COMMISSION STAFF WORKING PAPER Annual Report 2011 on the European Union's development and external assistance policies and their implementation in 2010
Date: 2011-07-06
Institutions: European Commission
Subjects: aid policy, cooperation policy, development policy, economic development, humanitarian aid, implementation of the budget, poverty

EUROPEAN COMMISSION 

Brussels, 6.7.2011 
SEC(2011) 880 final 

COMMISSION STAFF WORKING PAPER 

Annual Report 2011 on the European Union's development and external assistance 
policies and their implementation in 2010 

Accompanying the document 

REPORT FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN 
PARLIAMENT 

Annual Report 2011 on the European Union's development and external assistance 
policies and their implementation in 2010 

{COM(2011) 414 final} 

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TABLE OF CONTENTS 

1. 

DELIVERING ON COMMITMENTS........................................................................ 6 

1.1. 

Policy development and priorities................................................................................ 7 

1.1.1.  Progress on the MDGs ................................................................................................. 7 

1.1.2.  Policy developments .................................................................................................... 9 

1.1.3.  Focus on poverty ........................................................................................................ 12 

1.2. 

Making cooperation work better ................................................................................ 14 

1.2.1.  European Consensus on Development and the future of EU development policy .... 14 

1.2.2.  Mainstreaming of cross-cutting issues ....................................................................... 15 

1.2.3.  Coherence between development and other policies ................................................. 18 

1.2.4.  Aid effectiveness and co-financing............................................................................ 20 

1.3.  Working with partners in a changing environment.................................................... 22 

1.3.1.  Cooperation with the donor community .................................................................... 22 

1.3.2.  Cooperation with international organisations ............................................................ 22 

1.3.3.  Cooperation with non-state actors and local authorities ............................................ 24 

1.4. 

Outlook for 2011 ........................................................................................................ 24 

2. 

IMPLEMENTATION: GEOGRAPHIC OVERVIEW.............................................. 27 

2.1. 

European Neighbourhood and the Middle East ......................................................... 28 

2.1.1.  The European Neighbourhood and Partnership Instrument....................................... 28 

2.1.1.1.  Introduction ................................................................................................................ 28 

2.1.1.2.  Aid effectiveness and donor coordination.................................................................. 30 

2.1.1.3.  Working towards the MDGs ...................................................................................... 31 

2.1.1.4.  Implementation .......................................................................................................... 32 

2.1.1.5.  Monitoring ................................................................................................................. 39 

2.1.1.6.  Outlook....................................................................................................................... 41 

2.1.2.  Middle East ................................................................................................................ 44 

2.1.2.1.  Introduction ................................................................................................................ 44 

2.1.2.2.  Aid effectiveness and donor coordination.................................................................. 45 

2.1.2.3.  Working towards the MDGs ...................................................................................... 46 

2.1.2.4.  Implementation and results ........................................................................................ 46 

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2.1.2.5.  Outlook....................................................................................................................... 48 

2.2. 

The ACP region and Overseas Countries and Territories (OCTs)............................. 48 

2.2.1.  Sub- Saharan Africa ................................................................................................... 49 

2.2.1.1.  Introduction ................................................................................................................ 49 

2.2.1.2.  Aid effectiveness and donor coordination.................................................................. 50 

2.2.1.3.  Working towards the MDGs ...................................................................................... 52 

2.2.1.4.  Implementation and results ........................................................................................ 54 

2.2.1.5.  Monitoring ................................................................................................................. 57 

2.2.1.6.  Outlook....................................................................................................................... 59 

2.2.1.7.  Introduction ................................................................................................................ 60 

2.2.1.8.  Aid effectiveness and donor coordination.................................................................. 60 

2.2.1.9.  Working towards the MDGs ...................................................................................... 61 

2.2.1.10. Implementation and results ........................................................................................ 61 

2.2.1.11. Outlook....................................................................................................................... 63 

2.2.2.  Caribbean ................................................................................................................... 63 

2.2.2.1.  Introduction ................................................................................................................ 63 

2.2.2.2.  Aid effectiveness and donor coordination.................................................................. 64 

2.2.2.3.  Working towards the MDGs ...................................................................................... 65 

2.2.2.4.  Implementation and results ........................................................................................ 66 

2.2.2.5.  Monitoring ................................................................................................................. 68 

2.2.2.6.  0utlook ....................................................................................................................... 69 

2.2.3.  Pacific......................................................................................................................... 70 

2.2.3.1.  Introduction ................................................................................................................ 70 

2.2.3.2.  Aid effectiveness and donor coordination.................................................................. 71 

2.2.3.3.  Working towards the MDGs ...................................................................................... 72 

2.2.3.4.  Implementation and results ........................................................................................ 73 

2.2.3.5.  Monitoring ................................................................................................................. 76 

2.2.3.6.  Outlook....................................................................................................................... 77 

2.2.4.  All ACP Programmes................................................................................................. 77 

2.2.5.  Overseas Countries and Territories (OCTs)............................................................... 84 

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2.2.5.1.  Introduction ................................................................................................................ 84 

2.2.5.2.  Implementation and results ........................................................................................ 85 

2.3. 

Asia and Central Asia ................................................................................................ 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.  Implementation and results ........................................................................................ 89 

2.3.1.5.  Monitoring ................................................................................................................. 94 

2.3.1.6.  Outlook....................................................................................................................... 95 

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

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

2.3.2.2.  Aid effectiveness and donor coordination.................................................................. 97 

2.3.3.  Working towards the MDGs ...................................................................................... 97 

2.3.3.1.  Implementation and results ........................................................................................ 99 

2.3.3.2.  Monitoring ............................................................................................................... 102 

2.3.3.3.  Outlook..................................................................................................................... 103 

2.4. 

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

2.4.1.1.  Introduction .............................................................................................................. 104 

2.4.1.2.  Aid effectiveness and donor coordination................................................................ 105 

2.4.1.3.  Working towards the MDGs .................................................................................... 106 

2.4.1.4.  Implementation and results ...................................................................................... 107 

2.4.1.5.  Monitoring ............................................................................................................... 110 

2.4.1.6.  Outlook..................................................................................................................... 112 

3. 

IMPLEMENTATION: THEMATIC OVERVIEW................................................. 114 

3.1. 

Thematic programmes.............................................................................................. 115 

3.1.1. 

Investing in people ................................................................................................... 115 

3.1.2.  Non-State actors and local authorities in development............................................ 117 

3.1.3.  Migration and asylum .............................................................................................. 119 

3.1.4.  Environment and sustainable management of natural resources including energy . 120 

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3.1.5.  Food security............................................................................................................ 123 

3.2. 

3.3. 

Democracy and Human Rights ................................................................................ 125 

Stability .................................................................................................................... 134 

3.3.1.  Crisis response and preparedness............................................................................. 134 

3.3.2.  Global and regional trans-border challenges............................................................ 135 

3.4. 

3.5. 

Nuclear Safety.......................................................................................................... 139 

Humanitarian assistance........................................................................................... 142 

3.5.1. 

Introduction.............................................................................................................. 142 

3.5.2. 

Implementation of humanitarian aid ........................................................................ 142 

3.5.3.  Humanitarian assistance policy................................................................................ 144 

3.5.4.  Disaster preparedness............................................................................................... 145 

3.5.5.  Civil protection ........................................................................................................ 145 

3.6. 

Macro-financial assistance ....................................................................................... 145 

4. 

MANAGING AID FOR RESULTS ........................................................................ 146 

4.1. 

Monitoring and evaluating projects ......................................................................... 146 

4.1.1.  Results-oriented monitoring..................................................................................... 147 

4.1.2.  Evaluations............................................................................................................... 154 

4.1.3. 

Integrating lessons from monitoring and evaluation................................................ 159 

4.2. 

Toward better aid delivery ....................................................................................... 160 

4.2.1.  Developments in aid delivery modalities and channels ........................................... 160 

4.2.2.  Budget support ......................................................................................................... 162 

4.2.3.  Blending of grants and loans.................................................................................... 164 

4.3. 

Progress in aid management..................................................................................... 166 

4.3.1.  Progress on qualitative issues in aid management ................................................... 166 

4.3.2.  Simplification of procedures .................................................................................... 167 

4.3.3.  Cooperation with international organisations and other donors .............................. 168 

4.4. 

Visibility and communication .................................................................................. 170 

5. 

5.1. 

5.2. 

FINANCIAL ANNEXES ........................................................................................ 171 

Introduction to financial tables................................................................................. 171 

Financial tables ........................................................................................................ 173 

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Introduction 

All  developments  described  in  this  2011  Annual  Report  reflect  the  situation  as  of  31 
December  2010.  The  Report  does  not  cover  the  significant  changes  that  occurred  in  2011 
following  the  political  developments  notably  in  the  Southern  Mediterranean  region  and  in 
other areas of the world. 

The year 2010 was a crucial one for the world economy. Recovery from the global economic 
and financial crisis has been fragile and uneven. This reflects the asymmetric recovery paths, 
plus the different timing and intensity of fiscal consolidation and structural reforms adopted 
by the countries most affected. Uncertainties about the sustainability of long-term growth are 
another source of concern. In 2010, advanced countries (the United States, Japan and Europe) 
returned to modest growth. The more dynamic emerging and transition economies in eastern 
Europe, Asia and Latin America (Russia, China, India, Brazil) have proved more resilient to 
the  crisis.  Despite  some  positive  signs,  most  low-income  countries  continued  to  experience 
major socio-economic constraints in 2010 as a result of the persistent negative impact of the 
crisis  and  the  volatility  of  world  commodity,  energy  and  food  prices.  Many  developing 
countries are finding it harder to adjust their economies, to exploit new trade and economic 
opportunities and to meet the Millennium Development Goals (MDGs).  

In 2009-2010, unemployment and poverty levels increased, affecting another 120-150 million 
people  worldwide.  Young  people  and  school-leavers  have  been  particularly  hard  hit  by  the 
downturn and the current slow recovery, which creates few jobs and leads to migratory flows 
and  the  development  of  the  informal  or  “black”  economy.  National  social  safety  nets  are 
overstretched,  while  programmes  to  reduce  fiscal  deficits  are  being  implemented  by  cutting 
social, health and education budgets. Income inequality also increased, calling into question 
current pro-poor and redistributive public policies in both advanced and developing countries. 

In 2010, the European Union took important decisions on development policy, always with a 
bearing on the MDGs. The European Commission finalised a green paper on inclusive growth 
and  sustainable  development1,  a  green  paper  on  direct  budgetary  support2  and  a 
Communication  on  Africa-Europe  20203.  Furthermore,  the  EU  launched  a  reflection  in 
September  2011  on  EU  strategic  partnerships  with  emerging  economies  and  on  the  role  of 
Europe in the world. The mid-term review of the Country Strategy Papers suggested ways to 
meet  new  needs  and  challenges  in  EU  planning.  During  the  year,  the  EU  plan  of  action  on 
gender  equality  and  women's  empowerment  in  development  (2010-2015)  provided  the 
Commission, the European External Action Service (EEAS) and Member States with a tool to 
reinforce EU coordination on gender equality in development cooperation. 

Progress  on  global  development  also  means tackling  the  impact  of  climate  change  and 
protecting  the  environment.  At  conferences in  Nagoya  (Japan)  and  Cancun  (Mexico),  the 
EU worked  with  developing  partners  on new  international  regimes  for  biodiversity  and 
climate  change,  with  forests  a  core  theme  in  both.  On  these  occasions,  the  EU  provided 
detailed information on its financial support for biodiversity and climate change.  

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COM(2010) 629 final, 10.11.2010 
COM(2010) 586 final, 19.10.2010 
COM(2010) 634 final, 10.11.2010 

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In terms of institutional developments, 2010 was the first year of the Barroso II Commission 
and saw the creation of the EEAS under Catherine Ashton, High Representative of the Union 
for Foreign Affairs and Security Policy and Vice-President of the Commission. These Lisbon 
Treaty  reforms  together  with  the  availability  of  adequate  financial  resources  and  tools  will 
reinforce the EU’s status as main international actor and supporter of global development. 

INSTITUTIONAL CHANGES AT EU LEVEL 

The  Lisbon  Treaty  contained  big  changes  for  EU  foreign  policy,  including  overseas 
development. It established two new posts: the President of the European Council, who will 
cooperate  with  the  current  rotating  Council  Presidency,  and  the  High  Representative  for 
Foreign Affairs & Security Policy/Vice President of the Commission (HR/VP). The President 
of  the  European  Council  ensures  the  external  representation  of  the  Union  on  issues 
concerning the Common Foreign and Security Policy (CFSP), without prejudice to the role of 
the High Representative. The HR/VP is tasked to ensure the consistency and coordination of 
the  Union’s  external  action  and  to  be  responsible  within  the  Commission  for  its  external 
relations responsibilities and, as HR, to chair the Foreign Affairs Council and to conduct the 
CFSP. The European Commission ensures the EU's external representation on all issues other 
than  the  CFSP.  These  institutional  innovations  should  improve  the  framing  of  development 
and  foreign  policies  and  ensuring  a  more  effective  EU  external  voice  and  representation  in 
international fora, including the G8 and G20.  

The  European  External  Action  Service  has  been  created,  as  of  1  January  2011,  under  the 
authority of the HR/VP. It combines human resources from the Commission, the Council and 
the national diplomatic services of Member States. The role of the EEAS is to assist the High 
Representative  in  fullfilling  her  various  mandates  as  well  as  the  President  of  the  European 
Council,  the  President  of  the  Commission  and  the  Commission  in  the  exercise  of  their 
external relations functions. Besides its headquarters in Brussels, the EEAS also includes EU 
Delegations around the world. 

The  Lisbon  Treaty  has  increased  the  scope  for  Member  States  to  cooperate  with  third 
countries  using  a  more  flexible  approach  (known  as  enhanced  cooperation  or  ‘variable 
geometry’). The Lisbon Treaty also allows for more cooperation on security and defence. It 
has  also  raised  the  co-decision  capacity  of  the  European  Parliament,  which  will  improve 
Parliament's  relations  with 
institutions' 
accountability to citizens. It will also strengthen the legitimacy of European actions in areas 
including  overseas  development  and  external  relations,  making  EU  foreign  policy  more 
focused  and  coherent,  with  more  flexibility  and  better  coordination.  The  Treaty  foresees  a 
unified EU external representation in international fora as a longer-term objective.  

the  Commission  and  EU 

the  Council  and 

The Lisbon Treaty puts fighting poverty and helping countries attain the MDGs at the core of 
European external and development policies. 

Achieving the desired degree of coherence will require better coordination through permanent 
dialogue and communication with Member States. In development terms, this means a focus 
on  key  issues  like  increasing  the  volume  of  Official  Development  Assistance  (ODA),  aid 
predictability  and  aid  delivery  synchronisation,  as  well  as  joint  programming,  better 
international coordination, greater aid effectiveness and an efficient division of labour among 
donors. It should also mean more synergies between grants and loans, and more coherent EU 
policy dialogues with third countries and international financial institutions.  

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EU  enhanced  cooperation  among  Member  States  will  contribute  to  better  management  of 
European development assistance and more effective external policies.  

1. 

DELIVERING ON COMMITMENTS 

The  EU annual  policy  objectives  for 2010  included  a  proposal for  an  EU  action plan in the 
run  up  to  the  2015  MDG  Summit  and  work  to  ensure  aid  efficiency,  accountability  and 
consistent  synergies  between  development  policy  and  policies  such  as  migration,  security, 
climate action and energy, food security, access to health-care and education. 

1.1. 

Policy development and priorities 

1.1.1.  Progress on the MDGs 

In 2000, leaders of 189 countries committed their nations to a new global partnership, focused 
on eight Millennium Development Goals (MDGs) to reduce extreme poverty with a deadline 
of  2015  for  achieving  a  series  of  targets:  (1)  eradicating  extreme  poverty  and  hunger,  (2) 
achieving  universal  primary  education,  (3)  promoting  gender  equality  and  empowering 
women,  (4)  reducing  child  mortality  rates,  (5)  improving  maternal  health,  (6)  combating 
HIV/AIDS,  malaria,  and  other  diseases,  (7)  ensuring  environmental  sustainability  and  (8) 
developing a global partnership for development.  

Five years from the 2015 deadline, 2010 was a key year for the MDGs. On 20-22 September, 
the UN High-Level Plenary Meeting on the MDGs assessed progress and called for redoubled 
political and financial commitments to faster progress on all MDGs. 

Examples  of  EU  contributions  since  2005  to  reaching  the  Millennium 
Development Goals 

Assisting 24 million people with social transfers related to food security (MDG1) 

Enrolling nine million children in primary education (MDG2) 

Connecting 31 million households to better drinking water (MDG7) 

Constructing or maintaining 36 000 km of road (MDG8) 

Progress  has  varied  significantly  between  MDGs  and  between  regions,  countries  and 
population  groups.  Progress  has  been  good  on  reducing  global  poverty  and  on  other  goals 
such  as  universal  primary  education,  gender  equality  in  primary  education  and  access  to 
water.  However,  1.4  billion  people  still  live  in  extreme  poverty  and  several  MDGs  are 
seriously off-track. This is particularly the case for improving maternal health where almost 
no progress was made, while prospects for access to sanitation are bleak. Sub-Saharan Africa 
in particular has fallen behind on all MDGs. 

In  April  2010,  the  Commission  issued  a  set  of  concrete  proposals  for  EU  action  to  help 
developing countries achieve the MDGs by 2015. The Communication "A 12-point EU action 
plan in support of the Millennium Development Goals"4 proposed a comprehensive approach 

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COM(2010)159 final, 21.4.2010 

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that addresses the policy and financial dimensions. It sought to focus first on those countries 
most  off-track  and  most  in  need,  particularly  those  in  situations  of  fragility.  It  was 
accompanied by five staff working papers which analysed progress on the MDGs, financing 
for  development,  aid  effectiveness,  aid  for  trade,  and  a  2010-2013  policy  coherence  work 
programme. 

The Commission also made a series of policy proposals on food security5, global health6 and 
tax and development7. It published other thematic papers on education8 and on gender9 which 
all fed into the Commission comprehensive approach to the MDGs (for more information and 
references, see 1.1.2). 

The Council Conclusions on 14 June10 gave the EU an ambitious common position ahead of 
the UN MDG Summit. The EU position included actions to increase ownership by developing 
countries of the development process. It also highlighted aid efforts, improving the impact of 
policies, mobilising more and predictable financing for development, and using development 
resources more effectively. 

The EU took an active part in the process right up to the outcome document adopted at the 
UN.  It  engaged  in  dialogue  with  key  international  partners,  particularly  the  African, 
Caribbean and Pacific (ACP) countries with whom a joint political declaration on the MDGs 
was adopted in June. This demonstrated the shared commitment to reach the MDGs and the 
convergence of views on ways to accelerate progress. 

The European Commission also announced, at the UN Summit a €1 billion MDG Initiative to 
spur the policy dialogue on MDGs with ACP countries and to support those furthest off-track. 

Overall,  MDG  commitments  were  made  by  both  developing  and  developed  countries, 
creating  a  new  momentum.  On  average,  developing  country  governments  raise  about  ten 
times more revenue from domestic sources than they obtain in ODA. The potential, therefore, 
for mobilising more domestic resources is considerable in most developing countries. There is 
scope for helping developing countries to improve their capacity to raise more revenue. The 
Commission's  efforts  in  this  field  will  be  strengthened  by  its  Communication  on  tax  and 
development and ongoing work on budget support. 

Follow up of the 12-point action plan 

The EU has started to implement the 12-point action plan to support the Millennium 
Development Goals. Given that it cannot do everything everywhere, the plan focuses 
on off-track countries, including those in situations of conflict and fragility.  

On  Official  Development  Assistance,  all  donors  need  to  contribute  to  the  common 
goal on the basis of fair global and internal EU burden-sharing. The Commission has 

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COM(2010) 127 final, 31.3.2010 
COM(2010)128 final, 31.3.2010 
COM(2010)163 final, 21.4.2010  
SEC(2010)121, 04.02.2010 
SEC(2010) 265 final, 8.3.2010 
"Council Conclusions on the MDGs for the UN High-Level Plenary Meeting in New York and beyond 
– Supporting the achievement of the MDGs by 2015" 11080/10, 14 June 2010, and European Council 
Conclusions of 17 June 2010. 

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worked to share information by updating EU donor profiles. It is also preparing its 
ODA  report  to  the  European  Council.  As  part  of  this  process,  an  EU  report  on 
financing for development is being drafted and will contribute to Council discussions 
later in 2011. 

Every  euro  set  aside  for  development  has  to  be  used  effectively.  One  priority  is 
mutual  accountability. 
the  Commission  published  a 
Communication  on  mutual  accountability  and  transparency11  based  on  joint  work 
with  Member  States  at  technical  seminars.  Another  Communication  on  the 
progressive synchronisation of EU and national aid programming cycles is planned 
for the second half of 2011.  

In  October  2010, 

Mobilising the domestic resources of partner countries is crucial for development and 
for  establishing  relations  of  confidence  and  trust  between  citizens  and  their 
governments.  This  is  why  the  Commission  is  working  on  a  partnership  with  the 
African  Tax  Administration  Forum  through  regular  contacts  at  expert  level.  To 
promote revenue transparency and domestic accountability, it supports the activities 
of the Extractive Industry Transparency Initiative (EITI). 

The  EU  is  committed  to  supporting  the  expansion  of  the  private  sector  in  partner 
countries. In November 2010, the Commission concluded a study on the role of the 
private  sector  in  development.  In  the  same  month  it  took  part  in  the  EU-Africa 
Business Forum in Tripoli.  

Actions in other policy areas not directly linked to overseas development can have an 
impact on developing countries and development goals. The EU is leading the way in 
what  is  termed  policy  coherence  for  development  (PCD).  In  October  2010,  the 
Commission  worked  with  the  OECD  to  promote  PCD  at  international  level.  The 
EU’s  current  PCD  work  programme  2010-2013  includes  consultations  on  a 
Communication on the future of trade policy, and an impact assessment of the reform 
of the EU’s agriculture and fisheries policies.  

1.1.2.  Policy developments  

Attention in 2010 focused on core MDG areas such as health, education and gender equality. 
Policy documents were adopted in each field and were part of the EU contribution to the UN's 
MDG high-level event in September 2010.  

Health 

An open consultation on global health issues, and an intensive debate with EU Delegations, 
Member  States'  experts  and  stakeholders  led  to  a  Communication  on  the  EU  role  in  global 
health12  in  March,  followed  by  Council  conclusions.  This  new  EU  policy  framework 
addresses health challenges in developing countries in a number of ways:  

•  enhanced governance at global and national levels;  

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COM(2010)643, 05.10.2010 
COM(2010)128 final, 31.3.2010 

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• 

• 

fairer distribution of EU health aid through focused support for countries in greatest need;  

the application of aid effectiveness principles;  

•  stronger national health systems and a health-for-all approach at country level;  

•  ensuring  coherence  between  the  objectives  of  global  health  and  other  policies,  such  as 
trade  and  financing,  migration,  peace-keeping  and  security,  food  security  and  climate 
change.  

This Communication also responds to the findings and recommendations of a 2008 report by 
the EU Court of Auditors on EU support for health in sub-Saharan Africa.  

The EU policy on global health was presented to the World Health Assembly, and discussed 
at  the  Brussels  conference  on  global  health  in  June.  It  contributed  to  EU  inputs  on  global 
health  in  the  G8,  in  the  UN  global  strategy  for  women  and  children's  health,  at  the 
replenishment conference of the global fund to fight AIDS, tuberculosis and malaria, as well 
as  at  the  UN  MDG  summit.  The  year  ended  with  a  roundtable  at  the  annual  European 
Development  Days  event  which  discussed  concrete  opportunities  to  advance  the  EU 
commitments  on  global  health.  These  included  more  use  of  health  sector  budget  support, 
synergies  with  global  actors  such  as  the  US  in  the  framework  of  the  EU-US  dialogue  on 
development  policy,  and  engagement  with  Brazil  and  other  emerging  and  developing 
economies to discuss a global health framework at the 2011 World Health Assembly.  

Education 

The  February  2010  staff  working  document  on  more  and  better  education  in  developing 
countries13  emphasised  the  importance  of  good-quality  basic  education  as  a  foundation  for 
further learning, the balanced development of the whole sector and the creation of appropriate 
links to other sectors. It focused on the need for strengthening EU joint work, increasing EU 
financial  support,  broadening  the  financing  base  for  education,  and  concentrating  action  on 
countries with the greatest need. 

The Education for All (EFA) – Fast Track Initiative (FTI), where the Commission is a board 
member, contributed actively to reforms to reinforce the country focus, to cater better for the 
needs of fragile states and to improve decision-making, mutual accountability and FTI fund 
management.  Teaching  issues  were  a  special  focus  for  the  Commission  through  the 
international  task-force  of  teachers  for  EFA,  a  voluntary  global  alliance  of  EFA  partners 
working together to address teacher needs in terms of policies, capacities and financing. The 
Commission co-chairs the task-force with Indonesia and is its main funder. Work by the task-
force  helped  strengthen  cooperation  with  UNESCO,  a  task-force  member  and  host  to  its 
secretariat. 

The  Commission  was  actively  involved  in  the  Task-Force  for  Innovative  Financing  for 
Education, led by France. The Commission also reinforced contacts with the Association for 
the  Development  of  Education  in  Africa  to  promote  policy  dialogue  in  education  between 
donors and African partners. A successful side event at the EU-Africa summit of November 

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SEC(2010)121, 04/02/2010 

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2010 launched EU support for the Nyerere Programme, an intra-African mobility programme 
for students and academic staff, prepared in collaboration with the African Union.  

The Commission supported the initiative of the G20 development working group to draw up a 
multi-year  action  plan  for  development.  The  human  development  pillar  of  this  plan  will 
concentrate on employment-related skills and the creation of internationally comparable skills 
indicators and enhanced national employable skills strategies.  

Gender 

The  goal  of  equality  between  women  and  men  and  the  promotion  of  women's  rights  are  of 
fundamental importance for the EU. However, despite substantial progress over the last few 
decades,  women  and  girls  still  make  up  the  large  majority  of  the  world's  poorest.  They  are 
under-represented  in  governments  and  decision-making  bodies,  have  fewer  opportunities 
within  the  labour  and  financial  markets.  Sexual  and  reproductive  health  and  rights  are  still 
neglected  or  denied  in  many  countries  and  gender-based  violence  remains  a  widespread 
global phenomenon. 

In  June  2010,  the  Commission  and  Member  States  adopted  the  EU  action  plan  on  gender 
equality  and  women's  empowerment  in  development  (2010-2015)14.  Through  a  series  of 
activities and through policy dialogue, this action plan aims to accelerate the achievement of 
the MDGs and to improve the EU's work to advance gender equality in developing countries.  

The  action  plan  also  aims  to  reinforce  EU  coordination  with  partner  countries  regarding 
gender  equality  policies  to  increase  their  impact  on  the  ground.  For  example,  it  intends  to 
place gender equality issues systematically on the agenda of political and development policy 
dialogue with partner countries and to prioritise in-country civil society participation, capacity 
building and advocacy. 

Food security 

Developing  countries  account  for  98%  of  undernourished  people  with  an  average  level  of 
undernourishment of 16%. This is down from 18% in 2009, but still well above the MDG1 
target  of  10%.  Food  insecurity  gravely  affects  human  development,  social  and  political 
stability and progress towards the MDGs.  

In March 2010,  the European Commission adopted two new EU  policy frameworks  to help 
developing  countries  address  the  issue  of  food  security,  in  both  emergency15  and  long-term 
situations16. The objectives are to ensure progress toward achieving Millennium Development 
Goal  related  to  the  elimination  of  poverty  and  hunger  (MDG  1),  and  to  maximise  the 
effectiveness  of  humanitarian  support  in  crises  where  food  insecurity  threatens  lives.  Food 
security  implies  food  availability,  access  to  food  and  the  quality  of  food.  The  Commission 
promotes  an  environmentally  friendly  and  sustainable  agricultural  model,  adapted  to  the 
reality of developing countries and markets, and able to make food available, accessible and 
of  adequate  nutritional  quality.  It  therefore  concentrates  on  enhancing  the  productivity  of 
smallholder  farmers  and  the  resilience  of  rural  communities,  supporting  governance 
improvements  for  food  security,  and  strengthening  assistance  mechanisms  for  extremely 
vulnerable population groups.  

14 
15 
16 

SEC(2010) 265 final, 8.3.2010 
COM(2010) 126 final, 31.3.2010 
COM(2010) 127 final, 31.3.2010 

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In November, the Commission launched a public debate (via a Green Paper) on how the EU 
can best  support developing countries'  efforts to speed up progress towards the MDGs.  The 
Green Paper identified agriculture and food security as possible priority areas. 

Throughout 2010, the EU worked closely on food security with a number of actors, including 
the  three  Rome-based  UN  agencies  (the  FAO,  the  International  Fund  for  Agricultural 
Development, and the World Food Programme) and the US, under the EU-US development 
policy dialogue. The EU also contributed to further promoting food security governance at the 
global  level  by  contributing  to  the  reform  of  the  committee  on  world  food  security  and  by 
supporting the implementation of the food security agenda in the context of the G8 and G20 
(in particular the L'Aquila food security initiative).  

In December 2010, following its Mid-Term Review, the Food Security Thematic Programme 
was updated and a new Multiannual Indicative Programme for 2011-2013 was adopted with 
an overall budget of €750 million (see chapter 3). 

Culture 

The  year  2010  was  important  for  recognising  culture  as  an  essential  component  of 
development policy. Following the Brussels international colloquium "Culture and Creativity 
as Vectors for Development" in April 2009, the Spanish EU presidency and the Commission 
co-organised  a  major  event  in  Gerona  (4-6  May  2010).  There,  ministers  and  high-level 
officials from EU, ACP, Latin American and Mediterranean countries met with professionals 
and  cultural  institutes  to  translate  the  Brussels  achievements  into  an  action  agenda.  The 
Gerona  conclusions  highlight  the  urgent  need  to  incorporate  the  cultural  dimension  into  the 
MDG process (and all anti-poverty initiatives), as well the importance of taking concrete steps 
to  improve  donor  coordination,  create  practical  tools  to  raise  awareness  and  adopt  an 
integrated EU strategy.  

The European debate was rapidly taken up at international level, thanks mainly to close and 
effective  cooperation  with  UNESCO.  One  result  of  this  cooperation  was  a  statement  on  the 
importance of the cultural dimension in development cooperation in the outcome document of 
the  MDG  summit  in  September  2010  and  the  subsequent  adoption  of  a  UN  resolution  on 
culture and development, opening the way for a high-level event before the end of the MDG 
process. 

Coordination  between  EU  institutions,  Member  States  and  international  organisations 
advanced  through  the  dialogue  with  the  European  Union  National  Institutes  for  Culture 
(EUNIC). A debate was launched with the European Parliament about the role of culture in 
EU  external  relations  and  potential  staffing  implications  for  coordinating  the  EU  effort  on 
cultural cooperation and diplomacy on the ground. 

1.1.3.  Focus on poverty  

As a result of the global financial crisis, it will take years to restore jobs, cut fiscal deficits and 
reduce  foreign  debt.  Some  MDG  goals  may  be  compromised  unless  there  is  more  decisive 
progress. According to the UNDP and World Bank, many countries will not be able to meet 
the MDG objectives by 2015, especially the poverty-related indicators. 

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An  established  positive  correlation  exists  between  economic  growth,  reforms,  political 
stability/good governance, and effective poverty alleviation strategies. The developing world 
has sought to pursue these targets throughout 2010. The ongoing rapid growth in China, India, 
Brazil,  and  other  emerging  economies  has  been  impressive.  Yet  new  challenges  need  to  be 
addressed  such  as  environmental  degradation,  climate  change,  food  security  and  energy 
efficiency. These factors will impact on GDP and incomes per capita in coming years.  

All  EU  partners  in  eastern  Europe  and  the  Caucasus  which  are  covered  by  the  European 
Neighbourhood  and  Partnership  Instrument  (ENPI)  are  now  classified  as  middle-income 
countries  (MICs).  While  poverty  in  the  region  has  been  reduced,  social  inequality  and 
exclusion  are  still  increasing  at  country  and  regional  levels.  Regional  needs  remain 
significant.  The  Republic  of  Moldova17,  although  now  reclassified  as  a  low-middle  income 
country, remains the poorest country in Europe. Mediterranean countries covered by the ENPI 
also have to cope with poverty (all of them, apart from Israel, belong to the MIC category). 
Because  of  the  existence  of  informal  as  well  as  formal  redistributive  channels,  more 
budgetary  and  fiscal  discipline  is  needed.  Most  Mediterranean  countries  were  trying  to 
introduce reforms during 2010, but at a high social cost.  

In this difficult context, EU assistance through the ENPI focuses on job creation, improving 
the  investment  climate,  good  governance,  developing  social  infrastructures  and  support  for 
administrative, economic and social reforms. The most difficult social situation remains that 
of  the  occupied  Palestinian  territory  where,  despite  humanitarian  assistance,  the  socio-
economic  indicators  did  not  improve  in  2010,  leaving  more  than  30%  of  the  Palestinian 
population still living in poverty. 

There has been an impressive reduction of absolute poverty in Asia, led by China, India and 
most  countries  of  southeast  Asia.  However,  poverty  is  still  widespread  in  India  and  other 
countries  like  Afghanistan,  Bangladesh,  Cambodia,  Laos,  Myanmar/Burma,  Nepal,  North 
Korea,  Pakistan,  Papua  New  Guinea  and  Timor-Leste.  Economic  growth  has  led  to 
considerable income and regional disparities, including inequalities between rural and urban 
populations.  Development  levels  in  southeast  Asian  MICs  vary  greatly.  In  these  areas,  EU 
cooperation  through  the  Development  Cooperation  Instrument  (DCI)  focuses  on  capacity 
building,  social  infrastructures,  energy  efficiency,  land  management,  climate  change,  food 
security,  environmental  protection  and  trade  integration.  All  these  actions  have  spill-over 
effects on poverty alleviation strategies at regional and country level.  

Central  Asian  transition  countries  enjoyed  significant  growth  rates  over  the  past  decade  but 
have been considerably affected by the recent crisis. They felt the impact of weaker markets 
for  their  commodity  exports.  The  worst-affected  were  Kyrgyzstan  and  Tajikistan  –  poor 
countries hit by lost remittances from citizens working abroad – and Kazakhstan, faced with a 
banking crisis. Turkmenistan and Uzbekistan were less affected and benefited from the fiscal 
income and external surpluses generated by gas and oil exports. Overall, in the region growth 
rates  fell,  poverty  levels  roses  and  the  urban/rural  divide  widened.  To  help  meet  these 
challenges, EU assistance focuses on raising living standards, developing the social sector and 
providing a social safety net. It also seeks to improve the rule of law and public governance.  

Progress in economic and social reform during the 1990s and early 2000s ensured prolonged 
economic growth for Latin America. Poverty levels in the region fell significantly. However, 

17 

hereafter Moldova 

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an  average  of  40%  of  the  Latin  American  population  still  lives  in  poverty  and  income 
inequality  remains.  EU  programmes  under  the  DCI  support  the  fight  against  poverty  by 
promoting social cohesion and supporting regional integration. More recently, the EU policy 
dialogue 
trade,  migration, 
economic 
environment/energy/climate  change,  governance,  and  sustainable  development.  This  is 
particularly the case for countries like Argentina, Brazil, Chile, Mexico and Uruguay, among 
the upper MICs.  

competitiveness, 

broadened 

include 

to 

The  EU  has  changed  its  approach  to  development  policy,  making  it  more  innovative.  It 
considers  innovative  financing  mechanisms  so  as  to  guarantee  sustainable  growth  and 
inclusive,  “smart”  development.  Boosting  entrepreneurship,  enhancing  good  governance, 
developing  social  infrastructures  and  supporting  the  private  sector  have  become  the  main 
drivers of EU developmental programming. This influences poverty reduction very positively. 
The  Commission  intends  to  expand  further  innovative  financing  in  external  action  so  as  to 
optimise the leverage potential of the EU budget. 

Developed and developing countries will need to act more quickly to reach the MDGs in five 
years' time. Now the question is how to ensure that the development policy of the EU and its 
member states has the greatest possible impact in attaining its objectives. At a time when the 
credibility  of  aid  is  under  pressure,  demonstrating  this  increased  impact  is  more  important 
than ever for maintaining political and public support for development assistance. 

1.2.  Making cooperation work better 

1.2.1.  European Consensus on Development and the future of EU development policy 

The  European  Consensus  on  Development18,  which  marks  a  milestone  in  the  history  of  EU 
development cooperation, expresses the will of the European Union and its Member States to 
make a decisive contribution to poverty eradication and the Millennium Development Goals. 
It sets out for the first time a common EU vision on development based on more aid, better 
aid, improved policy coherence and a focus on Africa. 

In 2010, the EU undertook several major policy initiatives to further implement its common 
vision on development. In April, the Commission issued a comprehensive set of proposals on 
EU action to help developing countries achieve the MDGs by 2015 (see section 1.1.1). 

After  its  fourth  College  to  College  meeting  with  the  African  Union  Commission,  the 
European Commission adopted in June 2010 a communication on future EU-Africa relations 
in  the  lead-up  to  the  third  EU-Africa  summit  in  Tripoli  in  November.  On  that  occasion, 
leaders from both continents confirmed their commitment to the Africa-EU Joint Strategy by 
adopting  the  second  action  plan  (2011-2013)  covering  its  eight  thematic  partnerships  and 
underlining their will to strengthen cooperation on global challenges. 

The  Commission  launched  several  consultation  initiatives  in  2010  to  generate  a  broad 
reflection  on  the  future  of  EU  development  policy,  in  the  light  of  the  challenges  and 
opportunities  in  a  fast-moving  international  context  and  of  the  EU’s  new  institutional 
framework.  Consultations  launched  at  the  end  of  2010,  included  a  Green  Paper  on  EU 

18 

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

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development policy in support of inclusive growth and sustainable development (see section 
1.2.2) and one on the future of budget support. The latter aimed to draw lessons from more 
than  a  decade  of  providing  budget  support  and  invited  views  and  evidence  on  both  the 
opportunities of this tool and the ways to improve its quality, value for money and impact (see 
Chapter 4).  

The future of EU development policy 

The  Green  Paper  "EU  development  policy  in  support  of  inclusive  growth  and  sustainable 
development" explored ways in which EU development policy could be a catalyst for building 
developing  countries'  own  capacities  to  generate  inclusive  and  sustainable  growth  and 
mobilise  their  economic,  natural  and  human  resources  in  support  of  poverty  reduction 
strategies.  It  considered  the  possible  development  of  partnerships  for  inclusive  growth 
involving the public and private sectors and looked at climate change and energy policies as 
possible  drivers  of  sustainable  development  as  well  as  the  role  of  agriculture  in  achieving 
food security and boosting growth.  

The  results  of  this  consultation  will  feed  into  the  Commission's  policy  proposals  during  the 
course of 2011, including a Communication on modernising European development policy.  

The  Commission  services  also  launched  a  public  consultation  on  the  future  of  financial 
instruments for external relations. The objective was to gather ideas and opinions on a wide 
range of issues such as the added value of EU financial intervention in some areas, the options 
for new forms of cooperation and delivery mechanisms with partner countries, as well as the 
efficiency, impact and visibility of EU external cooperation.  

The  results  of  these  consultations  will  contribute  to  the  debate  over  whether  the  European 
Consensus or EU development policy in general needs updating in order to reflect better new 
development realities which have emerged since its adoption in 2005. 

As  for  policy  research,  the  second  edition  of  the  European  Report  on  Development  (ERD) 
was issued in December 2010. Drawn up under the lead of the European University Institute 
with extensive input from European and African researchers, it focused on social protection as 
a key tool to reduce poverty and vulnerability and to stimulate inclusive development and pro-
poor  growth  in  Sub-Saharan  Africa,  The  ERD  2010  also  made  a  number  of  policy 
recommendations on how the EU could enhance and improve its support in that region19. 

1.2.2.  Mainstreaming of cross-cutting issues 

The  Commission  is  committed  to  mainstreaming  certain  cross-cutting  issues  in  all  its 
activities as agreed in the European Consensus on Development. These are the promotion of 
human  rights,  democracy,  good  governance,  and  the  rights  of  children  and  indigenous 
peoples, gender equality, environmental sustainability and combating HIV/AIDS.  

Democratic governance 

Governance  is  at  the  core  of  the  EU’s  development  strategies  and  is  a  recurrent  subject  in 
policy dialogue with partner countries. The EU has adopted a broad approach to governance, 

19 

More information: http://erd.eui.eu/ 

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putting  the  emphasis  on  the  state's  ability  to  serve  the  citizens.  Participation,  inclusion, 
transparency,  accountability  and  anti-corruption  are  essential  components  of  the  EU's 
approach. 

Governance  is  crucial  for  a  sound  investment  climate,  good  public  finance  management, 
reducing  corruption,  improving  revenue  collection  for  development,  and  strengthening 
institutions  which  improve  domestic  accountability  and  contribute  to  political  stability. 
Governance  is  also  essential  for  sector  development  and  efficient  service  delivery.  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 
and  as  a  cross-cutting  issue.  It  has  made  progress  in  addressing  governance  at  sector  level 
through  initiatives  like  communication  and  awareness  raising,  sector-specific  support  and 
guidance, and the pilot applications of the approach presented in the Commission's reference 
document on "Analysing and Addressing Governance in Sector Operations"20.  

Anti-corruption 

To fight corruption effectively, the Commission depends on communication and the flow of 
information  to  its  own  operational  staff  and  close  cooperation  with  other  donors  and 
stakeholders.  A  set  of  initiatives  is  being  implemented  to  develop  operational  tools  and 
support  for  field  work.  The  Commission  is  part  of  a  joint  initiative  with  Transparency 
International,  the  UNDP  and  other  stakeholders  to  make  more  efficient  use  of  existing 
corruption  assessment  and  measurement  tools,  through  the  development  of  a  web-based 
gateway. The Commission cooperates with the Anti-Corruption Thematic Group at the World 
Bank, the UN Office of Drugs and Crime (UNODC) and the US State Department in a new 
initiative to reduce and prevent corruption by strengthening the institutional and operational 
capacities of national anti-corruption authorities.  

The European Commission is a member of the anti-corruption team of the OECD/DAC. The 
team focuses on: (i) joint guidance for implementing the UN Convention Against Corruption, 
(ii)  integrating  anti-money  laundering  in  development  assistance  and  monitoring  the  Accra 
Agenda  for  Action  commitments  on  asset  recovery,  and  (iii)  identifying  ways  to  deal  with 
international drivers of corruption at country level.  

Moreover, the Commission is party to a memorandum of understanding with other donors and 
the International Organisation of Supreme Audit Institutions (INTOSAI) to develop capacities 
of Supreme Audit Institutions in aid recipient countries.  

Several working relationships with civil society organisations are also in place for supporting 
citizens in the daily challenges posed by corruption, notably through legal advice and seeking 
to achieve systemic changes. 

Children’s rights 

The  first  draft  for  most  items  in  the  "Comprehensive  toolkit  to  address  child  rights  in 
European development cooperation and external relations" came from  UNICEF. The toolkit 
sets  out  to  support  the  work  of  partner  countries,  delegations  and  other  relevant  actors  and 
stakeholders.  

20 

http://ec.europa.eu/europeaid/infopoint/publications/europeaid/149a_en.htm 

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In 2010, 17 projects addressing the participation of children were shortlisted from a call for 
proposals  (out  of  866  concept  notes  received).  Another  call  for  proposals  on  child  labour 
generated a total of 661 responses. These projects will address the issue of providing positive 
incentives for the sale of products made without using child labour. 

Gender 

Gender  equality  and  women’s  empowerment  is  one  of  the  five  principles  of  EU's 
development policy. EU activities include capacity-building in developing countries, support 
for  women's  organisations  and  disseminating  information  on  gender  equality  through 
guidelines, best practices and greater awareness.  

In  June  2010,  the  Commission  and  Member  States  adopted  the  EU  action  plan  on  gender 
equality  and  women's  empowerment  in  development  (2010-2015)21  which  aims  to  improve 
the EU's work to advance gender equality in developing countries.  

Under  the  action  plan,  gender  equality  is  systematically  included  in  political  and  policy 
dialogues  with  partner  countries  to  raise  awareness  and  encourage  change.  It  also  proposes 
training on gender equality for staff in the EEAS and relevant Commission services, including 
all Heads of EU Delegations. The action plan also intends to make sure that gender equality 
issues are part of the annual  and  multi-annual  planning  process and to apply internationally 
accepted standards such as the "OECD Gender Equality Policy Marker", to track aid devoted 
to this issue.  

The  EU  also  continued  to  raise  gender  equality  and  women’s  rights  in  political  and  human 
rights-related dialogues with partner countries. These initiatives are now framed in a coherent 
and  coordinated  way  in  the  EU  guidelines  on  violence  against  women  and  girls  and 
combating all forms of discrimination against them.  

The EU maintained its effort to protect women in conflict and post-conflict situations, and to 
enlist  women’s  full  participation  in  conflict-prevention,  peace-building  and  reconstruction 
processes.  It  implemented  the  EU  comprehensive  approach  to  UN  Security  Council 
Resolutions 1325 and 1820 on women, peace and security. Indicators were adopted by the EU 
Council  in  July  to  track  implementation  across  member  states  and  institutions  as  well  as 
among Common Security and Defence Policy (CSDP) missions.  

On  the  tenth  anniversary  of  UNSCR  1325,  the  EU  and  the  Belgian  Council  Presidency 
organised  a  high-level  event  in  September  on  ensuring  women’s  participation  in  peace  and 
security.  

Building  gender  capacity,  developing  methodological  tools  and  improving  coordination  and 
collaboration  with  the  main  actors  on  gender  issues  are  priorities.  Online  courses  were 
available  for  EU  staff,  governments,  donors  and  representatives  of  multilateral  and  civil 
society organisations.. The role of ‘gender focal person’ has been created in practically all EU 
delegations,  whose  tasks  include  the  mainstreaming,  supporting  and  monitoring  of  all 
activities concerning gender equality and women's empowerment. 

Environment, including climate change 

21 

SEC(2010) 265 final, 8.3.2010 

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In 2010, the Commission and the Member States produced the first draft of an environment 
integration strategy which will be submitted for public consultation in early 2011. The results 
will be incorporated into an ambitious EU wide strategy, to be presented to the EU Council by 
late 2011.  

The  Commission  continued  earlier  work  on  the  application  of  the  "Guidelines  on  the 
Integration  of  Environment  and  Climate  Change  in  Development  Cooperation"22  to  address 
environment  and  climate  change  as  cross-cutting  issues.  Efforts  were  made  to  promote 
harmonised approaches between development partners on how to integrate environment and 
climate  change  mitigation  and  adaptation  in  development  programmes.  Several  internal  ex-
post  studies  were  conducted  to  assess  the  integration  of  environment  and  climate  change  in 
development cooperation, and to evaluate the efficiency and the effectiveness of the tools and 
methods  used  (environmental  integration  indicators  study,  and  strategic  environmental 
assessment  review).  In  collaboration  with  member  states,  the  Commission  has  developed  a 
methodological tool to help assess, establish and implement a programme-based approach in 
the  environment  and  natural  resources  sector.  Finally,  it  also  carried  out  a  study  on 
environmental  fiscal  reform  with  a  view  to  promoting  the  concept  of  green  taxation  and 
budgeting. 

An  intensive  programme  of  staff  training  and  information  seminars  on  environment  and 
climate change mainstreaming, carried out in Brussels and in partner countries, were attended 
by more than 400 participants in 2010.  

The  Commission  also  started  mainstreaming  climate  change  in  all  EU  regional  investment 
facilities through the creation of specific Climate Change Windows in each facility, allowing 
more informed investments in, and tracking of, climate change-related projects funded by the 
EU, the EIB and other European finance institutions through these facilities. They cover both 
public  and  private  investments  in  strategic  areas  like  transport,  energy,  environment,  water, 
sanitation and forests. 

Culture 

Both  the  international  seminar  in  Gerona,  Spain  (May),  and  the  UN  summit  on  the  MDGs 
(September)  stressed  the  cross-cutting  and  horizontal  nature  of  the  cultural  dimension  of 
development.  No  effective  aid  programme  is  possible  without  proper  consideration  of  the 
cultural  dimension,  whatever  the  sector.  A  case  in  point  is  the  cooperation  strategy  for  the 
reconstruction  and  development  of  Haiti,  where  cultural  implications  are  to  be  taken  into 
account within all sectors. 

1.2.3.  Coherence between development and other policies 

The  European  Union  is  a  major  global  actor.  Its  policies  have  therefore  a  major  potential 
impact  on  developing  societies  and  economies.  The  Lisbon  Treaty  requires  the  European 
Union to take into account in all its policies of the objectives of development cooperation. 

Better coherence of development policies means identifying possible joint efforts by the EU 
and its developing country partners, providing benefits for both. The Commission applies this 
principle  in  the  Communication  "Tax  and  Development  -  Cooperating  with  Developing 

22 

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Countries on Promoting Good Governance in Tax Matters"23. The proposals include helping 
developing  countries  committed  to  the  principles  of  good  governance  in  tax  matters  to 
enhance  their  regulatory  and  administrative  capacities  in  tax  matters,  and  identifying  tax 
mechanisms, and more transparent accounting practices for multinational enterprises, notably 
in the mining sector. 

Another approach is the relaxation24 of rules of origin for countries benefitting from the EU’s 
general  system  of  preferences  (GSP),  which  grants  privileged  access  to  the  EU  market  for 
exports from developing countries. While easing the rules will help all GSP beneficiaries, it is 
particularly important for the least developed countries (LDCs), which qualify for additional 
concessions.  For  them,  the  new  rules  of  origin  in  the  textile  and  clothing  sector  no  longer 
require individual LDC to both spin the yarn and weave the cloth. 

Another  important  initiative  in  this  areas  is  the  comprehensive  study  launched  by  the 
Commission to assess the impact of EU production, consumption and trade in both food and 
non-food commodities on deforestation and forest degradation. The objective of this study is 
to identify the policy reforms needed at EU and national level. 

In some instances, EU policies have to bear in mind the legitimate interests of EU citizens, as 
when  setting  animal  and  plant  health  norms  which  may  cause  difficulties  for  exports  from 
developing  countries.Creating  greater  coherence  between  EU  policies  and  development 
objectives  may  mean  helping  developing  partners  to  adjust  export  capacities  to  new  norms, 
where necessary and feasible. 

The  EU  also  supported,  through  the  Seventh  Framework  Programme  for  Research  and 
Development  (FP7),  cooperation  between  researchers  in  Europe  and  developing  countries. 
Since  the  start  of  FP7  in  2007  €356  million  has  been  granted  to  researchers  in  developing 
countries to participate in collaborative projects with European researchers.  

These  are  examples  of  how  the  EU  is  bringing  about  greater  coherence  between  non-
developmental policies and development objectives. To take account of these objectives in a 
systematic manner, the EU has put in place mechanisms to guide EU decision-makers and to 
monitor progress in policy areas with potential impact on development objectives. 

The  Commission  issued  a  work  programme  on  policy  coherence  for  development  for  the 
period 2010-201325 in April. It covers five broad areas: 

• 

• 

trade and finance - to raise the chances of developing countries to obtain maximum 
benefit from their integration into the world economy; 

food security - to support an environment where developing countries can mobilise 
their own resources, particularly in fishing and agriculture; 

•  climate change - to help developing countries to adapt to climate change and reduce 

CO2 emissions while preserving environmental balance and biodiversity; 

23 
24 
25 

COM(2010)163 final, 21.4.2010  
Agreed by the EU on 18 November 2010 
SEC(2010) 421 final, 21.4.2010 

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•  migration - to bring about better coordination between migration and development 
by reducing the risk of "brain drain", by making migrants’ remittances cheaper and 
safer, or by facilitating circular migration;  

•  security - to give more consideration to links between security and socio-economic 

development when planning and implementing security operations. 

The PCD work programme is conceived as a tool for all EU institutions and Member States, 
to  guide  their  decision-making  across  the  broad  range  of  decisions  that  affect  developing 
countries'  opportunities.  The  Commission,  for  its  part,  will  focus  its  PCD  work  on  the 
initiatives  identified  in  the  work  programme.  Through  interservice  consultations  and  impact 
assessments  (including  trade  sustainability  assessments)  it  will  ensure  that  development 
objectives are taken into account and reconciled with other EU objectives. 

As in 200726 and 200927, the Commission will issue a comprehensive report in autumn 2011 
on progress towards greater coherence of its policies with development objectives. 

Although  a  global  player,  the  EU  is  not  the  only  one  whose  actions  significantly  affect 
developing countries. Efforts by the EU alone to bring more coherence to its policies would 
not  be  effective  and  sustainable  without  efforts  by  other  major  developed  countries  or 
emerging economies. The EU supported the UN General Assembly Resolution "Keeping the 
promise: united to achieve the Millennium Development Goals" of 22 September 2010 which 
called for increased efforts at all levels to enhance policy coherence for development28. The 
EU  also  supports  efforts  by  the  OECD  to  spread  the  concept  and  best  practice  of  policy 
coherence for development beyond OECD members, and welcomes the determination of G20 
members to pursue development- oriented policies. 

1.2.4.  Aid effectiveness and co-financing 

The  EU  worked  hard  in  2010  to  meet  its  commitments  to  implement  the  internationally 
agreed aid effectiveness agenda. With the next UN high-level forum scheduled for the end of 
2011 in Busan, South Korea, the EU focused on outputs at three levels: 

(1) At international level, with the working party on aid effectiveness (WP-Eff) of the OECD 
development  assistance  committee  (DAC)  to  develop  the  approach  and  deliverables  for 
Busan. The European Commission contributed to the outputs for increasing aid effectiveness 
at country level, e.g. on use of country systems, division of labour among donors, technical 
cooperation, aid transparency and accountability, and monitoring the Paris Declaration29. To 
reach this objective, the Commission provided active support to the OECD-WP-Eff co-chairs 
during  the  "focus  country  missions".  The  objective  was  to  support  a  limited  number  of 
volunteer countries (Ecuador, Ghana, Indonesia, Mali) to accelerate the commitments. 

(2) At EU level, with the 27 Member States and the Commission to implement the operational 
framework  on  aid  effectiveness30,  adopted  in  2009.  The  EU  added  new  chapters  to  this 
framework  on  cross-country  division  of  labour  and  on  mutual  accountability  and 

26 
27 
28 
29 
30 

COM (2007) 545 final, 6.10.2010 
COM (2009) 461 final, 8.9.2010 
Paragraph 41 of the resolution 
http://www.oecd.org/dataoecd/11/41/34428351.pdf 
15912/09 http://register.consilium.europa.eu/pdf/en/09/st15/st15912.en09.pdf 

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transparency.  The  consolidated  operational  framework  is  a  unique  set  of  commitments  to 
strengthen the implementation of aid effectiveness principles going beyond the commitments 
of the Accra Agenda for Action. It was agreed that the EU and its Member States will further 
explore  the  possibility  of  using  the  Transparent  AID  (TR-AID)  system.  TR-AID  is  an  EU 
donors' coordination tool developed by the European Commission with the primary objective 
of facilitating the sharing of aid funding data amongst EU donors.  

The  EU  is  responding  to  calls  by  partner  countries  and  non-state  actors  to  make  its  aid 
delivery more transparent and accessible in line with agreed standards. To gather evidence on 
aid  effectiveness,  the  Commission  launched  a  number  of  studies  whose  results  will  be 
available  in  2011  and  2012.  There  is  also  work  in  progress  to  create  a  database  containing 
information on aid by all EU Member States, designed to improve the division of labour.  

Aid effectiveness is an essential tool for achieving the MDGs. To speed up production of joint 
EU  country  strategy  papers  and  multiannual  programmes,  the  Commission  is  preparing  a 
proposal  to  synchronise  EU  and  national  programming  cycles  at  partner  country  level  and 
based on partner countries' strategies and their programming cycles. 

The  Commission  coordinates  positions  on  aid  effectiveness  both  with  member  states  and 
between  the  EU  and  international  partners  like  OECD/DAC,  UN  and  G8.  This  will  be  of 
particular importance in 2011 as the EU prepares its position for Busan. 

The  EU  and  the  US  are  committed  to  work  together  to  strengthen  aid  effectiveness  at  the 
global  and  partner  country  level.  The  Joint  Statement  at  the  EU-US  summit  of  November 
2010 identifies in-country division of labour, transparency and accountability as areas where 
the EU and the US will develop a common work plan. The aim is to start implementing the 
action plan in selected partner countries before the end of 2011. 

(3) At Commission level, 2010 was the year for meeting priority targets on aid effectiveness. 
The  Commission  adopted  an  operational  document  proposing  ten  high-impact  actions  for 
201031  which  addresses  three  main  aid  effectiveness  priorities:  division  of  labour,  use  of 
country  systems,  enhanced 
technical  cooperation.  This  document  which  outlined 
responsibilities  across  the  Commission  lists  a  set  of  actions  with  strict  deadlines  to 
demonstrate  concrete  and  measurable  results.  First  lessons  can  already  be  drawn  from  this 
exercise:  

•  Division  of  labour  among  donors  to  reduce  aid  fragmentation  is  a  strategic  tool  to 
implement the aid effectiveness agenda. But it is still a slow process with no real political 
steer. The current attention given at Commission level to specific country cases seeks to 
remedy the situation. 

•  The  Commission  has  analysed  country-by-country  the  four  points  related  to  the  use  of 
country systems as the first option for channelling bilateral assistance. These are: internal 
constraints,  scope  for  increasing  budget  support,  scope  for  increasing  decentralised 
management,  and  reasons  for  not  using  country  systems.  Based  on  this  analysis,  the 
Commission’s performance is on target, with 50% of government-to-government support 
being provided through country systems.  

31 

http://ec.europa.eu/europeaid/how/ensure-aid-effectiveness/documents/10actions-for-2010-accelerating-
aid-effectiveness_en.pdf 

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•  Action to reinforce capacity building and make technical cooperation more effective has 
been  widely  mainstreamed  at  EU  headquarters  and  at  Delegation  level.  Monitoring  and 
tracking tools for quality criteria are starting to deliver satisfactory results. 

For more information, see chapter 4. 

1.3.  Working with partners in a changing environment 

1.3.1.  Cooperation with the donor community  

The  Commission  continued  to  strengthen  its  cooperation  with  traditional  donors  and  new 
emerging partners. The main achievements under the EU-US Development Dialogue in 2010 
were  an  agreement  on  joint  roadmaps  for  cooperation  on  food  security,  climate  change  and 
the MDGs as well as the selection of pilot countries for food security and climate change. The 
2010  EU-US  Summit  gave  the  dialogue  an  additional  mandate  in  the  field  of  aid 
effectiveness. In April the first annual policy dialogue with Japan on development was held. 

The  Commission  participated  actively  in  the  development-related  work  of  the  G8  during 
2010.  This  included  drawing  up  the  first  G8  accountability  report  to  monitor  development 
related  commitments  since  2005.  At  the  G8  Muskoka  summit  in  June,  the  Commission 
pledged  an  additional  €50  million  for  the  mothe r-and-child  health  initiative.  At  the  Seoul 
summit  in  November,  G20  leaders  endorsed  the  Seoul  Development  Consensus  for  Shared 
Growth, which gives development a new growth-oriented approach. G20 members agreed a 
multiyear  action  plan  to  address  key  bottlenecks  to  growth,  particularly  in  low-income 
countries.  This  is  the  first  ever  joint  initiative  on  development  to  involve  emerging  and 
advanced economies. The EU strongly supports the G20 agenda which will help developing 
countries build the capacity to achieve and maximise their growth potential. 

New donor countries – such as China, Russia, Brazil and some Arab states – have joined the 
donor community, bringing additional resources, as well as new approaches and values. The 
Commission  funded  a  China-DAC  study  group  on  infrastructure  in  September,  bringing 
together Chinese, African and DAC experts and officials to discuss development policy. 

Engagement  with  the  private  sector  is  also  being  seen  as  increasingly  important  for 
development outcomes.  

1.3.2.  Cooperation with international organisations 

United Nations 

Throughout 2010, 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 with individual UN bodies and the UN system as a whole as part of an 
international policy agenda.The Commission has continued to project EU policy priorities and 
values in its dealings with the UN. 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. The Commission supports UN efforts to promote system-wide coherence and to 
increase UN effectiveness, including in its country-level operations. 

In  2010,  the  Commission  represented  the  EU,  in  the  work  of  the  main  bodies  of  the  UN, 
including the General Assembly and the UN Economic and Social Council. 

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The successful Millennium Development Goals summit in September was the key UN event 
in 2010. It produced a new commitment on the part of many government leaders to the MDGs 
and how they can be achieved. 

For the first time in a General Assembly plenary, the EU was represented by the Commission 
President , who announced the EU MDG initiative allocating €1 billion in support of MDGs.

OECD 

Close cooperation with the OECD on development issues continued throughout 2010. While 
the Commission benefits from the OECD’s analytical and statistical work on development, it 
tries  to  make  sure  that  EU  priorities  and  values  are  appropriately  reflected  in  the  OECD’s 
work.  In  2010,  the  Commission  helped  draw  up  the  new  mandate  of  the  Development 
Assistance Committee and the definition of development goals within the OECD. At the DAC 
senior level meeting, the Commission pushed for the implementation of the aid effectiveness 
agenda, modernisation of development financing and progress on the MDGs.  

International financial institutions 

Cooperation  between  the  European  Commission  and  the  international  financial  institutions 
(IFIs),  namely,  the  World  Bank  (WB),  the  International  Monetary  Fund  and  regional 
development banks continued to operate well in 2010. 

WB and IMF 

The Development Commissioner attended the spring and annual meetings of the WB and IMF 
in  Washington  in  April  and  October  2010.  He  addressed  the  joint  WB/IMF  Development 
Committee  on  the  main  agenda  items:  a)  the  resilience  of  developing  countries  to  the 
economic crisis and the role of the WB, b) the International Development Association's role 
in assisting developing countries and its focus on results, and c) progress on WB governance 
reform. 

In  2010,  the  reform  of  IFI  governance  and  capital  increases  for  the  WB  and  the  African 
Development  Bank  (AfDB)  remained  the  object  of  international  attention.  During  the 
negotiations, the EU supported a bigger say for developing and transition countries in the IFIs 
and supported efforts to ensure the multilateral development banks are sufficiently capitalised. 

The  Commission  encouraged  and  participated  in  regular  coordination  meetings  among  the 
European representatives of the member states on the boards of the IFIs and encouraged the 
adoption of common European statements. 

European Investment Bank (EIB) 

In  the  past,  the  EU  has  guaranteed  EIB  financing  outside  the  EU  under  the  so-called  EIB 
external  mandate  which  defines  maximum  guaranteed  amounts  and  policy  objectives. 
Following a mid-term review, the Commission submitted a legislative proposal32 in 2010 to 
revise  the  mandate  for  the  remainder  of  the  current  financing  period  to  2013.  The  main 
features  of  the  proposal  are  to  extend  the  financing  mandate  in  favour  of  climate  change 

32 

COM(2010) 174, 21.4.2010 

EN 

23 

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projects  with  an  additional  €2  billion  and  to  develop  EIB  regional  operational  guidelines  to 
better reflect EU regional strategies in the implementation of EIB activities. 

Regional Development Banks (The African Development Bank) 

The tripartite partnership on Africa between the World Bank, the African Development Bank 
and  the  European  Commission  was  jointly  and  comprehensively  reviewed  in  2010.  The 
review recommended a shift towards a high-level policy dialogue, with a flexible agenda to 
respond  to  changing  priorities.  Implementing  review  findings  begun  and  will  continue  in 
2011. 

The Commission maintained strong bilateral ties with the AfDB, including regular meetings 
at  senior  management  level.  The  Commission  also  continued  to  fund  the  production  and 
distribution  of  the  AfDB's  annual  publication,  the  African  Economic  Outlook33,  through 
cooperation at high-level launch events, as with the Belgian EU Presidency in July. 

