the  actions  to  be  taken  at  headquarters  and  country  level  in  the  short, 
medium and long term. The preparation of an online platform has been launched to 
facilitate and to follow the implementation of the strategy and open up dialogue with 
a broad range of stakeholders in the area of capacity development. 

5.2.2.  Budget support 

The  proportion  of  development  aid  implemented  in  the  form  of  budget  support 
continued  to  grow  in  2008.  During  the  year,  the  total  amount  of  budget  support 
commitments represented around 39% (€3.86 billion) of all commitments from both 
the EC budget (27%) and the EDF (more than 50%).  

Funds are provided either as general budget support or sector budget support where 
the focus is on one sector. In 2008, total GBS commitments represented 60% of new 
budget  support  operations  and  amounted  to  €2.3  billion.  GBS  programmes  were 
entered  into  with  21  ACP  countries,  two  Asian  countries  (Laos  and  Vietnam),  and 
one  Latin  American  country  (Honduras),  as  well  as  with  St.  Kitts  and  Nevis  under 
the sugar thematic budget line of the DCI. However, two thirds of the amount went 
to  the  seven  ACP  countries  benefiting  from  an  MDG  contract103.  This  type  of 
contract was developed in close cooperation with partner governments and Member 
States to allow the provision of more predictable, longer-term assistance. 

During 2008, the use of SBS to deliver aid increased. It also diversified the type of 
sectors  covered  especially  in  countries  outside  the  ACP  region104.  Total  SBS 
commitments  amounted to €1.5 billion in 2008, about 40% of new budget support. 
SBS  operations  represented  18%  of  new  budget  support  commitments  for  the  ACP 
region,  nearly  60%  for  Asia,  and  up  to  100%  for  South  Africa  and  the  countries 
benefiting  from  the  ENPI.  In  these  latter  two  cases,  budget  support  operations  are 
concentrated  in  areas  such  as  justice,  legislative  support,  energy,  trade  and 
competitiveness. In Asia, most of the commitments were made in the social sectors. 
In  Latin  America,  four  new  SBS  operations  have  been  approved  on  water 
management,  education  and  employment.  Although  in  ACP  countries  the  share  of 
SBS  remains  more  limited  and  focused  on  traditional  sectors  (roads,  health  and 

103 
104 

Burkina Faso, Ghana, Mali, Mozambique, Rwanda, Uganda and Zambia 
For the purpose of this document South Africa is treated separately from the ACP region 

EN 

179 

   EN 

 
                                                 
education), some new sectors (justice, professional training, decentralisation) are also 
emerging. 

Evaluating the impact 

As  budget  support  has  become  the  Commission's  preferred  aid  modality,  reflecting 
its  results-led  approach,  demand  for  tangible  results  is  increasing.  Evaluations  of 
budget  support  operations  must  look  closely  at  the  extent  to  which  budget  support 
has  contributed  to  achieving  sustainable  results.  This  is  however,  difficult  to 
evaluate,  as  budget  support  funds  become  part  of  the  total  budget  available  to  a 
government.  It  is  thus  most  problematic  to  'attribute'  any  results  to  the  origin  of 
funds.  Previous  evaluation  methodologies,  such  as  the  one  developed  by  the 
OECD/DAC fell short of evaluating results (i.e. outcomes and impacts) and focused 
more on processes and factors contributing to results. 

For this reason, the Commission is currently developing, in consultation with other 
donors and Member States, a comprehensive methodology for the evaluation of both 
general  and  sector  budget  support  operations  at  country  level.  The  proposed 
methodology consists of a three-step approach: 

1. evaluate the impact of budget support on government policy and processes; 
2. assess (identify) the results of government policies; 
3. try to assess the contribution of budget support to the factors that have had a key 
role in determining the success or failure of the government policy.  

This methodology will be tested on a few selected pilot countries in 2009-2010 and 
will  subsequently  be  further  refined.  The  ultimate  objective  is  to  systematically 
conduct joint evaluations of general and sectoral budget support programmes. 

In 2008, a comprehensive overview of EC general budget support programmes was 
undertaken.  The  purpose  was  to  examine  the  variable-tranche  mechanism  and  its 
related  performance  indicators.  This  study  covered  46  programmes  implemented  in 
27 ACP countries during the period 2004-2007. It reveals that on average 70% of the 
variable  tranche  was  disbursed  which  is  an  indication  that  targeted  results  were 
achieved at a fairly high level. Most of the indicators of these variable tranches were 
output indicators in public finance management, health and education. 

Public finance management 

To  be  eligible  for  budget  support,  countries  are  required  to  have  national  and/or 
sector  development  and  macro-financing  policies  and  strategies  in  place  (or  under 
implementation).  In  addition,  the  fulfilment  of  specific  performance  indicators 
determines the amounts disbursed. The area of public finance management (PFM) is 
the  third  eligibility  criteria.  It  is  essential  to  demonstrate  that  the  EU  taxpayers' 
money  is  utilised  by  the  partner  governments  in  an  accountable  manner  for  the 
benefit of the population. However, even when a PFM system is regarded as weak, a 
country  can  receive  budget  support  to  strengthen  its  PFM  system.  What  matters, 
therefore,  is  the  existence  of  a  credible  strategy  for  reform  and  the  country's 
commitment to achieve positive results over time. This is what the Commission calls 
the 'dynamic approach'. 

EN 

180 

   EN 

 
As with most other donors (including the Bretton Woods Institutions), the European 
Commission uses an initial PFM diagnosis as the baseline against which progress is 
measured  over  time.  The  Public  Expenditure  and  Financial  Accountability  (PEFA) 
assessment, developed with other donors, is the preferred tool. It is established on a 
country-by-country  basis.  The  suggestion  by  the  European  Court  of  Auditors  to 
specify  minimum  PFM  standards  that  are  uniformly  applicable  to  all  countries  was 
deemed inappropriate by the Commission. It cited a lack of internationally-accepted 
standards,  and  the  highly  inter-related  nature  of  PFM  reforms,  combined  with 
different  starting  points,  critical  paths  and  sequencing  of  reforms.  However,  the 
Commission  considers  that  in  particular  when  dealing  with  fragile  states,  it  must 
work closely with the international donor community and manage the ensuing risks, 
typically  by  requiring  the  existence  of  an  IMF  programme  addressing  basic  issues 
such as cash management, revenue and expenditure framework, and treasury control. 
From June 2005 to the end of 2008, PEFA assessments were carried out in 55 ACP 
countries.  All  ACP  countries  and  almost  all  countries  in  the  rest  of  the  world 
benefiting from EC budget support had completed a PEFA assessment by end-2008. 

In  order  to  get  a  clear  overview  of  PFM  monitoring  systems  in  countries  where 
general  budget  support  was  in  place  between  2004  and  2007,  the  Commission 
contracted  a  study  in  2008  to  examine  the  coherence  between  (i)  the  initial  PFM 
diagnoses,  (ii)  the  disbursement  conditions  and  PFM  indicators  used  in  EC  general 
budget  support  programmes,  and  (iii)  any  capacity  development  programmes 
financed  by  the  EC  in  the  field  of  PFM.  This  study  showed  close  links  between 
comprehensive PFM reform programmes and good PFM policy dialogue between the 
government and the donors. In this context, budget support offers a good platform for 
this  PFM  dialogue  and  often  fosters  governments'  interest  in  PFM  reform.  In 
addition,  PFM  reform  cannot  be  ‘bought’  by  budget  support  conditions  but  can  be 
better  obtained  through  gradual  building  up  of  mutual  trust  and  respect  through 
policy dialogue. 

Against this background, the Commission committed itself to make the provision of 
budget support more effective and transparent with the help of the following plan of 
action. 

The  Commission  will  strengthen  PFM  assessments  and  improve  the  structure  and 
formalisation  of  the  financing  agreements  with  partner  countries  at  the  formulation 
stage, which includes:  

•  a  clearer  identification  of  PFM  weaknesses  and  risks,  as  a  basis  for  the 

determination of a baseline,  

•  an explicit identification of root causes,  
•  a more detailed analysis of the credibility of the strategy,  
•  setting  out  the  expected  results  in  the  short,  medium  and  longer  term  from  the 

ensuing PFM reform strategy. 

In fragile and post-conflict countries, the provision of budget support may require the 
existence  of  some  ultra-basic  elements  that  need  to  be  further  elaborated  (e.g.  the 
existence  of  basic  expenditure  and  revenue  framework,  cash  management  and 
treasury  control  function).  This  work  entails  close  collaboration  with 
the 
international donor community (in particular, the Bretton Woods Institutions). 

EN 

181 

   EN 

 
The Commission believes that transparency and accountability are essential elements 
for development results. Therefore, the Commission agrees to improve its reporting 
system on budget support (regular, comprehensive information on volume, allocation 
and results of development expenditure), in line with the Accra Agenda for Action, 
in a common EU approach (Commission and the Member States).  

In relation to fragile states, the Commission has begun to develop detailed guidelines 
regarding  the  macroeconomic  frameworks  for  implementing  budget  support 
programmes  under  such  conditions.  This  work  is  also  being  carried  in  close 
collaboration  with  the  international  donor  community  (Bretton  Woods  Institutions, 
OECD/DAC and EU Member States). While the Commission is awaiting the detailed 
IMF analysis to define its response to the financial crisis, increased budget  support 
operations  can,  however,  be  expected  in  the  context  of  additional  financing 
requirements for developing countries. The Commission will furthermore continue to 
develop  the  frameworks  necessary  to  ensure  that  in  particular  the  needs  of  fragile 
states are met. 

5.3. 

Progress on qualitative issues in aid management 

Methodological work and training  

Developing  the  skills  and  capacities  of  key  actors  involved  in  the  design  and 
implementation  of  EC-funded  programmes  is  a  key  contributor  to  improving  their 
quality, impact and sustainability. The Commission is investing in the development 
of  the  capacity  of  its  staff  and  other  stakeholders  involved  in  delivering  external 
assistance  through  methodological  work.  In  2008,  particular  attention  was  paid  to 
meeting  the  challenges  of  supporting  public  financial  management  reforms. 
Moreover  two  new  reference  documents  have  been  finalised  in  the  Tools  and 
Methods Series 105: 

–  Sector  Approaches  in  Agriculture  and  Rural  Development:  this  document 
completes  the  EC  Guidelines  Support  to  Sector  Programmes  by  offering 
additional guidance and references with respect to programme-based approaches 
in agriculture and rural development.  

–  Analysing  and  Addressing  Governance  in  the  Sector  Operations:  this  document 
aims  to  strengthen  the  understanding  of  governance  issues  at  sector  level  and  to 
increase  the  capacity  of  Commission  staff  to  analyse  and  address  governance  in 
designing and managing EC support to various sectors. 

A major area of work has been the preparation of the new Guidelines on Technical 
Cooperation,  supporting  the  implementation  of  the  EC  strategy  on  technical 
cooperation by offering operational guidance on programme design and management 
(See section 5.1.1.). 

Among donors, EuropeAid is a front-runner in the development of training in various 
areas related to sector approaches, such as public financial management, institutional 
analysis  and  capacity  development,  applied  macroeconomics,  decentralisation  and 

105 
http://ec.europa.eu/europeaid/infopoint/publications/index_en.htm  

All these documents are accessible to the public on the EuropeAid internet site   

EN 

182 

   EN 

 
                                                 
public sector reform. In 2008, over 2 000 participants attended more than 96 sessions 
of  methodological  courses  held  in  Brussels  and  various  partner  countries.  New 
training launched in 2008 included courses on the 'growth challenges'; aid delivery in 
fragile states; supporting PFM reforms and sequencing; introduction to public sector 
reforms; cultural dimension in development.  

In  2008,  EuropeAid  continued  its  active  involvement  in  the  Joint  Donor's 
Competence  Development  Network,  known  as  Train4Dev.  EuropeAid  again  chairs 
the  network  for  the  period  2008-2009.  The  goal  of  Train4Dev  is  to  promote  the 
implementation  of  the  Paris  Declaration  through  joint  learning  events  addressed 
above  all  to  donors'  staff.  One  example  is  the  joint  learning  programme  on  Sector-
Wide Approaches (SWAp), coordinated by EuropeAid: 20 learning events with more 
than  1  000  participants  (donors  and  key  representatives  of  governments  and  civil 
society). Joint learning programmes have proven to be relevant and very successful 
in supporting sector processes and the aid-effectiveness agenda.  

Quality of operations design  

The  Commission  has  developed  a  structured  system,  the  office  Quality  Support 
Group  (oQSG)  to  screen  and  support  the  quality  of  operations  at  the  stages  of 
identification and formulation. In 2008, the coverage ratio of the oQSG reached 99% 
of  projects  and  programmes  approved  by  EuropeAid.  This  peer  review  mechanism 
screened  1  128  identification  and  action  fiches  in  2008,  representing  an  overall 
increase of 27% in the number of design documents submitted to this quality support 
process. 

Although the number of projects covered by the oQSG has increased in the past two 
years,  EuropeAid  believes  that  the  support  provided  by  the  oQSG  process  can  be 
further  improved.  Therefore  an  analysis  of  the  system  was  carried  out  in  the  first 
quarter of 2008. The conclusions of this analysis were validated by an internal audit. 
While  positive  about  the  contributions  of  the  oQSG  to  improving  the  design  of 
operations, the audit nevertheless proposed recommendations to further reinforce the 
support  provided.  On  the  basis  of  the  analytical  study  and  the  audit,  two  reviews 
have been initiated: the first on methodology and the second on the use of IT. 

