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
Date: 2011-07-06
Institutions: European Commission
Subjects: aid evaluation, cooperation policy, developing countries, development aid

EUROPEAN COMMISSION 

Brussels, 6.7.2011 
COM(2011) 414 final 

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 

{SEC(2011) 880 final} 

 
 
 
 
  
 
A difficult environment 

The world began a fragile recovery in 2010 from the financial and economic crisis of 2008-
2009.  Progress  was  uneven  and  patchy.  Advanced  economies  like  the  United  States,  Japan 
and  the  European  Union  recorded  modest  growth.  Emerging  countries  led  by  China,  India, 
Russia  and  Brazil  advanced  more  strongly.  Developing  countries,  particularly  low-income 
ones hardest hit by the crisis, had little scope to expand their economies. Some of them were 
also the first to suffer from a new surge in world commodity, energy and food prices which 
occurred during the year. They were unable to create or exploit new economic possibilities at 
home or abroad. At the same time, world population increased by 79.3 million people, mostly 
in  developing  countries.  The  chances  of  reaching  the  Millennium  Development  Goals 
(MDGs) by the agreed 2015 deadline slipped.  

As a result, unemployment and poverty levels increased in poor countries, affecting a further 
120-150 million people worldwide in 2009-2010. Young people in particular felt the impact, 
raising social tension and migratory pressures. Most developing country governments did not 
have the resources to apply anti-cyclical policies. They therefore had to reduce budget deficits 
by cutting expenditure. This negatively affected social, health and education programmes and 
widened  the  gap  between  rich  and  poor.  Income  inequality  also  increased  in  both  advanced 
and developing countries.  

Such was the background to the EU’s efforts in 2010 to provide more and better aid and to 
deliver it faster and more effectively. One constant of EU development assistance during the 
year  was  to  provide  maximum  support  to  global  and  local  efforts  to  reach  the  MDGs.  The 
intention  was  to  prevent  progress  from  backsliding  because  of  the  crisis  and  to  consolidate 
what has been achieved. The EU was a major player at the UN MDG summit in September 
which agreed to redouble efforts to deliver the full range of MDGs by 2015. 

Keeping MDGs on target 

This  was  the  biggest  event  of  2010  for  the  MDGs.  The  EU  played  an  important  role  in  the 
run-up to and during the summit. To underline  its commitment to supporting global efforts, 
the EU announced during the session a €1 billion MDG initiative to intensify its assistance to 
help  its  partners  in  African-Caribbean-Pacific  (ACP)  countries  attain  the  MDGs,  especially 
those most off-track. 

The EU is committed to maintaining support for its MDG policies at a time when EU aid is 
coming  under  pressure  as  governments  cut  back  on  spending  so  as  to  reduce  their  budget 
deficits. 

Progress on the eight MDGs has varied significantly. Progress has been good for example on 
universal  primary  education  (MDG2)  and  access  to  water  (MDG7).  However  1.4  billion 
people  still  live  in  extreme  poverty,  and  several  MDGs  are  seriously  off-track.  Maternal 
health  (MDG5)  and  access  to  sanitation  (part  of  MDG7)  need  more  attention.  Sub-Saharan 
Africa has fallen behind on most MDGs.  

In April 2010, the European Commission issued a set of concrete proposals for EU action to 
help  developing  countries  achieve  their  MDGs  on  time.  This  12-point  action  plan  gives 
priority to countries most off-track, including those in conflict or other fragile situations. The 
plan was accompanied by five working papers which analysed in turn progress on the MDGs, 

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finance  for  development,  aid  effectiveness,  aid  for  trade,  and  policy  coherence.  Other 
Commission contributions on food security, global health, tax for development, education and 
gender fed into the EU position paper for the UN review summit. 

In  its  final  document,  summit  participants  pledged  to  redouble  efforts  to  achieve  the  MDG 
targets  by  the  2015  deadlines.  Commitments  came  from  both  developed  and  developing 
countries,  giving  the  MDG  process  new  momentum. One promising avenue is to encourage 
developing countries to mobilise more domestic revenues to help fund their development, for 
example by increasing their capacity to raise tax revenues in line with the principles of good 
governance  in  tax  matters.  In  this  context,  the  Commission  adopted  a  communication1  in 
April  2010  to  strengthen  the  link  between  tax  and  development  policies,  and  enhance  good 
governance in the tax area (transparency, exchange of information and fair tax competition). It 
is working to establish a partnership with the African Tax Administration Forum. The EU is 
also committed to supporting the expansion of the private sector in developing countries. 