1.3.3.  Cooperation with non-state actors and local authorities 

Non-state  actors  (NSAs)  and  local  authorities  (LAs)  remain  essential  partners  in  EU 
development  and  external  policy.  Cooperation  in  2010  continued  on  the  definition  of 
development strategies and their role as implementers of development policy actions. 

Besides  the  regular  in-country  consultations,  at  EU  delegation  level  on  geographic  and 
thematic  operations,  a  substantial  dialogue  with  NSAs  and  LAs  took  place  at  headquarters 
level  on  several  key  policy  issues.  These  included  aid  effectiveness,  policy  coherence  for 
development, financing for development, the future of European development policy. 

The Commission also launched a structured dialogue in March on the place of NSAs and LAs 
in EU external and development policy. This exercise, which will end in May 2011, seeks a 
common understanding on the strategic role of NSAs and LAs and the effectiveness of their 
involvement34.  

Implementing  the  strategy  defined  in  the  Commission’s  2008  Communication  on  local 
authorities as actors for development35 continued with, for example, the release of the atlas of 
decentralised  cooperation  in  July36.  Preparatory  meetings  were  held  ahead  of  the  next 
‘Assizes of decentralised cooperation’ scheduled for March 2011 and work continued on the 
portal of decentralised cooperation that should be operational during the first quarter of 2011. 

The  EEAS  will  become  part  of  channels  of  communication  with  NGOs  and  other  relevant 
civil society actors in the field of development. These will be particularly relevant regarding 
EU relations with emerging economies in Asia and Latin America, and EU efforts to stabilise 
fragile states, support inclusive, sustainable growth and achieve the MDGs. 

1.4. 

Outlook for 2011 

In the main, a lot has been done towards achieving the MDGs by the 2015 deadline. However, 
there  are  significant  regional  differences,  with  Asia  out  in  front  and  Sub-Saharan  Africa 

33 
34 
35 
36 

http://www.afdb.org/en/knowledge/publications/african-economic-outlook/  
http://ec.europa.eu/europeaid/who/partners/civil-society/structured-dialogue_en.htm 
COM(2008) 626, 8.10.2008 
http://portal.cor.europa.eu/atlas/fr-FR/Pages/welcome.aspx 

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lagging  behind  on  many  indicators.  Some  MDGs  –  notably  child  mortality  and  maternal 
health  –  are  seriously  off-track.  The  pace  must  accelerate  if  all  MDGs  are  to  be  reached  in 
2015.  

New  challenges  are  complicating  an  already  difficult  situation.  The  economic  crisis  and 
earlier spikes in food and fuel prices have hit developing countries hard. Climate change and 
energy,  plus  political  and  security  issues  are  also  impacting  on  their  ability  to  reach  the 
MDGs. Furthermore, citizens and politicians in the EU and other donor countries question the 
rationale for more development aid at a time when domestic austerity measures are beginning 
to bite. Together, these additional challenges have created a new context for EU development 
policy in 2011 and beyond. 

Alongside the new challenges, the creation, as of 1 January 2011, of the European External 
Action  Service  and  the  merger  of  the  former  Commission  Directorates-General  for 
Development  and  EuropeAid  into  a  single  Directorate-General  for  Development  and 
Cooperation – EuropeAid offers opportunities for more policy coherence, particularly at the 
point where development, security and foreign policy converge, and between policy-making 
and implementation 

The  public  consultation  on  EU  development  policy  ends  in  January  2011.  The  results  will 
form  part  of  the  input  for  a  Communication  on  modernising  EU  development  policy  to  be 
issued  in  late  2011.  It  will  outline  the  framework  for  EU  development  policy  until  2020. 
During  2011,  the  Commission  will  also  present  its  proposals  for  the  EU’s  multiannual 
financial  framework  for  the  period  2014-2020.  The  legislative  proposals  for  the  financial 
instruments  for  external  action  will  be  presented  towards  the  end  of  2011.Moreover,  the 
Commission  is  exploring  the  possibility  to  create  an  EU  Platform  for  external  Cooperation 
and Development designed to foster EU coherence, effectiveness, efficiency and visibility in 
external financing, by combining respective strengths of the Commission, the EIB and other 
Bilateral and Multilateral Finance Institutions. 

Several  other  Communications  will  be  published  later  in  2011.  A  Communication  on  EU 
budget  support  will  propose  an  EU  vision  of  a  support  that  more  effectively  and  efficiently 
contributes  to  the  development  objectives  of  partner  countries.  A  Communication  on 
enhancing growth and investment in developing countries will define the enabling framework 
and the financial tool-box to address the main barriers to business competitiveness and new 
investment,  notably  through  inclusive  and  sustainable  joint  ventures  involving  public  and 
private actors.  

The  Commission  will  also  issue  the  EU  development  finance  accountability  report  in  the 
spring  of  2011.  This  report  will  present  EU  progress  on  the  international  financing  for 
development agenda and identify ways to get the EU back on-track to reach its 2015 targets 
for ODA. It will also cover tax governance and EU fast-start climate finance for developing 
countries.  The  EU  played  a  facilitating  role  at  the  16th  Conference  of  the  Parties  to  the  UN 
framework convention on climate change in Cancun. The Cancun event adopted a balanced 
package  of  decisions  –  the  "Cancun  Agreements".  They  represent  another  important  step 
towards  building  a  comprehensive  and  legally-binding  framework  for  climate  action  for  the 
period post-2012, when the current Kyoto climate protocol expires. 2011 will concentrate on 
the follow-up to the Cancun conference. This includes the further implementation of the EU 
commitment to provide €2.4 billion of fast-start funding for developing countries. This money 
will  support  adaptation  and  mitigation  to  climate  change,  as  well  as  capacity  building  and 
transfer  of  technology.  In  line  with  Cancun,  adaptation  will  be  prioritised  for  the  most 

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vulnerable  developing  countries,  especially  the  LDCs  and  small  island  developing  states 
(SIDS).  

The  Commission  will  continue  its  intensive  climate  outreach  activities  at  bilateral  and 
regional  level.  It  will  also  further  implement  the  dialogue  and  support  components  of  the 
Global Climate Change Alliance. These dialogue and outreach activities will contribute to a 
common  vision  between  developing  countries  and  the  EU  for  achieving  a  sound  climate 
agreement  at  the  Durban  (South  Africa)  climate  conference  at  the  end  of  2011.  Following 
Cancun, the EU will implement the agreement on reducing emissions from deforestation and 
degradation  (REDD+).  This  includes  sustainable  management  of  forests,  improving  forest 
governance and enhancement of forest carbon stocks. The Commission will also continue to 
implement the EU's disaster risk reduction strategy. 

The  EU  will  further  assess  its  fair  share  in  the  long-term  climate  funding  commitment  to 
developing countries of $100 billion per year by 2020. The Commission played a constructive 
and  lead  role  alongside  the  member  states  at  the  10th  Conference  of  the  Parties  to  the  UN 
convention  on  biological  diversity  in  Nagoya.  The  Commission  will  in  2011  start 
implementing  the  Nagoya  agreements  on  biological  diversity  (including  access  and  benefit 
sharing  of  genetic  resources)  and  continue  work  on  the  EU's  environmental  integration 
strategy. 

Policy coherence for development will be a major undertaking for the Commission in 2011, 
with  the  continued  implementation  of  the  PCD  work  programme  2010-2013  and  the 
publication  of  the  third  EU  report  on  coherence.  This  will  examine  coherence  between 
development  aid  and  other  EU  policies  in  five  broad  areas  (see  section  1.2.4).  The  policies 
concerned  include  trade,  agriculture,  fisheries,  energy,  environment,  immigration  and 
transparency of international financial flows.  

The third edition of the European Report on Development (ERD) will focus on the complex 
development  challenge  of  sustainable  management  of  natural  resources.  The  Report  will  be 
issued by the end of 2011. 

Following-up  recent  key  events  will  be  important,  notably  the  UN  MDG  summit  of 
September 2010 and the third Africa-EU summit in Tripoli in November. Implementation will 
begin of the joint Africa-EU strategy’s second action plan (2011-2013), which was adopted in 
Tripoli. Building on the progress of the past three years, joint efforts will be made to deliver 
swiftly concrete results on the eight thematic areas of the action plan, as well as to strengthen 
the political relationship. 

Two  key  international  development  events  will  take  place  in  2011.  The  fourth  high-level 
forum on aid effectiveness (HLF4) will take place in Busan, South Korea from 29 November 
to  1  December.  The  performance  of  donors  and  partner  countries  in  implementing  the 
effectiveness  agenda  will  be  assessed  against  the  commitments  contained  in  the  Paris 
Declaration and the Accra Agenda for Action. The forum will also decide on future options 
for raising aid effectiveness. Busan will be a multi-stakeholder event bringing together up to 
2000  participants  from  150  countries.  It  is  important  that  the  EU  and  its  Member  States 
maintain an ambitious agenda for HLF4. They will prepare a common EU position. 

The  fourth  UN  conference  on  the  least  developed  countries  takes  place  in  Istanbul  in  May 
2011.  The  EU  common  position  will  emphasise  EU  contributions,  highlight  LDC 
responsibilities and call for supporting action from emerging economies. The EU input will be 

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based  on  three  priorities:  ensuring  a  favourable  environment,  achieving  inclusive  and 
sustainable growth, and tackling vulnerability.  

The  EU  will  continue  to  strengthen  its  cooperation  with  traditional  and  emerging  donors.  It 
will in particular continue building its engagement with the US via the EU-US development 
dialogue. The main challenge for 2011 will be to achieve concrete results in the fields of food 
security  and  climate  change  in  selected  pilot  countries.  There  will  be  an  annual  ministerial 
meeting of the EU-US development dialogue and a second development policy dialogue with 
Japan. 

The  EU  will  increasingly  support  the  role  of  the  emerging  economies  in  providing 
development  assistance, including South-South and triangular cooperation. In particular, the 
Commission  will  make  efforts  to  turn  the  work  programme  on  trilateral  cooperation  agreed 
with Brazil and mainly Portuguese-speaking African partners into concrete projects in 2011. 
The  Commission  will  participate  actively  in  the  follow-up  activities  of  the  G20  summit  in 
Seoul  via  the  development  working  group,  including  on  the  wider  agenda  of  growth  with 
resilience and to further promote cooperation on development with China and Africa. 

2. 

IMPLEMENTATION: GEOGRAPHIC OVERVIEW 

This chapter presents the EU's external assistance in the main geographic regions. 

The geographic instruments are:  

• 

• 

• 

the European Neighbourhood and Partnership Instrument (ENPI),  

the European Development Fund (EDF),  

the Development Cooperation Instrument (DCI), 

The European Development Fund is the main source of financing for EU assistance to Sub-
Saharan Africa (except South Africa), the Caribbean and the Pacific regions (ACP). The EDF 
is separate from the EU budget, which finances external assistance to other geographic areas 
and the thematic aid programmes. 

This  report  does  not  cover  the  Common  Foreign  and  Security  Policy  (CFSP)37  or  the 
Instrument  for  Pre-Accession  (IPA)38.  A  short  section  of  this  report  is  dedicated  to 
humanitarian assistance39. 

Some figures and data are used to illustrate this chapter but detailed financial information can 
be found in the Annexes. 

37 
38 

39 

EN 

For more information on CFSP: http://www.eeas.europa.eu/cfsp/index_en.htm 
For  more 
information  on 
assistance/instrument-pre-accession_en.htm 
For 
http://ec.europa.eu/echo/media/publications/annual_reports_fr.htm 

humanitarian 

information 

assistance, 

more 

on 

see 

the  IPA:  http://ec.europa.eu/enlargement/how-does-it-work/financial-

ECHO's 

report: 

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2.1. 

European Neighbourhood and the Middle East 

2.1.1.  The European Neighbourhood and Partnership Instrument 

2.1.1.1.  Introduction 

The  European  Neighbourhood  Policy  (ENP)  offers  16  of  the  EU’s  southern  and  eastern 
neighbours40  closer  political  association,  enhanced  trade  and  economic  integration,  greater 
mobility  and  assistance  in  sectoral  reforms.  The  aim  of  the  ENP,  as  set  out  in  its  strategic 
documents,41 is to build, together a prosperous, secure and stable neighbourhood on the basis 
of shared values and common interests.  

A Commission Communication taking stock of the European Neighbourhood Policy42 and the 
fourth  set  of  ENP  progress  reports  were  presented  in  May  2010.  They  noted  significant 
progress in several key areas, particularly in the economic field, but not enough on democratic 
reforms and human rights, as already stressed in previous reports. The reports demonstrated 
the  clear  benefits  that  the  EU  brings  to  its  neighbours.  For  five  years,  the  EU  has  been 
delivering more trade, more aid,  more  people-to-people contacts and far deeper cooperation 
with  its  neighbours  on  the  whole  range  of  economic,  political  and  sectoral  reforms.  The 
partnership  has  advanced  significantly  in  areas  like  transport,  energy,  environment  and 
climate change, research, health and education. ENP funding increased by 32% in the current 
financing period (2007-2013) and will reach over €2 billion annually by 2013. 

In July 2010, the EU Council invited the High Representative and the Commission to review 
the future implementation of the ENP. A series of consultations have since taken place with 
member states, partner countries, the European Parliament, academic experts and civil society 
organisations. This reflection will provide guidance for a strategic review of the ENP in 2011.  

While the EU has already concluded Association Agreements or Partnership and Cooperation 
Agreements with most (13 out of 16) ENP countries. In October 2010, the EU invited Syria to 
sign  an  association  agreement.  Four  rounds  of  negotiations  on  a  framework  agreement  with 
Libya were held and the Commission decided to open an office in Libya in 2010, the last ENP 
partner  where  it  did  not  have  such  a  presence.  As  regards  Belarus,  the  EU  reaffirmed  its 
readiness to deepen bilateral relations, depending on progress towards respect by Belarus for 
the principles of democracy, human rights and the rule of law. Negotiations on an Association 
Agreement  with  Ukraine  continued,  expanding  more  recently  to  include  the  creation  of  a 
Deep and Comprehensive Free Trade Area. Negotiations on an Association Agreement were 
launched with Armenia, Azerbaijan,, Moldova and Georgia.  

The EU and most ENP partners continued to implement jointly agreed bilateral ENP Action 
Plans or – in the case of Ukraine – the association agenda, with objectives including political 
and  security  issues,  trade  and  economic  matters,  environmental  concerns,  integration  of 
transport and energy networks, scientific and cultural cooperation, people-to-people contacts 
etc. 

40 
41 
42 

http://ec.europa.eu/world/enp/policy_en.htm 
http://ec.europa.eu/world/enp/documents_en.htm 
COM(2010)207, Commission Communication on the Implementation of the European Neighbourhood 
Policy 

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Relations  between  the  EU  and  Russia  are  based  on  the  wide-ranging  strategic  partnership, 
distinct  from  the  ENP.  The  seventh  round  of  negotiations  with  Russia  on  a  new  bilateral 
agreement  was  concluded  in  December.  Cooperation  and  dialogue  with  Russia  were  also 
taken forward in the context of the four so-called Common Spaces. 

The four dimensions of EU-Russia cooperation43:  

1. The Common Economic space, covering economic issues and the environment;  

2. The Common space of freedom, security and justice;  

3. The Common space of external security, including crisis management and nuclear 
non-proliferation;  

4. The Common space of research and education, including cultural aspects.  

An intensive dialogue on drugs was maintained with Russia in 2010 through regular contacts 
and  meetings.  In  parallel,  negotiations  were launched  on  an  agreement  with  Russia  on  drug 
precursors (chemicals used to manufacture drugs). 

Besides  reinforcing  bilateral  relations  through  the  ENP,  the  EU  also  actively  promotes 
regional  and  multilateral  cooperation  through  initiatives  such  as  the  Union  for  the 
Mediterranean, the Eastern Partnership, the Black Sea Synergy, and the Northern Dimension.  

In the southern neighbourhood, the first Summit at heads of state/government level took place 
with  Morocco  in  March  in  Granada  (Spain),  in  the  context  of  implementing  its  “Advanced 
Status”  with  the  EU.  Efforts  to  reinforce  the  institutional  capacity  of  the  Union  for  the 
Mediterranean  (UfM)  eventually  led  to  the  full  establishment  of  the  UfM  Secretariat  in 
Barcelona,  including  legal  statutes,  annual  work  plan,  staff  regulations  and  operational 
budget.  A  planned  UfM  summit  was  postponed  twice:  first  in  June  and  then in  November. 
UfM sectoral ministerial meetings did take place in 2010, dealing with water, tourism, trade, 
labour, employment, economic and financial affairs. 

As  regards  the  eastern  partners,  work  took  place  to  launch  preparatory  activities  for 
comprehensive institution building (CIB) actions. CIB seeks to strengthen a limited number 
of  core  institutions  which  are  central  in  preparing  for  and  implementing  future  association 
agreements  including  deep  and  comprehensive  free  trade  areas.  CIB  also  includes  visa 
liberalisation  as  a  long-term  goal.  A  budget  of  €173  million  has  been  set  aside  for  the  six 
partner countries, through their 2011-2013 national indicative programmes. The four thematic 
platforms of the Eastern Partnership have set up panels on integrated border management, the 
fight against corruption, public administrative reform, environment and climate change, trade 
and SMEs.  

Black Sea Synergy continued to develop. Its major achievement was the launching of the first 
Black Sea sector partnership, on the environment. 

43 

For more information: http://eeas.europa.eu/russia/common_spaces/index_en.htm  

EN 

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The  Northern  Dimension  is  a  framework  for  cooperation  between  the  EU,  Iceland,  Norway 
and  Russia.  The  EU  contributed  to  its  development  with  the  launch  of  the  partnership  on 
transport and logistics plus the creation of a new partnership on culture.  

The  EU  cooperation  agenda  with  all  ENP  countries  and  Russia  is  funded  through  the 
European  Neighbourhood  and  Partnership  Instrument.  The  ENPI  supports  a  wide  range  of 
cooperation  activities  through  15  country  programmes,  three  multi-country  programmes44, 
and  its  cross-border  cooperation  component45.  It  also  provides  the  bulk  of  EU  financial 
support to the Palestinian Authority. 

The  Neighbourhood  Investment  Facility  (NIF),  financed  under  the  ENPI  inter-regional 
programme, remained fully active in 2010. During 2008-2010, the NIF supported 35 projects 
in  transport,  environment,  and  energy  as  well  as  social  and  private  sectors  with  NIF  grants 
totalling €260 million. This helped to mobilise €9.4 
billion of investment from international 
financial institutions.  

2.1.1.2.  Aid effectiveness and donor coordination 

Efforts  towards  greater  aid  effectiveness,  including  better  donor  coordination,  intensified  in 
2010  as  EU  Delegations  drove  the  pace  of  work,  consolidating  their  leadership  of  the  aid 
effectiveness agenda on the donor side. The Delegations consolidated their pro-active role in 
promoting  the  division  of  labour  and  burden-sharing  among  donors,  while  seeking  more 
partner  government  ownership  and  leadership  of  the  aid  process.  Good  progress  is  reported 
from Moldova, which was chosen as one of the pilots for the EU Fast Track Initiative on the 
division  of  labour  and  where  a  newly-created  EU  donor  coordination  network  should  bring 
positive results. 

Work  to  strengthen  partner  government  ownership  of  EU  aid  programmes  pushed  ahead. 
Efforts  to  implement  the  EU's  backbone  strategy  for  technical  cooperation  also  helped  to 
improve  partner  government  ownership.  In  Ukraine,  a  new  framework  for  government-
donor working groups was agreed, based on the priorities of the ENP association agenda. This 
also contributed to a closer alignment of donor support for government priorities and helped 
donors to coordinate their positions on a wide range of policy issues like public procurement 
and the provision of international experts.  

In many ENPI partner countries, the EU Delegations ensured progress on the aid effectiveness 
agenda by setting up and running donor-government working groups as in Georgia and Egypt. 
In  Egypt,  the  government  went  on  to  establish  a  mutual  accountability  mechanism  with  the 
donor  community.  The  EU  Delegation  to  Egypt  coordinates  EU  donors  in  this  process 
through a task force on aid effectiveness. In the occupied Palestinian territory, 12 EU sector 
strategies have been developed in cooperation with the Palestinian Authority under a specific 
EU-led donor group, where the EU Delegation acts as secretariat and facilitator. This marks 
significant  progress  on  the  division  of  labour  and  will  facilitate  joint  or  coordinated 
programming in the future. 

44 

45 

Regional  East  supporting  the  Eastern  Partnership,  Regional  South  supporting  the  Union  for  the 
Mediterranean and the Inter-Regional. 
http://ec.europa.eu/europeaid/where/neighbourhood/regional-cooperation/enpi-cross-
border/index_en.htm 

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30 

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Emphasis  on  sector  budget  support  helped  the  EU  to  align  its  aid  to  partners'  sectoral 
strategies. This meant that more than 50% of aid to all ENPI countries in 2010 was channelled 
through country systems in line with the Paris Declaration and the Accra Agenda for Action. 
Furthermore closer coordination among EU donors resulted in several joint programmes co-
financed  by  the  EU  and  its  Member  States  in  the  ENPI  region.  This  helped  cut  transaction 
costs  for  both  partner  countries  and  donors.  This  was  the  case  in  Morocco  where  joint 
programmes  in  several  areas  such  as  education,  health  and  water  treatment  were  financed. 
Moreover these joint programmes made it possible to delegate the implementation to member 
state agencies (like GIZ of Germany for a water programme in Jordan). Similarly, some EU 
Member States have transferred funds to the Commission to implement. This is the case in the 
occupied  Palestinian  territory  for  instance  where  considerable  EU  Member  State  funds  are 
channelled  through  the  PEGASE  mechanism  which  supports  the  running  costs  of  the 
Palestinian Authority. 

2.1.1.3.  Working towards the MDGs 

In  2010  a  large  part  of  ENPI  resources  were  devoted  to  the  social  sector  with  many 
programmes aimed directly or indirectly to eradicate extreme poverty and hunger.  

Examples of efforts at poverty reduction (MDG1) include a programme to support economic 
recovery  in  Lebanon  and  one  on  poverty  alleviation  through  local  development  in  Jordan. 
Programmes  contributed  towards  MDG1  in  Georgia  by  providing  immediate  relief  and 
housing to internally displaced persons and in Moldova by giving special support to the most 
vulnerable people in order to cope with the effects of increased energy prices.  

According  to  the  UN's  MDG  Monitor46,  MDG  goals  in  the  areas  of  universal  primary 
education (MDG2), reduction of child mortality (MDG4) and improvement of maternal health 
(MDG5) are very likely to be achieved by 2015 in the EU's southern neighbourhood region. 
Continuous  progress  towards  achieving  the  MDGs  can  also  be  observed  in  the  eastern 
neighbourhood region, where MDG1 and MDG2 have already been achieved. 

With the successful implementation of education programmes in Algeria, Egypt, Jordan and 
Morocco  plus  health-reform  programmes  in  Algeria,  Egypt  and  Syria,  these  MDG  goals 
remain  key  targets  of  EU  support  in  the  ENPI  south  region.  As  for  HIV/AIDS  (MDG6), 
examples  of  cooperation  include  a  programme  to  develop  a  national  HIV/AIDS  strategy  in 
Libya.  EU  support  to  the  health  sector  in  Moldova  has  also  started  reversing  the  global 
incidence of tuberculosis by 21% and of HIV by 13%. In the occupied Palestinian territory, 
disbursements  are  made  through  the  Pegase  mechanism  to  vulnerable  Palestinian  families, 
targeting particularly maternal health (MDG5).  

The EU also works to meet the goal of ensuring  environmental sustainability (MDG7) with 
the  successful  implementation  of  programmes  to  improve  drinking  water,  waste  water 
management  and  sanitation  in  Algeria,  Egypt,  Jordan,  Morocco,  the  occupied  Palestinian 
territory and Syria. It also implements programmes aimed at energy efficiency and renewable 
energies in Jordan, Tunisia and Ukraine. Gender equality (MDG3) remains a key challenge in 
the EU's southern neighbourhood region. The EU has been active mainly through the regional 
programme  on  gender  equality  and  civil  society.  In  the  eastern  neighbours,  EU  support  has 
brought progress and chances are high of achieving this goal by 2015. 

46 

http://www.mdgmonitor.org 

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Towards a Mediterranean solar plan 

In October 2010, a three-year project financed by the EU started: "Paving the Way 
for the Mediterranean Solar Plan (MSP)". The project aims to improve the conditions 
for  an  increased  use  of  renewable  energy,  in  particular  solar  energy,  across  all  the 
Southern  Mediterranean  Partner  Countries.  The  focus  is  on  combining  renewable 
energy  with  energy  efficiency  and  savings.  The  project  aims  to  harmonise  the 
legislative  and  regulatory  frameworks,  strengthen  institutional  capacity,  improve 
knowledge  transfer  and  capacity  building  in  renewable  energy  technologies,  and 
improve the business climate. It will support and coordinate activities among various 
stakeholders,  targeting  for  example  ministries  in  charge  of  energy,  finance,  and 
social  affairs,  industry,  the  research  community,  and  International  Financing 
Institutions. 

2.1.1.4.  Implementation 

In  2010,  new  ENPI  funding  for  southern  and  eastern  neighbours  totalled  €1.807 billion.  Of 
this,  71%  is  being  provided  through  bilateral  programmes,  21%  via  regional  and  inter-
regional  programmes,  and  8%  via  cross-border  cooperation  initiatives.  A  large  share  of 
bilateral assistance was provided through budget support operations which continue to be an 
important tool to support reforms in the region.  

In 2010, 14 new budget support operations were approved in the ENPI region for an overall 
value  of  €589 million.  A  total  of  €427 million  went
  to  nine  new  operations  in  southern 
partners  (Algeria,  Egypt,  Jordan,  Morocco,  Tunisia)  while  €162 million  were  committed  to 
five operations in eastern partners (Armenia, Georgia, Moldova, Ukraine). The 2010 budget 
support  commitments  represent  31%  of  all  ENPI  commitments  and  44%  of  all  bilateral 
commitments. 

In the ENPI region, the new budget support programmes are largely sector-based and aim to 
support  reforms  in  the  education,  water  and  agricultural  sectors,  while  also  contributing  to 
strengthening  border  management  and  public  financial  management  (PFM).  Dialogue  on 
PFM  issues  is  being  improved  for  budget  support  programmes  and  for  the  follow-up  to  the 
public expenditure and financial accountability (PEFA) diagnosis which has been completed 
or  is  underway  in  all  countries,  as  well  as  via  technical  assistance  programmes.  The  use  of 
budget support in Lebanon and Syria was also being explored at the end of 2010. 

Twinning  is  another  mechanism  for  supporting  eastern  and  southern  neighbours.  Twinning 
operations  bring  together  Member  States'  public  sector  entities  with  counterparts  in 
neighbourhood  countries  in  a  wide  range  of  fields.  They  are  effective  in  transferring 
knowledge,  expertise,  and  EU  practice.  They  remain  important  in  EU-supported  efforts  to 
build capacity and give partners greater access to the EU’s single market. 

In the area of research, a cross-thematic call for proposals was published in 2010 through the 
7th  Framework  Programme  (FP-7)  with 
€22  million  dedicated  to  cooperation  with 
Mediterranean  and  Black  Sea  countries.  It  focuses  on  the  effects  of  natural  and  man-made 
pressures on the Mediterranean and the Black Sea as a result of natural and human activities, 
and on wind energy.  

Bilateral cooperation 

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In  the  eastern  partnership  region,  programme  implementation  is  well  underway  and  annual 
action programmes were adopted in 2010. 

The launch of association agreement negotiations with Armenia in mid-2010 confirmed the 
need to provide support to the government in key sector reforms. The result was a multisector 
budget support operation concentrating on public finance management including public sector 
transparency, and areas related to the deep and comprehensive free trade area. Additionally, 
the 2010 programme will enhance dialogue with civil society and help the Armenian media to 
report  more  professionally  on  political  and  other  events.  The  comprehensive  institution 
building  memorandum  of  understanding  was  signed  in  late  2010,  paving  the  way  for 
institutional  reform  plans  in  the  first  half  of  2011.  Moreover  2010  saw  a  big  increase  in 
twinning operations in transport, statistics, competition and environment. 

In  Azerbaijan,  continued  support  went  on  the  energy  and  justice  sectors.  EU  funding  also 
focused on strengthening the capacity of the administration to develop and implement reforms 
already  foreseen  in  the  main  areas  of  cooperation.  The  twinning  mechanism  was  used 
extensively in various sectors of the EU-Azerbaijan action plan. Eight new twinning contracts 
were  negotiated  in  2010  in  agriculture,  employment  and  social  affairs,  health,  finance  and 
trade, while others were under preparation. 

In Belarus, the 2009 annual action programme focusing on quality controls, especially norms 
and standards for food safety was signed in mid-2010. The programme also deals more than 
previously  with  energy  efficiency.  The  programme  priorities  have  since  been  subject  to 
review following political developments linked to presidential elections in December 2010. 

EU  assistance  to  Georgia  in  2010  had  a  positive  impact  in  a  variety  of  sectors,  including 
public  finance  management,  criminal  justice,  human  rights,  food  safety  and  continued 
assistance to internally displaced persons (IDPs). For example, 8 231 flats for IDPs have been 
rebuilt or renovated and new infrastructure has been created, including pumpong stations for 
drinking water supply and the construction of roads in villages in the military conflict zone.  

EU  budget  support  has  also  helped  the  Georgian  authorities  to  identify  shortcomings  in  the 
management  of  public  finances.  The  2010  assistance  programme  continues  support  for  the 
reform  of  public  finances,  inter  alia,  by  establishing  a  modern  framework  for  debt 
management  and  an  evaluation  system  for  public  expenditure.  Further  support  will  seek  to 
reduce regional disparities within Georgia and to stimulate regional development. 

Community centres for conflict-affected groups in Georgia 

In  Georgia,  EU  funding  enabled  the  setting-up  of  several  community  centres  for 
conflict-affected communities. These centres bring together long-time residents and 
internally displaced persons in the towns of Gardabani, Tskaltubo, Zugdidi, Poti and 
Gali to facilitate their socio-economic integration. All the towns are affected by past 
conflict.  But  looking  to  the  future,  local  leaders  have  created  gathering  places  for 
citizens  and  government  to  address  problems  and  create  opportunities  for  all.  Art, 
dance, computer and language classes are offered. Other projects include renovating 
kindergartens and hospital wards and laying out playgrounds and sports fields. These 
activities had a positive long-term impact especially on young people who started to 
work  together  and  linked  up  in  a  web  forum.  Additionally  the  community  groups 
were transformed into NGOs, which will ensure the continuity of the projects.  

EN 

33 

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Important progress was achieved in Moldova in the social and health sectors. Support in the 
health sector brought about an increase in state funding, the rehabilitation of primary health 
care centres and an increase in the number of these centres. It also brought about a fall in the 
incidence  of  tuberculosis  (by  21%)  and  HIV  (by  13%).  This  was  made  possible  through 
financial  support  of  more  than  €30  million,  which  had  a  positive  effect  on  the  fiscal  deficit 
and  overall  macroeconomic  stabilisation.  Twinning  operations  increased  during  2010, 
supporting reforms in competition policy, intellectual property rights and public procurement. 

In Ukraine, new sector programmes for border management and the judiciary were approved 
in 2010. A sector programme to support the ambitious public administration reform initiated 
by the government is under preparation, together with the comprehensive institution building 
programme under the eastern partnership. Besides sector reform support, technical assistance 
was provided for capacity and institution building in a wide range of fields which come under 
the EU-Ukraine association process. Twinning projects have increased and cover the sectors 
of justice, statistics, civil service reform and the social sector. 

In  2010,  EU  support  for  Russia  continued  to  foster  reforms  and  development  in  higher 
education,  in  particular  through  the  EU  Tempus  and  Erasmus  Mundus  programmes. 
Continued support went to EU education centres which are expected to meet the demand for 
more  information  and  to  create  a  better  understanding  of  the  European  Union  and  its 
institutions.  

In 2010, a particular success was achieved in the environmental sector, where the construction 
of a sludge incinerator in St Petersburg has been completed and already reduces the pollution 
of the Baltic Sea. Moreover support to Russia contributed to reform the judiciary, for instance 
through free legal counsel and human rights training for over 700 judges and prosecutors.  

In the Maghreb, budget support was introduced in Algeria for the first time in 2010, building 
on  previous  support  in  the  water  and  sanitation  sector  and  following  an  assessment  of 
eligibility.  This  mechanism  is  proving  to  be  a  catalyst  for  a  more  intense  policy  dialogue, 
including on PFM issues. The first five twinning operations were approved in sectors such as 
environment, finance and trade. 

Algeria uses TV broadcasts to save water 

In  Algeria,  a  national  communication  plan  including  TV  and  radio  coverage  was 
launched  to  raise  awareness  on  saving  water.  The  EU  has  also  funded  four 
laboratories equipped to analyse micro-pollutants. In addition, 45 decrees related to 
the law on water have been drafted, out of which 25 have already been published and 
150 people have been trained in water management issues. An integrated information 
system and a national plan for water are being finalised. People in Algeria now have 
greater access to water and the quality of it has significantly improved, the campaign 
has  also  led  to  a  change  in  public  understanding  concerning  water  conservation 
issues.  

In Libya, the EU remained active in the field of health and HIV/AIDS during 2010. The sixth 
phase  of  the  Benghazi  action  plan  supported  the  implementation  of  a  Libyan  national 
HIV/AIDS strategy, assisting Libyan efforts to improve the quality of health care for people 
living  with  HIV  and  AIDS  and  developing  approaches  to  reduce  the  risks  of  infection.  The 
EU  also  stepped  up  its  cooperation  with  Libya  on  migration,  in  order  to  increase  the 

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34 

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effectiveness of border and migration management, while raising the standards of treatment of 
migrants and protecting their fundamental rights.  

The  2010  programme  for  Morocco  focused  on  poverty  alleviation  and  socio-economic 
development, supporting two high-priority government strategies. One is to increase access to 
basic  social  services  and  foster  economic  development  of  populations  in  remote  areas.  The 
second  is  to  support  reform  of  the  Moroccan  agricultural  and  rural  sector,  including  the 
protection of natural resources. This support complemented previous EU support in the field 
of basic education and literacy. 

EU cooperation with Tunisia focused in 2010 on the water sector, supporting Tunisian public 
policy on water management for rural and agricultural development. Particular attention was 
paid  to  sustainable  development,  through  different  programmes  on  energy  management, 
environmental  actions  by  enterprises  and  awareness-raising  on  environmental  issues.  In 
addition, Tunisian efforts to foster growth and keep macroeconomic and financial indicators 
in  balance  were  supported,  in  order  to  favour  the  economic  and  trade  integration  of  the 
country. The programme for Tunisia is currently being reviewed in order to take into account 
the latest political developments in the country. 

The  EU  continued  its  extensive  cooperation  with  Egypt  in  2010,  supporting  efforts  to 
improve  the  life  of  the  citizens  through  reforms  and  investments  in  key  services.  Initiatives 
included  support  for  the  water  sector  designed  to  strengthen  institutional  structures  and 
promote  more  efficient  use  of  water  resources,  while  protecting  public  health  and  the 
environment.  The  EU  also  cooperated  in  a  major  wind  farm  project  that  will  produce  clean 
renewable  energy,  thus  limiting  greenhouse  gas  emissions.  Additional  funds  in  the  ongoing 
research, development and innovation programme will help to facilitate Egypt's move towards 
a knowledge-based economy. Support for justice reform will strengthen capacities and target 
the juvenile justice system and the fight against trafficking in human beings. 

During  2010,  EU  programmes  in  Lebanon  supported  the  government’s  reform  agenda  in 
high-  priority  sectors,  such  as  security,  policy  planning,  infrastructure  and  agricultural 
development. These programmes built on ongoing EU actions in the country.  

In Syria, the EU continued its focus on the modernisation of the health sector and launched in 
2010  a  new  programme  with  the  ILO  and  the  UNDP  to  help  reform  the  social  protection 
systems.  A  joint  EU-EIB  action also  focused  on  improving  water,  waste  and  wastewater 
management.  During  2010,  the  EU  continued  to  support  the  Syrian  government's  moves 
towards a social market economy with one programme for the modernisation of the industrial 
sector and another for vocational training.  

EU support for Jordan  focused  on  improving  public  financial management, in particular to 
achieve  a  better  match  between  the  planning  and  execution  of  the  state  budget.  This  was 
complemented by a programme to improve water management, a crucial sector in a country 
with  one  of  the  lowest  levels  of  water  availability  per  capita  in  the  world.  The  EU  also 
continued  to  support  the  Jordanian  decentralisation  process  which  fosters  local  economic 
development, and strengthens the capacity of the central and decentralised state structures, as 
well  as  of  non-state  actors,  to  improve  the  governance  of  the  country.  EU  support  has 
positively contributed to the regulatory reform process, including in relation to privatisation. 
Impact  can  be  seen  on  the  daily  life  of  Jordanian  citizens  (easy  access  to  telephones, 
competition  among  operators,  etc),  and  at  the  institutional  level  –  for  instance  with  the 

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creation  of  the  Civil  Aviation  Regulatory  Commission  and  the  establishment  of  a  Master's 
Degree course in regulation from which the first students graduated earlier this year. 

In Israel, the focus of cooperation was on promoting the approximation of Israeli norms and 
standards to those of the EU using the twinning instrument, with two projects completed in 
data  protection  and  urban  transport.  Implementation  of  a  twinning  project  on  equal 
opportunities began in 2010. 

The  substantial  aid  provided  to  the  occupied  Palestinian  territory  (€427  million  in  2010) 
was channelled mainly through the PEGASE mechanism, covering recurrent expenditures of 
the  Palestinian  Authority,  as  well  as  technical  assistance  and  equipment  for  the  Palestinian 
reform  and  development  plan  and  public  infrastructure  development.  Included  in  this 
assistance  was  support  for  the  private  sector  in  the  West  Bank  and  Gaza  and  to  Palestinian 
institutions  in  East  Jerusalem  in  the  health,  education  and  social  sectors.  The  EU  also 
continued to support UNRWA (the United Nations Relief and Works Agency) in all its fields 
of operations. 

Helping the poorest and most vulnerable Palestinian families  

Through  PEGASE,  the  European  Union  provides  significant  amounts  of  direct 
financial support to the Palestinian Authority (PA) for the sustained delivery of basic 
public services in the West Bank and Gaza. Part of the funding goes towards social 
allowances for the poorest and most vulnerable Palestinian households, through the 
PA's cash transfer programme. An average of 50 000 families are directly reached by 
the scheme. The allowance is paid quarterly and can be claimed in 47 bank branches 
throughout the occupied Palestinian territory. 

Through  this  mechanism,  the  EU  has  a  direct  and  immediate  impact  on  the  well-
being  of  the  Palestinian  population  and  on  the  capacity  of  the  PA  to  continue 
providing  essential  public  services  to  its  citizens.  By  the  end  of  2010,  over  €113 
million had been distributed through the most vulnerable Palestinian families (VPF) 
programme.  

Regional cooperation 

The  programmes  for  regional  cooperation  complement  bilateral  assistance  and  tackle 
challenges  affecting  the  ENPI  region.  The  launch  in  2009  of  the  Eastern  Partnership  (EaP) 
and in 2008 of the Union for the Mediterranean (UfM) created new frameworks for regional 
cooperation, enhancing the existing programmes. Five regional programmes were launched in 
2010:  "East-Invest",  "Air  quality  governance  in  the  ENPI  East  countries",  "Eastern 
Partnership culture programme", "Supporting participation of eastern partnership and central 
Asia  cities  in  the  Covenant  of  Mayors"  and  "Paving  the  way  for  the  Mediterranean  solar 
plan".  These  increased  the  number  of  programmes  now  under  implementation  to  more  than 
70. 

In  2010,  within  the  eastern  neighbours,  a  series  of  seminars  and  meetings  took  place  at 
regional  level, on  issues  corresponding  to  the  areas  of  work  of  the  platforms:  good 
governance,  democracy  and  stability,  economic  integration,  energy  security  and  contacts 
between people. Five of the six EaP flagship initiatives were launched in 2010, and some are 
under  implementation,  touching  issues  such  as  border  management,  support  for  small  and 
medium-sized enterprises, and environmental governance.  

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Under the EaP, the energy cooperation programme remains a top priority, with the INOGATE 
programme  along with environment. In 2010 the Covenant of Mayors initiative generated a 
€5 million project. The social and human dimens ion also remained important with the launch 
of the first eastern partnership culture programme with a budget of €12 million. 

The  positive  experiences  of  Med-invest  for  the  southern  countries  inspired  the  launch  of  a 
similar  programme,  East  Invest,  targeting  support  to  the  SME  sector  in  eastern  partnership 
countries.  

Regional  cooperation  with  southern  neighbours  in  the  UfM  process  is  on  track  with  the 
establishment  of  the  Barcelona  secretariat  in  2010  and  the  adoption  of  a  2011  budget  of 
around  €3  million.  UfM  priorities  are  on  sustaina ble  development,  especially  environment 
and  water  management,  as  well  as  on  energy  and  social  and  civil  affairs.  In  the  sector  of 
training  and  education,  the  EU  provided  support  to  the  Euro-Mediterranean  University 
(EMUNI).  The  pilot  inter-regional  programme  launched  in  2009  (sustainable  urban 
development  –  CIUDAD),  gave  rise  to  21  grant  projects  involving  the  16  ENP  beneficiary 
countries and three EU countries with a high degree of cross-regional experience. Numerous 
projects are the continuation of activities that began in 2008 and 2009, concerning governance 
(Euromed police, Euromed migration) as well as the economy (Agadir agreement) transport 
(Euromed  aviation  project  II),  social,  cultural  and  human  dimension  (Euromed  audiovisual 
III, Euromed heritage IV and, Euromed youth IV). 

Regional development with Egypt's south Sinai Bedouins 

In  the  southern  Sinai,  where  the  majority  of  the  population  are  rural  Bedouins,  an 
integrated  regional  development  programme  is  improving  living  conditions  and 
protecting cultural and natural resources. The project supports the provision of basic 
social  services  through  infrastructure  such  as  water  supply,  sanitation  and  solid 
waste.  It  also  provides  grants  to  local  Bedouin  communities.  Thirty-five  Bedouin 
women in the area of the Saint Catherine monastery have been trained to make and 
market  herbal  medicines.  A  further  500  Bedouin  women  have  been  trained  in 
traditional  Bedouin  handicraft  skills  thereby  preserving  cultural  heritage  and 
enabling  them  to  contribute  to  family  income.  Support  is  also  provided  for 
diversified and sustainable tourism development. The €64 million programme started 
in 2007 and will end in 2011.  

Regional  cooperation  programmes  resulted  in  concrete  improvements  in  a  great  variety  of 
sectors in the ENPI countries. For instance in the occupied Palestinian territory, a short film 
funded under the regional information and communication programme contributed directly to 
preventing  violence  against  women.  The  film  also  tackled  the  sensitive  issue  of  incest  and 
other sexual abuses. Within 24 hours of the screening, 14 cases of sexual abuses had already 
been  reported  to  the  police  and  in  less  than  a  month,  the  films  became  an  educational 
documentary. 

Inter-regional dimension 

The inter-regional operations support both the southern and eastern regions with activities that 
can  be  managed  more  efficiently  and  flexibly  at  inter-regional  level.  It  includes  two 
institution-building instruments originally created for the EU enlargement process. These are 

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the  Technical  Assistance  and  Information  Exchange  Instrument  (TAIEX)47  and  the  Support 
for Improvement in Governance and Management (SIGMA)48. TAIEX aims to foster political 
and economic cooperation in a number of areas, primarily the approximation, application and 
enforcement of EU legislation. SIGMA is a joint initiative of the OECD and the EU, assisting 
partner  countries  to  install  governance  and  administrative  systems.  At  present  SIGMA  is 
active in ten neighbouring countries: Armenia, Azerbaijan, Egypt, Georgia, Jordan, Lebanon, 
Moldova,  Morocco,  Tunisia  and  Ukraine.  It  works  mainly  in  the  following  sectors:  legal 
framework, civil service and justice, public procurement, financial control and external audit. 

The  inter-regional  dimension  includes  the  Neighbourhood  Investment  Facility.  The  NIF 
combines  grants  with  loans  provided  by  European  finance  institutions  for  big  infrastructure 
projects  as  well  as  for  small  and  medium-sized  enterprises.  It  is  funding  regional  and 
multilateral projects such as the Mediterranean Solar Plan or the Horizon 2020 initiative for 
de-polluting  the  Mediterranean.  Additional  projects  under  the  Eastern  Partnership  and  the 
Black Sea Synergy Process are also supported.  

Better water and sanitation systems in Moldova 

This  water  and  sanitation  programme  is  working  to  improve  the  water  supply  and 
sewage collection and treatment systems in the Municipality of Chisinau for its 800 
000 inhabitants while reducing its environmental impacts.  

The  programme  requires  a  full  feasibility  study  to  assess  the  existing  water  and 
sanitation system, identify deficiencies, and short- medium- and long-term technical 
solutions.  The  study  also  deals  with  ways  of  cutting  the  use  of  chlorine  and  its 
negative  impacts  on  the  population.  It  will  produce  an  environmental  impact 
assessment plus an economic and institutional assessment of the public operator and 
its clients. The study will feed in the decision to go ahead with the rehabilitation and 
extension of the water supply and sewage collection.  

The total cost of the programme is €59 m illion. Of this, €3 million are grants from 
the Neighbourhood Investment Facility covering the cost of the feasibility study. The 
investment will be co-financed in the framework of the NIF by the European Bank 
for Reconstruction and Development (EBRD), KfW Development Bank in Germany, 
the European Investment Bank (EIB) and a contribution from the beneficiary. 

The inter-regional programmes Tempus IV and Erasmus Mundus II are part of a strategy for 
promoting  education  and  training  in  partner  countries.  Tempus  IV  aims  at  modernising  and 
reforming  higher  education  systems  and  institutions  in  the  partner  countries,  while  Erasmus 
Mundus promotes student and staff mobility amongst participating institutions. From the 2009 
call for proposals Tempus IV funded 64 projects for a total value of €39.4 million. A total of 
450 proposals were received. Of the 64 successful applications, 18 came from institutions in 
ENPI countries. The fourth call for proposals for Erasmus Mundus launched in 2010 for the 
academic year 2010-2011 resulted in a total of 1880 exchanges of students and teaching staff, 
with the majority coming from ENPI countries.  

Cross-border cooperation overview 

47 
48 

http://ec.europa.eu/enlargement/taiex/index_en.htm 
http://ec.europa.eu/enlargement/taiex/index_en.htm 

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Cross-border cooperation programmes are another ENPI tool to enhance cooperation between 
EU  Member  States  and  partner  countries  situated  at  the  external  border  of  the  European 
Union. Since 2009, 13 programmes are operational. Financing agreements were signed with 
all  partner  countries  with  the  exception  of  Morocco  for  the  Mediterranean  Sea  Basin 
programme and Russia and Azerbaijan for the Black Sea Basin programme. Programmes seek 
to  develop  the  cross-border  economic,  social  and  environmental  potential  of  participating 
countries  or  to  improve  the  standard  of  living  and  welfare  of  their  citizens.  Other  priorities 
aim at people-to-people cooperation in the social, educational, cultural and scientific sectors. 

The  main  challenge  in  2010  was  to  finalise  the  first  calls  for  proposals  launched  by  all  the 
programmes and to start project implementation. Together, the 13 programmes received 2 173 
applications for a total available budget of €239.2 million, illustrating the big interest among 
applicants  for  this  type  of  cooperation.  Partner  countries  are  lead  applicants  in  520  projects 
representing 26% of the total number of applications. In addition to standard projects, large 
scale  cross-border  investment  projects  of  strategic  importance  are  supported.  Eight  ENPI 
CBC  programmes  have  decided  to  implement  large-scale  projects.  To  date,  13  investment 
projects have been submitted for approval to the Commission for a total of €63 million.  

How cross-border cooperation reduces infant mortality and infant disabilities 

The  high  level  of  infant  mortality  in  the  first  year  of  life  and  of  infants  with 
disabilities  is  a  major  health  problem  for  Hungary  and  Ukraine.  The  ENPI  CBC 
Hungary-Slovakia-Romania-Ukraine  Programme  is  implementing  a  project  called 
the  'European  Cradle',  worth  €500 000  to   fight  infant  mortality  in  Hungary 
andUkraine.  The  project  aims 
techniques  and  staff 
qualification  in  children's  hospitals.  It  seeks  to  increase  the  number  of  infants  who 
recover after hospital treatment, to reduce postnatal infectious diseases and to lower 
the  percentage  of  infant  birth  traumas  through  institutional  and  people-to-people 
cooperation.  The regional  children's  hospitals  will  create  communication  channels 
between  Hungarian  and  Ukrainian  target  groups  on  modern  methods  of  medical 
treatment that should lead to the introduction of new Ukrainian-Hungarian initiatives 
on health care. 

improve  diagnostic 

to 

The EU provides technical support to the ENPI CBC programmes by financing two projects 
(Regional Capacity Building Initiative and INTERACT ENPI). In 2010, the RCBI continued 
organising  partner  search  forums  and  training  for  potential  applicants  and  started  providing 
assistance  to  beneficiaries.  The  RCBI  project  will  run  until  the  end  of  2012.  INTERACT 
ENPI  continued  to  offer  a  platform  where  all  ENPI  CBC  stakeholders  are  able  to  share 
experience and good practices. Technical meetings were organised on Infrastructure projects 
(Large Scale Projects), financial and audit issues as well as monitoring and evaluation.  

2.1.1.5.  Monitoring  

EU  assistance  projects  are  subject  to  external  and  independent  results-oriented  monitoring 
(ROM)  in  addition  to  the  regular  and  rigorous  project  monitoring  carried  out  by  EU 
delegations.  The  ROM  results  in  2010  confirm  that  most  cooperation  projects  in  the  ENPI 
region  are  effective.  Projects  monitored  more  than  once  show  a  marked  improvement  over 
time,  suggesting  that  re-monitoring  is  a  useful  tool  for  getting  better  results.  As  in  earlier 
years, projects with serious deficiencies in relation to one or more of the ROM criteria were 
the object of particular attention and follow-up scrutiny.  

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ROM: a quick explanation 

The  ROM  system  measures  projects  against  five  criteria.  These  are  relevance, 
efficiency, effectiveness, impact and sustainability. The criteria are those set by the 
OECD’s  Development  Assistance  Committee.  Projects  are  then  classed  in  four 
categories: 

i.Very good performance 

ii. Good performance 

iii. Performing with problems 

iv. Not performing: major difficulties 

The Commission has been using the ROM system since 2000. Full explanation and 
presentation of results are found in Section 4 of this report. 

Overall  372  projects  (304  bilateral  projects,  68  multi-country  projects)  with  a  total  value  of 
€ 1.13  billion  were  monitored.  The  positive  ROM  results  from  the  previous  years  for  the 
region  were  confirmed  by  a  satisfactory overall average score of 2.84 (out of 4), marking a 
slight improvement on the 2009 score (2.82).  

The majority of monitored operations (70%) were in the social infrastructure and services and 
economic  infrastructure  and  services  sectors.  Both  sectors  showed  a  good  overall 
performance. The productive sector (agriculture, industry, etc.) score, although lower, is also 
still  generally  satisfactory.  The  cross-cutting/multi-sector  areas  performed  least  well.  These 
include  the  majority  of  multi-country/regional  programmes,  which  on  average  tend  to  score 
lower than bilateral projects, due to difficulties faced in generating national ownership, policy 
support  and  financial  viability  for  this  type  of  complex  cooperation.  However,  the  overall 
scoring  of  ENPI  south  regional  programmes  is  affected  by  a  small  number  of  programmes 
with serious difficulties.  

High  average  scores  for  relevance  suggest  that  the  projects  are  well-embedded  in  clear 
strategic  frameworks.  This  further  indicates  that  consultation  of  partners  in  the  project 
preparation  process  has  improved.  In  addition,  the  use  of  calls  for  proposals  allows  for  a 
demand-oriented approach involving civil society organisations.  

Generally, most challenges relate to efficiency. Commonly there is scope for improvement in 
the management of projects by implementing organisations. Some projects are delayed due to 
adverse external hostile conditions (e.g. in the occupied Palestinian territory or the southern 
Caucasus)  and  thus  face  difficulties  in  achieving  the  planned  results.  In  addition,  efficiency 
scores  are  significantly  lower  for  large  multi-country  infrastructure  projects  which  are  by 
nature harder to implement, especially as some involve the entire ENPI region.  

Finally, findings reveal difficulties in sustaining the results of various projects, often because 
of  institutional  shortcomings  in  partner  countries  in  follow-up  activities  once  external 
assistance has ended.  

Table 1 ENPI – Very good and good ROM scores per evaluation criteria 2008-2010 (%) 

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100

79

80

78

80

60

40

20

0

14

3

4

3

14

3

2

16

4

2008

2009

2010

Very good

Good

Problems

Major difficulties

Table 2 ENPI – Monitoring results per ODA sector 

3.00

2.90

2.80

2.70

2.60

2.50

Social Infrastructure
and Services

Economic
Infrastructure and
Services

Productuction sectors

Multisector -
Crosscutting

Relevance

Efficiency

Effectiveness

Impact

Sustainability

2.1.1.6.  Outlook 

At the bilateral level, preparations for the 2011 annual action programmes are on schedule for 
all ENPI countries.  

the comprehensive 

In  the  Eastern  Partnership  region, work  will  begin  in  selected  partner  countries  in  2011  on 
reforms  under 
the  regional 
level, implementation of flagship initiatives will continue. In addition to the initiatives begun 
in 2010, new actions to support energy efficiency, energy security, disaster response and air 
quality governance will get off the ground. In Georgia, support to IDPs, previously provided 
through three distinct special measures, will continue as a sector policy support programme.  

institution  building  programme.  At 

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In  the  ENPI  south  region,  the  EU  signed  a  memorandum  of  understanding  with  all  partner 
countries,  except  the  occupied  Palestinian  territory  and  Israel,  for  national  indicative 
programmes  covering  the  period  2011  to  2013.  For  most  countries,  existing  cooperation 
priorities  were  confirmed  but  some  changes  were  introduced  to  respond  to  recent 
developments.  

In the Maghreb, the EU will explore the possible expansion of sector reform support via the 
national budget in Algeria, accompanied by increased support to public finance management 
reform. In the case of Libya, the EU adopted in 2010 its first country strategy for the period 
2011-2013,  including  the  areas  of  health,  trade  and  private  sector  development,  public 
administration  reform  and  migration.  The  main  focus  of  EU-Morocco  cooperation  in  2011 
will be on bridging the legal and institutional gap with the EU. Cooperation with Tunisia will 
focus  on  economic  integration  and  trade,  including  direct  support  to  enterprises  and  to  the 
research  and  innovation  sector.  Enhancing  the  employability  of  young  people  remains  a 
priority for the EU.  

The focus of cooperation with Egypt in 2011 will be on energy and trade reform plus other 
programmes to support social and local development in the areas of family empowerment, de-
mining,  and  upgrading  informal  sectors  of  the  economy.  EU  cooperation  with  Syria  will 
continue to focus on the social sectors. The EU will increase its support for the modernisation 
of the private sector in the context of moves towards a social market economy. New areas of 
cooperation will also be explored, such as more support for civil society organisations and the 
modernisation of the judicial system. 

In the case of the occupied Palestinian territory, the 2010 programme was a transitional one 
which  paved  the  way  for  more  focused  and  less  ad-hoc  support  in  the  future.  A  new 
Palestinian national plan for 2011-2013 will form a basis for identifying EU support actions in 
the coming years.  

On  the  regional  level,  support  for  the  energy  sector  will  intensify  in  the  eastern 
neighbourhood.  Sustainable  urban  development  and  in  particular  the  participation  of  cities 
from  the  European  neighbourhood  region  in  the  Covenant  of  Mayors  will  continue  to  be  a 
priority.  In  the  social  and  cultural  field,  the  first  youth  programme  for  the  eastern  countries 
will be launched in 2011. In the southern ENPI countries, regional programmes will focus on 
energy  and  climate  change,  building  on  the  positive  experience  gained  in  the  eastern 
neighbourhood.  

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Table 3 ENPI - Breakdown by sector of external aid financed on the general EU Budget managed by 
EuropeAid in 2010

Commitments in € million

151 (9%)

179 (10%)

192 (11%)

151 (9%)

Disbursements in € millio n

169 (12%)

18 (1%)

74 (5%)

203 (14%)

225 (16%)

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

1022 (59%)

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

721 (52%)

Budget support, food aid, food security

Others - including emergency
assistance, reconstruction relief

Bilateral and multilateral ODA (EuropeAid only).

Table 4 ENPI - External aid financed on the general EU Budget managed by 
EuropeAid

€ millions

2007

2008

2009

2010

Commitments

         1 666              1 773              1 637    

        1 807    

Disbursements

         1 412              1 530              1 474    

        1 513    

Bilateral and multilateral flows (EuropeAid only).

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Table 5 ENPI - General and sector budget support per country

Commitments in € million

Sector

Decription

Total

Country

Algeria

GBS / 
SBS

SBS

Water supply and sanitation - 
large systems

Armenia

GBS General budget support

Egypt

Georgia

SBS

SBS

Water resources policy and 
administrative management
Decentralisation and support to 
subnational government

Georgia

SBS Public finance management

Jordan

SBS Public finance management

Moldova

Morocco

SBS

SBS

Small and medium-sized 
enterprises development
Education policy and 
administrative management

Morocco

SBS Road transport

Morocco

SBS

Basic life skills for youth and 
adults 

WATER II - Support programme to water and 
sanitation sectors 
 Programme to improve public finance 
management, public sector transparency and 
regulatory convergence in trade related matters

       30.00    

       21.00    

Water sector reform programme  (WSRP-II) 

     120.00    

Support to regional development reform in 
Georgia
Support to Public Finance Management Reforms - 
Phase II 
Support to the Public Financial Managment 
Reform Programme 

       19.00    

       11.00    

       45.00    

Support to economic stimulation in rural areas 

       45.00    

Support programme to the implementation of the 
education strategy 
Support programme : improved access for 
isolated populations
Support to the national strategy for literacy and 
non formal education 

       20.00    

       55.00    

       10.00    

Morocco

SBS Agricultural development

Support to the agriculture sectoral apolicy

       70.00    

Tunisia

SBS

Water resources policy and 
administrative management

Support programme to public policies in the area 
of water resources management for rural and 
agriculture development 

Tunisia

GBS General budget support

Support programme for integration 

Ukraine

SBS Legal and judicial development

Support to the border management sector policy 
in Ukraine 

Grand Total

GBS : general budget support
SBS : sector budget support

2.1.2.  Middle East 

2.1.2.1.  Introduction 

       57.00    

       20.00    

       66.00    

     589.00    

In  the  oil-rich  Middle  East  with  its  majority  of  high-income  countries,  the  Development 
Cooperation  Instrument  (DCI)  covers  only  three  countries  –  Iraq,  Iran  and  Yemen.  The 
diversity  of  these  countries  and  their  situation  are  reflected  in  the  specific  approach  the  EU 
has adopted for each one. 

The  national  elections  which  took  place  in  March  were  the  main  political  event  in  Iraq  in 
2010. The EU deployed an election assessment team to survey and report on the elections, so 
as to enhance the transparency of the electoral process and demonstrate the EU’s commitment 
to  supporting  democracy  in  Iraq.  Since  2005,  the  EU  has  spent  more  than  €80  million  on 
support  for  the  democratic  process.  Although  the  March  2010  election  event  itself  was  a 
success,  the  close  result  of  the  vote,  leaving  the  two  major  blocks  with  nearly  the  same 
number  of  votes,  made  the  formation  of  a  new  government  a  difficult  task.  Despite  the 
absence of a new government, security in Iraq improved further during 2010. This enabled the 
EU to continue moving from emergency reconstruction activities towards long-term capacity-

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building.  Medium-term  activities  will  therefore  concentrate  on  the  sustainability  of  Iraq’s 
institutions,  on  strengthening  the  capacity  of  Iraq's  governance  structure  and  rule  of  law 
system and on providing more and better-quality basic services (health, education, water and 
sanitation).  

In  parallel,  the  platform  for  future  EU-Iraq  relations  was  considerably  broadened  in  2010, 
with  the  signing  of  a  memorandum  of  understanding  on  energy  cooperation  in  January,  the 
inauguration  of  the  draft  Partnership  and  Cooperation  Agreement  to  be  signed  in  2011,  and 
the  adoption  in  November  of  the  first  multiannual  Strategy  Paper  for  assistance  to  Iraq 
(€58.7million for 2011-2013). Together, these three mutually-agreed documents will form the 
basis  for  close  cooperation  between  Iraq  and  the  EU  in  a  number  of  areas,  from  trade  and 
economic  relations  to  academic  exchanges  and  development  support.  This  should  pave  the 
way  for  the  implementation  of  an  increasing  number  of  initiatives,  initially  between 
government institutions, and later between businesses and civil society on both sides. 

Given  Yemen’s  continuing  instability,  the  EU  adopted  its  ‘comprehensive  approach’ 
(October 2009), pulling together actions by the EU, its Member States, and key international 
partners in a shared agenda for development, and economic and political reform. It committed 
€18  million  for  two  programmes  on  fisheries  and  on  the  rule  of  law  and  human  rights  and 
devoted  another  €15  million  to  a  peace-buildin g  partnership  programme.  Support  was  also 
provided  through  the  EU’s  food  facility.  Active  engagement  in  the  multilateral  ‘Friends  of 
Yemen’  process  during  2010  reflected  the  EU’s  desire  to  work  with  Yemen  and  all  its 
partners to halt economic decline and social and political unrest. The new National Indicative 
Programme  for  2011-2013  foresees  a  35%  increase  in  funding  (DCI),  with  a  total  of  €71 
million for the period.  

EU  cooperation  activities  in  Iran  remained  limited  to  non-sensitive  areas  (anti-narcotics, 
Afghan  refugees)  and  were  channelled  through  non-state  actors.  As  part  of  EU  public 
diplomacy efforts, Persian-language (Farsi) TV broadcasts started in October 2010. A further 
round of UN – previously EU – restrictive measures in 2010 was adopted as part of the dual 
track strategy to persuade Iran to enter a dialogue on its nuclear energy programme. 

2.1.2.2.  Aid effectiveness and donor coordination 

The European Commission places great emphasis on coordination among aid donors as part 
of an Iraqi-owned strategy, and is therefore a major participant in all coordination efforts. In 
the  past,  donor  coordination  in  Iraq  was  handled  by  the  International  Reconstruction  Fund 
Facility (IRFF) for Iraq, a multi-donor trust fund which is now being phased out. Donors and 
international organisations are presently moving towards bilaterally funded, but coordinated, 
programming  and  management.  The  Iraq  partners'  forum  facilitates  the  exchange  of 
information  on  individual  initiatives  and  efforts  to  agree  on  common  approaches.  However, 
coordination work in Iraq is challenging, in view of the enormous needs of the country and 
the  continuing  difficult  security  situation.  On  the  EU  side,  nevertheless,  the  regular 
development  counsellors  meetings,  chaired  by  the  EU  delegation  in  Baghdad,  ensures 
coordination and information exchange at local level among all EU Member States present on 
the ground. The joint strategy paper 2011-2013 for cooperation with Iraq, issued jointly by the 
EU, Italy and Sweden (plus Germany at a later stage) at the end of 2010, was an important 
step to improve the collaboration process. 