The  methodological  review,  carried  out  by  a  working  group,  aims  to  improve  and 
rationalise the oQSG process through: 

–  Operation planning and inception; 
–  The organisation of the oQSG process; 
–  Project/programme  quality  analysis  (more  in-depth  and  better  justification)  and 

the way feedback is given; 
–  The oQSG reporting system. 

In parallel, following an internal IT review of the oQSG, the decision was taken to 
prepare a proposal to develop an IT platform for recording, analysing and reporting 
information  generated  through  the  oQSG  process.  The  aim  is  to  increase  the 
efficiency and effectiveness of the process and ultimately the quality of the projects 
reviewed.  The  review  mapped  the  oQSG  process  and  proposed  a  process  re-
engineering.  Furthermore,  the  need  to  build  a  common  IT  platform  linking  all  the 
quality support, monitoring and project evaluation tools into a unified project for the 

EN 

183 

   EN 

 
quality cycle has become obvious. Therefore a quality platform was included under 
EuropeAid's Schema Directeur as a high priority project for 2009-2010. 

Development in working with indicators 

The Commission has launched a pilot exercise to test the relevance of using lists of 
standard indicators to be included in the projects submitted for analysis to the quality 
support  groups  (except  for  budget  support  actions  and  calls  for  proposals).  The 
objective  is  to  include  standard  indicators  into  reporting.  After  one  year  of  testing 
and on the basis of a sample of 145 projects, the preliminary conclusions are that the 
method,  as  it  stands,  does  not  yet  fully  meet  the  objectives,  due  to  a  number  of 
technical factors106 and to the consequences of this exercise observed in the field on 
the principles of ownership and alignment.  

The Commission is in the process of analysing data and drawing the full conclusions 
of this pilot phase in order to decide on the necessary adjustments, and on the best 
way to follow up the pilot exercise. 

5.4. 

Simplification of procedures 

The  introduction  of  the  new  instruments  on  external  cooperation  under  the  EC 
general  budget  for  the  period  2007-2013  on  one  hand  and  of  the  10th  EDF  on  the 
other completed a five-year process to rationalise and simplify rules and procedures. 
The  final  step  was  the  entry  into  force  of  the  new  Annex  IV  of  the  Cotonou 
Agreement  which  aligns  EDF  procedures  for  awarding  contracts  and  grants  and 
performing  contracts  with  those  of  the  EC  budget,  while  preserving  the  ACP 
preferences107.  The  work  on  unifying  EDF  templates  and  those  used  for  actions 
financed by the general budget of the EU was achieved and the new Practical Guide 
(PRAG 2008) contains the unified set of rules108.  

The  simplification  at  the  conceptual  and  legal  level  was  reflected  in  new 
implementation  methods.  Following  the  modifications  to  the  financing  regulation 
and  the  legal  tools  just  mentioned,  the  way  is  now  open  for  the  Commission  to 
delegate tasks to national public and private bodies with a public service mission and 
for the Commission to receive and manage funds from other donors. Following these 
new  possibilities,  EuropeAid  has  put  into  practice  the  concept  of  co-financing  by 
drawing up the corresponding guidelines and model agreements. In this manner, the 
Commission  can  become  an  active  partner  for  co-financing,  in  line  with  Paris 
Declaration and the European Consensus on Development. 

Hence  the  new  adjustments  in  the  financial  and  legal  instruments,  triggered  by  the 
Commission,  allow  now  for  a  more  integrated,  cost-effective  and  rapid  delivery  of 
development assistance. 

106 

107 

108 

Such as the difficulty of calculating the likely developments in a given country or region in the presence 
and absence of the EC intervention - the final values with and without the project - and the difficulty of 
providing data due to the non availability or inaccuracy of statistics 
Decision No 3/2008 of the ACP-EC Council of Ministers of 15.12.2008 to adopt amendments to Annex 
IV to the ACP-EC Partnership Agreement 
Further  information  on  the  Practical  Guide  to  contract  procedures  for  EC  external  actions: 
http://ec.europa.eu/europeaid/work/procedures/implementation/practical_guide/index_en.htm  

EN 

184 

   EN 

 
                                                 
5.5. 

Cooperation with international organisations and other donors 

Cooperation  and  partnership  with  the  UN  and  the  World  Bank  have  remained 
significant, with contributions from EuropeAid amounting to €670.85 million to the 
UN  and  €267.2  million  to  the  World  Bank  in  2008.  The  UN  and  the  World  Bank 
continue  to  work  with  the  Commission  to  support  programmes  in  areas  such  as 
election  monitoring  and  assistance, 
institution  building,  rehabilitation,  rural 
development,  education  and  health.  Cooperation  also  takes  place  with  regional 
development banks in Africa, Asia and Latin America. 

The  Commission  has  continued  to  assure  itself  that  the  international  organisations 
with  which  it  works  meet  international  standards  as  regards  accounting,  external 
audit,  internal  control  and  procurement.  This  compliance  analysis  has  now  been 
successfully completed for almost all the main UN organisations. During 2008, this 
process has been started for a range of other international organisations. 

The United Nations 

Sharing  common  objectives  and  values,  and  similar  policy  priorities  in  areas  like 
poverty  reduction,  human  rights,  democratic  governance,  crisis  prevention  and 
recovery,  the  Commission  and  the  UN  are  now  working  together  in  over  100 
countries,  as  illustrated  in  the  latest report  on  cooperation  between  the  UN  and  the 
European Commission, produced by the UN in 2008 with Commission support109. 

The  Commission  and  the  UN  continued  to  streamline  the  way  they  work  together 
under  the  2003  Financial  and  Administrative  Framework  Agreement  (FAFA).  The 
annual  meeting  saw  the  adoption  of  joint  guidelines  on  visibility,  which  have  been 
incorporated  in  a  revised  Communication  and  Visibility  Manual  for  EU  External 
Actions. Agreement was also reached on the conduct of verification missions and a 
joint EC/UN reference group was set up to address recurring implementation issues. 
Throughout 2008, staff from both the UN and the Commission participated in joint 
training initiatives to help foster mutual understanding and ensure that together their 
institutions  can  deliver  a  better  service  to  partner  countries.  Moreover  the 
Commission  offered  a  joint  EC/UN  training  session  on  how  it  works  with  the  UN 
(use  of  joint  management,  FAFA  and  applicable  procedures,  visibility,  verification 
and reporting). 

A  comprehensive  evaluation  of  Commission  financing  channelled  through  the  UN 
system  was  finalised  in  June  2008.  The  evaluation  confirmed  the  value  of  the 
partnership  and  was  broadly  supportive  of  the  Commission's  decision  to  channel 
funds  through  the  UN.  It  found  that  working  together  made  more  and  bigger 
operations possible, impacting directly and positively on beneficiaries. It furthermore 
confirmed the key facilitating role of the FAFA. However, the evaluation pointed to 
the  need  for  the  Commission  to  deepen  its  knowledge  of  the  characteristics  and 
strengths of UN partners to further capitalise on the partnership. It also suggested the 
Commission  make  the  objectives  and  general  framework  for  channelling  funds 
through  the  UN  more  explicit,  build  up  some  focus  areas  for  strengthened 

109 

"Improving  Lives",  produced  by  the  UN  office  Brussels  with  Commission  support,  available  on 
http://www.unbrussels.org/improvinglives2007.pdf  

EN 

185 

   EN 

 
                                                 
cooperation,  clarify  remaining  uncertainties  on  respective  obligations  in  the 
management  of  the  FAFA,  and  further  enhance  the  visibility  of  the  overall 
partnership. Work in these areas has already started. 

The UNDP continues to be the Commission's main partner, with major rehabilitation 
and  reconstruction  programmes.  Support  for  elections  is  also  an  area  where  the 
Commission  and  UNDP  have  increasingly  cooperated.  The  Operational  Guidelines 
for  the  Implementation  of  Electoral  Assistance  Programmes  and  Projects,  first 
agreed  with  UNDP  in  2006,  were  further  refined  in  2008,  with  revised  guidelines 
entering into force during the year. 

In 2008, the European Commission continued to support the World Food Programme 
(WFP)  as  a  key  humanitarian  agency  providing  relief  and  assistance  to  the  most 
vulnerable across the globe. The EC reacted decisively to the global food crisis and 
allocated  an  additional  €140  million  of  humanitarian  food  aid  to  support  inter  alia 
the  WFP’s  emergency  operations  to  cope  with  the  food  price  crisis  and  respond  to 
affected populations worldwide. 

Furthermore,  a  share  of  the  additional  allocation  of  €50  million  from  the  food 
security  thematic  programme  (see  Section  2.3.11.)  has  been  utilised  to  offer  safety 
net  support  to  vulnerable  urban  people  and  for  different  activities  such  as  better 
access  to  food,  health  and  nutrition,  and  improved  agricultural  production  through 
the WFP. 

It  is  also  worth  noting  that  in  the  framework  of  the  preparation  of  activities  which 
could be financed under the 'food facility' regulation adopted on 16 December 2008, 
the UN agencies and the WB coordinated their inputs under the UN high-level task 
force  on  food  security,  demonstrating  their  ability  and  willingness  to  put  the  UN 
reform in practice.  

The World Bank 

The  Commission  remains  one  of  the  main  contributors  to  multi-donor  trust  funds 
managed  by  the  World  Bank.  The  Commission  is  conscious  of  the  need  to  ensure 
that  these  substantial  amounts  are  properly  managed,  monitored  and  accounted  for. 
In 2001 it signed a Framework Agreement with the Bank, which is jointly reviewed 
each year and has been updated on several occasions in relation not only to financial 
management but also on issues such as visibility. A revised agreement is to come up 
for renewal in March 2009 and negotiations took place in the latter part of 2008 to 
prepare for this revision. The Bank manages over 900 trust funds, each with its own 
remit, rules and governance structure. Most are relatively small. This is a significant 
management  problem  for  the  Bank.  The  Commission  fully  supports  the  Bank's 
efforts  to  make  these  trust  funds  more  transparent  and  to  simplify  the  procedures 
which govern them. 

Operational  coordination  with  the  World  Bank  is  extremely  good  and  relations  in-
country  between  the  Commission's  Delegations  and  the  Bank's  offices  help  to 
reinforce  the  frequent  contacts  at  headquarters  level.  The  Bank's  representative  in 
Brussels  and  the  Commission's  Delegation  in  Washington  also  help  to  support  the 
cooperation. In some key programmes, such as aid to the Palestinians and in Iraq, the 

EN 

186 

   EN 

 
need for a common approach is reinforced. Progress was also made on the continuing 
evaluation of EC contributions to World Bank trust funds. 

In  November  2008,  the  evaluation  of  the  Commission's  aid  delivery  through 
development  banks  and  the  EIB  was  completed.  As  in  the  case  of  the  UN,  the 
evaluation  also  confirmed  the  value  of  the  partnership  and  it  found  that  working 
together  made  more  and  bigger  interventions  possible,  impacting  directly  and 
positively  on  beneficiaries.  It  found  that  working  with  the  development  banks 
resulted  in  greater  efficiencies  and  lower  operational  costs.  By  working  with  these 
partners,  the  Commission  benefits  from  the  expertise,  experience  and  synergies 
created.  

For  both  the  UN  and  the  banks,  the  evaluations  found  that  the  presence  of  the 
Commission in the governance and decision-making structures of trust funds permits 
a close follow-up of the programmes, and guarantees both that the EU is visible and 
that  its  policy  concerns  are  taken  into  account  and  its  financial  procedures  adhered 
to.  On  channelling  through  the  World  Bank,  a  clear  Commission  strategy  was 
recommended. 

OECD/DAC 

During  2008,  the  Commission  was  invited  by  the  DAC  to  feature  in  the  first-ever 
DAC  report  on  multilateral  aid.  The  report  offers  a  useful  overview  of  multilateral 
aid and some of the strategies that are in place, or being developed, by DAC donors 
working with multilateral agencies. It gave DAC donors the opportunity to outline in 
greater detail their approach to multilateral aid, including policies and trends.  

The  compliance  assessment  procedure  mentioned  at  the  start  of  this  section  (5.3) 
began in 2008 for the OECD and is expected to be completed in 2009. Cooperation 
between  the  Commission  and  the  OECD  is  wide-ranging  and  a  meeting  between 
Commission  President  Barroso  and  OECD  Secretary-General  Angel  Gurria  in 
November 2008 demonstrated the importance of the relationship.  

Council of Europe 

The EU strengthened relations with the Council of Europe with the signature in May 
2007  of  a  memorandum  of  understanding  on  enhanced  cooperation  and  political 
dialogue.  The  Commission,  which  had  contributed  significantly  to  the  negotiating 
process,  is  now  actively  implementing  the  memorandum.  This  is  illustrated  by  the 
exchange of letters in June 2008 between the European Commission and the Venice 
Commission  of  the  Council  of  Europe,  to  enhance  cooperation  in  the  fields  of 
constitutional and electoral legislation. This is also borne out by the volume of joint 
projects,  worth  over  €60  million  at  the  end  of  2008.  The  shared  values  of  pluralist 
democracy, the rule of law, and human rights and fundamental freedoms are the core 
areas  of  cooperation,  which  is  particularly  fruitful  in  countries  participating  in  the 
European  Neighbourhood  Policy  and  its  enlargement  process.  But  cooperation  also 
goes  beyond  the  European  continent,  as  the  projects  agreed  with  the  North-South 
Centre of the Council of Europe in the fields of youth and education demonstrate. 

