CELEX: 51983PC0534
Language: en
Date: 1983-09-15
Title: Proposal for a COUNCIL DECISION determining the general guidelines for 1984 concerning financial and technical aid to non-associated developing countries (submitted to the Council by the Commission)

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COM (83) 534
Vol. 1983/0204
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                             COM(83) 534 fi nal
                                             Brussels, 15 September 1983
                              Proposal for a
                            COUNCIL DECISION
   determining the general guidelines f or 1984 concerning financial
       and technical aid to non-associated developing countries
              (submitted to the Council by the Commission)
  COM(83) 534 final
 ---pagebreak---                 EXPLANATORY MEMORANDUM
1.  Background
    The Regulation governing the Community's financial
    and technical assistance for non-associated developing countries '
    provides that "acting on a proposal from the Commission and after
    consulting the European Parliament, the Council shall determine,
    in good time before the end of the year, the general guidelines
    to be applied to and for the following year"            (Article 9.2).
                                                                                 \
    These annual guidelines provide the opportunity to amplify the general
    objectives laid down in the Regulation, and to specify the proportions
    of funding which should be devoted to part i cul ar geographical areas
    or set aside for cert ain general provisions.
    The guidelines proposed by the Commission for 1984 are given in
    annex, and the following remarks are intended to cl arify certain
    general points which should be borne in mind when considering these
    guidelines.
2.  Summary of objectives
    The central objecti ves of t hi s financial and technical assistance
     are laid down in the above-mentioned Regulation, which
    notes, inter a l i a , that :
    -    the aid shall be directed to the poorest developing countries and
         to the poorest groups of t hei r populations, and shall be aimed
         essent i al l y at the rural sect or, with part i cul ar emphasis on
         improving food supplies;
     -   a subsidiary part of the funds shall be directed towards regional
         act ions, and a further proportion shall be set aside for exceptional
         measures, par t i cul ar l y for post-catastrophe reconstruction projects;
     -   the aid shall be in grant form, and may be used to cover both
          foreign or local costs; projects may be financed autonomously, or
          in cofinancement with Member States or international organisations;
     -   the allocat ion of funds shall help to maintain a Community presence
          in the major regions of the developing world.
 3.  Experience gained to date
     The experience gained since 1976 in implementing t hi s assistance has
     been described in some det ai l in the various annual implementation
      reports (the most recent of which covered the year ending 31 December
      1982).
     Briefly, it is clear that t hi s is now a well-established
      component of the Community's overall development policy, and one which
      is very well received by the reci pient countries to whom it is
      addressed. The assistance provided has always been concentrated on
      rural development (and pa r t i cul ar l y on problems rel ated to food
      production), and directed towards the poorest developing countries.
           Council   Regulation  442/81
 ---pagebreak---                                          -2-
   r;oro sp ,J<,i f ical ly, thè experience gained to date has also shown
   that one of thè key problems in t hi s area is that of absorptive
   capacity. These problems of preparing and implementing effective
   develop. nent projects are nat urall y most serious in thè very poorest
   countries, but remain important even with more developed reci pient s.
   The only way of overcoming these const rai nt s is to provide for substantial
   donor involvement in project preparation and implementation, and to pay
   clore at tent ion to project supervision and control. The special provision
   made fcr thè recruitment of ulisside experts is of great assistance here,
   but it must be stressed that chis is only a par t i al solution, and it
   remains essenti al to provide adequate s t af f resources within thè Commission,
   both in Brussels and in thè f i el d.
4. The volume of aid
   Over thè period 1976-83, t ot al commitment credi t s of 1,011.5 MECU have
   been made available for t h i s a s s i s t a n c e (of which 235.0 MECU under thè
   1983 budget). This funding has served some 30 recipient countries in
   Asia, Latin America and Africa, with a t ot al population of some
   1.350 million, and average per capita income of t 310 (1980 IBRD data).
   While thè volume of funding available has grown
    rapidly, it is cl early s t i l i very small in relation to thè needs of
   thè recipient countries to whom thè programme is addressed. Given thè
   pol i t i ca i will expressed on several occasions by Parliament and Council
    in favour of a si gni fi cant Community part i ci pat i on in thè development
   of these important regions of thè world, thè Commission considers it
   essenti al that thè 1984 budget should include commitment credi t s of
   300 MECU and payment credi t s of 180 MECU.
5.  Comments on thè proposed guidelines for 1984
    In most respects, thè guidelines proposed for 1984 are vi rt ual l y
    identical to those followed in previous years. This is thè case
    for thè geographical al l ocat i on of funding (75% for Asia, 20% for
    Latin America, and 5% for Africa), and for thè el i gi bl e recipients
    As in previous years, cert ain countries have been singled out for a
   par t i cul ar e f f or t in 1984, taking account of t he i r speci fi c
    circumstances or of oar t i cul ar Community obligations.