More effective cooperation  

The  Lisbon  Treaty  requires  the  EU  to  take  account  in  all  its  policies  of  the  objectives  of 
development  cooperation.  The  Commission  issued  a  work  programme  on  policy  coherence 
for  development  for  the  period  2010-20132  in  April.  The  objective  is  to  refine  further  the 
coherence between development assistance and other relevant EU policy areas with a bearing 
on external relations like trade, tax and finance, food security, climate change, migration and 
security. 

The  European  Commission  took  several  initiatives  designed  to  improve  its  development 
policies.  These  include  public  consultations  on  the  role  of  EU  aid  in  support  of  inclusive 
growth and sustainable development (see box) and on the role of the EU’s external financial 
instruments. For the consultation on these instruments, 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 assistance. 

The future of EU development policy 

In November 2010, the Commission launched a public debate with the publication of its green 
paper "EU development policy in support of inclusive growth and sustainable development 3" 
This  presented  options  on  ways  to  make  EU  development  policy  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  it  looks  at  climate  change,  energy  and 
environment policies as drivers of sustainable development as well as the role of agriculture 
and biodiversity in achieving food security and boosting growth.  

The  results  of  this  consultation  will  feed  into  Commission  policy  proposals  later  in  2011, 
including those for modernising European development policy.  

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COM(2010)163 final, 21.04.2010 
SEC(2010) 421 final, 21.04.2010 
COM(2010) 629 final 

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The  Commission  also  launched  a  public  consultation  on  the  use  of  budget  support  for 
delivering  EU  assistance4.  It  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. 

Budget support is a mechanism to transfer aid funds to the national treasury of the beneficiary 
country if it meets agreed conditions for payment. During 2010, budget support represented 
the  EU  budget  and  the  EDF.  General  budget 
24%  (€1.8  billion)  of  all  commitments  from 
support is where the EU supports the implementation of a national development strategy and 
sector budget support is where EU funds help the partner country in a given sector. 

Another  area  under  development  is  the  blend  of  grants  and  loans  in  funding  development 
assistance  so  as  to  include  more  loan  financing,  particularly  from  the  European  Investment 
Bank. Given today’s scarcity of grant resources, these blending mechanisms can benefit both 
beneficiaries  and  donors  in  helping  achieve  easier  access  to  financing  with  high  leverage 
effect. One example is the innovative blending instrument launched under the energy facility. 
An amount of €40 million, to be  blended with funding from Member States and the EIB, is 
now  available  to  co-finance  medium-size  projects  aimed  at  increasing  access  to  sustainable 
energy  services  in  ACP  countries.  The  Commission  plans  to  further  expand  innovative 
financing  in  external  action  so  as  to  optimise  the  financial  and  policy  leverage  of  the  EU 
budget by attracting other public and private financial institutions. 

Effective  aid  is  an  essential  tool  for  achieving  the  MDGs.  Every  euro  set  aside  for 
development has to be used efficiently and effectively. The EU is committed to increasing its 
aid effectiveness. 

Externally,  the  Commission  coordinates EU positions on  aid effectiveness at  various levels, 
including the OECD, the UN, the G8 and the G20. This work will be relevant as preparations 
advance for the fourth UN High-Level Forum on aid effectives in Busan, South Korea at the 
end of November 2011.  

At  the  OECD,  the  Commission  co-chaired  in  2010  the  Development  Assistance  Committee 
(DAC)  aid-effectiveness  working  party,  which  seeks  to  develop  best  practice  and  policy 
coherence  among  donor  countries.  The  Commission  contributed  inputs  to  increase  the 
operational  effectiveness  of  the  use  of  country  systems,  the  division  of  labour,  more  aid 
transparency and accountability, and better technical cooperation.  

With the 27 EU Member States, the Commission implemented the operational framework on 
aid  effectiveness  agreed  in  2009  which  contains  a  set  of  commitments  to  strengthen  the 
implementation  of  aid  effectiveness  principles.  This  focuses  inter  alia  on  the  division  of 
labour  among  donors  so  as  to  reduce  fragmentation  of  aid  efforts.  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. 

Another mechanism to improve the division of labour is the system whereby the Commission 
delegates to a Member State, or vice versa, the execution of a particular project if it is better 
placed to implement it.  

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COM(2010) 586 final, 19.10.2010 

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The  Commission  also  proposed  ten  high-impact  actions  to  improve  aid  effectiveness, 
addressing  three  main  priorities:  division  of  labour,  use  of  country  systems  and  enhanced 
technical cooperation.  