OSCE 

EN 

187 

   EN 

 
In  2008, cooperation  between  the  EU  and  the  OSCE  continued  both  at  the  level  of 
Headquarters  and  between  the  OSCE  Field  Presence  and  EC  Delegations  on  the 
ground.  Good  coordination  efforts  and  financial  support  ensured  efficient 
implementation of several EU and OSCE programmes. In Ukraine, the Commission 
is currently funding a €3.5 million electoral assistance project, which will lead to the 
establishment  of  an  electronic  voter  register.  The  OSCE-led  rehabilitation 
programme in South Ossetia is on hold for the moment due to conflict in the area. 

Other international organisations 

Throughout 2008, the Commission also strengthened the political dialogue with the 
Commonwealth  and  the  Organisation  Internationale  de  la  Francophonie.  Joint 
activities were further pursued and preparations were made for future additional joint 
actions.  

Coordination  with  international  organisations  and  other  donors  is  crucial  and  is  in 
line  with  the  EU's  strong  commitment  towards  the  Paris  Declaration  on  aid 
effectiveness. To this end, the Commission is engaged in and contributes technically 
and financially to several sectoral initiatives related, for example, to agriculture, rural 
development  and  livestock  aimed  at  ensuring  that  the  needs  of  the  rural  poor  and 
those  affected  by  high  food  prices  are  appropriately  considered  on  international 
agendas.  Mention  should  be  made  of  the  Global  Donor  Platform  for  Rural 
Development  (GDPRD)  and  the  big  contribution  it  made  to  the  Accra  High-Level 
Forum in 2008. 

Cooperation with other donors 

Cooperation  with  other  donors  and  new  emerging  partners  in  the  field  of 
development  assistance  was  strengthened  in  2008,  resulting  in  joint  conferences  in 
the  cases  of  Japan  and  South  Korea,  namely  the  fourth  Tokyo  International 
Conference  on  African  Development  in  May  in  Yokohama,  and  a  Senior  Officials 
meeting  and  an  international  conference  on  official  development  assistance  on  2-3 
June  2008  in  Seoul.  As  announced  in  last  year's  annual  report,  the  EU  formally 
proposed  to  work  towards  a  trilateral  dialogue  and  cooperation  between  Africa, 
China  and  the  EU  with  the  aim  of  reinforcing  policy  dialogue  and  cooperation  in 
specific  policy  sectors  through  trilateral  cooperation  complementing  the  existing 
bilateral partnerships. 

Based on the EU-Brazil strategic partnership agreed in 2007, a joint action plan was 
endorsed  at  the  EU-Brazil  summit  in  December  2008  which  contains  an  important 
chapter  on  Achieving  the  MDGs  and  promoting  social  cohesion  and  inclusion.  It 
foresees cooperation in the area of development both at a global and at a local level, 
the  latter  by  means  of  cooperation  in  the  fields  of  health,  energy,  agriculture, 
education and employment. 

Other countries such as Israel and Egypt officially expressed their interest in working 
with  the  Commission  in  the  field  of  development  assistance.  In  these  cases, 
exploratory  talks  on  the  content,  geographical  scope  and  modalities  of  such 
cooperation started in 2008 and are still ongoing. 

EN 

188 

   EN 

 
The Commission has also been active in donors' cooperation in the area of training, 
especially within the Train4Dev network, to set up joint learning events. EuropeAid 
has  chaired  the  network  since  May  2008  and  has  been  particularly  involved  in 
working groups on sector-wide approaches and knowledge management. 

5.6. 

Visibility and communication 

The  year  2008  witnessed  continued  efforts  to  communicate  better,  and  give  more 
visibility  to,  the  results  achieved  through  the  Commission's  external  assistance 
instruments. 

A key element in this strategy is the mainstreaming of communication into the entire 
project cycle. At the design stage, the communication needs of every project have to 
be  assessed  and  appropriate  financial  and human  resources  have  to  be  foreseen.  At 
the implementation stage, a communication and visibility manual has been developed 
which defines how communication and visibility activities should be carried out by 
all  implementing  partners  (including  international  organisations).  Reporting  and 
monitoring  requirements  have  also  been  adapted.  Finally,  a  training  module  on 
communication  for  project  managers  has  been  put  in  place  in  order  to  stimulate  a 
communication culture both within the Commission and its Delegations  and within 
its partners and beneficiaries. 

As a direct consequence of these efforts, 2008 communication activities were already 
able  to  focus  on  results,  frequently  drawing  on  a  stock  of  more  than  200  results-
oriented case studies that was created by staff at headquarters and in the Delegations. 
The major activity of the year was a youth campaign110 targeting 16-18 year-olds in 
six of the 12 Member States which have joined the EU since 2004, designed to show 
the positive role of the EU in fighting poverty.  

Other  activities  included  the  fifth  edition  of  'Europe  Day  in  school'  which  was  an 
opportunity for over 400 schools and around 60 000 pupils to meet Commission staff 
and learn more about development projects. The European Development Days 2008, 
devoted  to  the  role  of  local  authorities  and  the  local  dimension  of  development 
provided another opportunity for debate. In Brussels, the External Cooperation Info 
Point received about 7 000 visitors and organised a variety of events, ranging from 
conferences and group visits to exhibitions. 

The improvement of communication products continued with an enhanced website, a 
new  photo  library  and  additional  publications  including  one  on  budget  support. 
Relations with the media and stakeholders have been further developed. 

6. 

ANNEXES 

6.1. 

Introduction to financial tables 

The Annual Report provides an overview of policies, objectives and achievements in 
2008.  The  tables  and  graphs  that  follow  present  the  main  data  on  development 

110 

http://www.ifightpoverty.eu/ 

EN 

189 

   EN 

 
                                                 
assistance  in  2008  by  country,  region,  or  sector  and  per  source  of  funding,  such  as 
the different instruments of EU external assistance. 

Regarding  the  external  assistance  of  the  European  Union,  the  geographical 
cooperation for sub-Saharan Africa, the Caribbean and the Pacific regions (ACP), is 
based on the framework of the Partnership Agreement with the ACP signatory states 
and  is  mainly  financed,  South  Africa  excepted,  from  the  European  Development 
Fund  (EDF),  i.e.  outside  the  EU  budget.  External  assistance  for  other  geographic 
areas and the thematic programmes with world-wide coverage are financed from the 
general budget of the European Community. 

Data  for  2008  again  show  an  improvement  of  overall  Official  Development 
Assistance (ODA) levels.  

Figure 6.1 shows the importance of external assistance in the overall expenditure of 
the European Commission. Defined as the resources used to foster programmes and 
projects outside the European Union, EA accounted for 9% of the total allocation in 
2008 (General EC Budget and EDF). 

The  sources  of  External  Assistance  are  the  General  Budget  of  the  EC  and  the 
European Development Fund. A global overview of the share of resources is given in 
Figure  6.2.  A  detailed  breakdown  of  the  budget  by  policy  areas  that  contribute  to 
this external assistance effort can be found in Table 6.3. A similar breakdown for the 
EDF is presented in Table 6.4. 

The  concept  of  ODA  used  throughout  the  tables  and  figures  is  that  defined  by  the 
OECD's  Development  Assistance  Committee  via  its  directives  and  reported  by  the 
EC.  Not  all  EC  external  assistance  can  be  reported  as  ODA.  Whether  an  action, 
programme or project is classified as ODA or not depends on the recipient country 
and the purpose and content of the aid. 

Figure 6.5 shows the share of the EC's external assistance classified as ODA. In all, 
94%  of  the  total  resources  of  EC  external  assistance  committed  in  2008  are 
considered  reportable  as  ODA,  indicating  an  increased  focus  on  development  in 
external financial allocations. 

Graphs  6.6  and  6.7  show  the  evolution  over  time,  from  2001  to  2008,  of  external 
assistance and ODA. Figure 6.6 shows the evolution of the main sources of funding: 
external assistance from  the  EC Budget and EDF,  indicating  the share  managed  by 
EuropeAid.  Figure  6.7  shows  the  evolution  of  the  sector  breakdown  of  ODA.  The 
increase from 2007 (+20 %) is largely due to the launch of 10th EDF (mainly budget 
support) and to an increase in humanitarian aid (ECHO). 

Turning to beneficiary countries and regions, Figure 6.8 and Table 6.9 present the 
breakdown  per  region  and  per  country.  For  this  breakdown,  it  is  necessary  to 
differentiate  between  bilateral  and  multilateral  aid.  Bilateral  aid,  as  defined  by  the 
Development Assistance Committee, is direct cooperation by the Commission with a 
country  (or  region)  where  the  Commission  controls  the  activities  and  knows  how, 
when  and  where  the  resources  are  being  spent.  Multilateral  aid  comprises  direct 
contributions  to  the  core  funding  of  multilateral  agencies,  who  report  back  to  the 
Commission at a later stage about the expenditure. 

EN 

190 

   EN 

 
Figure 6.8 provides a breakdown of EC ODA per region. Africa continues to top the 
list (45% of ODA). Overall, sub-Saharan Africa received 40% of total ODA in 2008 
due to the large volume committed under the 10th EDF. 

A  more  detailed  breakdown,  per  country  and  region,  in  line  with  the  OECD/DAC 
recipient  list,  is  presented  in  Table  6.10.  Leaving  aside  regional  programmes  and 
programmes for the Least Developed Countries, the top ten ODA countries in 2008 
were Turkey, Serbia, Mozambique, occupied Palestinian territory, Zambia, Burkina 
Faso, Ethiopia, Mali, Madagascar and Uganda.  

The  2008  report  provides  an  additional  table  (Table  6.11)  focusing  on  ODA 
recipients  classified  under  the  four  UN/OECD  categories  based  on  GNI.  The  table 
monitors  disbursements  in  2008  by  DAC  recipient  and  by  main  OECD  sectors.  A 
new indicator shows ODA disbursement per capita. 

It is also important to identify the main sectors of activities that receive support. Fig 
6.12 shows this breakdown of EC ODA per main sector as defined by the DAC.  

A  more  detailed  sector  breakdown  of  ODA  is  provided  in  Table  6.13  for 
commitments and in Table 6.14 for payments. 

Table  6.15  gives  an  overview  of  the  ODA  managed  by  EuropeAid,  with  a 
breakdown  per  sector  and  region.  In  this  table,  the  definition  of  region  reflects  the 
country groupings used in the EC instruments and corresponding budget structure.  

Finally, Table 6.16 shows the sector breakdown of ODA per EC External Assistance 
Instrument  and  sub-component  within  the  instruments,  with  the  associated  Graph 
6.17 providing a closer look. 

EN 

191 

   EN 

 
6.2. 

Financial tables 

Fig 6.1 Percentage of Commission  Budget committed on External Assistance in 2008

External Aid 
(Budget + EDF); 
12 827 M€; 9%

Commission 
Budget without 
External Aid; 123 
747 M€; 91%

Commitments ( € Million  )

Commission Budget without External Aid

External Aid (Budget + EDF)

Commission Budget + EDF

123 747 M€

12 827 M€

136 574 M€

EN 

192 

   EN 

 
 
Fig.6.2 Sources of External Assistance in 2008

non EuropeAid 
Budget; 3 376 
M€; 26%

EuropeAid 
Budget; 4 609 
M€; 36%

EuropeAid EDF; 
4 843 M€; 38%

Commitments ( € Million )
EuropeAid Budget
EuropeAid EDF
non EuropeAid Budget

External Aid (Budget + EDF)

4 609 M€
4 843 M€
3 376 M€

12 827 M€

EN 

193 

   EN 

 
 
Fig.6.3 General Commission Budget for External Assistance in 2008

Total

Managed by 
EuropeAid

Managed by other 
DGs

of which ODA

 Heading / Policy 
Area

Description

Commit.

Payments

Commit.

Payments

Commit.

Payments

Commit.