Yemen  is  a  signatory  to  the  Paris  Declaration  and  is  committed  to  applying  the  aid 
effectiveness principles in its economic development. It has created an aid harmonisation and 

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alignment unit inside the ministry of planning and international cooperation and has taken an 
active part in all recent related fora. However, as in other areas, ownership of the coordination 
work  is  hampered  by  the  lack  of  capacity  in  Yemeni  institutions.  Donors  tend  therefore  to 
complement  formal  coordination  instances,  which  are  still  weak,  with  informal  ad-hoc 
meetings, in view of the small number of international donors present in the country and the 
close relationship between them. Due to the lack of capacity, implementation units have been 
set  up  separate  from  state  institutions,  which  gives  rise  to  ownership  and  sustainability 
problems. The EU actively supports government efforts to improve their ownership capacity 
of  cooperation  programmes.  For  each  programme,  the  EU  carefully  examines  with  the 
government the implementation setup required and the means to maximise ownership of the 
programme  by  the  beneficiary  organisations  and  to  ensure  sustainability  of  results  once  the 
programme is closed.  

2.1.2.3.  Working towards the MDGs 

Iran,  Iraq  and  Yemen  are  making  some  progress  towards  achieving  the  MDGs  by  2015, 
although this is uneven across the three countries.  

In Iran progress has been good on most indicators, with the main challenges remaining in the 
areas  of  gender  equality  and  HIV/AIDS.  A  third  area  requiring  stronger  efforts  remains 
environmental sustainability.  

In Iraq the main challenge is to improve the quality of life of the population, in the midst of 
the continuing political instability and insecurity. Recognising this, almost half Commission 
assistance to date has been allocated to basic services such as education, health, infrastructure 
and water and sanitation. But in present circumstances it is hard to obtain reliable and regular 
MDG  data.  However,  in  a  medium-income  country  like  Iraq  and  in  view  of  its  potential, 
progress  in  these  goals  will  be  closely  linked  to  improvements  in  the  political  and  security 
situation in coming years. 

In contrast, Yemen represents the biggest single development challenge in the Middle East. It 
is  a  country  of  deep-rooted  tradition  endowed  with  limited  resources,  scarce  water,  limited 
arable land and fast declining oil reserves. It is the only poor country in a rich Gulf region, 
ranked 133 out of 169 countries in the 2010 UNDP Human Development Index. Nearly 45% 
of the population live on less than $2 per day. Progress has been made in some areas, such as 
primary  education,  but  child  and  maternal  mortality  are  still  very  high  although  improving, 
while gender inequality is one of the highest in the world. EU support to Yemen concentrates 
on  direct  action  on  poverty  reduction  and  progress  towards  the  MDGs  in  three  main  areas: 
food  security,  health  and  good  governance.  Important  improvements  have  been  achieved  in 
recent years, but most baselines are, and will remain, relatively low. 

2.1.2.4.  Implementation and results 

EU reconstruction aid to Iraq since 2003 totals over €900 million. The bulk of the assistance 
has concentrated on two main areas: support for good governance and the political transition 
process; and the delivery of basic services to the population. For security reasons, EU support 
was  principally  channelled  through  the  International  Reconstruction  Fund  Facility  for  Iraq 
from  2004-2007.  From  2008  onwards,  the  EU  and  other  donors  decided  to  phase  out  the 
IRFFI, in recognition of the gradual normalisation of the situation and the need to focus on 
bilateral programmes.  

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In  2010,  the  EU  focused  on  the  continuing  improvement  of  health  services  and  the  living 
conditions of internally displaced people and Iraqi refugees in neighbouring countries. It also 
provided targeted support to high-level education and financed a call for proposals for NGO-
implemented  projects.  The  implementation  of  ongoing  projects  continued  on  target 
throughout the year. The signature of a financing agreement with the government in August 
covering the 2009 special measure for Iraq has allowed the EU to start implementing the two 
major actions, both in the area of education.  

EU support was instrumental in organising the crucial elections of 2009 and 2010. In the area 
of  human  rights,  the  EU  is  funding  a  programme  which  has  allowed  the  physical  and 
psychological rehabilitation of hundreds of torture victims, the organisation of regular visits 
to monitor  living conditions in prisons throughout  the country, and the  creation of legal aid 
centres for the population.  

Given the lack of dialogue with the government of Iran, EU assistance in 2010 continued to 
be  implemented  exclusively  through  thematic  projects  by  Iranian  and  European  non-state 
actors. Two new contracts were signed with NGOs in 2010 and four others were to be signed 
at the beginning of 2011.  

Cooperation  with  Yemen  is  based  on  two  main  priorities.  One  is  to  assist  the  Yemeni 
government to promote good governance, with sub-priorities in the justice and human rights 
sectors.  The  second  seeks  to  strengthen  the  government’s  capacities  to  fight  poverty,  in  the 
areas  of  food  security,  health,  fisheries  and  local  development.  In  2010,  the  Commission 
approved funding for projects in fisheries and human rights and the rule of law. The fisheries 
programme  will  try  to  carry  out  a  much-needed  assessment  of  fish  stocks  and  expand  the 
capacities of local communities to better manage the fishing activities. The human rights and 
the  rule  of  law  programme  will  focus  on  targeted  support  for  the  civil  registry,  very 
ineffective for the moment in Yemen, and a call for proposals from civil society for projects 
to strengthen gender equality and respect for human rights.  

The  results  obtained  by  the  different  programmes  are  uneven.  Cooperation  with  Yemen  is 
totally  implemented  through  a  project  approach  with  little  local  ownership.  One  particular 
success has been the pilot project on the introduction of conditional cash transfers to families 
depending on school attendance of their children, especially girls. The new law regulating the 
social  welfare  fund  (passed  with  EU  support)  is  allowing  social  protection  to  reach  the 
poorest.  A  new  pilot  project  on  the  introduction  of  conditional  cash  transfers  to  families 
depending  on  school  attendance  of  their  children,  especially  girls,  is  also  providing  its  first 
and encouraging results. 

Irak: Restoration of the Al-Askari Shrine 

The Al-Askari Shrine in Samarra, one of the most important pilgrimage centres for 
Iraq’s Shia community, was bombed in 2006 and 2007, destroying the minarets and 
dome of the mosque and unleashing a wave of violence across the country. The EU 
allocated  €4  million  to  UNESCO  under 
the  UNDG  Iraq  Trust  Fund  for  its 
restoration.  This  included  cleaning  the  site,  protecting  ornamental  elements,  and 
classifying  and  storing  architectural  material.  Training  was  also  offered  for  Iraqi 
architects and engineers to enhance national capacity to perform such tasks on other 
damaged cultural and religious sites. This successful project has led to the Al-Askari 
Shrine  once again  becoming an  active  site of worship  in Iraq. It  is also a  symbolic 

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example  of  peace  and  reconciliation  in  Iraq,  since  it  is  an  important  Shia  place  of 
worship in a city with a large Sunni majority. 

2.1.2.5.  Outlook 

In  view  of  its  growing  involvement  in  the  development  of  Yemen,  the  European  Union 
decided  in  2008  to  upgrade  its  presence  in  Yemen  to  full  Delegation  status,  doubling  its 
operational  personnel  in  the  process.  This  upgrade  was  to  be  completed  at  the  beginning  of 
2011, when the management of cooperation will be devolved to the Delegation. It comes at an 
opportune  moment,  in  view  of  the  increasingly  complex  regional  security  context  and  the 
economic difficulties the country faces. This situation has led the EU to increase its support to 
Yemen, through a 35% increase in the average amount of the Annual Action Programme for 
the coming three years, compared to the 2007-2010 period. This increase will allow additional 
support  for  good  governance  and  for  the  health,  social  welfare  and  economic  development 
sectors.  

With the approval at the end of 2010 of the first EU Joint Strategy Paper for Iraq (covering 
the period 2011-2013), the EU is reinforcing its relations with Iraq, moving towards regular 
and strategic development cooperation. The country has a rich and diverse resource base, and 
the effective and efficient utilisation of these resources can lay the foundation for sustainable 
growth.  The  key  role  for  the  EU  as  part  of  the  international  community  is  to  continue 
supporting  Iraq  in  mobilising  its  own  resources  to  improve  the  welfare  of  its  people  and 
rebuild  its  infrastructure.  Future  EU  assistance  will,  therefore,  concentrate  on  the 
sustainability of Iraq’s institutions, the improvement of the management capacity of the civil 
service, and boosting the provision and quality of basic services.  

2.2. 

The ACP region and Overseas Countries and Territories (OCTs) 

The EU has been supporting ACP countries and OCTs for more than 50 years – the longest-
lasting EU partnership with outside countries. The ACP group consists of 79 countries, all of 
whom except Cuba have signed the ACP-EU Partnership Agreement, also called the Cotonou 
Agreement: 48 African states, covering all of Sub-Saharan Africa, 15 states in the Caribbean 
and 15 in the Pacific.  

The Cotonou agreement was signed in June 2000 and took effect in April 2003. It runs until 
2020,  and  is  revised  every  five  years.  The  second  revision  was  completed  in  2010.  The 
official  signing  ceremony  took  place  in  Ouagadougou,  Burkina  Faso,  on  23  June  and  the 
revised agreement came into force on 1 November.  

The  second  revision  adapted  the  partnership  to  changes  which  have  taken  place  in  recent 
years: the growing importance of regional integration, the interdependence between security 
and  development,  challenges  such  as  food  security,  HIV/AIDS,  and  the  sustainability  of 
fisheries.  In  addition,  it  addresses  climate  change  as  a  major  item  for  the  EU-ACP 
partnership,  alongside  the  new  trade  relationship  and  the  role  of  economic  partnership 
agreements  to  boost  economic  development  and  integration  into  the  world  economy.  The 
revised agreement increases recognition of the role of national parliaments, local authorities, 
civil  society  and  the  private  sector.  Finally,  it  covers  aid  effectiveness and  the  role  of  other 
EU policies in development, including the EU’s commitment to enhance the coherence of its 
policies.  

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The EU programmes and projects in the ACP region and in OCTs are financed from various 
sources. The bulk of the financing comes from the European Development Fund (EDF). Other 
funding  comes  from  the  EU’s  budget  to  support  South  Africa,  sugar  and  banana  producing 
countries, Greenland, and to finance global thematic programmes (see chapter 3).  

The 10th EDF became operational on 1 July 2008 with funds progressively committed since 
then.  Global  EDF  commitments  in  2010  reached  €2.66  billion.  By  the  end  of  2010,  around 
52% of the 10th EDF had been committed, putting the Commission well on track to meet the 
target to commit the entire resources of the 10th EDF by the end of 2013. Payments under the 
EDF reached a record high of €3.32 billion  in 2010, compared to €3.13 billion in 2009.  

During 2010, the Commission approved 50 annual action programmes for ACP countries. Of 
these, 39 were financed from the EDF (including six regional programmes). Another 11 were 
support  measures  for  Sugar  Protocol  countries,  financed  from  the  EU  budget  for  a  total  of 
€152  million.  Here  too  payments  reached  a 
record  level  of  €102 million.  In  2010,  €143.7 
million from the EU budget were committed to South Africa, and €27.9 million to Greenland.  

2.2.1. 

Sub- Saharan Africa 

2.2.1.1.  Introduction 

The third Africa-EU Summit was held in Tripoli (Libya) on 29-30 November. Leaders from 
the  two  continents  assessed  the  progress  achieved  so  far  and  agreed  on  the  way  forward, 
adopting  the  Tripoli  declaration  and  the  second  action  plan  for  2011-2013.  The  summit 
theme, "Growth, investments and job creation" focused on ways to create more and inclusive 
growth. 

The  Summit  declaration  stated  that  the  Joint  Africa-EU  Strategy  (JAES)  remains  the 
appropriate  framework  for  continent-to-continent  relations.  The  JAES  action  plan  builds  on 
the  achievements  obtained  to  date  and  focuses  on  activities  with  a  regional,  continental  or 
global  dimension,  which  provide  added  value  and  new  initiatives  to  deliver  more  concrete 
results.  

The  JAES  remains  a  strong  people-centred  partnership.  This  approach  was  reflected  in  the 
run-up  to  the  summit:  15  side-events  were  organised  to  discuss  various  aspects  of  the 
partnership.  At  events  such  as  the  parliamentary  pre-summit,  the  business  forum,  the  youth 
summit or the first intercontinental civil society forum, stakeholders debated ways to deepen 
the  cooperation  between  the  two  continents  and  to  improve  the  strategy.  The  result  of  their 
discussions was presented to African and European leaders.  

Prior  to  the  summit,  work  continued  within  the  eight  thematic  partnerships  of  the  JAES 
(peace and security; democratic governance and human rights; trade, regional integration and 
infrastructure;  MDGs;  energy;  climate  change;  migration,  mobility  and  employment;  and 
science, information society and space). By 2010, the work done under the JAES reached full 
speed and the implementation of the first action plan advanced successfully.  

This work resulted in an increased political and policy dialogue between the two continents at 
various levels. For example, the EU and the African Union Peace and Security Council held 
their  third  joint  consultative  meeting,  while  the  partnership  on  democratic  governance  and 
human rights launched an EU-Africa platform for dialogue. A high-level meeting on energy 
which was held in September in Vienna led to the adoption of a declaration and a road map. 

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African  and  European  leaders  also  decided  to  launch  the  Africa-EU  Renewable  Energy 
Cooperation Programme to provide the basis for renewable energy cooperation. 

In parallel, concrete projects were also launched or pursued in all eight thematic partnerships. 
The  long  list  of  projects  includes  action  against  small  arms  and  light  weapons,  a  travelling 
exhibition  on  African  art,  the  ACP  observatory  on  migration,  the  Nyerere  programme,  the 
Caprivi electricity interconnector, the east Africa submarine cable system, the popularisation 
of science and technology, and the promotion of public participation. 

2.2.1.2.  Aid effectiveness and donor coordination 

In 2010, the Commission continued efforts to strengthen aid effectiveness in Africa. The EU 
Council conclusions on the operational framework for aid effectiveness adopted in November 
2009 created momentum to strengthen the work conducted at field level in many countries.  

The  level  of  donor  coordination  varies  from  country  to  country.  The  large  number  of 
development partners present in some countries can make coordination difficult. In countries 
where  only  a  few  partners  are  present  like  the  Central  African  Republic,  the  Commission 
plays  a  leading  role  in  several  sectors  simultaneously  in  order  to  advance  coordinated 
reconstruction and peace-building activities. In the context of the Fast Track Initiative on the 
division  of  labour  in  the  ACP  group,  the  Commission  is  lead  facilitator  in  Ethiopia,  Mali, 
Mozambique, and Tanzania.  

In Tanzania, the EU Delegation remains a driving force for better division of labour among 
donors, who between them contribute around 30% to the national budget. Division of labour 
has resulted in a streamlined donor matrix with a clear attribution of roles for donors in each 
sector (lead donor, active donor, contributing donor). The EU delegation also coordinated the 
EU work on a roadmap to implement the operational framework on aid effectiveness. During 
2010, the EU (Commission and Member States) agreed on how to of support the government 
in its review of  the  Tanzanian poverty reduction  strategy paper (Mkukuta), and coordinated 
the  EU  position  on  the  draft  text.  Moreover,  the  Commission  and  three  member  states 
(Germany,  Denmark  and  Ireland)  agreed  to  align  more  closely  their  general  budget  support 
(GBS) activities.  

In 2010, progress was made in Ghana towards stronger local ownership of the development 
process,  thanks  to  the  Ghana  government’s  aid  policy  and  strategy  which  sets  out  how  it 
wants  to  organise  its  relationship  with  the  donor  community.  The  Ghana  Joint  Assistance 
Strategy,  signed  by  16  development  partners  in  2007,  expired  in  December  2010.  A  2009 
independent  review  of  the  strategy  concluded  that  it  had  been  useful  in  pushing  the  aid 
effectiveness  agenda  forward.  Within  the  EU  framework,  discussions  are  under  way  on  the 
need for a new joint partner's strategy for Ghana that should include the government and all 
partners on the content and the modalities of assistance. The joint programming process will 
also need to take account of Ghana’s new status as a middle-income country and the roles of 
other  donors,  traditional  and  non-traditional.  The  EU  is  considering  implementing  joint 
programming, with the aim to be fully operational by 2014. 

Ghana - economic growth and poverty reduction 

Ghana’s recent growth performance and poverty reduction is impressive. As a result, 
Ghana is considered to have achieved the MDG1 target of halving extreme poverty 
by 2015 – the first Sub-Saharan country to do so. The overall poverty rate declined 

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substantially  from  51.7%  in  1991-1992  to  28.5%  in  2005-2006,  putting  the  2015 
target of 26% within reach. Similarly, the proportion of the population living below 
the extreme poverty line declined from 36.5% to 18.2% over the same period against 
the 2015 target of 19%.  

The  decline  in  poverty  is  clearly  linked  to  significant  improvements  in  economic 
growth, which have been accompanied by increases in per capita income over time. 
Yet, the impact of economic growth has been uneven, widening big gaps between the 
rich  and  poor.  Poverty  remains  predominantly  concentrated  in  the  three  deprived 
regions (Northern, Upper West, and Upper East). 

In  Ghana,  70%  of  annual  payments  from  the  EU  come  in  the  form  of  EU  budget 
support.  General  budget  support  has  increased  over  the  years  and  progressed  from 
sector targets to the multi-donor budget support (MDBS) initiative which underpins 
the second Ghana poverty reduction strategy.  

The  Commission  has  now  set  up  an  MDG-contract  of  €175  million  available  for 
countries that show reliable policies aimed at reaching MDG targets.  

Another positive example of greater aid effectiveness is Rwanda. The government is actively 
delivering  on  the  Accra  Agenda  for  Action  commitments  through  strong  leadership  and 
management  of  its  aid  programme.  The  Commission  supports  this  approach  and  in  July  it 
signed up to the first government-led donor division of labour agreement. According to this 
agreement,  any  given  donor  may  only  be  active  in  three  different  sectors.  For  the 
Commission, the main sectors will remain transport, agriculture, and justice.  

The  Commission  aligns  its  activities  with  country  policies  as  much  as  possible  in  order  to 
reduce transaction costs, strengthen government ownership and thus add to the sustainability 
of aid programmes. For example, €62.8 million  (more than 75% of EU aid to Rwanda) was 
channelled  through  budget  support  in  2010.  Several  projects  are  managed  directly  by  the 
Rwandan government via the "substantial decentralised mode", where country procedures are 
used  instead  of  those  of  the  Commission.  These  projects  are  implemented  in  the  form  of 
government-managed  multi-donor  basket  funds.  They  include  support  for  water  and 
sanitation,  statistics,  and  public  finance  management.  There  is  a  strong  sense  of  mutual 
accountability in Rwanda. While development partners assess the government’s performance 
in  implementing  its  development  strategy,  the  government  assesses  donor  performance  by 
means of a "donor performance assessment framework". The Commission ranks high in this 
assessment:  it  met  17  of  the  23  targets  and  was  thus  amongst  the  top  three  partners  in 
Rwanda.  

Its work in Ghana, Tanzania and Rwanda, shows that the EU, in the various regions of Africa, 
is  committed  to  implement  on  the  ground  the  principles  of  aid  effectiveness  and  the  Accra 
Agenda  for  Action.  The  efforts  of  the  Commission,  EU  Member  States  and  beneficiary 
countries are of paramount importance to increase the impact of the aid, and will continue.  

Throughout  the  year,  the  Commission  continued  to  promote  its  results-based  approach  to 
budget support with disbursements being conditional on progress towards poverty reduction 
targets.  A  move  towards  a  more  systematic  approach  to  assessing  the  impact  of  budget 
support  through  regular  evaluations  was  also  launched  with  pilot  joint  evaluations  in  Mali, 
Tanzania and Zambia.  

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In  Malawi,  the  joint  donor  annual  review  was  informed  of  the  strong  progress  in  child 
mortality  and  maternal  mortality,  particularly  in  rural  areas.  This  reflects  the  scaling  up  of 
service  delivery  and  improved  procurement  and  storage  of  vital  medical  supplies  that  has 
been facilitated through budget support funds and underpinned by accompanying reforms to 
public  financial  management  and  service  delivery  systems.  Child  immunisation  coverage 
against  measles  reached  a  high  of  88%  in  2009  while  the  skilled  attendance  for  mothers  in 
child birth also increased significantly from 45% in 2008 to 52% in 2009.  

2.2.1.3.  Working towards the MDGs 

Although  many  countries  around  the  world  are  advancing  towards  the  MDGs,  a  number, 
mostly in Sub-Saharan Africa, still lag behind in some areas. They need to move fast if they 
are to attain the MDGs by 2015. Whereas poverty has decreased since 1999 in Sub-Saharan 
Africa, it remains significant and still affects more than 50% of the population49. The recent 
food, economic and financial crises have made things worse. According to the World Bank, 
an additional 64 million people in the world, principally in Sub-Saharan Africa, were left in 
extreme  poverty  during  2010  because  of  the  crises.  The  donor  community,  including  the 
Commission  and  its  Vulnerability  Flex  instrument  (see  section  2.2.1.4.),  was  mobilised 
against the effect of the crises on developing countries, and its impact on progress towards the 
MDGs.  

Overall, hunger is decreasing in Sub-Saharan Africa but not fast enough to achieve MDG1, 
largely because of high population growth50 in the region. The EU has been active in fighting 
hunger in Africa via its food facility and through specific food security projects. For instance, 
in 2010, the European Commission approved €7  million to help over a million small farmer 
families in Zimbabwe by improving crop and livestock production and market access.  

Major progress has been made in terms of primary education in the ACP countries. However, 
although the enrolment rate in Sub-Saharan Africa has shown a positive trend since 1999, it 
remains  the  lowest  worldwide.  Furthermore,  30%  of  primary  students  drop  out  before  their 
final grade. In order to reach MDG2, it is estimated that the number of teachers would need to 
double. Attaining MDG targets for gender equality in education remains a challenge in Sub-
Saharan Africa. This is why the EU has supported, through education programmes over the 
past five years, the enrolment in secondary education of around 85 000 female students in ten 
Sub-Saharan countries.  

In  the  health  sector,  infant  mortality  rates  have  fallen  substantially  in  Sub-Saharan  Africa. 
Deaths among under-fives in Eritrea and Malawi for instance have fallen each year by at least 
4.5%.  Ethiopia,  Mozambique  and  Niger  have  also  shown  impressive  progress  with  an 
absolute reduction of more than 100 deaths per 1000 live births since 1990. However, some 
Sub-Saharan  countries  continue  to  have  extremely  high  levels  of  child  mortality.  Regarding 
maternal  care,  fewer  than  50%  of  women  received  skilled  assistance  during  delivery.  Large 
inequalities  between  women  in  rural  and  urban  zones  for  delivery  assistance  and  antenatal 
care persist even if they have narrowed over the last decade. The highest adolescent birth rates 
are  recorded  in  Sub-Saharan  Africa  where  little  progress  has  been  achieved  since  1990. 
Unmet  needs  for  family  planning  remain  high.  One  quarter  of  15  to  49  year-old  women, 
married  or  in  union,  wishing  to  use  contraceptives  do  not  have  access  to  them.  Many  EU 

49 
50 

Source for general data on MDGs provided in this section : 2010 UN MDG report  
Source: 2010 UNFPA State of World Population report 

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interventions  directly  target  health-related  MDGs.  For  instance,  in  2010,  the  Commission 
committed  €55  million  to  the  project  "EU  suppor t  to  immunisation  governance  in  Nigeria", 
which  aims  at  reducing  child  morbidity  and  mortality  through  better  information  and 
knowledge about key institutions for routine immunisation.  

An integrated approach to Guinea worm eradication in northern Ghana  

In  Ghana,  guinea  worm  disease,  a  parasitic  illness  contracted  through  drinking 
contaminated  water,  has  affected  populations  for  as  long  as  anyone  can  remember. 
Ghana is one of four remaining countries (all in sub-Sahara Africa) where the disease 
still persists. The European Commission, through its programme of water supply and 
sanitation, has implemented 236 water schemes serving 147 916 people and reduced 
the  annual  number  of  guinea  worm  cases  from  3 358  to  eight  between  2007  and 
2010.  Thanks  to  this  programme,  children  fall  sick  less  often  and  can  actively 
participate in classroom activities. Women and children are freed from the burden of 
fetching water; families live in more hygienic environments and enjoy access and use 
of improved sanitation facilities. 

Sub-Saharan Africa is the worst affected region in the world for HIV infections, representing, 
in 2008, 72% of all new HIV cases. Eighty percent of the children who have lost one or two 
parents  due  to  AIDS  are  from  this  region.  Although  knowledge  about  HIV  prevention  is 
fundamental, it  is  still significantly lower in most Sub-Saharan  African countries. However, 
countries like Rwanda and Namibia have registered a big rise in knowledge levels in recent 
years.  The  Commission  has  been  involved  in  raising  HIV  awareness  in  Malawi  and 
Mozambique  via  the  use  of  trade  corridors  as  networks  to  provide  testing,  counselling  and 
care services.  

In  terms  of  environmental  sustainability  (MDG7),  Africa  continues  to  show  the  largest  net 
losses  of  forest  area  (together  with  South  America),  with  a  decrease  of  3.4  million  hectares 
per  year  over  the  last  decade.  The  EU  actively  combats  deforestation,  notably  through  the 
Forest Law Enforcement, Governance and Trade (FLEGT) action plan. The plan provides for 
the  conclusion  of  FLEGT  voluntary  partnership  agreements  (VPAs)  with  timber-producing 
countries that wish to eliminate illegal timber from their trade with the EU. The first VPA was 
with  Ghana. Agreements  with  Republic  of  Congo,  Cameroon  and  the  Central  African 
Republic  are  being  ratified,  and  negotiations  were  ongoing  during  2010  with  several  other 
countries:  Liberia,  Gabon  and  the  Democratic  Republic  of  Congo.  The  EU  also  supports 
numerous  programmes  to  protect  biodiversity  and  ecosystems.  For  instance,  in  November 
2010,  the  Commission  granted  €17.4  million  to  the  "P arcs  de  l'entente"  project  to  protect 
ecosystems covering Benin, Burkina Faso and Niger.  

The  effects  of  climate  change,  notably  droughts,  can  seriously  hinder  the  development  of 
African countries. In 2007 the EU launched the Global Climate Change Alliance (GCCA) to 
prepare  and  adapt  to  the  effects  of  climate  change.  Under  this  initiative,  in  2010,  the  EU 
committed €13.7 million to Ethiopia and €10.2 milli
on to Mozambique bringing to eight the 
number  of  African  countries  benefiting  from  the  GCCA  together  with  Mali,  Mauritius, 
Rwanda, Senegal, Seychelles and Tanzania.  

Regional  programme  for  the  sustainable  management  of  coastal  zones  of  the 
countries of the Indian Ocean 

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Indian Ocean populations are highly dependent on marine and coastal resources for 
their  livelihoods.  However,  a  growing  population,  overfishing,  mangrove  removal 
and  pollution  have  put  pressure  on  these  resources.  Through  its  programme,  the 
European  Commission  had  two  objectives:  reverse  the  negative  impact  of  these 
activities  on  the  resources  and  economies  of  the  countries  concerned,  and  promote 
the  sustainable  use  of  marine  and  coastal  resources  with  the  direct  involvement  of 
local  communities.  The  programme  has  led  to  operational  Integrated  Coastal  Zone 
Management (ICZM) institutions and organisations in Comoros, Kenya, Madagascar, 
Mauritius,  Seychelles  and  Tanzania.  It  has  improved  the  capacity  of  partner 
governments, NGOs and local communities to manage coastal resources effectively 
and  has  enhanced  sustainable  livelihood  opportunities  for  more  than  100  coastal 
villages.  The  programme  has  also  brought  better  local  infrastructure,  waste 
management  and  sanitation  facilities  to  more  than  20  coastal  villages.  It  has 
increased  environmental  awareness  among  children,  young  people,  fishermen  and 
local  communities  thanks  to  18  communication  projects  and  a  regional  school 
contest. 

2.2.1.4.  Implementation and results 

In  2010,  the  EDF  committed  €1.75  billion  of  aid  to  Sub-Saharan  Africa.  Disbursements 
during  the  year  amounted  to  €2.48  billion.  In  addition,  major  programmes  benefiting  Sub-
Saharan  Africa  were  adopted  in  the  framework  of  the  intra-ACP  annual  action  programme 
(see 2.2.4 below "All ACP programmes").  

During 2010 the Commission continued to deliver budget support programmes to Africa for 
poverty reduction with a continued strong focus on the MDGs. In close collaboration with the 
International Monetary Fund, it also continued the efforts begun in 2009 to combat the short-
term  fiscal  impact  of  the  economic  crisis  on  the  most  vulnerable  countries  through  the 
Vulnerability Flex instrument. 

In  2010,  the  level  of  new  commitments  under  budget  support  was  €495 million 51. 
Disbursements continued at a steady pace of €882.1 million from th e EDF and €140.6 million 
from  the  EU  budget,  bringing  the  total  to  €1.02  bi llion.  The  V-FLEX  instrument  provided 
much-needed short-term support to allow countries to maintain poverty focused programmes 
in  the  face  of  tighter  fiscal  constraints.  During  2010  additional  V-FLEX  resources  were 
mobilised  for  11  African  countries  (Benin,  Burkina  Faso,  Burundi,  Cape  Verde,  Central 
African  Republic,  Lesotho,  Liberia,  Malawi,  DRC,  Sierra  Leone  and  Togo)  to  bridge 
financing  gaps  they  faced  which  could  potentially  have  undermined  recent  progress  toward 
the  MDGs.  V-FLEX  allowed  the  respective  governments  to  maintain  progress  in  poverty 
reduction  whilst  underpinning  macroeconomic  stability  in  an  increasingly  challenging 
international  environment.  V-FLEX  disbursements  amounted  to  €161.5  million  in  2010. 
Budget  support  disbursements  were  also  made  under  the  EU  food  facility  in  DRC,  Ghana, 
Mozambique, Rwanda, Tanzania and Togo.  

Implementation of regional indicative programmes under the 10th EDF is getting under way. 
In  central  Africa,  funds  were  committed  for  the  first  important  programmes.  The  EU 
continued  its  long-standing  involvement  in  biodiversity  in  the  region  through  the  ECOFAC 
programme  ("Ecosystèmes  Fragilisés  de  l'Afrique  Centrale";  €30  million).  The  EU  also 

51 

Figures provided in this section exclude South Africa (see below, section 2.2.1.7 "South Africa") 

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adopted  a  support  programme  for  peace  and  security  (€12  million)  to  increase  the  region's 
capacity  to  promote  peace,  security  and  conflict  prevention.  Both  programmes  are 
implemented with the Economic Community of Central African States. 

the  support  programme  for  the  Economic 
In  2010,  the  EU  contributed  €45  million  to 
Community of the Great Lakes Countries (CEPGL). This programme aims to foster dialogue 
between  the  three  countries  concerned  (Burundi,  DRC  and  Rwanda),  develop  cross-border 
infrastructures and  support the joint development and management of the significant hydro-
power potential of the Ruzizi river in collaboration with other financing partners. 

At  country  level,  on  top  of  EDF  funding,  the  EU  adopted  new  projects  and  programmes 
financed  from  the  EU  budget.  This  included  €40  million  for  six  Sub-Saharan  countries 
(Republic of Congo, Ivory Coast, Kenya, Swaziland, Mauritius and Zimbabwe) as part of the 
accompanying  measures  for  Sugar  Protocol  countries.  Under  the  food  facility,  €121  million 
were  committed  to  support  food  security  in  Sub-Saharan  African  countries.  Tanzania 
benefited from a €32.4 million commitment in  2010, €20 million the form of budget support 
and €12.4 via a call for proposals.  

Improving food security in Ethiopia – The productive safety-net programme  

Chronic poverty and food insecurity remains a challenge in Ethiopia where 35% of 
rural  households  live  below  the  food  poverty  line.  Most  of  them  are  engaged  in 
subsistence  farming  on  small  plots  of  degraded  land  where  they  are  extremely 
vulnerable  to  weather  fluctuations.  These  factors  limit  their  capacity  to  meet  fully 
their most basic consumption needs even in years when rainfall is adequate.  

The productive safety-net programme (PSNP) aims to achieve food self-sufficiency 
for  chronic  and  transitory  food  insecure  households.  Initiated  in  2005,  the 
programme is helping the food-insecure population in about 300 woredas (districts) 
with 7.4 million beneficiaries in 2010, to preserve their assets and build community 
assets  which  create  more  favourable  environmental  conditions  for  increasing  their 
production capacity.  

In  December  2010,  the  Commission  committed  an  additional  €58  million to  the 
PSNP,  bringing  the  total  amount  committed  to  the  programme  to  €241.3  million, 
66% of which is actually disbursed. 

The  EU  also  continued  its  action  in  fragile  countries.  As  the  biggest  donor  in  the  Central 
African Republic (CAR) with 10th EDF funding of €137 million, th e EU plays a leading role 
in  sectors  like  democratic  governance,  justice,  security  sector  reform,  infrastructure,  public 
financial  management,  and  rural  development.  The  CAR  is  a  classic  example  of  a  donor 
orphan,  having  received  aid  worth  $178  million  in  2007  compared  with  a  Sub-Saharan 
average  of  $470  million.  The  EU  plays  a  major  role,  for  instance,  in  consolidation  of 
democracy and in 2010 committed €9.5 million  to support the electoral process.  

The fight against child trafficking in Benin  

Child  trafficking  is  a  complex  and  sensitive  issue  in  Benin,  where  it  is  one  of  the 
worst  human  rights  violations.  It  takes  the  form  of  internal  child  trafficking,  (with 
more  than  67 000  children  being  exploited  as  domestic  servants  or  in  informal 

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businesses)  or  sent  to  neighbouring  countries  (mainly  Nigeria)  as  cheap  manual 
labour. Benin is also an important transit country in west Africa.  

An  EU-funded  project  (€3.5  million)  is  bei ng  implemented  in  Benin  to  strengthen 
government institutions and civil society organisations dealing with child trafficking. 
The goal is to provide immediate support to victims and to address the root causes. 
By the end of the project, more than 5 000 children will have participated in various 
types of activities (training or care). 

In the governance sector, the EU action has contributed to enhance participation of citizens in 
public  life.  For  instance  in  Malawi,  the  "National  Initiative  for  Civic  Education",  which 
benefited  from  an  EU  contribution  of  €8.9  m illion,  facilitated  citizens'  participation  in 
democratic  decision-making  at  community,  district  and  national  level,  and  supported 
capacity-building of civil society organisations.  

The EU has been very active in the transport sector in Sub-Saharan Africa. It is estimated that 
the grants provided by the EU since 2004 have helped build and rehabilitate more than 7 200 
km  of  roads  and  maintain  another  29 000 km.  EU  grants  have  also  contributed  to  improved 
road management capacities, lowering transport costs and improving regional mobility.  

In  the  domain  of  food  security,  the  Commission  disbursed  €14.9  million  under  the  food 
security  budget  support  programme  in  the  summer  of  2010  for  Niger,  where  over  half  the 
population  was  in  a  state  of  food  insecurity.  This  is  estimated  to  have  saved  about  700 000 
families from famine. 

In  the  health  sector,  the  project  "Capacity  building  and  clinical  trials  of  new  tuberculosis 
vaccines in Africa" (€5 million) built capacity and  facilities for clinical trials of a leading new 
tuberculosis vaccine in South Africa and in Senegal. In the case of South Africa, a digital X-
Ray  system  was  purchased,  which  has  improved  the  clinical  capabilities  and  corresponding 
patient care. Clinical trials of the new TB vaccine are now ongoing. In Senegal, all facilities 
for  performing  a  clinical  trial  have  now  been  set  up,  including  staff,  offices,  clinics, 
laboratories  and  equipment.  As  a  result,  Senegal  has  become  a  leading  clinical  trial  site  in 
Africa.  

In the area of research, 66 projects were financed following a €72 million call for proposals 
under the Seventh Framework Programme (FP7). The focus was on water, food security and 
health, and required cooperation between European and African researchers. Funding for the 
period  2007-2010  was  also  available  for  collaborative  research  in  the  following  sectors: 
HIV/AIDS  (€83  million);  tuberculosis  (€65  million);  malaria  (€56  million).  Neglected 
infectious  disease  and  reproductive  and  maternal  health  research  were  addressed.  The 
European and Developing Countries Clinical Trials Partnership (EDCTP)52 also got support.  

Overall, despite the numerous positive results observed at micro-level, the macro-results are 
less  significant.  In  situations  of  fragility,  focus  on  stabilisation  is  crucial.  Often,  simply 
preventing  living  conditions  from  worsening  is  a  positive  achievement.  Several  instruments 
and programmes (governance programmes, Peace Facility, Instrument for Stability, etc.) are 
in place to promote political stability. 

52 

EDCTP: http://www.edctp.org/About_EDCTP.2.0.html  

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Governance  and 
Commission in Liberia  

institutional  reform:  support  for  the  General  Audit 

Liberia  has  had  a  General  Auditing  Office  since  1972,  with  a  mandate  to  audit  all 
government  accounts.  In  2005,  the  General  Auditing  Commission  (GAC)  was 
created,  as  an  independent  body  reporting  to  parliament,  in  order  to  comply  with 
international  best  practice.  EU  funding  helped  the  GAC  to  strengthen  its  capacity, 
increase  accountability,  transparency  and  efficiency  of  public  finance  management, 
and  ensure  sustainable  human  resources  management  systems.  This  project  helped 
enact  necessary  financial  reforms,  prior  to  the  decision  of  bilateral  and  multilateral 
creditors  to  grant  Liberia  debt  relief  of  $4.6  billion  in  June  2010.  It  also  led  to  the 
submission to the national legislature of 37 audit reports over the period 2007-2010 
and the establishment of a quality assurance department and quality control manual 
within the institution. Furthermore, 353 GAC staff attended local training courses. 

The  Commission  worked  to  better  equip  West  African  countries  to  tackle  drug  trafficking. 
Jointly with Europol, it supported two cooperation platforms set up by EU Member States in 
Ghana  (Accra)  and  Senegal  (Dakar).  These  platforms  facilitate  the  exchange  of  information 
on  capacity-building  projects  in  West  Africa,  and  of  operational  information.  The  EU 
continued to finance the 'cocaine route programme', under which major projects like AIRCOP 
and  SEACOP  became  operational.  The  Commission  also  supported  EU  Member  States' 
initiatives  focused  on  combating  drug  trafficking  along  the  cocaine  route,  such  as  the 
Fontanot Group, and took part in their work. 

2.2.1.5.  Monitoring 

In 2010, 395 ongoing national projects and eight regional programmes representing a total EU 
commitment  of  almost  €2.4  billion  were  moni tored  in  Sub-Saharan  Africa.  Another  65 
completed  projects  (ex-post  monitoring)  which  received  total  EU  funding  of  €542  million 
were monitored at national level53.  

Analysis of the results reveals that 61% of ongoing national projects are very good or good, 
27% present problems and 12% are experiencing major difficulties. Overall, 75% of projects 
monitored  received  very  good  and  good  ratings  for  relevance  and  design.  In  terms  of 
efficiency, performance was less good, with 43% of projects monitored facing problems and 
6% revealing major difficulties in terms of input used and implementation of activities. In aid 
effectiveness,  45%  experienced  difficulties  and  8%  showed  serious  deficiencies,  while  on 
sustainability 41% experienced problems. Inadequate risk management and weak adaptation 
capability  are  among  the  factors  that  often  hamper  the  achievement  of  project  objectives. 
However,  despite  this,  potential  impact  remains  very  good  or  good  for  70%  of  projects 
monitored. 

Sectors mostly concerned by external monitoring were social infrastructure and services (182 
projects  monitored  with  a  total  budget  of  €975  million)  and  economic  infrastructure  and 
services  (49  projects  worth  €739  million).  Sixty  percent  of  social  infrastructure  projects 
monitored  received  very  good  and  good  scores,  especially  in  the  fields  of  health,  education 
and water and sanitation. For example, the external monitoring mission to Swaziland revealed 

53 

Figures include South Africa 

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how  a  capacity-building  project  based  on  community  support  activities  can  effectively 
contribute to the reduce the incidence of new cases of HIV/AIDS.  

In the economic infrastructure sector, delivery of aid was even more effective, with 65% of 
national ongoing projects doing very well or well and only 6% facing major difficulties (the 
remaining 29% performing with problems). 

Eight  sector  policy  support  programmes  in  Benin,  Ghana,  South  Africa  and  Mozambique 
representing a total EU commitment of €236 million were assesse d. According to the external 
monitoring  missions,  none  is  facing  major  problems.  Four  are  performing  with  some 
problems and four are doing well.  

A particularly positive example highlighted by the external monitoring mission is the support 
programme for decentralisation reform in Benin, which aims at strengthening the capacities of 
the municipalities in order to boost local development and improve the services delivered to 
the population. Another example of a very well-performing budget support programme is the 
legislative  sector  policy  support  programme  in  South  Africa.  According  to  the  external 
monitors, 
the  process  of  deepening 
parliamentary democracy and developing representative democracy. 

is  effectively  contributing 

this  programme 

to 

Table 6 Africa- Very good and good ROM scores per evaluation criteria 2008-2010  

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

2008

2009

2010

Relevance

Efficiency

Effectiveness

Impact

Sustainability

Table 7 Africa- Performance of projects per ODA sector (%) 

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g y y

75.86%

70.59%

58.24%

61.22%

49.25%

27.47%

28.57%

29.85%

54.35%

30.43%

20.00%

20.00%

23.53%

1.65%

4.08%

2.99%

6.90%

3.45%

8.70%

-

-

Social Infrastructure
and Services

Economic
Infrastructure and
Services

Production sectors

Multisector -
Crosscutting

Commodity Aid +
General Programme
Assistance

t Emergency Assistance

Other Unallocated
Unspecified

Very good performance 
Good performance 
Performing with problems 
Not performing or having major difficulties

2.2.1.6.  Outlook 

As  of  2011,  the  Commission  will  start  implementing  the  Banana  Accompanying  Measures 
(BAM),  paid  for  from  the  EU  budget  for  the  benefit  of  ACP  banana  producers  Cameroon, 
Ghana and the Ivory Coast, as well as seven Caribbean countries.  

The  EU  will  continue  working  at  pan-African  level  with  the  African  Union,  following  the 
Tripoli  summit  of  November  2010,  particularly  on  the  Joint  Africa-EU  Strategy  and  its 
second action plan.  

Mid-term reviews of the 10th EDF country strategy papers will be finalised in 2011. They will 
focus on the MDGs as part of the initiative launched by the European Commission at the UN 
summit  on  MDGs  in  September  2010  with  a  funding  pledge  of  €1  billion  from  the  EDF. 
Specific  attention  will  be  given  to  the  most  off-track  MDGs:  fighting  poverty  and  hunger 
(MDG1),  child  mortality  and  maternal  health  (MDGs  4  &  5)  and  access  to  water  and 
sanitation (MDG7).  

The EDF will undergo a general performance review in 2011. It will contain proposals for the 
EU’s  multiannual  financial  framework  for  2014-2020  and  the  use  of  leftovers  from  the  9th 
EDF.  

Following the Council decision allocating €150 million from the 9 th EDF to address the needs 
of the most vulnerable population in Sudan54, the Commission should adopt in 2011 a special 
support  programme  to  provide  assistance  notably  in  the  fields  of  food  security/agriculture 
development, basic services and democratic governance. 

South Africa  

54 

Council Decision No 2010/406/EU of 12 July 2010 on the allocation of the funds de-committed from 
projects  under  the  ninth  and  previous  European  Development  Funds  (EDF)  for  the  purpose  of 
addressing the needs of the most vulnerable population in Sudan (OJ L 189) 

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2.2.1.7.  Introduction  

Over  the  past  15  years,  relations  between  the  EU  and  South  Africa  have  grown  steadily 
closer.  Today,  the  EU  and  South  Africa  cooperate  on  a  broad  range  of  political,  trade  and 
economic matters, as well as on science and technology, environment and energy. 

In recognition of South Africa’s role as an emerging economy and as a key player in peace 
and  security  matters  on  the  African  continent,  the  EU  and  South  Africa  entered  a  strategic 
partnership in 2007 and adopted a joint-action plan. During 2010, further steps were taken to 
strengthen ties.  

Progress was reviewed at the third annual South Africa-EU summit in Brussels in September 
2010.  The  summit  expressed  satisfaction  at  the  implementation  of  the  joint  action  plan,  as 
well  as  the  various  high-level  political  dialogues  which  took  place  during  the  year.  It  also 
discussed global issues and peace and security matters, in the light of South Africa’s role as a 
leading player in Africa and potential bridge-builder, notably in the international negotiations 
on climate change and the building of an effective multilateral system (UN, G20, etc). 

The EU and South Africa continued in 2010 their dialogue on peace and security with a view 
to developing converging approaches on conflict resolution issues. South Africa and the EU 
have expanded cooperation and technical work to cover migration, human rights, crime and 
justice, health, energy, higher education, environment, science and technology, ICT, transport 
and  customs  and  statistics.  Concerning  space  collaboration,  the  EU  and  South  Africa 
continued  their  work  on  extending  the  coverage  of  the  European  Geostationary  Navigation 
Overlay  Service  (EGNOS)  to  South  Africa  and  on  cooperation  to  extend  coverage  of  the 
global navigation satellite systems (GNSS) to South African airspace, and setting up a Galileo 
ground station in South Africa.  

2.2.1.8.  Aid effectiveness and donor coordination  

The  EU  and  its  Member  States  are  constantly  working  to  improve  aid  effectiveness,  a  key 
objective  of  the  2007-2013  South  Africa-EU  joint  country  strategy.  Alignment  with  South 
Africa’s  national  development  strategies  has  been  assured  by  the  joint  South  Africa-EU 
country  strategy  (2007-2013),  endorsed  by  the  South  African  government,  the  Commission 
and  the  11  EU  Member  States  active  in  providing  development  assistance  to  the  country. 
Under this joint strategy, all European partners agree to focus on the same goals: promotion of 
pro-poor and sustainable economic growth, capacity-building and provision of basic services 
for the poor, and good governance.  

The EU has also put in place donor coordination  mechanisms  –  the  so-called  EU+  working 
groups  in  health,  education,  science/technology,  employment  and  governance.  These  are 
platforms where EU and non-EU partners exchange information and coordinate projects and 
programmes in consultation with South African counterparts. The result has been progress in 
terms of enhanced cooperation and division of labour (e.g. joint programmes in land-reform, 
public service and youth empowerment, with several EU partners).  

A substantial move towards budget support has also contributed to improve aid effectiveness 
through  the  use  of  national  procedures,  quicker  disbursement  and  increased  ownership  and 
predictability. 

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In  the  health  sector,  government-led  coordination  is  currently  being  taken  to  another  level. 
For  example,  the  government  is  now  leading  regular  strategic/technical  meetings  with 
development  partners  in  an  effort  to  better  align  and  harmonise  their  activities.  The  parties 
involved are to sign a far-reaching aid effectiveness framework agreement, reflecting a new 
outcome-based approach from the health department.  

2.2.1.9.  Working towards the MDGs  

Overall,  South  Africa  has  advanced  towards  meeting  MDG  targets,  especially  in  relation  to 
poverty  reduction  and  education,  while  progress  on  health  and  HIV/AIDS  has  proved  more 
difficult.  According  to  the  latest  MDG  report  submitted  to  the  UN  in  September  2010,  the 
population living below $1 (at purchasing power parity) per day (MDG1) is estimated to have 
halved compared to the 2000 level. This is largely due to the national social grant system put 
in  place  in  2000  which  contributed  to  improving  the  revenue  of  the  poorest  part  of  the 
population.  The  EU  is  currently  supporting  the  national  employment  plan  to  enable  net  job 
creation and consequent improvement of income indicators.  

Although  consistently  high  enrolment  ratios  in  primary  education  since  2002  are  likely  to 
enable South Africa to reach its MDG2 target in 2015, the quality of the education system is a 
cause for concern. The EU seeks to address this through its biggest-ever programme in South 
Africa (the primary education support programme worth €122.7 million). 

In the health sector, 2015 targets for  MDGs 4, 5 and 6 are far from being reached with the 
HIV/Aids epidemic the leading cause of under-performance. South Africa now has the largest 
HIV/AIDS treatment programme in the world and the strong political commitment shown by 
the government in 2010 gives hope that the spread of HIV can soon be reversed with positive 
impact on maternal health and child mortality. The EU is the biggest donor in the health and 
HIV/AIDS  sector  in  South  Africa  and  will  put  further  emphasis  on  strengthening  primary 
health-care.  

2.2.1.10. Implementation and results 

The 2010 annual action programme for South Africa committed a total of €143.7 million as 
follows: 

•  a primary health care programme (€ 126 million sector budget support),  

•  contributions  to  two  regional  (intra-ACP)  projects  –  Nyerere  academic  mobility  scheme 

(€5 million) and science and technology (€3 million),  

•  a top-up of the Erasmus Mundus-II programme (€3 million),  

•  a technical cooperation facility (€6.7 million). 

The package follows the pattern of previous years, delivering about 90% of new commitments 
in the form of sector budget support. Disbursements rose to €113 million in 2010, compared 
to €106 million in 2009.  

South Africa – higher education HIV & AIDS  

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The €20 million higher education HIV & AI DS programme which ended in March 
2010  supported  the  department  of  higher  education  and  training  and  the  23  public 
higher education institutions (HEIs) in South Africa to meet the challenges posed by 
the  HIV/AIDS  pandemic.  Amongst  the  programme’s  achievements  were  the 
adoption  of  a  national  policy  framework  on  HIV/AIDS  in  the  higher  education 
sector, the development of a sustainable funding model for addressing HIV/AIDS in 
this  sector,  the  documentation  of  good  practices  with  respect  to  prevention,  the 
piloting  of  an  HIV/AIDS  module  for  students,  the  development  of  a  workplace 
the  strengthening  of  on-campus  services 
policy  framework  for  HEIs,  and 
(counselling  and  testing,  HIV  treatment  etc)  for  students  and  staff.  Of  particular 
significance  are  the  results  of  a  study  on  HIV  prevalence  amongst  23 000  students 
and staff undertaken by the programme, which now provides a solid basis for future 
planning and resourcing. 

The  EU  also  supports  regional  cooperation  via  programmes  with  the  Southern  African 
Development  Community  (SADC)  and  contributions  to  intra-ACP  projects.  For  the 
government  of  South  Africa,  regional  trade  and  political  cooperation  remain  priorities 
alongside greater South-South cooperation. In this respect, it aims to take a more pro-active 
development  cooperation  role  on  the  African  continent  through  the  establishment  of  a 
development partnership agency in 2011, to boost regional cooperation and to improve donor 
coordination. Trilateral cooperation between the EU, South Africa, and its African partners is 
envisaged in the South Africa-EU strategic partnership joint action plan. 

South Africa - Creating jobs through local economic development  

The €38.5 million KwaZulu-Natal local economic development support programme 
(Gijima-LED) aims at improving the quality of life for the people of KwaZulu-Natal. 
This province has the second largest provincial economy in South Africa but also its 
highest  unemployment  rate.  Between  2002  and  2010,  219  projects  were  supported 
through grant funding of €12.6 million which a ttracted additional public and private 
investment  of  €16  million.  Over  100  business  partnerships  have  been  established, 
which contributed to the creation of 4 255 sustainable jobs. Women occupied more 
than 50% of these jobs. A total of 1 064 people have been trained in aspects of local 
economic  development,  while  10 018  people  have  been  included  in  HIV/AIDS 
mitigation plans. Sustainability of the programme has been secured by the provincial 
government through a successor programme (Gijima LED II), which will be funded 
completely through national and provincial public funds and private resources.  

The  country  strategy  for  South  Africa  for  2007-2013  strongly  focuses  on  employment 
creation and social services. The shift to budget support, representing about 90% of all new 
commitments,  is  highly  appreciated  by  national  authorities  and  has  improved  the  quality  of 
aid  delivery  in  various  aspects,  such  as  national  ownership,  substantial  reduction  in 
administrative  costs,  predictability  and  focus  on  results.  The  2009-2010  mid-term  review 
concludes that EU aid delivery has made good progress by concentrating on fewer but larger 
actions with bigger impact on national policy priorities.  

The critical sectors of education and health services have been targeted over the last two years 
with new programmes on primary education and primary health-care being approved in 2009 
and 2010 (representing a total value of around €250  million). Their impact is expected to be 
high  in  terms  of  improved  learner  performance  in  literacy/numeracy  and  better  access  to 

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antiretroviral 
programme, job creation activities and projects are gaining momentum. 

treatment  for  HIV-positive  pregnant  women.  Under 

the  employment 

2.2.1.11. Outlook 

EU  development  cooperation  policies  will  continue  to  focus  on  employment  and  social 
services, targeting a significant reduction in poverty gaps in the years to come. For the period 
2011-2013, it will concentrate on service delivery/public finance management, climate change 
and sustainable development, as well as regional and pan-African cooperation activities. The 
2011  annual  action  programme  provides  for  a  national  development  policy  support 
programme,  mainly  using  budget  support  and  aimed  at  strengthening  key  government 
priorities  on  poverty  reduction  as  well  as  cross-cutting  issues  such  as  public  finance 
management  and  local  service  delivery.  More  regional  cooperation  activities  are  planned 
through  a  contribution  to  the  Edulink  programme  for  capacity  development  in  higher 
education,  and  the  extension  of  the  current  legislative  sector  policy  support  programme  to 
regional  activities.  Support  for  South  African  participation  in  the  Erasmus  Mundus 
programme will also continue.  

2.2.2.  Caribbean 

2.2.2.1.  Introduction 

The  EU  strategy  for  the  Caribbean  is  built  around  a  future  vision  founded  on  a  history  of 
shared values. It will exploit to the full the opportunities contained in the Cotonou Agreement. 
In  addition,  the  commitment  made  at  the  EU-Caribbean  Forum  (CARIFORUM)  meeting  in 
Madrid in May 2010 to develop a joint strategy demonstrates the shared wish for an enhanced 
EU-Caribbean political partnership to meet a variety of challenges: 

• 

tackling economic and environmental opportunities and vulnerabilities; 

•  promoting social cohesion, and combating poverty and HIV/AIDS; 

•  promoting regional integration; 

• 

reconstructing Haiti; 

• 

fighting illicit drugs and tax fraud; 

•  Optimising joint action in multilateral fora. 

Further  steps  were  taken  to  strengthen  donor  coordination  with  bilateral  and  multilateral 
donors active in the region. Information sharing has become more systematic and regular. 

Following  the  January  2010  earthquake  in  Haiti,  the  EU  is  participating  actively  in  multi-
donor  efforts  to  rebuild  the  country  and  is  part  of  the  Interim  Haiti  Reconstruction 
Commission, the body charged with coordinating Haitian and international donor efforts. 

All Caribbean countries have been affected by the global economic and financial crisis. This 
may  slow  down  poverty  reduction  and  reverse  progress  towards  the  achievement  of  the 
MDGs.  Progress  is  therefore  mixed,  but  the  MDGs  remain  at  the  core  of  the  development 
process.  The  10th  EDF  regional  programme  supports  regional  integration  and  complements 

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the  EU-Caribbean  economic  partnership  agreement  provisionally  applied  since  2008  which 
defines trade relations between the EU and the Caribbean. Significant progress was achieved 
in 2010 towards implementing the regional programme. This is also the case for the 10th EDF 
country  strategies,  signed  at  the  end  of  2008,  which  address  both  private  and  public  actors. 
infrastructure  and 
Major  sectors  covered 
interconnectivity,  macroeconomic  budgetary  support  and  poverty  reduction.  Other  sectors 
explicitly  covered  are  capacity-building  related  to  the  regional  programme  for  additional 
trade-related assistance accompanying the EPA, and good governance in the tax area. In 2010, 
the  10th  EDF  mid-term  review  process  was  completed  as  required  under  the  Cotonou 
Agreement. 

include  governance  and  competitiveness, 

Systematic monitoring of all programmes is ensured through a series of instruments. The joint 
annual reports, identify contextual developments as well as progress in implementation. The 
mid-term  review  is  essential  for  monitoring  cooperation  with  the  Caribbean,  and  planned 
along with ad-hoc evaluations like the impact evaluation of the regional programme launched 
in  2010.  They  permit  timely  adjustments  and  modifications  with  a  view  to  ensure 
effectiveness, efficiency, coherence, relevance and appropriateness. 

2.2.2.2.  Aid effectiveness and donor coordination 

The Commission remains committed to strengthening donor coordination in the region. The 
Commission sits on the steering committee of the Caribbean Regional Technical Assistance 
Centre (CARTAC) and works closely with the IMF, the World Bank, the UK’s Department 
for  International  Development  (DfID),  and  the  Caribbean  Development  Bank  on  macro-
economic and public finance management issues.  

Further progress was made in 2010 on the division of labour among donors. The financial and 
economic  crisis,  which  severely  affected  eastern  Caribbean  countries,  has  led  to  increased 
coordination  with  other  donors  and  in  particular  the  IMF.  In  the  eastern  Caribbean,  the 
Commission  works  closely  with  fellow  donors  on  budget  support  and  public  financial 
management. There are also close working relations with the World Bank and UNDP on sub-
regional  social  protection  reform  and  with  the  FAO  on  agriculture.  Donor  coordination  on 
trade  issues  is  effective  and  is  becoming  increasingly  important  on  issues  related  to  drug 
trafficking and crime prevention.  

The  Commission  promotes  donor  coordination  with  CARIFORUM.  Financing  for  this  is 
foreseen in the Caribbean institutional strengthening programme. A donor meeting organised 
by the CARICOM secretariat took place in December. The secretariat presented its strategic 
development  plan,  the  roadmap  for  regional  integration  and  an  overview  of  international 
development partners engaged in regional cooperation activities. 

Following the earthquake of 12 January 2010 in Haiti, the Commission and some EU Member 
States  took  part  in  an  early  recovery  assessment  mission  and  in  the  post-disaster  needs 
assessment  which  contributed  to  the  government's  action  plan  for  national  recovery  and 
development. The Commission and other international development partners agreed on a joint 
performance  monitoring  framework  for  budget  support  with  the  government  of  Haiti.  The 
framework  includes  performance  indicators  for  macro-economic  and  public  finance 
management as well as a number of poverty-related sectors. 

Haiti – The aftermath of the earthquake 

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Dealing with the aftermath of January’s devastating earthquake was a big priority in 
2010. Immediately after the earthquake, the European Commission took a series of 
emergency measures. Ongoing projects and programmes were reviewed and adjusted 
where  necessary.  Some  received  extra  funding  to  respond  to  the  new  needs  and 
priorities  that  emerged.  New  additional  programmes  were  put  in  place.  Conditions 
for general budget support were re-assessed and additional measures and guarantees 
put in place. Budget support disbursements between January and September 2010 of 
€57.8  million  allowed  the  government  to  main tain  critical  spending,  notably  in 
health, education and security. In the education sector, kits were distributed to help 
schools take charge of the many additional pupils who moved from the capital, Port-
au-Prince,  to  other  areas.  School  rehabilitation  work  got  under  way.  Tenders  were 
launched for the rehabilitation of the remaining section of the main highway to Cap 
Haïtien,  and  funds  were  made  available  to  rebuild  the  premises  of  the  "Centre 
National d'Imagerie Géo-Spatiale".  

2.2.2.3.  Working towards the MDGs 

The global economic and financial crisis forced some Caribbean countries to reduce priority 
expenditure as their economies slowed down, and revenue fell, particularly from tourism and 
financial  services.  This  may  affect  poverty  reduction  efforts  and  slow  progress  towards  the 
MDGs. To mitigate this potential negative impact, the Commission allocated funds from the 
2010 budget of the Vulnerability Flex mechanism to Antigua & Barbuda, Grenada and Haiti.  

Over  the  past  four  years,  the  Commission  has  been  supporting  education  in  the  Dominican 
Republic  through  a  €63.5  million  sector  budget  support  programme.  The  objectives  are  to 
improve access to quality basic education and to develop the effectiveness and efficiency of 
the  sector  in  line  with  the  national  efforts  for  social  and  economic  development.  Some 
progress can be noted. Between 2007-2008 and 2009-2010 for instance, the number of five-
year-olds  enrolled  in  schools  increased  from  68.3%  to  75.4%  while  average  scores  in  8th 
grade mathematics improved from 53.6 in 2007 to 55.8 in 2010. But more efforts are needed 
to respond to persistent needs and to improve the country's performance at regional level. 

In  the  eastern  Caribbean,  despite  good  progress  in  reaching  most  MDGs,  more  needs  to  be 
done  especially  on  combating  HIV/AIDS  and  ensuring  environmental  sustainability.  To 
support  these  countries,  the  EU  is  investing  in  health,  education,  sustainable  tourism, 
agriculture, basic infrastructures, employment and growth, through several projects and direct 
budget support.  

Support for Guyana’s sea defences 

The population of Guyana is mostly squeezed into the narrow coastal strip between 
the Atlantic Ocean and the world’s largest remaining virgin rainforest. Much of the 
coastal zone is at least half a metre below sea-level. Almost all livelihoods, economic 
and  agricultural  activity  are  under  threat  of  flooding  and  climate  change  has 
increased this threat.  

The coastal zone is protected by about 370 km of sea defences, including an 80 km 
sea wall. Sea defences have been neglected since the 1970s and most of the concrete 
walls are now 30-75 years-old. Mangrove and artificial earth defences are threatened 
by natural erosion processes. Breaches in these defences are a constant danger.  

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The  EDF  has  funded  a  series  of  sea  defence  projects.  The  intention  has  been  to 
rehabilitate  or  reconstruct  critical  sections  of  the  sea  wall  to  reduce  immediate 
threats,  and  to  create  a  more  sustainable  defence  system  which  can  be  better 
maintained.  The  EU  is  also  supporting  a  programme  for  the  conservation  of  the 
mangrove  forests  that  once  stretched  along  the  entire  coastline  but  have  now  been 
damaged by human interference and erosion. Re-establishment of mangrove forests 
could potentially be a cheaper form of coastal protection, and one which encourages 
biodiversity and contributes to carbon capture. 

In  certain  countries  available  data  remains  insufficient  to  make  an  informed  progress 
assessment. Often statistical information does not go beyond 2007, posing problems for data 
collection and analysis. 

2.2.2.4.  Implementation and results 

In  2010,  €361  million  was  committed  to  the  Ca ribbean  from  the  various  cooperation 
instruments  managed  by  the  Commission.  Six  annual  action  programmes  totalling  €127 
million were approved under the 10th EDF, as were nine other financial decisions worth €130 
million. From the EU budget, six countries (Barbados, Belize, Guyana, Jamaica, Saint Kitts 
and  Nevis,  and  Trinidad  and  Tobago)  benefited  from  accompanying  measures  to  diversify 
their  economies  and/or  increase  the  competitiveness  of  their  sugar  industries  following  the 
reform  of  the  EU  sugar  market.  In  2010,  these  countries  received  €101  million  in 
commitments. In addition, a €3  million programme in Belize was financed from the thematic 
programme for the Global Climate Change Alliance.  

Budget  support  remains  the  most  important  implementation  modality  in  the  region, 
accounting  for  78%  of  all  new  programmes  approved  in  2010.  The  traditionally-funded 
programmes cover private sector development (8%), infrastructure (6%), sugar sector reform 
(5%) with the remainder going to other sectors.  

EDF payments in the Caribbean region, excluding the OCTs, totalled €307.2 million in 2010. 
Caribbean  countries  received  €29  million  in  2010  from  the  special  framework  of  assistance 
for traditional ACP suppliers of bananas. These funds are helping local economies to diversify 
and are assisting the seven beneficiaries (Belize, Dominica, Grenada, Jamaica, St. Lucia, St. 
Vincent and the Grenadines and Suriname) to cope with changes in the banana market. €56 
million  was  disbursed  under  the  accompanying  measures  for  Sugar  Protocol  countries.  In 
addition, €13.4 million went to Haiti under the  thematic programme for food security.  

The Vulnerability Flex mechanism was also mobilised in the region against the effects of the 
global financial and economic crisis. The EU gave Grenada two V-FLEX grants in 2009 and 
2010.  The  funds  were  added  to  the  private  sector  development,  employment  and  growth 
programme, and supported school meals programmes, public assistance to vulnerable groups, 
and road improvements and maintenance.  