    The generai provisions for thè recruitment of outside experts (3% of
    budget credi ts) and for internationa l agri cul t ural research (2% - 3%)
    have also been set at levels similar to those of previous years, as has
    thè special reserve for post-cat astrophe projects (5-7%).
     Finally, it should be emphasised that thè overall objectives
    and thè choice of sectors and types of action, remain exactly as in previous
    years.           laid down in thè Regulation, pr i or i t y will continue to be given
    to rural development act ions, and part i cul arl y to thè improvement of food
    supplies.
          A full list of past recipients, Up to and including 1982, is given
          in Annex B
 ---pagebreak---                                                                     ANNEX A
                 Proposal f o r Council Decision
   determining the ge n e ra l g u i d e l i n e s for 1984
       concerning f i n a n c i a l and t e c h n i c a l aid
       t o n o n - a s s o c i a t e d developing c o u n t r i e s
THE COUNCIL OF THE EUROPEAN COMMUNITIES
Having regard t o thè Treaty e s t a b l i s h i n g thè European Economie
Community,
Having regard to Council Regulation (EEC) No 442/81 of
17 February 1981 on f i n a n c i a l and t e c h n i c a l aid to
n o n - a s s o c i a t e d developing c o u n t r i e s
                                                         1)
                                                          , and in p a r t i c u l a r
A r t i d e 9 (2) t h e r e o f ,
Having regard t o thè pr oposai from thè Commission,
Having regard t o thè Opinion of t hè European Parliament ^
HAS DECIDED AS FOLLOWS:
1) OJ No L 48, 21.2.1981, p.8
2) Opinion delivered on                                    (not yet published in thè OJ)
 ---pagebreak--- Art i c i e General      Provisions
            a)    The reserve for post-catastrophe actions shall be set at
                 between 5% and 7% of budget credi t s; funds not used for
                 t hi s purpose by October 31 shall be made available for
                 normal development projects in line with thè geographical
                 al l ocat ion of funding set out below.
            b)    Assistance for int ernat i onal agri cul t ural research (through
                 thè CGIAR i n s t i t ut e s ) shall account for 2% to 3% of budget
                  credi t s.
            c)    The special provision for thè recruitment of outside expertise
                  shall be set at 3% of budget credi t s. Within t h i s, approx-
                   imately 2% will be earmarked for short-term expert assistance or
                  small st udi es, and thè rest for thè establishment of development
                  off i cer s in key recipient countries.
Artide 2    Geographical allocat ion of funding
            After deducting thè above generai provisions, 75% of budget credi t s
            shall be al locat ed for projects in Asia, 20% for Latin America and
            5% for Africa.
Artie Le 3  Eligible reci pi ent s
            Eligible r eci pi ent s shall include al l those recipient countries or
            organisations who have received assistance in years prior to 1984,plus
             Columbia (considered for assistance in 1982).
Artide 4     The al l ocat i on of funding
             As in previous years, fundsshall be allocated on a project basis,
             taking due account of:
                thè a v a i l a b i l i t y and readiness of specific proj ect s, t hei r
                 i nt r i ns i c developmental value, and their fi t with thè needs and
                p r i o r i t i e s of reci pient countries;
             -  thè income levels and development neéds of part i cul ar reci pient
                 count ries, thè volume of funding provided in previous years,
                 and thè experience gained in implementing past aid.
             However, a par t i cul ar ef f or t shall be made for cert ain recipient
             countries, taking account of t hei r specific circumstances:
                 in Asia, a par t i cul ar effort shall be made for Thai land (taking
                 account of Community obli gati ons to that country in thè context of
                 thè agreement on cassava production and d i ve r s i f i c a t i o n ) , and for
                 Indonesia (taking account of thè dramatic det eriorat ion in that
                 country' s balance-of-payments pos i t i on) , while India shall of
 ---pagebreak---                                             ■2
               course cont i nue t o be t he l a r g e s t r e c i p i e n t , ( t aki ng account
               of i t s s i ze and l evel of income, of the s u b s t a n t i a l e f f o r t s
               and successes achi eved, and of i t s s er i ous b a l a n c e - o f -
               payments problems, p a r t i c u l a r l y v i s - a - v i s the Community);
               in Lat i n America, a p a r t i c u l a r e f f o r t shal l be made for
               B o l i v i a , t aki ng account of the speci al needs of t h a t country
               following i t s r e t u r n t o democratic government;
               in Af r i c a , a s s i s t a n c e t o Angola and Mozambique s hal l be
               cont i nued, covering normal r ur al development a c t i o n s or
               r egi ona l a c t i o n s and with an emphasis on a c t i o n s which can
               help pave t he way for t he i n t e g r a t i o n of t hes e c o u n t r i e s
               wi t hi n the Lome Convention.
