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Annual Repor t 2004on the European Community’s development policy and external assistance

EuropeanCommisssion

ISSN 1683-3457



European Commission

EuropeAid Co-operation Office

Rue de la Loi 41 – B-1049 Brussels

Fax (32-2) 299 64 07

E-mail: [email protected]

DG Development

Rue de Genève 12 – B-1140 Brussels

Fax (32-2) 299 25 25E-mail: [email protected]

Internet:

http://europa.eu.int/comm/world

http://europa.eu.int/comm/europeaid

http://europa.eu.int/comm/development

http://europa.eu.int/comm/external_relations



A nnua l Repon the European Community’s developmen



Neither the European Commission nor any person acting on behalf of the Commissionis responsible for the use which might be made of the following information.

A great deal of additional information on the European Union is available on the Internet.It can be accessed through the Europa server (http://europa.eu.int).

Cataloguing data can be found at the end of this publication.

Production: Mostra Communication, Brussels.

© Photos:EC: pages 21, 23, 27 (port), 31, 32, 43, 46, 54, 70, 71, 72, 73, 74, 76, 78, 79, 81, 84, 86, 88,91 (down), 98, 99, 104, 107 (old man), 108, 109, 117, 118, 137, 142, 143EC / G. Barton: pages 15, 27 (water pump), 42, 48, 49, 51 (« dragon » Madagascar),61, 64, 87, 92 (water), 94, 95, 113 (soldiers), 116, 144EC / J. Gehringer: pages 67, 83 (crowd)EC / S. Herrero Villa: page 105 (houses)EC / R. Hynderick: page 140EC / E. Johansson: page 35EC / O. Lehner: pages 19, 25, 28, 53, 55, 89, 92 (up), 93, 119, 122, 128, 133, 138 (African ma

EC / C. Masson: page 107EC / M. Mercier: pages 60, 65, 85EC / M. Osman: page 134EC / A. Pierzchala: page 97EC / P. Reddish: pages 75, 78 (woman)EC / M. Rincon Dominguez: page 105 (laboratorio de paz)EC / J. Silva Rodrigues: pages 50, 80EC / Sogreath / F. Cerutti: pages 17 (children), 30 (young girls), 59, 96EC / J. Van Dromme: pages 18, 100EC / F Jacobs: pages 51 (giraffes) 90



T his is the European Commission’s fourth Annual Report on development policy an

assistance and the last of the Prodi Commission. It sets out the objectives agreed for

highlights progress against these.

The European Union is a world player in economic, trade and development terms. It

for 55% ofglobal aid flows – about €30 billion per year – of which more than a fifth is

by the European Commission. This assistance is provided to more than 160 countrie

ries or organisations worldwide. It is a tangible expression of the Community’s comm

the Millennium Development Goals, which centre on poverty reduction. Since 2000

objective of Community development policy has been to reduce and eventually

poverty. Through its external assistance, the European Union demonstrates its supp

promotion and entrenchment of universal values such as democracy and Human Rig

For 2003, the Commission set out to improve the global partnership between North a

notably by delivering on commitments made in the 2002 UN conferences on Fina

Development in Monterrey and Sustainable Development in Johannesburg and by

framework of the Cotonou Agreement ( 1 ) to affirm Europe’s solidarity with Africa. Mor

objective was to ensure that the positive effects of globalisation are shared evenly bet

within countries, while respecting their cultural diversity and environmental heritag

work for a fairer distribution of resources between North and South.

2003 was also a significant year in terms of improving the coherence and impact of E

assistance. The Commission pursued its reform of how it prioritises, organises and im

its programmes, and this began to deliver concrete results. Commitments and paymen

the budget and European Development Fund reached record levels in 2003. Devoluti

to-day decision-making to delegations has made the Union’s external assistance pro

i i d h d k dl i d

|



The EU's relations with its near neighbours were given new impetus and clearer de

2003. In December, the European Council agreed the principles of a new policy framew

ing these countries a partnership aimed at sharing everything but institutions. The

Neighbourhood Policy will ensure that following enlargement of the EU new dividing

not drawn on this war-torn continent between the 'haves' and the 'have nots'.

The year 2003 also brought an innovative leap forward in the Community’s contribution

building in Africa. The Commission will be making a €250 million contribution to a

Peace Facility. It will be based on the principles of: (i) ownership reinforcing the capa

African people to deal with African conflicts; (ii) solidarity through financial contribu

all African countries; and (iii) development recognising that without peace and stab

can be no development in Africa.

C. PATTEN

Member

of the European

Commissionresponsible for

External Relations.

Chairman of the Board

of the EuropeAid

Co-operation Office.

P. NIELSON

Member

of the European


Development.

Chief Executive Officer

of the Board

of the EuropeAid


G. VERHEUGEN

Member

of the European


Enlargement.

Member of the Board

of the EuropeAid


P. LAMY

Member

of the European


Trade.

Memberof the Board

of the EuropeAid


J. ALMU

Member

of the Eur

Commissiresponsib

Economic

Monetary

Member o

of the Eur

Co-opera



1. BACKGROUND 15 AND STRATEGIC GOALS

1.1. Introduction 17

1.2. Strategic objectives of EC 18

development policy:

EXECUTIVE SUMMARY 9

A. The EC commitment 9

to development co-operation

B. Efficiency of EC co-operation 12

C. The EC’s global reach: 12

achievements in 2003

region by region

D. Special feature: peace 14

as a priority

E. Annexes 14

2. EFFICIENCY AND EFFECTIVEN

OF EC CO-OPERATION

2.1. Reform of External Assista

Management

2.2. Deconcentration

2.3. Qualityimprovement and Q

Support Group initiatives

2.4. The “Three Cs”: the Way Forw

2.5. Co-operation with other pa

2.6. Mainstreaming issues

3.

3.1.



6. ANNEXES

6.1. MDGs

6.2. Harmonisation of procedu

6.3. RAL

6.4. Internal Audits

6.5. EC communications referri

to external assistance

6.6. EC assistance not covered

by the Report

4. THE ACTIVITIES 67


4.2. The Balkans 69

4.3. Eastern Europe 75

and Central Asia

4.4. Mediterranean and Near 81

and Middle East

4.5. African, Caribbean and Pacific 87

(ACP) Countries

and Overseas Countries

and Territories (OCTs)

4.6. Asia 96

4.7. Latin America 103

5. FEATURE – GOVERNANCE, 111PEACE, SECURITY

AND DEVELOPMENT


5.2. What is the EC/EU doing? 115



A. THE EC COMMITMENT TO DEVELOPMENT CO-OPERATION

This Annual Report provides an overview of the

European Community’s policy initiativesand activities

in the field of Development Co-operation and External

Assistance in 2003. It intends to reach a widespread

audience: the European Institutions themselves,Member State administrations, other agencies active

in the development and external assistance fields,

partner countries and Europe’s Non State Actors and

citizens who, as taxpayers, help make this important

effort possible.

Financial assistance is vitalto achieve all the ambitious

objectives which the developing countries and thedonor community have set for themselves. The

European Union asa whole is the world’s largest donor

in the development field, providing more than half of

all global development assistance: over €30 billion in

2003.

More than one-fifth of the European Union’s total

current aid budget is managed by the EuropeanCommission on behalf of the European Community.

These funds come from the Community budget as well

as the European Development Fund (EDF).

The geographical span of the Community’s assistance

programmes is also global – from the EU’s immediate

neighbours to small Pacific islands. This report

accounts for the €7.8 billion committed and the€5.8 billion disbursed during the year 2003.

The objective of European Communitydevelopmentco-

operation policy is to foster sustainable development

designed to eradicate poverty in partner countries and

The report provides an update on progrethe strategic goals set by the ECand the ac

of the past year. The EC’s strategic goals a

the Millennium Development Goals (MDGs

the world’s leaders at the Millennium

September 2000, with the overarching o

reducing world poverty by half by 2015.

The EC contributes to the achievement of tfocusing its assistance on six key areas w

add particular value. The report analyses

these focal areas: the link between trade

opment; regional integration and co

support for macroeconomic policies an

access to social services; transport; food s

sustainable rural development; and in

capacity building, in particular good govethe rule of law. The promotion of Hum

equality between men and women, env

sustainability and conflict prevention are c

issues that need to be integrated at ever

within all of the Community’s assistance p

A.1. The link between trade

and development

In November 2002 the Council of Ministe

conclusions on the Communication(*) on

Developmentprepared by the Commission

to a series of EC initiatives during the

review. The key objective of the Commi

ensure that developing countries, especia

vulnerable ones, capture important be

their participation in the world tradin

Accordingly, the Commission has been

improve coherence between new WTO trad

the goalsof developmentpolicy. Sustainab

Assessments (SIAs) are now regularly use

h i l i i l d

| Execut ive S



A.2. Regional integrationand co-operation

EU policy regards regional integration of developing

countries as an important step towards their integra-

tion into the world economy. Regional integration was

therefore a key feature of EU support for the Mercosur

initiative, the Central America Common Market(CACM)

and the Andean Community, while regional co-opera-tion efforts were stepped up in South-East Asia.

The ECwas active in 2003 in promoting the concept of

greater regionalco-operation in the African, Caribbean

and Pacific (ACP) countries covered by the Cotonou

Agreement. By mid-2003 support strategies for six

regions within the ACP group had been agreed, all

including regional integration and trade as a focalsector.

The European Neighbourhood Policy reflects a new

emphasis on partnership between the EU and Russia,

the Western NIS and ten Mediterranean countries.

In 2003, the Commission developed the concept of

Neighbourhood Programmes bringing together both

internal and external funding in a newly harmonisedway.

A.3. Support for macro-economic

policies and equitable access

to social services

The principle ofdirectbudget support to help countries

implement their poverty reduction strategieshas beenapplied with considerable success in 2003. Budget

support and macro-economic assistance are two

different methods essential to the reduction ofpoverty;

to support public expenditure on vital health and

education services and to measure their results in

oping countries. Thin the planning and

nership for the Ed

which aims at acc

sal primary edu

Commitments in 2

programmes and

€250 million, of wh

for ACP countriesprogrammes and p

higher education

the partner countr

monitored through

the partner govern

The European Com

health-related Milas child mortality

cable diseases – a

reflected in progra

tries. The EC has a

Global Fund to Fig

The EU contributio

sents so far more

disbursed to the F

A.4. Transp

Transport is an es

to health, educatio

of the six prioritie

and the focal sec

and three ACP regi

under which comm

ACP countries and

mately €500 millio

and strategy reform

in the road sector.



A.5. Food security and sustainablerural development

Rural poverty remains the dominantfeature in both the

incidence and depth of poverty in developing coun-

tries. In 2003 the Commission chaired a Task Force of

EU Member States to drafta new land policy in support

of developing countries. This lays the foundations for

sustainable, participatory and pro-poor land policiesand land administration systems built on the recogni-

tion of existing rights in local cultures and societies.

During 2003 the Commission contributed to the

establishment of a Global Donor Platform for rural

development with the participation of key bilateral

and multilateral donors. The EC also started work on

the establishment of a Strategic Partnership with keyUN agencies such as the Food and Agriculture

Organisation and the World Food Programme.

The Commission provided €440.6 million via a specific

EU budget line for Food Security and Food Aid to 32

prioritycountries, mainly in Africa as well as to support

key international organisations.

A.6. Governance, institutional

capacity building and

the rule of law

Good governance and the promotion of democracy

have been identified by the international community,

including the European Union, as critical factors in

reaching the Millennium Development Goals. EC policyon governance, institutional capacity building and

the rule of law has been addressed in a recent

Communication on Governance and Development. The

approach is a practical one and focuses on different

types of situations, i.e. difficult partnerships, post-

A.7. Scientific and TechnologicCo-operation in support

of development

The 6th RTD Framework Programme (2

includes a component of research for de

entirely based on co-operation with

countries.

A.8. Other EC Co-operation act

Highlightsof the year include the EC’s cont

global initiatives and progress on commitm

at the Monterrey and Johannesburg conf

sustainable and equitable development, a

the Doha Development Agenda of the WTO

of the recent European Union enlargemenof expansion of the donor community and

the new neighbours – are described in cha

document.

2003 saw the completion of Mid-Term Revi

of Strategy Papers for the Mediterranean, A

America, TACIS (Eastern Europe and Centr

CARDS (Western Balkans) regions and theprocess for the ACP countries. The aim of

is to maintain relevance and enhance resp

to evolving situations.



B. EFFICIENCY OFEC CO-OPERATION

Implementation of the external assistance reform

process, which started in year 2000, continued in

2003. The transfer of management responsibilities to

the EC Delegations in the recipient countries is well

advanced, focus has shifted from inputs to results, and

the reform has resulted in a simplification of proce-duresand a greater emphasison the strategicplanning

and programming of externalassistance. The manage-

ment capacity of the EuropeAid Co-operation Office has

continued to improve, with particular emphasis on

qualityimprovement and the enhancement of manage-

ment information systems.

Co-ordinating development activities between part-ners, harmonising policies, programmes, procedures

and practices, and maximising the development

effectivenessof aid resources are all essential partsof

the reform process. The Community has been actively

promoting the implementation of the concept of

“the Three Cs”: Co-ordination, Complementarity and

Coherence.

C. THE E ACHIEREGIO

The European Com

six regions of the

delivery of assista

Europe and Centra

the Africa, CaribbeOverseas Countrie

Latin America. Full

figures and comm

chapter 4.

Western Balkans

The strategic objeWestern Balkans, d

remains support fo

Process (SAP). The

in Community as

democratic stabili

linked to the SAP

and institution cap

development, jusalignment with EU

A total of €620

million disbursed

2003.

Eastern Europe an

A key priority for 2

ment of the Union

tion across the ex

Strategy and Indic

TACIS Cross-Borde



Mediterranean and Near and Middle East

Activities in this region, implemented via the MEDA

Programme, reflected the Barcelona process and the

Neighbourhood Policy of the EC.

In 2003 the Community continued to support initia-

tives aimed at reinforcing sub-regional integration in

areas such as trade, infrastructure networks and

migration policy, along the lines of the Maghreb Arab

Union (UMA) and the Agadir process. Promoting

investment in the countries of the Mediterranean

South is also a major challenge: in this respect, the

ECOFIN Council of November 2003 proposed further

development of the Facility for Euro-Mediterranean

Investment and Partnership (FEMIP).

