CELEX: 51988PC0397
Language: en
Date: 1988-07-25
Title: Proposal for a COUNCIL DECISION determining general guidelines for 1989 for financial and technical assistance to Latin American and Asian developing countries (presented by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (88) 397
Vol. 1988/0144
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 ---pagebreak---      COMMISSION OF THE EUROPEAN COMMUNITIES
                                              COM(88 ) 397 final
                                              Brussels , 25 July 1988
I
I
i
 j                               Proposai for a
                               COUNCIL DECISION
 j              determining general guidelines for 1989 for
  j        financial and technical assistance to Latin American
  I                    and Asian developing countries
   I                               -
                        ( presented by the Commission )
                                               •J           v v-'   fi
                                              VA       c,o'v fcV*
                                                                  \ M
                                                                    P
 ---pagebreak---                                                                 c oh 'i'fb
                           EXPLANATORY MEMORANDUM
1. Since 1976 , the Community is carrying out financial and technical
   co-operation with the Asian and Latin American ( ALA ) developing
   countries as part of its development co-operation policy . The
   basic aims of this form of co-operation are set out in Council
   Regulation ( EEC ) N° 442 / 81 .
   The necessary financial resources are fixed each year in a special
   heading in Chapter 93 of the general budget of the European
   Communities ; in 1988 tnis heading was divided into two regional
   sub-headings .
   Financial and technical co-operation is available as a general rule
   to the poorest developing countries in Asia and Latin America and
   is aimed mainly at developing food production and improving the .
   living conditions of the poorest sections of the population , with
   the subsidiary aim of promoting regional co-operation among
   developing countries .
2. This instrument is one of those development aid instruments which
   the Community makes available to the ALA developing countries under *
    its co-operation policy . Other forms of aid are financed from
   other appopr iat ions , most of which come under Title 9 of the
   budget .                                                               >
   Development co-operation is provided mainly through standard food
   § jd , ppfinanced with NGOs , Stabex PMA . while humanitarian aid is in
   addition provided in the form of emergency aid , emergency food
   aid , aid to refugees and displaced persons and aid for drug abuse
   control ; economic co-operation is available for trade promotion ,
   energy projects , industrial , technological and scientific     co¬
   operation schemes and training .
    Humanitarian aid and economic co-operation is in principle
    available to all developing countries in Asia and Latin America .
3.  Regulation ( EEC ) N° 442 / 81 lays down the basic aims of financial
    and technical co-operation with the ALA developing countries and
    provides that the Council , after consulting Parliament , shall
    determine before the end of the year and guidelines to be applied
    to aid for the following year .
    Each year , the Commission accordingly send the Council a proposal
    for a Decision .
 ---pagebreak---                                          2
      In the past the general guidelines have not only defined the aims
     and   priorities of      the operations   to  be  financed  but  have  also
     allocated the aid by continent and by general heading ( disaster
     reserve ,    international      agricultural    research ,  administrative
     expenses , etc . . . ) .
     The guidelines have always been a useful guide for the Commission
      in its executive role .
4 . Proposed gu i de I i nes for 1989
      In the course of the 1988 budget procedure the budgetary authority
     decided to split the budget heading containing the appropiat ions
     for financial and technical cooperation with the ALA developing
     countries into two headings , one for Asia ( 9300 ) and the other for
     Latin America ( 9310 ).
      It is  therefore clear     that within   the  framework of  this decision
     there   is no     longer any need to     indicate a division of aid by
     cont inent .
     Within this context , the basic aims of this form of aid and the
     principles governing Community operations in this field remain
     unchanged . However the creation of two seperate budget           lines for
     Asia and Latin America will allow the co-operation to be better
     adapted to the priorities and needs of the beneficiary countries .
     The large number of LLDCs and highly populated countries in Asia
     means that Community aid to the region must focus on countries with
     a relatively low level of development .
     Notwithstanding the value of maintaining technology transfers to
     the rural      sector wherever necessary ,         Community aid should
     contribute    to an increase in investment - and in particular
     productive investment - beyond the level which can be generated by
     domestic savings , by bringing in foreign capital .