Law and order in Jamaica 

In  Jamaica,  the  €33  million  EU  security  sector  reform  programme  helps  to  fight 
crime and improve accountability within the security services. A number of activities 
took  place  in  2010  bringing  major  results,  such  as  improved  integrity  within  the 
Jamaica  constabulary  force  and  better  administration  of  justice  in  the  country.  The 

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programme has proved to be an effective means of helping the country in its efforts 
to reduce crime, maintain peace and effectively deliver criminal justice.  

Despite  higher  disbursements  in  2010  and  some  concrete  results,  budget  support  remains  a 
challenge in the Caribbean. The reason is that most countries in the region are middle-income 
countries where  budget  support represents  a much smaller share of national  budgets than in 
other regions This affects the actual leverage ability of EU assistance and the justification for 
an  in-depth  policy  dialogue  between  donor  and  recipient.  Constraints  also  relate  to  limited 
administrative capacities to deal with the complex monitoring mechanisms that should be put 
in  place  in  order  to  track  progress  in  the  assisted  sectors.  This  is  particularly  true  of  small 
islands,  which  receive  high  per  capita  aid  allocations  which  they  are  not  always  able  to 
absorb. In some countries, the absence of robust national and sector strategies as well as the 
lack of firm ownership have also had a negative impact.  

In  addition,  tracking  progress  on  an  annual  basis  in  public  finance  management  systems  is 
more  difficult  in  middle-income  countries  where  systems  are  often  more  advanced  than  in 
lower  income  countries.  In  such  situations  the  reform  requirements  in  public  finance 
management can be less visible and may need more time to implement. 

In  helping  neighbouring  Haiti  in  the  aftermath  of  the  earthquake,  the  Dominican  Republic 
disbursed funds earmarked for unforeseen emergency expenditure. To offset the impact on the 
Dominican  Republic's  2010  budget,  the  Commission  accelerated  approval  of  a  new  general 
budget support programme with the first disbursement taking place in late 2010. 

The  10th  EDF  Caribbean  regional  programme  pays  particular  attention  to  establishing  a 
Caribbean  single  market  and  economy,  to  achieving  maximum  benefits  from  the  economic 
partnership  agreement,  and  to  mitigating  potential  adverse  effects  from  the  resulting 
adjustment  process.  In  2010  the  Commission  allocated  €28  million  in  a  follow-up  to  a 
successful  Caribbean  regional  private  sector  development  programme  which  ended  in 
December. These regional private sector development programmes are complementary to the 
budget  support  programmes  in  Dominica  (€17  million)  and  Grenada  (€17.5  million)  which 
focus  on  improving  the  business  environment  and  investment  climate,  and  Barbados  (€10.1 
million) which targets international business development.  

Grenada – joint effort to attract outside investors  

Ranked  100th  in  the  World  Bank  Doing  business  report  in  2006/2007  Grenada 
needed major improvements in its business climate to attract foreign investors. The 
biggest  problem  areas  were  property  rights,  enforcing  contracts  and  closing  a 
business. The EU joined forces with the World Bank to improve the situation. 

In  2007,  The  EU  launched  a  multi-year  budget  support  programme  in  Grenada  to 
improve  its  investment  climate  and  attractiveness  to  foreign  investors.  The 
programme  was  accompanied  by  a  World  Bank  technical  assistance  loan  signed  in 
2008. The joint EU and World Bank efforts are starting to show results, as the 2011 
Doing  business  report  recognised  by  placing  Grenada  among  the  top  10  best 
reformers in 2010. 

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2.2.2.5.  Monitoring 

In 2010, 51 ongoing national projects and eight ongoing regional programmes representing a 
total EU commitment of almost €380 million we re monitored in the Caribbean region. Seven 
national and one regional completed project (ex-post monitoring) representing EU funding of 
almost €38 million were monitored. 

Analysis of the results reveals that 72% of the monitored national ongoing projects performed 
well  or  very  well,  while  14%  presented  problems  and  14%  encountered  major  difficulties. 
Overall, 86% of projects monitored received very good and good ratings on the relevance and 
design  criteria.  The  good  or  very  good  ratings  were  82%  for  impact  and  73%  for 
sustainability.  

The  average  performance  on  the  five  DAC  criteria  improved  in  2010  compared  to  2009. 
However, some constraints persist in terms of efficiency (as 35% of projects monitored face 
problems  and  14%  show  serious  deficiencies  in  terms  of  input  used  and  implementation  of 
activities), and effectiveness (with 39% experiencing difficulties in delivering results and 6% 
serious  deficiencies).  Poor  risk  management  and  overambitious  project  formulations  are  the 
biggest problems undermining the attainment of objectives. 

At Regional level, six projects show a good performance while two are performing with some 
problems.  This  good  result  may  be  in  part  explained  by  the  nature  of  the  implementing 
partners, who include the FAO, the Organisation of American States or CARIFORUM. 

Sectors  most  concerned  by  external  monitoring  were  social  infrastructure  and  services  (21 
projects monitored with a total value of €114  million) and production sectors (16 projects and 
€82  million).  Seventy-six  percent  of  social  infra structure  projects  monitored  received  very 
good  and  good  scores,  especially  in  the  fields  of  health,  government  and  civil  society  and 
education.  In  the  production  sectors,  delivery  of  aid  was  even  more  effective,  with  88%  of 
national  ongoing  projects  doing  well  and  12%  facing  major  difficulties.  As  in  2009,  social 
projects performed better than economic ones. 

In  addition  to  the  above,  three  sector  policy  support  programmes  (SPSP)  in  Montserrat, 
Trinidad & Tobago and Jamaica were monitored, representing a total EU commitment of €5.5 
million. According to the monitoring report, the SPSP in Montserrat and Jamaica are facing 
some  problems.  However  the  SPSP  in  Trinidad  and  Tobago,  which  supports  the  education 
sector,  is  performing  well.  The  external  monitors  found  that  the  programme  strongly 
contributes  to  widening  access  to,  and  enhancing  the  quality  of,  non-university  tertiary 
education  through  its  actions  to  modernise  the  national  training  system,  reduce  gender 
disparities, train teachers, reform school curricula and implement a system of public funding. 

Table 8 Caribean- Very good and good ROM scores per evaluation criteria 2008-2010 

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100

90

80

70

60

50

40

30

20

10

0

2008

2009

2010

Relevance

Efficiency

Effectiveness

Impact

Sustainability

Table 9 Caribean – Project performance per ODA sector (%) 

87.50%

76.19%

14.29%

42.86%

28.57%

60.00%

20.00%

-

-

-

-

-

Social
Infrastructure
and Services

Economic
Infrastructure
and Services

Production
sectors

Multisector -
Crosscutting

Very good performance 
Good performance 
Performing with problems 
Not performing or having major difficulties

2.2.2.6.  0utlook  

Building  on  growing  experience  with  budget  support,  the  implementation  capacity  of  local 
authorities should improve over time. The more systematic use of the public expenditure and 
financial  accountability  (PEFA)  methodology  to  assess  public  finance  management  and  the 
assessments undertaken during the year provide the basis for enhanced dialogue on important 

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public  finance  management  issues  and  improved  monitoring  frameworks.  Further  dialogue 
guidance will nevertheless be needed, particularly on sector budget support in areas like the 
private sector and trade development.  

Under the accompanying measures for former Sugar Protocol countries, an indicative amount 
of €252 million has been  allocated for Barbados, Belize, Guyana, Jamaica, St. Kitts and Nevis 
and  Trinidad  and  Tobago  for  2011-2013.  These  substantial  funds  will  further  support  sugar 
sector reform, macroeconomic stability, employment and growth in those countries with the 
exception  of  Trinidad  and  Tobago  which  is  diversifying  out  of  sugar  into  other  economic 
sectors.  From  2011,  the  Commission  will  start  implementing  the  banana  accompanying 
measures (BAM), which will benefit seven Caribbean countries.  

In Haiti, project implementation on the ground should accelerate in 2011, after a year of post-
earthquake technical studies and tender procedures. The funds pledged by the Commission in 
response to the disaster will be disbursed over the next two years, as projects move forward. 

Saint  Vincent  and  the  Grenadines  and  Saint  Lucia  -  linking  disaster  response 
with rehabilitation  

Following  the  passage  of  Hurricane  Tomas  at  the  end  of  October,  a  big  concerted 
effort  was  made  to  ensure  that  all  available  and  potential  resources  were  used  to 
assist  both  St.  Lucia  and  St.  Vincent  &  the  Grenadines.  The  aim  was  not  just  to 
provide emergency relief, but also to help both countries rehabilitate certain sectors 
like crop production, health, and education. 

Immediate emergency aid of €200 000 went to  restore health and sanitary conditions 
in St. Lucia and St. Vincent and the Grenadines. The aid, implemented by the Pan-
American  Health  Organisation  (PAHO),  was  used  to  ensure  safe  water  supplies  to 
health  facilities,  shelters  and  vulnerable  households  as  well  as  safe  waste  disposal 
and disease control activities. 

The EU and some member states had also contributed over 25% of the initial capital 
of the Caribbean catastrophe risk insurance facility (CCRIF). The CCRIF announced 
shortly  after  the  hurricane  that  it  would  provide  $3.2  million  to  St.  Lucia  and  $1.1 
million to St. Vincent and the Grenadines. 

A second emergency aid decision mobilised €1 million to support operations by the 
French  Red  Cross  (emergency  relief  items,  shelter,  safe  water  and  hygiene 
promotion) and the FAO (re-establishing production by small-scale banana and other 
farmers). In St. Lucia, money from existing EU projects for education and for the St. 
Lucia social development fund were reallocated to allow immediate disbursement to 
the  most  affected  communities.  In  St.  Vincent  and  the  Grenadines  an  additional 
€600 000 was being used for rehabilitation effo rts: for school furniture, to assist the 
recovery of small-scale farms, and for restocking of medical supplies.  

2.2.3.  Pacific 

2.2.3.1.  Introduction 

Pacific island countries are among the most seriously affected in the world by climate change. 
For some, it poses an existential threat. Climate change has therefore taken centre stage in all 

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discussions between the Pacific island countries (PICs) and their main international partners 
concerning assistance to the region.  

The  EU  and  the  Pacific  Islands  Forum  (PIF)  secretariat  launched  in  December  an  EU-PIF 
initiative  on  climate  change  to  foster  understanding  and  facilitate  coordination  in  the 
international debate. The aim is also to ensure that a fair share of international climate change 
funding,  including  from  the  “fast  start”  initiative,  is  allocated  to  Pacific  countries  and 
territories through more effective delivery methods that will reinforce capacities, particularly 
for the smaller island states.  

The  Commission  has  accelerated  the  assessment  of  the  eligibility  of  Pacific  countries  for 
budget support. As a result, five Pacific countries (Vanuatu, Solomon Islands, Samoa, Tonga 
and  Tuvalu)  were  eligible  in  2010  for  budget  support  which  will  improve  their  absorption 
capacity and the effectiveness of climate change funding. 

Fiji  remains  a  concern,  given  the  poor  progress  in  the  return  of  democracy  and  the 
maintenance  of  public  emergency  regulation.  As  a  consequence,  aid  to  Fiji  remains 
suspended, with the exception of €8 million allo cated to support mitigation efforts for people 
living in sugar-producing areas. 

Tonga and Tuvalu qualified respectively for an additional €5.5 million and €1.5 million from 
the Vulnerability Flex instrument aimed at reducing the impact of the global financial crisis. 

2.2.3.2.  Aid effectiveness and donor coordination 

The  framework  for  enhancing  regional  aid  effectiveness  is  the  Cairns  compact,  adopted  by 
Pacific Forum leaders in August 2009. It provides a more structured mechanism for dialogue, 
coordination  and  reporting,  with  the  ultimate  objective  to  improve  the  quality  of  national 
development  strategies.  The  Forum  secretariat  is  primarily  responsibility  for  taking  forward 
implementation.  

The PIF 2010 report on aid effectiveness concludes that Pacific island countries are slowly but 
steadily making progress in managing foreign aid more effectively. Sector policy frameworks 
have been developed in some countries as in in Samoa in the water and sanitation sector; or in 
Tonga with the energy roadmap 2010-2020. Budget support is being used by the EU and the 
Asian Development Bank in several countries (such as the Solomon Islands, Tonga, Tuvalu). 
At  regional  level  the  Pacific  Plan,  adopted  in  October  2005  by  the  Pacific  Islands  Forum 
leaders, is the basis for the PICs' regional cooperation and integration efforts.  

The Commission continued its work to strengthen donor coordination. Although very few EU 
Member States are permanently represented in the region, dialogue is well-established with, 
for  instance,  the  French  and/or  British  diplomatic  missions  in  Fiji,  Papua  New  Guinea, 
Vanuatu  and  the  Solomon  Islands.  The  EU  delegation  in  Nouméa  coordinates  its  activities 
with the Nouméa and Papeete offices of the Agence Française de Développement (AFD).  

Much can still be done to reduce aid fragmentation,improve donor coordination, and make best 
use of combined domestic and foreign aid resources. Scope for improvement can be found in 
national policy frameworks, procurement rules, public financial management, coordination of 
development partner missions and better involvement of the non-governmental sector in policy 
planning.  

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Timor-Leste – Enhancing local ownership 

The  EU  has  been  supporting  a  rural  development  programme  which  promotes  the 
concept  of  village  development  planning  (VDP).  This  is  a  forum  that  showcases 
people's  participation  in  their  own  development,  promoting  local  governance  in  a 
true "bottom-up" approach. Ordinary people meet, discuss, analyse, debate and agree 
on the kind of future they want for themselves and their community. VDP started in 
2008, as a pilot scheme in four Sukos (villages) of the Covalima District in Timor-
Leste. The process was repeated after one year in the same Sukos, and then expanded 
to another  four  villages. It  comprises  a common  agenda and  vision of  development 
for the community, drawn up by the villagers. It consists of priority goals for the next 
five  years. In  addition,  community  action  plans  were  drawn  up  for  community 
activities  rather  than  projects. Since  projects  often  have  a  connotation  of  outside 
funding,  the  reference  to  community  activities  changes  the  mindset  of  the  villagers 
and increases ownership of the actions undertaken.  

2.2.3.3.  Working towards the MDGs 

The Cairns Compact on Strengthening Development Coordination in the Pacific55
 respond to 
Pacific leaders concerns that, despite high levels of development assistance over many years, 
the Pacific region may not achieve the Millennium Development Goals by 2015. To succeed, 
progress needs to be faster.  

In 2010, the picture was mixed for several MDGs, with some countries performing better than 
others  on  selected  indicators.  Poverty  reduction  remains  the  most  challenging,  notably  in 
Papua New Guinea and Timor-Leste. Maternal health and environmental protection are also 
areas where progress needs to be made.  

Improvement of health services in the outer islands of the Republic of Kiribati 

The project, which came to an end in December 2010, improved access to primary 
healthcare  in  18  islands  with  a  total  population  of  about  47 000  people.  The  EU 
contributed €8.8 million to the construction of  18 health centres and 56 dispensaries, 
together  with  equipment,  water  and  solar  energy,  computers,  radio  communication 
equipment  and  sanitation.  Through  major  training  programmes  for  healthcare 
professionals  on  the  island  the  quality  of  health  services,  both  in  terms  of 
management and delivery, were improved.  

Environmental  sustainability  (MDG7)  is  a  core  preoccupation  of  the  EDF-financed  national 
and regional indicative programmes. Access to safe drinking water and sanitation services is a 
focal sector supported by EU programmes in several Pacific countries like the Cook Islands, 
Kiribati,  Samoa  and  Tuvalu.  Sustainable  and  renewable  energy  programmes  are  being 
supported in other countries such as the Northern Pacific states, Nauru, Niue and Tonga. 

Samoa – Water sector support programme  

55 

http://www.forumsec.org.fj/pages.cfm/strategic-partnerships-coordination/pacific-principles-on-aid-
effectiveness/cairns-compact-1.html 

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In  2010,  Samoa  received  €4.4  million  as  part   of  the  EU's  water  sector  support 
programme.  Despite  the  adverse  effects  of  the  global  economic  crisis  and  of  the 
Tsunami  which  hit  the  country  in  2009,  the  government  managed  to  maintain  a 
sound  macroeconomic  framework  and  to  continue  improving  its  public  financial 
management. Significant progress was achieved by the government and the Samoan 
Water  Authority  in  particular,  in  reforming  the  country's  water  sector  policy  and 
water  resources  management.  With  the  help  of  the  EU  programme,  access  to 
drinking  water  was  increased  to  88%  of  the  population  and  the  number  of  primary 
schools  and  hospitals  with  acceptable  levels  of  sanitation  facilities  rose  to  88%  in 
line with the target. 

The global economic recession has seriously affected the small Pacific economies, resulting 
in  increased  budget  deficits,  reduced  flow  of  overseas  remittances,  and  a  contraction  of 
exports. This is likely to impact negatively on MDGs, even though governments have taken 
measures to protect the population from the most negative effects of the crisis, often with the 
help of donors.  

Weak national statistical systems remain a big challenge in most countries. This means a lack 
of comprehensive, recent and quality data, notably on the MDGs. Statistical capacity-building 
is crucial for successful aid programming and particularly for budgetary support. In Vanuatu, 
overall global budget support was based on incorrect input data which resulted in funds being 
withheld. Obtaining reliable data and indicators requires further attention from the countries 
concerned along with support from development partners. 

Solomon Islands – Micro-projects  

In the Solomon Islands, where more than 80% of the population live in rural areas, 
the micro-projects programme aims to provide rural communities with greater access 
to improved social services and sources of income. In 2008, over 120 projects were 
completed, including the rehabilitation of village schools and clinics, the installation 
of more than 104 water and sanitation systems plus 60 other income-generation and 
livelihood projects. At the Kavua water supply micro-project, visited by an EU team 
in  April  2010,  seven  water  outlets  had  been  installed  in  the  village.  The  supply  of 
water  saved  the  villagers  a  three  km  walk  to  clean  water  and  therefore  improved 
health.  

2.2.3.4.  Implementation and results 

The  allocation  of  funds  under  the  10th  EDF  is  progressing  well  in  most  small  islands  states 
with  commitment  rates  of  up  to  90%  or  even  100%.  Annual  action  programmes  were 
approved in 2010 in areas such as water and sanitation (Kiribati), support to non-state actors 
(Samoa,  Vanuatu  and  Timor-Leste)  and  rural  development  (Papua  New  Guinea  and  Timor-
Leste).  Post-tsunami  financial  support  was  also  approved  for  the  Cook  Islands,  Samoa  and 
Tonga.  By  the  end  of  2010,  more  than  half  of  the  countries  had  committed  70%  or  more  of 
their national indicative programme under the 10th EDF.  

Kiribati – Water and sanitation for outer islands  

Kiribati’s  groundwater,  its  most  common  source  of  freshwater,  is  increasingly 
threatened  by  saline  water  intrusion  (mainly  due  to  rising  sea  levels  and 

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unsustainable  management  of  water  resources),  increased  pollution  and  over-
extraction.  The  available  infrastructure  to  access  groundwater  is  often  broken  or  in 
very  poor  condition.  Rainwater  harvesting  can  be  an  efficient  and  sustainable 
complementary  source  of  safe  freshwater,  but  often  the  catchment  systems  and 
storage  facilities  are  inadequate.  The  EU  water  support  project,  approved  in  2010, 
seeks  to  address  some  of  these  issues.  It  intends  to  design  appropriate  water  and 
sanitation systems and increase the volume of rainwater safely harvested and stored. 
An intensive community consultation process should help to enhance knowledge and 
awareness among the population with regards to water, hygiene and sanitation issues. 

However, implementation and managerial capacity remains weak in many countries. Limited 
institutional capacity is a particular problem in Papua New Guinea where the EDF absorption 
rate was only 19% at the end of 2010.  

During  2010,  the  Commission  continued  to  extend  the  provision  of  budget  support  in  the 
Pacific region. In total, new commitments of budget support amounted to €32 million in 2010 
which  represents  a  substantial  increase  in  both  the  amount  and  the  number  of  countries 
covered. Budget support disbursements in 2010 amounted to €19.5 million.  

The  impetus  for  considering  greater  use  of  budget  support  in  the  region  has  mainly  been 
driven  by  short-term  actions  to  offset  the  impact  of  the  economic  crisis  in  a  number  of 
countries. This resulted in the provision of support under the V-FLEX instrument in Samoa, 
Solomon Islands, Tonga and Tuvalu with a total value of €27.7 million. These programmes 
were  designed  to  allow  the  countries  concerned  to  maintain  their  public  expenditure 
programmes  in  line  with  poverty  reduction  objectives  whilst  at  the  same  time  supporting 
macroeconomic stability.  

In  2010  the  Commission  approved  support  from  the  Global  Climate  Change  Alliance.  A 
regional  programme,  to  be  implemented  by  the  secretariat  of  the  Pacific  Community,  was 
allocated €11.4 million and  a  national programme  in the Solomon Islands €2.8 million. The 
support aims at helping the country and the region to increase resilience to climate change.  

Overall, EDF implementation at regional level advanced as planned with a 57% commitment 
rate of the 10th EDF regional envelope (€95 million  for 2008-2013) by the end of 2010. The 
regional annual action programme approved in December 2010 provides support for trade and 
regional  integration  (€30  million)  and  a  technical   cooperation  facility  (€2 million)  to  finance 
external  short-term  expertise.  The  regional  integration  programme  will  help  increase  Pacific 
island  countries'  capacity  in  trade  through  improved  technical  capabilities,  better  customs 
management and systems, and developing export potential in agriculture and forestry. Tourism 
will also be developed. Four regional agencies, the Pacific Islands forum secretariat (PIFS), the 
Secretariat of the Pacific community (SPC), the Oceania customs organisation (OCO) and the 
South  Pacific  travel  organisation  (SPTO)  will  implement  the  different  components  of  the 
programme. 

Rainwater catchments for outer islands 

The Marshall Islands are benefiting from a multi-country project which also covers 
Micronesia, Nauru, Tuvalu, Tonga, Solomon Islands, Papua New Guinea and Palau, 
with  a  total  EU  contribution  of  €9.2  m illion.  The  installation  of  350  rainwater 
catchments  (10 000-litre  capacity)  for  Majuro  is  ongoing.  Installation  of  173 

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rainwater  catchments  for  the  outer  islands  has  made  progress  as  well.  The  project 
envisages the supply of a further 250 rainwater catchment for Ebeye. The project has 
allowed  the  Marshallese  Environmental  Protection  Agency  to  train  more  than  20 
people in water quality monitoring in Majuro and Ebeye and has supplied the EPA 
laboratory with test kits. 

EU  development  cooperation  with  Fiji  remained  subject  to  article  96  of  the  Cotonou 
Agreement. After the 2006 military coup, the EU suspended its assistance under the 10th EDF, 
and  no  national  indicative  programme  was  signed.  EDF  cooperation  is  limited  to  a  few  9th 
EDF  programmes  and  activities  financed  from  the  European  Instrument  for  Democracy  & 
Human  Rights  (EIDHR)  and  the  "Non  state  actors  and  local  authorities  in  development" 
thematic budget line of the Development Cooperation Instrument. Fiji’s entitlement to benefit 
from  the  accompanying  measures  for  Sugar  Protocol  countries  financed  under  the  DCI  was 
cancelled  in  2008  and  2009  in  line  with  article  96.  But  concerns  about  the  persistent  and 
significant poverty levels, particularly in rural areas, led the EU to approve a 2010 allocation 
of €8 million for direct support to vulnerable po pulations in the sugar areas. The project will 
be implemented through non-governmental organisations. 

Timor-Leste  –  enhancing  stabilisation  through  sustainable  reintegration  of 
internally displaced persons  

In  2009,  as  the  Timor-Leste  government  closed  its  camps  for  internally  displaced 
persons,  it  became  clear  that  many  root  causes  of  the  2006  crisis  were  not  being 
addressed  at  a  community  level.  Although  the  immediate  danger  was  past,  most 
factors  of  instability  –  land  disputes,  youth  engagement,  demographic  shifts, 
population  pressures,  conflict  mediation  –  remained,  with  little  healthy  discussion 
about  them  in  Timorese  society.  Funded  by  the  EU  Instrument  for  Stability  and 
implemented by the International Organisation for Migration, a project was set up to 
produce  and  broadcast  an  educational  soap  opera  to  help  promote  this  societal 
dialogue. For maximum impact it was designed for a wide popular audience. The aim 
was to  create  a  show  with high production standards,  engaging characters, exciting 
stories and which reflects the joys, humour and challenges of modern life in Timor-
Leste.  

To  reach  out  to  its  largest  demographic  group,  Timor-Leste's  first  soap  opera  Suku 
Hali,  was  given  a  youth  focus.  The  main  story  follows  two  orphaned  country 
brothers  who  migrate  to  the  city  in  search  of  their  future,  but  find  their  new 
neighbourhood in turmoil following the recent return of IDPs. The brothers’ bond is 
further  tested  by  their  inheritance  of  a  mini-van.  For  one  brother  it  symbolises  a 
future business, for the other it is a means to easy money in the present if they sell it. 
How will they negotiate the difference and save their relationship? 

There  are  twenty  30-minute  episodes  of  Suku  Hali,  in  four  series:  IDP  Return  and 
Reintegration,  Elections  and  Democracy,  History  and  Reconciliation,  and 
Alternatives to violence. Since October 2010, Suku Hali was broadcast twice a week 
on  Timor-Leste’s  national  TV  and  received  an  overwhelmingly  positive  audience 
response.  

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2.2.3.5.  Monitoring  

In  2010,  41  ongoing  national  projects  and  12  regional  programmes  representing  a  total  EU 
commitment  of  €214  million  were  monitored  in   the  Pacific  region.  In  addition,  nine 
completed projects (seven national and two regional) worth a total of €30 million were subject 
to ex-post monitoring. 

Analysis of the results shows that 56% of ongoing national projects performed well or very 
well, 29% of the monitored projects presented some problems, while 15% encountered major 
difficulties.  In  general,  80%  of  projects  monitored  received  very  good  and  good  ratings  for 
relevance and design, 68% for impact and 63% for sustainability.  

According  to  the  monitoring  missions,  relevance  and  design  of  projects  have  considerably 
improved  compared  to  2009,  while  effectiveness  and  impact  fell  slightly.  Some  contraints 
persist  in  terms  of  efficiency  (32%  of  projects  monitored  faced  problems  and  14%  showed 
serious deficiencies in terms of input used and implementation of activities).  

The sector most concerned by external monitoring was social infrastructure and services (with 
25  projects  monitored  for  a  total  budget  of  €112.5  million).  Of  these,  72%  received  good 
marks.  

Twelve  regional  projects  were  monitored,  of  which  nine  were  showing  a  very  good 
performance  or  good  performance,  one  was  performing  with  some  problems  and  two  are 
encountering  major  difficulties.  As  an  example,  one  project  performing  well  is  the  Pacific 
regional  initiative  for  the  delivery  of  basic  education  programme  which  is  considerably 
contributing to the increase of the institutional capacity to plan and implement basic education 
projects  at  regional  level.  In  addition,  two  sector  policy  support  programmes  in  Samoa  and 
New Caledonia worth a total of €50 million were  also assessed. According to the monitors, 
both  of  them  are  showing  a  good  performance.  In  particular,  the  water  sector  support 
programme  for  Samoa  is  showing  how  good  coordination  between  technical  assistance 
experts and political decisions-makers can really make a difference. 

Table 10 Pacific- Very good and good ROM scores per evaluation criteria 2008-2010 

90

80

70

60

50

40

30

20

10

0

2008

2009

2010

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Relevance

Efficiency

Effectiveness

Impact

Sustainability

Table 11 Pacific- Project performance per ODA sector (%) 

g

72.00%

50.00%

50.00%

50.00%

50.00%

20.00%

25.00%

-

-

-

-

-

Social Infrastructure and
Services

Economic Infrastructure
and Services

Production sectors

Multisector -
Crosscutting

Very good performance 
Good performance 
Performing with problems 
Not performing or having major difficulties

2.2.3.6.  Outlook 

The national and regional commitment rates are comparatively high in the Pacific, except for 
Papua  New  Guinea.  Internal  and  external  monitoring  of  projects  confirmed  that  speed  and 
quality  of  implementation  are  generally  good,  albeit  with  variations  between  countries.  The 
relatively good performance by the Pacific ACP countries in terms of quality and quantity has 
resulted  in  several  of  them  being  identified  for  an  increase  in  their  10th  EDF  national 
allocations. In half of those cases, the increase will be used to top up the existing water and 
sanitation programmes. The other countries with energy efficiency and renewable energy as 
core actions are expected to seek an increase of the existing energy projects. 

A number of Pacific countries have expressed the wish to move or continue moving towards 
budget  support.  To  help  them  meet  the  eligibility  requirements,  the  EU  and  other  donors 
(IMF, Asian Development Bank, Australia and New Zealand) will support actions to improve 
public financial management systems and will review their public expenditure and financial 
accountability.  

2.2.4.  All ACP Programmes 

The EU finances a number of programmes covering potentially all ACP countries through the 
Intra-ACP  envelope  of  the  European  Development  Fund  (€2.7  billion  for  2008-2013).  In 
partnership with the ACP group, the Commission identifies such programmes and implements 
some  of  them.  A  number  are  implemented  in  partnership  with  the  African  Union,  thereby 
advancing some initiatives in the partnerships of the Joint Africa-EU Strategy (JAES).  

The ACP Observatory on Migration  

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On  25-27  October  2010,  the  ACP  Observatory  on  Migration  was  launched  in 
Brussels.  The  occasion  brought  together  more  than  400  representatives  from  ACP 
countries,  European  Union  institutions,  Member  States,  research  institutes,  NGOs, 
and  international  organisations.  Topics  discussed  included  labour  migration, 
migration and development, forced migration and migration and climate change.  

The  ACP  Observatory  on  Migration  has  been  created  by  the  ACP  secretariat  in 
partnership with the Commission, which provides nearly €8 million in funding from 
its migration facility. It seeks to provide policy-makers, civil society and the public at 
large with reliable and harmonised data on intra/inter national and regional migration 
in ACP countries. It will establish a network of research bodies on migration in all 
ACP  regions.  Activities  started  in  12  ACP  pilot  countries:  Angola,  Cameroon,  the 
Democratic Republic of Congo, Haiti, Kenya, Lesotho, Nigeria, Papua New Guinea, 
Senegal, Tanzania, Timor-Leste and Trinidad and Tobago. 

At  the  Tripoli  summit  in  November,  African  and  European  leaders  reconfirmed  support  for 
the  JAES  by  adopting  a  more  focused  second  action  plan.  A  positive  development  is  that 
specific funds (initially €10 million) have been  earmarked for improved delivery of the JAES 
and  its  second  action  plan.  This  meets  some  of  the  shortcomings  identified  during 
implementation of the first plan.  

One of the eight JAES partnerships is the partnership on peace and security, mainly financed 
through the African Peace Facility (APF). A total of €300 million is available for the period 
2009-2011. The APF currently supports three capacity-building programmes to strengthen the 
African peace and security architecture from a budget of €37 million. The first set of capacity-
building  programmes  has  been  extended  until  April  2011  and  an  additional  €65  million  is 
earmarked to consolidate what has been accomplished since 2004.  

The APF also provides funding for African-led peace support operations. In 2010, the African 
Union  Mission  to  Somalia  (AMISOM)  received  an  additional  allocation  of  €73  million, 
bringing total EU support to €142 million, to conti nue to maintain security in Mogadishu and 
to support the transitional federal government in its efforts to stabilise the country. A further 
€15 million was allocated to the  multinational force deployed in the Central African Republic 
to consolidate peace and security, bringing the total EU contribution to this operation to €68.5 
million. The APF also provided €15 million to support the early response mechanism which 
finances preparatory stages of peace support operations or initial steps of mediation processes. 
It currently supports such processes in Madagascar, Guinea, Sudan, Niger and Guinea-Bissau.  

Since  2008,  the  EU  has  been  financing  under  the  9th  EDF  an  African  Union  (AU)  support 
programme  of  €55  million  to  strengthen  the  over all  institutional  capacity  of  the  AU  and  to 
deepen the Africa-EU partnership. 

Another  of  the  eight  JAES  partnership  covers  trade,  regional  integration  and  infrastructure. 
The  EU-Africa  Infrastructure  Trust  Fund  is  an  innovative  financial  instrument  launched  in 
2007. It encourages the financing of cross-border and regional infrastructure projects in Sub-
Saharan  Africa  in  the  energy,  water,  transport  and  telecommunications  sectors,  which 
facilitate interconnectivity and regional integration. The trust fund combines grants from the 
Commission  and  EU  Member  States  with  long-term  loan  finance  from  the  European 
Investment  Bank,  EU  development  financiers  and,  since  November  2010,  the  African 
Development  Bank.  In  2010,  following  additional  contributions  pledged  by  EU  Member 

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ance  €5  million),  the  overall  trust  fund 
States  (UK  €10  million,  Austria  €1  million,  Fr
endowment  reached  €388.7  million.  The  fund’s  executive  committee  approved  17  grant 
operations in 2010 worth €110.6 million, bringing th e number of approved grant operations to 
36 and the total commitments to € 209 million. These are combined with €970 million in loans 
from  the  trust  fund  financiers  to  finance  projects  whose  total  financing  now  exceeds  €2.5 
billion. The latest figures bring the total leverage factor of funds to about 12:1.  

The second ACP-EU Water Facility, which was endowed with €200 million in 2009, issued 
two  calls  for  proposals  in  2010.  Under  the  call  entitled  "Water,  sanitation  and  hygiene 
promotion  for  the  Millennium  Development  Goals",  55  projects  were  selected  with  a  total 
value of €109.5 million. They will provide access to  safe water to about 3.3 million people, of 
whom  2.8  million  will  also  benefit  from  improved  basic  sanitation.  Some  seven  million 
people  will  benefit  from  hygiene  promotion  programmes.  Results  of  the  second  call, 
Partnerships  for  capacity  development  in  the  ACP  water  and  sanitation  sector,  published  in 
February 2010, will be known during the first half of 2011.  

Most  of  the  75  actions  financed  under  the  first  ACP-EU  energy  facility  are  already  being 
implemented in rural and peri-urban areas of the ACP region, with a projected impact on 7.5 
million  people.  In  2009,  a  second  energy  facility  was  granted  €200  million  with  the  aim  of 
continuing  action  against  poverty  by  providing  energy  services  and  promoting  the  use  of 
renewable  energies  in  the  fight  against  climate  change.  A  first  call  for  proposals  (for  €100 
million)  led  to  the  selection  of  65  projects  concentrating  on  improved  access  to  energy 
services,  energy  management  and  governance,  while  focusing  on  renewable  energies  and 
efficiency.  

The  Commission  has  also  launched  an  innovative  blending  instrument  under  the  energy 
facility. An amount of €40 million, to be blen ded with funding from Member States and the 
EIB,  is  now  available  to  co-finance  medium-size  projects  aiming  at  increasing  access  to 
sustainable  energy  services  in  ACP  rural  and  peri-urban  areas.  This  instrument,  which 
involves blending finance and support to the private sector, is expected to be a powerful tool 
in  terms  of  achieving  synergies,  leverage  and  ultimately  impact.  A  similar  blending 
instrument will be launched in 2011 under the water facility.  

Energy Facility – Steam turbine installation at Charter Sawmill, Zimbabwe 

The  aim  of  this  project  funded  under  the  first  energy  facility  was  to  provide 
sustainable electricity to 30 000 people in the communities surrounding a sawmill in 
the mountains of the Chimanimani region. The project consisted in the purchase and 
installation  of  a  suitable  steam-driven  generator  to  run  on  heat  from  the  existing 
boilers  at  Charter  Sawmill.  The  heat  source  for  the  boilers  is  waste  wood  and 
sawdust that is sustainably produced within the sawmill itself.  

The  power  generation  facility  will  be  able  to  operate  as  long  as  waste  sawdust  is 
produced  at  Charter  Sawmill,  which  has  been  operating  for  over  50  years.  This 
forestry  business  is  sustainable,  and  certified  by  the  Forest  Stewardship  Council  – 
FSC  (an  environmental  standard).  It  should  continue  to  produce  waste  sawdust  for 
use as fuel for a power plant into the future on a renewable basis. The sawmill has 
already planted young seedlings to be cut down in 25 years time, helping to ensure 
the long-term benefits of the scheme. 

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The 2010 annual action programme for intra-ACP cooperation under the 10th EDF, benefiting 
all ACP States, was approved in December 2010. It consisted of a package of 13 programmes 
amounting  to  a  total  of  €445.3  million  in  the  fiel ds  of  health,  climate  change  (environment 
and  disaster  risk  reduction),  education  and  culture,  trade  and  private  sector  development, 
agriculture and rural development and sanitary services. The package includes a €150 million 
contribution to the Global Fund to fight AIDS, tuberculosis and malaria and €20 million for 
increasing  access  to  new  and  under-used  vaccines  in  least  developed  ACP  countries.  In  the 
education  sector,  €20  million  will  be  allocate d  to  the  ACP-EU  cooperation  programme  in 
higher education and €40 million to the intra-ACP  academic mobility schemes. In the field of 
climate change, the EU contributes €60 million to  the ACP-EU natural disaster risk reduction 
programme,  with  €20  million  to  biodiversity  a nd  protected  areas  management  (BIOPAMA) 
and  €10  million  for  climate-smart  land  a nd  water  management.  The  EU-ACP  support 
programme  for  the  cultural  sector  and  the  "Reinforcing  Veterinary  governance  in  Africa" 
programme each received €30 million.  

Eradication of Rinderpest in Africa, a devastating livestock disease  

Almost 50 years of continued collaboration between the EU and the African Union 
Interafrican  Bureau  for  Animal  Resources  (AU-IBAR)  to  eradicate  Rinderpest,  one 
of the major transboundary animal diseases affecting Africa, achieved its ultimate goal. 
The official declaration of global freedom from Rinderpest is foreseen for 2011. The 
EU  has  been  a  major  contributor  to  the  eradication  of  the  disease  in  Africa  with 
contributions of more than €203 million since the 1960s.  

The  programme  "Reinforcing  veterinary  governance  in  Africa"  (€30  million), 
adopted  in  2010,  builds  on  the  success  of  this  long-term  partnership.  It  aims  at 
further strengthening African veterinary services as improvements in animal health in 
Africa  are  still  needed  to  boost  livestock  development,  and  in  turn  increase  food 
security and trade opportunities.  

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Table 12 EDF - Breakdown by sector of external aid financed on the European Development Fund 
(EDF) managed by EuropeAid in 2010

Commitments in € million

125 (5%)

458 (17% )

229 (9%)

259 (10%)

1046 (39%)

529 (20%)

Disbursements in € millio n
239 (8%)

840 (27%)

876 (28%)

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

236 (8%)

290 (9%)

653 (21%)

Others - including emergency
assistance, reconstruction relief

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

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Table 13 EDF - Regional breakdown of external aid financed on the European 
Development Fund (EDF) managed by EuropeAid in 2010

Africa

Caribbean

Pacific

Overseas Countries & Territories

ACP Unallocated

Total

Commitments in € 
million

Disbursements in 
€ million

1 749 

2 480 

257 

131 

-

509 

303 

86 

17 

316 

2 646 

3 202 

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

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Table 14 EDF - General and sector budget support per country

Commitments in € million

Country

Antigua and 
Barbuda

GBS / 
SBS

Sector

Decription

Total

GBS General budget support

Vulnerability Flex 2010 in Antigua and Barbuda 

         9.00    

Benin

GBS General budget support

Botswana

SBS

Education policy and 
administrative management

Burkina Faso GBS General budget support

Burkina Faso GBS General budget support

Support to the poverty reduction and growth 
strategy 
Human resource development sector policy 
support programme   
MDG Contract: Support to the poverty reduction 
and growth strategy 
MDG Contract: Support to the poverty reduction 
and growth strategy 

Burundi

GBS General budget support

Economic recovery

Cape Vert

GBS General budget support

Support to the poverty reduction and growth 
strategy 

       13.00    

       10.50    

       14.00    

         9.42    

       14.27    

         9.00    

GBS General budget support

ASERCA II Support to economic stabilisation 

       13.00    

GBS General budget support

Dominica 

GBS General budget support

SBS

Business support services and 
institutions

VFLEX -  Mitigation of the effects of the economic 
and financial crisis
Private sector and growth development 
programme 

       50.00    

         5.27    

Competitiveness Sector Budget Support

       22.90    

GBS General budget support

General Budget support to fight against poverty

       61.00    

SBS

Education policy and 
administrative management

Deuxieme phase apui budgetaire sectoriel 
Education

Ghana

GBS General budget support

MDG CONTRACT (MDG-C)

Grenada

GBS General budget support

Haiti

Haiti

GBS General budget support

GBS General budget support

Jamaica

GBS General budget support

Lesotho

SBS

Water resources policy and 
administrative management

Poverty reduction through private sector 
developement employment and growth
Programme d'appui budgétaire général en appui 
au PARDH et au DSNCRP
Programme d'appui budgétaire général en appui 
au PARDH et au DSNCRP
Debt reduction and growth enhancement 
programme 
Water and sanitation sector policy support 
programme

Lesotho

GBS General budget support

Poverty reduction

       15.33    

         9.00    

         3.50    

       21.00    

       26.00    

       17.00    

       32.00    

       21.00    

Central African 
Rep.
Congo 
(Democratic 

Dominican 
Republic
Dominican 
Republic
Dominican 
Republic

Liberia

Malawi

GBS General budget support

Budget Support for macroeconomic stabilisation 

       12.50    

SBS

Transport policy and 
administrative management

Road transport sector policy support programme

       70.00    

Malawi

GBS General budget support

Poverty reduction 

Mozambique

GBS General budget support

MDG CONTRACT 1 

       19.00    

       11.67    

Mozambique

SBS Road transport

Road sector budget support 2010-2013

       22.50    

Namibia

Namibia

SBS

SBS

Basic drinking water supply 
and basic sanitation
Education policy and 
administrative management

Rwanda

SBS Rural development

Support to Namibian water supply and sanitation 
sector programme 

       18.00    

Education sector policy support programme 

       42.15    

Sector budget support social protection and 
community development

       20.00    

Senegal

GBS General budget support

Support to the poverty reduction strategy

       11.80    

Sierra Leone

GBS General budget support

GENERAL BUDGET SUPPORT (MDBS)

       10.00    

Solomon 
Islands

Togo

GBS General budget support

Solomon Islands economic recovery assistance 
programme

GBS General budget support

Support to poverty reduction

Tonga

GBS General budget support

V-FLEX Tonga

Trinidad and 
Tobago

SBS

Public sector policy and 
administrative management

Support to enabling competitive business in 
Trinidad and Tobago

       15.20    

       12.00    

         5.50    

       16.34     

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Tuvalu

Western 
Samoa
Western 
Samoa

Grand Total

GBS General budget support

Tuvalu V-Flex 

SBS

SBS

Water resources policy and 
administrative management
Water resources policy and 
administrative management

Water and sanitation sector policy support 
programme
Water and sanitation sector policy support 
programme

         1.50    

         1.42    

         5.50    

     671.27    

GBS : General budget support
SBS : Sector budget support

2.2.5.  Overseas Countries and Territories (OCTs)  

2.2.5.1.  Introduction 

In  accordance  with  part  four  of  the  EU  Treaty,  the  OCTs  are  closely  associated  with  the 
European Union. The purpose of this association "shall be to promote the economic and social 
development of the countries and territories and to establish close economic relations between 
them and the Union as a whole". 

The  original  list  of  OCTs  included  countries  and  territories  which  have  since  become 
independent  sovereign  countries  in  Africa,  the  Caribbean  and  the  Pacific.  Consequently,  a 
parallel  was  established  between  the  association  linking  the  OCTs  to  the  EU  and  the 
relationship between the ACP countries and the EU. 

Nevertheless since 2003, the OCTs and the four member states with which they have special 
links have been calling for better recognition of the OCTs’ specific status and have suggested 
building  a  new  relationship  with  the  OCTs.  An  overall  review  of  relations  between  the  EU 
and the OCTs was proposed, including a possible substantial revision of the detailed rules and 
procedures governing the OCT-EU association. 

In 2009 the Commission published a Communication56 suggesting more focused cooperation, 
concentrating  on  issues  of  mutual  interest  and  narrowing  the  scope  of  cooperation 
accordingly. 

Three central objectives have been identified: (i) to enhance the competitiveness of the OCTs, 
(ii)  to  strengthen  their  resilience  and  reduce  their  vulnerability  and  (iii)  to  promote 
cooperation between OCTs and their regional, European and international partners.  

The Communication provides a guide for the further work on replacing the current Overseas 
Association Decision when it expires in 2013. 

Numerous issues are involved including: regional integration, the principal challenges and the 
opportunities of each OCT, identification of their potential, their level of competitiveness, and 
possible  adaptation  of  the  rules  of  origin,  and  possible  financing  mechanisms.  These  issues 
will be examined in the impact assessment exercise the Commission will carry out prior to the 
adoption of its legislative proposals – post 2013 – concerning the OCTs. 

During 2010, the Commission held several meetings with the OCTs and their related Member 
States  and  pursued  political  dialogue  on  the  modernisation  of  the  association.  The 

56 

COM(2009)623 final, 6.11.2009 

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Commission  also  undertook  a  series  of  technical  initiatives  in  preparation  of  its  legislative 
proposals  to  revise  the  Overseas  Association  Decision.  The  Commission  also  organised  a 
workshop on trade and regional integration, four trilateral meetings with OCTs and Member 
States and two partnership working parties on trade and environmental issues. 

Cooperation  between  the  EU  and  the  OCTs  is  implemented  via  the  EDF.  In  the  current 
programming  period  2008-2013,  OCTs  will  have  a  budget  of  €286  million.  The  territorial 
allocations  take  the  form,  mainly  of  budgetary  support  with  a  regional  allocation  of  €40 
million.  Programming  is  done  via  a  single  document  composed  of  five  sub-programmes 
(Atlantic,  Indian  Ocean,  Pacific,  Caribbean,  Multi-OCT  projects).  All  sub-programmes  are 
expected to be submitted by the end of 2011.  

2.2.5.2.  Implementation and results 

Atlantic OCTs 

EU  cooperation  with  Greenland  continued  in  2010  to  support  the  education  sector  with 
disbursement  of  €26.3  million  and  a  new  commi tment  of  €27.8  million.  It  has  helped  to 
increase student intake at all post-elementary education and to provide vocational training for 
unskilled workers and to support the government's education sector reforms.  

For the other Atlantic OCTs – St Pierre and Miquelon, Saint Helena, Ascension and Tristan 
da  Cunha,  and  the  Falkland  Islands  –  the  implementation  of  the  9th  EDF  budget  support 
programmes  came  to  end  in  2010.  The  implementation  of  budget  support  programmes  is 
scheduled  to  begin  during  2011,  with  a  focus  on  economic,  infrastructure  and  trade 
development.  

Pacific & Indian Ocean OCTs 

The budget support programmes in vocational training under the 9th EDF came to an end in 
New  Caledonia,  whereas  budget  support  to  Pitcairn  started.  Project  implementation 
progressed  in  the  other  OCTs:  water  and  sanitation  for  French  Polynesia,  construction  of  a 
wharf in Wallis & Futuna, and management of rain water in Mayotte.  

The  10th  EDF  programming  has  advanced  with  New  Caledonia  where  the  sector  budget 
support  for  vocational  training  should  be  decided  in  early  2011  and  start  soon  after.  In  the 
other  OCTs,  projects  identified  include:  the  construction  of  another  wharf  in  Wallis  and 
Futuna, and in French Polynesia a water and sanitation project for the city of Papeete. The EU 
will  also  help  these  two  territories  to  develop  their  strategies  in  given  sectors.  Pitcairn  and 
Mayotte are in the process of preparing budget support programmes.  

A project to help Wallis and Futuna, to cope with the consequences of Hurricane Tomas in 
2010, has been prepared in 2010 (B envelope for OCTs).  

The regional programme TEP vertes in three Pacific OCTs started its last phase in 2010. Its 
aim is to create synergies in renewable energy. The 10th EDF regional allocation is to finance 
a Pacific environmental project which will enhance regional integration not only among the 
four  OCTs  but  also  with  ACP  countries  of  the  region  (€12  million).  In  the  Indian  Ocean 
(Mayotte and Iles Eparses), the allocation will support the sustainable management of natural 
areas (€3 million).  

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Caribbean OCTs 

In  the  former  Netherlands  Antilles,  the  Commission  finances  the  "Bonaire  sewerage  and 
sanitation  programme"  and  the  "Urban  infrastructure  programme"  on  the  five  islands. 
Contracts were awarded for both programmes in 2010. Budget support ended in Anguilla and 
progressed in Montserrat.  

Budget  support  programmes  have  been  developed  for  Anguilla,  Aruba  and  Montserrat.  For 
the  Turks  and  Caicos  Islands,  a  project  has  been  identified  including  further  technical 
assistance  for  the  public  finance  management  improvement  programme,  support  for  the 
ministry  of  works  and  assistance  to  reconstruction  following  hurricane  damage.  On  10 
October  2010,  the  constitutional  reforms  of  the  Netherlands  Antilles  were  completed.  As  a 
result,  Curaçao  and  St.  Maarten  became  separate  autonomous  countries  (besides  Aruba  and 
the Netherlands) within the Kingdom, while Bonaire, Saba and St. Eustatius became part of 
the Netherlands: this impacted the preparation of the 10th EDF in all five islands.  

Within  the  Caribbean  region,  all  seven  OCT's continued to  benefit  from  the  regional  risk 
reduction  initiative  which  provides  spatial  data  infrastructures,  and  best  practises  to  support 
comprehensive disaster management. The seven OCTs also progressed in the preparation of 
the 10th EDF regional programme in support of SMEs, which should be adopted in 2011.  

The Turks and Caicos Islands received an allocation of €4.3 million (from the B-reserve) for 
the OCT's for the reconstruction programme after Hurricane Ike and Tropical Storm Hanna. 
Some 300 houses will be repaired and 50 houses rebuilt for low-income households. 

2.3. 

Asia and Central Asia 

2.3.1.  Asia 

2.3.1.1.  Introduction  

The  economic  and  political  emergence  of  Asian  countries  is  producing  dramatic  changes, 
creating the need for a new balance in international relations. This represents a real challenge 
for the European Union. EU cooperation with Asian countries seeks on the one hand to help 
promote poverty reduction, sustainable development, and social inclusion while on the other 
to enhance its economic, trade and political cooperation with the region.  

This  makes  for  a  complex  overall  relationship  with  Asia.  For  this  reason,  the  EU  has  been 
fostering dialogue and cooperation with all Asian partners and numerous sub-regional groups 
like  the  Asia-Europe  Meeting  (ASEM),  the  Association  of  South-East  Asian  Nations 
(ASEAN), the South Asia Association for Regional Cooperation (SAARC) and the ASEAN 
Regional  Forum  (ARF).  Bilaterally,  the  EU  has  privileged  partnership  and  cooperation 
agreements  and  free  trade  agreements,  like  those  already  signed  or  under  negotiation  with 
Indonesia, the Philippines, Vietnam and Mongolia (PCAs) or India (FTA). 

To strengthen political and economic relations with Asia, an ASEM summit was held in 2010 
as well as EU-ASEAN ministerial meetings. The eighth ASEM summit in Brussels in October 
agreed that Asia-Europe cooperation is wider than aid, and should be a comprehensive, equal, 
and  mutually  beneficial  partnership  responding  to  different  circumstances  and  needs.  The 
partnership  should  include  exchanges  between  state  and  civil  society  organisations,  local 
operators, while development finance should be a blend of grants and loans. 

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ASEM Dialogue Facility – Asia & Europe work together on global challenges 

The Asia-Europe Meeting has been the official platform for dialogue between Asia 
and  Europe  since  1996.  As  an  ASEM  coordinator,  the  European  Commission 
underpins  the  process.  The  ASEM  Dialogue  Facility  is  a  Commission  instrument 
created  in  2007  to  support  the  ASEM  dialogue  in  priority  areas:  economic  and 
financial matters, employment and social policy, environment, cultural diversity and 
intercultural  dialogue,  development  cooperation, 
technology  and 
maritime affairs. 

information 

The  facility  (with  a  €3  million  budget  fo r  2008-2010),  promotes  exchanges  among 
policymakers  in  Asia  and  Europe,  facilitates  regional  cooperation  among  ASEM 
countries  and  enhances  policy  and  know-how  transfer  to  less  developed  Asian 
countries.  

Bilateral  summits  with  China  (6  October)  and  India  (10  December)  were  also  held.  Other 
bilateral  meetings  took  place.  The  EU  and  China  held  their  3rd  High-Level  Economic  and 
Trade  Dialogue  (HED)  in  Beijing  (21  December).  The  main  themes  were  climate  change, 
trade and investments, and cultural cooperation. An EU-India ministerial meeting (Delhi, 22 
the  second  India-EU  Forum  on  effective 
themes,  while 
June)  addressed  similar 
multilateralism took place in October 2010.  

Asia’s impressive economic vitality and steady global integration is one side of the coin. Asia 
comprises high-income industrialised partners and fast-growing emerging economies. But it is 
also  home  to  the  largest  concentrations  in  the  world  of  those  living  in  absolute  poverty. 
Although  one  of  Asia’s  greatest  MDG  successes  is  on  poverty  reduction,  nearly  one  billion 
people still live on less than $1.25 a day (2008). 

Development cooperation, therefore, remains high on the EU's agenda with Asia. The EU has 
earmarked €5.2 billion for Asia for the current financing period 2007-2013. In the first phase 
from 2007 to 2010, the EU committed around €2.7  billion which went to programmes agreed 
with  the  beneficiary  countries.  As  planned,  18  annual  action  programmes  –  bilateral  and 
regional – were adopted in 2010. 

As 2010 marked half-way in the current programming period, several evaluations of ongoing 
or  completed  programmes  and  projects  took  place.  The  mid-term  review  of  the  19  strategy 
documents for Asian countries in accordance with article 19 of the DCI has been completed. 
This exercise showed the relevance of EU action during the first phase. It also enabled the EU 
to  adjust  strategies  for  the  second  implementation  period  and  to  adopt  a  multi-annual 
indicative programme for 2011-2013, taking account of the lessons learned and best practices. 
The  programme  also  reflects  EU  priorities:  aid  effectiveness,  strong  emphasis  in  pursuing 
MDGs,  supporting  reforms  driven  by  the  beneficiary  countries,  and  the  division  of  labour 
with other donors. 

2.3.1.2.  Aid effectiveness and donor coordination 

During  2010,  the  EU  further  strengthened  its  commitment  to  aid  effectiveness.  It  strongly 
supported  donor  coordination  mechanisms  in  Asia  which  have  been  particularly  relevant  in 
Bangladesh  and  Vietnam.  The  EU  has  promoted  the  division  of  labour,  notably  in  the 
programming  phase,  but  also  in  the  implementing  phase  through  transfer  agreements  and 
delegated cooperation between Member States and the European Commission. 

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EU  cooperation  increasingly  uses  country  systems  in  a  move  from  project  to  sector  policy 
approach.  This  permits  the  funding  of  bigger  assistance  programmes  through  sector  policy 
support programmes or – wherever possible – budget support combined with the enhancement 
of  public  finance  management  by  beneficiaries.  This  approach,  which  reinforces  partner 
country  ownership,  also  reduces  the  number  of  small  projects  (<€10  million)  and  improves 
effectiveness, as management efforts are more focused instead of being spread thinly across 
too many areas. 

General budget support and sector budget support have proved to be particularly effective in 
enhancing  policy  dialogue  with  beneficiary  countries  and  in  allowing  the  EU  to  work  more 
strategically. They secure ownership by beneficiary countries, insuring better linkage between 
the broader political agenda and the sector policy dialogue held around the programme. They 
reduce  the  need  for  the  creation  of  separate  individual  project  implementation  units.  Along 
with budget support, the EU regularly provides support for capacity building in public finance 
management. 

Burma/Myanmar – Three Diseases Fund  

Communicable  diseases  are  a  major  health  concern  in  Burma/Myanmar,  which 
suffers from a public health emergency in relation to HIV/AIDS, tuberculoosis (TB) 
and  malaria.  Access  to  affordable  quality  health  services  is  a  key  issue  and  many 
vulnerable communities, especially in border and conflict areas, are forced to resort 
to sub-standard treatment.  

The  Three  Diseases  Fund  (3DF)  allocates  grants  to  programmes  targeting 
populations most at risk and providing them with access to essential medicines and 
related services. With a total budget of €92 million, the programme was set up by a 
consortium  of  seven  donors:  the  EU  (which  is  contributing  €18  million),  the 
Netherlands,  Norway,  Sweden,  the  United  Kingdom,  Australia  and  Denmark.  The 
fund manager is the UN Office for Project Services (UNOPS).  

So far, 3DF has supported 27 HIV projects, eight TB projects, nine malaria projects 
and  4  integrated  projects.  As  a  result,  about  13  000  people  received  antiretroviral 
treatment.  Prevention  programmes  contacted  500  000  most-at-risk  people  at  least 
once.  Around  120,000  TB  positive-smear  cases  were  detected,  and  approximately 
100 000 were successfully treated. Over 1.1 million confirmed and probable malaria 
cases were treated. 

In  three  years  of  implementation,  3DF  made  significant  changes  to  the  lives  of  the 
most vulnerable people in the country.  

2.3.1.3.  Working towards the MDGs  

Asian countries have made big strides forward over the past ten years in terms of economic 
growth  and  poverty  reduction.  This  has  been  accompanied  by  the  rise  of  a  considerable 
middle class, which represents 56% of the population. At the same time, however, economic 
and social inequalities have got worse. Asia  is still home to two thirds of the world’s poor. 
Economic growth can often involve high costs for the environment.  

China, Malaysia, Thailand, and Vietnam have already achieved their 2015 target on poverty 
reduction  (MDG1)  while  Mongolia  and  Sri  Lanka are  well  on  track.  The  number  of  people 

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living  on  less  than  $1.25  a  day,  however,  remains  particularly  high  in  Nepal  (55%), 
Bangladesh  (50%)  and  Lao  PDR  (44%).  Even  countries  which  have  experienced  rapid 
economic  growth  in  recent  years  are  lagging  behind  on  MDG1,  most  notably  Cambodia, 
Mongolia,  and  Pakistan.  This  is  also  the  case  for  India  and  the  Philippines  despite  their 
middle-income country status.  

Asia  as  a  whole  has  made  impressive  progress  towards  other  MDGs,  especially  education 
(MDGs 2 and 3), in stopping the spread of HIV/AIDS and other infectious diseases (MDG6) 
and in halving the proportion of people without access to safe drinking water (MDG7). 

However, a number of countries are off-track for MDG7, while others have serious problems 
in MDGs 4 and 5 (reducing child mortality and improving maternal health). This stems from a 
lack of access to health services for the very poor, but also from cultural and social factors. 

The Development Cooperation Instrument gives particular priority to social sectors. In 2010, 
41%  of  funds  committed  in  2010  went  to  health  and  primary  and  secondary  education.  In 
Asia, EU aid helps to improve primary school completion rates and the quality of education, 
alleviate child hunger and malnutrition, and promote gender equality in secondary and tertiary 
education.  In  the  health  sector,  EU-supported  programmes  sought  to  improve  poor  people’s 
access to health services, reduce infant mortality and improve maternal health. The EU also 
gives  particular  attention  to  environmental  issues  by  contributing  to  the  replenishment  of 
forest  cover,  limiting  illegal  logging,  reducing  CO2  emissions,  promoting  sustainable  use  of 
energy, and access to safe water and sanitation in rural areas. This represented approximately 
12% of EU funds committed in 2010. 

2.3.1.4.  Implementation and results 

In 2010, the DCI’s fourth year, the EU committed €677 million to Asia for policy and reform-
oriented  projects  and  programmes,  many  of  them  through  the  beneficiary  country's 
institutions or in partnership with other donors, including Member States. 

Eradication of extreme poverty and hunger  

The  EU  maintained  its  commitment  to  help  Asian  countries  eradicate  extreme  poverty  and 
hunger  (MDG1)  by  deploying  food  security  programmes  in  Afghanistan,  Bangladesh, 
Burma/Myanmar, Cambodia, Mongolia, North Korea (DPRK) and Lao PDR. It also financed 
rural, social and economic development programmes throughout Asia.  

Afghanistan  –  Fruit  production  improvement  through  training  and  support  to 
growers & networks 

The  improvement  of  fruit  production  is  part  of  a  wider  project,  the  "Perennial 
Horticulture  Development  Programme",  to  alleviate  rural  poverty.  The  aim  is  to 
disseminate knowledge on the best varieties and growing techniques to help develop 
a high-quality export sector within Afghanistan.  

With  a  budget  of  €12  million,  project  centres  have  been  built  where  it  will  be 
possible to store varieties of fruits and nuts, to test and demonstrate modern methods 
of fruit growing, and to train staff from the ministry of agriculture and the farming 
community.  The  project  has  also  completed  the  collection  of  all  the  fruit  and  nut 
varieties in the country. Moreover, the project includes the selection and distribution 

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of clean planting materials, the creation of 22 fruit tree nursery grower associations 
and the provision of services to farmers by several NGOs. 

Support health, combating HIV/AIDS and other diseases  

In 2010 the EU provided additional funds to support the health sector in Afghanistan, China, 
Lao  PDR  and  Vietnam.  In  Vietnam,  the  "Health  Sector  Policy  Support  Programme" 
contributes to improving the health of the poorest and most vulnerable (particularly mothers 
and children) through a more effective, efficient and equitable health system. With a budget 
of nearly €40 million, the expected results of  the programme will focus on MDGs 1, 3, 4 and 
5. 

Health  programmes  were  implemented  in  a  number  of  other  Asian  countries.  Substantial 
assistance  was  delivered  to  Afghanistan  where,  despite  the  country's  fragile  situation,  the 
health sector performs relatively well, and to the Philippines. The EU and India have agreed 
on  the  amendment  of  the  sector  budget  support  programme  in  health  that  should  allow  this 
programme,  adopted  in  2008,  to  move  forward.  At  the  regional  level,  the  EU  is  the  largest 
contributor  to  the  Avian  and  Human  Influenza  Facility  and  also  contributes  to  activities  to 
prevent and/or treat emerging infectious diseases. 

Achieve primary and higher education 

The EU has substantially contributed to progresses on universal primary education (MDG2) 
and lower secondary education in Bangladesh, Burma/Myanmar, Cambodia, India, Indonesia, 
Nepal,  and  Pakistan,  wherever  possible  through  sector  support  programmes.  In  Bangladesh, 
the EU launched a €52 million programme to in crease the number of children enrolling and 
completing primary education in formal and non-formal schools, to expand the provision of 
early childhood care and education, and to increase youth and adult literacy. In Indonesia, the 
EU  supports  basic  education  through  sector  budget  support  of  €201  million.  This  joint  aid 
programme with Australia (ESSP) supports Indonesia's strategic education plan 2010-2014 to 
achieve  equitable  access  to  high-quality  basic  education,  and  to  improve  its  quality, 
governance  and  accountability.  In  Cambodia,  the  EU  has  launched  a  large  education  sector 
policy support programme (€31 million in 2011 -2013) to strengthen institutional and human 
resource  capacities  with  the  aim  of  reaching  MDGs  2  and  3  by  2015.  Implementation  of 
ongoing education support programmes in Bangladesh, India and Nepal continued.  

Bangladesh - Strengthening basic education in Chittagong Hill Tracts  

Although Bangladesh has made significant progress towards gender parity in primary 
and  secondary  education  with  rising  enrolment  levels,  the  quality  of  primary 
education remains a problem. The formal primary education system still leaves about 
three  million  of  the  estimated  19  million  primary-school-aged  children  behind. 
Difficulties  are  greatest  in  remote  or  sensitive  areas.  As  a  post-conflict  zone,  the 
Chittagong  Hill  Tracts  is  one  such  area  where  the  net  enrolment  ratio  for  different 
indigenous groups varies between 12% and 61%. 