The Naples Conference of December 2003 approved

the creation of a Euro-Mediterranean Foundation to

promote a dialogue between the cultures. In the

educational field, the extension of the Tempus

Programme to the Mediterranean countries will rein-

force co-operation in the higher education and

professional training fields. Finally, a co-operation

programme in the justice and home affairs domain has

been launched and specific projects on police training

and co-operation, judicial training and co-operation as

well as gathering and analysing information on migra-

tion flows in the Mediterranean area are being

implemented.

A total of €600 million was committed and €498

million disbursed in the Mediterranean and Near and

Middle East region in 2003.

African Caribbean Pacific Countries/Overseas

Countries and Territories

h li i l di l i h

poor countries in sub-Saharan Africa. Ofront, negotiations for the conclusions o

Partnership Agreements (EPAs) started w

groups – Centraland Western Africa being t

objective is the establishment of a new tr

with ACP countries after 2008. Another ma

tive launched in 2003 – in response to t

almost 40% of people in sub-Saharan

access to safe water or adequate sanitat

€500 million European Union Water Facili

The year 2003 also provided an opportun

on the future development of the OCT-EC a

Twelve of the Overseas Countries and Territ

have been granted individual budget sup

period up to 2007 had submitted their dra

ming documents by the end of the year.

Performance figures for the European D

Fund were especially strong, with an

primary commitments(€3.7 billion in total)

levels of contracts signed (€3 billion) and

effected (€2.5 billion).

Asia

In line with the European Union’s co-operat

for Asia, practical co-operation was ste

the following fields: trade and investm

approaches for poverty reduction, good g

Human Rights and democracy and confli

ment. Economic relations with Asia were st

through regular dialogue at regional and bi

and were backed by co-operation program

Asia-wide basis, as well as support for Tra

Assistance (TRA).

EC strategy has increasingly focused on i

i d l h h h d li



Latin America

The EC’s co-operation with Latin America in 2003

follows on the conclusions of the 2002 Madrid

Summit. This co-operation privileged three main

activities during 2003: institutional and democratic

reinforcement, modernisation of the state and Human

Rights; social development, and development of the

less prosperous regions; and trade-related assistance

and regional integration.

The European Commission continued negotiations

with the Mercosur countries in 2003, signed Political

Dialogue and Co-operation Agreements with the

six Central American countries and the Andean

Community, and implemented an Economic Part-

nership, Political Coordination and Co-operation

Agreement with Mexico and an Association Agreement

with Chile.

A total of €329 million was committed and €280

million disbursed in the Latin America region in 2003.

D. SPECIPEACE

The feature of this

attention to an iss

nition within the d

link between gov

development. It p

interdependency ataking to enhance

rity and, thereby,

ronment for effect

E. ANNE

The annexes (cha

progress on the Mtion of financial pr

list of Communica

external assistance

Finally, in the fina

show the breakdo

in 2003. Moreove

per region, in acthematic budget li



1 | Background a

strategic goa



1 | 1 Introduction

The European Community’sdevelopment assistance is

one of three elements within the broader framework of

external relations, together with trade and political

dialogue. The Treaty of European Union (TEU) states the

importance of assuring “consistency of its external poli-

cies and instruments in the context of its external

relations, security, development, economic and trade

policies” (Article 3).

The Treaty of the European Community (TEC) declares

in its article 177 that Community development assis-

tance policy shall foster the campaign against poverty,

sustainable economic and social development, and the

smooth and gradual integration of the developing

countries into the world economy.

The draft EU Constitution confirms that development

co-operation is an EU policy in its own right for whichthe Community has shared competence. It also reaf-

firms poverty eradication as one of the key objectives

of external action that applies to all external policies

and all regions.

The Joint Declaration by the Council and the

Commission of November 2000 provides the Commu-

nity with an overall framework to guide itsco-operation

and partnerships with all developing countries with

which it has links. The Declaration emphasises that the

main objective of the Community’s development co-

operation policy is to reduce and eventually eradicate

poverty, through support for economically, socially and

environmentally sustainable development, promotion

of the gradual integration of the developing countries

into the world economy, and a determination to

combat inequality. It also highlights the core principles

on which the Community’s assistance is grounded:

sustainable, equitable and participatory human andsocial development, with the promotion of Human

Rights, democracy, the rule of law and good governance

as an integral part of this process.

To follow up on these policy declarations, the European

Commission has committed itself to focus its devel-

African countries. In 2003, the Community hation programmes with 160 countries in si

The European Communityhas an important

in many areas of external action. It is the lar

partner for many developing countries, it is

research co-operation worldwide, and mig

to Europe from many of our partner countrie

increase, etc. The requirement to ensure

policies affecting developing countries tak

the objectivesof Communitydevelopment c

policy, i.e. that the policy mix is tailor

country’s specific situation, is set out in the

Treaty.

To achieve all the ambitious objectives whic

oping countries and the donor Communi

themselves, financial assistance is vital. T

whole provides more than half of all glob

ment assistance: over €28.7 billion in 200€7.8 billion at EC level. In March 2002, at

the International Financing for Developm

ence, the EU signalled its commitment to p

larger role in future by further increasing a

Each EU Member State has pledged to prov

a minimum of 0.33% of its gross nationa

Official Development Assistance (ODA) so

tively, the EU reaches an average ratio of

from 0.33% in 2001).

One-fifth of the EU’s current aid budget –

in 2003 – ismanaged by the European Com

behalf of the Community. These funds com

Community budget as well as the

Development Fund (EDF), which provides

African, Caribbean and Pacific states

framework of the Cotonou Agreement a

Overseas Countries and Territories (OCTs)

with the Community under the OverseasDecision ( 2 ). The geographicalspan of the C

assistance programmes is global - from the

diate neighbours to small Pacific islands



( 3 )This was done to balance

country ownership andthe need to aggregate data

across countries to allow country comparison and

global monitoring.

1 | 2 Strategic objectives ofEC development policy: theMillennium DevelopmentGoals (MDGs)

The European Commission is committed to focusing its

development assistance on helping developing coun-

tries to achieve the MDGs. To be able to measure

progress towards these Goals on an annual basis in

each of the 140 countries and the eight regions where

the Community provides development assistance, the

Commission hasidentified – in close collaboration with

the EU Member States and international organisations

such as the World Bank, UNDP and the OECD’s

Development Assistance Committee (DAC) – a minimum

“core set” of ten key indicators, drawn from the list of

48 indicators for the Millennium Goals:

1) Proportion of the population below USD 1 a day.

2) Prevalence of child malnutrition (underweight chil-dren) under five years of age. 3) Net enrolment ratio

in primary education. 4) Primary completion rate.

5) Ratio of girls to boys in primary, secondary and

tertiary education. 6) Under-five mortality rate. 7) Pro-

portion of 1 year old children immunised against

measles. 8) Proportion of births attended by skilled

health personnel. 9) HIV prevalence among 15-24 years

old pregnant women. 10) Proportion of the population

with sustainable access to an improved water source.

These indicators were selected on the basis of data

availability, reliability and the frequency with which

they were included by countries for their monitoring

of Poverty Reduction Strategy Papers ( 3 ). Of the ten

indicators, the evolution of six of them – 3, 4, 5, 7,

8 and 9 – is measured annually (annual periodicity),

while the other four have a medium-term periodicity.

Six indicators are directly related to the well-being of

children and three of them have a specific gender-related dimension. Besides the 10 indicators, the GDI

per capita and the growth of GDI are also followed for

each country.

1.2.1. MeasurMillenn

The Commission be

the realisation of th

on the basis of the

draws from databa

tions. Nevertheles

sex-disaggregation

level and at count

concern for the cre

nity’s effort to m

Goals ( 4 ).

Global progresstow

recent statistical

reported in annex

eight Goals and th

1.3. below describe

bution to this overa



1 | 3 EC Contribution to MDG Achievement:the six Priority Areas

In order to maximise its impact within the global devel-

opmentframework, the Community decided to focus its

assistance in six areas( 6 ) where it could add particular

value: the link between trade and development;

regional integration and co-operation; support for

macro-economic policies and equitable access to social

services; transport; food securityand sustainable ruraldevelopment; and institutional capacity building, in

particular good governance and the rule of law. The

promotion of Human Rights, equalitybetween men and

women, environmental sustainability and conflict

prevention were to be integrated at every stage and

within all of the Community’s assistance programmes.

As regards the preservation and fostering of cultural

diversity and the development of intercultural dialogue,these have been implemented both as a horizontal

component of EC development policy and through

specific sectoral assistance programmes, in particular

in the Mediterranean and ACP regions.

The following sections attempt to capture the linkage

between the EC’s six focal areas of value-added and

progress towards achieving the MDGs. Nevertheless, in

spite of the increased linkage, it is not possible to

quantitatively assess the direct impact or contributionof the Commission’s policies and external assistance

on partner countries’ progress towards meeting the

MDGs. Overall progress towards these Goals is the

result of a large number of factors, many of them

outside the direct influence of the Commission. Some

of these factors are controlled by the countries them-

selves, while much of the Official Development

Assistance aimed at supporting progress towards the

MDGs comes from other external partners.

1.3.1. Trade and development

In November 2002 the Council adopted its conclusions

on the Communication on Trade and Development

prepared by the Commission( 7 ) a few months earlier.

Sustainability Impact Assessments (SIAs)( 8

used for this purpose in all trade negotiatio

The SIAs provide an assessment of th

economic, social and environmental impa

agreements, and involve detailed consultat

stakeholders including civil society. The fir

the SIA for the negotiation of Economic

Agreements (EPAs) with ACP countries was

in December 2003. SIAs for Mercosur/Chil

for the Gulf Co-operation Council were laun

same period. Specific sectoral SIA workcarried out on the Doha Development A

topics assessed in detail included compe

ronment services, market access for te

clothing, for non-ferrous metals and for p

cals. The SIA methodology is being further

adapted to ensure that outcomes are pro

into account in the negotiations.

The European Commission has also coimproving aid effectiveness in this area thr

co-ordination and complementarity, intern

as with other donors, and to increasing tr

assistance to developing countries.

In this context, the Commission has esta

Interservice Taskforce and prepared detail

guidelineson trade-related assistance. Furt

tations on these guidelinesare taking plac

and development experts of the Membeorder to achieve greater complementarity.

evaluation on EC Trade-Related Assistanc

at the end of 2003 should further contr

improved effectiveness of EC support in th

Financial support for trade-related assistan

stepped up since the Doha Ministerial

November 2001. Total commitments ( 9 ) ove

2001/03 have reached €2 billion. Special atbeen devoted to the improvement of devel

tries’ capacities in the field of sanitary

sanitary requirements. Another focal area

improve the negotiating capacity and th

developing countries to formulate and

coherenttrade policies, to engage in the ne



While the implementation of the Doha Developmentagenda would create enormous opportunities, many

countries in Asia still face institutional constraints in

the regulatory and administrative field, as well as

structural weaknesses through over-reliance on fragile

sectors for employment and exports.

EU-Mediterranean co-operation supports the creation

of a Euro-MED free trade zone by 2010, the key objec-

tive of economic co-operation with the Mediterranean

partner countries. With this in view, priority is beinggiven to sectoral reform programmes, notably those

sectors which have a direct impact on the competitivity

of these partner countries.

The Commission's support for development through

trade is designed to strengthen the processof regional

integration in Mercosur, Central America and the

Andean Community. As stated previously, negotiations

for an EU-Mercosur Free Trade Agreement are underwayand, in the Andean Community, discussions leading to

a possible conclusion of an Association Agreement,

including a free trade zone, have already started. In

Central America a project to facilitate completion of

a customs union, due to commence implementation

soon, is a good example of the EC’s trade policyobjec-

tives in the region. In the case of Mexico and Chile, in

addition to promoting trade flows with Europe, the EU’s

main trade-related policy aim is to ensure that these

countries are capable of living up to their commitmentsand that the implementation of the agreements con-

cluded takes place in a smooth and effective manner.

In addition to the launch of the negotiation of Economic

Partnership Agreements, various programmes have

been designed to counter the marginalisation of the

ACP in world trade, including capacity building

programmes for trade policy formulation and imple-

mentation. Intra-ACP programmes are designed tosupport all or a large number of ACP States in a priority

area. In July 2003 the Community allocated €50 million

out of these intra-ACP funds for “Trade.Com”, an insti-

tutional trade capacity building facility.

More information on EC trade initiatives is to be found

1.3.2. Regionand dev

Regional integratio

ration of Regiona

Regional Strateg

Indicative Program

planned for each fo

the indicative com

In the case of the Acountries covered

2003 all six RSPs an

All the RIPs include

focal sector. The re

a significant share

regards regional in

integration into th

aim of the Cotono

Partnership Agreemregional programm

section of chapter

Mercosur (Mercado

Common Market)

sent the three mai

the Latin American

In the Andean Com

the Community str

was a need to increrelated assistance,

integration process

combat drugs regio

The regional pro

addresses areas s

transport, as well a

issues, where co-o

region is most imp(MTR) was conduc

for Central Asia. The

RSP for Central As

because the strate

2002. However th

programmes, thos



1.3.3. Macro-economic policiesand equitable access to social services, including healthand education

1.3.3.1. Macro-economic and poverty

reduction budget supportIn the 2003 Annual Report the Commission described

the new results-based approach to helping countries

implement their poverty reduction strategies through

direct budget support. Since then, there has beenconsiderable progress, both in extending the approach

using variable tranches linked to poverty outcomes,

notably in the health and education aspects of poverty,

and also in developing support for the Poverty

Reduction Strategy Papers (PRSPs) more generally.

The experience of 2003 has confirmed the value of the

Commission’s approach to budget support in ACP coun-

tries, using the variable tranche approach to ensurethat countries have incentives to make progress with

public financial information and with the reduction of

health and education aspects of poverty. In Zambia and

Ethiopia indicators of gender empowerment and

HIV/AIDSwere also developed to add these aspects of

poverty to the variable tranche, thus capturing the five

aspects of poverty reflected in MDGs 2-6. A total of

€389.59 million was disbursed in budget support to

19 ACP countriesduring 2003, providing essential flex-

ible funding for the recurrent and investment costs of implementation of poverty reduction strategies,

ensuring progress with public financial management

reform programmes, and encouraging governments to

focus on results and to provide the information to their

citizensby which their use of resources can be judged.