In  terms  of  quality  of  aid  management,  the  Commission  also  substantially  increased  the 
number  of  ongoing  and  completed  projects  that  were  monitored  during  2010.  It  made 
proposals,  to  the  Council  of  the  European  Union  and  European  Parliament,  to  simplify 
tendering and grant procedures for the award and execution of projects. Staff training was also 
intensified. 

Lastly, the Commission proposed to strengthen the capacity of the European Investment Bank 
to support EU development objectives.  

Closer cooperation with international donors  

During  the  year,  the  EU  strengthened  its  cooperation  with  traditional  donors  and  new 
emerging  partners.  The  EU  and  the  United  States  agreed  at  their  summit  in  November  to 
develop  a  joint  work  plan  on  the  in-country  division  of  labour,  transparency  and 
accountability and to implement it in selected partner countries during 2011. The first annual 
policy  dialogue  on  development  with  Japan  took  place  in  April.  In  the  first  initiative  of  its 
kind, emerging and advanced economies agreed at the G20 summit in November in Seoul on 
a  multi-year  action  plan  to  overcome  key  obstacles  to  growth,  particularly  in  low-income 
countries.  New  countries,  China,  Brazil  and  some  Arab  states,  have  joined  the  donor 
community, bringing additional resources as well as new approaches. 

The  Commission  continued  contact,  cooperation  and  dialogue  with  the  UN  and  the  World 
Bank.  The  Commission  and  the  UN  now  work  together  in  more  than  100  countries,  on 
projects ranging from mine clearance to sanitation. In 2010, the EU contributed €597 million 
to the UN and its agencies and €192 million to the World Bank. Cooperation with the UN and 
the  World  Bank  makes  more  and  bigger  projects  possible,  with  positive  impact  for 
beneficiaries and for the effective and efficient delivery of aid. World Bank expertise has been 
particularly  valuable  for  budget  support,  public  finance  management,  debt  reduction  and 
private sector development. 

EU financial regulations allow international organisations to manage EU funds in accordance 
with  their  own  procedures,  provided  these  meet  EU  standards  for  implementation  and 
monitoring, and provided the EU can carry out spot-checks on the ground where necessary. 

The  EU  also  cooperates  with  the  Council  of  Europe,  the  Organisation  for  Security  and 
Cooperation in Europe (OSCE) and the International Organisation for Migration (IOM). 

Sharing responsibilities with partners  

Aid efficiency and the MDGs featured  in the EU’s cooperation with its partners around the 
world  during  2010.  A  series  of  regional  and  bilateral  summits  culminated  in  the  EU-Africa 
summit in Tripoli in November. The summit adopted the second action plan (2011-2013) of 
the  Joint  Africa-EU  Strategy,  to  deliver  swiftly  concrete  results  in  areas  including  MDGs, 
trade,  energy,  peace  and  security,  governance  and  human  rights,  regional  integration,  and 
migration. In parallel, concrete projects were also launched or continued. The list of projects 
includes  action  on  small  arms  and  light  weapons,  the  ACP  observatory  on  migration,  the 
Nyerere  programme,  the  Caprivi  electricity  interconnector,  the  east  Africa  submarine  cable 

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system,  the  popularisation  of  science  and  technology,  a  travelling  exhibition  on  African  art 
and the promotion of public participation. 

The EU’s flagship for development cooperation – its partnership with 79 countries in Africa, 
the Caribbean and Pacific – entered a new phase when the revised Cotonou Agreement took 
effect  in  November.  The  revision  adapts  the  partnership  to  global  changes  and  the  growing 
importance  of  regional  integration,  the  interdependence  between  security  and  development, 
and  the  persistent  challenges  of  HIV/AIDS  and  food  security.  Payments  from  the  European 
Development  Fund  (EDF),  the  main  source  of  ACP  aid  funding,  reached  a  record  of  €3.32 
billion in 2010, compared with €3.13 billion in 2009. This puts the 10 th EDF, which started in 
2008, on track to commit its entire resources on schedule by the end of 2013. 

During 2010, the Commission delivered budget support programmes (€495 million) to Africa 
for poverty reduction with a continued strong focus on the MDGs. It also continued efforts to 
combat the short-term fiscal impact of the economic crisis on the most vulnerable countries 
through the Vulnerability FLEX instrument which allows poverty-focused programmes to be 
maintained in the face of tighter fiscal constraints. The EU has been active in fighting hunger 
in  Africa  via  its  food  facility  and  specific  food  security  projects.  Many  EU  projects  in  the 
region  also  directly  target  health-related  MDGs.  The  EU  continued  its  action  in  fragile 
countries  and  plays  a  leading  role  in  sectors  like  democratic  governance,  justice,  security 
sector reform, infrastructure, public financial management and rural development. 