The Chittagong Hill Tracts Development Facility (CHTDF), which is largely funded 
by the EU, focuses on three areas: advocacy for policy change, access to education 
services  and  raising  education  quality  by  strengthening  the  system  and  promoting 
multi-language schemes. 

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is  fully  operational  in  12  targeted  Upazilas 
With  a  €6.6  million  budget,  the  project 
(sub-districts). Out of a total of 480 schools to be supported, most have already been 
established  by  indigenous  communities  or  the  government.  A  total  of  595  teachers 
are  being  trained  and  over  15  500  children  are  at  present  benefiting  from  the  new 
schools and the improved quality of teaching and learning. Local communities have 
increased  their  involvement  through  the  creation  of  parents'  associations.  Teaching 
and learning materials for pre-primary classes have been developed in six languages 
to supplement the Bengali education curriculum provided by the government.  

Higher  education  and  vocational  training  have  an  important  place  in  EU  development 
cooperation.  The  Erasmus  Mundus  programme  is  achieving  results  in  Asia  in  promoting 
education and research exchange through student scholarships. It contributes to the capacity-
building  of  Asian  higher  education  institutions  and  will,  over  time,  assist  in  modernising 
higher  education  systems  and  institutions.  The  Trans-Eurasia  Information  Network  project 
contributes to research cooperation in Asia and in Europe, by providing high-speed and high 
capacity  internet  links.  By  reducing  the  digital  divide  the  network  enables  scientists  and 
students  throughout  Asia  and  Europe  to  collaborate  on  a  number  of  joint  research  activities 
that are important in helping save and improve lives in areas such as disaster warning, post-
earthquake relief efforts, crop research, tele-medicine, earth observation for forest fires and e-
learning.  This  contributes  to  increased  economic  development,  creating  more  open  societies 
in developing countries, and democracy building. 

Improve governance and the rule of law, development, and poverty reduction 

The EU contributed to the improvement of good governance, respect for human rights and the 
rule  of  law  in  several  Asian  countries:  Afghanistan,  Pakistan,  Bangladesh,  Sri  Lanka, 
Philippines, Nepal, Cambodia and China. A new programme will support the 2011 population 
census in Bangladesh. Following the positive lessons learned from previous projects, the local 
governance  support  programme  has  been  launched  in  Bhutan  to  enhance  democratic 
governance  at  local  level  and  to  empower  local  governments  to  deliver  services  effectively 
and  efficiently.  In  Cambodia,  support  for  public  financial  management  reform  entered  its 
second  phase  and  will  lead  to  a  better  revenue  policy,  budget  formulation  and  execution, 
payment processes, transparency and oversight.  

Measures  to  improve  peace-building  have  been  undertaken  in  the  Philippines  and  Nepal.  A 
new  China-EU  police  training  project  will  improve  basic  policing  skills  and  senior  level 
policy dialogue. The EU has helped to support the electoral process in Afghanistan and to pay 
regular salaries to the national police in order to strengthen law and order in the country. The 
EU  also  continued  its  support  for  justice  reform  in  Afghanistan  and  for  strengthening  sub-
national governance. 

Strengthening poverty reduction through economic development and social cohesion 

The EU is enhancing the capacity of China and India to respect international obligations, and 
helps  develop  export  capacities  in  Bangladesh,  Indonesia,  Lao  PDR,  Pakistan,  Philippines, 
Thailand  and  Vietnam  and,  at  regional  level,  in  ASEAN.  ASEAN  received  support  for 
regional  economic  integration  in  a  number  of  sectors.  In  Vietnam,  EU  trade  assistance 
through the MUTRAP project is now helping the country to honour its WTO commitments. 
Recent  evaluations  have  shown  the  relevance  of  the  project  in  integrating  Vietnam  into  the 
global  system  and  in  supporting  pro-poor  policies.  A  large  project  on  environmental  and 

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socially-responsible  tourism,  approved  in  2010,  will  reinforce  the  capacity  and  quality  of 
policy making, planning and management in the tourism sector. 

Multilateral Trade Assistance Project  

The MUTRAP III programme, launched in 2008 with a budget of €10 million, aims 
to  strengthen  the  capacity  of  the  Ministry  of  Trade  and  Investments  (MOIT)  to 
further develop Vietnam’s trade and economic integration strategy.  

The  programme  focuses  on  key  areas  such  as  Vietnam's  WTO  commitments,  to 
deepen  trade  relations  with  ASEAN  partners,  to  reinforce  fair  competition  in  the 
domestic market and to strengthen consumer protection. The project is also designed 
to  encourage  private  sector  organisations,  business  associations,  universities  and 
research institutions to provide professional insights into the trade-policy formulation 
process.  

A  monitoring  report  in  2009  and  a  recent  mid-term  evaluation  acknowledged  that 
MUTRAP  had  been  particularly  successful  and  relevant  and  that,  “it  had  greatly 
assisted stronger integration of Vietnam into the global trading system”57.  

The  EU  committed  funding  to  new  programmes  for  China  and  Vietnam  in  order  to  raise 
social  standards.  The  EU-China  project  on  "Occupational  health  and  safety  in  high-risk 
sectors" will help develop China's capacity to design an effective strategy based on prevention 
and  the  direct  involvement  of  workers  in  risk  management.  In  Vietnam,  a  €12  million 
programme,  "Raising  living  standards  of  ethnic  minorities",  was  launched  in  2010  to 
contribute to poverty reduction of ethnic communities in mountain areas, underdeveloped in 
comparison with the rest of the country.  

Protecting the environment and promoting clean energy  

The EU has decided further measures to mitigate undesirable effects of economic growth and 
demographic pressures on climate and the environment, via regional programmes (SWITCH58 
and  FLEGT59)  or  through  bilateral  programmes  as  with  China  where  the  EU  promoted  the 
"Environmental  governance"  programme  and  the  creation  of  an  institute  for  clean  and 
renewable energy (ICARE). New 2010 programmes will promote:  

• 

renewable natural resources in Bhutan;  

•  disaster risk management in China and Nepal;  

•  support for renewable energy, clean technologies and energy efficiency in India;  

•  sustainable development policy dialogues in Lao PDR and Malaysia.  

Asia  SWITCH  Programme  -  Promoting  sustainable  consumption  and 
production  

57 
58 
59 

Mid Term Review, p. 47. 
Sustainable Consumption and Production 
FLEGT: Forest Law Enforcement, Governance and Trade. 

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The rate of economic and demographic growth in Asia puts big pressure on natural 
resources. Despite significant improvements, the industrial sector still uses outdated 
technology,  and  is  marked  by  a  lack  of  maintenance,  poor  production  management 
and inefficient use of raw materials. This has caused a rise in greenhouse gas (GHG) 
emissions,  a  severe  loss  of  biodiversity,  deforestation,  desertification,  and  air  and 
water pollution. 

A switch from unsustainable to sustainable patterns of development is required. That 
is why the ASIA-SWITCH programme was launched in 2007 with a budget of €90 
million to promote both sustainable production and consumption, and to contribute to 
poverty  reduction  and  a  better  quality  of  life  (MDGs  1  and  7).  To  achieve  this 
objective,  the  programme  works  simultaneously  with  producers  and  consumers,  at 
the  level  of  policy-making  and  dissemination  of  best  practices,  promoting  the 
adoption of the most successful methodologies. 

So far, SWITCH has funded 30 projects in 13 Asian countries with good results. For 
instance, in China electric-powered systems and equipment account for about 60% of 
total  electricity  consumption,  but  their  energy-efficiency  is  10%-30%  below 
international  best  practice.  SWITCH  launched  an  ad-hoc  project  in  2007  to  raise 
efficiency  standards.  In  three  years,  around  400  major  industrial  users  of  electric-
powered  systems  have 
In  addition,  300 
manufacturers take part in workshops on international standards and how to comply 
with  them.  As  a result of  the project, an  average energy  saving of around 25%  per 
system was achieved, making for a total of reduction of around one million tonnes of 
CO2 emissions per year. 

the  energy-efficiency. 

improved 

In  Nepal,  the  production  of  paper  using  lokta,  a  local  raw  material,  is  a  traditional 
SME  activity  for  people  living  at  high  altitude.  It  also  has  significant  economic 
potential given that 90% of handmade paper and paper-products made in Nepal are 
exported.  But  inefficient  resource  extraction  and  production  processes,  prevent 
farmers  and  entrepreneurs  from  exploiting  the  full  economic  potential.  Thanks  to 
SWITCH,  1  195  lokta  cutters  have  been  trained  on  lokta  cutting  and  forest 
management, and 727 SMEs were trained on more efficient production methods. In 
addition, 30 entrepreneurs have been trained to use waste water to clean up a polluted 
environment.  

Given these positive results, SWITCH received funding of €62 million for the period 
2011-2013  to  encourage  and  support  Asian  SMEs  towards  better  use  of  resources 
and more sustainable development.  

Through  its  development  cooperation  activities,  the  EU  has  helped  Asian  countries  move 
towards  their  MDG  goals.  Measures  financed  by  the  DCI  in  Asia  contributed  to  alleviate 
extreme  poverty,  improve  health  systems,  foster  universal  primary  education,  and  promote 
use of sustainable sources of energy.  

Some  examples  can  be  given  of  EU's  best  practises  in  2010,  as  highlighted  by  the  ROM 
monitoring.  In  China,  the  project  "Improving  environmental  and  safety  performance  of  the 
electrical and electronics industry" has stood out as best practice of high efficiency, thanks to 
a good internal monitoring and efficient partnership and cooperation. Others include the Food 
Security action for extremely poor people in Bangladesh, health support in Burma/Myanmar 

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for  HIV/AIDS  prevention  and  care  among  sex  workers,  the  provision  of  basic  services  for 
convicted criminals in Afghanistanamong and the socio-economic empowerment of conflict-
affected communities in northern and eastern Sri Lanka. The table below shows the progress 
for each MDG. 

Asia average scores according to MDG from January to June 2010 

Source: Results-oriented monitoring of projects and programmes financed by the EU. Draft 
Progress Report July 2010 – Scores range from 1 (the lowest) to 4 (the highest) 

Beyond  the  achievement  of  the  MDGs,  the  EU  has  worked  to  improve  governance  and 
respect  for  human  rights  and  the  rule  of  law.  In  Afghanistan,  for  example,  Commission 
assistance helped promote the rule of law, in particular via its financing for the law and order 
trust fund which pays the police, as well as through work on border management and customs 
support.  

The  EU  is  strongly  committed  to  improving  public  finance  management  systems  in  Asia, 
particularly in countries where budget support is provided or envisaged. As shown by recent 
monitoring,  the  PFM  programme  has  helped  to  maintain  macro-economic  stability  through 
continued  fiscal  discipline,  increased  revenue  collection  and  efforts  to  keep  inflation  below 
10%.  Significant  improvements  have  strengthened  the  functioning  of  the  central  treasury, 
thanks  in  part  to  a  new  centralised  tax  and  customs  system  and  inter-ministerial  work  to 
implement a revised chart of accounts and new budget nomenclature. 

2.3.1.5.  Monitoring  

The Results-Oriented Monitoring Report which evaluated the impact of external cooperation 
projects and programmes carried out in 2010 in Asia shows an overall improvement in Asian 
ongoing  projects  (national  and  regional).  Relevance,  in  particular,  improved  between  2008 
and 2010, with the number of projects scoring good/very good rising from 59% to 78%. Other 
criteria also improved (efficiency from 59% in 2009 to 69% in 2010 and effectiveness from 
64%  to  68%).  A  slight  decrease  was  noted  for  sustainability  (from  70%  in  2009  to  69%  in 
2010) while impact remained steady at 78%.  

Table 15 Asia- Very good and good ROM scores per evaluation criteria 2008-2010 

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66%65%68%

64%

59%62%

64%

59%

75%

78%

78%

78%

70%69%

69%68%

72%

69%

90%

80%

70%

60%

50%

40%
30%

20%

10%

0%

2008

2009

2010

Relevance / design

Efficiency

Effectiveness

Impact

Sustainability

Average

Table 16: Asia - Scoring of ODA sector by monitoring criteria 

Improvements  were  registered  among  projects  re-monitored  between  2008  and  2010  for  all 
DAC criteria: relevance from 58% to 69%, efficiency from 53% to 63%, effectiveness from 
63% to 75%, impact from 67% to 84% and sustainability from 67% to 69%. The reasons for 
these improvements can vary but project design and coordination with beneficiaries or other 
donors are particularly important for ensuring success. When these are combined with good 
management, the prospects for success improve significantly. Increased levels of ownership, 
higher  levels  of  flexibility  and  capacity  to  adapt  to  changing  circumstances,  together  with 
participatory  monitoring  and  evaluation  would  appear  to  be  leading  to  improved  aid 
effectiveness. 

2.3.1.6.  Outlook 

The  mid-term  review  of  strategy  showed  that  the  first  phase  of  the  strategies  was  relevant, 
though requiring some minor adjustments. The EU will thus continue to use the DCI, promote 
political  dialogue  and  improve  aid  effectiveness  to  help  Asian  countries  achieve,  in 
partnership  with  the  EU,  poverty  reduction  and  progress  towards  the  MDGs.  Beyond  the 
MDGs,  the  EU  will  strive  to  promote  good  governance,  the  rule  of  law,  environment 
protection,  and  mainstream  gender  issues  in  its  programmes,  so  as  to  achieve  more 
sustainable development. 

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2.3.2.  Central Asia 

2.3.2.1.  Introduction  

The  implementation  of  the  “Strategy  for  a  new  enhanced  partnership  with  Central  Asia” 
adopted  by  the  European  Council  in  June  2007  continued  throughout  2010,  providing  new 
impetus  to  both  regional  and  bilateral  dialogue.  Together  with  partnership  and  cooperation 
agreements, this strategy has strengthened the EU’s political and economic ties with the five 
countries of central Asia: Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan. 
It  has  also  advanced  the  dialogue  on  major  issues  facing  the  region  like  poverty  reduction, 
sustainable development, stability and their integration in the global economy. As part of the 
EU-Central Asia enhanced partnership, several initiatives took place in 2010 such as the first 
cooperation  council  with  Tajikistan  (December),  the  EU-Central  Asia  regional  meeting  of 
foreign ministers (April), the visit of the President of Kazakhstan to Brussels (November) and 
the  visit  of  the  Commissioner  for  Development  to  Uzbekistan  and  Kyrgyzstan  (November). 
The EU Delegations in the Kyrgyz Republic and Tajikistan became fully operational, in line 
with  the  overall  aim  of  enhancing  EU  cooperation  and  political  commitment  to  support 
national reforms and help meet key regional challenges. 

In  2007-2010,  EU  cooperation  sought  to  support  the  reform  agendas  of  central  Asian 
countries. However, Kyrgyzstan experienced serious political disturbances in April 2010 that 
led  to  the  resignation  of  President  Kurmanbek  Bakiyev  and  the  take-over  of  power  by  a 
provisional  government.  In  June,  ethnic  clashes  in  the  south-west  of  Kyrgyzstan  further 
increased  political  fragility.  The  EU,  in  close  coordination  with  the  OSCE,  provided 
assistance  to  restore  stability  and  provided  relief  to  the  affected  population  through  the 
Instrument for Stability.  

Despite  some  cooperation  at  regional  level  to  address  common  challenges,  tensions  over 
sharing  water  resources  and  access  to  energy,  plus  differences  on  environmental  and  trade 
issues have not been resolved. There is however a growing common understanding that closer 
cooperation  on  national  policies  and  better  neighbourly  relations  would  benefit  all  the 
countries in their search for sustainable development.  

The  regional  environmental  programme  for  Central  Asia  (EURECA,  €9.2  million)  is  now 
starting  and  will  gather  all  the  Central  Asian  countries  together  around  such  issues  as 
biodiversity and environmental awareness raising. 

The  EU  experience  in  regional  integration,  political  stability  and  prosperity,  offers  specific 
added  value  to  the  region.  EU  regional  programmes  are  focused  on  the  areas  of  higher 
education,  border  management  and  anti-drugs  policy,  environment,  water  management  and 
private sector development. The second joint Commission-Council progress report on the EU-
Central  Asia  strategy  and  other  reports  highlight  positive  results  at  the  end  of  the  first 
implementation  phase.  EU  action  has  been  relevant  in  education,  health,  poverty  reduction, 
regional  integration,  rule  of  law,  environment  and  water  supply.  The  investment  facility  for 
central Asia (IFCA) was launched in 2010 to support sector policy reforms in energy, climate 
change,  the  environment,  SMEs,  and  social  infrastructure.  A  later  extension  to  transport  is 
also  envisaged.  Following  the  extension  of  the  EIB’s  mandate  to  cover  central  Asia,  EIB 
framework agreements were concluded with Kazakhstan and Tajikistan and negotiations were 
launched with the three other countries. 

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The  energy  sector  will  also  be  supported  via  a  regional  programme  designed  to  increase 
security, reliability and efficiency of energy supplies in Central Asia.  

Much  remains  to  be  done,  notably  to  increase  visibility  and  the  security  aspects  of  the  EU 
strategy. The mid-term review of the EU regional strategy paper for assistance to Central Asia 
(2007-2013)  was  completed  in  2010.  The  process  included  consultations  with  stakeholders 
from the five central Asian countries. It confirmed current priorities for regional and national 
bilateral  assistance.  It  also  agreed  with  central  Asian  partners  on  more  targeted  support  for 
their social and economic transition in line with DCI objectives and article 8 of the Regulation 
for Central Asia. The Commission adopted in April a €321 milli on regional central Asia DCI 
indicative  programme  for  2011-2013,  which  covers  both  regional  and  bilateral  cooperation 
with five countries. Five bilateral and one regional annual action programmes for 2010 were 
approved in the second half of the year. 

2.3.2.2.  Aid effectiveness and donor coordination  

The central Asia regional programme and bilateral cooperation with Kazakhstan, Uzbekistan 
and Turkmenistan remain project-based, but attention is growing for more donor coordination 
and aid effectiveness. 

Donor  coordination  is  improving  across  the  region,  in  part  thanks  to  the  EU-Central  Asia 
Strategy and its implementation mechanisms, and in part as a result of country-level efforts. 
The EU has increased its cooperation with IFIs and international organisations, as well as EU 
member  states  active  in  the  region.  Results  have  been  good  overall  in  terms  of  enhanced 
overall coordination and sharper focus on ways to improve the impact of assistance. Synergies 
have been strengthened, particularly with the EBRD and EIB which resulted in the launch of 
the investment facility for central Asia. 

During  2010,  the  Commission  made  further  efforts  to  foster  donor  coordination  and  the 
implementation of the EU code of conduct on division of labour in central Asia. In 2008, the 
Commission  joined  a  group  of  donors  establishing  a  joint  country  support  strategy  for  the 
Kyrgyz  Republic  and  Tajikistan  in  support  of  their  respective  national  poverty  reduction 
strategies. Donor coordination in Kyrgyz Republic and Tajikistan focused on public finance 
management  issues.  In  2009,  the  EU  joined  a  multi-donor  trust  fund  on  public  finance 
management  in  Kyrgyzstan,  run  by  the  World  Bank,  and  involving  DfID  (UK), 
DECO60(Norway)  and  SIDA  (Sweden).  For  the  coming  2011-2013  period,  budget  support 
assistance  will  be  consolidated  by  appropriate  policy  advice  and  close  monitoring  of  PFM 
progress,  enabling  the  use  of  country  systems  in  accountable  and  transparent  ways,  thereby 
increasing ownership and effective impact.  

2.3.3.  Working towards the MDGs  

The global economic downturn has affected central Asian countries to varying degrees. But 
meeting major challenges in 2010, like public finance constraints and growing unemployment 
and  poverty  could  exacerbate  social  tensions  and  jeopardise  the  momentum  of  reforms. 
Current  assistance  for  rural  and  private  sector  development  and  poverty  reduction  (which 
includes migration issues where relevant) remains as important as ever. So too does the focus 
on improving the rule of law, justice and good governance.  

60 

Development Consulting Services (DECO) was established in Oslo in October 1984 

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Kazakhstan is the most developed of the five central Asian countries. It has already achieved 
the first three MDGs (poverty reduction, access to primary education and gender equality) and 
has consequently adopted more ambitious objectives for those areas (the MDG+ targets). This 
enhanced  version  of  the  MDGs  is  aimed  at  strengthening  and  consolidating  these  early 
achievements and setting a new roadmap for the period 2010-2015.  

The Kyrgyz Republic is also an early achiever of MDG1 and MDG3 targets and it is well on 
track to reach MDG2. But both countries need to deploy greater efforts in fighting HIV/AIDS 
and other infectious diseases (MDG6) and in enhancing environment sustainability (MDG7) 
where they are regressing in many indicators. 

Despite  improvements  in  the  Kyrgyz  Republic  and  Tajikistan  with  regard  to  MDG1  and 
MDG2,  these  countries  remain  among  the  poorest  in  Asia  according  to  the  Human 
Development Index (HDI). But the greatest challenge is for Uzbekistan where the number of 
extremely poor people has risen. It needs to reduce poverty by 2.5 percentage points a year to 
reach  its  target.  Progress  as  regards  HIV/AIDS  prevalence  has  been  made  in  all  countries 
except for Tajikistan. 

All  central  Asia  countries  are  off-track  on  MDG4  (child  mortality),  with  an  under-five 
children mortality average rate of 44 per 1000 and an infant mortality average rate of 38 per 
1000 live births. Country performances for MDG5 (maternal health) are mixed, Tajikistan and 
Kazakhstan  are  advancing  slowly  or  even  regressing.  Others,  such  as  Uzbekistan,  have 
already  attained  or  are  on  track  for  both  of  them.  In  Uzbekistan,  the  "Mother  and  Child" 
programme (see case study) is helping achieving MDGs 4 and 5 as shown by the trend on the 
indicators  for  under-five  mortality  (down  8%  between  2005  and  2009)  and  the  infant 
mortality rate (10% lower in the same period). 

Improvement of mother-and-child health services in Uzbekistan 

The  mother-and-child  health  services  programme  is  a  three-year  project  started  in 
2007  with  an  overall  budget  of  €3.5  million,  in  cooperation  with  UNICEF.  It  is 
aimed  at  improving  the  quality  of  services  for  newborns  and  their  mothers  with  a 
direct emphasis on reducing infant mortality (MDG4) and improving maternal health 
(MDG5). So far the programme has trained more than 13 000 health providers while 
infant mortality rates, still high in the region, are falling. In the neonatal pathology 
unit  of  Samarkand  hospital,  the  mortality  rate  has  dropped  by  more  than  one  third. 
Sixteen  regional  training  centres  have  already  been  renovated  and  re-equipped. 
Targeted  training  on  maternal  care  is  provided  to  key  medical  staff  in  the  eight 
regions  covered  by  the  programme.  A  pool  of  665  national  and  oblast  trainers  has 
been established. Because of these positive results, a second phase of the programme 
(with  an  EU  contribution  of  €6.7  million)   will  start  in  2011.  Phase  II  will  carry 
forward  what  has  already  been  done  in  the  first  phase  and  will  extend  geographic 
coverage to the whole country. 

In  the  MDG  context,  EU  aid  under  the  DCI  contributes  to  the  fight  against  poverty  by 
supporting  living  standards  and  human  capacity  development,  agriculture  reforms  and  pro-
SME, investment and business capacity programmes. Support also goes to improving health 
management  systems,  to  enhance  social  protection  and  improve  education  systems. 
Governance  and  the  rule  of  law  are  particularly  targeted  by  EU  action  supporting  judicial 

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reforms and strengthening public administration and public finance management. Attention is 
also given to environmental issues and the illegal drugs trade. 

2.3.3.1.  Implementation and results  

EU  development  cooperation  with  Central  Asia  comes  under  the  2007  EU  strategy  for  the 
region but only through the financing agreements for annual action programmes, in contrast to 
other Asian countries. The two poorest and most fragile countries, Tajikistan and Kyrgyzstan, 
receive  bilateral  assistance,  with  larger  sector  support  to  help  attain  the  MDGs  whenever 
possible  through  sector  budget  support.  Assistance  to  the  other  three,  energy-rich  countries 
are more often limited to technical cooperation, particularly in Kazakhstan. 

In 2010, the level of EU commitment increased, to €143 million. A strong emphasis was put 
on primary, secondary and higher education, governance, employment and social protection, 
economic transition, and leveraging investments in the priority sectors of energy, environment 
and water.  

The EU committed the 32% of its total 2010 appropriations on social protection. This enabled 
it  to  support  the  Tajik  social  protection  strategy,  implemented  through  budget  support.  It 
includes pensions and social security reforms, labour market and migration, social assistance 
and  services  to  vulnerable  groups.  In  Kyrgyzstan  the  EU  contributed  to  implementing  the 
sector policy support programme on social protection and public finance management, and to 
improving  the  legal  and  institutional  framework  for  social  and  child  protection  reforms.  To 
date,  the  programme  has  progressed  well.  New  programmes  decided  in  2010  will  help 
Kyrgyzstan  to  refocus  its  social  protection  sector.  They  will  also  contribute  to  health  and 
social protection through sector budget support in Tajikistan. 

By the end of 2010, 22 new projects managed by local associations in Uzbekistan started to 
provide a wide range of social services to the most vulnerable population (from legal advice 
to business opportunities for disabled people). 

Kyrgyzstan – Social protection and PFM programme 

The  Kyrgyz  Republic  remains  one  of  the  poorest  countries  in  central  Asia.  This  is 
why social protection has been a focal point of EU support since the late1990s under 
the food security programme and is still on the agenda under the DCI. 

The  sector  policy  support  programme  in  social  protection  and  public  financial 
management  is  a  €27  million  three-year  programme  started  in  2008.  It  supports 
policies through the creation of an efficient social assistance system targeted at poor 
families,  and  the  establishment  of  institutions  to  provide  better  care  for  deprived 
children. One lesson learnt from more than a decade of budget support in the Kyrgyz 
Republic is that using government processes and systems to deliver development aid 
offers a more effective and focused platform for dialogue and cooperation. 

The  recent  review  mission  to  the  Kyrgyz  Republic  (June  2010)  showed  that  the 
social protection and social insurance systems have become more effective and have 
eliminated delays in the payment of pensions and social benefits. All payments are 
made  in  cash.  Because  of  high  inflation,  pensions  are  indexed  on  a  regular  basis. 
Specific  actions  have  been  taken  to  include  childcare  social  protection,  to  improve 
the  targeting  of  benefits,  and  to  establish  effective  decentralised  social  services  to 

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support vulnerable families and children. Progress was made towards establishing the 
legislative and institutional framework for reforms, and in building the institutional 
and  personnel  capacity  to  carry  them  out.  There  is  a  lot  of  popular  support  for 
reforms  to  social  assistance  and  child  protection  promoted  through  the  programme 
and a keen understanding of the issues involved.  

In the health sector the Mother-and-Child project in Uzbekistan is continuing to improve the 
health services delivered to mothers and children, helping the country attain MDGs 4 and 5 
(see  case  study).  Other  projects  in  Kazakhstan  are  helping  the  ministry  of  health  to  provide 
health services, especially at most vulnerable subjects, as children, mothers or people affected 
by infectious diseases. In Tajikistan, the EU is developing a health management information 
system to produce relevant and quality information for health system activities.  

EU  programmes  to  strengthen  primary  and  higher  education  positively  affected  the  whole 
region,  creating  strong  academic  networks  and  increasing  institutional  capacity,  developing 
professional curricula, and improving the quality of learning and teaching methods. In 2010, 
the  EU  agreed  a  programme  to  mainstream  children  with  special  needs  into  the  education 
system  in  Uzbekistan  and  renewed  its  support to  the  mother-and-child  care  improvement  in 
Uzbekistan.  In  Kyrgyzstan,  the  EU  is  providing  technical  assistance  to  the  ministry  of 
education  to  redesign  the  national  education  system.  Another  programme  is  targeting 
professional schools, allowing students to acquire new skills in line with the needs of the local 
job  market.  In  Turkmenistan,  the  EU  is  providing  technical  assistance  to  the  ministry  of 
education  to  modernise  the  education  system  –  with  as  special  focus  on  general  secondary 
education. Here the aim is to introduce innovative methodologies and teaching approaches to 
raise the quality assurance system closer to international standards.  

At the regional level, EU allocated new funding for quality higher education and vocational 
training through the Tempus and Erasmus Mundus programmes. It will also support enhanced 
policy dialogue through the central Asia education platform in the framework of the European 
education initiative for central Asia. 

Governance  represented  29%  of  overall  commitments  for  2010.  The  EU  is  supporting  the 
development  and  modernisation  of  parliament  and  of  the  public  administration  in 
Turkmenistan, together with public sector reform and modernisation in Kazakhstan.  

Other new programmes decided in 2010 will support Turkmenistan's reforms in the field of 
economic  policies,  strategic  planning,  parliamentary  issues,  technical  regulation,  sustainable 
development and the rational use of natural resources. In Uzbekistan, the EU will strengthen 
the  bi-cameral  parliamentary  system  and  networking  by  regional  authorities.  The  EU 
continued  to  implement  ongoing  projects  in  Kyrgyzstan  and  Tajikistan,  assisting  both 
countries to improve public finance management. 

On  the  rule  of  law,  the  implementation  of  the  fifth  phase  of  the  EU’s  flagship  CADAP 
regional programme, supporting anti-drug policies of central Asian countries started in 2010. 
Unlike previous phases, the present phase of CADAP is implemented by a consortium of EU 
Member  States,  bringing  together  the  EU’s  best  expertise.  The  EU  continued  to  implement 
another  flagship  regional  programme  –  BOMCA,  supporting  integrated  border  management 
and  regional  dialogue.  The  EU  will  also  support  wider  dialogue  with  central  Asia  in  the 
framework of the EU-CA rule of law initiative.  

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The  central  Asia  human  rights  reporting  project  is  helping  all  five  republics  to  develop  an 
effective  media  sector.  Information  is  more  widely  shared  through  local  media  systems, 
helping citizens to become more aware of human right issues and thereby raising pressure for 
government  accountability.  Successful  actions  supporting  good  governance  in  Kazakhstan 
include  a  project  to  provide  access  to  justice  for  women  and  a  judiciary  programme.  These 
initiatives,  focused  on  developing  a  solid  legal  framework,  are  promoting  a  favourable 
environment for investments in the country. After the April 2010 political crisis in the Kyrgyz 
Republic, the EU has helped the new interim government to draft a new constitution, hold a 
constitutional referendum and the first elections under the new rules (October 2010).  

In  the  area  of  economic  and  private  sector  development  at  regional  level,  the  EU  promoted 
job  opportunities  provided  by  a  growing  business  and  SME  sector.  Since  2010,  the  SME 
sector  is  further  supported  by  the  central  Asia  invest  programme,  which  supports  capacity-
building  by  business  intermediary  organisations.  This  new  tool  should  become  a  strategic 
instrument  in  providing  assistance  to  key  infrastructures  in  central  Asian  countries,  where 
those  investments  could  not  otherwise  be  made.  The  EU  continued  implementation  of 
bilateral projects, supporting private sector development, particularly in Kazakhstan. 

CAREN – The Central Asia Research and Education Network 

CAREN  began  in  2008  to  increase  access  to  a  high-capacity  internet  network  to 
facilitate information exchange between research and education institutes throughout 
central  Asia.  CAREN  currently  connects  scientists  and  students  in  Kyrgyzstan, 
Tajikistan and Turkmenistan, with Kazakhstan and Uzbekistan waiting to join. The 
network will link over half a million users in more than 500 universities and research 
institutes,  and  provide  access  to  European  and  global  research  communities.  Now 
researchers,  academics  and  students  throughout  the  region  have  access  to  high-
capacity  internet  connections,  offering  the  chance  to  create  new  partnership  with 
their peers in others countries. Thanks to the connection of CAREN to the European 
counterpart system, GÉANT, they can participate in international research. CAREN 
has  a  direct  impact  on  people  living  in  this  earthquake-prone  region,  as  it  allows 
scientists to exchange seismic data from monitoring stations in near-real time. It also 
facilitates  web-  and  computer-based  e-learning,  offering  virtual  classroom 
opportunities  and  digital  collaboration.  In  the  public  health  sector  it  makes 
telemedicine  possible,  where  medical  information  is  transferred  through  interactive 
audiovisual  media  for  consultation  purposes,  or  sometimes  to  carry  out  remote 
medical procedures or examinations. CAREN's budget is €6.3 million of which, 80% 
is financed by the EU and 20% by the beneficiary countries. 

In Tajikistan, the EU contributed to establishing of a single structure for imports and exports. 

The  new  investment  facility  for  central  Asia  provides  regional  and  bilateral  assistance  by 
blending  EU  grants  and  loans  from  European  financing  institutions.  It  is  based  on  the 
successful  implementation  of  the  Neighbourhood  Investment  Facility.  It  will  target  mainly 
environment,  energy,  SME  and  social  infrastructure  investments,  with  a  possible  later 
extension to transport. The 2010 allocation to the facility was €20 million and it is planned to 
add at least another €45 million in 2011-2013. The  current pipeline of grants and loans has 
reached  €500  million,  targeting  mainly  the  ener gy  sector  (renewable  energies  and  energy 
efficiency) and the environment (water and waste water treatment). 

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Other  initiatives  include  the  economic  diversification  programme  in  Kazakhstan  that  is 
helping  to  reduce  its  overdependence  on  the  energy  sector,  by  creating  new  business 
opportunities and  increasing competitiveness.  The programme is  strongly supported  and  co-
financed  by  the  Kazakh  government.  In  Uzbekistan,  the  EU  has  provided  training  and 
exchange programme opportunities for entrepreneurs within European companies, helping to 
build local capacity and strengthen managerial skills in the SME sector. Other projects in the 
region  supported  the  construction  of  a  road  through  an  ethnically  sensitive  region  in 
Kyrgyzstan and contributed to improving agricultural productivity in Kyrgyzstan, Uzbekistan 
and Tajikistan. 

Finally,  the  EU  has  improved  the  water  and  sanitation  sector  in  Kyrgyzstan,  Kazakhstan, 
Tajikistan  and  at  regional  level  within  the  policy  framework  provided  by  the  EU  water 
initiative for eastern Europe, the Caucasus and central Asia. Individual, projects include the 
central Asia water governance project and the upcoming central Asia environment and water 
cooperation  platform.  In  Kazakhstan  the  Ust-Kamenogorsk  Environmental  Remediation 
Project, is pursuing its objective to prevent the contamination by industrial groundwater of the 
drinking water sources in the city of Ust-Kamenogorsk.  

2.3.3.2.  Monitoring  

During 2010, 60 projects were monitored in central Asia, representing a total budget of €89 
million. More  than  half concerned activities related to MDG8 (develop a global partnership 
for  development).  Others  mainly  covered  programmes  related  to  MDG1  (eradicate  extreme 
poverty and hunger). 

Table 17 Central Asia-  Very  good  and good ROM scores  per evaluation  criteria 2008-
2010 

90%

90%

75%

67% 67%

70% 70%69,80%

74%

68%

80%80,40%

64%

62% 62%

55%

58,40%

49%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

2008

2009

2010

Relevance / design

Efficiency

Effectiveness

Impact

Sus tainability

AVERAGE

Table 1861 Central Asia - Scoring of ODA sector by monitoring criteria 

61 

AWP: Annual Work Plan. Source: Result Oriented Monitoring (ROM) Report - first half of 2010. 

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The  average  performance  of  national  projects in  Central  Asia  rose  between  2009  and  2010, 
(from 2.78 to 2.98). This confirms the general tendency towards better performance over the 
years. The percentage of ‘a’ ratings (very good performance) increased from 1% to 5.4%, ‘b’ 
(good  ratings)  remained  at  73%,  ‘c’  (problems)  ratings  fell  from  24%  to  21.6%,  and  ‘d’ 
(serious deficiencies) improved from 1% to 0%.  

The  table  shows  aggregated  data  for  ongoing  and  re-monitored  projects  that  received  "very 
good" (a) or "good" (b) marks. Over the years, the project performance has improved for the 
relevance criterion (from 64% in 2008 to 90% in 2010). Ratings for impact rose from 62% in 
2008  to  90%  in  2010,  while  for  sustainability  they  moved  up  from  49%  to  80%.  Political 
dialogue, accurate project design, involvement of stakeholders, and sound management have 
been key factors in improving overall performance.  

2.3.3.3.  Outlook 

Located at the cross-road between Europe, China, Afghanistan and the  Middle East, and an 
important  supplier  of  energy  resources  its  own  right,  central  Asia  is  of  fundamental 
geostrategic importance to the EU. 

For  the  second  phase  of  the  EU  strategy  in  central  Asia  (2011-2013),  a  total  indicative 
allocation of €321 million has been made covering  regional as well as bilateral cooperation. It 
gives special attention to governance, supporting administrative capacity-building and judicial 
reform  in  Kazakhstan,  Uzbekistan  and  Kyrgyzstan  as  well  as  strengthening  public 
administration and public finance management in Tajikistan. Protecting the environment and 
promoting  sustainable  growth  remain  EU  priorities,  as  in  Tajikistan  where  EU  will  support 
private sector  development in agriculture, and in Uzbekistan where the EU aims to develop 
the economic potential of rural areas. The EU will also promote a bilateral sustainable energy 
development programme in Turkmenistan aimed at reinforcing the legislative framework for 
sustainable  development.  It  will  also  promote  renewable  energy  projects  in  all  five  central 
Asian countries via a regional operation worth €6 million. 

In  Kyrgyzstan  and  Tajikistan,  the  region’s  two  poorest  and  donor-dependent  countries,  EU 
assistance  will  continue  to  focus  on  poverty  alleviation  and  support  for  social  protection 
reform.  As  both  countries  have  good  absorption  capacity  and  a  proactive  attitude  to 
cooperation, the EU is also considering expanding the use of budget support to education in 
Kyrgyzstan if eligibility criteria are met. In Tajikistan, the EU will continue to support health 
sector reform.  

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In  Uzbekistan,  EU  assistance  has  been  more  limited.  But  EU  cooperation  with  the 
government is improving and opportunities are widely appreciated at local level. 

Kazakhstan and Turkmenistan are respectively an upper middle-income and a middle-income 
country. Both have strategic importance for Europe in terms of energy supplies. Kazakhstan 
offers the opportunity for know-how transfer and advanced technical cooperation on reform 
and modernisation; There is high potential for cooperation on issues of common interest (like 
energy) as well as twinning-like public partnerships with institutions in the EU. 

Regional  cooperation  is  of  a  strategic  importance  for  central  Asian  countries  which  face 
common  challenges  requiring  a  regional  approach.  New  EU  funding  for  2011-2013  focuses 
on  three  main  sectors:  sustainable  regional  development  (IFCA  &  renewable  energies 
programme),  higher  education  (Tempus,  Erasmus  Mundus,  CAEP)  and  governance/rule  of 
law (BOMCA, CADAP).  

2.4. 

Latin America 

2.4.1.1.  Introduction 

Political  relations  with  Latin  America  continued  to  strengthen  in  2010  in  line  with  the 
Commission’s  Communication  on  Latin  America  of  September  2009.  The  sixth  EU-LAC 
(Latin  America  and  Caribbean)  summit  took  place  in  Madrid  in  May  2010.  It  was  the 
occasion to take stock of progress made to implement the communication; to deepen political 
dialogue  and  regional  integration;  to  promote  social  cohesion;  and  to  encourage  closer 
bilateral  relations  between  individual  countries  of  the  region.  The  summit  achieved  several 
results: 

•  negotiations on an association agreement with central America were concluded;  

•  negotiations  for  an  association  agreement  with  Mercosur  were  resumed  (after  a  six-year 

stalemate);  

• 

• 

• 

the  completion  of  negotiations  for  a  trade  agreement  with  Colombia  and  Peru  in  March 
2010 was officially welcomed;  

the Latin America investment facility (LAIF) was launched;  

the decision was taken to establish the EU-LAC Foundation; 

•  a 2010-2012 action plan was adopted and is now being implemented.  

In  parallel  to  the  Madrid  summit,  a  number  of  important  meetings  took  place  in  May.  EU-
LAC  foreign  ministers  agreed  to  create  a  task  force  to  improve  the  functioning  of  the  EU-
LAC strategic partnership and summits. The EU-Mexico bilateral summit formally endorsed 
the joint executive plan of the EU-Mexico strategic partnership and agreed on the importance 
of  launching  sectoral  policy  dialogues  on  macro-economic  issues  and  security.  The  summit 
with Chile provided the occasion to establish closer contacts with the government of president 
Sebastian Piñera, to discuss the aftermath of the February 2010 earthquake, and to welcome 
the establishment of the Association for Development and Innovation and Chile’s signature of 
a  framework  agreement  with  the  EIB.  Besides  re-launching  negotiations  for  an  association 
agreement,  the  summit  with  Mercosur  resulted  in  commitments  by  leaders  to  avoid 

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protectionism,  to  cooperate  more  closely  on  science  and  technology,  and  to  increase 
coordination  in  international  fora.  The  summit  with  the  Andean  Community  welcomed  the 
conclusion of negotiations for the trade agreement with Colombia and Peru. It also agreed to 
step up cooperation in the fight against drugs. The summit with Central America welcomed 
the  conclusion  of  negotiations  for  the  association  agreement  and  agreed  to  intensify 
cooperation on security- and climate change-related matters. 

An  EU-Brazil  summit  took  place  in  Brasilia  in  July,  confirming  the  solidity  of  the  bilateral 
relationship.  It  explored  climate  change,  the  international  economic  and  financial  crisis  and 
the  G20  process.  Civil  aviation  agreements  were  signed.  A  ministerial  meeting  of  the  Rio 
Group  was  held  in  New  York  in  September  (at  the  time  of  the  UN  General  Assembly).  It 
discussed inter alia prospects for the “Comunidad de Estados de América Latina y el Caribe 
(CELAC)”, whose creation was decided by LAC partners in February.  

Three  EU-LAC  senior  officials  meetings  took  place  in  2010,  with  the  main  objective  to 
prepare the Madrid summit. The EU-LAC structured dialogue on migration continued. Three 
high-level meetings took place in 2010 focusing on education, health, vulnerable groups and 
family-related  matters  from  a  migration  perspective.  As  part  of  the  structured  dialogue  on 
drugs, a high-level meeting took place in Madrid in April. The main issues were drug-related 
environmental  problems,  cooperation  with  west  Africa  and  financial  needs  for  combating 
illicit drugs. 

Formal  texts  were  prepared  for  the  agreements  with  Colombia  and  Peru  and  with  central 
America during the second half of 2010, with a view to possible signature before the end of 
2011 or in the case of Central America in 2012. Several rounds of negotiations with Mercosur 
have taken place since the resumption of negotiations, with a timetable agreed for 2011. 

In the context of existing contractual frameworks with individual Latin Americanl countries, 
joint committees with Argentina, Mexico and Chile took place.  

Political consultations were held with privileged partners such  as  the United States, Canada 
and  Russia.  These  meetings  discussed  important  issues  related  to  Latin  America  such  as 
security, trade and investment, natural disasters and regional integration, as well as – where 
appropriate – specific country-related matters.  

2.4.1.2.  Aid effectiveness and donor coordination 

Efforts continued to foster aid effectiveness and the division of labour among donors in Latin 
America. Six countries (El Salvador, Honduras, Nicaragua, Peru, Bolivia and Colombia) are 
participating in an OECD survey to monitor progress by donors and partner countries on the 
Paris  and  Accra  commitments.  These  country-level  surveys  will  show  Commission's 
performance  until  December  2010,  and  will  measure  progress  since  previous  surveys  (2006 
and  2008).  The  OECD  report  will  be  presented  at  the  fourth  high-level  forum  on  aid 
effectiveness in Busan, in 2011. 

EU delegations continued their pro-active role in promoting division of labour among donors, 
fostering  policy  dialogue  with  partner  governments,  through  the  participation  in  donors-
governments sector groups, and supporting partner governments' own coordination initiatives. 
In  Bolivia,  one  of  the  pilot  countries  of  the  EU  Fast  Track  Initiative  for  the  Division  of 
Labour,  the  EU  continues  to  lead  in  the  implementation  the  aid  effectiveness  agenda.  In  El 

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Salvador, the EU has subscribed to a commitment for a national agenda on aid effectiveness" 
proposed by the Salvadorian government in June 2010 to donors and civil society organisations.  

A  number  of  partners  in  Latin  America,  namely  Brazil,  Mexico  and  Chile,  are  interested  in 
triangular cooperation with the EU. A triangular cooperation initiative with Mozambique was 
launched in the field of bio-energy at the EU-Brazil summit in July. 

The design of all new operations in Latin America follows the recently-adopted EU backbone 
strategy  on  technical  cooperation,  whose  objective  is  to  make  technical  assistance  more 
effective, notably by providing support for demand-led capacity building. 

2.4.1.3.  Working towards the MDGs 

Despite the high levels of inequality within and between Latin American countries, the report 
"Achieving  the  MDGs  with  equality  in  Latin  America  and  the  Caribbean:  Progress  and 
challenges (2010)"62, says Latin America is on track to reach the targets on extreme poverty, 
child  mortality  and  access  to  safe  drinking  water  and  basic  sanitation.  However,  six  of  the 
eight  MDGs  will  not  be  met  if  prevailing  trends  persist.  These  include  targets  related  to 
undernourishment  (MDG1),  completion  of  primary  education  (MDG2),  though  important 
progress has been made and 95% of children in Latin America are enrolled, gender parity in 
national  parliaments  as  a  principal  indicator  of  gender  equality  and  female  empowerment 
(MDG3), and maternal health (MDG5).  

Improve health conditions in Nicaragua 

The  PRASNIC  project  in  Nicaragua,  with  an  EU  contribution  of  €11  million, 
improved hygiene and health conditions in rural areas. The chances of sick children 
under five dying as a result of water-borne infectious diseases and diarrheic diseases 
was  reduced from 63.3%  to 41.4%.  In addition,  52  000  people  now  have  access to 
clean  water  and  145 000  people  have  access  to  basic  sanitation.  The  project 
supported the construction of sanitary infrastructures in schools and households, such 
as  140  small  aqueducts,  120  wells,  800  rain  water  containers,  15 000  latrines,  100 
public  toilets,  300  improved  household  floors,  10 000  improved  stoves  and  the 
protection of 20 water points and river basins.  

The EU contributes actively to the achievement of the MDGs in Latin America. On MDG1, 
two programmes implemented in Peru and Guatemala, with EU contributions of €60.8 million 
and €33.8 million respectively, are helping to redu ce chronic malnutrition. Several projects in 
Cuba  under  the  food  facility  (EU  contribution  €11.7  million)  and  food  security  (EU 
contribution  €16.5  million)  are  increasing  loca l  food  production  by  supporting  farmers  and 
cooperatives,  mostly  through  NGOs.  In  the  area  of  MDG2,  several  programmes  support 
national governments in the implementation of educational policies, such as PAPDE I and II 
in  Ecuador  (EU  contribution:  €75.2  million)   and  a  €54  million  education  programme  in 
Paraguay  approved  in  2010.  On  MDG3,  a  €4  m illion  project  in  Costa  Rica  promotes  the 
entrepreneurial capacities of women to strengthen their economic independence. 

Fighting poverty in Peru 

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The EU-Peru programme to fight poverty in metropolitan Lima (PROPOLI, with an 
EU contribution of €12 million), financed th e creation of 780 micro-enterprises in the 
sectors of production, services and trade. Close to 10 000 micro-enterprises received 
training,  consultancy  and  technical  assistance,  while  700  women  took  up  trading 
activities. 

2.4.1.4.  Implementation and results 

The  Commission  adopted  24  actions  in  Latin  America  in  accordance  with  the  2010  annual 
action  plans  with  a  total  value  of  €356  million.  The  most  important  areas  concern  the  fight 
against  poverty,  social  cohesion,  mutual  knowledge  and  understanding,  sustainable 
development, the fight against drugs, and trade and the private sector.  

Under  social  cohesion,  a  €22.5  million  progra mme  was  approved  to  support  Guatemala's 
justice  and  security  sector.  In  El  Salvador,  the  EU  will  finance  the  economic  recovery  plan 
(PARE-ES), with a contribution of €24.2 million. The programme aims to alleviate the impact 
of  the  economic  crisis  in  El  Salvador  by  supporting  fiscal  reform  to  improve  tax  collection 
and optimise spending.  

Support for secondary education in Honduras  

The European Union backed the PRAHEMO programme on secondary education in 
Honduras  with  a  contribution  of  €28  milli on.  The  programme  trained  more  than 
4 000  teachers  in  professional  and  technical  training  skills.  A  total  of 446  students 
benefited  from  grants  guaranteeing  their  access  to  training  and  entry  into  the 
workforce. In addition, the programme provided infrastructure and equipment for 33 
workshops, 42 laboratories and 18 classrooms in 19 secondary schools. 

The EU agreed to contribute €30.4  million to a programme to stabilise peace in Colombia It 
will help create local conditions to foster social, economic and political development which 
can lay the foundation for active citizenship and peaceful conflict resolution. In Bolivia, a €9 
million  project  will  support  the  implementation  of  the  national  strategy  to  fight  drug 
trafficking and revalorization of the coca leaf in a climate of peace, coordination, participation 
and respect of human rights.  

To  support  trade  and  the  private  sector,  a  €13  million  project  in  Bolivia  was  adopted,  to 
increase  employment  and  reduce  poverty  by  helping  Bolivia  diversify  and  increase  its 
to  strengthen  SME 
exports.  In  Argentina,  a 
competitiveness and create jobs.  

€9.8  million  pr oject  was  approved 

Support  for  the  production  and  export  of  quality  agricultural  products  in 
Nicaragua 

The  objective  of  the  project  was  to  increase  the  production  and  raise  the  quality 
standards  of  Nicaraguan  agricultural  products  so  that  they  meet  requirements  for 
exporting to the EU market. The EU contribution towards the project was €5 million, 
and it was implemented between 2006 and 2010. During this period, the capacities of 
the ministries for agriculture and commerce were strengthened by providing training 
and  equipment.  In  particular,  the  conditions  for  sanitary  and  phytosanitary 
supervision  were  improved  to  meet  EU  standards.  Agricultural  producers  and  food 

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self-
incorporating  good  production  practices, 
processors  are 
regulation/safety, risk analysis and critical control in their production lines. Thanks 
to  the  project,  100  cattle  farms  apply  traceability  norms  and  30  shrimp  farms  now 
meet EU standards. 

including 

In  Honduras,  a  €21  million  project  was  adopted 
to  support  the  management  of  forest  and 
protected  areas  and  wildlife.  Full  cooperation  with  Honduras  was  resumed  in  2010  after 
presidential  elections  there.  A  similar  €7  mill ion  project  in  Brazil  will  strengthen  the 
sustainable use of protected areas in the Terra do Meio region (State of Pará). 

In May, the European Commission adopted the first country strategy paper for Cuba (2011-
2013), which will serve as the basis for future bilateral cooperation.  

The Commission gives high priority to supporting integration processes in Latin America. In 
the  Andean  Community,  two  actions  were  approved  in  2010:  one  to  support  regional 
participative integration (€8 million) and the ot her on institutional strengthening (€1 million). 
The EU provided €6.7 million for EU-Mercosur study centres.  

To support regional integration and to consolidate peace between Peru and Ecuador, the EU 
contributed €51 million to upgrad e the Piura-Guayaquil highway. The project, which included 
road  infrastructure  works,  building  the  "Centro  Binacional  de  Atención  en  Frontera"  and 
activities  for  social  and  economic  integration,  has  improved  the  quality  of  life  of  border 
communities by reducing transport times and increasing trade between Peru and Ecuador. 

Sector  support  programmes  since  2003  have  benefitted  nine  of  the  17  partner  countries  in 
Latin  America:  Guatemala,  Honduras,  El  Salvador  Nicaragua,  Ecuador,  Peru,  Bolivia, 
Paraguay  and  Uruguay.  With  a  total  commitment  of  €712  million  (about.  30%  of  total  aid 
funds  for  the  region  between  2003  and  2010),  the  programmes  covered  education,  water 
supply and sanitation, health, and government and civil society. 

In  2010,  the  Commission  adopted  two  sector  policy  support  programmes.  One  was  the 
economic recovery plan for El Salvador (PARE-ES). The other was Bolivia’s programme for 
water and sanitation in suburban areas (PASAP), with an EU contribution of €20 million. It 
supports  government  policy  in  water  and  sanitation,  including  climate  change  adaptation 
measures.  

The decision taken by the Commission and other EU donors to suspend from January 2009 
the disbursement of aid to Nicaragua channelled through the budget was maintained in 2010. 
As agreed, the Commission pursued its other aid activities and maintained a dialogue with the 
Nicaragua government, particularly in the areas of governance and electoral reforms. The EU 
might review the situation in the light of a positive evolution in these areas. 

Reducing chronic malnutrition in Peru 

Following a constructive and open dialogue with the government of Peru, the EU is 
contributing  €60.8  million  towards  the  Peruvian  nutritional  programme  (PAN), 
which  aims  to  reduce  chronic  malnutrition  and  fight  poverty.  Euro-PAN,  officially 
launched  in  February  2010  in  Lima  by  Peruvian  President  Alan  Garcia,  focuses  on 
the  20%  most  vulnerable  population  of  the  three  poorest  Peruvian  regions.  Euro-
PAN  has  already  generated  positive  improvements  in  both  the  nutritional  and 
financial policies of Peru. 

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The following regional programmes continued in 2010: 

•  Alßan  programme  for  higher  education  and  training  scholarships  in  the  EU  for  Latin 

American citizens. 

•  ALFA III programme between higher education institutions of the EU and Latin America. 

•  EUROsociAL  I  programme,  supporting  new  practices  and  policies  to  increase  levels  of 

social cohesion in Latin American societies. 

•  AL-INVEST programme to facilitate the international activities of Latin American SMEs. 

•  @LIS  2  programme  (alliance  for  the  information  society)  aiming  to  reduce  the  digital 

divide and the integration of Latin America into the global information society. 

•  URB-AL programme, targeting local authorities of the EU and Latin America as well as 

other actors involved in the urban sector. 

URBAL-III Project "La Basura sirve" 

The  project  "La  Basura  sirve"  (EU  contribution:  €2  million)  aims  to  raise 
environmental  awareness  and  to  promote  recycling  as  an  instrument  for  social 
cohesion  in  six  Latin  American  cities.  This  is  done  through  promoting  the 
experiences  of  the  cities  of  Santiago  de  Surco  (Peru)  and  Cuenca  (Ecuador), 
considered  as  pioneer  models  in  Latin  America  for  their  policies  and  innovative 
practices  in  environmental  management.  These  experiences  constitute  an  important 
instrument  for  social  and  economic  cohesion  through  the  creation  of  new  jobs  and 
the heightened awareness of young people of environmental topics. 

•  Erasmus  Mundus,  which  contributes  to  the  promotion  of  partnerships  and  institutional 

cooperation exchanges between higher education institutions from both regions. 

•  EURO-SOLAR  programme  to  reduce  poverty  in  eight  beneficiary  countries  (Bolivia, 
Ecuador, El Salvador, Guatemala, Honduras, Nicaragua, Paraguay and Peru), by enabling 
remote rural communities without access to electricity to benefit from renewable energy 
sources. 

EURO-SOLAR: Renewable energies for sustainable development 

(2007-2011)  provides  600 

The  EURO-SOLAR  programme 
rural 
communities with a hybrid system of photovoltaic panels, sometimes combined with 
a  small  back-up  wind  generator,  to  produce  electricity  to  be  used  by  local 
communities  for  social  and  economic  development.  EURO-SOLAR  supplies 
electricity  without  affecting  climate  change,  for  a  wide  range  of  applications 
(education,  health,  communication  and  information  technologies  and  productive 
activities).  The  EU  contributes  €28.7  m illion  to  the  programme,  which  is  a  good 
example of an action combining poverty alleviation and moves toward a low-carbon 
economy. 

isolated 

In 2010, the following regional programmes were launched: 

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•  COPOLAD:  a  cooperation  programme  between  Latin  America  and  the  European  Union 

on anti-drugs policies. 

•  EUROsociAL II: a programme, to continue support for national public policies to enhance 
the  level  of  social  cohesion  and  strengthen  the  institutions  responsible  for  their 
implementation. 

•  EUrocLIMA: an EU-LA environmental programme complementing European actions on 
climate  change  already  carried  out  in  the  region  aimed  at  knowledge  sharing,  fostering 
structured  and  regular  dialogue  at  all  levels,  and  ensuring  synergies  and  coordination  of 
current and future actions. 

•  RALCEA: a project to improve water management by developing technical capacities in 
order to impact on political decision-making, and to contribute to sustainable management 
of water resources with information-based policies, in line with the aims of the EU water 
initiative in the region. 

•  LAIF  (Latin  American  Investment  Facility):  to  promote  additional  investments  in  key 
infrastructures, focusing on transport, energy, and environment. The facility also supports 
social and private sector development in Latin American countries. 

2.4.1.5.  Monitoring  

In 2010, 20 monitoring missions examined projects in all 17 countries in the region. A total of 
180 ongoing projects were monitored including bilateral, regional and sub-regional projects. 
One sector policy support programme was monitored in Bolivia. The total value of ongoing 
projects monitored amounts to €663.3 million, wh ich represents 43% of the overall value of 
ongoing projects in the region. In addition, a total of 44 completed projects were monitored 
ex-post with a total value of €169.3 million. 

As the table shows, 85 % of projects in Latin America are performing well or very well, while 
13%  have  some  problems  and  2%  experience  major  difficulties.  The  percentage  of  projects 
doing  well  or  very  well  has  increased  from  76%  in  2008  to  85%  in  2010.  The  number  of 
projects  facing  difficulties  fell  from  21%  in  2008  to  13%  in  2010.  This  positive  trend  is 
confirmed by the so-called re-monitoring exercise: out of the 180 ongoing projects monitored 
in  2010,  36  (20%)  had  been  monitored  previously  in  2008  and  2009,  showing  a  positive 
evolution in their performance. 

Table 19 Latin America- performance of ongoing projects 

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100%

80%

60%

40%

20%

0%

74%

82%

84%

21%

15%

13%

2%

3%

1%

2%

1%

2%

2008

2009

2010

 Very good performance,  
 Good performance,  
 Performing with problems,  
 Not performing or having major difficulties. 

Table 20 Latin America- Project performance per ODA sector  

90%

80%

74%

75%

78%

75%

78%

68%

64%

64%

59%

Very good performance I

Good performance II

18%

22% 23%

13%

17%

13%

17%

5% 4%
3%

6%

1% 3% 4% 4% 5%

5% 6% 5%

22%

27%

9%

14%
6%
2% 3%

10%

Performing with Problems III

Not performing or major
difficulties IV

70%

60%

50%

40%

30%

20%

10%

0%

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Ongoing  projects  monitored  in  2010  in  Latin  America  show  that  85%  have  scores  of  very 
good or good for relevance and quality of design, and 88% have very good impact or potential 
impact  (i.e.  contribution  to  improving  the  livelihood  of  the  people  and/or  the  overall 
environment  in  which  they  operate).  Social  infrastructure  and  services  (mainly  governance 
and civil society) is the most important sector in Latin America, followed by the production 
sector  and  multi-sector/crosscutting.  All  sectors  are  showing  a  good  performance  with  the 
majority of projects (84 % as an average) on track. 

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2.4.1.6.  Outlook 

EU  policy  priorities  for  Latin  America  in  the  coming  years  were  defined  in  the  2009 
communication  "EU  and  Latin America: Global players in partnership". Financial resources 
will concentrate as before on the poorest countries – notably to promote sustainable economic 
and  social  development  and  to  reduce  inequalities.  The  EU  will  also  look  at  new  forms  of 
cooperation with countries with higher levels of development. 

The mid-term review of the regional and country strategy papers 2007-2013 was completed in 
2010.  It  largely  confirmed  the  cooperation  strategies  based  on  social  cohesion  and  regional 
integration  for  the  remaining  period  (2011-2013).  The  financial  allocation  for  the  period 
2011-13 for the Central America regional strategy was increased by €20 million to respond to 
the  needs  related  of  the  conclusion  of  the  Association  Agreement  as  well  as  the  increasing 
vulnerability  of  the  region  on  security  and  trans-border  criminality.  For  MERCOSUR,  the 
emphasis  will  be  on  a  research  project  on  biotechnologies.  For  the  Andean  Community 
climate change was included as a new priority.  

Following  the  adoption  of  the  first  country  strategy  paper  in  2010,  bilateral  cooperation 
activities with Cuba will start in 2011. 

Special attention will be paid to the impact which the Madrid action plan will have. The plan 
identifies instruments and activities which, if properly implemented, should lead to concrete 
results guaranteeing ownership and capacity-building in several key areas.  

The Commission will continue to foster closer coordination on development cooperation with 
EU member states and multilateral donors. It will also seek to apply aid mechanisms which 
promote dialogue and ownership and which use partners’ national procedures, whenever the 
appropriate conditions are met.  

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Table 21 DCI Geographic - Breakdown by sector of external aid financed on the general EU Budget 
managed by EuropeAid in 2010

Commitments in € million

0 (0%)

259 (18%)

76 (5%)

185 (13%)

838 (60%)

55 (4%)

Disbursements in € millio n
91 (8%)

34 (3%)

109 (10%)

117 (11%)

56 (5%)

702 (63%)

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

Bilateral and multilateral ODA (EuropeAid only).

Table 22 DCI Geographic - External aid financed on the general EU Budget 
managed by EuropeAid

€ millions

2007

2008

2009

2010

Commitments

         1 362              1 371              1 414    

        1 422    

Disbursements

         1 279              1 137              1 192    

        1 127    

Bilateral and multilateral flows (EuropeAid only).

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Table 23 DCI Geographic - General and sector budget support per country

Commitments in € million

Country

GBS / 
SBS

Sector

Decription

Bhutan
Bhutan
Bolivia

Decentralisation and support to 
subnational government

SBS
SBS Rural development
SBS Basic sanitation

Cambodia 
El Salvador

Indonesia

SBS Primary education
SBS Public finance management
Education policy and 
administrative management

SBS

Support to the local governance support 
programme
Renewable natural resource sector programme 
Support to the national sanitation plan 
Education sector policy support programme 2011-
2013
Programme for economic recovery  PARE-ES

Education sector support programme Phase I

Kyrgyzstan

SBS Social/ welfare services

Sector policy support programme, social sector 

Civilian peace-building, conflict 
prevention and resolution
Education policy and 
administrative management

SBS

SBS

SBS Basic health care
SBS Social/ welfare services
Health policy and 
administrative management
Multisector aid for basic social 
services 

SBS

SBS

Support to stability and peace building

Khyber Pakhtunkhwa education sector reforms 
programme 
Primary health care sector policy support 
programme 
Human development support programme

Health sector policy support programme 

Raising the living standards of ethnic minorities 

Nepal

Pakistan

South Africa
Tajikistan

Vietnam

Vietnam

Grand Total

Total

2.80 
5.60 
20.00 

30.80 
24.20 

56.00 

13.00 

22.00 

15.00 

126.00 
26.00 

39.25 

12.00 

392.65 

3. 

IMPLEMENTATION: THEMATIC OVERVIEW 

This chapter presents EU external assistance on a thematic, rather than geographic basis. 

The main implementation instruments covered by this report are:  

•  the Development Cooperation Instrument – thematic programmes 

•  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  assistance63.  This  report  does  not, 
however, cover the Instrument for Pre-Accession (IPA)64 nor the EU’s Common Foreign and 
Security Policy65 (CFSP), on which separate reports are provided. 

63 

64 

65 

The European Commission's Humanitarian assistance is covered in more detail by the annual reports on 
humanitarian aid http://ec.europa.eu/echo/media/publications/annual_reports_en.htm  
For  more  information  and  annual  reports  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 

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Some figures and data are used to illustrate this chapter but detailed financial information can 
be found in the annexes to the present document.  