During 2003 the Commission worked closely with the

World Bank and other donors, including two Member

States (UK and France), in the context of the PublicExpenditure and Financial Accountability (PEFA) Trust

Fund. This began to develop standard methodologies

for assessing and monitoring public financial manage-

ment in developing countries. Creating a solid basis for

assessing fiduciary risk will also enhance a key aspect

of general budget support, namely improving the

groups working to provide budgetsupportinway. These use, wherever possible, a sin

framework from which all donors agree to

conditions or indicators, conduct their r

design missions jointly: as a result govern

only deal with a single group and not a m

demands for similar reporting, accounting

material. In Mozambique, for example, the

numbers 15 donor countries, among

Commission is the second-largest donor

member, developing a refined performanment framework and an agreed approa

working that explicitly seeks to minimise it

on government and fit within the national

PRSP calendar. In total, during 2003, gen

support in six countries was provided in th

such joint groups.

It is not possible to assess the impact of C

budget support on its own, since it contribsame outcome asall other budgetsupport a

of paymentsassistance. However, the Com

been a leading member of the Steering Grou

evaluation of budget support being develo

OECD’s Development Assistance Commi

Findings are expected to become availa

2004.

Budget support aims to help sustain

economic stability that is essential to the rincome poverty, as well as support the pu

diture on basic servicesvital to attaining th

and health Goals.

1.3.3.2. Education

Work in 2003 on the education component

developmentpolicyfollowed the strategy de

March 2002 Communication on Education a

in the context of poverty reduction in develtries ( 10 ). This strategy is set against the ba

the education MDGs, which are part of t

achieve ‘Education for All’ (EFA), a wide

established by the international commun

in April 2000.



( 11 )COM (2002) 129 final

of 22.03.2002.

( 12 )(2001) 96 finalof 21.02.2001.

laying the foundationsfor improved data collection andmore regular monitoring and evaluation of education

data in eleven FTI countries: Bangladesh, Ethiopia,

Ghana, Guinea, Mauritania, Honduras, Niger, Pakistan,

Tanzania, Uganda and Vietnam. The project mobilises

some €3.5 million of financing between 2003 and 2006

on the basis of budgetary line B-7-6313 (from the year

2002).

The preliminary estimate of 2003 commitments for

country-specificeducation programmes and projects isa total of approximately €258 million, of which approx-

imately €70 million was for ACP countries. These

country-specific education programmes and projects

were in line with the Commission’s education sector

policy. They covered basic, vocational and higher

education programmes, each incorporated in the

partner country’s development programmes, and are

monitored through a set of indicators agreed on with

the partner government.

Sectoral approaches also increasingly promote pooling

EC development resources with resources of other

development partners. For example, in Bangladesh

during 2003, close co-ordination between the EC and

three Member States (Netherlands, Sweden and the

UK) significantly contributed to developing an exter-

nally financed sector support programme for primary

education of €500 million, in which the European finan-

cial stake amounts to roughly 50 percent.

In addition to this direct operational support to coun-

tries, the Commission increased the amount of indirect

support to education that is channelled through

country-specific poverty reduction and macro-economic

programmes. Thus, as indicated in the section on

macro-economic policies, education played a greater

role in poverty reduction and the related poverty and

macro-economic programmes. In 2003 some of thesebroader PRSP programmes and budget support incor-

porated variable tranche and performance-based

mechanismsthatdirectly linkpart of the Commission’s

financialsupport to a partner country’s performance in

the education sector.

1.3.3.3. Health, AThe European Co

towards the healt

Goals and targets

programmed suppo

the MDGs are direc

maternal health an

has developed and

policy framework o

the Health and Po

and through specareas on commu

Action ( 12 ) on HIV

Progressreport( 13 ) a

health [Commitme

budget line ( 15 )].

In this framework

programmed signif

towards the healttion of Country S

€740 million. This

to the health secto

the health sector i

through general b

poverty reduction

social sector out

Community has co

initiatives related

region, with some €mainly related to t

health and commu

tions of the themat

areas will also allo

with potential for

four years.

In Eastern Europe

supporting the figcable diseases, no

addition, assistanc

the health system

States (NIS). In 2

investment in prim

This initiative is p



1.3.4. Transport

Transport is an essential service for improving the

access of the poor to health, education, water and food

security and hence achievement of the Millennium

Development Goals. The transport sector (comprising

transport infrastructure – roads, railways, ports, etc. –

and transport services) contributesto the achievement

of the MDGs directly by improving the mobility of poor

people and hence their accessto health and education

and indirectly by promoting growth which, inter alia,increases employment opportunitiesand incomes and

leads to reduced costs for transport and food, thereby

enhancing food security. Although transport is not

mentioned in the eight MDGs it is fundamental for the

functioning of any economy and for trade within and

between countries.

As transport is one of the six priorities of Community

development co-operation and is the focal sector in32 ACP country programmes and three regional

programmes under the 9th EDF, the EC is continually

challenged to ensure that transport initiatives

contribute optimally to poverty reduction and the

MDGs. The Community, in partnership with recipient

countries, other donors and the sub-Saharan Africa

Transport Policy Programme (SSATP) is promoting

research to adapt transport policy and activities to the

reduction of poverty. At the same time EC support to

transport, which is mainly in the roads sector, is beingreoriented to align with the aims of Poverty Reduction

Strategies in many countries, through increased

support of maintenance programmes and rural road

construction.

EDF commitments to transport programmes in ACP

countries and regions in 2003 totalled approximately

€500 million. Design of these programmes conforms

with the EC’s sectoral approach elaborated in theCommunication 422 (2000) of July 2000, endorsed in

Council Resolution 9985/01 of June 2001, which recog-

nises that effective transport systems are essential

in facilitating trade and poverty reduction. These

programmes encompass support to sectoral reform,

institutional development and capacity building aswell

The Commission continued its active role inadvisory group with the African Develop

UNECA and the World Bankto facilitate NEP

mentation of its Short Term Action Plan – Inf

The Regional Economic Communities are

menting agencies and NEPAD (New Part

Africa’s Development) nominated the S

Africa Transport Policy Programme (SSATP)

cipal instrument for promoting sustainabl

The Commission underlined its commitm

SSATP Programme by contributing €8 miLong Term Development Plan (2004-2007 – €

making the Commission the major donor. S

together the Commission, several EU Mem

UNECA and the World Bank, as well as 38 A

tries. Following an intensive participatory

Long Term Development Plan is founded

pillars of increasing transport’s contributio

reduction and regional integration, which

linked to NEPAD and the Millennium DGoals.

Transport is one of the priorities in the

Central Asia regional Programmes. Under t

TRACECA the Commission supports the cr

common transport corridor from Europe to C

Since 1993 the Commission has funded 53

and technical assistance projects with €11

2003 eleven more projects were identified

budget of €12 million. In the Western BCommission chairs the Infrastructure Stee

(ISG) which includes, among others, the EB

World Bank. This completed the Regio

Infrastructure Study in 2003, while the

Project Preparation Facility started work in

2003 with a completion date of Decemb

needs assessment of Aviation Safety an

Control of the five CARDS Countries was co

November 2003 and seven projects were simplementation.



1.3.5. Rural developmentand food security

Rural poverty is widely recognised as a crucial dimen-

sion in both the incidence and depth of poverty in

developing countries. In adopting the Commission’s

Communication Fighting Rural Poverty ( 16 ) the Council,

in its conclusionsformulated in January 2003, stressed

again the importance of sustainable ruraldevelopment

and food security in the fight against poverty and

invited the EC and the Member States to continueworking together on these issues.

Among the key issues for rural development, the 2002

Communication clearly highlighted the importance of

secure access to land for poverty reduction and natural

resource management in rural areas. In 2003 the

Commission chaired a Task Force of EU Member States

which was responsible for drafting an EU land policy

and operational guidelines to support nationalprocesses in developing countries. These guidelines,

which will be submitted for approval by the

Commission and the Council in early-2004, signal a

shift away from past approaches focused on land

privatisation and lay the foundations for supporting

sustainable, participatory and pro-poor land policies

and land administration systems built on the recogni-

tion of existing rights in local cultures and societies.

During 2003 the Commission contributed to the estab-lishment of a Global Donor Platform for rural

developmentwith the participation of key bilateral and

multilateral donors. The Platform is expected to

become a keyforum for exchange of best practices and

for enhanced co-ordination of donor support to agri-

culture and rural development. It is also aimed at

enhancing advocacy at donor headquarters and in field

officesfor increased donor supportto rural livelihoods.

Food crises in Africa were a major issue during 2003,

in particular because of the serious situations in

Southern Africa and the Horn of Africa. The Commission

has made special efforts at closer co-ordination both

internally and with Member States, with a view to

agreeing a common analysis of the food situation and

especially in the coof assessing the d

aid, the effects of it

the issue forward

Food Aid Conventi

extended until Jun

initiative to reques

sion period. The re

to by other membe

will start in June 20

As part of its efforts

relevant UN organis

to work on the esta

with FAO and WFP.

As a follow-up to

orientation of Cou

Commission also la

its food aid policy,operations in supp

to be completed in

1.3.6. Institutgood gothe rule

Good governance

have been identifi

including the Euroreaching the Mill

Millennium Declar

ronment that is co

elimination of pov

governance within

at the internationa

financial, moneta

Monterrey Consen

good governance aable development

poverty reduction

these declaration

clearly reflected i

peace and secur

respect for the r



of governance is crucial for long-term stability, sus-tained governance reforms and development into a

more sophisticated political and institutional system.

Council conclusions welcoming this new policy were

adopted by the General Affairs External Relations

Council (GAERC) on 17-18 November 2003, which

recognised that the ACP-EC Cotonou Partnership

Agreement provides a useful approach to governance.

The GAERC agreed that the relevant provisions and

mechanisms established through the CotonouPartnership Agreement referring to good governance,

Human Rights, democratic principles and the rule of

law may provide a reference for other EU agreements

with third countries.

In the Council Conclusions the GAERC agreed that work

on difficult partnerships is a challenge for the EU, so

particular attention should be paid to elaborating effec-

tive strategies for these partnershipsin order to allow theEC and Member States to remain engaged through a

whole range of appropriate instruments, even when

sanctions have been adopted and official co-operation

suspended. Difficult partnerships are primarily charac-

terised by a lack of commitment to development

objectives and good governance. Many of these coun-

triesare also conflict-prone or in a post-conflictsituation.

While continuing in 2003 to target its support to ‘good

performers’ as a meansof increasing aid effectiveness,the EC also takes the policy line that the populations

in these vulnerable countries should not pay the price

for bad leaders. Isolating the ‘bad performers’ risks

leaving them as magnets for extremism and terrorism,

with regional spill-over effects as a possible conse-

quence. For reasons of solidarity, security and long-

term aid effectiveness, and instead of totally with-

drawing from these countries, the EC continued its

efforts in 2003 to find alternative entry points andapproaches to co-operation. The root causes of the

problems, which are very often linked to governance,

need to be addressed and these countries’ gradual

evolution into more effective partnerships needs to be

supported.

programming exercise, together with a hassist EC delegations manage co-ope

grammes related to governance consisten

the expert group on good governan

Commission and Member States will join f

view to adopting a common approach on t

The Commission initiated in 2003 a processa

establishment of a strategic partnership wit

to foster a policydialogue in the area of gove

post-conflict reconstruction. In particular thgovernance-related areas were singled o

governance, peace and development; metho

assessing institutional effectiveness, a

performance in the area of governance.

For the Western Balkans institution-bu

become a key area of Commission suppo

country moves deeper into the process, ass

need to focus increasingly on support for and the institution-building needed to imp

obligations in the Stabilisation and A

Agreements (SAAs). On the side of the c

there is a general awareness that a clear c

to developing adequate institution stru

prerequisite for coping with the challenges p

the SAA process. However, despite large-s

assistance since 2001, many state institutio

experience in programming and achiev

project proposals under tight programmingTherefore, further support in this regard wi

sary. More information can be found in t

sections (chapter 4) of this report.

One of the key priorities for the Co

programme in Eastern Europe and Central A

in the field of institutional, legal and ad

reforms. Since 2000, the European Com

sought to support partner countries in mobligations under the Partnership and C

Agreements which are now in place wit

12 countries of the region. Development

has led to the establishment of an import

of bodies and centres across the region s

to fulfil this aim. The role of institution-



Latin American States continue to assure the moder-nisation of their institutions. During 2003 the

Commission supported initiatives aiming to provide

efficient and transparent justice administration

(Institutional Strengthening and Modernisation of the

Judiciary in Panama) and efficient tax authorities that

will foster improved financial solvency (Uruguay). The

EC also enhances institution-building by strength-

ening the development and implementation of Sector

Policy Support Programmes (SPSPs), bearing in mind

that this is necessarily a complementary and reciprocalmeansof strengthening civil society(Nicaragua – Institu-

tional Support Programme to Development Policies).

1 | 4 The ECThe framework out

developing countr

links. However, t

programmes in di

adapted to the spe

poverty reduction:

ments a mix of pol

each country.

1.4.1. 2003-2

To turn the obj

Development Polic

the Commission h

since 2001. Theyse

Annual Reviews an

comprehensive ov

tives in the area of

In its programme

Commission propo

action, each of whi

approach and obje

1. To deliver on in

Whilst new inter

prepared – e.g. UInformation Societ

action should be

commitments:

• continue to con

Millennium Dev

education, heal

• deliver on Mo

Overseas Develogood governanc

• deliver on Joh

initiative, water

cation, health,

biodiversity);

• contribute to th



2. To ensure an appropriate policy mix at countryand regional level

The mid-term reviews (MTRs) of the Country Strategy

Papers (CSPs) and Regional Strategy Papers (RSPs)

started in late 2002, they continued in 2003 and will

be finalised in 2004. The MTR process provided the

Commission with a further opportunity to consider

general policy issues and ways in which policy mix

could be improved, thus:

• EU policy priorities with respect to different coun-

tries/regions, as laid down in existing agreements

and programmes(Cotonou, MEDA, ALA, TACIS, etc);

• the general development policy priorities and cross-

cutting issues agreed on in the November 2000

statement and made more specific in subsequent

sectoral communications and Council conclusions;

• the EU commitment to providing a comprehensive

response on the promotion of sustainable devel-opment in developing countries, as agreed in

various Communicationsand Council conclusionsin

relation to WSSD (Johannesburg) and DDA (Doha);

• the link with the EU's external political action

(CFSP, conflict prevention);

• the link with ECHO operations through the Linking

Relief Rehabilitation and Development approach

(LRRD);

• the implications of other EU policies on developing

countries (e.g. trade, energy, agricultural andfisheries policy, migration policy, policies on envi-

ronment, food safety regulations, research, infor-

mation and communication technologies, the fight

against drugs, money laundering, human trafficking,

international terrorism).