Payments

4 01 - ECFIN Macroeconomic assistance + EBRD

4 04 - EMPL

4 05 - AGRI

4 06 - ENERGY

4 07 - ENV

1 08 - RTD

Instrument for Preaccession (IPA) — Human 
resources development
The Sapard pre-accession instrument — 
Completion of the programme (2000 to 2006) 
Completion of Intelligent energy — Europe 
programme (2003 to 2006): external strand — 
Coopener
LIFE (European Financial Instrument for the 
Environment)
Combating major diseases + Specific measures in 
support of international cooperation
International fisheries agreements

2 11 - FISH
4 13 - REGIO Pre-accession IPA and former ISPA

4 14 - TAXUD Customs cooperation and international assistance

4 15 - EAC

4 17 - SANCO

4 19 - RELEX

4

4

4

4

4

4

4

4

Education
International agreements and membership of 
international organisations
Multilateral relations, cooperation in the areas of 
migration and asylum, and general external 
relations matters
Common foreign and security policy
European initiative for democracy and human 
rights (EIDHR)
Relations and cooperation with industrialised non-
member countries
Crisis response and global threats to security
European Neighbourhood Policy and relations 
with Russia
Relations with Latin America
Relations with Asia, Central Asia and East of 
Jordan countries (1)
Policy strategy and coordination for External 
relations policy area

4 20 - TRADE External trade relations
4 21- DEV
4

Food security
Non-State actors in development
Environment and sustainable management of 
natural resources, including energy
Human and social development
Geographical cooperation with ACP Countries 

42.45

17.64

71.60

17.64

71.60

42.45

17.54

71.60

40.43

139.51

150.44

139.51

150.44

133.60

2.06

4.47

4.47

3.32

3.30

6.42

3.30

6.42

2.90

4.43

186.02

169.28
582.08

0.28

20.90

0.44

174.20
282.09

22.87

0.35

186.02

169.28
582.08

0.28

20.90

0.44

174.20
282.09

22.87

0.35

49.87

0.84
50.59

0.95
282.09

17.98

18.28

52.15

54.16

52.15

54.16

49.84

49.79

289.15

194.82

289.15

194.82

271.62

151.91

142.84

112.16

142.84

112.16

142.84

106.94

24.86

15.93

24.86

246.91

202.61

109.05

109.22

137.86

15.93

93.39

1 735.32

1 493.70

1 735.32

1 493.70

347.83

310.09

347.83

310.09

839.54

672.60

839.54

672.60

24.62

21.71

15.13

12.46

12.16
216.96
215.31

100.98

154.30
326.96

12.69
258.21
173.53

216.96
215.31

258.21
173.53

77.37

100.98

77.37

126.75
228.16

154.30
326.96

126.75
228.16

9.49

12.16

9.25

12.69

196.62

165.47

1 599.33

1 370.16

347.83

310.09

827.54

668.75

22.38

19.20

5.77
216.96
215.08

100.53

154.30
326.96

6.94
258.21
171.57

76.02

126.45
228.16

Other cooperation actions and ad-hoc programmes

29.77

24.06

27.08

21.67

2.69

2.39

2.76

2.46

Policy strategy and coordination for Development 
and relations with ACP States policy area

18.47

13.19

9.58

6.65

8.89

6.54

18.29

12.03

4

4
4

4

4

4 22 - ELARG Management of the Instrument for Pre-Accession

1 063.02

1 399.62

1 063.02

1 399.62

1 059.81

810.41

4

4 23 - ECHO

Information and communication strategy
Humanitarian aid including aid to uprooted 
people, food aid and disaster preparedness

12.33

9.06

928.83

868.80

12.33

9.06

12.33

4.95

928.83

868.80

919.53

854.26

4+5 Administrative expenditure of External assistance (2)

490.52

462.62

315.51

299.23

175.01

163.39

469.23

442.29

TOTAL

7 984.40

7 894.62

4 608.52

3 955.96

3 375.87

3 938.66

7 486.21

6 005.87

(1) Non-ODA projects related to preparatory action on business and scientific exchanges. (12 million Euro)

(2) Includes administrative cost of EDF management charged to heading 5. 

     Total ODA (Budget + EDF) administrative cost (from headings 4 & 5 and EDF adm. envelope) shown in tables 6.13 & 6.14

Breakdown by budget line of external aid financed on the General Commission Budget in 2008. (Amount in € million)

EN 

194 

   EN 

 
 
Fig.6.4 European Development Fund (EDF) in 2008

Instruments (1)

Commitments (2) Payments (3) Commitments (2) Payments (3)

Of Which ODA

6th, 7th, 8th EDF

National + regional indicative programmes (NIP/RIP)
Interest-rate Subsidies
Emergency Aid
Aid for Refugees
Risk Capital
Stabex
SYSMIN
Structural Adjustment Facility
Transferred Funds
Use of interests
Total

9th & 10th EDF & transitional measures

Envelope A
Envelope B
Enveloppe B unforeseen
Regional Project
Cofinancement
Intra ACP Project
Implementation expenditure + Congo Rep. Dem.
Studies + tech. Assist. to Overseas Countries and Territories
Transferred Funds ( 6th EDF)
Transferred Funds ( 7th EDF)
Peace facility (Voluntary contributions)
Other
Total

Total EDF

-
-
-
-
-

-
-
-
-

4 

4 

4 080 
-

8 

-

2 
504 
244 
-
-
-
-
-
4 839 

4 843 

257 
2 

-

2 
17 
25 
7 
0 

-
-
310 

1 861 
225 
-
145 
-
489 
84 
1 
4 
77 
0 
18 
2 905 

3 215 

-
-
-
-
-

-
-
-
-

4 

4 

4 063 
-

8 

-

2 
204 
244 
-
-
-
-
-
4 521 

4 525 

257 
2 

-

2 
17 
25 
7 
0 

-
-
309 

1 853 
223 
-
145 
-
475 
84 
1 
4 
77 

-

18 
2 880 

3 189 

Breakdown by instrument of development assistance financed on the European Development Fund (EDF) in 2008. (Amount 
in € million)

(1) Except The Investment Facility (10th EDF) managed by the EIB

(2) Commitments 2008 have been calculated following DAC procedures :

 Total commitments made in 2008 reduced by decommitments made on projects committed in 2008

(3) Before recoveries

EN 

195 

   EN 

 
 
                
               
 
                
               
 
                
                   
 
                
                   
 
                
 
                
 
                
 
                
 
                
                   
 
                
                   
 
                
                 
 
                
                 
                   
                 
                   
                 
 
                
                   
 
                
                   
 
                
                   
 
                
                   
 
                
 
                
 
                
 
                
 
                
 
                
 
                
 
                
                 
             
                   
             
            
            
            
            
 
                
               
 
                
               
                   
 
                
                   
 
                
 
                
               
 
                
               
                   
 
                
                   
 
                
               
               
               
               
               
                 
               
                 
 
                
                   
 
                
                   
 
                
                   
 
                
                   
 
                
                 
 
                
                 
 
                
                   
 
                
 
                
 
                
                 
 
                
                 
          
          
            
          
            
            
            
            
 
Fig.6.5 Proportion of  External Assistance used for Official Development Aid (ODA)

-

500

1 000 1 500 2 000 2 500 3 000 3 500 4 000 4 500 5 000 5 500

Budget EuropeAId

EDF

Budget Non EuropeAId

ODA

non ODA

Commitments ( € Million )

ODA

non ODA

Total

Budget EuropeAId

EDF

Budget Non EuropeAId

Total

4 364 

4 525 

3 125 

12 014 

245 

318 

251 

813 

4 609 

4 843 

Peace Facility 2008-2010 : €300 million

3 376 

12 827 

94% ODA

EN 

196 

   EN 

 
        
           
        
        
           
        
        
           
        
      
           
      
 
Fig.6.6 2001-2008 External Assistance

Comm it ments  (€  m illion)

13 000

12 000

11 000

10 000

9 000

8 000

7 000

6 000

5 000

4 000

3 000

2 000

1 000

0

200 1

2002

2003

2004

2 005

2006

2007

2008

Euro peAid  B udge t

Euro peAid  E DF

non  Eu rope Aid Bud get

G rand  Total

P ayme nt s (€ million)

13  0 00

12  0 00

11  0 00

10  0 00

9  0 00

8  0 00

7  0 00

6  0 00

5  0 00

4  0 00

3  0 00

2  0 00

1  0 00

0

200 1

20 02

2003

200 4

2 005

2006

20 07

2 008

EuropeAid Budget

EuropeAid EDF

non EuropeAid Budget

Grand Total

External aid f inanced on the General Commission Budget and the European  Development Fund (EDF) managed by EuropeAid. 

Bilateral and Multilateral ODA / Other flows.

EN 

197 

   EN 

 
 
Fig.6.7 Sectoral breakdown of Official Development Assistance (ODA) 2001 - 2008

Commitments (€ million)

14 000

12 000

10 000

8 000

6 000

4 000

2 000

0

2001 2002 2003 2004 2005 2006 2007 2008

Bilateral and Multilateral ODA flows.

9. Other/Unallocated : admin. costs,
support to NGOs, unspecified

7. Emergency assistance, reconstruction
relief

6. Action relating to debt

5. Budget support, food aid, food
security

4. Multisector/Crosscutting :
environment, other

3. Production : agriculture, forestry and
fishing, industry, mining and
construction, trade and tourism

2. Economic infrastructures and services
: transport, communications, energy,
other services

1. Social infrastructures: education,
health, water, government and civil
society, other 

EN 

198 

   EN 

 
 
Fig.6.8 Regional distribution of aid to developing countries (ODA) in 2008

ODA Multilateral Aid,Total; 
366 M€; 3%

Bilateral unallocated; 1 
677 M€; 14%

Europe; 2 093 M€; 17%

Oceania; 19 M€; 0%

America; 642 M€; 5%

Asia : South & Central,  
Far East; 1 210 M€; 10%

Asia : Middle East; 735 
M€; 6%

Commitments ( € Million )

( € Million )
Region (1)

Europe
Africa, North of Sahara
Africa, South of Sahara
Asia : Middle East
Asia : South & Central,  Far East
America
Oceania
Bilateral unallocated
ODA Multilateral Aid,Total
TOTAL ODA

Africa, North of Sahara; 
546 M€; 5%

Africa, South of Sahara; 4 
726 M€; 40%

Grand total 

Payments Commitments

Commitments
2 093 
546 
4 726 
735 
1 210 
642 
19 
1 677 
366 
12 014 

1 242 
570 
3 434 
709 
1 141 
769 
65 
1 025 
239 
9 194 

Managed by EuropeAid Managed by Other DGs
Payments
Payments Commitments
961 
14 
505 
168 
286 
59 
1 
267 
3 
2 264 

281 
555 
2 929 
541 
855 
710 
65 
758 
235 
6 930 

371 
540 
4 201 
565 
900 
575 
18 
1 355 
363 
8 889 

1 722 
6 
525 
170 
311 
67 
0 
322 
1 
3 124 

(1) Following OECD region. 
Cfr table "Country breakdown of EC Development Aid in 2008".

EN 

199 

   EN 

 
     
     
        
        
     
        
        
        
        
        
            
          
     
     
     
     
        
        
        
        
        
        
        
        
     
     
        
        
        
        
        
        
        
        
          
          
          
          
          
          
            
            
     
     
     
        
        
        
      
      
      
       
            
          
   
     
     
     
     
     
 
Fig.6.9 Regional distribution of aid to developing countries (ODA) 2004-2008

Commitments ( € million  )

Europe
Africa

North Of Sahara
South Of Sahara
Regional

America

Asia

North & Central
South
Regional

Middle East
South & Central
Far East
Regional

Oceania
Bilateral unallocated
ODA Multilateral Aid,Total
TOTAL ODA

Payments ( € million  )

Europe
Africa

North Of Sahara
South Of Sahara
Regional

America

Asia

North & Central
South
Regional

Middle East
South & Central
Far East
Regional

Oceania
Bilateral unallocated
ODA Multilateral Aid,Total
TOTAL ODA

2004
996 
2 910 
480 
2 428 
2 
609 
317 
230 
63 
1 357 
398 
517 
391 
52 
52 
1 172 
441 
7 538 

2004
733 
2 916 
558 
2 357 
2 
535 
308 
152 
75 
1 302 
511 
526 
210 
55 
54 
876 
510 
6 926 

2005
1 144 
4 143 
503 
3 640 
1 
605 
331 
211 
62 
1 641 
420 
858 
214 
149 
87 
1 189 
479 
9 287 

2005
780 
3 161 
559 
2 602 
0 
645 
305 
233 
107 
1 484 
420 
661 
257 
147 
73 
846 
508 
7 497 

2006
1 532 
3 806 
543 
2 867 
396 
759 
505 
214 
40 
1 852 
587 
831 
347 
88 
32 
1 245 
605 
9 832 

2006
1 069 
3 341 
658 
2 683 
0 
666 
365 
246 
56 
1 596 
494 
699 
295 
108 
64 
790 
602 
8 130 

2007
1 565 
3 687 
521 
3 113 
53 
820 
387 
334 
100 
1 728 
743 
739 
164 
81 
141 
1 586 
431 
9 959 

2007
1 062 
3 779 
692 
3 024 
63 
776 
454 
275 
47 
1 496 
574 
604 
263 
55 
52 
856 
472 
8 493 

2008
2 093 
5 272 
546 
4 726 
-
642 
329 
312 
2 
1 946 
735 
886 
233 
91 
19 
1 677 
366 
12 014 

2008
1 242 
4 003 
570 
3 433 
1 
769 
415 
314 
40 
1 850 
709 
858 
250 
33 
65 
1 025 
239 
9 194 

Bilateral and Multilateral ODA flows.
(1) Following OECD region. 
Cfr table "Country breakdown of EC Development Aid in 2008".