3.1. 

Thematic programmes 

3.1.1. 

Investing in people 

The  EU  continues  to  help  low-income  countries  to  achieve  the  MDGs  and  to  deliver  social 
services  to  their  citizens.  It  supports  health,  education,  employment,  social  inclusion  and 
culture through country programmes and regional programmes as well as worldwide thematic 
programmes.  It  deploys  different  delivery  methods  including  budget  support.  In  2010,  the 
proportion of country-level assistance to basic and secondary education and basic health was 
22% of DCI commitments. The aim is to support national policies and strengthen national and 
local delivery systems, while keeping a focus on the results to be delivered. 

The  Commission  completed  a  mid-term  review  of  the  thematic  programme  for  human  and 
social development "Investing in People" in 2010. The programme, covering the period 2007-
2013, supports thematic activities in health, education, knowledge and skills, gender equality, 
and  other  aspects  of  human  and  social  development  (employment  and  social  cohesion, 
children,  youth  and  culture).  As  a  result  of  the  mid-term  review  it  was  decided  that 
programming  in  2011-2013  should  follow  the  original  strategy  and  continue  to  focus  on  all 
four  main  pillars  of  thematic  action.  The  programme  will,  however,  move  away  from 
supporting actions in all areas every year to supporting each area in turn over a longer time 
frame. 

Health 

Specific  support  was  provided  in  2010  to  major  health  and  health-care  problems  that  pose 
particular  challenges  to  countries,  services  and  populations.  The  EU  launched  a  worldwide 
call for proposals for innovative approaches to address the shortage of human resources in the 
health  sector.  A  total  of  17  projects  were  contracted  in  this  area  for  a  total  value  of  €14.5 
million.  Another  call  for  proposals  dealt  with  advocacy  and  technical  support  for  the 
development of national strategies on sexual and reproductive health and rights (€34 million, 
28 projects selected). This was complemented by direct support to UN agencies to promote 
better  links  between  HIV/AIDS  care  and  general  reproductive  health  care  (€7  million).  For 
the  first  time,  the  burden  of  non-communicable  diseases  on  low-income  countries  was  the 
object of a call for proposals (10 projects selected). The EU budget contributed €50 million to 
the  Global  Fund  against  HIV/AIDS,  tuberculosis  and  malaria  (with  a  further  €50  million 
coming from the EDF). Capacity building for non-state actors was specifically addressed in a 
call for proposals on HIV/AIDS and tuberculosis prevention, treatment and care in the eastern 
neighbourhood. 

Education 

The  second  pillar  of  the  investing  in  people  (IiP)  programme  supports  activities  to  promote 
universal  access  to  quality  primary  education. The  EU  contributed  to  this  objective  in  2010 
with €5.8 million via the Fast Tr ack Initiative catalytic fund.  

In  2010,  the  FTI  underwent  reform  following  recommendations  and  observations  from  an 
external  mid-term  evaluation.  The  main  areas  of  reform  include  expanding  the  scope  of  the 
FTI to all Education-for-All goals and reinforcing the country focus, results monitoring and 

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mutual accountability of partners. The goal is to strengthen the partnership's value-added, and 
improve  the  effectiveness  of  education  aid.  Another  key  reform  concerns  the  global-level 
governance  structure  and  the  establishment  of  one  single  FTI  fund  to  replace  the  three 
previous ones.  

In addition to its FTI involvement, the Commission took part together with the Netherlands 
ministry  of  foreign  affairs  in  evaluating  the  global  programme  EEPCT  (Education  in 
Emergencies and Post-Conflict Transitions) managed by UNICEF. A second disbursement of 
€1.2 million was made to this programme before the end of 2010. 

Employment and social protection 

In  2010,  the  European  Commission  launched  two  calls  for  proposals  in  the  sector  of 
employment  and  social  protection.  One  was  aimed  at  developing  technical  and  vocational 
education  and  training  methodologies  and  services  for  the  informal  economy  (€17  million). 
The  second  focused  on  social  protection  and  employment  issues  which  enhance  social 
inclusion and social protection of workers in the informal economy and of vulnerable groups 
at  community  level  (€21.2  million).  A  study  on  th e  issue  of  disability  in  EU  development 
cooperation was carried out in close cooperation with civil society. Under the IiP programme, 
four  larger  projects  with  a  total  value  of  €11.3  million  ar e  jointly  managed  with  the 
International Labour Organisation (ILO). The projects seek to develop new tools which can 
be  tested  and  implemented  in  different  regions  of  the  world.  The  projects  cover:  trade  and 
employment,  statistical  systems,  social  protection  and  employment  policy  in  developing 
countries, occupational safety and health. 

Culture 

The  investing  in  people  programme  promotes  access  to  culture  and  the  protection  and 
promotion  of  cultural  diversity,  including  inter-cultural  dialogue  and  equal  respect  for  the 
dignity of all cultures. In 2010, the programme issued a call for proposals for €7 million with 
an additional €8.4 million from the Eastern Partnership culture programme.  

The  theme  of  this  call  was  strengthening  capacities  in  the  cultural  sector  as  a  factor  in 
development. The objective is to improve governance and structuring of the cultural sector to 
enhance the role of  cultural  actors in sustainable economic, social and human development. 
The  cultural  sub-sectors  concerned  include  activities  with  an  artistic  and/or  cultural  content 
across  creative  industries  such  as  music,  cinema  and  audiovisual,  litterature  and  publishing, 
heritage, visual arts, performing arts, plus cross-sectoral items like cultural tourism, education 
or communication. The specific aim is to strengthen capacities of cultural actors and their role 
in governance, to increase participation in governance and inclusive cultural policies, and to 
reinforce cultural cooperation as part of regional integration and international networking. 

In parallel, a joint technical assistance programme with UNESCO is supported (€1 million) to 
strengthen the governance of culture in developing countries. This project addresses countries 
eligible under the programme which have ratified the 2005 Convention on the protection and 
promotion of the diversity of cultural expression. The assistance will be based on the needs 
and  priorities  identified  by  beneficiary  countries  and  will  support  their  efforts  to  establish 
legal,  regulatory  and/or  institutional  frameworks  necessary  to  develop  the  culture  sector  in 
their  country,  and  introduce  policies  that  address  the  role  of  culture  in  social  and  economic 
development.  In  this  way,  the  project  aims  to  reinforce  the  role  of  culture  as  a  vector  for 
sustainable development and poverty reduction. 

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3.1.2.  Non-State actors and local authorities in development  

In  2010,  the  European  Commission  issued  calls  for  proposals  addressed  to  non-state  actors 
and local authorities to  enable them to obtain funding for development-related projects. For 
country-based  programmes  implemented  locally,  each  EU  delegation  launched  calls  for 
proposals  defining  country  priorities  and  eligible  applicants,  ensuring  complementarity  and 
consistency with the EU development cooperation programme. For multi-country operations, 
plus development education, awareness-raising and coordination, global calls were launched 
at headquarters level.  

Three NSA-targeted projects were also funded: one operating grant to Concord, the European 
confederation of NGOs, and two strategic projects implemented in cooperation with the EU 
presidency. 

The Commission also engaged in the DEAR study, a project aimed at defining its strategy on 
development  education  and  awareness-raising  in  Europe66.  This  was  carried  out  in  broad 
consultation with stakeholders and should result in a more strategic approach by the EU and 
better coordination with similar national efforts by Mmber States. 

implemented 

its 
The  Commission 
Communication  “Local  authorities:  actors  for  development”.  The  year  2010  was  marked  by 
the  implementation  of  projects  following  a  call  for  proposals  specifically  aimed  at  local 
authorities,  launched  in  December  2009  at  headquarters  level.  This  call  ensured  their 
increased participation in the NSA/LA programme. It received 444 project proposals. 

local  authorities  as  defined 

its  strategy  for 

in 

In addition, an atlas on decentralised cooperation, financed by the Commission, was prepared 
and released in the first quarter of 2010. It is available on the website of the Committee of the 
Regions67.  The  portal  of  decentralised  cooperation,  also  hosted  by  the  Committee  of  the 
Regions,  was  established  as  a  working  tool  for  European  local  authorities  operating  in  the 
field of development cooperation. 

At  policy  level,  a  positive  discussion  took  place  between  member  associations  of 
PLATFORMA68  and  the  Commission  services.  PLATFORMA  is  the  dialogue  platform  for 
local authorities working in development cooperation. It organised two regional seminars for 
local authorities in 2010. Key issues addressed were the added value and impact of local and 
regional authorities in development and how this could be best reflected in European policies. 

Throughout  2010,  EU  headquarters  and  Delegations  carried  out  regular  consultation  and 
cooperation  with  local  authorities  and  non-state  actors,  e.g.  during  the  drafting  of  EU 
development strategies and the implementation of development policy actions. In this context, 
one  important  initiative  was  the  launch  of  the structured  dialogue  with  non-state  actors  and 
local  authorities  in  March  2010.  It  will  continue  into  early  2011  and  will  seek  to  reach  a 
common understanding on the main issues related to the strategic role of non-state actors and 
local  authorities  in  EU  development  activities  and  to  increase  the  effectiveness  of  their 
involvement. 

66 
67 
68 

https://webgate.ec.europa.eu/fpfis/mwikis/aidco/index.php/DEAR_study 
http://portal.cor.europa.eu/atlas/en-US/Pages/welcome.aspx  
http://www.platforma-dev.eu/en/homepage.htm 

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The structured dialogue for an effective partnership in development69 

A  structured  dialogue  for  an  effective  partnership  in  development  was  launched  in 
March 2010 and will be completed in May 2011 with a final conference in Budapest. 

This 14-month initiative aims at increasing the effectiveness of all stakeholders in EU 
development  cooperation.  It 
the 
Commission,  EU  delegations,  member  states,  the  European  Parliament  and  civil 
society  organisations  &  local  authorities  from  EU  and  partner  countries.  In  total,  30 
days of consultation have been organised bringing together more than 600 participants.

is  a  multi-stakeholder  dialogue, 

involving 

The  results  of  this  process  will  feed  into  forthcoming  decisions  on  EU  programmes 
and  instruments  and  will  be  used  for  drafting  operational  guidelines  on  Commission 
delivery and selection mechanisms. 

The Commission is seeking to further refine the tools mobilised to support these actors and 
build  their  capacity.  Preparations  for  a  mapping  study  in  Latin  America  were  finalised,  and 
another has started for Asia. In both cases, the idea is to provide guidance on how better to 
identify  the  actors,  their  added-value,  strengths  and  weaknesses  and  the  global  context  in 
which they operate and to integrate this knowledge into implementation strategies. 

Under  the  programme’s  multi-annual  strategy  (2007-2010),  the  Annual  Action  Programme 
€183.8 million for NSAs and €35.6 million for 
for 2010 allocated a total of €219.4 million: 
local authorities. For in-country operations, €134.7 million were set aside for NSAs and €18.4 
million for LAs. With these funds, operations in 87 countries are being launched. 

Successful  examples  of  projects  financed  under  this  programme  include  inter  alia  a  project 
implemented in the West Bank to facilitate the life of persons with disabilities, the elderly and 
patients by improving their access to rehabilitation and ability development. Another project 
in Jordan and Syria, strives to improve women's quality of life among rural communities and 
to enhance their access to the labour market.  

Further  to  the  evaluation  of  the  2007-2010  strategy,  the  objectives  of  the  new  strategy  for 
2011-2013  reflect  continuity  with  the  previous  period  and  the  intention  to  adopt  a  more 
strategic and focused approach. The new strategy opens up the possibility to explore new and 
more effective aid delivery methods, in line with the Paris Declaration and the Accra Agenda 
for Action. 

CiSocH:  a  single-entry  point  for  information  about  and  for  civil  society  and 
development cooperation70 

In  2010,  the  European  Commission  developed  a  new  online  portal  aimed  at  civil 
society organisations and local authorities: CiSocH (Civil Society Helpdesk). Its aim is 
to provide a single entry point to facilitate access to existing information on topics of 
specific  interest  to  NSA-LA  –  making  procedures,  vocabulary  and  working  methods 
easier to understand. 

69 
70 

https://webgate.ec.europa.eu/fpfis/mwikis/aidco/index.php/Structured_dialogue 
https://webgate.ec.europa.eu/fpfis/mwikis/aidco/index.php/Main_Page  

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CiSocH's  strength  is  that  it  brings  together  access  to  targeted  information  available 
elsewhere  (the  Commission,  Council,  other  websites)  and  organises  that  information 
around  "concepts"  which  relate  to  key  issues  of  particular  interest  to  civil  society. 
Under  each  concept,  a  short  description  of  the  topic  is  given,  as  well  as  links  to 
relevant documents, webpages, etc.  

3.1.3.  Migration and asylum 

The Stockholm Programme - an open and secure Europe serving and protecting the citizens, 
adopted  by  the  European  Council  in  December  2009,  and  its  April  2010  action  plan, 
confirmed the EU's global approach to migration. This is built around three pillars: facilitating 
labour  migration,  preventing  and  curbing  irregular  migration  and  promoting  links  between 
migration and development as the strategic external dimension of EU migration policy. The 
thematic programme "Cooperation with third countries in the areas of migration and asylum" 
(TPMA)  is  the  main  instrument  for  external  cooperation  on  migration  and  asylum.  While 
recognising eastern Europe, the Mediterranean and Sub-Saharan Africa as EU priority regions 
for  cooperation  on  migration  and  asylum,  the  programme  stresses  the  importance  of  more 
cooperation with countries like China and India and regions like central Asia, Latin America 
and the Caribbean.  

The 2010 TPMA annual action plan included the following measures:  

• 

• 

• 

€7 million for targeted projects linked to the implementation of mobility partnerships with 
Cape Verde, Moldova and Georgia; 

€3 million for a targeted project to strength en dialogue and cooperation between the EU 
and Latin America and the Caribbean to establish management models on migration and 
development policies; 

€6.6  million  for  regional  protection  programmes 
Europe) targeting the refugee populations; 

(north  Africa,  Tanzania  and  eastern 

•  a call for proposals combining the budgets for 2009 and 2010 totalling €70 million. The 

amount earmarked for 2010 is €31.4 million;  

• 

€5 million for special measures.  

Closed in November 2010, the call for proposals resulted in the submission of more than 370 
concept notes, from which 61 projects were selected. In addition, the Commission decided in 
November  to  reallocate  the  €5  million  earmarked  for  special  measures  to  finance  a  further 
four projects from the reserve list of the call for proposals. Forty-two projects were contracted 
before the end of 2010 and the rest will be signed during 2011. 

Issues  covered  by  the  selected  projects  include:  preventing  and  curbing  irregular  migration 
and facilitating the readmission of illegal immigrants; protecting migrants against exploitation 
and  exclusion  and  supporting  the  fight  against  trafficking  in  human  beings;  promoting 
asylum,  international  protection  and  the  protection  of  stateless  persons.  For  example,  the 
Interregional network “Migration Rights” offers legal assistance to refugees and migrants in 
Russia. Another project aims to combat human trafficking from Morocco and Egypt to Jordan 
and to protect women migrant workers in Jordan. A third project will set up a European-wide 

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African diaspora platform for development. Finally, a project aims to strenghten the capacity 
of  policy-makers  and  social  partners  to  adopt  and  implement  gender-sensitive  labour 
migration policies, legislation and administration in Central America. 

The  mid-term  review  of  the  TPMA  was  completed  in  March  2010.  The  principal  lessons 
learned have been taken into account for the 2011-2013 strategy, which will be approved in 
early 2011. As recommended  by  the review, the management of  a  large number  of projects 
funded  from  the  TPMA  was  transferred  to  EU  delegations  in  2010.  This  decision  was 
intended  to  enhance  the  effectiveness,  impact  and  sustainability  of  projects  and  to  improve 
local ownership. 

The  TPMA  has  substantially  contributed  to  the  effective  implementation  of  the  mobility 
partnerships between the EU and Cape Verde, Moldova and Georgia. Discussions are ongoing 
with  other  countries  to  establish  new  mobility  partnerships  in  the  near  future.  The  regional 
protection programme covering Tanzania, has been signed with implementation due from the 
beginning  of  2011.  The  one  for  the  Horn  of  Africa  was  signed  at  the  end  of  2010.  The 
regional  protection  programmes  in  north  Africa  and  estern  Europe  are  currently  being 
negotiated. 

The Commission also continued to play an active role in the policy dialogue on migration and 
asylum  issues  at  various  international  and  regional  events  like  the  fourth  global  forum  on 
migration and development in Puerto Vallarta, Mexico, in November 2010. There, as in other 
fora, the EU supported the development of migration profiles as an essential tool for defining 
national  development  policies.  As  part  of  the  EU-Africa  dialogue,  work  continued  on  the 
migration,  mobility  and  employment  partnership.  An  initiative  supported  by  the  TPMA  is 
facilitating dialogue and exchange of information and good practices in this area. Cooperation 
with partners in eastern Europe, the south Caucasus and central Asia has been strengthened, 
either bilaterally or through platforms like the Black Sea Cooperation Platform, the Budapest 
Process  and  the  Soderköping  Process,  and  initiatives  such  as 
'Building  Migration 
Partnerships'. The structured dialogue on migration with Latin America launched in 2009 is 
also moving forward. 

3.1.4.  Environment and sustainable management of natural resources including energy 

Environmental  protection  remained  a  priority  in  2010  with  support  from  the  thematic 
programme  for  the  environment  and  the  sustainable  management  of  natural  resources 
including energy (ENRTP). The 2010 annual action programme was adopted with a budget of 
€201  million.  It  focuses  on  major  environmen tal  issues,  such  as  climate  change, 
desertification,  biodiversity,  fisheries  and  forest  preservation  (including  the  EU  Forest  Law 
Enforcement,  Governance  and  Trade  initiative)  and  sustainable  energy.  Support  for 
developing  countries’  capacity  to  implement  multilateral  environmental  agreements  is  a 
prominent feature of the programme. An external review of the programme provided input for 
the  new  2011-2013  ENRTP  strategy  which  was  approved  in  October.  The  three  main 
priorities  of  the  new  strategy  are:  climate  change  and  sustainable  energy,  environment  and 
development, and the strengthening of environment and climate governance. 

In  2010,  the  ENTRP  allocated  €49  million  to  the  Global  Climate  Change  Alliance  Of  this, 
€25 million was counted as fast-start climate cha nge financing for adaptation (see below), to 
support  countries  most  vulnerable  to  climate  change,  in  particular  the  least  developed 
countries  and  small  island  developing  states.  The  following  countries  benefitted  from  the 
GCCA  2010  budget:  Ethiopia,  Nepal,  the  Pacific  region,  Solomon  Islands,  Belize  and 

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Mozambique.  Typical  climate  change  related  activities  are:  capacity  building  to  integrate 
climate change into policies and strategies, sustainable land use and watershed management, 
agro-forestry, renewable energy, disaster risk reduction and general awareness raising.  

Under  the  GCCA,  two  high-level  regional  seminars  on  climate  change  were  held  in 
Bangladesh and Ethiopia. These conferences provided a platform for discussion and exchange 
of  views  on  the  current  status  of  the  international  climate  negotiations.  They  also  were  an 
occasion to discuss the GCCA’s implementation mechanisms. In Dhaka, a tangible outcome 
was  an  Asia-GCCA  joint  declaration  between  the  EU,  and  the  governments  of  Bangladesh, 
Cambodia  and  the  Maldives,  who  are  currently  GCCA  beneficiaries.  In  Addis  Ababa, 
discussions  focused  on  the  international  negotiations  on  climate  change  in  Cancun  (the  16th 
Conference  of  the  parties  to  the  UN  framework  convention  on  climate  change),  on  GCCA 
experiences  in  a  number  of  African  countries,  and  on  the  further  need  to  train  African 
negotiators.  

The Commission pledged €150 million towards fast-start financing with €50 million for 2010. 
The  ENRTP  was  used  as  vehicle  to  deliver  on  this  pledge,  with  €25  million  for  adaption 
actions  in  Ethiopia,  the  Pacific  region  and  Nepal.  The  balance  of  €25  million  was  used  for 
mitigation  activities  in  the  area  of  REDD+71,  carbon  market  preparedness,  emissions 
monitoring,  reporting  and  verification  (MRV),  and  the  development  of  low  emission 
strategies.72 

The  Global  Energy  Efficiency  and  Renewable  Energy  Fund  (GEEREF)  which  pools  public 
and  private  funds  through  an  innovative  public-private  partnership,  offers  new  risk  sharing 
and co-funding options for investors in energy efficiency and renewable energy. It approved 
two new regional funds in 2010 for investments of €22.5 million. These will invest in small-
scale clean-energy projects in east Africa and Latin America. 

Another  energy-related  activity  supported  under  ENRTP  was  the  launch  of  the  Africa-EU 
renewable energy cooperation programme. This will provide the basis for renewable energy 
cooperation between Europe and Africa in the context of the Africa-EU energy partnership, 
and contribute to achieving its ambitious targets for renewable energy.  

All  these  ENRTP  activities  have  been  complemented  by  projects  and  programmes  funded 
under the geographical financial instruments. 

The  Commission  pursued  its  efforts  in  preserving  tropical  forests  and  improving  forest 
governance.  Progress  has  been  made  under  the  Forest  Law  Enforcement,  Governance  and 
Trade  (FLEGT)  initiative  with  the  signature  of  Voluntary  Partnership  Agreements  (VPA) 
with  the  Republic  of  Congo  and  Cameroon,  in  addition  to  the  one  that  was  already  signed 
with Ghana. A FLEGT VPA with the Central African Republic is under ratification. FLEGT 
VPAs  are  under  negotiation  with the  Democratic  Republic  of  Congo,  Liberia,  Indonesia, 
Vietnam and Malaysia. 

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Reducing emissions from deforestation and forest degradation (REDD) 
More  information  on  climate  and  biodiversity  related  projects  supported  by  the  Commission  can  be 
found 
following 
and 
http://ec.europa.eu/europeaid/biodiversity-actions/ 

address:  http://ec.europa.eu/europeaid/climate-change-actions/ 

the 

at 

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Table 24 DCI Thematic - Breakdown by sector of external aid financed on the general EU Budget 
managed by EuropeAid in 2010

Commitments in € million

88 (7%)

193 (16%)

417 (35% )

155 (13%)

Disbursements in € millio n
88 (7%)

402 (33%)

37 (3%)

311 (26% )

355 (30%)

21 (2%)

93 (8%)

241 (20%)

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

Bilateral and multilateral ODA (EuropeAid only)  Including Food Facility

Table 25 DCI Thematic - External aid financed on the general EU budget 
managed by EuropeAid

€ millions

2007

2008

2009

2010

Commitments

            834                 956              1 854    

        1 204    

Disbursements

            745                 838              1 233    

        1 210    

Bilateral and multilateral flows (EuropeAid only).

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Table 26 DCI Thematic - General and sector budget support per country

Commitments in € million

Country

Armenia

GBS / 
SBS
SBS Social/ welfare services

Sector

Barbados

SBS

Education policy and 
administrative management

Guyana

Jamaica

Mauritius

Mozambique

SBS Industrial crops/export crops

SBS Industrial crops/export crops

GBS General budget support
Agricultural policy and 
administrative management

SBS

Saint Kitts and Nevis GBS General budget support
GBS General budget support
Solomon Islands
GBS General budget support
Tanzania
GBS General budget support
Togo
Trinidad and Tobago SBS Trade-related adjustment
Zambia

GBS General budget support

Grand Total

GBS : General budget support
SBS : Sector budget support

3.1.5.  Food security 

Decription

Food security programme 2010

Human resource development programme

Annual action plan 2010 on accompanying 
measures on sugar
Accompanying measures 2010 for sugar protocol 
countries 
Promoting Sustainable and Equitable 
Development

Sector policy support program to PROAGRI II

Annual Action programme on accompanying 
measures for sugar protocol countries 
Climate change assistance programme 
Food Facility
Food Facility
Annual Action Plan 2010 under AMSP
Food Facility 

Total

2.20 

14.77 

18.81 

20.80 

7.67 

5.20 

13.64 
2.80 
20.00 
8.20 
16.55 
5.80 

136.43 

Despite progress in 2010, the lack of food security remains a serious global concern.  

The number of undernourished people in the world has been rising since 1995. After a sharp 
increase between 2006 and 2009, this number is estimated to have fallen in 2010: 925 million 
people  were  undernourished  in  2010  compared  with  1.02  billion  in  2009.  This  decline  is 
largely attributed to renewed economic growth and a drop in food prices from a peak in mid-
2008. Nevertheless, food-security remains under threat from price volatility, climate change 
and a growing population. 

While access to food is a major concern, access to nutritious food is even more challenging: 
about  two  billion  people  suffer  from  micronutrient  deficiencies  while  malnutrition  is 
estimated to be responsible for 3.5 million mother and child deaths per year. 

Renewed political commitment from the EU to tackle worldwide food insecurity 

In  March,  the  Commission  presented  a  new  policy  on  food  security73  which  set  out  a 
comprehensive approach to food insecurity (see chapter 1). 

In  December  2010,  following  its  mid-term  review,  the  Food  Security  Thematic  Programme 
(FSTP) was updated and a new multiannual indicative programme for 2011-2013 was adopted 
with an overall budget of €750 million. Over the  coming three years, the FSTP will focus on 
three main priorities:  

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(i) research, technology transfer and innovation to enhance food security;  

(ii) strengthened governance approaches for food security;  

(iii) addressing food security for the poor and vulnerable in fragile situations.  

Along  with  the  EU  food  facility,  this  instrument  provides  concrete  evidence  of  the  EU's 
strong commitment towards improving food security in the developing world.  

Implementing the food facility 

The EU Food Facility was set up in December 2008 as a rapid response to soaring food prices 
in  developing  countries.  It  made  available  an  additional  €1  billion  for  projects  and 
programmes in 50 target countries during the period 2009-2011. Through the food facility, the 
EU  provides  farmers  with  essential  agricultural  inputs  (seeds,  fertilisers,  equipment)  and 
services,  increases  access  to  local  food  for  the  most  vulnerable,  and  encourages  the 
development of agricultural infrastructures and services to help raise productivity.  

Shielding children, pregnant women and nursing mothers 

In  Guatemala,  the  EU  is  funding  a  WFP/FAO  project  to  protect  children,  pregnant 
women  and  nursing  mothers  from  the  impact  of  high  food  prices  by  improving 
market deliveries and subsistence production. 

Food-for-work,  food-for-training  and  food-for-asset  activities  are  improving  the 
living  conditions  of  210 000  vulnerable  beneficiaries  and  the  productive  system  of 
8 000 subsistence farmers in target rural areas. 

By the end of 2010, the full amount of €1 billio n had been committed. More than 80% of the 
payments were made (i.e. over €800 million)  in 2009 and 2010. The food facility has funded 
134 projects implemented by NGOs and member states agencies, 68 projects by international 
organisations,  three  regional  projects  and  11  budget  support  measures.  Although  projects 
were implemented in record time, strict controls were applied via monitoring, evaluation and 
audit procedures to safeguard quality. Best practices and lessons learnt from the food facility 
will be incorporated in FSTP actions. 

Supplying inputs for farmers 

The European Commission and the FAO have joined efforts to supply 176 000 small 
farmers in Zimbabwe – representing between 10% and 15% of communal farmers in 
the  country  –  with  26 000  tonnes  of  seeds  and  fertilisers.  With  good  seasonal  rain, 
timely  implementation  and  effective  coordination,  this  project  could  almost  double 
traditional food production in the regions concerned. 

The  Food  Facility  has  demonstrated  Europe’s  ability  to  react  rapidly,  efficiently  and 
transparently to a global food security crisis.  

Getting staple foods from rural communities in Bandundu (DRC) to market in 
Kinshasa 

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In the Congolese Province of Bandundu, the European Commission has strengthened 
farmers’  organisations  and  created  new  ones  to  help  them  market  their  staple  food 
products in Kinshasa There are four projects covering the following activities: 

- distributing improved plant varieties 

- training local organisations 

- creating warehouses 

- processing agricultural products 

- restoring and maintaining farm tracks 

- providing trucks and barges for transport 

- managing a central depot in Kinshasa. 

As  a  result,  production  has  significantly  increased  in  the  communities  concerned. 
During  2008-2010,  the  production  delivered  to  the  market  in  Kinshasa  increased 
threefold to more than 1 000 tonnes per year of staple food. The EU contribution to 
these projects was €13.5 million. 

The Food Security Thematic Programme 

The food security thematic programme was allocated a total of €240 million in 2010.  

The 2010 annual action plan covers targeted projects and local calls for proposals on linking 
relief,  rehabilitation  and  development  (LRRD)  and  innovative  approaches  to  combat  food 
insecurity. It includes amongst others: agricultural research for development (€54.5 million), 
operations  linked  to  crisis  and  fragility  (€42.8  million),  continental  regional  food  security 
programmes (€74.5 million) and technology transfer  for agriculture in Asia (€22 million). 

Food security is also supported through projects and programmes financed under the various 
geographic  development  instruments  like  the  ENPI,  DCI  and  EDF.  These  bring  the  total  of 
funds committed to agriculture, rural development, territorial planning and food security (as 
described in the European Consensus on Development) to €1.2 billion.  

3.2. 

Democracy and Human Rights 

In  promoting  human  rights  and  democracy  worldwide,  the  EU  uses  a  range  of  approaches, 
from  political  dialogue  and  diplomatic  initiatives  to  specific  instruments  of  financial  and 
technical  cooperation.  Improving  the  design  and  the  impact  of  EU  external  aid  by  ensuring 
coherence,  complementarity  and  synergy  between  the  geographic  and  thematic  instruments 
and programmes has been a priority in recent years. 

EIDHR 

The  European  Instrument  for  Democracy  and  Human  Rights  (EIDHR)74  is  a  self-standing 
funding instrument that complements and reinforces actions on human rights and democracy 

74 

Regulation (EC) No. 1889/2006 of 20 December 2006 

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around the world within the framework of relevant EU policies. With a budget of €1.1 billion 
for  2007-2013,  the  EIDHR  is  the  concrete  expression  of  the  EU's  intention  to  integrate 
support for democracy and human rights into all its external policies. 

The  EIDHR  has  a  broad  remit  and  supports  actions  in  all  aspects  of  democracy  and  human 
rights  protection,  including  in  the  socio-economic  sphere  and  MDG-related  goals  and  has  a 
particular  focus  on  gender  and  the  protection  of  minorities  or  vulnerable  groups  (such  as 
people with disabilities and child victims of armed conflicts). It also supports actions against 
racism, xenophobia and discrimination on any ground. 

The 2010 review of progress towards the Millennium Development Goals showed that human 
rights promotion remains a key factor. Discrimination has been highlighted by the UN High 
Commissioner  for  Human  Rights  as  a  crucial  obstacle  in  achieving  the  MDGs,  as 
development  can  fail  if  its  benefits  do  not  reach  groups  of  people  who  are  systematically 
disempowered, discriminated against or who suffer multiple human rights deprivations.  

EIDHR has made considerable provisions for country-specific small-scale projects (country-
based  support  schemes)  in  order  to  further  enhance  local  ownership  and  improve  access  by 
national civil society organisations. A total of 66 local calls for proposals were launched and 
434 grants contracts were signed in 2010 for a total value of €69 million. 

EIDHR  is  also  active  in  countries  where  the  EU  has  “difficult  partnerships”  and  where 
fundamental  freedoms  are  most  at  risk  and  geographic  development  programmes  meet 
obstacles. 

The fight against torture 

Between 2007 and 2010 the EIDHR financed more than 60 projects to fight torture 
(including  locally-managed  projects)  for  a  total  value  of  €44  million.  The  main 
focuses  were  on  the  implementation  of  EU  guidelines,  the  rehabilitation  of  torture 
victims, human rights training for the judiciary and for prison officers, the setting up 
of national prevention frameworks, and legal aid to defend victims from injustices.. 
The  EIDHR  offers  an  integrated  approach,  combining  the  rehabilitation  of  victims 
with torture prevention and efforts to end impunity for torturers. A good example of 
this  approach  is  the  project  on  torture  prevention  in  Ecuador.  Guatemala  and  Peru 
finalised  in  2010  with  an  EU  contribution  of  €700 000  in  partnership  with  local 
organisations  such  as  IPEDEHP  (Peru),  CEDHU  (Ecuador),  ICCPG  (Guatemala). 
More  than  5 500  targeted  persons  were  trained  on  prevention  of  physical  and 
psychological torture. A successful project to educate police and the military against 
torture  was  carried  out,  involving  an  effective  engagement  of  local  authorities,  the 
military,  policemen  and  social  leaders.  This  showed  that  education,  awareness-
training and the sharing of good practice could be key factors towards the eradication 
of  torture,  thus  contributing  to  the  consolidation  of  democracy  in  a  region  with  a 
troubled past. 

Lessons Learnt 

The  EU  has  committed  more  than  €40  milli on  during  2007-2013  to  support  human  rights 
defenders. In order to learn from its actions and to improve the impact of its work, the EIDHR 
has carried out a global evaluation on its support for human rights defenders. Its conclusions 
are  that  this  support  was  highly  relevant,  and  that  management  was  done  with  the  proper 

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flexibility,  openness  and  responsiveness.  The  support  included  emergency  protection, 
reimbursement  of  medical  or  legal  fees,  the  purchase  of  secure  IT  equipment  or  cellular 
phones, and temporary support for a grass-roots human rights organisation during a difficult 
situation.  The  report  said  that,  in  future,  attention  should  be  paid  to  avoid  duplication  of 
effort,  reinforce  the  quality  of  local  partnerships,  increase  direct  support  to  human  rights 
defenders  and  ensure  a  cohesive  and  strategic  approach  in  the  overall  selection  of  projects. 
The evaluation results were taken into account for the launch of the global call for proposals 
in 2010 for providing support to human rights defenders. The response to the call showed a 
growing demand in this crucial sector of EIDHR activity.75 

In  response  to  a  recommendation  of  several  EIDHR  evaluations  for  more  analysis  and 
monitoring, a maximum of 3% of the country specific budgets had been used to support local 
organisations  develop  project  cycle  management  and  internal  procedures.  From  2011  this 
threshold will be raised to 10% to strengthen local capacities further, thereby also obtaining 
greater ownership at local level for civil society organisations. 

The Palermo II process  

The Commission launched the "Palermo II process" in 2010, an initiative aimed at creating a 
new dialogue on aid effectiveness with stakeholders in EU external cooperation: civil society 
organisations, EU Member States and the European Parliament. Democracy and human rights 
form an important pillar in this process. As an example, the Amman regional conference (29 
June-1  July)  helped  spread  best  practices  on  EIDHR  implementation  in  the  European 
neighbourhood region. It highlighted several needs:  

•  simplification and predictability of grants;  

•  more strategic insight by CSOs as regards their sustainability;  

•  creation of genuine CSO networks to limit fragmentation and exacerbated competition for 

funds;  

•  more support for human rights defenders in difficult situations. 

As  a  follow-up  of  the  dialogue  and  consultation  processes,  the  EIDHR  has  now  been  given 
additional flexibility, so that recipients can pass on small amounts of their grants to other local 
entities or individual human rights defenders.  

Improved visibility 

A  first  compendium  was  published  in  2009  to  give  an  overview  of  all  EIDHR  projects  by 
theme, including a short description of each project. This was followed in 2010 by regional 
compendia  prepared  in  advance  of  the  regional  events  organised  in  the  framework  of  the 
structured dialogue. These compendia cover all projects funded in the ENP and central Asian 
region,  Latin  America  and  Asia.  Additionally,  the  first  thematic  compendium  on  the  death 
penalty76 was also published in 2010 and the EIDHR brochure was translated into Arabic and 

75 
76 

http://ec.europa.eu/europeaid/what/human-rights/studies_evaluations_en.htm 
http://ec.europa.eu/europeaid/what/human-
rights/documents/compendium_abolition_of_the_death_penalty_en.pdf 

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Russian, in order to provide access to a broader public and to reinforce publications produced 
by EU delegations. 

Protection and promotion of human rights through mainstreaming 

The  Commission  is  committed  to  mainstreaming  human  rights  throughout  its  activities,  as 
outlined by the European Consensus on Development. 

As  an  example,  the  EU  supported  several  projects  in  2010  in  the  justice  sector  within  the 
bilateral  cooperation  framework.  Tailored  to  each  country's  legal  system,  social  values  and 
accepted principles, these projects were centred on ensuring better access to justice for people 
and  guaranteeing  respect  for  the  human  rights  of  persons  processed  through  the  justice 
system.  

Various  approaches  were  designed  for  this  purpose,  from  support  to  institutional  reforms 
aimed  at  strengthening  the  independence,  impartiality  and  professionalism  of  the  judiciary 
(Moldova  and  Ukraine),  to  better  compliance  with  European  standards  concerning 
democracy, human rights and rule of law, both in legislation and practice (via the Council of 
Europe  facility  for  eastern  partnership  countries),  as  well  as  promoting  the  liberalisation  of 
sentencing policies and practices and the rights of detainees (Georgia). 

Based  on  the  review  of  EU  support  for  justice  reform  in  ACP  countries  since  2000,  a  first 
reference  document  on  justice  was  produced  in  2010.  It  provides  an  overview  of  the  main 
features of the justice sector and the approaches of other donors as well as an analysis of the 
justice sector components and its major actors. It should provide the European Commission 
with strategic and operational guidance including for countries in a fragile situation. Its main 
purpose  is  to  assist  staff  in  EU  Delegations  and  at  headquarters  level  in  the  design  and 
implementation  of  justice  reform  programmes.  This  will  be  followed  in  2011  by  a 
complementary analysis covering the EU support for justice reform in other regions. 

Democracy support 

In November 2009, the EU Council adopted Conclusions77 dedicated to democracy support. 
These  provided  the  first  strategic,  concrete  orientations  for  a  broader  and  more  coherent 
policy  to  support  democracy  in  the  EU’s  external  relations,  going  further  than  earlier  more 
general policy statements. They acknowledged that the EU has a wide array of financial and 
political  instruments  at  its  disposal,  but  that  there  is  room  for  improvement  in  how  existing 
policies  are  implemented.  The  Council  Conclusions  also  contained  an  agenda  for  action 
focused on six areas: country-specific approach; dialogue and partnership; EU coherence and 
coordination; mainstreaming; international cooperation and visibility. In December 2010, the 
Commission  presented  a  first  report.  The  Council  followed  by  adopting  a  new  set  of 
conclusions.78.  These  also  identify  12  pilot  countries  where  the  agenda  of  action  is  to  be 
implemented  as  well  as  a  request  for  immediate  further  action  and  regular  feedback  to  the 
Council on progress.  

Council Conclusions on Democracy Support in the EU’s External Relations 

77 
– Towards Increased Coherence and Effectiveness, 16081/09 
78 

Council conclusions on Democracy Support in the EU's External Relations - 2010 Progress Report and 
list of proposed pilot countries, 3058th FOREIGN AFFAIRS Council meeting Brussels, 13 December 
2010 

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Electoral processes 

Elections are an essential component of democratic governance. Actions supporting genuine 
elections can make a relevant contribution to peace and development objectives. EU support 
for  elections  is  provided  in  two  complementary  forms:  electoral  assistance  and  EU  election 
observation missions.  

The importance of ensuring an appropriate follow-up to recommendations from EU Election 
Observation  Missions  (EU  EOM)  has  been  acknowledged.  Follow-up  missions  are 
systematically  organised  to  discuss  the  EU  EOM  final  report  and  its  recommendations  with 
stakeholders. Positive reactions to the final reports and recommendations were received from 
the national authorities in countries like Bolivia, Mozambique and Yemen.  

Over  the  last  six  years  (2005-2010),  the  EU  has  spent  nearly  €600  million  or  about  €100 
million  a  year  on  electoral  assistance.  The  money  comes  from  geographic  programmes,  the 
Instrument  for  Stability  and  the  EIDHR.  It  delivers  capacity-building  and  technical  and 
material  support  to  electoral  processes  in  nearly  60  countries.  Almost  two  thirds  of  the 
support  was  geared  towards  Sub-Saharan  Africa.  A  big  part  went  to  post-conflict  countries 
such as the DRC, Afghanistan, Sudan, Ivory Coast and Iraq.  

Efforts  are  increasing  to  create  more  synergies  between  observation  missions  and  electoral 
assistance  by  integrating  EU  EOM  recommendations  into  electoral  assistance  operations, 
making sure such recommendations are feasible and realistic for the country concerned, and 
ensuring that EU EOMs also benefit from the experience gained through electoral assistance. 

Sudan: Towards active participation in the election process 

A good example of promoting the electoral participation of women in Sudan is the 
2009  project  “Towards  active  participation  in  the  election  process”,  which  is  still 
ongoing  in  Nuba/South  Kordofan.  The  aim  was  to  raise  awareness  among  rural 
people and women, provide education on civil rights, census, voter registration, and 
the  use  of  local  radio  and  cassettes  to  spread  voting  information.  It  also  sought  to 
empower  local  community  leaders  to  participate  and  monitor  elections,  promote 
dialogue  between  political  parties  and  encourage  the  participation  of  women  and 
marginalised  groups.  This  project  was  well  integrated  with  the  purpose  of  the  EU 
electoral  observation  mission  and  effectively  complemented  the  work  of  other 
donors.  

In 2010, the EU supported electoral assistance programmes/projects in a number of countries 
including Bolivia, Burundi, Comoros, Ivory Coast, Central African Republic, Ghana, Guinea, 
Haiti,  Kenya,  Kyrgyzstan,  Liberia,  Moldova,  Niger,  Nigeria,  Sierra  Leone,  Sudan  and  the 
Portuguese-speaking  countries  through  the  PALOP-TL  programme.  These  programmes  cost 
about €100 million which was provided by the EDF, DCI, and IfS.  

Knowledge  development  and  collaboration  with  the  main  actors  remain  EU  priorities.  A 
pioneer  thematic  workshop  on  "Elections,  Violence  and  Conflict  Prevention",  organised  by 
UNDP, International IDEA and the European Commission, took place in Barcelona in March 
2010. It was the ninth workshop organised as part of a training initiative launched by the three 
partners  in  2005.  Since  then,  new  partners  have  joined  through  the  Train4Development’s 
subgroup  on  effective  electoral  assistance  and  the  global  training  platform:  the  Canadian 

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International  Development  Agency,  the  Organisation  of  American  States,  the  International 
Organization for Migration and the Spanish ministry of foreign affairs and cooperation.  

Electoral assistance is often an entry point for wider action to support democracy and should 
be seen as complementary to other democratic governance activities. Some current electoral 
assistance  programmes  already  include  a  media  component  to  provide  equal  access  to 
information  and  exposure  for  all  parties  and  views  involved  in  elections.  They  usually  also 
aim  at  strengthening  the  participation  of  civil  society  via  support  for  domestic  observer 
missions  and  civic  education.  Efforts  are  ongoing  to  make  parliamentary  development  an 
integral  part  of  electoral  assistance.  In  this  way,  stronger  elected  institutions  can  play  their 
part  in  delivering  the  dividend  of  democratic  elections.  While  this  has  happened  in  a  few 
countries (e.g. Tanzania and Pakistan), it is not yet a common practice and needs therefore to 
be further encouraged. 

Scaling up work with parliaments worldwide 

Effective parliaments are at the heart of democratic systems. A study was completed in 2010 
to  review  how  the  EU  supported  parliaments  in  ACP  countries  over  the  past  decade  and  to 
provide practical guidance for future support to parliamentary institutions.  

The  assessment  offers  a  mixed  picture.  A  little  more  than  €100  million  was  spent  to 
strengthen ACP parliaments between 2000 and 2009 in 30 countries. The level of EU funding 
and the quality of contributions varied widely. The assessment reveals that successful projects 
were  those  based  on  careful  groundwork,  where  there  was  an  understanding  of  the  overall 
governance  environment  and  of  the  motives  of  political  actors.  Too  often  activities  to 
strengthen institutions have focused on the executive branch of government at the expense of 
the legislature. The EU needs to do more to meet its policy commitments in terms of support 
for democracy, aid effectiveness and domestic accountability. 

Successful  projects  tended  to  take  a  longer-term  approach  and  occurred  where  there  is  a 
positive  environment  for  democratic  development.  They  demonstrate  strong  national 
ownership,  clear  objectives,  strong  delegation  of  ownership,  and  thorough  programme 
planning.  

As  part  of  the  assessment,  field  studies  were  carried  out  in  Senegal  and  South  Africa.  The 
South  African  example  underlines  the  value  of  long-term,  intensive  EU  involvement.  The 
sector  approach  used  by  South  African  national  and  provincial  parliaments  facilitates  a 
common development agenda across national and sub-national legislative institutions. It is an 
innovative  approach  that  offers  a  good  practice  example  for  other  political  systems  with 
national  and  sub-national  legislatures.  The  EU-supported  South  African  legislative  sector 
projects  placed  a  strong  emphasis  on  the  representative  functions  of  parliament  and  helped 
extensive  participatory  approaches  to  be  institutionalised.  In  the  current  (2009-2013)  third 
phase,  support  is  provided  through  sector  budget  support  and  complementary  support  is 
currently  been  prepared  to  leverage  some  of  the  good  practice  of  South  Africa’s  legislative 
sector with other parliaments in the region.  

Strengthening parliament’s representative role in Tanzania 

Context:  National  elections  in  2007  and  Tanzania’s  renewed  commitment  to 
democracy  created  momentum  to  consolidate  and  intensify  good  and  accountable 
governance practices. 

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Programme:  The  programme  supports  the  Tanzanian-led  Deepening  Democracy 
initiative  to  build  the  capacity  of  national  governance  institutions  and  political 
parties.  The  four-year  programme  began  in  2008.  The  EU  is  contributing  €1.4 
million  of  the  programme’s  €9.5  million  budge t.  The  strategic  plan  supporting  the 
parliamentary  component  is  complete  and  is  guiding  multi-donor  support  for  the 
parliament's corporate plan. Particular emphasis is being placed on strengthening the 
capacity  of  key  parliamentary  committees  and  parliament’s  responsiveness  to  civil 
society. 

Main  activities:  Training  for  the  secretariat  of  the  national  parliament  and  the 
Zanzibar house of representatives, constituency outreach seminars to support public 
understanding of the role of representatives and constituents, wide dissemination of 
issues  around  parliamentary  work  through  Speaker’s  forums,  and  focusing  media 
attention on events and key messages promoting citizen-parliamentary engagement. 

Key findings: This programme has made chairpersons of parliamentary committees 
more  competent  to  review  the  budget  and  scrutinise  bills.  It  has  also  increased 
dialogue  between  parliament  and  civil  society.  The  involvement  of  civil  society  in 
the  review  of  bills  has  increased  its  influence  on  legislation.  The  strengthening  of 
civil society has proved to be a positive factor underpinning the sustainability of the 
programme. 

Building on the assessment and on existing parliamentary development expertise, a reference 
document  was  completed  “Engaging  and  Supporting  Parliaments  Worldwide:  EC  strategies 
and methodologies for action to support parliaments”79. The publication serves as a practical 
tool  for  EU  staff  and  other  stakeholders,  presenting  ways  of  engaging  with  and  supporting 
parliaments in partner countries. Together with a training module, organised in collaboration 
with  the  European  Parliament's  office  for  promotion  of  parliamentary  democracy,  this  will 
help to enhance results of parliamentary support80.  

79 
80 

French and Spanish versions will be available by March 2011. 
For  further  information  on  parliamentary  development  please  visit  http://www.agora-parl.org,  the 
reference website on parliamentary development, in which the EC is a partner, or check the democracy 
corner of Cap4Dev.  

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Table 27 EIDHR - Breakdown by sector of external aid financed on the general EU Budget managed by 
EuropeAid in 2010

Commitments in € million

9 (5%)

Disbursements in € millio n
8 (5%)

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

157 (95%)

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

146 (95%)

Others - including emergency
assistance, reconstruction relief

Mains sectors : Government and civil society, Administratives costs related to EIDHR
Bilateral and multilateral ODA (EuropeAid only).

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Table 28 EIDHR - Breakdown by region of external aid financed on the general EU Budget managed by 
EuropeAid in 2010

Commitments ( € million )

ENPI East

ENPI South

Asia

Latin America

ACP

Regional

164 (99%)

Disbursements ( € million )

31 (20%)

22 (14%)

6 (4%)

ENPI East

ENPI South

23 (15%)

Asia

Latin America

58 (38%)

14 (9%)

ACP

Regional

Beneficiary countries not identified at commitment stage. (multi-regional call for proposal)
Bilateral and multilateral ODA (EuropeAid only).

Table 29 EIDHR - External aid financed on the general EU Budget managed by 
EuropeAid

€ millions

2007

2008

2009

2010

Commitments

            142                 153                 162    

           166    

Disbursements

            130                 121                 131    

           160    

Bilateral and multilateral flows (EuropeAid only).

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3.3. 

Stability 

3.3.1.  Crisis response and preparedness 

In  its  first  four  years,  the  EU’s  Instrument  for  Stability  (IfS)  allocated  €482  million  to  154 
actions worldwide in response to short-term crisis situations. During 2010, the entire budget 
of €135.9 million was committed for a wide range  of measures. The following examples show 
how the IfS provides significant and visible EU responses to many crisis situations around the 
globe.  

Haiti – following on the devastating earthquake in January 2010:  

• 

IfS  support  enabled  the  EU  to  take  part  in  the  intensive  and  high-profile  Post-Disaster 
Needs  Assessment  undertaken  with  the  UN  and  the  World  Bank  in  preparation  for  the 
Haiti donors’ conference in Montreal. 

•  A new €20 million EU IfS programme is working 

in partnership with experts from civil 
protection services in five Member States to improve the disaster preparedness capacities 
of the Haitian civil protection services. The IfS programme also contributed to a ‘Cash for 
Work’ scheme (through UNDP), providing the Haitian national leadership with strategic 
advice on issues related to the reconstruction of the country. 

•  A  further  €5  million  IfS  action  provided  support  for  the  crucial  presidential  and 
parliamentary  elections,  complementing  the  efforts  of  the  EU  election  observation 
mission.  

Pakistan - the case of Pakistan demonstrates the versatility of the IfS as a crisis response tool. 
Two emergency response measures were mobilised to respond to: 

•  The  political  crisis  in  the  north-west  region  bordering  on  Afghanistan,  where  a  €15 

million post-conflict recovery package has been put in place; and  

•  The unprecedented flooding disaster, where the IfS funded an €18 million early recovery 

programme in addition to the EU’s humanitarian aid effort. 

Sudan - in advance of the January 2011 referendum on self-determination for southern Sudan, 
the Commission decided in May on an IfS contribution of €15 million so as to:  

•  provide  EU  experts  and  other  support  for  organising  the  referendum  process  and  the 
ensuing negotiations between the north and south to seek an agreement on sensitive post-
referendum  arrangements.  This  IfS  action  was  complemented  by  an  EU  observation 
mission for the referendum; 

•  secure a stable ‘peace dividend’ to the rural population of south Sudan (through delivery 
of basic services in cooperation with DfID/UK), thus bridging a gap until longer-term EU 
development funding (via the EDF) can be provided later in 2011. 

Philippines – at the request of the parties concerned, the government of the Philippines and 
the Moro Islamic Liberation Front (MILF), the EU contributes to their peace process through: 

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•  a  politically  significant  IfS  action  (€3  million)  put  in  place  to  help  monitor  the  parties' 
compliance  with  their  commitments  on  humanitarian,  rehabilitation,  and  development 
activities in the south of the country;  

• 

IfS  support  for  NGOs  monitoring  protection  activities  and  backing  for  the  political 
dialogue process through an international contact group chaired by Malaysia. 

Somalia  -  The  EU  has  given  priority  to  a  comprehensive  approach  to  tackle  the  scourge  of 
piracy  off  the  coast  of  Somalia.  The  IfS  has  made  an  essential  contribution  through  jointly 
developed EU-UNODC programmes to support piracy trials in Kenya (since May 2009) and 
the Seychelles (from early 2010). This provides a necessary complement to the EU’s Atalanta 
naval operation carried out under the Common Security and Defence Policy, which relies for 
its success on being able to transfer suspected pirates for trial in these regional countries. 

Other IfS activities in 2010 included support for stabilisation efforts in Georgia and Nagorno-
Karabakh,  as  well  as  in  Kyrgyzstan  (following  the  political  crisis  of  summer  2010)  and 
northern Ecuador (where there is a large presence of Colombian refugees).  

Reconciliation, mediation, dialogue and other peace building processes have been supported 
in areas such as Aceh in Indonesia, in Laos where support is given to dialogue between the 
Lao administration and the displaced Hmong, and for the wider Middle East.  

The  implementation  of  peace-building  measures  at  inter-community  level  in  the  east  of  the 
Democratic  Republic  of  Congo  has  been  completed,  as  has  IfS  support  for  cross-border 
cooperation with Rwanda and Uganda on patrolling national parks straddling their borders, as 
a way to help smooth the often difficult relations between these countries. 

Concerning crisis preparedness measures to build and consolidate civilian expertise for global 
peace-building  work,  the  IfS  ‘Peace-building  partnership’,  with  a  budget  of  €20  million  in 
2010, has focused on:  

•  establishing  a  civil  society  dialogue network  on  peace-building  issues  and  capacity-

building support for civil society actors active in this field;  

•  cooperating with UN bodies (UNDP, UNISDR) on activities related to natural resources 
and conflict, disaster risk reduction, and disarmament, de-mobilisation and re-integration 
(DDR); 

• 

training police and civilian experts for deployment in international stabilisation missions 
to conflict areas. This is done at police training academies with a range of leading civilian 
training bodies from EU Member States. 

3.3.2.  Global and regional trans-border challenges 

Global and regional trans-border challenges are addressed by actions funded under the long-
term component of the Instrument for Stability81. These cover trans-regional security threats, 
as  well  as  chemical,  biological,  radiological  and  nuclear  (CBRN)  risks.  Two  annual  action 

81 

Regulation (EC) No 1717/2006 of the European Parliament and of the Council of 15 November 2006 establishing 
an Instrument for Stability  

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programmes  on  trans-regional  threats  and non-proliferation  of  weapons  of  mass  destruction 
were implemented in 2010.  

CBRN risk mitigation 

Support was agreed for a second phase of a project to establish regional centres of excellence 
on  chemical,  biological,  radiological  and  nuclear  threats  in  cooperation  with  the  United 
Nations and other major donors. A total of €21.5  million has been earmarked for up to four 
new centres in the Middle East, the Mediterranean basin, the southern Caucasus and central 
Asia. These centres could also play a role in linking the external and internal dimensions of 
CBRN risk mitigation. 

To strengthen the analytical capacity of the International Atomic Energy Agency (IAEA) the 
Commission  agreed  to  contribute  €5  million  to  support  the  IAEA  Safeguards  Analytical 
Laboratory.  

Trans-regional threats 

On 1 March 2010, the EU launched its cooperation with the Regional Centre on Small Arms 
and Light Weapons (RECSA) in southern and eastern Africa. RECSA is engaged in the fight 
against  illicit  trade  in  and  excessive  accumulation  of  firearms,  including  activities  to 
strengthen  law  enforcement  agencies’  cooperation,  training  on  marking  and  tracing 
techniques,  and  awareness-raising.  The  IfS  is  supporting  the  establishment  of  a  database 
managed by Interpol to track illicit trafficking of stolen or lost small arms and light weapons. 

A  first  EU-sponsored  counter-terrorism  programme  for  the  Sahel  region,  including  Mali, 
Mauritania,  and  Niger,  was  launched  in  December  2010  at  a  high-level  seminar  in 
Nouakchott. The first phase of the programme has a budget of €4.5 million. It is timely, given 
deteriorating security in the Sahel, and is part of a broader EU effort to support this volatile 
region. 

The second phase of the trans-regional cocaine route programme, with a total budget of €19 
million was successfully launched. It funds capacity-building measures in Latin America, the 
Caribbean  and,  in  particular,  west  Africa.  It  involves  law  enforcement  authorities  from  EU 
Member States. 

In  addition,  the  IfS  critical  maritime  routes  programme,  with  a  total  budget  of  €14  million, 
entered its second phase with the establishment of a training centre in Djibouti and a regional 
information centre in Sana’a (Yemen). The programme helps build capacities of coastal states 
around the Horn of Africa to counter piracy and other forms of organised crime by improved 
maritime  surveillance  and  training  in  maritime  law  enforcement  Support  for  investigations 
into piracy organisers and funders has been initiated with Interpol. 

Beyond the western Indian Ocean, the IfS contributed €500 000 to a project of the International 
Maritime Organisaion in the Straits of Malacca and Singapore to increase the preparedness and 
response  capabilities  of  coastal  states  against  incidents  involving  hazardous  and  noxious 
substances. The programme has also started work in the Gulf of Guinea. 

Through  the  IfS  expert  support  facility  on  trans-regional  threats  and  threat-preparedness, 
about 100 experts from 17 EU Member States belonging to 60 organisations and institutions 

EN 

136 

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have carried out more than 100 fact-finding visits and missions to west Africa, north Africa 
and the Middle East, the Sahel, southeast Asia, central and south America and the Caribbean. 

Table 30 IFS - Breakdown by sector of external aid financed on the general EU Budget managed by 
EuropeAid and DG External Relations in 2010

Commitments in € million

63.2 (35% )

0.0 (0%)

Disbursements in € millio n

38 (30%)

0.7 (1%)

0.0 (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

119.9 (65%)

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

87.5 (69%)

Others - including emergency
assistance, reconstruction relief

Bilateral and multilateral ODA (EuropeAid + DG External Relations)

EN 

137 

   EN 

 
 
Table 31 IFS - Breakdown by region of external aid financed on the general EU Budget managed by 
EuropeAid and DG External Relations in 2010

Commitments ( € million )

27.2 (19%)

7.9 (5% )

0 (0%)

ENPI East

ENPI South

Asia

Latin America

64.9 (45%)

ACP

Regional

ENPI East

ENPI South

Asia

Latin America

3 (2%)

18.6 (15%)

Disbursements ( € million )
10.2 (8%)

42.2 (36%)

12.3 (10%)

31.1 (26%)

ACP

Regional

Bilateral and multilateral ODA (EuropeAid + DG External Relations)

Table 32 IFS - External aid financed on the general EU Budget managed by 
EuropeAid and DG External Relations

€ millions

2007

2008

2009

2010

Commitments

            137                 181                 187    

           224    

Disbursements

              49                 129                 144    

           154    

Bilateral and multilateral ODA (EuropeAid + DG External Relations)

EN 

138 

   EN 

 
 
 
3.4. 

Nuclear Safety 

The EU continued its support for nuclear safety projects in the countries of the former Soviet 
Union under the TACIS (Technical Assistance to the Commonwealth of Independent States) 
programme. The main current challenges are to:  

•  strengthen the regulatory authorities in Russia, Ukraine, Armenia, Belarus and Georgia;  

•  promote an effective nuclear safety culture at all levels; 

• 

improve the management policies on spent fuel and radioactive waste.  

In  2010,  the  Commission  transferred  the  balance  of  the  2009  pledge  to  the  Nuclear  Safety 
Account  (€15  million).  An  additional  contribu tion  of  €17  million  to  the  Chernobyl  shelter 
fund  was  transferred,  following  the  adoption  of  the  2010  annual  action  programme  of  the 
Instrument  for  Nuclear  Safety  Cooperation  (INSC).  TACIS  nuclear  safety  projects  on 
radioactive waste management are still ongoing at the Chernobyl site, with a total budget of 
around  €14  million.  The  establishment  of  a  comp rehensive  radiation  monitoring  and  early 
warning  system  in  the  Chernobyl  exclusion  zone  has  been  completed.  Almost  all  the 
radioactive waste management projects foreseen in the 2008 INSC annual action programme 
have  been  contracted  (total  commitment  of  €5.3  million).  In  Armenia,  the  EU  provided  on-
site  assistance  to  the  Medzamor  nuclear  power  plant  and  to  the  Armenian  regulatory 
authority.  

The Instrument for Nuclear Safety Cooperation came into force on 1 January 2007. Its main 
objectives  are  to  promote  high  level  nuclear  safety  and  radiation  protection,  plus  the 
application  of  efficient  and  effective  safeguards  of  nuclear  material  in  non-EU  countries, 
worldwide.  The  2010-2011  indicative  programme  has  been  adopted.  Following  exploratory 
missions to Jordan and Egypt in 2008, the EU conducted similar expert missions in southeast 
Asia,  the  Maghreb  and  Latin  America  in  2009.  In  2010,  the  first  visits  to  Mexico  and 
Argentina took place. As a result of these missions, projects to support regulatory authorities 
have been defined for Vietnam, Philippines, Morocco, Mexico and Brazil. A project to train 
the  staff  of  the  nuclear  regulator  in  China  was  transferred  from  the  International  Atomic 
Energy Agency (IAEA) to the INSC programme. New projects for Morocco and Jordan have 
been included into the 2010 AAP. Additional projects for activities in Brazil were prepared. 

Cooperation  with  the  IAEA  included  the  final  phase  of  implementation  and  the  subsequent 
reporting of a joint project on the safety evaluation of Ukrainian nuclear power plants with all 
assessments based on IAEA safety guides. Funding of €4 million was also agreed, mainly for 
projects with the IAEA in non-CIS countries. 

In  addition,  radioactive  waste  management  projects  have  been  adopted  for  Uzbekistan, 
Mexico and the Ukraine. A regional project aimed at the remediation of uranium legacy sites 
in central Asia was agreed.  

In  Ukraine,  on-site  assistance  projects  foreseen  under  the  2008  and  2009  AAPs  are  being 
implemented  in  all  nuclear  power  plants.  An  additional  €9  million  has  been  allocated  to 
operational and maintenance projects. 

EN 

139 

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The national training centre for maintenance and management in Zaporozhye (Ukraine), has 
been  the  object  of  a  major  project  to  provide  training  to  all  staff  of  the  National  Nuclear 
Energy Generating Company of Ukraine (NNEGC Energoatom). 

A new activity for training and tutoring staff of the national regulatory authorities and their 
technical  support  offices  has  been  launched.  For  this  first  year  of  implementation,  €2.5 
million  have  been  allocated  to  this  activity.  It  will  concern  all  candidate  countries  eligible 
under the INSC.  

Table 33 NSI - Breakdown by sector of external aid financed on the general EU Budget managed by 
EuropeAid in 2010

Commitments in € million
1.2 (2%)

Disbursements in € millio n

1 (2%)

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

69.3 (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

61.3 (98%)

Others - including emergency
assistance, reconstruction relief

Main sector : Nuclear power plants
Bilateral and multilateral ODA (EuropeAid only).

EN 

140 

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Table 34 NSI - Breakdown by region of external aid financed on the general EU Budget managed by 
EuropeAid in 2010

Commitments ( € million )

18.9 (27%)

ENPI East

ENPI South

0 (0%)

6.3 (9%)

3.5 (5%)

2.7 (4%)

Disbursements ( € million )

6.1 (10%)

39.1 (55%)

Asia

Latin America

ACP

Regional

ENPI East

ENPI South

Asia

Latin America

ACP

Regional

55.5 (89%)

Bilateral and multilateral ODA (EuropeAid only).

Table 35 NSI - External aid financed on the general EU Budget managed by 
EuropeAid

€ millions

2007

2008

2009

2010

Commitments

         78.01              72.49              74.89    

        70.63    

Disbursements

         56.27              76.33              76.94    

        88.80    

Bilateral and multilateral flows (EuropeAid only).

EN 

141 

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3.5. 

Humanitarian assistance 

3.5.1. 

Introduction 

The  aim  of  the  Commission’s  Directorate-General  for  humanitarian  aid  and  civil  protection 
(DG ECHO) is to save and preserve life, prevent and alleviate human suffering, and safeguard 
the integrity and human dignity of populations affected by natural or man-made disasters. The 
mandate  is  to  ensure  rapid  and  effective  delivery  of  EU  relief  to  people  faced  with  the 
immediate consequences of disasters.  