3. To strengthen implementation and co-ordination

of EC development co-operation

Finally, the action programme argued that a precon-

dition of fulfilling the above objectives is a further

strengthening of EC development co-operation perfor-

mance. In this context the following elements were

mentioned:

1.4.2. Annual Policy Strategy 200The Annual PolicyStrategy 2003, which sta

orientation debate, covered developmentis

the third priority, sustainable and inclusiv

Its conclusions were consistent with and c

the orientations that were laid down in the

programme of action. The APS stated tha

work on achieving a better global partnersh

North and South, notably by delivering

ments made in Monterrey and Johannesbusing the framework of Cotonou agreemen

Europe's solidarity with Africa”.

The 2003 APS objective was “to ensure th

tive effects of globalisation are shared even

and within countries; to work for a fairer dis

resources between North and South resp

cultural diversity and environmental herita

Among the initiatives the link between trade

opment was highlighted. The APS recomm

the Doha Round negotiations and bilateral

tiations with Mercosur, ACP, Russia and Me

countries should take into account the EC d

policy “in a way thatensures the bestbalan

our trade interest and the highest develop

environmental results”. The APS also incl

forced co-operation with third countries in

migration” under the second priority of ssecurity.

In the context of the APS 2003, €70 million

to the Global Health Fund, of which €35 m

the EDF and €35 million from the budget (c

the budget process). This was an important

the amounts that were then discussed f

Regulation on Communicable Diseases (AI

and tuberculosis). The following APS 2004this and provided a further budget all

funding in the fight against communicab

(total amount for 2003-2006, €351 million

reproductive health (total amount for 2

€74.5 million).



1.4.3. Global initiativesA global partnership for sustainable development is

MDG number eight: developing a global partnership

for development. Below isan update on progress made

in 2003 by the ECas a contributor to a number of global

partnership initiatives.

1.4.3.1. The World Summit on Sustainable

Development (WSSD) and the EU

Sustainable Development Strategy The WSSD took place in Johannesburg in September

2002. Wide-ranging commitments were enshrined in

the Johannesburg Plan of Implementation, whose

overarching objectives are to eradicate poverty, to

achieve sustainable patterns of production and

consumption, and to protect the natural resources on

which the economic and social development of future

generations will be based ( 20 ). Since Johannesburg,

important steps have been taken to translate commit-

ments into action. A detailed picture of EU

achievements in meeting the targets is available in the

Commission’s Communication The World Summit on

Sustainable Development one year on: implementing

our commitments ( 21 ).

The EU’s Sustainable Development Strategy, adopted

in June 2001 and updated following the WSSD, is the

main policy framework through which the EU is

putting the WSSD commitments into effect. TheSpring Council of March 2003 gave a new impetus to

the Strategy by inviting Member States to make

progress in the implementation of internal targets,

namely on energy, natural resources management,

chemicals and environmental technologies. The

review of the Strategy, foreseen by the end of the year,

will offer a new opportunity for a comprehensive

debate at EU level. This debate will include acceding

countries, who are required to meet WSSD targets in

sectors as varied as social policy, environment, devel-

opment and many others, with the Union providing

the necessary support.

Some elements of the Johannesburg Plan of Imple-

mentation that have seen progress in 2003 are

the CSR Multi-sta

Commission in Jun

Considerable progr

major partnership i

EU in Johannesbur

I. The EU Water I

The EU Water Init

Strategic Partnershaim to contribute t

WSSD targets on w

The European Com

ment the financia

proposalfor the es

will help leverage

sources. It was for

cated to the Water

from ACP countries

EU civil societyorga

Bank and the Worl

would act as a ca

countries with sou

other, it could p

existing financing m

The specific featur

defined. It is envisato put forward prop

oped with a Europ

also encourage the

in order to leverage

antees, revolving f

In parallel, the E

putting a stronger

needs that still rem

nent. Two working

led by Denmark, de

tation; the secon

integrated water

national and trans-

tation working grou



II. The EU Energy Initiative for Poverty Eradication

and Sustainable Development

The EU Energy Initiative (EUEI) aims at improving access

to adequate, sustainable and affordable energy ser-

vices in rural, peri-urban and urban areas. The lack of

provision of adequate energy services is acknowledged

as one of the major stumbling blocks to the achieve-

ment of the MDGs.

The EUEI highlights the political will of EU Member States and the Commission to enhance their activities

in the field of energy ( 23 ). They are jointly stakeholders

of the Initiative, and an ad hoc Advisory Group was set

up in order to coordinate the implementation of the

Initiative. The Group has contributed to achieving a

common EU position for the Initiative interventions. A

secretariat has been established and manned with

three staff in 2003.

Dialogue with all actors in the energy field is a crucial

component of the Initiative. Some Member States

undertooka facilitating role, in order to make dialogue

with beneficiary countries and regions as effective as

possible.

The EnergyInitiative was launched in the Pacificand in

the Caribbean first. A joint effort by the Commission

and Denmark has enhanced regional capacity for

formulating strategies and policies in the energy sector and increasing the energy efficiency of the Pacific

Island countries. In parallel the European Development

Fund has funded interventions to expand access to

energy services from renewable sources in five coun-

tries of the region. In the Caribbean, dialogue is

focusing on regional strategies for the sector and is

facilitated by Germany.

Dialogue with partners and stakeholders in sub-

Saharan Africa continued throughout the year,

culminating in the conference “Energy for Africa” held

in Nairobi in November 2003. The conference confir-

med the interest of participating African countries

in strengthening joint activities in the energy sector

and identified priority areas for EU development

Dialogue also started in other regions, suc

America, where Finland has been faci

process.

III. The EU Initiative for Forest Law Enforce

Governance and Trade (FLEGT)

The Forest Initiative is mainly intended

illegal logging, a serious threat to biodive

the natural resources base of developing c

In May 2003 the Commission published a

Plan for Forest Law Enforcement, Gover

Trade ( 24 ), following on from the commitme

Johannesburg. This Action Plan sets out

innovative approach to tackling illegal log

causes serious environmental damage, im

rural communities that depend on forest p

a living, and costs governments in developin

an estimated €10-15 billion every year in lo

The Action Plan seeks to link and reinforce t

good governance in developing countries w

instruments and leverage offered by the

market. The core components of the Acti

support for improved governance in wood

countries, and a licensing scheme to ensur

timber enters the EU. Public procuremen

also be used to reinforce this objective. W

ongoing to implement this proposed set o



1.4.3.2. Global Funds and Initiatives in health

and educationThe EC involvement in the Global Fund to fight

HIV/AIDS, Tuberculosis and Malaria (GFATM) increased

further in 2003. The ECmore than tripled its totalpledge

to the Global Fund from €120 million to €460 million.

The GFATM is a demand-driven funding mechanism;

requests for support have increased considerably

since the GFATM was formally launched in January

2002. Therefore the EC decided to frontload its second

contribution from the EDF (€170 million), to be paid for in 2004.

The EC played an important role as an active Board

member in further developing Global Fund policies and

strategies. It worked proactively to set in place policies,

rules and procedures for procurement, portfolio

management, governance and partnership. It chaired the

Procurement and Portfolio Management Committee in

the first six months of 2003 and the Governance and

Partnership Committee in the following semester. In

October the EC was designated member of the

Performance Assessment Committee (assessing the

performance of the Executive Director). A process to

review and re-adjust donor seats on the Board wasiniti-

ated and led by the EC (expected outcome end-January

2004). Throughout the year EC delegations became

increasingly actively involved in GFATM funding in-

country.

In 2003 the Global Fund launched two calls for

proposals and committed a totalof USD 2.1 billion over

two years to 224 programmes in over 120 countries to

respond to the three diseases. In July 2003 President

Prodi, alongside President Jacques Chirac and Prime

Minister Tony Blair, called on the European Union to

show global leadership by making an annual EU

contribution of€1 billion (ECand MS) to the GFATM. So

far EC and EU pledges have reached 55% of total

resources (USD 2.76 billion out of USD 4.87 billion).

The Fast-Track Initiative (FTI) aims at contributing to

Education for All (EFA) by helping low-income countries

with sound policies but insufficientresources reach the

Millennium Development Goal (MDG) of giving all

the FTI Partnership

EU Member States

of providing financ

context of the cu

programming and

In the last years, th

specific issue ofpo

through various ins

and sector-wide ap

the ARIVA (Appui aVaccinale) Program

programmes aimed

sation, such as th

2003 the EC addre

Initiative’s shortag

linked with the grow

India. Total EC sup

initiatives in the co

dence in 2002 am

€25 million for Indi

(€12.9 million for 2

1.4.3.3. The Doha

In November 2001,

approved an amb

oriented agenda f

Development Agen

of the multilateral t

involvement of devground, the industr

in the area of trade

the benefits from

largest trading bloc

main stakeholders

Following the unsu

of September 2003

Communication on

ations, thus unders

development dimen

focusing support on

Least Developed C

landlocked develo

particularly vulnera



The Sustainable Development Strategy seeks to

strengthen synergies between trade and sustainable

development at the environmental interface. In broad

terms this means ensuring that sustainable develop-

ment concerns are taken into account throughout WTO

negotiations. The specificobjective is to ensure positive

results from on-going trade-environment negotiations

that are part of the Doha DevelopmentRound. An inter-

vention in this area was the launching of Sustainable

Trade and Innovation Centres (STICs) aimed at helping

developing countries’ producersbenefit from enhancedmarket opportunities, notably for environmentally-

friendly products.

1.4.3.4. Financing for developmentThe MonterreyConsensus, adopted bythe International

Conference on Financing for Development (FfD) in

Mexico in March 2002, reflected a number of critical

commitments “to address the challenges of financing

for development around the world, particularly in

developing countries”. The EU defined its contribution

to the FfD process at the European Council in Barcelona

on 14 March 2002 and pledged to increase its Overseas

Development Aid (ODA) to reach the UN target of 0.7%

ODA of gross national income (GNI). The EU interme-

diary collective target was set at 0.39% by 2006, by

which year the Member States should reach the target

of at least 0.33% of GNI individually ( 25 ).

The Commission is mandated to report annuallyon theextent to which the EU Member States implement the

Barcelona Commitments and contribute to the FfD

process ( 26 ) and to propose corrective measures wher-

ever sufficient progress is not demonstrated. The

monitoring exercise is a good opportunity for collective

benchmarking and ensures transparency on actions

taken by the Union. The first report of this kind was

approved by the GeneralAffairs and External Relations

Council (GAERC) in May2003. It showed that the EU and

its Member States have made a good start in their

efforts to meet the Barcelona commitments, in partic-

ular on the pledges concerning increase in EU ODA ( 27 ).

In 2004 the Commission will update its analysis and

make recommendations for further action in certain

fields. For the first time, the contribution by the future

1.4.4. Responding to different reand country needs

The EU’s fundamental aim for South-East E

create a situation where military conflict

able – expanding to the region the peac

prosperity and freedom established ov

50 years by the EU and itsMember States. T

objective of Communitysupport for the Wes

region remains the pursuance of the Stabi

Association Process. The EU is by far the latance donor to the Western Balkans as a w

assistance programmes underpin the obj

mechanisms of the Stabilisation and A

process. As each country moves deeper in

cess, assistance will focus increasingly on

the reforms and institution-building vital to

tation of the obligations set out in the Stabi

Association Agreements. In the area of supp

tution-building, work is well underway,

practices used in the enlargement process

With enlargement, the EU will share a lon

border with the region of Eastern Europe, th

and Central Asia (EECCA). The EU is the le

and economic partner of the region, while

region is an important source of energy su

Union. The need for EU support is increasin

of large and growing gaps in living standar

the enlarging EU and the EECCA region. The of these issues is underlined by the crea

European Neighbourhood Policy.

For the TACIS programme – the main aid ins

co-operation with Eastern Europe, the Ca

Central Asia – the objectives are to promot

tion to a market economy and to reinforce

and the rule of law. The programme is ba

Partnership and Co-operation Agreements

are in force between the EU and nine out o

countries of the region. The main co-ope

place in the following areas: institutiona

administrative reform; private sector and

development; social consequences of trans

structure networks; environmental prot



dialogue on political and security issues has been

taken further with the idea of adopting a global

strategy while directing closer attention to the new

security challenges that are particularly significant in

the Mediterranean region. On the occasion of the

Naples Conference, while reaffirming the complemen-

tarity of the Middle East peace process and the

Euro-Mediterranean partnership, as set out in the

Barcelona Declaration, the Ministers acknowledged

that there should be no direct link between the two.

They also confirmed the commitment of the EU inplaying an important role in the political and economic

reconstruction of Iraq.

Building on long-existing bilateral relations between

European countries and Latin America, the European

Union has established and built up links with Latin

America since the 1960s. The EU is an important

economic and political partner for the region: it is the

leading donor, premier foreign investor, and second

most important trade partner. Considerable human

and financial resources are devoted to the political

dialogue and development co-operation with the

region and to the development of an ambitious set of

agreements. In 2003, two new agreements for political

dialogue and development co-operation were signed,

one for the Andean Community and one for the six

Central American countries. The EU also continued

negotiations for an Association Agreement with

Mercosur.

EU development co-operation with Latin America aims

to promote political stability and social and economic

development. The financial and technicalcontributions

are designed to help Latin America to achieve more

equal wealth distribution, to reinforce the rule of law

and democracy and to protect its environment. In addi-

tion a number of decentralised programmeshave been

adopted to provide economic assistance at the hori-

zontal level. Their aims are to support regional

integration, to increase the competitiveness of Latin

American enterprises in international markets and to

facilitate the development of know-how.