     The wide variety of cultures and development conditions in Asia
     will be taken into account and Community aid will be tailored to
     the needs of    individual countries .
     The development threshold to be taken into consideration for
     Community aid to Latin American countries will be assessed in the
     context of the general situation of the regions of the area which
     are more developed than Asia .
 ---pagebreak---                                   - 3 -
In view of the vast disparity between the richest and poorest sections
of the population of most countries of Latin America , which Lead to
social and. political tensions , Community aid. wild be targeted, mainly on
the poorest sections of the rural population aid. will focus on the
transfer of technology and appropriate know-how via pilot schemes which
can serve as a model for the countries' wider policies .
Particular emphasis will be placed on the production of staple foods ,
support measures for national land reform legislation and programmes
enabling grassroots (in many cases aboriginal ) communities to take
responsibility for their own development .
A special effort will be made to support the desire and efforts of
countries in this region to achieve regional or subregional Integration ,
since most Latin American countries do not have a large enough internal
market to enable sustainable industrial production , an essential
condition for subsequent progress , to start up or recover .
On this front , Central America will receive particular attention , in
accordance with the undertakings which the Community renewed at the 1938
ministerial conference in Hamburg ( San Jose IV ).
Two reserves , common to the two budget headings , and recorded against
 each , should be set up as follows :
  (i) 3% of funds available under each budget heading to support -
       International agricultural research carried ouu by member
       institutes of the CGIAR situated in Asia or Latin America - this
       forms an integral part of overall Ccronuoity support for
       agricultural research on behalf of developing countries ;
(ii ) 2% of funds available under each budget heading for the services of
       outside experts .
   External assistance is essential for the implementation of financial
   and technical cooperation : it enables Commission departments to
   commission studies with a view to identifying and monltbring projects
   and programmes and provides non-member countries with expert help for
   implementation and feasibility studies , and Indeed technical studies .
   The percentage of total appropriations earmarked for this second reserve
   lower than in previous years because the appropriation covering the
   expenses of the external delegations in Latin America and Asia has
   been transferred to other budget headings (since 1 January 1988) .
 ---pagebreak---                             -4 -
The very nature of   the reserve for  operations in response to
exceptional circumstances and disasters means that it should be
fixed at an overall level for all ALA developing countries .    The
funds for this reserve are to be drawn from the relevant
geographical budget heading for the region to which the recipient
country belongs .
The percentage of appopr i at ions allocated to this reserve was 6% in
previous years . However , it will not be possible to keep spending
down to this limit   in 1988 , and it has in the past prevented the
Commission from providing adequate relief for disaster victims when
a large number of such unforeseeable events occurred in a given
year .
 In view of past experience , the Commission proposes a reserve of up
to 10% of total   available funds .
 ---pagebreak---                                      Proposai for a
                                 GCONGIL BEETSICN
                    determining general guidelines far 1SQQ
                   far financial and technical assistance to
                 Latin American and Asian developing countries
THE OCXMUL OF THE EUPOPEAN OCWMUNITIES ,
Having regard to the Treaty establishing the European Economic Community ,
Having regard to Council regulation (EEC) No 442/ 81 of 1? February 1981 on
financial and technical aid to non-associated developing countries ,-- and
In particular Article 9(2 ) thereof ,
Having regard to the proposal from the Commission , 2                  t
Having regard to the opinion of the European Parliament , 5           •
Whereas general guidelines should be determined for the administration by
 the Cornmiseion of financial and toahnioal assistance to Latin American and
Aslan developing countries in 1989 ;
Whereas at the close of the conference held in Hamburg in February 1988
( San Jose IV ) the Community confirmed its support to the process of demo¬
cratization in the various countries of Central America .