Artide 5 Sect or al emphases and type of act i on
         As in pr evi ous y e a r s , p r i o r i t y s h a l l be given t o thè r u r a l
         s e c t o r , and p a r t i c u l a r l y t o a c t i o n s aimed at i ncr easi ng food
         pr oduct i on and improving thè avai l a b i l i t y of food s u p p l i e s .
         Within thè r ural s ect or , both production and support Services shal l
         be considered, as well as act i ons in thè f i e l d of social or
         production i n f r a s t r u c t u r e .
         For r egi ona l a c t i o n s , emphasis s h a l l conti nue t o be given t o thè
         d i r e c t or i n d i r e c t development of t hè r ur a l s e c t o r , while not
         excludi ng ot her s e c t o r s should t h i s be appr opr i at e and p r a c t i c a l .
         The type of a c t i on to be c ons i de r ed, as in previ ous y e a r s , s h a l l
         i ncl ude t r a d i t i o n a l s i n g l e - s e c t o r p r o j e c t s , mu l t i - s e c t o r
         i n t e g r a t e d p r o j e c t s , or s e c t o r a l programmes. The choice of
         approach s h a l l be made t aki ng account of r e c i p i e n t needs and
         p r i o r i t i e s , of t hè s p e c i f i c r equi rements of a p a r t i c u l a r a c t i o n ,
         and of t hè p o s s i b i l i t i e s for a c c e l e r a t i n g commitments and
         di sbur sement s and t hus of maximising thè ove r a l l e f f e c t i v e n e s s
         of Community a s s i s t a n c e .
                                                          Done at Brussel s
                                                          For The Council
                                                          The Pr e s i d e n t
 ---pagebreak---                                                                       ANNEX B
Financial and techni cal cooperation with non-associated developing count ri es
                            (Article 930 of the Budget)
List of countries and organisations having received EEC assistance on at
least one occasion, indicatine thè latest annual programme concerned in each
case (up to and inr.ludinn 1982)------------------------------------------- -----------------------
1.  COUNTRIES
    ASIA                                            LATIN AMERICA
     India                               1982       Honduras                          1982
    Bangladésh                           1982       Nicaragua                         1982
    Pakistan                             1981       Haiti                             1982
     Afghanistan                         1977       Costa Rica                        1982
     Sri Lanka                           1980       Dominican Republic                1982
     Nepal                               1982       Bolivia                           1979
     Ma Idi ves                          1980       Ecuador                            1981
     Bhutan                              1982       Perù                               1980
     Burma                               1981
     Thailand                            1982       AFRICA
     Indonesia                           1982       Angola                             1982
     Philippines                         1981       Mozambique                         1982
     Vietnam                             1977       Zimbabwe                           1980
     Laos                                 1979
     Yemen (Arab Republic)                1981
      Yemen (Democratic Republic)         1982
     Palestine (occupied terri to ri es)1 9 8 1
 ---pagebreak---                                                -2 -
II ORGANISATIONS
   ASIA
   ASEAN       Association of South East Asian Nations
   ADB        Asian Development Bank
   ICRISAT    International Crop Research I n s t i t u t e for   thè Semi-Arid Tropics
   IRRI       International Rice Research I n s t i t u t e
   Interim Mekong Committee
   LATIN AMERICA
   ANDEAN PACT JUNTA
   (JUNAC)       (Junta del Acuerdo de Cartagena)
   IDB        Interamerican Development Bank
   CABEI        Central American Bank for Economie Integration
    CFAD        Consejo de Fundaciones Americanas de Desarollo (Solidarios)
    CIP       International Potato Centre
    CIAT      International Centre for Tropical Agriculture
    CIMMYT      Centro de Investigacion y Mejoramiento de Maio y Trigo
    CATI      Tropical Agricultural Research and Training Centre
    INCAP     I n s t i t u t e of Nutrition of Central America and Panama
    OLADE     Latin American Energy Organisation
    IICA        Inter-American I n s t i t u t e of Agricultural Sciences of thè OAS
    PAHO      Pan American Health Organisation