The Commission’s partnerships with Asia are based on

at regional and bil

by Asia-wide EC-fin

The partnership b

the African, Carib

enshrined in the EU

known as the Coton

after an intensive p

relations, the new

conventions (two

20 years, allowingthe ACP Statesand

the Agreement. T

Agreement are pov

opment and the

countries into the w

establishes clear l

sion, trade and de

Partnership Agre

following completi

ACP Group is now

78 are parties to th

( 29 )Communication COM (2001) 469

of 4.9.01 “Europe and Asia: A Strategic Framework for

Enhanced Partnerships”.

( 30 )Communication COM (2003) 399of 9.7.03 “A new partnership with

South East Asia”.

( 31 )

Communication COM (2003) 533of 10.9.03 “A maturing

partnership – shared interestsand challenges

in EU-China relations”.

( 32 )South Africa, Cuba and East



1 | 5 EU enlargement anddevelopment co-operation

1.5.1. EU enlargement:expanding the donor community

Development issues in the context of enlargement

remained one of the priorities for the Commission. The

programme of work launched in 2003 with acceding

countriesand current Member States focused on three

aspects: i) likely implications of enlargement onCommunity development policies and programmes

(e.g. decision-making processes, definition of priori-

ties, channels of implementation and financial issues);

ii) possible ways to help the acceding countries prepare

for taking on the Community's development policy and

their role as emerging donors (re-emerging in some

cases); and iii) implications for the Community's devel-

opment partners. With the accession of the 10 new

Member States, non-governmental organisations in

those countries are expected to gradually develop their

capacity and engagement in the global development

process.

Several studies and fact-finding exercises, as well as a

first set of capacity-building and awareness-raising

activities, were launched in 2003 to help define and

inform future activities in this area, including a ‘road

map’. This work will continue and expand in 2004-2005.

The main assessment focusing on the impact of

enlargement aimed to clarify, introduce and monitor

the “development acquis”, including examining the

institutional framework, resources and financial

commitments, as well as the preparation of the new

Member States in terms of capacity-building and active

participation: the implementation of common and co-

ordinated actions by the EC and Member States.

A Task Force was set up in May 2003 to ensure the effi-

cient and coherent integration of the development aid

activities of the ten new Member States. The Task

Force’s initial focus was to ensure that adequate

capacity-building measures were being designed and

implemented in the new Member States up to and

1.5.2. The European Neighbourhpolicy

With the Communication to the Counc

Parliament ( 33 ) on Wider Europe the Comm

forward a new policy of the enlarged Euro

towardsits “new neighbours” and in partic

the Western NIS and the ten Mediterranea

The Communication also foresees that

should work with its neighbours to addre

challenges and that the EU co-operation i(in particular TACIS and MEDA) must be

flexible to address the entire range of need

As regards financial support for cross-bord

ation in the context of the European Neig

policy and between the enlarged Union a

Balkan countries, the Commission has issue

Communication entitled Paving the way

Neighbourhood instrument ( 34 ). The Com

sets out a two-phase approach: for the peri

specific Neighbourhood Programmes wil

framework for enhanced co-ordination b

existing cross-funding instruments, in

Interreg, CARDS, MEDA, PHARE CBC and

The elaboration of a single New Neighbourh

ment will start to operate as of 2007.

Following the July Communication, specifi

within existing envelopes have been identNeighbourhood Programmes. The level of fu

seen for the period 2004-06 under externa

instruments will be €75 million for TACIS,

for PHARE and €15 million for CARDS. Ap

€800 million will be provided for the inter

under the Interreg programme. Preparato

started in 2003 on a number of external bo

In October 2003 the Council endorsed

Northern Dimension Action Plan. The North

sion in the European Union covers the

region, Arctic Sea region and North-Wes

addresses the specificchallengesof those

aims to increase co-operation between the

States, the applicant countries and R



The Action Plan was developed on the basis of a

Commission proposal ( 35 ). It was approved by the

General Affairs Council of 29 September 2003 and will

cover the period 2004-06. Particular attention will be

devoted to the implementation of activities pertaining

to the five priority sectors of the Action Plan: economy

and infrastructure, social issues (including education,

training and public health), environment, nuclear

safety and natural resources, justice and home affairs

and cross-border co-operation. The Action Plan also

stresses the need to pay special attention to areas of the Northern Dimension region with particular devel-

opment needs, such as the Arctic and sub-Arctic areas

and the Kaliningrad region.



2 | Efficiency and efof EC co-operatio



2 | 1 Reform of External Assistance Management

2003 has seen the active pursuit and implementation

of the reform process, an essential element of which

has been the deconcentration of the management of

External Assistance to the ECDelegations. This was also

the year when the focus clearly shifted from inputs to

results. Even if the reform process that began in 2000

continues, the Commission can now rightfully expect

to be able to measure its effect so far.

The reform has resulted in greater focus on the

strategic planning and programming of external assis-

tance. The Commission’s key programmes have been

simplified – this facilitates decision-making at the stra-

tegic programming level as well as downstream at the

implementation stage. It also makes it easier to ensure

consistent quality, both through the internal quality

support mechanisms and through the adoption of best

internationalpractice. The use of clear Country Strategy

Papers favours co-ordination with other actors and

ensures better effectiveness all round, and also

provides for the programming of horizontal budget

lines.

2003 has seen the completion of Mid-Term Reviews of

all Strategy Papers (except the ACP countries’) with a

view to maintaining relevance and enhancing respon-

sivenessto situations as they evolve and, above all, tocontinuing to deliver timely and quality programmes.

In a further effort to improve coherence and comple-

mentarity, the Commission has started to prepare

Country Fact Files – this tool, which will also promote

donor co-ordination, has been developed in response

to a specific request from Member States.

The implementation of the budget has continued

to improve since the beginning of the reform.

Commitments for 2003 were €3,919 million (compared

to €3,877 million in 2002) and payments reached

€3,271 million (compared to €3,327 million in 2002).

With respect to the EDF, commitments were a massive

€3,700 million, due to the ratification of the Cotonou

agreement, (compared to €2,114 in 2002) and pay-

The management capacity of the Euro

operation Office continues to improve

management information tool, CRIS (Com

Information System), gains widespread

During the course of the year, CRIS has

further improvement and has now beco

reporting, planning and forecasting tool. Fi

project information is now available in all

in the same format, providing managers with

instrument with which to manage externa

proactively. Delegations have at their dmeans to monitor progress effectively a

corrective action as needed.



2 | 2 Deconcentration

As at the end of 2003, deconcentration was operational

in 61 Delegations, completing in large measure the

deconcentration of the geographical programmes –

including, where feasible, the regional programmes –

and achieving this key objective of the reform process.

Deconcentration of the thematic and horizontal lines,

which began in earnest in 2003, has continued with the

deconcentration of Food Security and Human Rightsmicro-projectsto all Delegations. The processof decon-

centration of the remaining thematicbudget lines is set

to begin in April 2004.

Delegations provide the most visible example of how

deconcentration has changed the waythe ECworks, but

the consequences for Headquarters have been no less

pronounced. A profound change in working methods

and culture has been necessary to ensure that

Headquarters has the tools to provide quality support

and sectoral and thematic expertise to staff in the

Delegations.

Important preparatory moves, in particular logistical

and staffing measures, have made deconcentration a

reality. Delegation staff will have increased by almost

1 600 by end-2004, and almost all Delegations will

have had to move offices or arrange extensions.

Telecommunications systems have been installedworldwide to enable Delegations to operate under the

same conditions as their colleagues in Brussels. Some

preparatory work remains for ACP Delegations— nego-

tiations have begun with ACP countries to guarantee

funding for these Delegations from 2006 while, in the

longer term, a favourable outcome to discussions on

budgetisation will provide a sustainable solution.

More importantly, the Commission is now in a position

to see the first benefitsof thisambitious and extensive

exercise. The full impact of a reform on this scale will

become clearer in the medium term, but there is

already encouraging feedback from many sources,

particularly in those countries that have already been

operating in a devolved way for more than two years.

At end-2003, an

recorded positive

centration has res

speed and quality

management resp

transferred to Dele

staff to focus on m

Despite the signific

over €7 billion in a

a very short periohave not been adv

term – indeed pay

58% between 199

been accompanied

old projects still

Delegations have

now has more staf

is a vast improvem

other donors, parti

donors still manag

ated with the pr

measures taken to

An evaluation of

Service has also ta

also complete an e

in the course of 20



2 | 3 Quality improvement and Quality SupportGroup initiatives

2.3.1. Programming level

The interservice Quality Support Group (iQSG) has

continued its institutional taskof assessing and making

recommendations on draft programming documents.

During 2003 this was done for 11 programming docu-

ments. The focus of the iQSG, however, has largelyshifted to strengthening programming systematically in

terms of coherence and quality. Below is an overview

of the iQSG’s main activities in 2003.

The Mid-Term Review (MTR) is an important step in the

Country Strategy Paper (CSP) process and continuous

CSP quality improvement. In line with the proposals

made in the progressreport ( Report on the CSP process

to the Council )( 36 ) and the Council Conclusions, exten-

sive efforts have been made to establish a common

platform for the MTR process across the regions. Each

Regulation and Agreement that governs EC co-opera-

tion with the respective regions (ACP, ALA, CARDS,

MEDA, TACIS) approaches the question of review differ-

ently. It is important that the MTR is implemented in

accordance with existing rules.

On 18 March 2003 the Council adopted conclusions on

four such basic principles to be applied to the CommonFramework for Country Strategy Papers. In this context

the iQSG has put in place a methodology for quality

screening offuture programming documents in order to

maintain coherence and quality, and certain basic prin-

ciples should apply to the Mid-Term Review of CSPs in

all regions.

The four principles listed below are the basic reference

points for the iQSG’s assessment of the revised strate-

gies and programmes coming out of the MTR:

• assess whether the strategy is up-to-date with

developments in the country brought about by

internal, regional or external events, including the

Poverty Reduction Strategy process where it exists;

To facilitate the aspect of policy mix/integra

initiatives in the MTR exercise, the iQSG has

an inventory of the most important policyco

pertaining to the CSP and MTR processes.

The Commission has developed a compreh

training module for deskofficers and Delega

ACP countries. Seminars took place at the e

and were attended by some 130 participants

of Delegation.

Adoption of a Framework for Progra

Horizontal Budget Lines

On the basis of an inventory of existing

budget lines (HBL) – providing an overview

ming/ interventions under existing instru

improving the “instrument mix” in respons

– the Commission has developed a Comm

work for programming Horizontal/Thema

lines comparable to the one for Count

Papers.

In order to monitor follow-up to its recomm

the iQSG Secretariat has developed a so-c

contradictoire’ reporting recommendatio

modifications made as a result or the expl

to why a recommendation has not been im

The iQSG Secretariat has also carried outstudy” in 12 countries to assess the imp

recommendations and the use of the ‘ fich

toire’. The study found that, on average, 6

recommendations have been reflected i

version of CSP/RSP documents. Most of

mendations that were taken into account co

formal aspects (e.g. completing the analys

with additional facts and improving pres

donor matrix), rather than questions of

(reducing number of interventions, improv

tors, improving on mainstreaming of g

environmental aspects).



2.3.2. Implementation level

At the implementation level a number of important

quality initiatives were taken in 2003. The quality

support measures introduced by EuropeAid in 2002

produced their first results in 2003. Two new thematic

networks (gender and environment) were established,

bringing the total number at end-2003 to 13 networks.

These networks contributed during the year to the

dissemination of best practices and the development

of training programmes. Four new operationalmanualswere finalised in 2003 (Trade, Private Sector Devel-

opment, Promotion of Good Governance and Sector

Wide Approaches).

Since October 2002 the Office Quality Support Group

(OQSG) established by EuropeAid has examined

more than 200 operations at the end of the appraisal

phase and before presentation to the Management

Committees. This represented about one-third of all

operations in 2003.

2 | 4 The “T

the W

Co-ordination, Com

concepts that are i

tice. Improved co-o

complementarity a

essential elements

is important to co-

two or more develo

policies, programmmaximise the dev

sources. Co-ordina

or inconsistencies

the same goals.

The international m

Level Meeting in R

greater co-ordinatio

ordination but go

should focus on prmost value, given w

mation about sect

partner country is a

tarity. Ensuring coh

Community develo

its policies and go

legal obligation fo

policyareas produc

the intended resul

In February 2002, t

the need for impr

external actions. C

oped by the Comm

and improve the co

Union’s external in

listing all formal a

the EU and a part

discussed with Mgroups in the Euro

joint effort at co-ord

lists all EU policies

concerned, althoug

operation. The ECe



2.4.1. Coherence between different

policy areas and development

T he European Community has various Association

and/or Co-operation Agreements with the Low and

Middle Income Countries in Africa, Asia, Latin America,

the Mediterranean, the Balkans and Eastern Europe

and Central Asia, covering the many policy areas

mentioned below. The specific areas of interaction

between the EU and the developing countries depend

on a number of factors related to the country con-cerned; national income, poverty incidence, export and

import structures, geographical proximity to the

European Union, research capacity, etc.

The challenge for the EU is to provide the right mix of

policies in different contexts. Building on the various

Association and Co-operation Agreements and its

involvement in several policy areas, the Union has a

unique possibility to apply an effective and efficient

mix of co-operation instruments in every instance. Inthe case of development co-operation, the tool in use

is the Country Strategy Paper.

Country Strategy Papers (CSPs) were introduced in

2000 as one of the key principles of the management

reform of EC external assistance. They are management

tools, based on multi-annual programming, thatensure

that external assistance reflects the EU’s policy objec-

tives and priorities. They are also a key instrument for achieving greater complementarity in the area of

development co-operation between the Community

and the Member States, as wellas achieving coherence

of policies.

Given the fact that the Union applies various policies

to a country and that these policies are not always co-

ordinated, the danger of conflicting interests is

self-evident. There are several layers of policies that

may, or may not, conflict, so coherence within EU poli-cies has to be assured at various levels. Progress in

improving coherence between EC development policy

and other EU policies in 2003 is reported below for a

number of key policy areas. Others, such as trade, have

already been addressed in 1.3.1.

The European Council endorsed this appro

confirmed, at its meeting in Seville, that“ancomprehensive and balanced approach to

root causes of illegal immigration must

European Union's constant long-term objec

context the Council stated that “closer ec

operation, trade expansion, development

and conflict prevention are all means of

economic prosperity in the countries con

thereby reducing the underlying causes o

flows”.