Relations  with  the  EU’s  neighbours  in  eastern  Europe  and  the  southern  Mediterranean 
progressed  in  2010  in  economic  terms,  but  not  enough  in  terms  of  democratic  reforms  and 
human  rights.  This  was  the  conclusion  of  a  Commission  evaluation  of  the  European 
Neighbourhood Policy (ENP) and the fourth set of ENP reports5 adopted in May. These show 
clearly the benefits partner countries derive from the relationship with the EU. Progress was 
significant  in  transport,  energy,  climate  change,  research  and  development  and  health  and 
education. In the eastern partnership region, negotiations on an enhanced association and free 
trade agreement with Ukraine continued while negotiations for association agreements opened 
with  Moldova,  Armenia,  Azerbaijan  and  Georgia.  The  seventh  round  of  the  slow-moving 
negotiations  for  a  new  agreement  with  Russia,  which  is  not  part  of  the  ENP,  finished  in 
December.  In  the  southern  neighbourhood,  a  summit  took  place  with  Morocco  in  March  to 
mark  its  “advanced  status”  as  an  EU  partner.  Two  attempts  to  hold  a  Union  for  the 
Mediterranean summit, first in June and then in November, failed. 

EU assistance to the ENP region focused 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. 

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

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COM(2010) 207, 12.05.2010 

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EU  relations  with  Asia  are  increasingly  complex.  The  economic  and  political  emergence  of 
Asian countries produces dramatic changes affecting the balance of global relations. The EU 
held summit meetings with China in October and with India in December. Many contacts took 
place regionally e.g. with ASEAN (Association of SouthEast Asian Nations) and bilaterally. 
Cross-cutting  issues  like  the  environment  and  climate  change  were  important  themes. 
Partnership  or  free  trade  agreements  have  been  signed  or  are  under  negotiation  with  India, 
Indonesia, Mongolia, the Philippines and Vietnam. 

Asia’s  economic  vitality  and  rapid  industrialisation  as  embodied  by  China  and  India  are 
impressive. But although an expanding middle class has benefited considerably, Asia is still 
home to two thirds of the world’s poor. Development assistance is therefore still high on the 
EU’s Asian agenda, targeting poverty reduction, health and education. 

Central  Asian  transition  countries  enjoyed  significant  growth  rates  over  the  past  decade  but 
have been considerably affected by the recent crisis. EU assistance focused 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. An Investment Facility for Central Asia has 
been  created,  focusing  on  blending  grants  and  loans  in  energy,  environment,  small  and 
medium enterprises and social infrastructure. 

The annual EU summit with Latin America and the Caribbean took place in Madrid in May. 
After  six  years  of  stalemate,  negotiations  on  an  association  agreement  between  the  EU  and 
Mercosur resumed, with several negotiation rounds and a timetable set for 2011. The summit 
launched  the  Latin  America  investment  facility  (LAIF)  and  endorsed  the  conclusion  of 
negotiations  for  an  association  agreement  with  Central  America  and  of  a  trade  agreement 
between the EU and Colombia and Peru. The fight against drugs also featured in EU contacts 
with  Latin  American  partners,  particularly  the  cost  of  anti-drug  operations  and  measures  to 
deal  with  the  transit  of  drugs  from  Latin  America  to  Europe  via  west  Africa.  In  May,  the 
European Commission adopted its first-ever country strategy paper for Cuba, to serve as the 
basis for future bilateral cooperation. 

An  average  of  40%  of  the  Latin  American  population  still  lives  in  poverty.  In  2010,  the 
Commission adopted 24 actions in Latin America 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.  

Integrating cross-cutting issues 

Throughout the year, the EU worked with development partners on cross-cutting issues which 
affect  all  strands  of  EU  development  policy.  The  EU  aims  to  make  these  issues  an  integral 
part of all development activities. Two of these were addressed at conferences in Nagoya and 
Cancun on new regimes for biodiversity and climate change. The Nagoya negotiations ended 
with a protocol on access to genetic resources and a strategic plan for 2011-2020. The Cancun 
conference  adopted  a  package  of  decisions,  putting  the  negotiations  for  a  new  international 
post-Kyoto climate regime back on track after the inconclusive 2009 Copenhagen meeting. 