EN 

200 

   EN 

 
       
    
    
    
    
    
    
    
    
    
       
       
       
       
       
    
    
    
    
    
           
           
       
         
 
        
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
         
         
         
       
           
    
    
    
    
    
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
         
       
         
         
         
         
         
         
       
         
    
    
    
    
    
     
     
     
       
     
    
    
    
    
  
       
       
    
    
    
    
    
    
    
    
       
       
       
       
       
    
    
    
    
    
           
           
           
         
           
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
         
       
         
         
         
    
    
    
    
    
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
         
       
       
         
         
         
         
         
         
         
       
       
       
       
    
     
     
     
       
     
    
    
    
    
    
 
Fig.6.10 Country breakdown of EC Development Aid in 2008

( € Million )

Country/Region

Managed by EuropeAid Managed by Other DGs
Commitments Payments Commitments Payments Commitments Payments

Total

Part I : Developing Countries & Territories (ODA)

Europe, Total
Albania
Belarus
Bosnia-Herzegovina
Croatia
Macedonia (fYRoM)
Moldova
Montenegro
Serbia (Kosovo incl.)
Turkey
Ukraine
States of ex-Yugoslavia unspecif.
Europe, Regional

Africa, Total

North Of Sahara, Total

Algeria
Egypt
Libya
Morocco
Tunisia
North Of Sahara, Regional

South Of Sahara, Total

Angola
Benin
Botswana
Burkina Faso
Burundi
Cameroon
Cape Verde
Central African Rep.
Chad
Comoros
Congo, Dem. Rep.
Congo, Rep.
Cote d'Ivoire
Djibouti
Equatorial Guinea
Eritrea
Ethiopia
Gabon
Gambia
Ghana
Guinea
Guinea-Bissau
Kenya
Lesotho
Liberia
Madagascar
Malawi
Mali
Mauritania
Mauritius
Mayotte
Mozambique
Namibia
Niger
Nigeria
Rwanda
St.Helena
Sao Tome & Principe
Senegal
Seychelles
Sierra Leone
Somalia
South Africa
Sudan
Swaziland

2 093.24
68.15
10.78
86.90
166.85
69.73
67.44
30.05
509.93
560.55
172.53
0.30
350.03
5 272.06
546.29
37.51
152.54
8.20
230.21
74.87
42.96
4 725.77
37.01
140.91
0.01
340.02
63.22
121.13
19.60
42.11
67.38
3.84
98.65
18.32
47.67
8.00
1.30
4.01
337.43
1.21
3.55
251.02

29.14
19.52
28.00
28.25
303.80
95.67
320.36
0.03
32.35

417.88
10.01
212.11
1.19
177.48

1.50
137.04
0.25
72.68
131.33
145.06
159.32
20.50
201 

1 242.32
41.86
12.05
59.52
125.57
31.68
56.76
6.58
221.17
301.22
155.67
16.01
214.23
4 003.45
569.51
61.09
141.18
2.97
228.40
57.51
78.36
3 433.13
34.24
88.48
21.20
103.76
58.68
48.52
19.37
29.02
102.64
6.84
155.47
32.74
100.89
7.97
3.68
12.07
314.30
9.91
6.86
82.15
25.35
33.53
64.85
18.02
33.69
98.00
96.81
103.54
31.38
65.91
0.56
113.48
18.44
106.00
63.47
73.29
6.87
2.86
99.09
0.51
30.62
96.55
113.72
192.63
9.49

371.25

10.78
0.00

65.30

0.15
172.16

122.86
4 741.14
540.04
32.50
152.50
7.20
230.16
74.73
42.95
4 201.10
37.00
140.90

337.94
51.53
119.11
19.60
28.00
46.00
3.40
30.00
18.30
47.65
1.30

305.26
1.20
3.54
251.00

22.98

28.00
11.65
300.33
94.95
320.30
0.02
32.32

416.00
9.65
210.00
1.12
177.24

1.50
136.95
0.25
70.17
88.09
145.00
1.94
20.50

280.89
1.89
12.05
4.68
0.40
2.08
29.93
0.00
2.25
1.00
155.24
1.81
69.56
3 484.55
555.38
47.95
140.71
2.92
228.12
57.36
78.33
2 928.36
34.23
88.47
21.06
97.90
43.58
46.90
19.37
24.29
70.01
6.60
92.91
32.72
100.18
6.16
2.36
7.92
271.02
9.87
6.86
82.09
25.35
30.14
35.43
17.61
16.76
93.45
96.42
102.23
31.09
65.89
0.56
111.51
17.43
99.62
62.28
73.06
6.87
2.86
97.94
0.51
28.26
59.44
113.60
37.90
9.21

1 721.99
68.15

86.90
166.85
69.73
2.13
30.05
509.93
560.40
0.38
0.30
227.17
530.92
6.25
5.01
0.04
1.00
0.05
0.13
0.01
524.67
0.01
0.00
0.01
2.07
11.69
2.02
0.00
14.11
21.38
0.43
68.65
0.02
0.02
6.70
1.30
4.01
32.17
0.01
0.01
0.02

6.16
19.52
0.00
16.60
3.48
0.72
0.06
0.01
0.02

1.88
0.36
2.11
0.07
0.24

0.09

2.51
43.24
0.06
157.38
0.00

961.44
39.97

54.84
125.18
29.60
26.83
6.58
218.92
300.22
0.44
14.20
144.67
518.89
14.13
13.13
0.47
0.06
0.28
0.16
0.03
504.77
0.01
0.00
0.14
5.86
15.10
1.62
0.00
4.73
32.64
0.24
62.56
0.01
0.71
1.81
1.33
4.15
43.28
0.04

0.06

3.40
29.42
0.41
16.93
4.55
0.39
1.31
0.29
0.02

1.97
1.00
6.38
1.19
0.22

0.00
1.15

2.36
37.11
0.11
154.72
0.27

   EN 

EN 

 
 
Tanzania
Togo
Uganda
Zambia
Zimbabwe
South Of Sahara, Regional

Africa, Regional

America, Total

North & Central, Total

Anguilla
Antigua & Barbuda
Barbados
Belize
Costa Rica
Cuba
Dominica
Dominican Republic
El Salvador
Grenada
Guatemala
Haiti
Honduras
Jamaica
Mexico
Montserrat
Nicaragua
Panama
St.Kitts-Nevis
St.Lucia
St.Vincent & Grenadines
Trinidad & Tobago
West Indies, Regional
N. & C. America, Regional

South, Total
Argentina
Bolivia
Brazil
Chile
Colombia
Ecuador
Guyana
Paraguay
Peru
Suriname
Uruguay
Venezuela
South America, Regional

America, Regional

26.24
22.77
280.18
346.01
22.69
78.05

641.85
328.75

10.14
11.04
4.67
0.03
4.18
9.69
2.12
1.62
8.14
44.12
69.09
96.12
4.97

10.19
0.15
9.43
6.61
4.41
10.98

21.05
311.60
2.12
22.13
18.72
0.02
48.05
34.41
28.38
61.52
6.66
3.51
0.03
3.33
82.72
1.50

133.72
27.05
179.49
94.25
43.94
217.22
0.81
768.87
414.71
2.40
1.69
3.67
8.95
4.06
1.81
12.97
42.28
19.70
6.68
27.07
81.46
16.48
57.97
15.05
1.07
24.12
1.97
6.98
10.38
9.20
3.36
4.26
51.13
314.03
11.51
30.36
33.66
4.48
39.55
28.02
37.71
12.15
36.35
17.13
7.85
4.72
50.55
40.12

14.02
22.76
251.00
346.00
0.12
36.50

574.72
288.91

10.13
11.04
4.50
0.02
4.18
9.30

1.51
5.30
30.00
65.50
96.10
4.90

9.43
6.61
4.41
10.97

15.00
284.31
2.10
19.00
18.61

35.40
32.30
28.37
60.00
0.00
3.51

3.30
81.72
1.50

121.62
26.46
149.14
93.15
24.65
213.39
0.81
710.29
383.69
2.40
1.69
3.65
8.95
3.93
0.19
12.97
40.53
18.12
6.57
24.68
66.40
13.13
57.85
14.99
1.07
20.61
1.72
6.98
10.38
9.20
3.34
4.26
50.08
286.47
11.49
26.73
33.54
4.46
27.64
24.98
37.70
10.72
29.86
16.78
7.81
4.20
50.55
40.12

12.21
0.02
29.17
0.01
22.57
41.55

67.13
39.84

0.01

0.17
0.01

0.39
2.12
0.11
2.84
14.12
3.59
0.01
0.07

10.19
0.15

12.09
0.60
30.35
1.10
19.29
3.82

58.58
31.02

0.01

0.14
1.62

1.76
1.58
0.11
2.39
15.06
3.35
0.11
0.06

3.51
0.25

0.00

0.01

6.05
27.29
0.02
3.13
0.11
0.02
12.65
2.11
0.01
1.52
6.66
0.00
0.03
0.03
1.00

1.05
27.56
0.02
3.63
0.11
0.02
11.90
3.03
0.00
1.42
6.50
0.35
0.04
0.52

EN 

202 

   EN 

 
 
Asia, Total

Middle East, Total

Bahrain
Iran
Iraq
Jordan
Lebanon
Oman
Palestinian Admin. Areas
Syria
Yemen
Middle East, Regional
South & Centr. Asia, Total

Afghanistan
Armenia
Azerbaijan
Bangladesh
Bhutan
Georgia
India
Kazakhstan
Kyrgyz Rep.
Maldives
Myanmar (Burma)
Nepal
Pakistan
Sri Lanka
Tajikistan
Turkmenistan
Uzbekistan
Central Asia, Regional
South Asia, Regional
South & Central Asia, Regional

Far East, Total
Cambodia
China
Indonesia
Korea, Dem.
Laos
Malaysia
Mongolia
Philippines
Thailand
Timor-Leste
Viet Nam
Far East Asia, Regional

Asia, Regional

1 945.52
735.17

1 850.06
709.29

1 465.00
565.45

1 395.82
540.97

480.51
169.71

454.23
168.32

8.25
106.30
69.80
84.80

397.97
28.78
26.96
12.31
886.36
214.49
29.54
23.10
79.19

154.92
110.88
0.62
22.19

41.04
14.46
65.60
71.33
13.53
4.54
4.92
33.79
2.21

233.02
13.75
77.47
27.13
10.07
19.70
0.02

12.60
0.16
8.85
63.27

90.97

1.22
26.35
73.90
90.31

459.73
37.04
12.27
8.48
857.77
242.18
11.33
9.02
134.83
5.47
78.63
79.80
11.26
23.19
0.80
40.52
32.00
43.45
77.37
21.59
2.46
7.35
24.35
12.19

250.17
25.97
45.28
37.82
12.62
12.98
0.29
7.35
21.33
18.88
18.98
47.29
1.37
32.83

72.60
66.00
50.00

321.00
20.00
24.85
11.01
609.92
149.00
29.50
22.00
46.01

92.10
100.12

17.00

2.00

55.85
48.00
9.00
4.15
4.20
29.01
1.99

198.77
11.70
75.10
20.00
10.07
18.60

3.00

1.50
58.79

90.86

0.62
5.04
66.72
46.57

376.97
26.46
10.77
7.82
611.65
150.25
10.58
7.81
106.02
5.42
39.81
64.08
10.80
21.15
0.80
17.08
21.83
40.28
56.52
16.83
2.10
6.74
21.52
12.04

210.80
24.23
43.02
32.19
10.77
12.05
0.29
7.35
14.60
8.90
13.10
43.27
1.04
32.40

8.25
33.70
3.80
34.80

76.97
8.78
2.11
1.30
276.44
65.49
0.04
1.10
33.18

62.82
10.76
0.62
5.19

39.04
14.46
9.76
23.33
4.53
0.39
0.72
4.78
0.22

34.26
2.05
2.37
7.13

1.10
0.02

9.60
0.16
7.35
4.48

0.11

0.60
21.31
7.18
43.73

82.76
10.58
1.51
0.65
246.12
91.93
0.75
1.21
28.81
0.05
38.81
15.72
0.46
2.04

23.44
10.17
3.17
20.85
4.76
0.36
0.61
2.83
0.15

39.36
1.75
2.26
5.63
1.85
0.93
0.00

6.73
9.99
5.87
4.02
0.33
0.43  

EN 

203 

   EN 

 
Oceania, Total

Cook Islands
Fiji
Kiribati
Marshall Islands
Micronesia, Fed. Sts.
Nauru
Niue
Palau
Papua New Guinea
Samoa
Solomon Islands
Tokelau
Tonga
Tuvalu
Vanuatu
Wallis & Futuna
Oceania, Regional

Bilateral unallocated

Part I (ODA) Bilateral, Total

Public Private Partnerships
United Nations
UNRWA
UNDP
WFP
WHO
FAO

World Bank Group
World Trade Organisation
Regional Development Banks
Other Multilateral Institutions

GFTAM

Others

18.80
0.45
8.02
0.91
0.50
0.74
0.20

0.25
4.53
0.95
0.00

0.00
0.60
1.42

0.22
1 676.72
11 648.19

67.76
66.00

1.01

1.00

297.00
200.00

65.24
0.04
4.18
4.31
1.18
2.97
1.05
1.11
0.89
17.64
7.09
4.99

0.56
0.22
2.84
0.50
15.67
1 025.35
8 955.28

71.28
66.00
1.40

0.91
11.00
0.95

155.86
88.00

18.41
0.45
8.00
0.91
0.50
0.63
0.20

0.25
4.52
0.95
0.00

0.00
0.60
1.40

1 354.83
8 525.35

64.58
0.04
4.09
4.31
1.18
2.87
1.05
1.11
0.89
17.63
7.09
4.64

0.56
0.22
2.82
0.50
15.58
758.05
6 694.17

66.26
66.00

68.49
66.00

0.26

0.26
11.00

297.00
200.00

155.86
88.00

0.38

0.02

0.66

0.08

0.11

0.10

0.02

0.01

0.34

0.02

0.02

0.22
321.90
3 122.84

0.09
267.31
2 261.11

1.50

0.75

1.00

2.79

1.40

0.65

0.95

Part I (ODA) Multilateral Aid,Total

365.76

239.09

363.26

235.34

1.50

2.79

Part I (ODA), Total

12 013.95

9 194.37

8 888.62

6 929.51

3 124.34

2 263.91

EN 

204 

   EN 

 
 
Part II: Countries and Territories in Transition (non ODA)