 HAS DBCTDED AS POLLCWS :
  1  OJ No L 48 , 21.2.1981 , p. 8 .
 2   GJ No
 3   OJ No
                                                                             C
 ---pagebreak---                                       - 2 -
                                     Article 1
                            Objectives and prioritles
Community aid should be concentrated on helping the poorest countries
and the neediest sections of the population .
Priority will be given to the rural sector and , in particular , to
measures aimed at improving the food situation , as a contribution
towards the campaign to combat hunger in the world . Within the rural
sector special attention will be paid to production , support services
and operations in the sphere of social infrastructure as well as
training of farmers and middle-level staff within the
projects and programmes which have been adopted . Encouragement will
equally be given to the least -deve loped countries in looking for joint -
venture exercises with Community enterprises .
Support for regional integration efforts will be maintained and stepped
up in all sectors in which Community support can make a positive
contr ibut ion .
Aid will    be tailored to the needs and priorities of each country and
each region .
In Asia particular attention will be paid to the need for a transfer of
capital , with a view to increasing       productive investment in particular
in    the  rural   sector ,  as  well   as  the  need  to   improve  the  living
 standards    of the neediest sections of the population .
In Latin America particular attention will be paid to reducing social
disparities ,    through support for pilot         projects    to promote   land
reform efforts by calling on the potential of rural             communities for
se ! f-management .
Community aid to Central America at both regional and national             level
will be given special attention .
Ad hoc training projects may be considered in countries where they
constitute a necessary preliminary to other activities .
Wherever possible , Community aid will be used to prepare and implement
agricultural policies ( food strategies )        incorporating Community food
aid where necessary .
 In exceptional circumstances aid may be allocated for infrastructure in
 least-developed countries where shortcomings handicap rural development .
 ---pagebreak---                                      - 3 -
                                   Article 2
                             Budget appropriations
There snail be separate budget appropriations for the implementation of
financial and technical cooperation in Asia and in Latin America .
Reserves common to       Asia and Latin America will be set up for the specific
operations referred to in Article 5 : the specified percentage indicated in Article 5
 will be used from each of the two budget appropriations .
                                   Article 3
                Measures to deal with exceptional   cl
Thf* part of the aid     to    be     earmarked , pursuant to Article 3(3) of
Regulation (ESC) No 442/ 81 , to deal with exceptional circumstances , in
particular projects which concern reconstruction following disasters
, will be limited to a maximum of 10 % of the available funds referred to in
Article 2 , thus making it possible to provide an adequate response to needs
which are difficult to forecast .                                            .*
                                    Art icle 4
                              Implémentation of aid
 Aid shall be granted for projects or programmes , i ncludtng integrated
 projects «nd sectoral programmes , where appropriate , in accordance with
 Regulation (EEC) No 442/81 and all other applicaDle provisions .
 Th«a allocation of funds shall take account of :
  – the intrinsic value to development and the degree to which intervention corresponds
     to the priorities of the recipient countries and regions and the needs
     of the poorest sections of the population ;
 – the income levels and development needs of the recipient countries ,
      funding provided in previous years and the experience gained in implemen¬
      ting past aid ;
                                                                                        0
 ---pagebreak--- - cooperation agreements concluded with certain recipient countries or
    groups of recipient countries .
The Commission and the Member States will continue to make strong efforts
to increase the volume of cofinancing , in particular between the Community and
the Member states as well as other countries and organizations .
                                    Article 5
                               Spécial provisions
The Community     shall   support      agricultural research in Asia and
Latin America at all levels . The upper limit for international research
shall be 3 % of the funds referred to Article 2 .
The upper limit for the cost of administering the 1959 programme ( use of
outside experts , provision of specialists ) shall be 2 % of the funds referred
to in Article 2 .
                                                                             I
 Done at Brussels ,
                                                     For the Council
                                                     The President
 ---pagebreak---                              FINANCIAL SIA3
Budget heading :                 Articles 9300 and 9310
Direct financial Implications :  None that are new
This communication will serve as a guide for the application of headings
9300 and 9310 of the 1989 budget up to the celling of the appropriations
entered tinder those headings by the budgetary authority .