Democratic  governance  is  another  cross-cutting  issue  where  the  EU  has  provided  sector-
specific support and carried out information and awareness-raising activities. Governance is a 
recurring  subject  in  policy  dialogue  with  partner  countries.  It  is  essential  for  a  sound 

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investment climate, good public finance management, reducing corruption and strengthening 
institutions.  

Gender equality is one of the five principles underlying EU development policy. In June, an 
EU action plan for gender equality and women’s empowerment in development was adopted. 
It aims to reinforce the EU’s efforts to advance gender equality in developing countries and 
the  achievement  of  the  MDGs.  The  action  plan,  which  covers  the  period  2010-2015,  will 
ensure  that  gender  issues  are  part  of  the  annual  and  multi-annual  planning  for  EU 
development programmes and projects. 

The  European  Instrument  for  Democracy  and  Human  Rights  (EIDHR)  funds  human  rights 
projects  and  initiatives  around  the  world  in  the  context  of  relevant  EU  policies.  It  is  the 
concrete  expression  of  the  EU’s  intention  to  integrate  support  for  democracy  and  human 
rights  into  all  its  external  policies.  The  EIDHR  sets  aside  part  of  its  budget  for  small-scale 
projects  in  individual  countries.  Among  its  priority  issues  are  women  and  children’s  rights 
and the protection of minorities. The EIDHR also organises election observation missions and 
election  assistance  projects.  In  2010,  this  activity  concerned  nearly  20  countries,  mainly  in 
Africa, at a total cost of €100 million. 

Food security  

In  May,  the  EU  adopted  a  new  policy  framework  for  food  security6.  It  is  based  on  helping 
local  farmers  and  smallholders  in  needy  countries  around  the  world,  assisting  vulnerable 
population  groups  and  drawing  up  regional  agriculture  and  food  security  policies.  The  new 
policy framework carries forward the themes of the EU’s rapid-response food facility which is 
providing €1 billion to 50 target countries  in 2009-2011. The full amount had been committed 
by the end of 2010, with 80% already disbursed.  

In 2010, the EU also provided food and other emergency assistance to more than 150 million 
people hit by natural or man-made disasters in 80 countries around the globe. The final budget 
was more than €1 billion.  

The way ahead 

The slow exit from the global crisis, the higher food and energy prices, and popular pressures 
for  democratic  change,  especially  in  some  Mediterranean/Middle  Eastern  countries,  have 
created a new context for EU development policy in 2011 and beyond. Responding to these 
challenges, while implementing aid priorities, will be a major task in 2011. 

Among these priorities is the follow-up to the MDG summit to ensure that the development 
policy  of  the  EU  and  its  Member  States  has  the  greatest  possible  impact  in  attaining  these 
objectives. The EU is committed to speeding up the process to bring the MDGs within reach 
between now and 2015. On climate change, the EU will follow up on the Cancun Agreement 
and  cooperate  with  developing  countries  partners  in  preparations  for  the  next  post-Kyoto 
negotiations in Durban in December 2011. The EU is focusing its fast-start funding on climate 
mitigation and on supporting adaptation efforts of the least-developed countries (LDCs) and 
small island developing states. The UN Conference on Sustainable Development in June 2012 

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COM(2010) 126 final, 31.3.2010 and COM(2010) 127 final 31.3.2010 

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will  provide  the  EU  with  an  occasion  to  advance  its  objective  of  promoting  a  transition 
towards a greener economy in developing countries. 

The EU will also prepare its position for the high-level aid effectiveness meeting in Busan in 
November and the fourth UN conference on Least Developed Countries in Istanbul in May.  

Besides  reinforcing  its  aid  cooperation  with  the  US,  Japan  and  the  international  financial 
institutions, the EU will strongly support emerging economies as development partners. Their 
role  includes  South-South  programmes  and  projects  as  well  as  triangular  cooperation  with 
traditional  donors.  The  European  Commission  will  participate  in  the  follow-up  activities  to 
the  G20  summit  in  Seoul  in  November  via  its  development  working  group.  It  will  also 
promote further cooperation on development with China and Africa. 

Internally,  the  European  Commission  has  set  an  ambitious  reform  programme  for  2011 
through a series of policy initiatives, including the follow-up to consultations on the future of 
EU development policy. The aim is to turn it into a catalyst for building the internal capacity 
of developing countries to generate inclusive and sustainable growth and mobilise their own 
economic, natural and human resources in this direction. A communication later in 2011 will 
set the framework for EU development assistance until 2020. 