More Advanced Developing Countries

28.68

151.58

2.00

3.14

26.68

148.44

Aruba
Bahamas
Bermuda
Brunei
Cayman Islands
Chinese Taipei (Taiwan)
Falkland Islands
French Polynesia
Gibraltar
Hong Kong, China
Israel
Korea
Kuwait
Macao
Netherlands Antilles
New Caledonia
Northern Marianas
Qatar
Saudi Arabia
Singapore
Turks & Caicos Islands
United Arab Emirates
Virgin Islands (UK)
MADCT Unallocated

CEEC's/NIS

Bulgaria
Cyprus
Czech Republic
Estonia
Hungary
Latvia
Lithuania
Malta
Poland
Romania
Russia
Slovak Republic
Slovenia
CEECs Unallocated
CEECs/NIS Unallocated

Part II (Non-OA) Bilateral Aid, Total

Part II (non-ODA) Multilateral Aid, Total

EBRD

0.08

4.32
0.85
0.16
0.09

0.16
0.18
0.50
0.08
0.17

144.98
1 508.27
201.44
24.38
7.94
4.72
20.61
6.08
42.90
5.38
142.56
755.00
144.87
16.96
4.01
113.35
18.05
1 659.85

2.05
0.03

0.02
0.59

25.99
232.05
6.59

0.34

12.31

0.99
7.31
42.34

4.79
42.15
115.24
260.74

0.08

1.18
0.85
0.16
0.09

0.16
0.18
0.50
0.08
0.17

144.98
1 357.14
201.44
24.38
7.87
4.72
20.34
5.92
42.78
5.38
142.13
755.00
18.66
16.96
4.01
90.40
17.14
1 505.58

2.00

3.14

0.05
0.03

0.02
0.59

25.99
100.54
6.59

0.34

12.31

0.99
7.31
9.75

4.79
11.53
46.94
127.22

131.52

151.13

0.08
0.00
0.27
0.17
0.12

0.43

32.60

126.21

30.61
68.30
133.52

0.00
22.95
0.91
154.27

Part II (non-ODA), Total

260.74

1 659.85

133.52

154.27

127.22

1 505.58

Grand Total Part I & Part II

12 274.69

10 854.22

9 022.13

7 083.78

3 251.56

3 769.49

Breakdown by country/region of external aid financed on the General Commission Budget and the European 
Development Fund (EDF) in 2008.
Bilateral and Multilateral ODA / non-ODA flows.

EN 

205 

   EN 

 
 
Disbursements ( € million )

Least Developed Countries (LDC)

Afghanistan
Angola
Bangladesh
Benin
Bhutan
Burkina Faso
Burundi
Cambodia
Central African Rep.
Chad
Comoros
Congo, Dem. Rep.
Djibouti
Equatorial Guinea
Eritrea
Ethiopia
Gambia
Guinea
Guinea-Bissau
Haiti
Kiribati
Laos
Lesotho
Liberia
Madagascar
Malawi
Maldives
Mali
Mauritania
Mozambique
Myanmar (Burma)
Nepal
Niger
Rwanda
Samoa
Sao Tome & Principe
Senegal
Sierra Leone
Solomon Islands
Somalia
Sudan
Tanzania
Timor-Leste
Togo
Tuvalu
Uganda
Vanuatu
Yemen
Zambia
Total Least Developed Countries

Other Low Income Countries (OLIC)

Cote d'Ivoire
Ghana
Kenya
Korea, Dem.
Kyrgyz Rep.
Nigeria
Pakistan
Papua New Guinea
Tajikistan
Uzbekistan
Viet Nam
Zimbabwe

Total Other Low Income Countries

Fig.6.11 ODA Recipient by main OECD sector in 2008

ODA per Capita 
(Euro / Capita) (1)

Total

Social 
Infrastructures

Economic 
Infrastructures 
& Services

Production

Multisector / 
Crosscutting

Budget 
Support, Food 
Aid, Food 
Security

Action relating 
to debt

Humanitarian 
Aid

Other / 
Unallocated

9.66 
2.13 
0.88 
10.42 
8.58 
7.45 
7.47 
1.86 
6.92 
10.12 
8.57 
2.65 
9.91 
7.61 
2.67 
3.98 
4.24 
2.82 
21.00 
8.76 
46.84 
2.29 
9.10 
9.79 
5.26 
7.32 
2.71 
8.92 
10.59 
5.53 
0.84 
1.18 
7.99 
7.94 
38.55 
18.73 
8.42 
5.48 
10.56 
11.78 
5.22 
3.48 
17.78 
4.34 
20.92 
6.20 
13.19 
0.58 
8.21 
4.10 

5.43 
3.65 
1.82 
0.53 
4.46 
0.45 
0.27 
2.91 
3.30 
0.28 
0.56 
3.35 
0.97 

242.18
34.24
134.83
88.48
5.47
103.76
58.68
25.97
29.02
102.64
6.84
155.47
7.97
3.68
12.07
314.30
6.86
25.35
33.53
81.46
4.31
12.98
18.02
33.69
98.00
96.81
0.80
103.54
31.38
113.48
40.52
32.00
106.00
73.29
7.09
2.86
99.09
30.62
4.99
96.55
192.63
133.72
18.98
27.05
0.22
179.49
2.84
12.27
94.25
3 140.27

100.89
82.15
64.85
12.62
23.19
63.47
43.45
17.64
21.59
7.35
47.29
43.94
528.43

72.86
26.70
67.49
17.02
1.69
13.28
8.35
13.65
9.23
27.81
6.58
49.19
2.65
1.86
3.01
94.55
1.92
5.08
12.45
10.34
3.76
3.89
12.86
6.57
9.04
17.33
0.20
33.19
4.60
24.03
12.57
18.37
19.29
18.59
6.48
0.39
28.53
11.58
1.84
3.94
11.45
56.30
10.16
12.42
0.17
24.91
1.63
3.48
9.26
812.49

44.64
25.67
9.10
0.75
5.00
62.04
21.10
8.32
7.05
5.52
10.82
12.66
212.67

0.25

0.02
43.85

14.76
17.32
0.38
1.74
38.78
0.01
32.34
1.52

0.66
125.04
4.26
19.04
11.70
10.42

4.76
2.61
39.10
19.73

39.35
25.41
18.68

0.19
40.56
24.39

2.47
34.17
8.14

0.18
19.06
0.07
0.18

66.85
0.07
0.06
34.30
702.41

3.28
25.43
8.76
0.03
5.54

1.11

0.23
0.23
2.49
0.05
47.14

3.87
1.89
3.47
0.42
1.70
9.77
0.28
4.69
0.80
0.53

6.34

0.03
0.71
2.24
0.56
0.61
1.04
2.65
0.00
3.31

0.53
4.59
10.46

9.26
0.86
16.53
0.82
0.51
7.27
0.27
0.04

11.88
1.02
0.29
5.09
2.05
11.19

4.63

14.42
0.28
2.64
15.47
165.04

3.50
8.97
2.43
0.16
2.52
0.23
2.83
9.05
0.93
0.52
6.37
2.08
39.60

3.83
0.14
5.27
1.63
2.03
0.96
1.38
4.91
7.90
2.39

6.08
4.48
27.22
25.55

59.65
16.23
0.58
4.00
1.06

13.63

0.29

0.23

0.49
0.13
0.14
0.68
1.77
0.55
1.11

1.67
9.65
8.07
0.21
3.49
0.23
0.72
0.26
0.91
4.64
12.86
0.57

14.06
0.81
2.71
0.04

0.19
4.59

0.06

4.12
119.05

0.23
2.02
9.93

0.96

0.34

6.83
0.47
3.63
3.05
27.45

1.58
47.93

7.25
5.24

3.74

4.02
31.23
40.84

16.94

49.88
2.76

29.25
16.91

9.30
7.94

2.95
9.21
34.16
1.10
4.14

33.14
0.83
4.58
28.57
538.63

20.00
2.49
9.76
8.16

1.64

19.86
9.05
70.97

155.28
1.03
30.84

0.05
5.29
15.12
1.57
5.34
32.03
0.24
53.69
3.80
1.57
6.10
43.74

0.20
0.40
51.01

0.91
0.41
18.29
4.38
0.38
0.39
1.20
0.28
3.63
24.12
12.02
4.99
0.22

0.00
1.14
1.13
0.14
84.53
169.72
12.80
3.05
0.56
0.05
40.00

1.50
2.53
795.65

49.22
0.02
31.88
1.85
1.00
1.18
18.07
0.25
4.76
0.61
4.05
17.03
129.92

0.01
0.01
0.53
0.00

0.04
0.00
0.20
0.00
0.04

0.00

0.00
0.01
0.32

0.27
0.01
0.04

0.02
0.00

0.01
0.01

0.11
0.01
0.01

0.01
0.00
0.04

0.01
0.00
0.00

0.01
0.01

0.12

0.10
0.02
0.01
0.02
2.01

0.03
0.04
0.27
0.07

0.02
0.01
0.01
0.15

0.07
0.01
0.68

5.00

5.00

EN 

206 

   EN 

 
          
          
          
        
          
          
          
          
          
        
          
          
          
          
          
          
          
          
        
          
        
          
          
          
          
          
          
          
        
          
          
          
          
          
        
        
          
          
        
        
          
          
        
          
        
          
        
          
          
          
          
          
          
          
          
          
          
          
          
          
          
          
          
 
Lower Middle Income Countries (LMIC)

Albania
Algeria
Armenia
Azerbaijan
Bolivia
Bosnia-Herzegovina
Cameroon
Cape Verde
China
Colombia
Congo, Rep.
Cuba
Dominican Republic
Ecuador
Egypt
El Salvador
Georgia
Guatemala
Guyana
Honduras
India
Indonesia
Iran
Iraq
Jamaica
Jordan
Macedonia (fYRoM)
Marshall Islands
Micronesia, Fed. Sts.
Moldova
Mongolia
Morocco
Namibia
Nicaragua
Niue
Palestinian Admin. Areas
Paraguay
Peru
Philippines
Sri Lanka
Swaziland
Syria
Thailand
Tokelau
Tonga
Tunisia
Turkmenistan
Ukraine
Wallis & Futuna

Total Lower Middle Income Countries

13.27 
1.86 
3.75 
1.08 
3.31 
15.20 
2.73 
38.23 
0.03 
0.88 
9.07 
0.16 
4.47 
2.14 
1.94 
2.95 
17.58 
2.13 
50.99 
2.41 
0.07 
0.17 
0.02 
0.94 
21.61 
13.33 
15.58 
20.86 
27.00 
14.64 
2.85 
7.49 
9.13 
4.42 
681.53 
122.20 
2.06 
1.33 
0.25 
4.05 
8.44 
1.96 
0.30 
-
5.62 
5.69 
0.51 
3.32 
33.45 
0.69 

41.86
61.09
11.33
9.02
30.36
59.52
48.52
19.37
45.28
39.55
32.74
1.81
42.28
28.02
141.18
19.70
78.63
27.07
37.71
16.48
79.80
37.82
1.22
26.35
57.97
73.90
31.68
1.18
2.97
56.76
7.35
228.40
18.44
24.12
1.11
459.73
12.15
36.35
21.33
77.37
9.49
37.04
18.88

0.56
57.51
2.46
155.67
0.50
2 329.61

25.47
32.09
8.97
4.88
10.95
48.22
8.41
6.71
14.59
16.87
8.42
0.00
13.66
17.51
120.06
14.37
53.69
13.56
4.47
5.64
50.25
14.86
0.62
7.16
0.92
53.29
11.89

23.74
0.71
187.32
8.19
4.93

374.01
1.14
8.59
8.89
6.64
5.00
19.76
7.48

0.48
44.08
1.66
67.99

2.85
7.91
1.65
1.14
4.82
3.54
27.21
10.05
5.29
0.02
18.94
0.00
13.55
0.09
3.10
2.05
0.47

1.23
0.12
0.28

38.06
6.58
0.11
1.07
2.67
0.30
0.16
23.61
0.33
1.09
1.11
0.51

17.92

5.30

1.93
0.30

1.14
0.15
64.02

9.43
3.93
0.07
1.20
4.66
3.66
6.18
0.01
7.15
2.06
1.27
0.04
6.41
1.03
10.51
0.42
0.61
3.37
24.97
0.55
2.56
3.55

11.22
4.70
1.90

0.10
1.94
1.47
6.25
0.18
2.29

0.42
1.33
3.46
2.11
1.06
4.17
4.43
1.42

10.47

12.39

1 338.15

270.64

164.98

3.26
3.71
0.32
0.52
5.09
1.03
5.11
0.24
16.13
2.63
1.72
0.12
1.79
6.11
6.63
1.17
3.03
6.91
2.63
2.24
9.60
1.42

0.07
2.33
7.36
0.03
0.09
3.62
5.00
11.17
8.73
8.47

1.70
0.91
1.01
0.83
0.91
0.03
0.33
0.52

1.61
0.29
10.52
0.50
147.43

0.30
0.08
1.64

2.37

1.47

2.10
0.13

0.10
3.00
0.86
5.64
1.48

7.60

25.94

1.47

10.66
7.00
0.08

0.20

0.40
13.45

1.21
3.10
1.95
1.61

1.60
17.92
0.89
1.61
4.74
3.03

1.59
17.76
2.30

5.32
15.52
17.57
0.60
19.18
0.09
6.95

0.08
0.10
1.16

1.00
5.83

71.92
1.40
5.00
9.37
63.43
0.27
10.54
9.06

0.08

0.36

0.45
0.01
0.02

0.10
1.12
0.01
0.00
0.52
0.04
0.01
0.03
0.04
0.12
0.88
0.01
0.06
0.07
0.00
0.02
1.76
0.14
0.00
0.01
0.02
0.04
10.41