The  aspect  of  civil  protection  has  been  included  in  this  policy  area  so  as  to  facilitate 
cooperation  in  civil  protection  activities  associated  with  major  emergencies  which  may 
require urgent response action. 

3.5.2. 

Implementation of humanitarian aid 

The  EU  intervenes  when  and  where  crises  or  natural  disasters  occur,  helping  millions  of 
affected people  around the world.  In 2010, the Commission's response to  new or  protracted 
crises  totalled  €1.1  billion  and  provided  humanita rian  assistance  in  80  third  countries  and 
activating the civil protection mechanism for 28 crises inside and outside the EU. 

The initial budget was increased on several occasions in order to respond to new crises and 
natural disasters occurring during the year, like those in Haiti and Pakistan.  

Humanitarian  assistance  was  provided  to  cope  with  the  consequences  of  the  following 
disasters: 

• 

floods in Benin, Burkina Faso, Bangladesh, Colombia and Pakistan;  

•  earthquakes in Chile, Haiti and Indonesia;  

•  cyclones in south Asia, central America and Laos; 

•  droughts in Bolivia, Djibouti, the Greater Horn of Africa, Sahel region;  

•  epidemics in DRC, Haiti, Malawi, Zimbabwe and southeast Asia.  

•  Specific assistance was also provided to Mongolia (affected by the Dzud82 phenomenon), 
Bangladesh (rodent crisis), Philippines (El Nino) and Guatemala (hit by a series of natural 
disasters - volcanic eruption, tropical storm, tropical depression after a severe drought in 
2009).  

The civil protection mechanism was activated 28 times during the year, within and outside the 
EU,  to  cope  with  floods  in  Albania,  Benin,  Bosnia  &  Herzegovina,  Colombia,  Hungary, 
Montenegro, Poland, Romania, Tajikistan and Pakistan; earthquake and cholera epidemics in 
Haiti;  an  earthquake  in  Chile;  oil  spill  in  the  Gulf  of  Mexico;  violent  windstorm  (Xynthia) 
affecting western Europe; forest fires in France, Portugal and Israel; snow storms in the UK 

82 

Natural  phenomenon  arising  from  continuous  heavy  snowfall  combined  with  extreme  cold  and 
preceded by dry summers 

EN 

142 

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and  the  Netherlands;  hurricanes  and  tropical  storms  in  Guatemala  and  Haiti;  and  finally  an 
industrial accident in Hungary. 

To  deal  with  'man-made  crises',  the  Commission  intervened  after  inter-ethnic  clashes  in 
southern  Kyrgyzstan  in  June  2010  to  supply  shelters,  food  assistance,  legal  counselling  and 
protection. In Yemen, the political and humanitarian situation deteriorated with several open 
internal conflicts across the country. Instability in the Horn of Africa, particularly in Somalia, 
increased  the  flow  of  persons  landing  on  Yemen's  shores  as  refugees  and  asylum  seekers. 
Military operations in Pakistan worsened the plight of people displaced by the unrest in the 
northwest  of  the  country  in  2009  making  about  three  million  people  dependent  on 
humanitarian assistance. At the end of the year, the Ivory Coast faced a post-electoral crisis 
leading to a civil conflict which also affected neighbouring countries. 

In  addition  to  these  crises,  the  Commission  had  to  manage  several  protracted  and  complex 
emergencies such as: 

•  Sudan where increased insecurity, including frequent targeted kidnapping and harassment 
of  humanitarian  actors,  and  extremely  limited  access  has  contributed  to  the  almost 
complete  disappearance  of  humanitarian  activities  in  Darfur.  Interventions  are  largely 
limited  to  camps  via  partner  organisations  who  are  working  in  extremely  precarious 
conditions; 

•  The occupied Palestinian territory where the population continues to live in hardship and 
social  distress.  In  the  West  Bank,  Israeli  settlements  growth,  settler  violence  against 
Palestinians, and the security barrier continue to affect everyday life. One quarter of the 
Palestinian population is considered as being food-insecure; 

•  The Democratic Republic of Congo, where fighting, sexual violence and displacement of 
populations have persisted throughout the year although a gradual stabilisation has been 
noted in some parts of the country. 

The Commission also pays particular attention to forgotten crises that have been neglected or 
overlooked by the international humanitarian community and/or media. In 2010, 13% of the 
initial operating budget was dedicated to these crises.  

One  of  its  main  supporting  roles  is  to  ensure  access  in  situations  where  humanitarian 
operations  are  under  threat.  This  is  particularly  the  case  in  protracted  conflicts.  The  general 
lack of security and increased targeting of humanitarian workers remained major sources of 
concern.  

Following the needs-based approach, humanitarian assistance and civil protection assistance 
were provided to the following regions.  

Table  36  -  Humanitarian  assistance  and  civil  protection  assistance  per  country  (€ 
million) 

EN 

143 

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Region/country

A mount

%

Africa

  Sudan & Chad

  Central Africa

  Horn of Africa

  Southern A frica, Indian Ocean

  West Afric a

Middle Eas t, Mediterranean, Caucas us

  Midd le East, M editerranean 

  Caucasus

As ia

  Central a nd  South West Asia

  Central S ou th Asia

  South East and  East Asia

Latin Am erica, Carrib ean & P acific

  Latin America  

  Caribbean & P acific

Civil P rotec tion
  Insid e EU
  Rapid Response p rep aratory action

  Outside EU

World wide (ca pacity build ing, tech nical assistanc e, support)

TOTAL

46 9

16 9

8 5

9 6

3 2

8 7

9 8

9 6

2

28 1

19 8

3 4

4 9

15 9

3 5

12 4

2 8
1 4
7

7

8 0

1 11 5

42%

9%

25%

14%

3%

7%

100% 

More details on EU operations in the field of humanitarian aid and civil protection in 2010, 
are available in the annual report on implementation of humanitarian aid83.  

3.5.3.  Humanitarian assistance policy 

Many  of  the  overarching  policy  issues  regarding  humanitarian  aid  are  reflected  in  the  2007 
European  Consensus  on  humanitarian  aid  and  its  action  plan.  A  mid-term  review  of  the 
Consensus action plan was completed in autumn 201084, which confirmed solid progress in all 
areas85. 

Acute  food  and  nutrition  insecurity  continued  to  affect  a  large  number  of  vulnerable 
populations, who make up about 10% of the close to one billion food insecure people in the 
world.  In  March,  the  Commission  adopted  a  Communication  on  Humanitarian  Food 
Assistance86. It lays out the policy framework for EU action to strengthen efforts to address 
food insecurity in humanitarian crises, looking for the most appropriate mix of response tools 
to provide efficient and effective food assistance in a given humanitarian context. 

83 
84 
85 
86 

http://ec.europa.eu/echo/media/publications/annual_reports_en.htm 
COM(2010)722, 8.12.2010, SEC(2010)1505, 8.12.2010 
http://ec.europa.eu/echo/policies/consensus_en.htm 
COM(2010)126 http://ec.europa.eu/echo/policies/food_assistance_en.htm 

EN 

144 

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The  Commission  also  adopted  a  communication87  on  European  disaster  response  capacity 
which aims  at improving  its effectiveness, coherence and visibility by building on the main 
components  –  humanitarian  aid  and  civil  protection  –  as  well  as  military  support  where 
needed  and  appropriate,  within  and  outside  EU.  Lessons  learnt  from  Haiti,  Pakistan,  and 
recent natural disasters within Europe will shape proposals for the way ahead.  

In  line  with  the  Lisbon  Treaty  (article  214.5),  the  Commission  plans  to  set  up  a  European 
Voluntary  Humanitarian  Aid  Corps  (EVHAC).88  It  adopted  a  Communication  in  November 
on  how  EU  citizens  can  contribute  to  aid  efforts  and  how  the  EU  can  express  its  solidarity 
with  people  in  need.  The  Communication  will  be  followed  in  2011,  the  European  Year  of 
Volunteering, by a legislative proposal to set up the EVHAC. 

A special Eurobarometer survey carried out in 2010 on humanitarian aid revealed a high level 
of  solidarity  among  EU  citizens  with  victims  of  conflict  and  natural  disasters  outside  the 
Union.  Eight  out  of  ten  citizens  think  it  is  important  that  the  EU  funds  humanitarian  aid 
outside its borders. 

3.5.4.  Disaster preparedness 

The Commission supports disaster preparedness actions in regions prone to natural disasters, 
so  as  to  help  local  communities  to  react  rapidly  and  efficiently  when  disaster  occurs.  The 
Commission  continued  its  support  to  the  disaster  preparedness  (DIPECHO)  programmes 
launched in 2009 and new ones in southern Africa, central Asia, southeast Asia and central 
America. Many of the Commission's major humanitarian financing decisions include disaster 
preparedness  or  mitigation  of  disaster  impacts  as  an  objective.  Mainstreaming  is  based  on 
activities  related  to  infrastructure  support,  advocacy  and  public  awareness,  small-scale 
mitigation, mapping and data computerisation, early warning systems, education, institutional 
strengthening and climate change activities. 

3.5.5.  Civil protection 

The Commission encourages and facilitates cooperation between the 31 states89 participating 
in the civil protection mechanism and financial instrument. In doing so, it seeks to improve 
the  effectiveness  of  systems  for  preventing  and  protecting  against  natural,  technological  or 
man-made  disasters  in  Europe.  The  implementation  of  this  mechanism  ensures  better 
protection of people, the environment, property and cultural heritage in the event of disasters. 
Assistance based on resources made available by Member  States is provided within  the EU 
and  third  countries  struck  by  disasters,  following  a  request  from  the  government  of  the 
country  concerned.  Beyond  disaster  response,  the  Commission  strives  to  enhance  disaster 
prevention and preparedness, both within the EU and beyond.  

3.6.  Macro-financial assistance 

The  Commission  implements  macro-financial  assistance  (MFA)  in  association  with  the 
support programmes of the IMF and the World Bank. The individual MFA programmes are 

87 

88 

89 

COM(2010) 600 final and SEC(2010)1243/1242, 26.10.2010  
http://ec.europa.eu/commission_2010-2014/georgieva/themes/european_disaster_response_capacity_en.htm  
COM(2010)683, 23.11.2010 
2014/georgieva/themes/voluntary_humanitarian_en.htm  
27 EU Member States, Norway, Iceland, Lichtenstein and Croatia 

http://ec.europa.eu/commission_2010-

EN 

145 

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governed by ad-hoc legislative acts. The MFA instrument is governed by a set of principles 
which  underline  its  exceptional  character,  its  complementary  role  to support  financing  from 
international financial institutions and its macroeconomic conditionality. It is designed to help 
beneficiary  countries  experiencing  serious,  but  generally  short-term  macro-economic 
imbalances (balance of payments and fiscal difficulties). In close coordination with IMF and 
World Bank programmes, MFA has promoted policies to meet specific country needs with the 
overall  objective  of  stabilising  the  external  and  internal  financial  situation  and  establishing 
market-oriented economies. 

Two new operations were approved in 2010.  The  European  Parliament and the EU Council 
decided in July90 to provide MFA assistance to Ukraine in the form of a €500 million loan. 
Together  with  €110  million  from  a  2002  decision,  this  brings  to  €610  million  the  amount 
made available to Ukraine. On Moldova, a decision91 to provide MFA assistance of up to €90 
million in the form of grants was adopted in October. The first disbursement to Moldova (a 
€40 million grant) took place in December. Discu ssions with Ukraine on the policy conditions 
related to its loan were not completed at the end of 2010. 

Concerning  ongoing  assistance,  payments  of  €7.7  million  and  €23  million  in  favour  of 
Georgia were made in January and August, both in the form of grants. This was part of the 
€46  million  MFA  assistance  approved  in  2009  to  help  Georgia  overcome  the  impact  of  its 
2008 conflict with Russia and the global financial crisis.  

The Council decision92 to provide up to €80 million of MF A to Lebanon expired in 2010 after 
the failure of Lebanese authorities to ratify the one-year extension proposed by the EU. Only 
€40 million were disbursed (a grant of €15 m illion in December 2008 and €25 million in the 
form of a loan in May 2009), reflecting insufficient implementation of some policy conditions 
by Lebanon and the expiry of the IMF's financial arrangement. 

4. 

MANAGING AID FOR RESULTS 

4.1.  Monitoring and evaluating projects 

For  several  years  the  European  Commission  has  been  assessing  the  effects  of  EU 
development  policy  and  the  results  of  its  implementation.  The  Commission  uses  two  major 
tools to evaluate the impact of its actions in partner countries: 

•  The  results-oriented  monitoring  system  which  provides  a  harmonised  overview  of  the 
portfolio  of  projects  and  programmes  under  five  evaluation  criteria  (relevance, 
effectiveness, efficiency, impact, sustainability). This system answers the main question: 
"are projects and programmes on target to deliver the intended results?" 

•  The  evaluation  of  results  of  geographic,  sectoral/thematic  policies  and  programmes,  as 
well  as  of  aid  delivery  and  programming  performance.  This  exercise  is  crucial  for  the 
external assistance policies as a whole and needs to feed back into the programming cycle. 
Evaluations are important for accountability towards the public and provide lessons about 
what has worked and not worked and the reasons why. 

90 
91 
92 

Decision 388/2010/EU 
938/2010/EU 
860/2007/EU 

EN 

146 

   EN 

 
                                                 
4.1.1.  Results-oriented monitoring 

In  2010  the  Commission's  Results-Oriented  Monitoring  (ROM)  system  celebrated  its  10th 
anniversary. The system has produced more than 12 000 reports providing a large amount of 
data, while the methodology reached a high level of maturity. The ROM system plays a vital 
role  in  ensuring  the  quality  of  EU  development  aid.  It  forms  part  of  the  overall  quality 
assurance  cycle,  which  starts  during  the  design  of  projects  and  ends  once  they  have  been 
completed.  

The ROM system is based on onsite visits where monitors interview project and programme 
staff,  review  key  project  documents  and,  most  importantly,  interview  relevant  stakeholders 
including  the  beneficiaries.  Based  on  empirical  data,  the  system  produces  and  delivers 
objective,  impartial  and  comparable  reports.  The  methodology  is  based  on  internationally 
(OECD/DAC)  agreed  evaluation  criteria.  These  are  relevance,  efficiency,  effectiveness, 
impact, and sustainability. It is firmly focused on results, both short-term and long-term. To 
promote transparency, ROM reports are disseminated by the EU to project managers, partner 
governments and other stakeholders. 

The ROM brings benefits: 

•  At the micro level, it gives feedback to project managers on the performance of operations 
under their responsibility and presents recommendations for improvements, if necessary. 

•  At the macro level of general policy context, implementation and review, ROM provides a 
statistical  overview  of  the  performance  of  the  EU  development  aid  portfolio  with  data 
allowing comparisons over time, across regions, between sectors etc. 

•  At  the  level  of  programming  and  learning,  quantitative  and  qualitative  studies  based  on 
ROM  data  contribute  lessons  learned  and  best  practices  for  programming  and  planning 
new projects. 

ROM performance in 2010 

In  2010,  the  number  of  Commission  ROM  reports  exceeded  2  000  for  the  first  time.  This 
follows  a  steadily  rising  10-year  trend  –  from  50  reports  in  2001  to  2  119  in  2010.  The 
upward trend concerns all types of ROM activities:  

–  ROM of regional programmes (+34%);  

–  a  specific  ROM  exercise  covering  the  EU  Food  Facility  which  was  operating  at  full 

capacity in 2010 (135 reports);  

–  monitoring of completed projects, i.e. ex-post ROM (+25%);  

–  testing phase of ROM of sector policy support programmes (29 reports). 

Table 37 - ROM outputs 2010 

Number of ROM reports 

ONGOING 

EX-
POST 

TOTAL 

EN 

147 

   EN 

 
National projects 

1284 

202 

1486 

Regional programmes:consolidated reports  213 

Regional 
component reports 

programmes: 

(national) 

Sector Policy Support Programme 

Total in 2010 

Total in 2009 

360 

29 

1886 

1556 

13 

18 

226 

378 

N/A 

29 

233 

2119 

174 

1730 

EN 

148 

   EN 

 
Table 38 - Overview of ROM activities 

Number 
programmes monitored 

of 

projects 

& 

ENPI 
East 

ENPI 
South 

Africa   Asia 

Latin 
America

CMTP Caribbean Pacific

Food 
Facility

Total 
2010 

Total 
2009 

National projects  

178 

130 

395 

195 

152 

3 

Regional  programmes 
whole) 

(as 

a 

35 

Regional programme components  107 

Sector Policy Support Programme 1 

58 

17 

7 

8 

32 

13 

25 

72 

2 

17 

11 

1 

45 

86 

- 

51 

8 

12 

3 

41 

12 

12 

2 

119 

1264 

3 

11 

- 

211 

360 

29 

g
n
i
o
g
n
O

t
s
o
P
-
x
E

Million  €  covered  for  ongoing 
projects 

495 

1,185 

2,753 

1,195 

663 

184 

436 

263 

455 

7,631 

8,053 

Closed projects/programmes  

36 

12 

65 

38 

44 

Million € covered Ex-Post 

74 

73 

542 

176 

169 

3 

4 

8 

38 

9 

30 

0 

- 

215 

174 

1,107 

805 

EN 

149 

EN 

 
  
 
  
  
  
  
 
 
 
Table 39 - Overall performance of ongoing national projects by category 

100%

4%

3%

3%

3%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

67%

71%

73%

70%

21%

8%

2007

19%

6%

2008

18%

6%

2009

19%

8%

2010

(IV) Not perf orming, major diff iculties

(III) Perf orming w ith Problems

(II) Good perf ormance

(I) Very good performanc e

EN 

150 

EN 

 
  
 
 
Performance of projects is classed in four categories as given in the table. The overwhelming 
majority of projects performed well or very well (73% for both categories in 2010). This is a 
recurring pattern, with a fairly constant score for good performers, while projects facing major 
difficulties fluctuate annually between 6% and 8%. 

A  closer  look  at  category  ii  ("good  performance"),  which  contains  the  large  majority  of 
projects/programmes, provides a useful insight. In this group, nearly half the projects recorded 
good  scores  in  all  five  DAC  criteria,  which  means  that  they  were  fully  on  track,  while 
retaining some scope for improvement. However, fewer than a quarter of “good” projects had 
problems  with  two  DAC  evaluation  criteria,  which  needed  to  be  addressed  to  ensure  full 
success of the project. 

Table 40 - Performance by evaluation criteria  

Projects  screened  by  ROM  performed  particularly  well  in  terms  of  potential  impact  and 
relevance. However it should be noted that the relevance score takes into consideration two 
specific issues (the project's actual relevance and its design). In fact the score of 81% for the 
whole criterion is an average of two scores: the relevance itself scored 96% (of good and very 
good)  while  the  design  score  was  lower  (67%  of  combined  good  and  very  good).  This 
underlines  the  importance  of  ensuring  proper  project  design  which  Commission  services 
address through a ex-ante peer review system called oQSG (office Quality Support Group).  

Table 41 - Project performance by ODA sector 

Performance 
category  of 
ongoing 
(national) 
projects 
sector 

by 

Very  good 
performance 

Good 
performance

Performing 
with 
Problems 

Not 
performing, 
major 
difficulties 

N° 
reports 
produced 

Million 
€ 
covered 

EN 

151 

   EN 

 
 
I 

II 

III 

IV 

Education 

4.8% 

74.2% 

17.7% 

3.2% 

62 

362.49 

and 
Health 
Reproductive 
Health 

Water 
Sanitation 

and 

Government 
Civil 
and 
Society 

Other  Social 
Infrastructure 
and Services 

Economic 
Infrastructure 
and Services 

Production 
sectors 

Multisector  - 
Crosscutting 

+ 

Commodity 
Aid 
General 
Programme 
Assistance 

4.4% 

67.6% 

22.1% 

5.9% 

68 

1.3% 

63.8% 

22.5% 

12.5% 

80 

2.7% 

75.4% 

16.5% 

5.4% 

333 

3.6% 

78.2% 

12.7% 

5.5% 

55 

3.5% 

74.5% 

17.0% 

5.0% 

141 

4.7% 

64.4% 

21.5% 

9.4% 

191 

1.8% 

78.2% 

13.6% 

6.4% 

110 

3.3% 

59.3% 

26.9% 

10.4% 

182 

286.03 

507.96 

952.75 

212.60 

1,008.03

697.64 

493.12 

592.63 

EN 

152 

   EN 

 
  
  
  
 
Table 42 - Performance by project budget size 

The above table provides the first comparison of ROM scores of projects of different size. It 
shows  that  bigger  projects  tend  to  get  worse  scores.  However  it  would  be  premature  to  use 
this  table  as  definite  proof  of  a  link  between  project  size  and  quality.  This  would  require  a 
more in-depth analysis, taking account of the specificities of the ROM methodology.  

New developments in 2010 

Three main topics were developed in 2010: 

•  Cost/benefit analysis of ROM and project evaluations 

During project and programme implementation, Commission services use two different tools 
to assess performance and to identify potential for improvement. These are, firstly, the ROM 
system  with  its  brief,  highly  structured  format,  managed  centrally  from  Brussels;  and 
secondly,  project/programme  evaluations,  which  are  largely  managed  by  delegations  and 
which are larger and more in-depth. Although both tools provide benefits on similar levels – 
project management, accountability and lessons learned – and use the same criteria to analyse 
performance, there has been no systematic coordination or a clear division of labour between 
the two tools. 

The  Commission  has  embarked  on  a  critical  reflection  on  the  strengths  and  weaknesses  of 
ROM and project evaluations. A study based on expert experience and a broad survey of staff 
members has identified the need to disentangle the different purposes served by ROM and to 
streamline  project  evaluations  managed  by  delegations.  While  accountability  calls  for  an 
objective and independent assessment, support for project management is more effective if an 

EN 

153 

   EN 

 
 
evaluation is participatory, makes use of the experience and expertise of the people involved, 
and assures that the results are  agreed upon by all stakeholders. In this sense, EuropeAid is 
exploring possibilities to develop separate tools, one which will focus on accountability while 
another will be designed to increase participation and ownership at project level.  

•  ROM/ project evaluation database 

The  Commission  is  developing  a  new  database  for  both  project/programme  evaluations  and 
ROM reports. This database will be an integrated module of the larger PCM platform which 
will  serve  as  the  central  tool  for  operational  management  of  Commission-managed  actions 
throughout  their  lifecycle.  The  evaluation  and  ROM  database  will  facilitate  planning  and 
coordination,  support  the  management  of  evaluations,  serve  as  central  storage  point  for  all 
reports  and  enable  advanced  search  and  analysis  functionalities  in  terms  of  aggregation  and 
lessons learned. The concept for this database was drafted in 2009 and drawn up in detail in 
2010. The IT development is ongoing with pilot testing expected in the second half of 2011. 

•  Multi-donor monitoring  

In April, the Commission organised a seminar on how to monitor multi-donor programmes. 
Several  European  aid  agencies  plus  four  UN  agencies  and  the  World  Bank  attended.  The 
purpose  was  to  propose  concrete  steps  for  better  harmonisation  between  donors  when 
monitoring common projects. The participants agreed to:  

a)  increase  the  inter-agency  dialogue  by  nominating  a  focal  point  in  each  agency  for 
monitoring and evaluation and to exchange planning information;  

b)  provide  greater  transparency  –  the  Commission  agreed  to  make  multi-donor  monitoring 
reports accessible online. (The other agencies are invited to upload their own reports);  

c)  analyse  the  results  of  monitoring  reports  and  decide  on  follow-up  action.  The  long-term 
aim here is to organise joint missions.  

These  three  first  steps  will  serve  as  a  transitory  stage  where  each  agency  will  have  the 
opportunity to understand better the way the others work.  

4.1.2.  Evaluations 

In 2010, the Evaluation Unit carried out joint evaluation functions for three Commission DGs: 
(Development,  External  Relations  and  EuropeAid)93.  This  was  based  on  the  multi-annual 
programme  for  2007-2013,  approved  in  2007  by  the  Commissioners  concerned.  The 
programme  established  three  main  activities:  geographic  evaluations  (partner  countries  and 
regions); 
thematic  and  sectoral  evaluations;  and  evaluations  covering  aid  delivery 
mechanisms. 

93 

The  mandate  of  the  joint  evaluation  unit  is  "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). 

EN 

154 

   EN 

 
                                                 
The 2010 work programme 

Nine country-level evaluation reports were completed in 2010: El Salvador, Egypt, Ukraine, 
Maldives, Burkina Faso, Nigeria, Liberia, Senegal (jointly with Spain) and Niger (jointly with 
four Member  States). One sector evaluation report was completed in education. The second 
part  (concept  study)  of  the  conflict-prevention  and  peace  building  evaluation  and  the 
feasibility  study  for  evaluating  the  European  Consensus  were  also  completed.  Full  texts  of 
these reports are available on the evaluation website94. 

Ten geographic evaluations were initiated in 2010: Ecuador, Colombia, Nepal, the north and 
south  regions  of  European  Neighbourhood  Policy,  Malawi,  Jamaica,  Congo  (Brazzaville), 
Caribbean region and Burundi (jointly with Belgium and France). At the end of 2010, seven 
geographic  evaluations  were  still  ongoing:  Tunisia,  Philippines,  Honduras,  Dominican 
Republic, Ethiopia, Djibouti and OCTs. 

In  view  of  preparations  for  setting  EU  financial  perspectives  post-2013,  six  thematic  and 
sectoral evaluations are due to be finalised in the first half of 2011: conflict prevention and 
peace  building,  employment  and  social  inclusion,  human  rights  and  fundamental  freedoms, 
judicial and security sector reform, support for decentralisation, and visibility of EU external 
action. Four sectoral and thematic evaluations were launched in 2010 with results available in 
2013:  health  (relaunched),  the  private  sector,  trade-related  assistance  and  integrated  border 
management. 

On  aid  modalities,  an  evaluation  of  activities  financed  through  the  Council  of  Europe  was 
launched in 2010. The evaluation on technical cooperation was still under way at the end of 
2010  and  due  for  completion  at  the  end  of  2011.  For  budget  support,  the  two  pilot  studies 
conducted  in  Tunisia  and  Mali  should  be  finalised  by  March  2011.  It  is  planned  to  refine 
budget  support  methodology  to  take  account  of  lessons  learned  from  these  pilots.  The  new 
methodology could be applied from autumn 2011. 

With  regard  to  dissemination  and  feedback  mechanisms,  nine  seminars  were  organised  in-
country  to  discuss  evaluation  report  findings  for  Niger,  Burkina  Faso,  Nigeria,  Senegal, 
Liberia,  El  Salvador,  Egypt,  Maldives  and  Ukraine.  Nine  "fiches  contradictoires"  (which 
follow up on earlier  evaluation recommendations) were published  for the  evaluation  reports 
on: Chad, Guyana,  west Africa, SADC, United Nations, Development Banks, energy, water 
and sanitation, and Jordan. 

Results from evaluations finalised in 2010 

•  Geographical evaluations 

El  Salvador:  The  evaluation  report  covered  the  period  1998-2008.  It  found  that  EU  aid 
strategy was in line with the main needs of the population and demonstrated flexibility over 
time.  Positive  results  were  achieved  in  the  field  of  social  violence,  secondary  technical 
education  and  access  to  drinking  water  and  sanitation.  But  results  for  support  to  small 
enterprises  and  for  the  development  of  a  legal  framework  in  the  water  sector  were  more 
limited. The report highlighted the flexible use of budget support, demonstrating the leading 
role of the Commission and allowing EU involvement in the new national poverty reduction 

94 

http://ec.europa.eu/europeaid/how/evaluation/index_en.htm 

EN 

155 

   EN 

 
                                                 
programme. It was noted that demand-driven pilot projects with significant financial support 
had shown positive results, encouraging changes in national policy.  

Egypt:  Covering  the  1998-2008  period,  the  evaluation  report  showed  that  EU  cooperation 
strategy  has  increasingly  benefited  from  a  consultation  with  the  government  and  various 
stakeholders,  which  improved  its  relevance.  But  areas  of  support  are  still  insufficiently 
prioritised. The greater use of budget support and the mix of implementation tools helped to 
improve  efficiency.  However,  this  was  sometimes  undermined  by  not  taking  account  of  the 
institutional  constraints  of  implementing  agencies  or  the  complexity  of  EU  and  partner 
procedures. In the three main areas of support, the evaluation report indicates important recent 
progress  in  the  implementation  of  reform  measures  in  social  sectors,  positive  specific 
contributions to economic change, but few tangible results in the area of governance. The use 
of budget support has facilitated reforms affecting the institutional, regulatory and managerial 
framework of key sectors but it did not influence the policy and budgeting framework of the 
sectors concerned, as it was often used by the government of Egypt as a project fund. 

Ukraine: The evaluation  report  for 2002-2009  followed on from  the previous country-level 
evaluation.  It  says  EU  assistance  to  Ukraine  underpins  institutional,  legal  and  economic 
reforms which facilitate Ukraine’s rapprochement with the EU for the benefit of both parties. 
Significant  results  have  been  achieved  in  assistance  for  legal  reform,  economic  activity  and 
trade,  development  and  modernisation  of  the  energy  sector,  improving  nuclear  safety  and 
fighting  illicit  cross-border  activities.  In  the  absence  of  structural  reforms,  the  expected 
impact  in  the  areas  of  justice,  health  and  local  development  did  not  fully  materialise.  Civil 
society organisations have been supported but sustainability is at risk. It is only recently that 
policy  dialogue  on  environmental  governance  has  been  set  up.  Budget  support,  which  was 
launched in 2007, has not yet delivered on its potential impact. Most of the projects delivered 
their  expected  outputs,  but  no  attempt  was  made  to  assess  their  outcomes  and  impacts. 
Negotiations on the association agreement and on the deep and comprehensive free trade area 
have given a new impetus to policy dialogue. 

Maldives: The evaluation report covered the period 1999-2009. While the strategy has been 
relevant and in line with the national requests and needs, EU support was dispersed over too 
many  sectors  and  islands  which  diluted  impact  and  visibility.  Projects  managed  at  national 
level tended to perform better than those managed from outside. The EU was very successful 
with  support  for  the  preparation  of  presidential  and  parliamentary  elections.  Some 
programmes  had  efficiency  problems,  with  inconsistencies  between  programming  and 
implementation and a lack of internal monitoring. 

Burkina  Faso:  The  evaluation  report  for  1999-2008  said  EU  assistance  had  substantial 
impact in some sectors (roads, water and sanitation). In others, the low efficiency of project 
management (culture), or the lack of a clear national strategy (rural development) kept results 
below expectation. General budget support has enabled the EU to adopt a leading role, with a 
positive  knock-on  effect  on  other  technical  and  financial  partners.  It  has  encouraged  the 
government  to  improve  public  finance  management  and  to  increase  its  performance  in  the 
social  sectors.  Monitoring  and  measurement  of  results  remained  insufficient  and  do  not 
provide a clear understanding of the main drivers of change and the extent to which the donor 
community has contributed to it. 

Nigeria: The evaluation covered  the 7th and 9th EDF. The 8th EDF did not apply to Nigeria 
because  EU  assistance  was  suspended  while  Nigeria  was  under  military  rule.  The  EU 
interventions  were  relevant  and  the  Nigerian  partners  appreciated  the  responsiveness  of  the 

EN 

156 

   EN 

 
EU co-operation. The most successful areas for EU assistance have been vaccination, micro-
projects  and  support  for  the  anti-corruption  unit.  The  effectiveness  and  impact  of  EU 
interventions  in  two  key  sectors  (institutional  and  economic  reform,  water  supply  and 
sanitation)  have  been  limited.  Support  for  democracy  and  human  rights  through  various 
instruments was  not coordinated with  EDF-funded support and potential synergies were not 
created. Time-efficiency was poor because of a complicated and over-ambitious EU strategy 
design and a lack of ownership on the Nigerian side. 

Liberia:  The  evaluation  report  covered  the  period  1999-2008,  including  the  period  of  civil 
war  which  lasted  until  2003.  The  EU  was  an  active  participant  in  key  events  that  helped  to 
bring  Liberia  out  of  decades  of  conflict  and  violence.  However,  EU  programming  was  too 
ambitious and the EU's financial and political commitment was not  backed  up  by  sufficient 
managerial  resources.  In  consequence,  the  EU's  contribution  lagged  significantly  behind  its 
potential value-added for assisting post-conflict societies and its commitment to focus support 
on the most vulnerable marginalised people. The Commission's procedures and mechanisms 
for  design,  planning  and  implementation  did  not  adequately  take  into  account  the  difficult 
conditions, risks and operational constraints of Liberia's post-conflict environment. 

Senegal:  This  evaluation  was  carried  out  jointly  with  Spain  and  covered  the  period  1996-
2008.  Fragmented  at  the  outset,  EU  aid  strategy  gradually  became  more  focused.  But 
complementarity and synergies between the various instruments and aid delivery mechanisms 
remained  weak.  Some  positive  impacts  have  been  noted  on  road  building  and  on  urban 
drinking  water,  but  with  fragile  sustainability.  Sanitation  lacks  a  strong  sector  strategy.  The 
Commission and Spain have invested in employment with positive results at institutional level 
but  with  uneven  results  for  job  creation  in  a  country  with  fast  population  growth.  In 
Casamance,  the  two  aid  programemes  have  been  complementary  and  synergies  exist  which 
assure better access to social services and to the economic support. Support for civil society 
has been effective and the leading role of the EU delegation for implementing the division of 
labour between the Member States is recognised. The rapid introduction of budget support has 
led  to  an  increase  in  the  absorption  of  funds  but  the  impact  on  the  budget  and  the  social 
sectors, especially on the poorest, still need to be demonstrated. 

Niger:  This  joint  evaluation  between  the  Commission,  Belgium,  Denmark,  France  and 
Luxembourg  covers  the  period  2000  to  2008.  Due  mainly  to  Niger’s  limited  agricultural 
potential and the high population growth, its people remain very poor. In the period covered, 
the five donors provided more than 50% of Niger’s total ODA. Projects and budget support 
had positive results in institutional reform, technologies, health, education and water supply. 
However,  this  level  of  aid  and  the  individual  donor  strategies  have  not  helped  reverse  the 
poverty  dynamic.  In  2007,  the  government  proposed  an  ambitious  strategy  aiming  at  an 
annual growth per capita  of  more  than  3%.  The  five  donors do not appear to have set up a 
common  framework  to  use  their  aid  to  underpin  this  growth.  The  report  questions  the 
fragmentation  of  aid  from  EU  member  states  and  the  Commission  and  recommends  a 
common  long-term  strategy  both  for  supporting  the  government’s  growth  targets  and 
providing help on social issues for the poorest part of the population. 

•  Thematic and sectoral evaluations and analysis 

The evaluation of support to the education sector covered the period between 2000 and 2007. 
The  European  Commission  contracted  €1.9  bill ion  for  direct  support  to  primary  and 
secondary education and an additional €3.2 billion in genera l budget support with education 
as  a  conditionality.  EU  support  focused  mainly  on  primary  and  basic  education,  supporting 

EN 

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secondary  levels  in  countries  with  a  medium  Human  Development  Index.  EU  investments 
were  successful  in  increasing  school  enrolment  but  the  quality  of  schooling  was  often  poor 
and  learning  achievements  remain  limited.  The  fast  track  initiative  has  not  consistently 
delivered  results.  It  also  faces  the  problem  of  a  lack  of  mutual  accountability  and  aid 
fragmentation. Capacity development support to improve the delivery of educational services 
is  often  impeded  by  the  lack  of  adequate  resources  and  realistic  timetables  to  allow  real 
ownership  by  partner  governments.  The  Commission's  shift  to  sectoral  and  general  budget 
support  has  helped  partner  countries  to  start  education  reforms  but  these  depend  on  being 
including  decentralisation  and  public  finance 
integrated 
management.  EU  Delegations  need  to  improve  their  capacity  to  deal  with  this  new  cross-
sectoral approach. 

into  wider  public  reform 

Road  transport  sector  analysis:  21  country-level  evaluation  reports  in Sub-Saharan  Africa 
published between 2003 and 2010 addressed road transport as a focal sector. An analysis of 
these reports, based on projects funded by the 7th and 8th EDF, has shown that EU assistance 
went mainly to the construction or maintenance of trunk roads, and to institutional reform in 
the road transport sector. Impacts on employment (direct or indirect), on the environment or 
on  health  were  not  monitored.  In  most  cases,  transport  time  and  cost  were  reduced  but  the 
gains were often diverted by special interests. Therefore, in numerous cases the potential for 
increased  competitiveness  has  not  been  realised.  When  a  network  of  trunk  roads  associated 
with feeder or rural roads exists, accessibility to rural markets or social facilities is improved, 
thus  contributing  to  poverty  reduction.  The  sustainability  of  infrastructure  remains  a  major 
challenge. The trade-off between the costs of quality road building, the use of overloaded (and 
overweight)  trucks  and  a  road's  life  expectancy  merits  an  in-depth  analysis.  At  the  regional 
level, the EU contributed to a better road network and to a greater effort to harmonise national 
road sector policies. These efforts encountered several drawbacks: lack of road maintenance, 
weak  implementation  of  road  regulation,  reluctance  at  state  level  to  eliminate  some  traffic 
barriers  and  to  put  an  end  to  illegal  taxes  or  their  equivalents.  To  correct  the  situation,  the 
Commission  has  changed  substantially  its  approach  by  switching  to  sector  support  from 
project support and by making use, whenever possible, of sector budget support as a financing 
mechanism.  However,  further  work  is  needed  to  shift  the  focus  from  road  to  transport 
logistics and to address inter-modality, trade facilitation and governance.  

Evaluating budget support: The decision to test the methodological approach for evaluating 
budget support was taken by the OECD/DAC evaluation network. In 2010, three pilots were 
under way: Tunisia and Mali under the leadership of the European Commission, and Zambia 
under the leadership of the Netherlands, Germany and Sweden. Final test results are expected 
by March 2011. The first indications from the Tunisian case seem to demonstrate that general 
budget support has had a significant impact, while there has been less impact for SBS in the 
education sector, and that the evaluation methodology has worked. 

Based on the Commission's geographic evaluations finalised in 2010 (Burkina Faso, Egypt, El 
Salvador,  Niger),  the  preliminary  findings  announced  in  last  year's  annual  report  have  been 
confirmed.  These  four  reports  highlighted  the  leading  role  of  the  Commission  with  positive 
knock-on  effects  on  other  donors  in  encouraging  partner  governments  to  improve  public 
finance management and in facilitating reform measures to increase the performance of key 
areas, in particular the social sectors. 

Synthesis of main lessons learned 

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– 

– 

– 

– 

– 

– 

– 

Commission  programming  and  implementation  addressed  the  needs  of  partner 
countries and remains consistent with EU goals, but priorities need  to  be  ranked  in 
order of importance. 

Country strategy papers are sometimes too ambitious for EU Delegations' capacities 
to  handle.  The  choice  of  sector  does  not  always  reflect  the  priorities  of  the  partner 
country. 

Effectiveness  is  positive  for  most  activities.  However,  improved  coordination  and 
synergy  between  activities,  as  well  as  clearer  strategy  in  the  choice  of  aid 
mechanisms, is still needed. 

Efficiency  appears  as  the  weakest  element  of  EU  interventions.  Delays  and 
cumbersome  procedures  have  been  noted.  The  lack  of  internal  monitoring  and 
historical memory are also frequently cited in the evaluation reports. 

Commission  activities  do  generate  positive  impacts,  as  described  in  the  various 
evaluation  reports.  To  make  them  more  visible,  the  Commission  should  develop  a 
comprehensive system for measuring results. 

Sustainability  of  EU  interventions,  especially  at  project  level,  is  at  risk  because  of 
lack of ownership by partners and the absence of an exit strategy. 

An emerging challenge for the Commission is to look for synergies between sectors 
and to develop a multi-sector approach. 

Outlook for 2011 

The  evaluation  programme  for  2011  will  follow  the  structure  laid  out  in  the  multi-annual 
evaluation  programme  for  2007-2013.  The  following  evaluations  are  planned  for  2011:  ten 
geographic  evaluations  (Cameroon,  China,  India,  Kenya,  Madagascar,  Mexico,  Morocco, 
Sudan, Yemen and budget support in Tanzania), and four thematic evaluations (food security, 
environment mainstreaming, research and development, governance). The synthesis of results 
from  the  pilots  evaluating  budget  support  will  produce  guidelines  for  other  budget  support 
evaluations. 

4.1.3. 

Integrating lessons from monitoring and evaluation  

A  number  of  changes  to  ROM  methodology  were  agreed  during  2009.  A  specific 
methodology  for  regional  programmes  was  introduced;  the  ex-post  methodology  was  fine-
tuned;  the  feedback  on  the  reports  was  strengthened,  while  additional  information  on 
horizontal  and  cross-cutting  issues  (environmental  aspects,  gender  issues,  and  technical 
cooperation) were added to the list of questions to be checked.  

These  new  features  were  implemented  in  2010.  The  data  collected  will  allow  for  additional 
analysis  in  2011.  Over  1  200  online  response  sheets  were  completed  by  task  managers  in 
delegations, providing an important follow-up to the ROM reports themselves. The responses 
help  validate  the  quality  of  the  reports  and  ensure  the  subsequent  application  of  their 
recommendations. The regional ROM methodology was successfully applied to monitor 213 
programmes  based  on  field  visits  to  360  national  entities.  This  specific  methodology  will 
allow a better assessment of the regional dimension of programmes and of the challenges of 

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regional cooperation. Finally the information on horizontal and cross-cutting issues collected 
with the re-designed ROM templates constitutes a wealth of data for analysis in 2011.  

In 2011, two specific developments will be followed up: 

•  The findings and conclusions of the cost/benefit analysis of ROM and project evaluations 
will be translated into action. The action plan will take into account the recommendations 
of the special report of the Court of Auditors on the results of the devolution process.  

•  Day-to-day monitoring by delegation staff in the country of implementation is crucial for 
the success of a project. The Commission will therefore, in 2011, review and strengthen 
different  tools  used  by  EU  Delegations  for  internal  monitoring.  Standardised  templates 
will  be  introduced  (e.g.  for  field  visits)  while  a  specific  monitoring  process  for  the 
inception phase will be proposed for new projects and programmes. During this process, 
the  conclusions  of  the  oQSG  peer  review  will  be  used  to  fine-tune  and  quantify  the 
indicators. 

In  addition,  the  Commission  will  strengthen  its  internal  control  system,  making  sure  that  a 
proper  quality  reporting  system  is  put  in  place.  Task  managers  in  delegation  will  assess  the 
performance of projects and programmes through a new, IT-based "traffic light" system. This 
will  serve  as  an  early  warning  to  identify  projects  with  performance  issues  that  need  to  be 
addressed.  Finally,  EU  Delegations  will  be  required  to  produce  and  regularly  update  a 
monitoring workplan, covering internal monitoring actions, upcoming ROM missions and the 
pipeline  of  project  evaluations.  The  monitoring/evaluation  workplan  will  be  part  of  the 
ROM/project evaluation database. 

4.2. 

Toward better aid delivery  

4.2.1.  Developments in aid delivery modalities and channels  

The Commission sought to raise its standards in recent years for aid implementation, quality 
control,  accountability  and  results  monitoring.  It  is  reforming  its  processes  to  make  them 
simpler and more focused on quality and results, and to bring them in line with internationally 
agreed  objectives  on  aid  effectiveness.  The  Commission  has  also  developed  more  dynamic 
forms of partnership with beneficiaries and with other donors.  

In 2010, efforts concentrated on: 

•  A reform of the main quality tool during the design phase of the project's lifecycle (a peer 
review  by  quality  support  groups),  was  to  include  an  enhanced  focus  on  the  quality  of 
technical cooperation in project design from January 2010. 

•  The implementation of technical cooperation (TC) reform to improve aid effectiveness at 
operational  level.  Key  steps  so  far  have  been:  the  mainstreaming  TC  principles  into  the 
project  cycle;  the  use  of  a  quality-control  approach  through  a  TC  quality  grid  during 
project design phase; and the inclusion of TC reform among the issues monitored in ROM 
(see further information below). 

•  A revamped, more user-friendly and extended version of the thematic knowledge-sharing 
platform  www.capacity4dev.eu  was  launched  in  October  2010.  The  goal  of  the  new 
version is to cover progressively all development cooperation topics. 

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•  Cooperation  and  partnership  with  other  donors  and  especially  with  Member  States  to 
enhance  effectiveness  and  efficiency  of  aid  delivery  and  to  impact  positively  on 
beneficiaries.  

The ‘Backbone Strategy’ for reforming technical cooperation and capacity4dev.eu  

In  July  2008,  the  Commission  launched  the  so-called  backbone  strategy  for  reforming 
technical cooperation. The strategy provides a set of principles including the development of 
local capacity, demand-led approach, partner country ownership, and 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.  In  2010,  the  Commission  continued  to  work  intensively  to 
implement the reform at operational level: 

•  Delegations regularly use the guidelines on making TC more effective as a reference tool 

and the TC quality criteria are mainstreamed in the project cycle; 

•  The  tools  put  in  place  for  TC  quality  checks  (TC  quality  grid,  quality  support  groups, 
ROM)  are  used  during  identification,  formulation,  monitoring  and  evaluation  of  TC 
programmes; 

•  The  mapping  of  ongoing  and  pipeline  programmes  showed  that  the  backbone  strategy 
implementation  was  used  to  ensure  the  quality  of  these  programmes.  The  mapping  also 
confirmed that in most cases the purpose of TC is capacity development;  

•  The  toolkit  for  capacity  development  has  been  distributed  at  headquarters  level  and 
through  a  seminar  and  the  capacity  development  approach  is  progressively  becoming  a 
core tool; 

•  Training on TC at headquarters and delegation levels remains intensive. In 2010, nine in-
country learning events focusing on local case studies took place in Afghanistan, Ghana, 
Papua  New  Guinea,  Suriname,  Sierra  Leone,  Tanzania,  Ukraine,  Vietnam  and  Zambia 
plus  five  headquarters  training  sessions  and  one  workshop  on  the  comprehensive 
institutional building programme for the ENP east region. 

• 

Information activities for other donors (UN & World Bank) and EU Member States have 
been pursued to make them aware of the Commission TC quality approach for example in 
view of jointly managed or delegated operations. 

Capacity4dev.eu95, the website initially focused on technical cooperation reform at its launch 
in  October  2009,  underwent  a  major  overhaul  in  2010  in  terms  of  look,  structure  and 
improved  navigability.  Capacity4dev.eu  has  expanded  to  incorporate  a  host  of  topic  areas 
relevant  to  the  development  community.  The  new  look  has  been  designed  with  the  user  in 
mind.  The  site  offers  a  regularly  updated  magazine,  with  news  and  views  on  the  latest 
thinking in a given field. It offers development practitioners the option to participate in or set 
up  their  own  collaborative  working  groups.  At  the  end  of  2010,  capacity4dev.eu  had  more 
than  2 500  registered  users,  55 000  unique  visitors  from  over  6 500  cities  in  212  countries, 
more than 20 topics areas and more than 50 working groups with wide-ranging interests. 

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4.2.2.  Budget support  

Budget  support  is  the  mechanism  used  to  transfer  aid  funds  to  the  national  treasury  of  the 
beneficiary country if it meets agreed conditions for payment. During 2010, the Commission 
continued  to  use  budget  support,  which  represented  26%  (€1.8  billion)  of  all  commitments 
from the EU budget and the EDF. 

The  funds  are  provided  either  as  general  budget  support,  where  the  EU  supports  the 
implementation  of  a  national  development  strategy,  or  as  sector  budget  support,  where  EU 
funds help the partner country in a given sector. 

In 2010 GBS commitments made up 28% of all new budget support operations, amounting to 
€494  million.  This  was  significantly  down  on  the  figure  of  35%  in  2009.  The  beneficiaries 
were 34 ACP countries and two ENPI countries. 

Sector  budget  support  also  fell  in  2010.  Total  SBS  commitments  amounted  to  €1.3  billion, 
about 73% of new budget support operations committed in 2010, compared to €1.5 billion in 
2009.  

For more information on evaluation of budget support, see 4.1.2. 

Green paper on the future of EU budget support to third countries 

In  October  2010,  the  European  Commission  adopted  a  Green  Paper  on  the  future  of  EU 
budget  support  to  third  countries96.  It  identified  issues  and  questions  around  a  series  of 
themes:  political  governance  and  the  role  of  political  dialogue,  policy  dialogue,  the  role  of 
conditionality,  links  to  performance  and  results,  domestic  and  mutual  accountability, 
programming of budget support and its coherence with other instruments, strengthening risk 
assessment  and  dealing  with  fraud  and  corruption,  budget  support  in  situations  of  fragility, 
growth, fiscal policy and mobilisation of domestic revenues. 

The  Commission  also  organised  several  consultation  events  to  collect  contributions  from 
stakeholders. At the same time, it worked with budget support experts from Member States to 
develop proposals on a more coordinated EU approach as requested by development ministers 
in November 200997. 

The  results  of  the  consultation,  together  with  results  from  external  evaluations,  analytical 
studies and the recommendations on a more coordinated EU approach, will provide input for a 
new  communication  on  how  budget  support  can  contribute  more  effectively  to  the 
development objectives of partner countries. 

Public finance management 

Having  a  credible  and  relevant  public  finance  management  reform  programme  in  place  or 
under implementation is an eligibility condition for budget support. This condition must then 
remain in place during the life cycle of the budget support programme. 

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The key diagnostic tool used by the Commission to assess PFM eligibility for budget support 
is the public expenditure and financial accountability (PEFA) methodology. PEFA is a multi-
donor partnership programme established, sponsored and supervised by the World Bank, the 
IMF, the European Commission, and four bilateral donors. The PEFA methodology identifies 
the  critical  dimensions  of  performance  of  an  open  and  orderly  PFM  system  as  follows:  (i) 
credibility  of  the  budget,  (ii)  comprehensiveness  and  transparency,  (iii)  policy-based 
budgeting, (iv) predictability and control in budget execution, (v) accounting, recording and 
reporting, (vi) external scrutiny and audit. 

From June 2005 to the end of 2010, PEFA assessments were undertaken in 122 countries, 63 
of  them  from  the  ACP  region.  Almost  all  countries  benefiting  from  EU  budget  support  had 
completed a PEFA assessment by 2010. In some countries, repeated PEFA assessments have 
been carried out. 

In 2010, the Commission strengthened its monitoring system to follow up PFM developments 
achieved by partner governments. New updated guidance for EU Delegations creates a more 
structured monitoring framework for assessing PFM improvements. 

Strengthening human resources quality 

To  enhance  the  capacities  of  European  Commission  staff  to  design,  implement  and  monitor 
budget  support  programmes,  and  their  ability  to  take  part  in  related  discussions  on  public 
finance  or  macro-economic  policies,  training  courses  take  place  in  Brussels  and  at  country 
level.  Courses  are  open  to  officials  from  partner  governments  and  staff  from  other  donor 
agencies,  as  well  as  the  EEAS.  In  2010,  46  training  events  were  organised  for  2  600 
participants  in  areas  such  as:  (i)  dialogue  on  national  and  sector  development  policies,  (ii) 
performance  measurement, 
(iv)  macroeconomic 
programming,  (v)  public  finance  management,  (vi)  fiscal  management,  and  (vii)  debt 
management. 

(iii)  budget  support  methodology, 

The Commission response to the financial crisis: Vulnerability FLEX 

The  Communication  of  8  April  200998  sets  out  the  overall  strategy  to  support  low-income 
countries (LICs) affected by the crisis. As part of that strategy, the  Commission established 
the  Vulnerability  Flex  (V-FLEX)  mechanism  in  August  2009.  Its  main  objective  is  to  help 
ACP countries faced with a fall in revenue to maintain the level of priority public expenditure 
(health, education, key infrastructure). V-FLEX resources go to countries that have the right 
policies in place, but face a fiscal shortfall as a result of the crisis and where EU support can 
make a difference. 

As a result of the crisis, LICs saw the sharpest decline in their economic growth rate for the 
last four decades. Along with the drop in growth, fiscal and current account deficits widened 
and  public  debt  ratios  increased.  As  a  consequence  of  the  major  economic  slowdown,  the 
World  Bank  has  estimated  that  an  additional  64  million  people  will  have  been  pushed  into 
extreme poverty by the end of 2010. 

From  the  €500  million  V-FLEX  budget,  €236  milli
€173 million in 2010. The remaining amount will be disbursed in 2011. 

on  were  disbursed  in  2009  and  a  further 

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V-FLEX supports a counter-cyclical approach (in contrast to past crises when fiscal discipline 
was  tightened)  as  part  of  an  IMF-led  coordinated  international  response  to  the  crisis.  The 
counter-cyclical approach has been an important factor in limiting the impact of the crisis in 
LICs. 

Moreover,  the  composition  of  spending  improved  in  favour  of  the  social  sectors  and  public 
investment. According to budget outturn numbers, health and education spending increased in 
real terms in 20 of the 29 low-income countries in Sub-Saharan Africa in 2009. Government 
capital spending also seems to have held up and even increased in real terms in more than half 
the countries in the region. 

4.2.3.  Blending of grants and loans 

The  EU  is  the  leading  donor  worldwide  and  is  committed  to  increase  its  external  aid 
effectiveness  and  donor  coordination  amid  growing  global  needs  and  challenges.  The 
European  Consensus  on  Development,  the  European  code  of  conduct  and  the  division  of 
labour  between  the  Commission  and  EU  national aid  agencies  have  paved  the  way  for  new 
partnerships and operating methods amongst EU institutions and Member States. 

In  this  context,  loan  and  grant  blending  mechanisms  have  proved  to  be  an  effective  and 
efficient way to combine forces and to leverage grant resources so as to enhance support for 
EU external policies and promote regional initiatives and partnerships. Given today’s scarcity 
of grant resources (made worse by the financial crisis), blending mechanisms can benefit both 
beneficiaries  and  donors  in  helping  achieve  easier  and  faster  access  to  financing  with  high 
leverage  effect  and  more  flexibility  to  adapt  to  changing  conditions.  While  optimising 
financing  packages  for  beneficiaries,  blending  mechanisms  can  also  be  a  tool  to  increase 
donor cooperation and raise the visibility of European external assistance. This also reinforces 
the overarching objective of increasing aid effectiveness in line with the Paris Declaration and 
the Accra Agenda for Action. 

Blending mechanisms associate grants from the EU budget, the EDF or voluntary additional 
contributions from Member States with loans from multilateral European development banks 
like EIB, EBRD, NIB and CEB, and national development banks or agencies of the Member 
States.  Depending  on  the  regions,  they  provide  a  range  of  products  to  foster  infrastructure 
investments and to support the private sector, including: 

–  direct investment grants 

–  loan-guarantee mechanisms 

–  risk-capital and structured finance  

–  technical assistance and preparatory studies 

–  interest-rate subsidies. 

Their  governance  structures  are  based  on  a  three-tier  architecture  agreed  between  the 
Commission and the Member States comprising: 

–  An informal technical advisory body composed of the Commission (which generally chairs 
it), eligible European finance institutions and, in some cases, regional development banks. 
The advisory body assesses the eligibility and justification of the grant request. 

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–  A  decision-making  body  (operational  board,  executive  committee),  composed  of  the 
Commission  (chair)  and  Member  States  with  the  participation,  as  observers,  of  eligible 
European  finance  institutions  and,  in  some  cases,  regional  development  banks.  The 
decision-making body decides on grant allocations on the basis of the assessment made by 
the advisory body. 

–  A policy body (strategic board, steering committee) composed of the Commission and the 
Member  States  with  the  participation,  as  observers,  of  beneficiary  partner  countries, 
eligible European finance institutions and, in some cases, regional development banks. The 
policy  body  decides  on  the  strategic  orientations  and  priorities  of  the  blending  facility 
concerned. 

Since 2007, four loan-grant blending instruments have been set up by the EU: 

–  The oldest is the EU-Africa Infrastructure Trust Fund (ITF). Created in 2007, the ITF seeks 
to  promote  regional  integration  as  part  of  the  EU-Africa  partnership  on  infrastructure  by 
supporting  regional  or  national  infrastructure  contributing  to  regional  integration  in 
transport,  energy,  water  and  information  technology.  Since  its  launch,  the  ITF  has  been 
endowed  with  grants  resources  worth  nearly  €393  million  (€308.7 million  from  the  EDF 
and  €84  million  from  the  Member  States).  It   has  approved  grant  contributions  to  32 
projects  for  a  total  value  of  nearly  €210  million,  leveragi ng  €940  million  of  loans  from 
European finance institutions to reach a total investment volume of over €2.4 billion. 

–  The Neighbourhood Investment Facility (NIF) is the biggest. The NIF provides funding to 
infrastructure  investment  in  transport,  energy  (with  a  focus  on  renewable  energy  and 
energy efficiency), water and sanitation, environment and social sectors, as well as to the 
financial  and  private  sectors,  with  a  focus  on  SMEs.  Since  its  creation  in  May  2008,  the 
NIF has been endowed with nearly €308 millio n in grant resources (€245 million from the 
EU budget, €62.5 million from the Member States ) and has approved grant contributions to 
39  projects  worth  about  €277  million,  leveraging   over  €5 billion  in  loans  from  European 
finance  institutions  for  a  total  investment  effort  of  more  than  €10 billion.  An  additional 
€450 million in grant funding from the EU budget is programmed for 2011-2013.  

–  The Latin America Investment Facility (LAIF) and the Investment Facility for central Asia 
(IFCA) are the most recent. These facilities created in 2010 support the regional strategies 
of  the  EU  in  the  two  regions,  with  a  focus  on  sustainable  energy  and  the  fight  against 
climate  change.  The  LAIF  has  received  nearly  €35  million  from  the  EU  budget  and 
additional funding of €100 million is progra mmed for 2011-2013. The IFCA has received 
€20  million  funds  from  the  EU  budget  and  ad ditional  funding  is  foreseen  during  2011-
2013. In 2010, the LAIF approved five projects for a total grant amount of €21 million and 
a  total  investment  amount  of  about  €1.1  b illion.  The  IFCA  approved  a  first  operational 
grant of €5 million and a total i nvestment amount of €30 million. 

In addition to these facilities, two blending tools, the "pooling mechanisms", have been set up 
under the ACP-EU energy and water facilities, with a grant contribution from the EDF of €40 
million each.  

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4.3. 

Progress in aid management 

4.3.1.  Progress on qualitative issues in aid management 

Methodological work and training  

Developing skills and capacities of key actors involved in the design and implementation of 
EU-funded  programmes  is  essential  for  improving  quality,  impact  and  sustainability.  The 
Commission  is  investing  in  capacity-building  for  its  staff  and  other  stakeholders  through 
methodological  work  and  training.  In  2010,  particular  attention  was  paid  to  the  revision  of 
both  project  and  programme  cycle  management  (PPCM)  and  budget  support  guidance. 
Substantial work was carried out, respectively, in the fields of political dialogue and political 
economy for the  PPCM guidelines and on the annexes on public  financial management and 
macro-economics for the budget support guidance. 

Three new documents have been issued in the Tools and Methods series: 

•  Engaging  and  supporting  parliaments  worldwide  –  Strategies  and  methodologies  for  EC 
action  in  support  to  parliaments99:  This  document  responds  to  the  EU’s  development 
policy framework, which requires the Commission to engage with parliaments in partner 
countries  on  development  policy  and  support  dialogue,  and  which  recommends  support 
for parliaments as part of a larger democratic governance agenda. It should be seen as a 
practical  contribution  to  increase  efforts  to  work  with  parliaments  and  to  strengthen  the 
quality of the Commission's work in this area. 

•  Water  sector  development  and  governance:  Complementarities  and  synergies  between 
sector-wide  approach  and  integrated  water  resource  management100:  The  purpose  of  this 
document is to highlight common principles and synergies between sector-wide approach 
and integrated water resource management in order to show how these two processes can 
make a joint contribution to the development of the sector.  

•  Sector approaches in agriculture and rural development – short version101: As awareness 
of  its  contribution  to  poverty  reduction  increases,  agriculture  and  rural  development  is 
again  becoming  central  to  national  and  international  development  agendas.  Commission 
support  for  these  sectors  has  increased  substantially.  This  reference  document  offers 
guidance on how to introduce the necessary flexibility in the use of sector approaches in 
agriculture  and  rural  development  and  on  how  this  may  benefit  sector  development  and 
outcomes. 

EuropeAid  provides  training  and  learning  events  in  various  areas  related  to  the  design  and 
implementation  of  EU  assistance.  On  aim  is  to  progressively  improve  the  dialogue  with 
partners, the context analysis and the choice of the aid modalities.  

In 2010, over 2 300 participants attended more than 115 sessions of methodological courses 
held  in  Brussels  and  in  various  partner  countries.  Seminars  on  anti-corruption,  hot  topics  in 
agriculture,  value  chain  and  transport  were  also  organised  as  well  as  workshops  on  sector 
approaches on energy.  

99 
100 
101 

http://capacity4dev.ec.europa.eu/article/engaging-and-supporting-parliaments-worldwide 
http://ec.europa.eu/europeaid/infopoint/publications/europeaid/documents/176a_water_dev_en.pdf 
http://ec.europa.eu/europeaid/infopoint/publications/europeaid/documents/150abis_en.pdf 

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In  2010,  the  Commission  continued  its  active  involvement  in  the  joint  donor’s  competence 
development network,  known  as  Train4Dev, which it chaired in  2008-2010. Train4Dev sets 
out  to  promote  the  goals  of  the  Paris  Declaration  through  joint  learning  events  addressed 
mainly to donors’ staff.  

Quality of design 

The  Commission  developed  and  is  constantly  improving  a  structured  system  to  screen  and 
support the quality of operations at design stages – dentification and formulation – based on a 
peer  review  by  the  office  Quality  Support  Groups.  The  aim  is  to  ensure  that  effective  and 
efficient  support  is  provided  to  EU  Delegations  and  headquarter  units  which  manage 
operations. In 2010, 168 meetings took place which conducted 834 quality reviews at either 
the identification stage or the formulation stage of project design. 

At the start of the year, a new set of rules for these reviews was introduced which simplified 
templates  and  focused  on  the  essential  elements  for  well-designed  operations  based  on  the 
experience  of  practitioners  and  stakeholders.  The  transition  to  the  improved  system  was 
managed smoothly and has been welcomed by users.  

In  parallel,  the  Commission  is  working  on  new  IT  architecture  called  the  Project  Cycle 
Management Platform to facilitate access to project data and lessons learnt, as well as allow 
interaction  between  staff  in  charge  of  project/programme  design,  implementation  and 
evaluation. Better on-line tools should lead to better use of human resources.  

4.3.2. 

Simplification of procedures 

In May 2010, the Commission adopted a proposal for revising the EU Financial Regulation. 
The intention is  to simplify  procurement and grants procedures for implementing  assistance 
programmes  and  projects.  The  proposal  also  reviews  the  so-called  management  modes  by 
which  the  Commission  delegates  the  execution  of  the  implementation  of  EU  funds  to 
beneficiary countries, international organisations, national agencies, etc. A new regulation is 
expected to be adopted by mid-2012. 

The  proposal  reduces  the  existing  five  management  modes  to  just  two:  direct  management 
when  funds  are  managed  by  the  Commission  and  indirect  management  when  EU  funds  are 
managed by, and therefore delegated to, a partner (e.g. a Member State, beneficiary country, 
international organisation). The conditions for indirect management will be roughly the same, 
regardless of the type of entity managing the EU funds. 

The proposal also creates new tools for more efficient and effective delivery of EU aid, such 
as the possibility for the Commission to establish EU trust funds, like those already used by 
other organisations including the World Bank and the UN. EU trust funds would only be for 
emergency aid and thematic actions. 