The  Commission  will  also  issue  communications  on  budget  support  and  on  investment  and 
growth  in  developing  countries.  It  will  publish  reports  on  official  development  assistance 
(ODA) by the EU and Member States, and on the coherence of development policy with other 
EU  policies,  assessing  EU  performance  on  five  major  issues:  the  integration  of  developing 
countries in the world economy, food security, climate change, migration and security. During 
2011,  the  Commission  will  also  prepare  proposals  for  the  structure  of  EU  budget  spending, 
including the allocation for development assistance, for the financial period 2014-2020.  

Institutionally,  the  changes  brought  in  by  the  Lisbon  Treaty  should  contribute  to  better 
programming and management of EU aid. The most relevant are:  

• 

• 

• 

the nomination of a High Representative for Foreign Affairs & Security Policy who, 
as  a  Commission  Vice-President,  is  responsible  for  ensuring  the  consistency  of  the 
Union's external action and who also chairs the Foreign Affairs Council;  

the  creation  of  the  European  External  Action  Service  (EEAS)  which  serves  the 
HR/VP, the President of the European Council and the Commission;  

new  possibilities  for  enhanced  cooperation  among  Member  States  and  joint 
programming.  

This new structure, together with adequate financial resources for the 2014-2020 period, will 
reinforce the EU’s status as a main international actor and supporter of global development.  

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Commitments 2010 in € million

Table 1: Sectoral Breakdown

7. Humanitarian aid : 
emergency response, 
reconstruction relief and 
rehabilitation, disaster 
prevention and 
preparedness 
1 332 (12.5%)

9. Other/Unallocated : 
admin. costs, unspecified
  543  (5.1%)

6. Action relating to debt;  2 
(0%)

5. Budget support, food 
aid, food security
782 (7.3%)

4. Multisector/Crosscutting 
: environment, other
 1 411 (13.2%)

1. Social infrastructures: 
education, health, water, 
government and civil 
society, other 
 4 283  (40.2%)

3. Production : agriculture, 
forestry and fishing, 
industry, mining and 
construction, trade and 
tourism
1 235 (11.6%)

ODA resources managed by European Commission

2. Economic infrastructures 
and services : transport, 
communications, energy, 
other services
1 070 (10.0%)

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Table 2: The European Consensus: areas relating to EU development cooperation

Commitments 2010 in € million

10. Multi areas
 1 897  (17.8%)

1. Governance and support 
for economic and 
institutional reforms; 1 547 
(14.5%)

2. Trade and regional 
integration
  449 (4.2%)

3. Infrastructure and 
transport
  751 (7%)

4. Water and energy
  833 (7.8%)

5.Social cohesion and 
employment
 370 (3.5%)

6. Human and social 
development
1 275  (12%)

9. Conflict prevention and 
fragile states
 1 822  (17.1%)

8. The environment and 
sustainable management 
of natural resources
  466 (4.4%)

7. Rural development, 
territorial planning, 
agriculture and food 
security
1 248  (11.7%)

ODA resources managed by European Commission

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Table 3: 2000-2010 Poverty focus

Disbursements

50%

40%

30%

20%

10%

0%

2000

2001

2002

2003

LDC

OLIC

2004

LMIC

2005

2006

2007

2008

2009

2010

UMIC

REGION / UNALLOC

LDC+OLIC

LDC : Least Developed Countries
OLIC : Other Low Income Countries
LMIC : Lower Middle Income Countries

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

Region/Unalloc.programmes benefit also to poorest countries LDC+OLIC.

In the new DAC list, which took effect in 2008, a number of OLICs have been reclassified as LMICs: Cameroon, Cape Verde, India, Republic of Moldova, 
Mongolia, Nicaragua, and Republic of Congo.

EN 

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Table 3 bis: 2000-2010 Poverty focus

Disbursements

60%

50%

40%

30%

20%

10%

0%

2000

2001

2002

2003

2004

LDC

OLIC

2005

LMIC

2006

2007

2008

2009

2010

UMIC

LDC+OLIC

LDC : Least Developed Countries
OLIC : Other Low Income Countries
LMIC : Lower Middle Income Countries
UMIC : Upper Middle Income Countries

In order to harmonize the presentation of this index with other donors, this index has also been calculated without taking into account regional 
and unallocated projects.

In the new DAC list, which took effect in 2008, a number of OLICs have been reclassified as LMICs: Cameroon, Cape Verde, India, Republic of Moldova, 
Mongolia, Nicaragua, and Republic of Congo.

EN 

12 

   EN