0.05

0.05
0.00
0.04

0.50
0.37
0.30
0.13
0.04
0.00
0.04
0.11

0.02

0.75

72.10

318.00

18.31  

EN 

207 

   EN 

 
        
          
          
          
          
        
          
        
          
          
          
          
          
          
          
          
        
          
        
          
          
          
          
          
        
        
        
        
        
        
          
          
          
          
      
      
          
          
          
          
          
          
          
 
            
          
          
          
          
        
          
Upper Middle Income Countries (UMIC)

Anguilla
Antigua & Barbuda
Argentina
Barbados
Belarus
Belize
Botswana
Brazil
Chile
Cook Islands
Costa Rica
Croatia
Dominica
Fiji
Gabon
Grenada
Kazakhstan
Lebanon
Libya
Malaysia
Mauritius
Mayotte
Mexico
Montenegro
Montserrat
Nauru
Oman
Palau
Panama
Serbia (Kosovo incl.)
Seychelles
South Africa
Suriname
St.Helena
St.Kitts-Nevis
St.Lucia
St.Vincent & Grenadines
Trinidad & Tobago
Turkey
Uruguay
Venezuela

Total Upper Middle Income Countries

195.82 
20.33 
0.30 
12.55 
1.23 
32.50 
11.55 
0.18 
0.27 
2.83 
0.94 
27.59 
191.28 
5.04 
7.68 
63.46 
0.74 
22.52 
0.50 
0.01 
53.10 
0.00 
0.14 
10.83 
190.45 
104.00 
-
44.18 
0.61 
22.42 
6.00 
2.37 
37.87 
1 074.28 
142.12 
64.38 
77.26 
2.54 
4.13 
2.36 
0.18 
1.50 

2.40
1.69
11.51
3.67
12.05
8.95
21.20
33.66
4.48
0.04
4.06
125.57
12.97
4.18
9.91
6.68
11.26
90.31
2.97
0.29
65.91
0.56
15.05
6.58
1.07
1.05

0.89
1.97
221.17
0.51
113.72
17.13
6.87
6.98
10.38
9.20
3.36
301.22
7.85
4.72
1 164.06

1.69
7.13
3.65
10.15
0.39
15.36
14.02
3.07
0.01
2.05
46.43
0.77
3.14
2.27
1.70
8.57
39.04
2.93
0.08
9.59
0.56
4.19
0.47

1.67
89.99
0.51
78.34
0.81

1.24
1.70
4.10
3.34
202.59
2.50
1.57
565.63

2.40

0.54
0.68

0.28

32.97
3.16

1.01

0.44

0.13

0.02
0.31
1.01

0.84

4.36

0.23
7.60
4.81
17.11

2.41
4.40
0.82
5.89
0.87
1.71
7.86

4.50
0.00
4.18

0.66
0.22
0.89
2.31
0.95

1.88
42.90

0.21
0.73

0.93
0.05
0.08

6.40
5.09
0.76

29.58

12.07

75.41

14.05
14.18
6.87

1.33

2.59
0.21

112.61

10.44
1.79

0.29
6.79
5.10

0.13
0.45
0.22
104.03

10.54

0.57

94.75
4.66
0.05
250.04

4.64

4.00

15.00

51.80

5.46

80.90

0.02
0.01

0.01
0.21
0.18

0.01
0.86

0.01
0.01

0.20
0.09

0.00
0.02

0.06
1.00

0.05
12.20

0.36
0.00

0.00
0.21
0.03
0.03
15.57

0.46
0.06
0.13

0.03
0.13

0.11
0.34
27.38

0.22

0.04

0.04
0.25
1.92

0.35

0.01
0.95

2.85
35.28

Total LDC + OLIC + LMIC + UMIC

1.31 

7 162.37

2 928.94

1 132.80

473.64

543.97

762.60

5.00

1 278.86

36.56

Region

Europe
Africa
America
Asia
Oceania
Bilateral unallocated

Total Region

7.88 
3.62 
1.39 
0.51 
7.96 
0.19 
1.64 

1 242.32
4 003.45
768.87
1 850.06
65.24
1 025.35
8 955.28

603.59
1 373.46
231.74
971.14
31.85
214.59
3 426.36

226.04
886.34
123.99
41.23
6.78
51.81
1 336.18

62.76
284.88
160.03
87.06
18.23
48.91
661.87

270.69
226.32
80.41
97.03
4.78
25.24
704.47

26.34
580.48
47.48
114.65
0.83
6.07
775.85

5.00

80.00
85.00

9.24
641.04
121.16
533.71
2.72
42.18
1 350.04

43.66
5.94
4.06
5.24
0.05
556.55
615.51

Breakdown by country/region of external aid financed on the General Commission Budget and the European Development Fund (EDF) in 2008.
Bilateral ODA flows.
(1) Source : World Population Prospects - United Nations Population Division

EN 

208 

   EN 

 
      
        
          
        
          
        
        
          
          
          
          
        
      
          
          
        
          
        
          
          
        
          
          
        
      
      
 
            
        
          
        
          
          
        
   
      
        
        
          
          
          
          
          
          
          
          
          
          
          
          
          
 
Fig.6.12 Sectoral breakdown of ODA managed by the EC in 2008

9. Other/Unallocated : 
admin. costs, support to 
NGOs, unspecified; 785 
M€; 6.5%

7. Humanitarian Aid; 1 115 
M€; 9.3%

6. Action relating to debt; 
65 M€; 0.5%

5. Budget support, food aid, 
food security; 2 666 M€; 
22.2%

4. Multisector/Crosscutting 
: environment, other; 993 
M€; 8.3%

3. Production: agriculture, 
forestry and fishing, 
industry, mining and 
construction, trade and 
tourism; 748 M€; 6.2%

Commitments in € million

1. Social infrastructures: 
education, health, water, 
government and civil 
society, other ; 3 855 M€; 
32.1%

2. Economic infrastructures 
and services: transport, 
communications, energy, 
other services; 1 786 M€; 
14.9%

EN 

209 

   EN 

 
 
Fig.6.13 Detailed description of ODA by sector in 2008 - Commitments

Commitments ( €  million )

Sector of Destination

SOCIAL INFRASTRUCTURE AND SERVICES

Education

Education, level unspecified
Basic education
Secondary education
Post-secondary education

Health

Health, general
Basic health

Population polices/programs and reproductive health
Water supply and sanitation
Government and civil society
Other Social Infrastructure

ECONOMIC INFRASTRUCTURE AND SERVICES

Transport and storage
Communications
Energy generation and supply
Banking and financial services
Business and other services

PRODUCTION SECTORS

Agriculture, Forestry and Fishing

Agriculture
Forestry
Fishing

Industry, Mining and Construction

Industry
Mineral resources and mining
Construction
Trade and Tourism

Trade policy and regulation
Tourism

MULTISECTOR/CROSSCUTTING

General environmental protection
Other multisector

COMMODITY AID AND GENERAL PROGRAMME ASSISTANCE

General budget support
Development food aid/food security assistance
Other commodity assistance

ACTION RELATING TO DEBT
Action relating to debt

HUMANITARIAN AID

Emergency Response
Reconstruction relief and rehabilitation
Disaster prevention and preparedness

OTHER/UNALLOCATED/UNSPECIFIED
Administrative costs of donors
Support to non-governmental organisations
Refugees in donor countries
Unallocated/unspecified

GRAND TOTAL

Total

Managed by 
EuropeAid

Managed by 
Other DGs

3 855.03
595.80
85.11
147.50
69.28
293.91
486.49
108.14
378.35
101.94
118.06
1 877.02
675.72
1 786.32
1 338.56
36.75
305.79
13.63
91.60
747.82
436.38
393.59
38.22
4.57
78.33
75.15
3.18

233.10
232.09
1.02
992.83
301.03
691.80
2 665.90
2 381.78
284.12

65.47
65.47
1 115.09
984.68
97.61
32.81
785.49
714.47

2 713.78
500.72
82.11
138.00
44.30
236.31
467.82
96.97
370.85
99.94
116.51
958.85
569.95
1 635.75
1 229.80
32.00
285.22
10.13
78.60
505.28
264.80
226.58
38.22

65.00
65.00

175.48
175.48
0.00
590.77
147.01
443.76
2 642.42
2 364.28
278.15

65.47
65.47
153.50
82.50
71.00

581.64
538.88

1 141.25
95.08
3.00
9.50
24.98
57.60
18.68
11.18
7.50
2.00
1.55
918.16
105.77
150.58
108.76
4.75
20.57
3.50
13.00
242.53
171.58
167.01

4.57
13.33
10.15
3.18

57.62
56.60
1.02
402.06
154.01
248.05
23.48
17.50
5.98

961.59
902.18
26.61
32.81
203.85
175.59

71.02
12 013.95

42.76
8 888.62

28.26
3 125.34

Breakdown by sector of Official Development Assistance (ODA) financed on the General Commission Budget and 
the European Development Fund (EDF) in 2008.
Bilateral and Multilateral ODA flows.

EN 

210 

   EN 

 
 
Fig.6.14 Detailed description of ODA by sector in 2008 - Payments

P ayme nt s ( €  m illion )

Se ctor of Destination

S OCIAL INFRASTRUCTURE  AND SE RVICE S

Educ ation

E ducation, level u nspecified
B asic ed ucati on
S econda ry edu ca tio n
P ost-seco ndary education

He alth

Hea lth , gen eral
B asic he alth

Population police s/progra ms and reproduct iv e he alt h
Water supply and sa nita tion
Governme nt  and civil society
Other Socia l Inf ra struc ture

E CO NOMIC INFRASTRUCTURE  AND SE RV ICES

Transport and st orage
Com munic ations
Energy generation and supply
Ba nk ing and financial se rv ic es
Business  a nd other se rv ic es

P RO DUCTION SECTO RS

Agriculture, Fore stry a nd Fis hing

A griculture
For estry
Fishin g

Industry, Mining and Construc tion

Indu stry
Mine ral resou rces an d mining
Con struction
Trade and Touris m

Tra de policy a nd regu lation
Tou rism

MULTISECTOR/CROSSCUTTING

General e nv ironmenta l prote ction
Other mult ise ctor

CO MMODITY AID AND GE NERAL PROG RAMME ASSISTANCE

General budget support
De velopment food aid/f ood security assista nc e
Other commodity assista nce

ACTIO N RELATING TO DEBT
Action relating to debt

HUMANITARIAN AID

Eme rgency Response
Re construc tion re lief and rehabilita tion
Disa ster prev ention and preparedness

O THE R/UNALLOCATED/UNSP ECIFIED
Adminis tra tive costs  of donors
Support to non-governmenta l organisations
Re fuge es in donor c ountries
Unallocated/unspecified

G RAND TO TAL

Tota l

Ma na ge d by 
EuropeAid

Managed by 
Other DGs

3  53 8.66
51 7.50
10 1.54
19 3.37
7 9.56
14 3.04
49 2.86
12 5.69
36 7.18
10 7.72
33 2.29
1  42 9.97
65 8.32
1  35 5.18
89 9.58
2 9.54
25 9.45
5 5.27
11 1.34
66 4.86
31 8.27
25 7.75
4 3.67
1 6.85
19 9.68
14 7.73
5 1.91
0.05
14 6.91
13 5.80
1 1.11
70 5.22
14 8.34
55 6.87
81 7.20
55 3.51
26 3.68

8 5.00
8 5.00
1  41 2.74
94 6.69
41 6.42
4 9.63
61 5.51
54 9.36
3.06
1.08
6 2.01
9  19 4.37

2 856 .8 1
472 .5 7
97 .8 7
186 .9 1
57 .7 2
130 .0 6
439 .2 7
123 .6 3
315 .6 4
106 .0 1
322 .7 9
868 .6 3
647 .5 3
1 202 .3 8
869 .2 0
21 .1 2
195 .4 1
26 .2 4
90 .4 1
614 .8 3
307 .5 3
248 .3 0
43 .3 6
15 .8 7
175 .7 0
131 .0 2
44 .6 8

131 .6 0
121 .3 2
10 .2 8
448 .3 4
122 .6 1
325 .7 3
773 .6 7
513 .3 7
260 .3 0

85 .0 0
85 .0 0
542 .4 6
109 .3 8
409 .5 6
23 .5 2
406 .0 1
366 .5 4
3 .0 0
1 .0 8
35 .4 0
6 929 .5 1

681.86
44.93
3.66
6.46
21.84
12.97
53.59
2.05
51.54
1.71
9.49
561.34
10.79
152.81
30.38
8.42
64.03
29.03
20.93
50.03
10.74
9.45
0.31
0.98
23.98
16.71
7.23
0.05
15.31
14.48
0.83
256.87
25.73
231.14
43.53
40.14
3.39

870.28
837.31
6.86
26.11
209.49
182.82
0.06

26.60
2 264.86

B reakdo wn  b y se ctor of Offici al De vel opmen t Assistan ce  ( ODA) financed  o n the  G ener al Co mmissi on Budg et an d 
the Eu ropea n De ve lopme nt Fund  (E DF)  in 20 08.
B ilateral and  Multilater al O DA flo ws.