For  its  part,  the  Commission  radically  simplified  its  operational  procedures  in  2010.  More 
flexibility  was  introduced  into  the  “PRAG”,  the  Commission’s  practical  guide  to  contracts 
procedures  for  EU  external  actions.  Most  importantly,  the  financial  guide  of  the  EU  budget 
and  about  20  instruction  notes  on  procedural  and  financial  issues  were  merged  into  a  new 
single  manual  called  the  "DEVCO  Companion".  The  Companion  explains  from  A  to  Z  the 
internal  financial  and  contractual  procedures  to  be  applied  by  the  Directorate-General 
for Development and Cooperation - EuropeAid and EU Delegations.  

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4.3.3.  Cooperation with international organisations and other donors 

Cooperation and partnership with the UN and the World Bank Group remained significant in 
2010, with contributions amounting to €597 milli on to the UN and €192 million to the World 
Bank.  The  UN  and  the  World  Bank  work  with  the  Commission  to  support  programmes  in 
areas  such  as  election  monitoring  and  assistance,  institution  building,  rehabilitation,  rural 
development,  education  and  health.  Cooperation  with  the  UN  and  the  World  Bank  Group 
makes  more  and  bigger  projects  possible,  with  positive  impact  on  beneficiaries  and  on 
effective  and  efficient  aid  delivery.  By  working  with  these  partners,  the  Commission  has 
benefited from their expertise and experience and from synergies created.  

EU  financial  regulations  allow  EU  funds  to  be  managed  by  international  organisations  in 
accordance  with  their  own  procedures.  The  Commission  checks  that  these  procedures  meet 
international standards, and has the right to verify (by on-the-spot checks if necessary), that 
the  funds  have  been  correctly  managed.  This  robust  framework  is  complemented  by 
monitoring individual projects and results-oriented reporting.  

The Commission also works closely with the EIB and regional development banks such as the 
European,  African,  Asian  and  Inter-American  development  banks.  This  covers  different 
aspects from policy dialogue to joint programmes, and involves areas like the financial sector, 
infrastructure, rural development, education, debt relief and results measurement.  

More information on the political aspects of the Commission’s cooperation with international 
organisations is provided in section 1.3.2.  

The United Nations  

The  European  Commission  and  the  UN  work  together  in  over  100  countries.  In  2010,  they 
continued  to  streamline  the  way  they  work  under  their  2003  financial  and  administrative 
framework  agreement.  The  annual  meeting  resulted  in  improvements  to  the  planning  and 
conduct  of  EU  verification  missions  to  UN-implemented  projects.  Revised  guidelines  for 
reporting were agreed in December for implementation on a trial basis. 

In  2010,  the  UN-European  Commission  Partnership  Report102,  produced  by  the  UN  with 
Commission  support,  showcased  the  results  of  the  partnership  between  the  UN  and  the 
European Union. This fifth report gives details of joint actions with a wide array of examples 
spanning the globe: from mine clearance in Albania to hygiene improvements in Uganda. 

During  the  year,  the  European  Court  of  Auditors  carried  out  the  second  part  of  its 
performance  audit on  EU assistance implemented through  UN bodies. This phase examined 
the  effectiveness  of  the  aid  and  whether  objectives  were  achieved  in  an  efficient  and 
sustainable way. The report was due to be adopted at the beginning of 2011.  

The  UNDP  remains 
the  Commission’s  main  partner  on  major  rehabilitation  and 
reconstruction  programmes.  Election  support  is  another  area  where  the  Commission  and 
UNDP continue  to  cooperate. The Commission has also worked with the  UN  on improving 
standards  in  the  fishery  and  textile  sectors  in  Asia,  through  partnership  with  UNIDO  (UN 
Industrial  Development  Organisation),  strengthening  the  education  sectors  in  Somalia  and 

102 

The report, entitled "Improving Lives – Results of the partnership between the United Nations and the 
European Union in 2009" is available at http://www.unbrussels.org/ 

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Zimbabwe  with  UNICEF,  and  election  monitoring  in  Guinea  with  UNOPS  (UN  Office  for 
Project Services). 

The World Bank Group  

The  European  Union  remains  a  major  donor  to  trust  funds  managed  by  the  World  Bank 
Group,  with  an  average  contribution  of  €410  million  per  year  since  2001.  Cooperation 
between the Commission and the World Bank Group has proved particularly important when 
dealing with a number of natural or man-made disasters and in post-crisis situations. This is 
where the World Bank’s ability to manage large multi-donor trust funds allows it act fast to 
mobilise  a  critical  mass  of  resources.  In  2010,  the  Commission  and  the  WBG  continued  to 
work  together  to  assist  in  the  economic  and  social  recovery  of  conflict-affected  regions  in 
Pakistan, the Philippines, Georgia, Afghanistan and Iraq and to support post-disaster recovery 
operations in Indonesia, Pakistan and Jamaica. Cooperation with the WBG has also continued 
to  support  global  initiatives  like  the  response  to  major  pandemics  (as  with  the  Avian  and 
Human Influenza Facility and the Global Fund to fight aids, tuberculosis and malaria) or to 
mitigate  the  effects  of  the  financial  and  food  crises.  World  Bank  Group  expertise  has  been 
particularly  valuable  for  budget  support,  public  finance  management,  debt  reduction  and 
private sector development.  

The  trust  fund  and  co-financing  framework  agreement  signed  in  2009  has  helped  simplify 
negotiations  for  Commission  contributions  to  WBG-administered  trust  funds.  It  ensures 
consistency,  more  transparency  and  sound  management  of  EU  money  while  raising  EU 
visibility.  The  framework  agreement  was  reviewed  by  both  sides,  one  year  after  signature. 
These  annual  meetings  provide  a  useful  forum  to  address  administrative  and  operational 
issues  and  explore  new  opportunities  for  cooperation.  Coordination  also  takes  place  at  the 
regional  and  in-country  level.  Operational  relations  between  EU  delegations  and  WBG 
country offices reinforce the frequent contacts at headquarter level. 

OECD 

The satisfactory cooperation between the Commission and the OECD continued on the basis 
of a 2006 framework agreement, which is currently under review.  

In 2010, the Commission was active in the preparations for the fourth high-level forum (HLF 
IV) on aid effectiveness in Busan in 2011.  

Council of Europe 

The  total  value  of  EU  joint  projects  with  the  Council  of  Europe  is  about  €64  million.  The 
Commission  and  the  Council  of  Europe  work  together  in  areas  like  human  rights  and 
fundamental  freedoms,  rule  of  law,  legal  cooperation,  democracy  and  good  governance, 
intercultural  dialogue  and  cultural  diversity,  education  and  social  cohesion.  A  framework 
agreement,  in  place  since  2004,  covers  financial  cooperation.  It  was  reviewed  in  2010  and 
found to be operating satisfactorily. An important example of cooperation with the Council of 
facility,  which  supports  Council  of  Europe 
Europe  is  the  €4  million  eastern  partnership 
involvement  in  operations  related  to  platforms  one  (democracy,  good  governance  and 
stability)  and  four  (contacts  between  people)  of  the  eastern  partnership.  It  was  signed  in 
December 2010. 

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The  Commission  has  also  launched  an  evaluation  of  its  external  cooperation  with  partner 
countries through the Council of Europe. The main objectives are to provide the Commission 
and the wider public with an overall independent and accountable assessment of its past and 
current cooperation. The evaluation will identify key lessons and thus provide policy-makers 
and  managers  with  a  valuable  aid  for  evidence-based  decision-making,  and  for  planning, 
designing  and  implementing  EU  policies.  The  evaluation  is  expected  to  be  finalised  by  the 
end of 2011. 

Other international organisations 

In  2010,  cooperation  between  the  EU  and  the  OSCE  continued  both  centrally  and  between 
OSCE  field  offices  and  EU  delegations.  Good  coordination  efforts  and  financial  support 
ensured efficient implementation of several EU and OSCE programmes.  

The International Organisation for Migration (IOM) continued to be an important partner for 
the  Commission,  in  particular  in  implementing  election  observation  missions  where  it  has 
developed a specific expertise, but also in terms of migration policy, border management and 
police reform. Discussions on a framework agreement with the IOM are under way.  

The  Commission  contributes  to  technical  assistance  and  training  activities  provided  by  the 
International Monetary Fund in the areas of financial sector stability, macroeconomic, fiscal, 
monetary and exchange rate policies, and in the enhancement of macroeconomic and financial 
statistics. Such cooperation has been greatly facilitated by the conclusion in January 2009 of a 
framework agreement, setting the terms and conditions for Commission contributions to trust 
funds administered by the IMF.  

Coordination  with  international  organisations  and  other  donors  is  crucial  and  is  in  line  with 
the  EU’s  strong  commitment  to  the  Paris  Declaration  on  aid  effectiveness.  To  this  end,  the 
Commission takes part in, and co-funds, several sectoral initiatives related to agriculture, rural 
development and livestock, aimed at ensuring that the needs of the rural poor and the food- 
insecure  feature  prominently  on  international  agendas.  The  global  donor  platform  on 
agriculture  and  rural  development  made  an  important  contribution  to  the  Accra  high-level 
forum  in  2008  and  it  continues  its  active  participation  in  the  OECD  working  party  on  aid 
effectiveness and the associated joint ventures. 

4.4. 

Visibility and communication 

Providing  public  information  on  the  achievements  and  challenges  of  the  EU’s  development 
assistance is vital, particularly at times of economic and budgetary constraint. 

Reaching  EU  citizens  via  the  press,  information  campaigns  and  other  events  showed  good 
results  in  2010.  The  Commission  ran  journalist  seminars  to  help  them  report  on  aid  and 
development issues. A press trip to Rwanda was organised on the occasion of a visit there by 
the  Commissioner  for  Development.  The  Commission  reached  out  directly  to  journalism 
students  through  the  Young  Reporters  Against  Poverty103  competition.  The  competition 
attracted entries from across the EU, with finalists reporting from the European Development 
Days  in  Brussels.  The  winners  of  the  competition  will  visit  Africa  and  report  on  their 

103 

http://platform.youngreporters.net/  

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experiences  and  impressions.  Another  method  of  engaging  young  people  in  development 
issues was through the second edition of the Music Against Poverty104 contest.  

The  EU  Development  Days  again  provided  an  opportunity  to  inform  stakeholders  and 
communicators  on  actions  taking  place  and  results  obtained.  This  focus  on  results  was 
reinforced  by  the  continued  expansion  of  the  Commission’s  database  of  operational  case 
studies from around the world. 

A major 2010 information product was a brochure on the EU's contribution to the Millennium 
Development Goals. Produced ahead of the September summit on MDGs, it was distributed to 
the general public, with a multi-media version available on-line105.  

The number of visitors to the External Cooperation Info Point in Brussels rose again in 2010 
to more than 8 000. It organised group visits, a regular series of conferences, film screenings, 
exhibitions and other events. 

5. 

FINANCIAL ANNEXES 

5.1. 

Introduction to financial tables 

This Annual Report provides an overview of policies, objectives and achievements in 2010. 
The tables and graphs which follow present the main data on development assistance in 2010 
by country, region, or sector and per source of funding, such as the different instruments of 
EU external assistance.  

The geographic cooperation with the ACP countries, is based on the Partnership Agreement 
with  the  ACP  signatory  states  and  is  mainly  financed,  South  Africa  excepted,  from  the 
European Development Fund which is separate from the EU budget. External assistance for 
other geographic areas and the thematic programmes with worldwide coverage are financed 
from the general EU budget.  

Data for 2010 again show improved overall Official Development Assistance (ODA) levels.  

Figure  5.1  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 EU, external assistance accounted for 9% of the total allocation in 2010 (general 
EU budget and EDF taken together).  

A global overview of the share of resources is given in Figure 5.2. A detailed breakdown of 
the  budget  by  policy  areas  can  be  found  in  Table  5.3.  A  similar  breakdown  for  the  EDF  is 
presented in Table 5.4.  

The  concept  of  ODA  used  throughout  the  tables  and  figures  is  that  defined  by  the  OECD’s 
Development Assistance Committee (DAC). The figures are those reported by the European 
Commission  and  Member  States.  Not  all  EU  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  5.5  shows  the  share  of  the  EU's 

104 
105 

http://www.ifightpoverty.eu/act/music-contest  
http://ec.europa.eu/europeaid/what/millenium-development-goals/e-booklet/index.html  

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external assistance classified as ODA. In all, 96% of EU aid committed in 2010 is considered 
reportable  as  ODA,  indicating  an  increased  focus  on  development  in  external  financial 
allocations.  

Figures 5.6 and 5.7 show the evolution from 2001 to 2010 of external assistance and ODA. 
Figure 5.6 shows the evolution of the main sources of funding: external assistance from the 
EU  Budget  and  EDF,  indicating  the  share  managed  by  EuropeAid.  Figure  5.7  shows  the 
evolution of the sector breakdown of ODA.  

Figure  5.8  and  Table  5.9  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 DAC, 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 on how the money 
was spent.  

Figure  5.8  provides  a  breakdown  of  EU  ODA  per  region.  Africa  continues  to  top  the  list 
(38% of ODA) with, Sub-Saharan Africa receiving 33% of total ODA in 2010.  

A  more  detailed  breakdown,  per  country  and  region,  in  line  with  the  OECD/DAC  recipient 
list, is presented in Table 5.10 (Commitments) and Table 5.11 (Disbursements). 

Leaving  aside  regional  programmes,  the  top  ten  ODA  recipient  countries  in  2010  were 
occupied  Palestinian  territory,  Democratic  Republic  of  Congo,  Turkey,  Serbia,  Afghanistan, 
Sudan, Haiti, Kosovo, Ethiopia and Morocco.  

Figure 5.12 focuses on ODA recipients classified under the four UN/OECD categories based 
on  GNI.  The  table  monitors  disbursements  in  2010  by  DAC  recipient  and  by  main  OECD 
sectors. One indicator shows ODA disbursement per capita.  

It is also important to identify the main sectors of activities that receive support. Table 5.13 
shows this breakdown of EU ODA per main sector as defined by the DAC.  

A more detailed sector breakdown of ODA is provided in Table 5.14 for commitments and in 
Table 5.15 for payments.  

Tables  5.16  and  5.17  give  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 EU instruments and corresponding budget structure.  

Tables  5.18  and  5.19  show  the  sector  breakdown  of  ODA  per  EU  external  assistance 
instrument  and  sub-component  within  the  instruments,  with  the  associated  Figure  5.20 
providing a closer look. 

Finally, Table 5.21 focuses on budget support commitments 2010 by EU instruments. 

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5.2. 

Financial tables 

Table 5.1 Percentage of EU Budget managed by the Commission committed on external 
assistance in 2010

Commitments in € million

External Aid 
(Budget + EDF) 
11 107 
 (8%)

EU Budget 
without External 
Aid 131 388  
(92%)

Commitments in € million

EU Budget without External Aid

External Aid (Budget + EDF)

EU Budget + EDF

131 388 M€

11 107 M€

142 495 M€

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Table 5.2 Sources of external assistance in 2010

Commitments in € million

non EuropeAid 
Budget; 3 513  
(32%)

EuropeAid 
Budget; 4 932 
(44%)

EuropeAid EDF; 
2 662  (24%)

Commitments ( € Million )
EuropeAid Budget
EuropeAid EDF
non EuropeAid Budget

External Aid (Budget + EDF)

4 932 M€
2 662 M€
3 513 M€

11 107 M€

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Table 5.3 General EU budget for external assistance in 2010

Total

Managed by 
EuropeAid

Managed by other 
DG's

of which ODA

 Heading / Policy 
Area

Description

Commit.

Disbursem
ents (1)

Commit.

Disbursem
ents (1)

Commit.

Disbursem
ents (1)

Commit.

Disbursem
ents (1)

4 14 - TAXUD Customs cooperation and international assistance

1.95

1.35

4 01 - ECFIN Macroeconomic assistance + EBRD

4 04 - EMPL

4 05 - AGRI

4 06 - ENERGY

4 07 - ENV

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)

4 13 - REGIO Pre-accession IPA and former ISPA

4 9+15 - EAC

4 17 - SANCO

4 19 - RELEX

4

4

4

4

4

4

4

4

Education, MEDIA 2007 programmes in third 
countries
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 

183.91

195.09

87.50

3.19

175.03

19.62

183.91

195.09

87.50

3.19

90.10

87.50

101.23

3.19

175.03

19.62

169.80

14.39

3.19

4.10

3.19

4.10

3.19

4.06

3.06

3.74

359.61

458.13

27.64

27.48

0.41

0.39

3.06

3.74

2.17

359.61

458.13

359.61

1.95

1.35

0.38

2.79

89.61

0.15

27.64

27.48

18.83

19.30

0.41

0.39

0.16

0.16

53.08

50.23

53.08

50.23

53.08

45.16

287.05

255.93

287.05

255.93

213.98

203.90

156.71

151.76

156.71

151.76

156.71

146.33

23.72

20.24

23.72

20.24

296.56

242.48

132.83

120.87

163.73

121.61

255.45

188.87

1 763.65

1 469.98

1 763.65

1 469.98

355.19

287.15

355.19

287.15

867.90

678.21

867.90

678.21

31.21

35.09

15.85

13.91

11.03
388.02
220.34

9.37
536.37
250.46

388.02
220.34

536.37
250.46

201.06

105.05

201.06

105.05

150.64
295.26

131.12
253.97

150.64
295.26

131.12
253.97

15.36

11.03

21.18

9.37

1 694.66

1 367.95

355.19

281.17

862.26

664.35

18.98

17.88

3.18
388.02
220.34

1.32
536.37
249.55

199.09

102.92

150.64
295.26

129.73
253.97

Other cooperation actions and ad-hoc programmes

30.75

29.20

28.15

26.60

2.60

2.60

Policy strategy and coordination for Development 
and relations with ACP States policy area

19.20

15.79

9.58

8.85

9.62

6.94

19.20

15.68

4

4
4

4

4

4 22 - ELARG Management of the Instrument for Pre-Accession

916.51

1 004.69

916.51

1 004.69

905.22

794.09

4

4 23 - ECHO

Information and communication strategy
Humanitarian aid including aid to uprooted 
people, food aid and disaster preparedness

15.07

12.17

1 029.10

941.94

15.07

12.17

1 029.10

941.94

1 027.10

940.37

4+5 Administrative expenditure of External assistance (2)

490.41

560.21

293.82

364.00

196.60

196.20

462.23

531.35

TOTAL

8 444.78

7 754.50

4 932.08

4 448.52

3 512.70

3 305.98

8 012.35

6 705.83

(1) Before recoveries

(2) Includes administrative cost of EDF management charged to heading 5. 
     Total ODA (Budget + EDF) administrative cost (from headings 4 & 5 and EDF administrative envelope) shown in tables 5.14 & 5.15

Breakdown by budget line of external aid financed on the general Commission budget in 2010 (Amount in € million).

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Table 5.4 European Development Fund (EDF) in 2010

Instruments (1)

Lomé

NIP / RIP Grants
Aid for Refugees
Stabex
SYSMIN
Heavily indebted poor countries
Use of interest (Lomé)
Transfer  6th EDF
Transfer  7th EDF

Total Lomé

Cotonou

A Envelope - Programmable Aid
Envelope B - unforeseen
Regional projects
Intra ACP
Co financing A Envelope
Other
Implementation expenditure + Congo Rep. Dem.

Total Cotonou

Grand total EDF

Commitments 
(2)

Disbursements 
(3)

Commitments 
(2)

Disbursements 
(4)

Of Which ODA

-
-

-
-
-
-
-

0 

0 

1 305 
500 
203 
647 
-
-

8 
2 662 

2 662 

95 
0 
46 
1 
14 
0 
2 
16 
174 

1 896 
524 
105 
533 
-

3 
85 
3 147 

3 321 

-
-

-
-
-
-
-

0 

0 

1 293 
496 
203 
647 
-
-

7 
2 646 

2 646 

95 
0 
46 
1 
14 
0 
2 
16 
174 

1 866 
524 
102 
449 
-

3 
85 
3 029 

3 203 

Breakdown by instrument of development assistance financed on the European Development Fund (EDF) in 
2010 (amount in € million).

(1) Except The Investment Facility (10th EDF) managed by the EIB
(2) Commitments 2009 have been calculated following DAC procedures :
 Total commitments made in 2010 reduced by decommitments made on projects committed in 2010

(3) Before recoveries
(4) Before recoveries - Including EDF contribution to common administrative support expenditure also included in Budget figures (Table 6.3)

EN 

176 

   EN 

 
 
             
              
 
             
              
 
             
                
 
             
                
                
              
                
              
 
             
                
 
             
                
 
             
              
 
             
              
 
             
                
 
             
                
 
             
                
 
             
                
 
             
              
 
             
              
              
          
               
           
         
         
         
         
            
            
            
            
            
            
            
            
            
            
            
            
 
             
 
             
 
             
 
             
 
             
                
 
             
                
                
              
                
              
         
         
         
         
         
         
         
         
 
Table 5.5 Proportion of external assistance used for Official Development Aid (ODA)

Commitments in €  million
-

500

1 000

1 500

2 000

2 500

3 000 3 500

4 000 4 500

5 000

Budget EuropeAid

EDF

Budget Non EuropeAid

ODA non ODA

Commitments in € million

ODA

non ODA

Total

Budget EuropeAid

EDF

Budget Non EuropeAid

Total

4 772 

2 646 

3 240 

10 658 

160 

16 

272 

449 

4 932 

2 662 

3 513 

11 107 

EN 

177 

   EN 

 
       
          
      
       
            
      
        
           
        
      
           
      
 
Commitments in € million

Table 5.6 2001- 2010 external assistance

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

2002

2003

2004

2005

2006

2007

2008

2009

2010

EuropeAid Budget

EuropeAid EDF

non EuropeAid Budget

Grand Total

Disbursements in € million

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

2002

2003

2004

2005

2006

2007

2008

2009

2010

EuropeAid Budget

EuropeAid EDF

non EuropeAid Budget

Grand Total

External aid financed on the general EU Budget and the European Development Fund (EDF) managed by EuropeAid

Bilateral and multilateral ODA / other flows

EN 

178 

   EN 

 
 
Table 5.7 Sectoral breakdown of Official Development Assistance (ODA) 2002 - 2010

Commitments in € million

14 000

12 000

10 000

8 000

6 000

4 000

2 000

0

2002 2003 2004 2005 2006 2007 2008 2009 2010

Bilateral and multilateral ODA flows

Other/Unallocated : admin. costs,
unspecified

Humanitarian aid : emergency
response, reconstruction relief and
rehabilitation, disaster prevention
and preparedness

Action relating to debt

Budget support, food aid, food
security

Multisector/Crosscutting :
environment, other

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

Economic infrastructures and
services : transport,
communications, energy, other
services
Social infrastructures: education,
health, water, government and civil
society, other 

EN 

179 

   EN 

 
 
Table 5.8 Regional distribution of aid to developing countries (ODA) in 2010

Commitments in € million

ODA Multilateral Aid 
325  (3%)

Bilateral unallocated
 1 761  (17%)

Europe
 2 230 (21%)

Oceania
 116  (1%)

America
 934 (9%)

Asia : South & Central,  Far 
East
1 411 (13%)

Asia : Middle East
 652 (6%)

Africa, North of Sahara; 673 
(6%)

Africa, South of Sahara
 2 557 M€; 24%

( € 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

Grand total 

Managed by EuropeAid

Managed by Other DG's

Commitments Disbursements Commitments Disbursements Commitments

Disbursements

2 230 
673 
2 557 
652 
1 411 
934 
116 
1 761 
325 
10 658 

1 507 
537 
3 624 
596 
1 249 
973 
91 
1 084 
179 
9 841 

454 
663 
2 101 
537 
989 
744 
114 
1 494 
323 
7 418 

328 
527 
3 147 
476 
891 
827 
90 
891 
177 
7 354 

1 776 
10 
456 
115 
422 
190 
2 
267 
2 
3 240 

1 179 
10 
477 
120 
358 
147 
1 
193 
2 
2 487 

(1) Following OECD region 
See table 5.10  "Country breakdown of EU Development Aid in 2010"

EN 

180 

   EN 

 
       
         
          
            
       
                                
          
            
          
            
            
                                     
       
         
       
         
          
                                   
          
            
          
            
          
                                   
       
         
          
            
          
                                   
          
            
          
            
          
                                   
          
              
          
              
              
                                       
       
         
       
            
          
                                   
          
            
          
            
              
                                       
     
         
       
         
       
                                
 
Table 5.9 Regional distribution of aid to developing countries (ODA) 2005-2010

Commitments in € 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

Disbursements in € Millio n

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

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 
1 586 
366 
11 923 

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 

2009
2 030 
4 577 
618 
3 929 
30 
899 
621 
260 
19 
2 043 
669 
1 024 
295 
56 
89 
2 000 
125 
11 764 

2009
1 720 
4 111 
610 
3 478 
23 
809 
441 
348 
20 
1 854 
617 
908 
266 
63 
59 
955 
292 
9 800 

2010
2 230 
3 230 
673 
2 500 
57 
934 
609 
257 
68 
2 063 
652 
948 
363 
99 
116 
1 761 
325 
10 658 

2010
1 507 
4 161 
537 
3 563 
61 
973 
666 
287 
21 
1 845 
596 
935 
267 
47 
91 
1 084 
179 
9 841 

Bilateral and multilateral ODA flows
(1) Following OECD region. 
See table 5.10 "Country breakdown of EU Development Aid in 2010".

EN 

181 

   EN 

 
    
    
    
    
    
    
    
    
    
    
    
    
       
       
       
       
       
       
    
    
    
    
    
    
           
       
         
 
        
         
         
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
         
         
       
           
         
         
    
    
    
    
    
    
       
       
       
       
       
       
       
       
       
       
    
       
       
       
       
       
       
       
       
         
         
         
         
         
         
         
       
         
         
       
    
    
    
    
    
    
       
       
       
       
       
       
    
    
    
  
  
  
       
    
    
    
    
    
    
    
    
    
    
    
       
       
       
       
       
       
    
    
    
    
    
    
           
           
         
           
         
         
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
         
         
         
         
         
    
    
    
    
    
    
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
         
         
         
         
         
         
         
         
         
         
       
       
       
    
       
    
       
       
       
       
       
       
    
    
    
    
    
    
  
Table 5.10 Country breakdown of EU development aid in 2010

Commitments ( € Million )

Country/Region

Budget 
EuropeAid

Budget non 
EuropeAid

EDF

Grand Total

Part I : Developing Countries & Territories (ODA)

Europe, Total

Albania
Belarus
Bosnia and Herzegovina
Croatia
Kosovo (1)
fYRoM
Republic of Moldova (2)
Montenegro
Serbia
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

EN 

1 775.68
87.19

108.43
145.27
161.26
90.08
90.24
30.94
185.35
654.00

1.60
221.32
466.46
10.00
10.00

456.46

10.50
7.50
1.00

5.00
34.52
2.75
74.56
1.00
5.00
2.60

0.00
23.90

0.63
24.30

7.00
2.75
2.75
4.00
3.22

2.75

23.50
2.50

35.71

454.06

13.20
0.00

130.00

151.37

159.49
1 014.63
663.43
59.00
193.50
12.00
155.00
78.93
165.00
324.15

2.00

1.23
5.23

13.70

2.84

7.67

15.40

140.71

182 

2 229.74
87.19
13.20
108.43
145.27
161.26
90.08
220.24
30.94
185.35
654.00
151.37
1.60
380.81
3 230.47
673.43
69.00
193.50
12.00
155.00
78.93
165.00
2 500.00
3.00
30.55
10.50
123.41
40.12
42.50
11.00
39.15
89.02
6.33
159.38
2.98
30.93
7.34

0.00
106.60
17.10
29.50
35.00
9.95
0.63
93.54
63.00
37.39
8.15
184.25
9.00
15.62
13.17

52.32
61.65
70.50
94.50
92.85

23.20

80.60
35.71
140.71

1 749.38

1 719.38
3.00
30.55
10.50
112.91
32.62
41.50
9.00
34.15
54.50
3.58
84.83
0.75
20.70
4.74

69.00
17.10
29.50
35.00
9.95

66.40
63.00
30.39
5.40
181.50
5.00
12.40
5.50

34.17
61.65
47.00
92.00
92.85

23.20

80.60

   EN 

 
 
Table 5.11 Country breakdown of European Commission development aid in 2010

Net disbursements ( € Million )

Country/Region

Budget 
EuropeAid

Budget non 
EuropeAid

EDF

Grand Total

Part I : Developing Countries & Territories (ODA)

Europe, Total
Albania
Belarus
Bosnia and Herzegovina
Croatia
Kosovo (1)
fYRoM
Republic of Moldova (2)
Montenegro
Serbia
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

EN 

1 113.11
54.27
-0.04
77.21
78.75
210.31
40.44
43.24
10.33
216.83
220.87
-0.12
0.05
160.98
483.78
10.00
9.98
0.04
0.12
0.15
-0.08
-0.20
472.65

0.01

11.44
11.91

8.85
29.29
0.55
65.51
0.01
0.18
1.70

0.19
37.74

0.05
0.53
-0.14
38.65
0.01
8.41
4.28
2.20
1.75
1.86

1.98
0.01
15.33
3.59

1.03

0.46
31.43

327.62
1.50
11.41
1.48
0.50
0.78
0.98
60.85

1.46
1.70
114.74
0.05
132.16
1 131.84
471.09
28.97
102.02
0.69
167.95
69.76
101.70
600.36
5.40
0.91
-0.21
15.25
11.85
12.24
1.42
4.69
6.89
0.27
44.44
3.99
6.75
0.43

5.14
11.03
0.24
0.33
19.92
6.53
3.45
12.57
0.56
5.64
10.11
29.01
6.57
2.58
30.30

15.16
0.59
10.33
3.09
22.24

1.11
6.31
0.60
5.62
10.63
114.39

183 

0.03

0.03
2 419.27

2 419.27
12.04
91.72
29.30
96.33
73.10
41.62
26.42
50.08
38.68
7.15
160.31
17.85
33.44
5.40
0.14
22.22
128.81
9.47
16.62
59.41
47.42
7.49
24.80
54.71
54.23
13.36
123.02
65.36
14.48
19.98
0.74
126.85
7.18
86.96
37.63
56.29

3.32
51.87
2.89
53.34
52.29

1 440.76
55.78
11.36
78.69
79.25
211.09
41.42
104.10
10.33
218.29
222.58
114.62
0.10
293.17
4 034.89
481.09
38.95
102.05
0.80
168.10
69.69
101.50
3 492.29
17.43
92.64
29.09
123.02
96.86
53.86
27.84
63.62
74.85
7.97
270.27
21.85
40.38
7.53
0.14
27.54
177.58
9.70
16.95
79.38
54.47
10.80
76.03
55.27
68.27
27.75
154.23
73.68
18.92
50.28
0.74
143.99
7.79
112.62
44.31
78.52

4.42
59.21
3.49
59.42
94.35
114.39

   EN 

 
 
Sierra Leone
Somalia
South Africa
Sudan
Swaziland
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

Asia, Total

Middle East, Total

Bahrain
Iran
Iraq
Jordan
Lebanon
Oman
Occupied Palestinian territory
Syria
Yemen
Middle East, Regional
South & Centr. Asia, Total

Afghanistan
Armenia
Azerbaijan
Bangladesh
Bhutan
Georgia
India
Kazakhstan
Kyrgyz Rep.

EN 

35.71

146.00

7.50

9.51

16.00

189.74
165.45

0.02

3.10

5.18
151.26
3.40

2.50

24.29

1.50

3.77
12.90
3.80
0.01

2.01

0.30

537.21
115.48

6.00
7.39
1.00
6.40

60.47
9.21
25.00

379.26
84.61
0.04
0.00
23.00

40.48
3.40
0.80
9.25

140.71

12.06
20.00
8.20
1.17
5.80
13.78
74.38
27.05
487.21
186.95

14.77
21.69
8.50
5.00

24.20

22.50
1.00
21.00
20.80
12.30

5.00

13.64

16.55
0.00

232.34
22.40
42.08
9.99

49.80

18.81
4.00
8.00

77.27
67.92
1 486.46
536.57

24.20
71.20
44.00

280.40
50.00
18.00
48.77
568.82
170.00
30.90
7.00
64.00
8.40
40.20
38.90
25.01
15.00

184 

80.60

0.03
21.30
2.00
20.00
4.00
57.10
9.00
201.03
30.00
256.56
256.56

9.00

5.27
99.23

3.50

65.60

17.00

5.63

6.69
16.34
28.30

39.00

80.60
35.71
140.71
146.03
33.36
29.50
28.20
14.67
62.90
38.78
275.40
57.05
933.50
608.95

9.00
14.77
21.69
8.52
5.00
5.27
99.23
27.30
3.50
27.68
217.86
24.40
37.80
12.30

7.50

19.27

6.69
32.89
28.30

256.63
22.40
43.58
9.99
3.77
62.70
3.80
18.82
4.00
10.01

0.30
77.27
67.92
2 062.68
652.05

6.00
31.59
72.20
50.40

340.87
59.21
43.00
48.77
948.08
254.61
30.94
7.00
87.00
8.40
80.68
42.30
25.81
24.25  

   EN 

 
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

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

38.90
25.01
15.00

4.00
30.00
19.50
28.00
30.51
11.80
19.10
26.50

281.96
46.20
33.61
73.00
11.00
9.90
5.50
4.00
16.50
2.00

62.25
18.00
99.12
22.20

8.00

2.80

11.40
1 134.79
4 599.36

88.14
86.00

17.00
67.50
50.00

3.40
0.80
9.25

12.79
3.00
184.26
10.04
3.50
0.80
3.30

42.47
1.53

6.20

2.53

2.00
15.54
9.93
1.20
3.53

2.00

2.00

42.30
25.81
24.25

16.79
33.00
203.76
38.04
34.01
12.60
22.40
26.50

363.43
47.73
33.61
79.20
11.00
12.43
5.50
6.00
32.04
11.93
40.20
65.78
18.00
99.12
115.93
0.32
8.00
4.40

24.68
9.92
18.00

5.71
1.50

39.00

39.00

91.73
0.32

4.40

22.68
9.92
15.20

5.71
1.50

266.93
3 238.02

32.00
359.21
2 495.88

43.40
1 760.94
10 333.26

2.33

0.66

90.47
86.00

0.66

17.00
217.50
200.00

324.97

150.00
150.00

150.00

Part I (ODA) Multilateral Aid,Total

172.64

2.33

Part I (ODA), Total

4 771.99

3 240.36

2 645.88

10 658.23

Part II: Countries and Territories in Transition (non ODA)

More Advanced Developing Countries

2.00

40.12

4.30

46.42

Aruba
Bahamas
Bermuda
Brunei
Cayman Islands
Taiwan
Falkland Islands

EN 

185 

   EN 

 
 
Cayman Islands
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

2.00

2.06

4.06

CEEC's/NIS

41.66

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

23.50

18.16
43.66

4.30

4.30

38.06
6.51

3.08
0.68

0.41
0.35
2.00

46.63

4.30

38.06
48.17

3.08
0.68

0.41
0.35
25.50

18.16
94.59

Part II (non-ODA), Total

43.66

46.63

4.30

94.59

Grand Total Part I & Part II

4 815.65

3 286.99

2 650.18

10 752.82

Breakdown by country/region of external aid financed on the general EU Budget and the European 
Development Fund (EDF) in 2010
Bilateral and multilateral ODA / non-ODA flows
(1) UNSCR 1244/99
(2) henceforth Moldova

EN 

186 

   EN 

 
 
Disbursements in € 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
South of Sahara, Regional - LDC's
Asia, Regional - LDC's
Total Least Developed Countries

Table 5.12 ODA Recipient by main OECD sector in 2010

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

6.85 
0.96 
0.96 
10.47 
1.86 
7.52 
11.82 
1.46 
14.54 
6.85 
10.97 
4.17 
8.48 
0.31 
5.33 
2.17 
9.91 
5.46 
8.29 
21.48 
6.01 
1.94 
25.83 
17.18 
1.46 
10.56 
13.43 
4.84 
5.52 
6.21 
0.88 
1.16 
7.34 
7.42 
47.10 
27.18 
5.11 
10.34 
35.03 
10.29 
4.93 
3.24 
9.77 
6.13 
18.09 
2.91 
6.47 
1.28 
5.34 

215.20
18.41
142.42
92.68
1.35
123.90
99.05
20.62
64.00
76.94
8.06
275.00
7.53
0.22
27.98
180.20
17.12
54.51
12.55
214.62
0.60
12.04
56.09
68.62
30.20
157.29
4.24
74.38
19.08
145.21
42.11
34.86
113.85
78.78
8.62
4.50
63.52
60.69
18.85
95.99
214.55
145.41
10.99
36.93
0.18
97.35
1.55
30.75
69.86

124.94
13.44
74.78
24.82
0.20
14.46
19.90
11.59
19.85
31.45
6.16
107.42
3.44
0.22
5.37
43.79
1.91
21.77
8.82
15.95
0.60
4.21
17.03
11.16
15.48
10.44
0.78
25.20
3.63
40.37
9.67
23.20
34.34
13.29
8.44
1.83
9.76
12.65
2.57
31.13
28.39
20.07
5.31
7.16
0.17
13.15
0.63
15.31
17.80

0.58
0.73
0.03
34.76

3.04
24.90
0.45
16.23
3.14
1.30
26.05
1.91

14.30
70.12
12.79
29.83
1.84
10.82

0.01
3.84
34.73
1.77
12.87

16.01
10.66
21.35
0.11
4.66
20.89
7.01

1.36
29.91
22.73
0.08
6.09
0.31
26.84
0.02
0.29

38.34

0.05
4.30

10.52
2.45
11.78
0.24
0.55
10.95
4.66
2.15
1.58
1.55

13.70
0.40

1.07
2.45
0.31
1.29
0.43
3.45

2.28

2.28
5.91
3.44

1.78
1.12
15.78
1.77
0.36
2.40
15.83
0.02
0.44
8.05
1.39

11.49
36.19
7.25

0.63

4.24
0.31
3.83
6.42

28.37
0.39
6.37
6.51
0.54
0.91
0.74
2.47
1.00
3.21
0.03
23.64
0.07

0.02
1.64

0.14
0.77
2.41

0.43
0.01
0.35
1.21
4.56
3.41
5.83

0.96
0.30
0.50
0.74
12.12
0.16

9.33
0.90
0.87
2.94
0.24
0.48
4.05
1.04

0.15
0.25

3.38

9.63
0.30
29.39
25.97
0.05
79.74
33.57
1.05
17.86
0.70

48.73
0.01

4.73
21.60

0.52
62.16

2.69
35.19
9.96
1.22
122.59

21.08
1.25
64.67
14.08

27.50
30.00

0.70
4.87
22.61
15.00
5.18
9.73
83.67
1.21
27.71

23.54
0.03
3.08
36.63

40.97
1.08
19.56
0.38
0.01
14.81
14.75
2.85
7.33
36.74
0.55
54.56
1.70

2.48
40.56

1.19
0.18
118.92

2.39
0.01
10.11
4.61
3.40
0.04
3.26
2.38
2.07
16.15
5.80
27.53

1.06
0.04
0.34
39.13
139.69
7.10
0.34
0.12

17.46
0.34
8.47
1.07

0.19
0.01
0.50
0.01

0.53
0.06
0.16
0.14
0.02
0.90

0.04
2.11
0.29

0.90

0.03

0.03

0.01
1.23
0.04
0.01
0.03
0.34
0.45
0.53

0.16
0.55
0.38

0.02

0.05

0.01
0.48

0.01
0.25

4.02 

3 349.48

934.06

517.05

202.76

133.41

900.18

651.56

10.45

EN 

187 

   EN 

 
          
          
          
        
          
          
        
          
        
          
        
          
          
          
          
          
          
          
          
        
          
          
        
        
          
        
        
          
          
          
          
          
          
          
        
        
          
        
        
        
          
          
          
          
        
          
          
          
          
          
 
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

Lower Middle Income Countries (LMIC)

Albania
Algeria
Armenia
Azerbaijan
Bolivia
Bosnia and 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
Kosovo (2)
fYRoM
Marshall Islands
Micronesia, Fed. Sts.
Republic of Moldova
Mongolia
Morocco
Namibia
Nicaragua
Niue
Occupied Palestinian territory
Paraguay
Peru
Philippines
Sri Lanka
Swaziland
Syria
Thailand
Tokelau
Tonga
Tunisia
Turkmenistan
Ukraine
Wallis & Futuna

Total Lower Middle Income Countries

2.56 
3.27 
1.89 
0.46 
3.45 
0.29 
0.75 
5.51 
4.02 
0.18 
0.36 
6.58 
1.02 

17.66 
1.10 
7.92 
1.74 
4.92 
21.10 
2.86 
56.22 
0.02 
0.88 
6.01 
1.67 
6.14 
1.29 
1.27 
6.40 
26.91 
1.96 
29.26 
5.81 
0.06 
0.33 
0.04 
1.29 
29.31 
15.86 
115.51 
20.19 
7.73 
3.42 
29.16 
3.68 
5.28 
3.58 
2.86 
575.95 
82.51 
3.50 
0.67 
0.42 
1.74 
13.67 
1.91 
0.27 
-
11.73 
6.66 
0.85 
2.54 
240.01 
0.72 

50.53
79.70
76.75
11.15
18.39
45.52
130.07
37.80
27.67
4.89
31.65
82.66
596.77

56.58
39.07
24.49
16.02
48.84
79.34
56.03
27.88
32.15
40.51
24.30
18.80
60.95
18.66
103.33
39.65
117.14
28.26
22.08
44.17
71.12
79.61
2.59
40.84
80.35
98.12
210.89
41.60
0.42
0.38
104.19
10.14
168.70
8.16
16.54
0.85
333.29
22.56
19.45
39.20
36.32
16.21
38.95
18.32

23.33
16.46
14.40
2.32
8.58
38.67
20.18
27.51
15.08
3.19
9.41
28.08
207.23

26.64
16.61
14.42
9.32
10.03
42.36
14.87
7.04
20.51
18.21
5.09
2.13
28.67
11.00
40.93
32.34
53.59
9.39
2.46
7.01
58.35
70.44
0.45
26.48
33.48
64.44
153.22
10.28
0.10
0.12
38.70
0.35
110.47
2.16
6.06
0.00
230.38
18.60
11.93
18.39
7.45
9.53
23.58
6.20

11.45
9.57
2.19

0.79

0.03

0.32
0.10
0.19
0.20
24.82

18.65
7.79
8.74
4.45
10.13
22.08
26.27
2.90
3.32
0.16
5.80
1.06
3.06

58.77
0.11
4.47

0.46
1.04
2.33

6.63
6.53
9.38
2.18
0.29
0.15
4.52

29.66
1.60
0.42
0.83
0.97
0.22
2.05

0.83
0.46
0.80
0.11

1.22
69.82
4.27
115.53
3.26
2 551.15

0.24
13.98
3.57
30.75
1.92
1 324.23

0.05
28.64
0.15
45.91
1.34
325.33

11.02
5.30
5.64
0.45
0.33
0.21
2.78
9.51
4.31

4.92
14.84
59.31

9.07
3.84
0.57
0.99
17.86
9.17
10.32
0.41
5.74
4.08
1.05
12.22
2.74
4.42
0.32
3.90
0.53
3.07
15.57
0.66
1.07
1.91

12.32
20.29
5.97
9.54

0.81
3.09
26.27
0.17
1.51

10.94
0.25
1.52
1.96
0.52
5.14
5.51
0.59

0.32
7.92
0.16
23.77

0.16
4.52
6.42

0.90
0.19
0.32
0.26
5.05
0.07
0.54
2.71
21.13

2.16
0.84
0.14
0.72
4.17
5.33
4.56
3.70
2.03
3.26
7.23
0.26
0.34
1.28
3.29
0.92
6.60
9.39
3.60
17.26
1.57
0.49
0.24
2.92
4.56
1.92
4.73
19.60
0.03
0.11
16.99
5.09
2.28
3.22
2.30
0.01
3.04
0.36
0.92
1.39
0.21
1.07
0.69
1.62

0.62
1.15
0.02
11.35

43.79
4.49
8.38
3.08

0.04

13.00
15.28
88.06

5.10

13.84

0.60

25.00
0.18

30.70
1.72

16.05

22.39

30.00

40.00

0.17

18.00
2.57
0.68
1.04

0.05

18.07

4.46
0.05
43.28

4.63
5.20
103.31
0.39
2.82
1.31
3.40
21.55
190.40

0.07
9.98
0.35
0.48
1.54
0.40

14.80
4.51
3.12
1.13
1.69

2.39
20.97
4.70
0.20
2.68
8.91
4.41
1.80
11.44
0.96
4.76
2.40

0.00
1.60

0.05
5.93

69.43
0.44
2.01
16.42
27.29

8.34
9.73

0.15

0.12

0.33

0.07
1.25
3.46
0.12
0.06
0.21
0.19

5.82

0.02
0.27
0.06

0.00
0.02

0.55
0.01
0.01

0.01
0.08
0.02

0.28

0.25
0.04
0.18
0.02
0.10

0.01
0.17
0.18

3.17

0.02
0.96
0.14

0.52
0.11
0.33
0.02
0.02
0.00
0.04
0.01

0.00
0.05
0.22
3.75

5.00

248.09

165.59

226.16

5.00

245.10

11.65  

EN 

188 

   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
Seychelles
South Africa
Suriname
St.Helena
St.Kitts-Nevis
St.Lucia
St.Vincent & Grenadines
Trinidad & Tobago
Turkey
Uruguay
Venezuela

Total Upper Middle Income Countries

407.61 
104.14 
0.15 
33.87 
1.20 
17.89 
14.78 
0.08 
0.71 
3.98 
0.69 
18.16 
261.31 
5.46 
6.58 
87.95 
0.82 
9.52 
0.13 
0.03 
39.45 
3.68 
0.05 
16.38 
1 096.39 
79.94 
-
25.31 
0.32 
27.28 
40.35 
2.31 
24.97 
-
123.27 
102.73 
71.68 
0.32 
3.06 
1.59 
0.15 
1.58 

6.26
9.24
6.01
9.26
11.50
5.58
29.65
16.08
12.19
0.08
3.20
79.96
17.71
4.70
9.91
9.19
13.13
40.23
0.80
0.91
51.25
0.75
5.67
10.34
6.51
0.82

0.52
1.14
219.05
3.49
115.60
13.10

6.46
17.90
7.84
0.42
222.84
5.36
4.43
979.08

0.20
4.96
2.95
5.63
0.64
26.81
7.42
5.15
0.03
2.40
15.31
0.73
4.11
3.86
0.72
7.52
20.81
0.68
0.53
1.44
0.27
2.31
4.45
0.01

0.05
1.01
82.77
0.37
94.91
0.88

0.65
3.32
4.65
0.23
85.39
3.31
3.52
400.02

6.26
0.04

5.66
0.99
0.24

0.19
13.24
4.79

2.13

1.29
3.83

0.31

0.02

1.18

0.15

0.47

48.60

4.86
8.51

0.99
0.33
0.63

12.02

116.71

0.83
0.65
0.11
3.80
0.59
6.07
3.36

0.36
11.61
3.49
0.38
3.84
1.14
0.76
2.65
0.12
0.02
1.84
0.08
1.51
1.00
6.50

0.03
11.29
0.13
0.66
3.54

0.48
13.19
2.14
0.08
0.06
0.74
0.24
83.30

0.06

2.02
0.86
2.11
2.50
0.50

0.16
39.56
0.22
0.20
0.06

2.86
1.25

0.05
0.17
0.38
1.84
2.57

0.01
17.79

14.58
0.09

0.02
1.06
0.41

125.37
0.98
0.03
217.73

9.00
0.05

8.47

7.34

47.79

50.00
2.98

4.32

0.32

130.27

0.11

0.03

3.14
0.06
0.09

0.01

0.68
11.68

0.64

0.67

0.09
4.11

0.01

2.75
0.01
0.15
0.09
0.04

0.24

0.01

0.01
0.01

0.51

4.49
0.02
0.59
0.07

0.05

0.06

0.49
21.87

0.16
9.18

Total LDC + OLIC + LMIC + UMIC

1.33 

7 476.47

2 865.54

983.90

593.46

537.87

1 344.67

5.00

1 108.92

37.11

By region
Europe
Africa
America
Asia
Oceania
Bilateral unallocated

Total Region

9.70 
4.08 
1.67 
0.48 
10.01 
0.19 
1.73 

1 506.75
4 161.30
973.49
1 844.76
91.33
1 083.99
9 661.62

617.05
1 235.76
293.54
1 020.07
48.17
213.71
3 428.30

237.93
741.71
81.62
57.64
5.81
21.33
1 146.04

106.45
425.25
176.47
120.17
16.26
92.91
937.50

302.38
274.22
80.91
90.78
3.04
38.92
790.24

120.47
940.92
169.75
135.61
15.03
62.80
1 444.57

5.00

114.22
119.22

10.16
529.20
168.00
412.58
2.89
40.00
1 162.83

107.32
14.24
3.21
7.92
0.14
500.09
632.92

Breakdown by country/region of external aid financed on the general EU Budget and the European Development Fund (EDF) in 2010
Bilateral ODA flows
(1) Source : World Population Prospects - United Nations Population Division - 2010 revision
(2) UNSCR 1244/99

Table 5.13 Sectoral breakdown of ODA managed by the Commission in 2010

Commitments in € Million

543 (5%)

1 332 (13%)

2 (0%)

782 (7%)

1 411 (13%)

1 235 (12%)

1 070  (10%)

Disbursements in € Million

633 (6%)

1 248 (13%)

119 (1%)

1 445  (15%)

4 283 (40%)

3 478 (35%)

1 180 (12%)

794 ( 8%)

944 (10%)

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

Action relating to debt

Humanitarian aid : emergency response, reconstruction relief and rehabilitation,
disaster prevention and preparedness
Other/Unallocated : admin. costs, unspecified

EN 

189 

   EN 

 
      
      
          
        
          
        
        
          
          
          
          
        
      
          
          
        
          
          
          
          
        
          
          
        
   
        
 
            
        
          
        
        
          
        
 
            
      
      
        
          
          
          
          
          
          
          
          
          
          
        
          
          
 
 
Table 5.14 Detailed description of ODA by sector in 2010 - Commitments

Commitments in € 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 and services
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
Refugees in donor countries
Unallocated/unspecified

GRAND TOTAL

Total

Managed by 
EuropeAid

Managed by 
Other DG's

4 283.33
626.21
218.92
105.39
28.14
273.77
687.17
75.13
612.04
105.45
513.78
1 941.77
408.95
1 070.09
639.88
22.83
319.49
1.17
86.73
1 235.15
873.74
821.09
40.85
11.80
188.06
187.36

0.70
173.35
162.35
11.00
1 410.73
413.27
997.47
781.50
583.74
197.76

2.33
2.33
1 332.40
1 145.18
67.10
120.12
542.70
462.23

3 506.11
569.26
195.08
100.50
26.90
246.77
679.46
67.42
612.04
93.44
484.28
1 293.21
386.47
840.93
464.83
4.50
287.88

83.73
947.34
601.64
549.74
40.10
11.80
180.09
180.09

165.61
154.61
11.00
845.87
269.12
576.75
691.50
493.74
197.76

2.33
2.33
240.60
144.68
29.10
66.82
343.19
279.47

80.47
10 658.23

63.72
7 417.87

777.22
56.95
23.83
4.89
1.24
27.00
7.71
7.71

12.00
29.50
648.57
22.49
229.16
175.05
18.33
31.61
1.17
3.00
287.81
272.10
271.35
0.75

7.97
7.27

0.70
7.74
7.74

564.86
144.15
420.71
90.00
90.00

1 091.80
1 000.50
38.00
53.30
199.51
182.76

16.75
3 240.36

Breakdown by sector of Official Development Assistance (ODA) financed on the EU budget and the European 
Development Fund (EDF) in 2010
Bilateral and multilateral ODA flows

EN 

190 

   EN 

 
 
Table 5.15 Detailed description of ODA by sector in 2010. - Disbursements

Disbursements in € 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 and services
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
Refugees in donor countries
Unallocated/unspecified

GRAND TOTAL

Total

Managed by 
EuropeAid

Managed by 
Other DG's

3 478.30
737.93
306.04
182.75
57.82
191.32
335.69
122.30
213.39
89.62
382.05
1 499.06
433.96
1 179.76
753.86
28.48
279.06
33.15
85.21
944.19
446.62
384.28
35.63
26.71
264.35
231.70
29.64
3.01
233.22
217.66
15.55
794.02
179.86
614.16
1 444.57
1 102.00
342.57

119.22
119.22
1 247.83
1 094.85
102.34
50.64
632.92
535.93
5.77
91.21
9 840.81

2 818.42
657.46
271.44
182.03
52.06
151.94
328.49
117.79
210.70
72.49
349.00
1 003.63
407.35
1 019.69
668.25
24.44
231.90
25.55
69.54
880.66
417.04
356.16
34.53
26.34
247.58
216.22
28.37
2.98
216.05
201.07
14.98
539.25
141.28
397.96
1 293.40
951.30
342.10

114.22
114.22
260.14
168.58
78.60
12.95
428.44
353.58

74.87
7 354.22

659.88
80.47
34.60
0.72
5.77
39.38
7.20
4.51
2.68
17.13
33.04
495.44
26.61
160.07
85.61
4.03
47.16
7.60
15.67
63.53
29.59
28.12
1.10
0.37
16.77
15.48
1.27
0.03
17.17
16.59
0.58
254.78
38.58
216.20
151.17
150.70
0.47

5.00
5.00
987.69
926.27
23.74
37.68
204.48
182.36
5.77
16.35
2 486.59

Breakdown by sector of Official Development Assistance (ODA) financed on the general EU budget and the 
European Development Fund (EDF) in 2010
Bilateral and multilateral ODA flows

EN 

191 

   EN 

 
 
Table 5.16 EuropeAid in 2010 - A closer look: sectoral breakdown per region

Commitments in € Million

Sector of destination

ENPI 
East

ENPI 
South

ENPI

Asia

Latin 
America

ACP

Multi 
Region

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 and services
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
Refugees in donor countries
Unallocated/unspecified

GRAND TOTAL

306
32

32
71

71
5
13
174
11
101
11

85

5
45

45
45

19

19
21
21

58

58
551

732
62
20
10

32

2
242
208
218
91
64
5
23

147
84
84

63
63

112

112
20
20

88
88

1 190

1

0
1

48

48

2

2
51

503
199
73
91

36
142
39
103
7

84
71
58

50

9
150
37
22
4
11
32
32

81
70
11
180
23
157
21

21

24

18
6

216
80

18
62

20
100
17
9

9

0
58
27
4
23

32
32

89
12
77
7

7

1 219
182
96

86
405
17
388
22
209
364
37
546
390
0
86

70
434
342
342

8
8

85
85

286
147
140
516
453
63

2
2
121
50
11
60
2
0

529
15
6

9

61
11
50
57

363
31
35

35

113
113
98
14
1

112
88
24
107

107

7
7

1
281
279

3 506
569
195
101
27
247
679
67
612
93
484
1 293
386
841
465
5
288

84
947
602
550
40
12
180
180

166
155
11
846
269
577
692
494
198

2
2
241
145
29
67
343
279

936

380

1
3 127

2
1 184

64
7 418

Breakdown by sector and region of external aid financed on the general EU 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 : Armenia, Azerbaijan, Belarus, Georgia, Republic of Moldova, Ukraine (Russia excluded)
ENPI South : Algeria, Egypt, Jordan, Lebanon, Libya, Morocco, Occupied Palestinian territory, Syria, Tunisia (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

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, Surina

Multi region : covering several regions or unspecified location.

EN 

192 

   EN 

 
 
Table 5.17 EuropeAid in 2010 - A closer look: sectoral breakdown per region

Disbursements in € Million

Sector of destination

ENPI 
East

ENPI 
South

ENPI

Asia

Latin 
America

ACP

Multi 
Region

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 and services
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
Refugees in donor countries
Unallocated/unspecified

GRAND TOTAL

204
38
7
0
1
30
19
15
4
6
22
106
13
130
21
2
98
8
1
46
4
3
1

22
18
4

19
19
0
46
9
37

14
13
2
0
30

564
94
33
8
14
39
45
41
3
3
35
142
246
148
77
1
47
5
19
159
27
27
0
0
110
110

23
22
1
19
3
16
36
18
18

96
91
2
3
4

30
470

4
1 026

8
0
0

0

0

1
7
0
4
2

2

0
1

1

1
15
1
14

8

8
36

554
225
77
92
10
45
104
36
68
10
18
152
45
25
4
7
11
2
1
79
32
24
6
2
14
11
2
0
32
31
1
71
18
53
87
18
69

34
4
28
2
3

192
62
20
1
17
23
5
2
3
4
14
87
20
29
10
6
7
5
2
77
46
37
9
0
18
18
0

13
13
1
66
27
39
31
17
14

5
2
1
2
2

1 164
224
119
80
9
15
102
20
82
36
258
468
76
674
554
9
59
5
46
466
257
223
10
24
82
58
21
2
127
116
11
286
65
221
1 080
898
182

114
114
109
58
46
5
22
6

3
853

2
403

17
3 916

132
16
15
0
1

54
3
50
13
1
42
7
9

9
0

54
52
44
8

1
1
0

0
0
0
35
17
18
59

59

1

1
359
348

11
650

2 818
657
271
182
52
152
328
118
211
72
349
1 004
407
1 020
668
24
232
26
70
881
417
356
35
26
248
216
28
3
216
201
15
539
141
398
1 293
951
342

114
114
260
169
79
13
428
354

75
7 354

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 : Armenia, Azerbaijan, Belarus, Georgia, Republic of Moldova, Ukraine. (Russia excluded)
ENPI South : Algeria, Egypt, Jordan, Lebanon, Libya, Morocco, Occupied Palestinian territory, Syria, Tunisia. (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

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, Surina

Multi region : covering several regions or unspecified location.

EN 

193 

   EN 

 
 
Table 5.18 External aid in 2010 - A closer look: sectoral breakdown per instrument

Commitments in € million

Sector of destination

ENPI

EDF

DCI - 
Geo (1)

DCI - 
Thema 
(2)

Food 
Facility 
(3)

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 and services
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
Refugees in donor countries
Unallocated/unspecified

GRAND TOTAL

1 022
94
20
10

1 046
159
81

64
62

62
2
255
382
227
151
75
5
66

5
192
84
84

108
108

179

179
41
41

88
88

63
40

78
269
7
262
20
205
356
37
529
378

81

70
259
189
189

2
2

68
68

229
92
137
458
395
63

2
2
121
50
11
60
1

838
287
73
91
18
105
248
39
209
7
20
191
86
55

46

9
185
40
4
25
11
64
64

81
70
11
259
27
232
0

0

24

18
6
52
52

417
30
21

9

97
18
79
64
4
186
36
37
12

25

305
283
266
15
1
6
6

17
17

155
150
5
53
24
29

7
7

1
74
36

23
1 735

1
2 646

1 413

38
1 049

5
5
5

140
34
106

7
7

152

157

120

214

157

120

214

69

69

445
38
5
5
1
27
8
8

12
30
335
22
229
175
18
32
1
3
285
272
271
1

8
7

1
5
5

563
142
421

58

38
20
5
5

1
1

0
0

183

71

214

1 027
994

33
7
7

1 035

43
39

4
1 564

9
9

0
165

24
19
19

3
3

1
1
0

0

4
1
1

3
3

26
2
24
90
90

7
7

281
266

15
431

4 283
626
219
105
28
274
687
75
612
105
514
1 942
409
1 070
640
23
319
1
87
1 235
874
821
41
12
188
187

1
173
162
11
1 411
413
997
782
584
198

2
2
1 332
1 145
67
120
543
462

80
10 658

Breakdown by sector and region of external aid financed on the EU Budget 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
(3) Food Facility : facility for rapid response to soaring food prices in developing countries, pilot project — Finance for agricultural production
(4) Administrative costs of donors : column  "Other" includes EDF contribution to common administrative support expenditure and also expenditure concerning others instrument
(5) CFSP is financed on the general EU Budget managed by DG External Relations

EN 

194 

   EN 

 
 
Table 5.19 External aid in 2010 - A closer look: sectoral breakdown per instrument

Disbursements in € Million

Sector of destination

ENPI

EDF

DCI - 
Geo (1)

DCI - 
Thema 
(2)

Food 
Facility 
(3)

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 and services
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
Refugees in donor countries
Unallocated/unspecified

GRAND TOTAL

720
129
39
7
15
68
62
55
7
2
58
213
255
225
100
2
89
13
20
203
29
28
1
0
132
127
4

43
41
2
73
10
63
18
18

110
104
3
3
59
40

876
172
116
39
4
12
71
16
55
8
215
353
58
653
553
7
54
4
35
290
101
76
3
22
65
42
21
2
124
116
8
236
49
188
840
783
56

114
114
105
54
46
5
21
5

701
313
96
122
24
71
96
36
60
3
55
183
50
56
14
13
14
7
7
117
41
33
6
2
30
27
3
0
45
44
1
110
28
82
34
32
2

37
6
29
2
54
51

19
1 408

15
3 135

3
1 108

340
40
19
13
9
0
89
6
83
59
19
101
31
22
1
1
11
2
6
143
123
97
25
2
18
18
0

2
1
1
93
55
39
160
47
113

8
5
0
2
73
38

35
839

14

6

6

8

97
97
97

1

1
242
71
171

7
7

362

145
0
0
0

0
0
0

0

144
1
0

0

1

1

0
0

8
7

84
10
9
0
1

2

2

72
1
0

0

0
0
0

1

1

32
16
14
2
9
5

0
154

5
127

204

204

61

61
0

1
1

0
62

0
0

204

360
52
7
1
4
39
5
4
1
17
33
226
27
159
86
4
46
8
16
62
30
28
1
0
17
15
1
0
16
15
1
251
36
216
50
50
0

5
5
10
1
9
0
45
39
6
1
943

34
22
19
1
1
0
5
5

3
2
3
4
1
1
2
0

32
25
25
0

2
2

0
4
1
3
28
3
25
101
101

5
5

348
335

13
551

3 478
738
306
183
58
191
336
122
213
90
382
1 499
434
1 180
754
28
279
33
85
944
447
384
36
27
264
232
30
3
233
218
16
794
180
614
1 445
1 102
343

119
119
1 248
1 095
102
51
633
536
6
91
9 841

940
905

35
8
8

948

Breakdown by sector and region of external aid financed on the general EU Budget 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
(3) Food Facility : Facility for rapid response to soaring food prices in developing countries, Pilot project — Finance for agricultural production

(4) Administrative costs of donors : column  "Other" includes EDF contribution to common administrative support expenditure and also expenditure related to all instrument included in this table.

(5) CFSP is financed on the general EU Budget managed by DG External Relations

EN 

195 

   EN 

 
 
Table 5.20 External aid in 2010 - A closer look: sectoral breakdown per instrument

Commitments %

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

ENPI

EDF

DCI - Geo

DCI - Thema

Food Facility

EIDHR

IFS

NSI

CFSP

IPA

Echo

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

Action relating to debt

Humanitarian aid : E-emergency response, reconstruction relief and rehabilitation, disaster prevention and preparedness

Other/Unallocated : admin. costs, unspecified

Table 5.21 Budget Support 2010 : breakdown by instrument

Commitments in € Million

General 
Budget 
Support

Sector 
Budget 
Support

Total 
Budget 
Support

Total ODA

Budget 
Support / 
Total ODA

European Neighbourhood and Partnership Instrument (EN

41 

Development Cooperation Instrument - Geographic (1)

-

Development Cooperation Instrument -Thematic (2)

European Development Fund (EDF)

Grand Total

58 

395 

494 

548 

393 

78 

277 

589 

393 

136 

671 

1 735 

1 413 

1 049 

2 646 

1 296 

1 789 

6 843 

34%

28%

13%

25%

26%

(1) DCI - Geographic : Asia, Latin America, South Africa
(2) DCI - Thematic : Migration, Food security, Non-state actors, Environment, Human & social development, ACP sugar 
programmes

EN 

196 

   EN