In its conclusions of May 2003 the Council e

the potential for greater synergy between m

development policies. Areas mentioned by

included capacity-building to combat traf

smuggling of human beings, improvemen

tion and management of legal migration a

and the facilitation of a sustainable return

through programmes accommodating

returnee and the developing country ofCouncil also invited the Commission to ex

gies between migration and developme

where they exist, i.e. by facilitation of “b

tion”, facilitation of efforts by the “tra

community” to contribute to the developm

country of origin, making migrants’ remittan

country of origin cheaper and more re

employing more local staff in developmen

tion programmes.

In 2003, the Commission gave concrete ex

these commitments: the dialogue with thir

in the area of migration has been intensi

particular, a clause on the joint manageme

tion flows has been included in every Asso

Co-operation Agreement negotiated with

tries during this period, allowing a full dial

migration issues with the third countries co

addition, migration has been identified asthe context of the Mid-Term Review of t

Strategy Papers; this should result in certa

adjustments of strategy in order to take i

migration concerns more adequately.



2.4.1.2. Agriculture and Fishery policies

and developmentThe Common Agricultural Policy (CAP) is one of the

fields where coherence with developmentpolicy is crit-

ical. In line with the orientations proposed by the

Commission in 2002, a major reform of the CAP( 38 ) was

adopted on 26 June 2003. This should generally

improve its impact on international trade, as it moves

a large part of agricultural supportfrom trade-distorting

to non-trade-distorting categories as defined by the

WTO. By decoupling most of the subsidies, i.e. grantingthem independently of production levels and even the

type of products farmed, this reform is expected to

make EU agriculture more sustainable, more market-

oriented and hence more competitive, while reducing

EU spending on export subsidies and exports of

subsidised production. However, part of the support is

still product-specific and Member States have been

given room to adapt measures to regional characteris-

tics. This reform covers many important products such

as cereals, rice, oilseeds, grain legumes, dairy, beef,sheep and goat meat, and will start to be applied from

2005 or 2007, depending on the Member State.

The improved coherence between the CAP and EU

development policy resulting from the June 2003

reform also allowed the Commission to position itself

on more development-friendly ground in agricultural

trade negotiations in the Doha Development Round.

As regards expenditure the Council agreed, in October

2002, to freeze CAP expenditure until 2013 while

covering the enlarged EU. The June 2003 reform thus

includes a financial discipline mechanism to ensure

control over CAP spending in practice. This stabilisation

of the level of subsidies to EU agriculture is a further

step towards a more even playing field for competing

farmers from developing countries. However the possi-

bility, introduced by the reform, for Member States to

complementCAP measureswith assistance to nationalagriculture, without requiring the Commission’s prior

clearance, opens the door to a potential overall

increase of subsidies to EU farmers.

Regimes for commodities like cotton, tobacco and

In December 20

Communication oFisheries Partnersh

proposals to refo

(CFP). The Commis

eries relations invo

gradually from Ac

Agreements, with a

and sustainable fis

parties. In this way

coherence betweencies, in particular i

The implementatio

tant role in the Com

2003. The new app

knowledge on the

environmental and

ment on the partn

negotiations. The C

carry out evaluatioexercises for thispu

EC has also started

improvement of sc

eries outside Comm

Community and th

better information

contribute to respo

Parallel to Counciconclusions on th

promote responsib

framework of bilat

regard elements in

cols with countries

include an exclusiv

or other arrangeme

to avoid a lowerin

local seamen emba

strengthening of pcontrol and surve

Commission’s rec

mandate for a fish

ched in May 2003,

framework of the F



2.4.1.3. Research

Since the early 1980s, the European Community hasbeen supporting research co-operation in the field of

scientific and technological (S&T) development

between institutions in the Member States and their

counterparts in developing countries in Asia, Africa, the

Mediterranean Basin and Latin America. Research

funded by the EC is increasingly called upon to

contribute to EU policy formulation in many sectors,

including those of prime global relevance such as

health and the environment. The 6th

Research Frame-work Programme, which became fully operational in

2003, gives special priority to policy research. A

substantial part of the budget is devoted to research of

interest to developing countries. Moreover, the entire

Framework Programme has incorporated an interna-

tional dimension including specificactions offered with

the Marie Curie scheme, open to participation by third

countries’ research institutions, and special funds are

offered to increase mobility of researchers to and from

these countries.

In the health field, research activities and the develop-

ment of new tools and efforts to tackle the three major

diseases – HIV/AIDS, malaria and tuberculosis – have

suffered from lack of sufficient funds and also from

insufficient co-ordination of research efforts. However,

the EU has increased its funding to €400 million under

the Sixth Framework Programme for Research on these

three poverty-related diseases. Initial funding hasbeen made available in 2003 for integrated research

projects, including support for many partner research

institutions in Africa.

In addition to increased fundamental and pre-clinical

research, a specific body was set up in 2003 as fore-

seen in Article 169 TEU, the European Clinical Trials

Programme (EDCTP). Its overall goal is to accelerate the

development and evaluation of new vaccines, drugs

and other preventive or therapeutic tools againstHIV/AIDS, malaria and tuberculosis. It will have a target

budget of €600 million, of which one-third will be

contributed by the Community, another €200 million by

Member States and Norway, and a further €200 million

targeted from the private sector (industry, foundations

The Commission has also been promotin

into a better understanding and new techcombat the infectious burden of neglecte

cable diseases such as schistosomiasis

and Chagas’ disease. A call for collaborati

proposals on these diseases as well as

systems, services, management and p

published with a deadline of September 2

Concerning the environment, a series of ac

developed, mainly on water issues suEuropean participation in the 3rd World Wat

Kyoto in March 2003 in the framework of th

Initiative (EUWI)( 42 ). Africa, Asia and the Me

countries are the regions where research is

the impact of water-related projects.

Agricultural Research for Development (A

The EC addressesagricultural research for dev

several ways. The 6th Research Framework

supports developing countries to improve the

of people living under conditions of food inse

INCO activity. Thematic Priority 5 addresses F

and Safety and is open to participation and fun

ners from developing countries.

The EC continues to be one of the main donlevel through its contribution to the CGIAR

important role on the governance bodies of

directly and via the European Initiative for AR

Together with the African Sub-Regional Orga

ARD, the African Forum (FARA) and the G

(GFAR), the EC is leading the design and imp

of agricultural research networking in Africa.

In order to facilitate the involvement of all po

holders in ARD so essential for the future, the

is the first(but not the only) “co-sponsor” of th

Programme on Genetic Resources named “Cult

diversity for the resource poor”.



2.4.1.4. Transport

Most economic experts agree that transport promotesand supports economic development, contributing to

the expansion and integration of world markets. There

is a close link between economic development and

growth in air traffic. The emergence of mass tourism in

the economically more developed regions of the world

has contributed to the development of localeconomies

in many other areas that would otherwise have

remained under-developed. Air transportation of high-

value or perishable products and produce has alsocontributed noticeably to industrial development

worldwide. It is therefore legitimate that Community

co-operation policy with third countries should include

support in the aviation field.

Within the framework of its Communication on the

EC’s contribution to enhancing air safety ( 43 ), the

Commission acknowledged the unique and indispen-

sable character of the technical assistance activities of

the International Civil Aviation Organization (ICAO). Inline with this, Community financial support has been

granted since 2000 to four development projects

relating to operational safety and air navigation (the

COSCAP projects). Three of these – the projects for

Southern Asia and South-East Asia managed by the

ICAO and a Central American project – terminated in

2003. The COSCAP Northern Asia project, launched in

2002 and due for completion in 2005, is still underway.

Two additional COSCAP projects covering regions of Africa where specific requirementswere identified and

local resources for implementation were deemed suffi-

cient – the South African Development Community

(SADC) and the West African Economic and Monetary

Union (UEMOA) – were also selected in 2003.

The objective of improving maritime safety and the

protection of the environment, on the basis of inter-

nationally agreed standards, was developed within

the framework of both the International MaritimeOrganisation (IMO) and the International Labour

Organisation (ILO). Specific objectives include a

sustainable improvement in protecting Mediterranean

waters against the risk of marine accidents and pollu-

tion, the improvement of seamen’s life conditions and

A number of initia

countries either ddeveloped countrie

• Establishment o

Agency (EMSA)

formulating pol

maritime secur

certificates.

• Improved moni

from major woPhilippines, Ind

registering Euro

under flags of co

and the safety

satisfactory lev

mariners are no

• Promotion of th

ment of Comm

while maintain

quality training • Formulation of

order to ensu

employment of

practices in al

countries.

• Co-ordination w

national conve

issues.

2.4.1.5. Common(CFSP) a

T he interaction be

and international d

essential that poli

mentsare brought

and progress in som

in order to alleviate

Community developrogrammes provid

causes of conflict,

Security Strategy, a

December 2003. T

preventing future c



crisis. The challenge is to ensure thatall instruments at

the EU’s disposal at this time contribute to a resolutionof the conflict and encourage a ‘normalisation’ of the

situation.

Chapter 5 of thisreport deals more extensivelywith peace,

governance and security as factors of development.

The Commission has developed more focused support

for the fight against terrorism, in response to the

General Affairs External Relations Council (GAERC)conclusions of 22 July 2002 which emphasised the

need for the EU to assist third countries in imple-

menting their obligations under UNSCR 1373.

Resolution 1373 of the Security Council provides a

clear steer for action to improve our partners’ ability to

combat and suppressterrorism. This in turn has forced

the Commission to re-assess technical assistance, with

a view to contributing to this goal.

The OECD’sDevelopment Assistance Committee (DAC)is fully in accord with the approach that the

Commission has pursued, with an emphasis on three

broad areas of activity where development assistance

plays a role:

• Bolstering long term structural stability.

• Dissuading disaffected groups from embracing

terrorism and other forms of violent conflict.

• Denying groups or Individuals the means to carryout terrorism – reinforce governance.

The Commission has identified a significant number of

existing technical assistance projects and programmes

which contribute to capacity-building in areas relevant

to the fight against terrorism.

The key objective isto ensure that all countrieshave the

institutionalcapacity to combatterrorism. In three pilot

countries (Philippines, Pakistan and Indonesia) and theASEAN region, the Commission has used the Rapid

Reaction Mechanism (RRM) to fund specific action

against money-laundering and terrorist financing. In

Central Asia, the Commission is in the initial phase of a

border management assistance programme which has

In addition the Commission presented a p

the request of its African partners, for an AfFacility to the value of €250 million: this w

the African Union in its efforts to contribut

keeping and conflict prevention measu

African Continent.

The fall of the Soviet Union has created a

dented threat to world security through th

‘brain-drain’ of Weapons of Mass Destruc

scientists and the transfer of weapon tech‘rogue’ states and terrorist or criminal or

anxious to acquire that kind of expertise.

In the area of research the international com

responded by establishing two Science and

Centres – ISTC in Moscow and STCU in Uk

using this opportunity to engage WMD s

research and development for peaceful purpo

has taken an active part in establishing the

the main purpose of which is to give Russscientists and engineers, with knowledge

related to WMD and missile delivery systems

tunity to redirect their talents to peaceful ac

Centres carry out WMD non-proliferation p

and are allowed by governmental decree

within the limit of militaryareaswhere R&D is

2.4.1.6. Linking Relief, Rehabilitation a

Development (LRRD) / DisasterPreparedness and Prevention (The joint Council and Commission dec

November 2000 on EC development policye

that the link between humanitarian aid an

ment co-operation (LRRD) is a matter of

importance for the efficiency of EC assista

mining as it does the capacity of the Union

co-operation to the changing needs of cou

by conflict and/or natural disaster. Coh

co-ordination between the exit strategyHumanitarian Office (ECHO) and the progra

implementation of the development phas

fore preconditions for ensuring an effective

An Interservice Group of representative



The Interservice Group suggested practical steps for

ensuring an effective transition from emergency aid tothe longer term co-operation cycle for eight countries

and two regions (Angola, Sierra Leone, Ethiopia, Sudan,

Burundi, Cambodia, Afghanistan, Tajikistan, WestAfrica

and Central America). The 2004 Mid-Term Review will

provide the opportunity to monitor progress.

As regards the issue of anti-personnel mines, 22 new

projects were launched in 2003, nine of them in

Africa (with an EC contribution of €8.9 million), six inAsia (€8.1 million), one in Latin America (Nicaragua,

€1.3 million) and two in the Balkans (€3.6), with four

other projects (€2.8 million) extending to a variety of

regions. These projects cover a series of activities

ranging from research and information gathering on

minefields to the actual de-mining process. A particu-

larly successful initiative – “Anti-Personnel Mine

Detection by Rodents” – drew on a ‘natural resource’

by raising and training rodents to detect mines. This

initiative, in Tanzania, was granted Community aid of €1.2 million.

The first call for proposals (€4.6 million) in this field

was published in November 2003, with a deadline for

submission of proposals by 19 February 2004. The call

covers Asia (Sri Lanka and PR Lao) and Africa (the

DemocraticRepublicof the Congo and Guinea-Bissau).

2.4.1.7. DrugsThe production of drugs can be a significant obstacle

to development. As in the recent past, efforts in the

fight against drugs were focused in 2003 on Colombia

and Afghanistan: countries which are the main sources

of coca and heroin in the world and whose political,

economic and social development prospects are

seriously hampered by pervasive drug cultivation,

production and trafficking.

In 2001 the Commission launched a modified strategyfor alternative development in Colombia that supports

the so-called “Peace Laboratories” project, which

expands the traditional notion of alternative develop-

ment by placing a stronger emphasison strengthening

governance and on the provision of infrastructure.

While the Barbado

ago – and while thof a home-grown

drugs strategy – th

number ofsmall ini

training/institutio

reduction; some o

efforts to transfer

and Asia and Latin

an important an

underway in the re

In 2003, specific a

launched in poppy

As in 2002, manyo

struction went to p

key role in helping

opium poppy cultiv

efforts to curb tra

Austria and impl

Nations Office of D2003, sought to s

Iranian-Afghan fro

provided significan

Fund which suppo

salaries and trainin

Along the heroin rou

have been undert

Drugs Action ProgrAnti-Drugs Program

and Moldova Ant

Community co-ope

Central Asia, South

countries. Signific

strengthening and

with Russia.