EN 

211 

   EN 

 
 
Fig.6.15 EuropeAid in 2008: A closer look. Sectoral breakdown per region

Commitments ( € million )

Sector of Destination

SOCIAL INFRASTRUCTURE AND SERVICES

Education

Education, level unspecified
Basic education
Secondary education
Post-secondary education

Health

Health, general
Basic health

Population polices/programs and reproductive health
Water supply and sanitation
Government and civil society
Other Social Infrastructure

ECONOMIC INFRASTRUCTURE AND SERVICES

Transport and storage
Communications
Energy generation and supply
Banking and financial services
Business and other services

PRODUCTION SECTORS

Agriculture, Forestry and Fishing

Agriculture
Forestry
Fishing

Industry, Mining and Construction

Industry
Mineral resources and mining
Construction
Trade and Tourism

Trade policy and regulation
Tourism

MULTISECTOR/CROSSCUTTING

General environmental protection
Other multisector

COMMODITY AID AND GENERAL PROGRAMME ASSISTANCE

General budget support
Development food aid/food security assistance
Other commodity assistance

ACTION RELATING TO DEBT
Action relating to debt

HUMANITARIAN AID

Emergency Response
Reconstruction relief and rehabilitation
Disaster prevention and preparedness

OTHER/UNALLOCATED/UNSPECIFIED
Administrative costs of donors
Support to non-governmental organisations
Unallocated/unspecified

GRAND TOTAL

ENPI 
East

ENPI 
South

Asia

Latin 
America
221
128
12
54

ACP

880
40
40
0

Multi 
Region
315
16
10

6

54
4
50
35
2
166
44
25

25

9
9

9

281
63
219
161

161

62

19
51
22
27

22
5

39

20
20

19
19

1
1
0
61
61

200

200
43
25
410
162
1 167
1 133

1
10
23
230
200
176
24

4
4

26
26

104
54
50
2 222
2 137
85

65
65

2
2

236
236

332
299

Total

2 714
501
82
138
44
236
468
97
371
100
117
959
570
1 636
1 230
32
285
10
79
505
265
227
38

65
65

175
175
0
591
147
444
2 642
2 364
278

65
65
154
83
71

582
539

587
56
20

10
26
79
79

8
29
111
304
230
86
5
84

56
67
18
18

16
16

33
33
0
70
7
63
115
110
5

71

71

0
0

536
228
0
84
29
116
89
14
75
10
33
138
38
61
11
5
45

116
39
33
6

25
25

53
53

34
18
17
84
57
27

21
21

4
2

1 141

2
856

349

4 904

34
1 123

43
8 889

174
33

33
47

47
4
9
82

126

126

45

45
45

101
5
96

62
62

7
0

7
515

Breakdown by sector and Region of external aid financed on the General Commission Budget managed by EuropeAid and the 
European Development Fund (EDF).
Bilateral and Multilateral ODA flows.
On budget side, region is identified following geographical budget lines and recipient countries for thematic budget lines.
ENPI East : Europe + Armenia, Azerbaijan, Georgia. (Russia excluded)
ENPI South : North Of Sahara + Jordan, Lebanon, Libya, Palestinian Admin. Areas, Syria, (Israel excluded)
Asia : Iran, Iraq, Oman, Yemen, Afghanistan, Bangladesh, Bhutan, India, Kazakhstan, Kyrgyz Rep., Maldives, Myanmar (Burma), Nepal, 
Pakistan, Sri Lanka, Tajikistan, Turkmenistan, Uzbekistan, Cambodia, China, Indonesia, Korea, Dem., Laos, Malaysia, Mongolia, 
Philippines, Thailand, Timor-Leste, Viet Nam.

Latin America : Costa Rica, Cuba, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Argentina, Bolivia, Brazil, Chile, 
Colombia, Ecuador, Paraguay, Peru, Uruguay, Venezuela

ACP : South Of Sahara + Oceania + Anguilla, Antigua & Barbuda, Barbados, Belize, Dominica, Dominican Republic, Grenada, Haiti, 
Jamaica, Montserrat, St.Kitts-Nevis, St.Lucia, St.Vincent & Grenadines, Trinidad & Tobago, West Indies, Regional, Guyana, Suriname.  
(Turks & Caicos Islands excluded)
Multi region : covering several regions or unspecified location.

EN 

212 

   EN 

 
 
Fig.6.16 External Aid in 2008: A closer look. Sectoral breakdown per instrument.

Commitments ( € Million )

Sector of Destination

ENPI

EDF

DCI - 
Geo (1)

DCI - 
Thema 
(2)

EIDHR

IFS

NSI

CFSP

IPA

Echo

Other

Total

SOCIAL INFRASTRUCTURE AND SERVICES

Education

Education, level unspecified
Basic education
Secondary education
Post-secondary education

Health

Health, general
Basic health

Population polices/programs and reproductive health
Water supply and sanitation
Government and civil society
Other Social Infrastructure

ECONOMIC INFRASTRUCTURE AND SERVICES

Transport and storage
Communications
Energy generation and supply
Banking and financial services
Business and other services

PRODUCTION SECTORS

Agriculture, Forestry and Fishing

Agriculture
Forestry
Fishing

Industry, Mining and Construction

Industry
Mineral resources and mining
Construction
Trade and Tourism

Trade policy and regulation
Tourism

MULTISECTOR/CROSSCUTTING

General environmental protection
Other multisector

COMMODITY AID AND GENERAL PROGRAMME ASSISTANCE

General budget support
Development food aid/food security assistance
Other commodity assistance

ACTION RELATING TO DEBT
Action relating to debt

HUMANITARIAN AID

Emergency Response
Reconstruction relief and rehabilitation
Disaster prevention and preparedness

OTHER/UNALLOCATED/UNSPECIFIED
Administrative costs of donors
Support to non-governmental organisations
Unallocated/unspecified

GRAND TOTAL

752
88
20

10
58
126
79
47
4
38
192
304
303
86
5
157

56
112
18
18

16
16

78
78
0
182
12
170
110
110

133
62
71

42
35

706
30
30
0

188

188
41
24
367
56
1 147
1 124

23
90
65
43
23

4
4

21
21

101
52
50
2 179
2 118
61

65
65

236
236

895
356
12
138
29
178
89
14
75
10
52
229
160
88
11
27
50

160
39
33
6

45
45

76
76

34
17
17
118
118

21
21

53
51

7
1 634

4 525

2
1 368

217
26
20

6

65
4
62
45
3
27
50
40
9

21
10

143
143
134
10

251
68
184
235
18
217

66
33

32
953

143

112

272

1

143

111

272

58

58

0

0

9
9

2

2

25
1
23

5
5

1
1

0
0

740
77
3
10
7
58
19
11
8
1
2
536
106
151
109
5
21
4
13
231
168
165

4
11
10
1

52
51
1
388
151
237
6

6

17
14
3

55
48

152

143

59

272

7
1 587

19
18

18

0
1

11
3
3

1
2

2

6
6

35
2
33
18
18
0

0

0
309
287

22
393

3 855
596
85
148
69
294
486
108
378
102
118
1 877
676
1 786
1 339
37
306
14
92
748
436
394
38
5
78
75
3

233
232
1
993
301
692
2 666
2 382
284

65
65
1 115
985
98
33
785
714

71
12 014

920
887

32
8
8

927

Breakdown by sector and Region of external aid financed on the General Commission Budget managed by EuropeAid and the European Development Fund (EDF).
Bilateral and Multilateral ODA flows.
(1) DCI - Geo : Asia, Latin America, South Africa
(2) DCI - Thema : Migration, Food security, Non-state actors, Environment, Human & social development, ACP sugar programmes
CFSP is financed on the General Commission Budget managed by DG External Relations

EN 

213 

   EN 

 
 
Fig.6.17 External Aid in 2008: A closer look. Sectoral breakdown per instrument.

0%

20%

40%

60%

80%

100%

ENPI

EDF

DCI - Geo

DCI - Thema

EIDHR

IFS

NSI

CFSP

IPA

Echo

Other

1. Social infrastructures: education, health, water, government and civil society, other 
2. Economic infrastructures and services : transport, communications, energy, other services
3. Production : agriculture, forestry and fishing, industry, mining and construction, trade and tourism
4. Multisector/Crosscutting : environment, other
5. Budget support, food aid, food security
6. Action relating to debt
7. Emergency assistance, reconstruction relief
9. Other/Unallocated : admin. costs, support to NGOs, unspecified

Commitments %

CFSP is financed on the General Commission Budget managed by DG External Relations

EN 

214 

   EN 

 
 
6.3. 

Glossary 

ACP 

AfDB 

AAP 

African, Caribbean and Pacific States 

African Development Bank 

Annual Action Plan 

ASEAN 

Association of South-East Asian Nations  

AU 

CAN 

African Union 

Andean Community 

Cariforum 

Caribbean Forum of ACP states  

CBC 

CDB  

CIDA  

CCRIF 

CSP 

DAC 

DCI 

DfID  

EC 

ECLAC 

ECOSOC 

EDF  

EIB 

EIDHR 

ENP 

ENPI 

ENRTP 

Cross-border Cooperation 

CDB Caribbean Development Bank  

CIDA Canadian International Development Agency  

Caribbean Catastrophe Risk Insurance Fund  

Country Strategy Paper 

Development Assistance Committee of the OECD 

Financing instrument for development cooperation  

UK Department for International Development  

European Community 

Economic Commission for Latin America and the Caribbean 

United Nations Economic and Social Council  

European Development Fund  

European Investment Bank 

European Instrument for Democracy and Human Rights  

European Neighbourhood Policy 

European Neighbourhood and Partnership Instrument 

Thematic  Programme  for  Environment  and  Sustainable 
Management of Natural Resources including Energy  

EPA 

Economic Partnership Agreement 

EN 

215 

   EN 

 
ESDP 

EU 

European Security and Defence Policy 

European Union 

EU EOMs 

European Union Election Observation Missions  

FAFA 

FLEGT 

FPA 

The  EC/UN  Financial  and  Administrative  Framework 
Agreement 

Forest law enforcement, governance and trade 

Framework  Partnership  Agreement 
Commission and its operational partners)  

(between 

the 

GDPRD 

Global Donor Platform for Rural Development 

GCCA 

IAEA 

ICI 

IDEA 

IDP 

IfS 

IMF 

INGO 

INSC 

IOM  

IRFFI 

Global Climate Change Alliance 

International Atomic Energy Agency  

Industrialised Countries Instrument 

International  Institute  for  Democracy  and  Electoral 
Assistance 

Internally displaced persons 

Instrument for Stability  

International Monetary Fund  

International Non-governmental organisation 

Instrument for Nuclear Safety Cooperation 

International Organisation for Migration 

 International Reconstruction Fund Facility for Iraq 

ITC/ILO  

International Training Centre of the International Labour 
Organization  

LAC 

LDC 

LIC 

LRRD 

MFA 

Latin America and Caribbean 

Least Developed Countries 

Low Income Countries 

Linking relief, rehabilitation and development 

Micro Financial Assistance 

EN 

216 

   EN 

 
MDGs 

Millennium Development Goals  

MERCOSUR 

Regional  Trade  Agreement  among  Argentina,  Brazil, 
Paraguay and Uruguay 

MIC 

NEPAD 

NIF 

NGO 

OAS  

OCT 

ODA 

OECD 

PCD 

Pegase 

PIF 

Quartet 

oQSG 

RIP 

ROM 

RSP 

SAARC 

SADC 

SBS 

SIGMA 

Middle Income Countries 

New Partnership for Africa’s Development  

Neighbourhood Investment Facility 

Non-governmental organisation 

Organisation of American States  

Overseas Countries and Territories  

Official Development Assistance  

Organisation 
Development 

for 

Economic  Co-operation 

and 

Policy Coherence for Development 

Mecanisme  "Palestino  Europeen  de  Gestion  et  d'Aide 
Socio-Economique" 

Pacific Island Forum 

The  Quartet  on  the  Middle  East  gathering  the  United 
States,  Russia,  the  European  Union,  and  the  United 
Nations  

office Quality Support Group 

Regional Indicative Programme 

Results Oriented Monitoring System  

Regional Strategy Paper 

South Asian Association for Regional Cooperation  

Southern African Development Community 

Sector budget support 

Support 
for 
Management 

Improvement 

in  Governance 

and 

SPSP 

Sector policy support programme 

EN 

217 

   EN 

 
TAIEX 

TA 

TIM 

TVET 

UMIC 

UNDP 

UN-FAO 

UNHCR 

UNICEF 

UNIFEM 

PAHO 

PFM 

PRAG 

UNRWA 

UNSG 

UNCTAD 

UN-WFP 

UN-WHO 

VPA 

Technical Assistance and Information Exchange  

Technical Assistance 

Temporary International Mechanism  

Technical and Vocational Education and Training 

Upper Middle Income Countries 

United Nations Development Programme 

United Nations - Food and Agriculture Organization 

United Nations High Commissioner for Refugees 

United Nations Children’s Fund 

United Nations Development Fund for Women 

United Nations - Pan American Health Organisation 

Public Finance Management 

Practical Guide 

United Nations - Relief and Works Agency for Palestine 
Refugees in the Near East 

United Nations Secretary-General 

United Nations Conference on Trade and Development 

United Nations - World Food Programme 

United Nations -World Health Organisation 

Voluntary Partnership Agreement 

EN 

218 

   EN