A particularly im

Community co-opreduction project

UNODC and severa

part of a humanita

HIV/AIDS in the co

sion to launch a



In the SAARC (South Asian Association for Regional

Co-operation) region a precursor control project, imple-mented by UNDCP, finished its operations in 2003,

while the ASEM Anti-Money laundering project, imple-

mented through the UK’s Department for International

Development, will continue in 2004.

The SADC Secretariat’s efforts in the fight against

drugs continue to be supported by the European

Development Fund and further support is envisaged for

the coming years. Most of the bilateral and regionalefforts in the Mediterranean and Balkan regions

continue to focus on building capacity in the general

area of law enforcement rather than on drugs in partic-

ular; nonetheless, drugs is one ofthe five priorityareas

in the training provided for law enforcement under

MEDA’s regional programme for justice and home

affairs. Moreover, a drug-trafficking prevention project

is now being considered for Croatia.

2.4.2. Co-ordination andcomplementarity

During 2003 the Commission played a vital role in the

international aid harmonisation and effectiveness

debate. Achievements included an active role in the

High Level Forum on donor harmonisation hosted by

the World Bank and the EU in Rome and the ongoing

follow-up to this process, which takes place within

the OECD’s Development Assistance Committee. TheCommission also presented a report to the General

Affairs Council in May 2003 on the implementation of

the Barcelona Commitmentsand the EU follow-up to the

Financing for Development conference in Monterrey.

Within the Union, co-ordination of policy and assis-

tance between the Commission and Member States has

improved considerably, particularly through regular

informal meetings of EU Directors-General for

Development, ongoing discussion of Country SupportPapers ( 45 ) and implementation of the first wave of

deconcentration. The Commission has also continued

to support the pilot exercise for closer EU co-ordination

which was initiated in 2002 in Vietnam, Nicaragua,

Mozambique and Morocco.

Progress has also been made on human

development policies as a significant conoverall co-ordination efforts:

• In education, experts from the Member

the Commission have agreed on indicato

harmonisation. These provide both an

for assessment of progress made and t

a step-by-step approach towards do

nisation. Indicators will be tried out in a

countries in 2004. The EU’s suppo‘Education for All’ Fast-Track Initiativ

thus include powerful tools for promo

harmonisation within globally agreed o

• In health, experts from the Member Sta

Commission have agreed on an Actio

harmonisation at country level. Act

include common country strategies,

appraisals with common indicators, p

nical assistance and joint financing m

The Action Plan will also be taken fonumber of countries in 2004.

In the context of renewed efforts to enhan

nation, the discussion on complementarit

pursued, not least in the context of the

follow-up exercise. In 2003 the Commissio

a mapping study on the presence and the

the EC and the Member States in developin

The outcomes of this study will inform furtsions on complementarity among the EC a

States.

Discussions have continued with the Frenc

German (KfW) co-operation agencies i

develop co-financing formulas, including

of certain Commission management respo

in agreement with the New Financial Reg

the Budget and the 9th EDF.



As regards EU co-ordination efforts in multilateral fora,

substantial progress has been made in recent years inestablishing a cohesive Union presence in policy

debates at the UN. Thanks to the efforts of successive

Council Presidencies and the Commission, the EU now

co-ordinates its position effectively in most important

UN policy fora such as the General Assembly (EU

common position on almost 95% of resolutions),

ECOSOC, its regionaland functional commissions, and

most specialised agencies, as well as in major inter-

national conferences. The European Union has thusemerged as one of the key players in the UN. Co-ordi-

nation however needs to be improved in important

policy fora in the field of development such as the

governing boardsof UN Funds and Programmes, where

Member States are still reluctant to engage in a more

comprehensive co-ordination exercise, thereby seri-

ously reducing the potential European impact in the

policy debate. The same situation applies to some

extent to the work of the Development Assistance

Committee of the OECD, although some progress wasmade there in 2003.

The arrival of the ten new Member States will create

both challenges and opportunities for the EU’s role in

the UN system and mayrequire a seriouseffort to main-

tain an effective and responsive presence. The recent

Communication entitled The European Union and the

United Nations: The Choice of Multilateralism ( 46 ) repre-

sentsa serious effort by the Commission to ensure theEU maintains and enhances its standing at interna-

tional fora. Commission officialshave visited severalof

the new Member States to inform national administra-

tions, private operators, civil society and NGOs on EC

co-operation policy and activities: Slovenia, Slovakia,

Hungary, the Czech Republic and Poland in 2003, with

visitsto the other acceding countries planned for 2004.

2 | 5 Co-op

other

2.5.1. Partnerthe UN

In the context of t

effective partnersh

fields of Developme

Commission under

fact-finding exercisidentify the most a

strategic partnersh

affairs. Co-operatio

projects, dependin

ad hoc basis.

Altogether ten pote

in February 2003. T

UNHCR, UNCTAD, U

Commission also content, establishm

gic partnerships.

Considerable effort

with the UN partner

partnerships. The

prepare all partne

phased approach.

to include the ILO aspring 2004. These

scope, objectives, m

framework for each

A new Financial

Agreement (FAFA) w

the Commission an

Agreementallows b

conclude specificag

individual programalso been signed w

(October 23) and

UNESCO in Februar

The dialogue and



2.5.2. Scaling up collaboration with the

International Financial Institutions

Collaboration between the European Community and

the World Bank (WB) Group and the International

Monetary Fund (IMF) continued to gain importance in

2003. This was reflected in, among other things, an

increasing number of missions on both sides,

extending to more and more regions of the world; a

joint communication to the staff of the two organisa-

tions by the Bank’s Vice President for Africa and DG

Development’s Director-General on how to work

together to align budget support to national PRSP

processes; and a steep increase in the EC’s contribu-

tions to World Bank Trust Funds.

A close relationship is essential with the IMF since

staying on track with IMF macro-economic reform

programmes is usually a core condition for disburse-

ments under the Community’s budget support. In

January a meeting was held with the Africa DirectorateManagement of the Fund to compare policy priorities

and country-specific challenges in African countries.

A regular exchange of forecasts was established, and

a further outcome of the meeting wasa training course

on IMF modelling provided by the Fund’s Training

Institute: this was held for Commission officials in

Brussels for the first time in September 2003, and will

be repeated on an annual basis.

In continuation of established practice, the annual

high-level Poverty Reduction Strategy Paper (PRSP)

consultations were held with the World Bank and IMF

in Brussels in April 2003. In order to identify bottle-

necks impeding better collaboration, and to improve

joint efforts on PRSP support, a two-day workshop for

Bank and Commission teams from five African coun-

tries, as well as sector experts and management, was

held in Limelette outside Brussels, also in the spring.

This workshop concluded with an ambitious actionplan and led to joint guidelines for Bank and EC staff

on how to collaborate in support of country-owned

PRSPs.

Thematic collaboration continued in particular in the

2.5.3. Non-state actors

in development

In 2003, the Commission presented to and

with the other EU institutions its Nove

Communication on non-state actors’ partici

development policy ( 48 ). Involving non-sta

increasingly part of the European Commissi

wayof working. This approach is stronglysu

the Council, the European Parliament and th

Economic and Social Committee.

The shared priority is to strengthen non-sta

developing countries. European non-state

enormous experience as well as consolida

ships with developing countries, so th

expected to play a key role in achieving th

objective. The Commission has continued

dialogue with European economic and soc

with non-governmental organisations and

society actors. One of the key partnersstrategy for non-state actors is the Euro

Confederation for relief and development –

created on 30 January 2003.

Based on an opinion of the Member Stat

establishing an exchange mechanism, the C

initiated a closer dialogue between all

holders of the NGO co-financing budget l

the European development NGOs repre

CONCORD, and EU Member States. This w

in 2003 by informal brainstorming session

expert meetings on specific topics, and w

mented by productive meetings hosted

Presidency with the participation of the C

the Member States and representatives of c

Commissioner Nielson extended this dialo

2003 to members of the European Parlia

getary and Development Commissions.

The Italian Presidency, together with the na

form of Italian NGOs, hosted a seminar on

of NGO co-financing” in Palermo on 27-

2003, an important milestone in the proce

in 2002. This aimed atredefining a strategy



Under the auspices of the Greek Presidency, the

Athens conference of 5-6 May 2003 provided an oppor-tunity for an in-depth discussion on the respective roles

and potential of the EU and civil society in reaching

the Millennium Development Goals. Northern and

Southern non-state actors produced a very relevant

joint statement as well as a set of recommendations

addressed to the European GeneralAffairs and External

Relations Council (GAERC) and to civil society itself.

Recommendations focused on consultation processes

and mechanisms, coherence, policy, procedures and fund-

ing, as well as on strengthening partnerships between

Northern and Southern civil society organisations.

Consultation with non-state actors has improved with

partner countries as governments have become more

aware of the need to involve civil society. Substantial

funding is being set aside for non-state actor capacity-

building in Country Strategy Papers, particularly in ACP

countries. It is an evolving process, still at an early

stage. Mid-Term Reviews of CountryStrategy Papers, totake place in 2004 for ACP countries, will provide an

opportunity to reinforce the dialogue with civil society

or begin it where it has not yet been initiated.

The GAERC of 19-20 May 2003 encouraged the

Commission and the Member States to adopt a frame-

work of principles and practices for civil society

consultation and participation in dialogue, on the basis

of the criteria proposed in the Communication, particu-

larly the formulation of development priorities and

assessment of the development process.

The Commission prepared guidelines for its Dele-

gations in all developing countries on civil society

involvement in development dialogues and consulta-

tions. The input of civil society was sought in drafting

the guidelines, which also take into account Member

States’ views and suggestions, as expressed in the

NGO Co-financing Committee in November 2003. Thedocument recognises that a flexible and differentiated

approach to the involvement of non-state actors in the

development process should be used, respecting the

conditions in different countries and regions. The aim

is to develop a practical approach to enhance civil

While recognising

the May 2003 GAparticipatory appro

mentation of EC

countries. The Com

put the Cotonou A

actors into effect. E

given guidelines o

with the implemen

EDF rules and reg

applicable to non-

EDF procedures, h

general interest an

and improved in li

2.5.4. The staPovertyand Se

Most low-income

Poverty Reduction 2003 or produced

still engaged in the

is already at least

mentation of a PRS

with Africa (SPA) ta

the Commission an

2003 of progress a

with PRSPs, in term

highlighted some k

partnerships.

Perhaps the forem

to reduce the burde

missions whose ti

country’s planning

need to have a cle

them when they pl

wish to base their

with poverty reducReporton the PRSP.

capacity, then the

progresswith secto

policy developmen

AnnualReview. The



There has so far been less progress in integrating the

timetables of sector processes within the PRSP cycle.Indeed, securing effective joint working in sector

processes is itself a considerable challenge. However,

drawing on the lessons from the SPA survey, the

Commission is urging to have these more effectively

integrated into the PRSP process in all regions. In

Nicaragua, for example, an education sectoral budget

support operation was approved in 2003 that explicitly

draws its outcome indicators from the PRSP and aims

to develop implementation mechanisms that fully

reflect the need to integrate sectoral processes, such

as joint donor reviews, into the PRSP timetable.

2 | 6 Mainstreaming issu

The development policy statement establi

certain number of cross-cutting issues are

streamed into EC development co-operation

of Human Rights and strengthening of

gender sensitivity, children’s rights, conflict

and crisismanagement, environment, good

and institution/capacity-building. Mainstrea

themes implies making them an integral p

the strategic planning and the implement

external assistance.

2.6.1. The environmentand tropical forests

In May 2003 the Commission hosted the 4t

the Poverty and Environment Partnership

while two workshops on poverty-mapping

and environment indicators were organised

Following earlier publications in the contextnership on “Linking Poverty Reduction and E

tal Management” and “Poverty and Climat

partners focused efforts in 2003 on dr

papers on environment and health, and en

fiscal reform.

These joint papers seek in general to det

links between poverty reduction and vario

mental issues, and also to demonstrate tha

equitable management of the environmen

to achieving the Millennium Development

particular to eradicating extreme poverty a

reducing child mortality, combating majo

and ensuring sustainable development.

also present measures that can be taken

national and the international level to red

and enhance environmental quality. T

streaming” message has been broadca

various channels, in particular by active pin international negotiations, the orga

consultation and co-ordination meetings,

into ECdraft legislation that hasan impact

ronment in developing countries.



The Commission adopted a Communication on Climate

change in the context of development co-operation( 49 )in March 2003. The Communication includes a strategy

and an action plan which proposes measures to be

taken by the Commission, the Member States, partner

countries and other stakeholders to enhance the

resilience of partner countries in the face of climate

change and variability. The Council endorsed the

strategy but requested that the action plan be further

developed( 50 ).

A review of the EC Biodiversity Strategy was initiated,

including a biodiversity action plan for economic and

development co-operation. This review will be com-

pleted in 2004.

The evaluation of the budget line for Environment and

Forests in developing countries was launched in 2003

and should be finalised by October 2004. Meanwhile

the Commission has adopted a decision for an exten-

sion into 2004 of the guidelines for funding activitiesin 2002 and 2003 from the budget line.

The Annual Work Programme (AWP) for 2003 devotes

credits for the Environment and Forests budget line,

totalling €40.7 million for the year 2003, to the financ-

ing of projects resulting from a call for proposals

(€30.8 million), targeted projects (€7.9 million) and a

service contract for the integration of environmental

issues into development co-operation policy (€2 million).

A call for proposals under this budget line was

launched in November 2003 and projects were selected

for financing in the first half of 2004.

41 new projects representing a Community contribution

of €48.6 million, were initiated in 2003. Funding is

being allocated as follows: 16 projects in ACP countries

(32.4% of Community funds), nine projects in Asia

(16.18%), eight projects in Latin America (30%) and

eight covering various regions (18%).

2.6.2. Gender

Year 2003 was mark

external initiatives

States to raise awa

implementing gend

to putting a strateg

and seminars on

gender integration

sound policies, go

approaches remai

with gender policya

strategies such a

Papers.

The Commission h

supported a series

situation for the b

formulation and im

of everyone, the rig

on gender appliesdisaggregated data

programme formul

tional mechanisms

of gender in all poli

ordinating structur

have been establis

A brochure has

Commission’s pol

illustrating current

best practices: it h

the Commission an

efforts aimed at

countries.

As a catalyst and

strategy of gende

programmes, the C

July 2003 for a Parliament and the

in development

proposed budget o

and Parliament we

Regulation makes



The AnnualWorkProgramme (AWP) for 2003 relating to

the integration of the gender dimension into develop-ment co-operation devotes the credits in the ‘Gender’

budget line for 2003 (€2.5 million) to the financing of

projects aimed at reducing gender inequalities in the

fields of education and political decision-making.

Grants will be made through a call for proposals

published in December 2003.

A joint management contract with the United Nations

Research Institute for Social Development (UNRISD)

was signed in December 2003 for a sum of €0.95million

to implement the “Policy Report on Gender and

Development: An UNRISD contribution to Beijing +10”

project. UNRISD is running a research programme into

the gender equality aspect of development. This report

will provide a closer analysis of the issue in terms of

different development policies and will bring new

elements to the political debate over the gender and

development issue, as well as a contribution to the

debate over the Beijing Platform for Action.

A service contract for the “Manual (Methodological

Support) and Training on integration of the gender

dimension with development co-operation” was signed

in December 2003 with the International Training

Institute of the International Labour Organization in

Turin. On-line training courses, in addition to face-to-

face instruction, will meet the Community’s perma-

nent education needs, particularly those of the

Commission’s Delegations.

The recent thematic evaluation of the ‘Gender’ budget

line acknowledgesthat the Union has a solid and clear

legal framework and instruments, and that these

instruments are also compatible with international

commitments. At the same time, the evaluation also

makes a series of recommendations, including the

following:

• formulate and clearly publicise the objectives

relating to gender equality;

• enhance the place of gender integration in current

procedures;

• reinforce understanding through training activities

2.6.3. Human Rights

and democracy issues

Efforts to mainstream Human Rights and de

EC policy and funding have intensified in 20

developments in the dialogue with third

training of Commission officials and exch

other EU institutions, EU Member States, in

organisations and civil society. Over 100 n

Rights projects were selected and approve

European Initiative for Democracy and Hu

(EIDHR) to a value of more than €100 milli

The Commission Communication on Reinvig

actions on Human Rights and democrati

Mediterranean partners ( 51 ) constitutes a m

bution to efforts to mainstream Human Ri

the first time the EU’s global Human Rights

been specifically applied to a regional c

Communication sets out ten concrete re

tions to upgrade knowledge and expertise, dialogue between the EU and its Mediterr

ners, and enhance co-operation on Hum

issues, including through the developme

National Action Plans on Human Rights and

with those partners willing to engage in su

cise. The Communication has been warmly

by the Council, which in early December 20

specific conclusions on this document. M

agreed to set up a specific sub-committee

Rights and democratisation issues

Association Agreement with the EU, w

partners are actively considering this poss

The European Initiative for Democrand Human Rights (EIDHR)

Substantial improvements have been made

few years in elaborating and implementi

on Human Rights and democracy, leadingmore focused and results-oriented app

Commission adopted a Programming Do

2002-2004 elaborating the key areas w

should concentrate resources, under the

the four priorities of the May 2001 Commu



Enhanced dialogue with third countries on

Human Rights and democracy issues

In addition to raising Human Rights in a wide range of

contacts with third countries, and an active contribu-

tion to the development of the EU Human Rights

dialogues with China and Iran, the Commission has

established a pioneering Joint Commission Sub-group

on Governance and Human Rights under the Co-oper-

ation Agreement with Bangladesh, the first time that

such a mechanism has been introduced in this context.

The sub-group provides an opportunity for in-depth

exchanges on Human Rights issues between EU and

Bangladeshi officials. Its first meeting took place in

Dhaka and addressed the death penalty, the judicial

system, support to electoral processesand the creation

of a Human Rights Commission. The possibility of

providing further support for Human Rights projects

was also explored. Both parties recognise the useful-

ness of the dialogue and have agreed to continue it on

a regular basis. The possibility of engaging in a similar exercise with other third countries is under considera-

tion, and agreement has been reached in principle with

Vietnam and Morocco.

Exchange with EU institutionsand civil society

Commission officials have regularly participated in

meetings of the European Parliamenton Human Rights

issues, and have provided detailed oral and written

responses to the Parliament’sAnnual Reporton Human

Rights in the World, as well as to a wide range of

concerns including torture, rights of the child, elections

and the death penalty.

Improved use was made of the Human Rights and

Democracy Committee, which is chaired by the

Commission with the participation of EU Member

States. In addition to regular consideration of program-ming and work plans for the EIDHR, the Committee

has exchanged views on the EIDHR’s approach to EU

Human Rights priorities, such as the balance of funding

accorded to the prevention of torture and rehabilitation

of torture victims, the effectiveness of mainstreaming

major NGOs, and i

Rights, held in Romexamined the issu

tional law.

Launch of trainiand democracy

Training of EC offic

mainstreaming of H

levels of training w

Human Rights tra

Human Rights tr

geographical desk

specialised trainin

requiring expert k

courses on Electio

Brussels for part

Directorates-Gener

EIDHR activities

Although the call

cratisation, Good G

launched in 2002,

€40 million were

targeting the EIDH

projectswere defer

Fighting impunity a

these, amounting

with the 2003 budg

selected from th

Promoting Women

(Morocco, Algeria a

raising, Strengthen

Legal and Political

funding to torture

was launched in A

Micro-projects

The micro-project s

the EIDHR strategy

instrument in the s

allowing for the st



Election Observation and Assistance

The Commission has continued to support election

processes through the deployment of EU Election

Observation Missions (EUEOM). In 2003, the

Commission organised five EUEOMs worth just under

€9 million in Mozambique, Rwanda (three elections),

Guatemala, Nigeria (three elections) and Cambodia,

deploying a total number of 401 observers. Funds of

€5 million were committed for the 2004 EUEOM to

Indonesia. Additionally, within the NEEDS project, the

Commission continued to support the training of EU

election observers and local observersgroups through

regional seminars (for Europe in Zagreb and for Africa

in Nairobi). A Voter Education project in Georgia was

approved for an EU contribution of €350 000. The

Commission also adopted in 2003 a project to, inter

alia, strengthen the African Union Commission’s insti-

tutional capacity in the field of election observation.

Action in International Fora

The Commission played an active role in EU participa-

tion at the UN Commission on Human Rights (CHR) in

March-April 2003 and at the UN General Assembly

Third Committee in October-November, including

through input into country and thematic resolutions

and the delivery of statements on behalf of the

European Community.

2.6.4. Conflict preventionand rapid response to crisis

Conflict prevention is primarily an approach required in

all external assistance programmes where a conflict-

sensitive reading of the intervention is essential. In

some cases, specific interventions with the sole

purpose of ensuring the alleviation of conflict are

needed and supported. More specific information on

conflict prevention is provided in the feature article(chapter 5).

The Rapid Reaction Mechanism (RRM), established in

2001 ( 54 ), allows the European Community to respond

in a timely manner to the needs of countries under-

Programmes aimed at the promotion of pol

isation were launched in Georgia, Iraq, the Republic of Congo, Congo Brazzaville, C

Sri Lanka and Burundi. The EC was able to

diately upon the appointment of the n

Representative for Iraq of the UN Secreta

A Decision taken on 23 December 2003 m

with a contribution of €8 million, the first d

into the International Reconstruction Fund

Iraq managed by the UN and the World Bank

supportwasgiven in the form of €2 million

assistance by UNDP, in co-ordination with t

help enhance the transparency, credibility

macy of the Georgian Presidential E

4 January and the subsequentparliamenta

Policy Advice and Mediation has included

peace talks in Burundi, Liberia and Côte d’Iv

isation measures in Bosnia (the Mostar C

and Former Yugoslav Republic of Macedon

(advisors to the Deputy Prime Minister implementation of the Ohrid Agreement),

counter-terrorism assistance in Indonesi

Philippines.

In terms of evaluating potential Communi

to a crisis, during 2003 the RRM financed

Member States counter-terrorism assessm

to the ASEAN group of countries, conflict

assessments in the Western Highlands of V

in Bolivia, and a feasibility study on the de

of a network of EC professional volunteers

priate skills for crisis management operati



3 | Evaluationand monitoring



3 | 1

Evaluation: Review of the 2003

Work Programme

3 | 2

Outlook on the 2004

Evaluation Programme

3 | 3

Project Results:

Results-Oriented Monitoring



3 | 1 Evaluation:

Review of the 2003 Work Programme

3.1.1. Organisationof the evaluation function

The annual work programme of the Evaluation Unit in

the EuropeAid Co-operation Office reflects the require-

mentsof the Directorates-Generalfor Development and

for External Relations, as well as EuropeAid itself. The

programme focuses on geographical and sectoral

programmes and policies, as well as on Regulations in

the areas of external co-operation and development.

Evaluations of single projects and initiatives, which

fall under the responsibility of Commission Delegations

in partner countries or under operational services in

EuropeAid, are not included in the Evaluation Unit’s

work programme and do not appear in this chapter.

In late 2002, the Evaluation Unit launched a major exer-cise on methodology aimed at encouraging better and

more consistent evaluation of programmes and

sectors. This methodological work is planned to last for

three years.

3.1.2. Key evaluation findings

Findings from the studies completed in 2003 confirm

the main issuesidentified in previous years: in the first

instance clearly defined and realistic objectives and

common criteria for success, followed by sensitivity to

changing circumstances and to enhancing partner

organisation potential. All options should be consid-

ered, including alternative forms of approach,

appropriate instruments and conditions for assis-

tance, and preferably fast-working and simple

administrative and operational management tools.

3.1.2.1. Country Strategy EvaluationsMorocco: the evaluation confirms the high relevance of

the strategy put in place since 2000: impact was posi-

tive, though not as evident as hoped for, and the

Commission's role in donor co-ordination was effective.

The objectivesof the present strategy should be priori-

Malawi: many initiatives delivered the plan

but much of the expected impact failed toin a national context where Government's p

commitments frequently remain unimple

ignored. Continued co-operation along the

current strategy is not advisable and good

should be the overarching theme of t

Strategy Paper.

Bangladesh: even though the present st

significant improvement on itspredecesso

still weaknesses. The relationship between

the Governmentof Bangladesh is unsatisfac

of democracy, Human Rights and corr

causing concern, and the current strate

address these issues appropriately. The gr

of interventions in the keysectors of health

food security and rural development we

focused but still had a poor impact. A rev

EC strategy and ways to improve project m

are recommended.

3.1.2.2. Sectoral EvaluationsIntegration of Gender: the evaluation s

despite some good examples of the tr

gender as a cross-cutting issue, approac

varied and not always consistent with gend

development co-operation. Discontinuous

cient staffing of gender desks, as well a

financial resources, have been major con

the effectiveness, efficiency and susta

initiatives.

Economic co-operation with Mediterranea

relevance was high and overall effectiven

ably good, though hampered by the lack

policies addressing the main weakness

nomies. Past management featured ser

ciencies which resulted in implementation

interruptions. Progressis being made towarsustainability. The report recommend

Commission assist partner countries in

their strengths and weaknesses in the fie

and economic development. Several recom

have been taken up, such as deconce



3.1.3. Lessons learned

3.1.3.1. Country Strategy Evaluations –

general experienceIn general, the evaluations indicate that the adoption

of the standard frameworkfor Country Strategy Papers,

and the resulting structured programming exercise,

have brought an improvement in the relevance of EC

strategies and programmes. The dialogue with partner

countries, including civil society, has improved and

the supply-driven approach is giving way to a more

concerted one. Sectoral programmes are gradually

replacing the project approach. Examples of the right

strategic approach are easily found in partner countries

where governance is good or improving. However, the

evaluations so far show the Commission still has diffi-

culty in analysing the implications of poor governance

on response strategy, and on programme and project

design and implementation.

Achievement of results has been mixed. The expectedresults and impacts cited in programming documents

are often too ambitious. An over-optimistic assessment

of partner country capacity and willingness to imple-

ment projects and programmes is common at design

stage. Implementation is slowed down by lengthy

administrative procedures, and overall management is

hampered by limited use of proper reporting, input/

output monitoring systems, and evaluations.

Co-ordination and complementarity with Member States

and other donors has improved since the adoption of

CountryStrategy Papersand the deconcentration process.

The recommendation is to focus strategies more

clearly: in a number of countries a core theme can be

identified. More attention needs to be paid to analysis

of the localsituation in order to make realistic assump-

tions, in particular on the definition of objectives.

Implementation should take full advantage of thedeconcentration process, which should lead to leaner

procedures and better information management.

3.1.3.2. Sectoral Evaluations –general evaluation

Rehabilitation: the

policy on the reduand to place rehab

the Commission’s

attempt to reduce v

and effectiveness o

3.1.3.3. Joint EvaThe Maastricht

Complementarity

following a semina

The main thrust wi

and Complementa

the other and 2) to

and, on that basis

each of the hypoth

A joint evaluation o

been launched u

Development Assi

luation is designeagencies and partn

with the overall ro

than with the spec

or agency's funds.

and focused on c

addressing joint d

level.

3.1.4. Other ain relat

3.1.4.1. MethodoImproving the eva

Strategy Evaluation

The approach cons

nents: Structuring

Analysis/Judgemen

The evaluation ofprogramme is ba

Questions. A logic

and programming

between them, he

EC programmes are



In addition to reporting on specific judgementsarising

from the Evaluation Questions, the evaluators presentan overall assessment of the EC co-operation

programmes and strategies in the country concerned.

At the conclusion of each Country or Regional Strategy

Evaluation, but before publication of the report, a

seminar is held in the country concerned. The aim of

the seminar is to present the evaluation to stake-

holders, emphasising findings and recommendations.

This approach has a number of advantages: the oppor-

tunity to verify the factual basis; feedback onconclusions and recommendations from important

stakeholders; and an increased sense of ‘ownership’

of the evaluation. This contributes to the quality of

Country Strategy Evaluations and heightens their

impact.

3.1.4.2. Dissemination and feedback

The Evaluation Unit has set guidelines to ensure a

common approach and reinforce the quality of dissem-ination and feedback ( 56 ). These guidelines, which

recapitulate the current practices of the Evaluation Unit

are also a response to the Commission evaluation

standard which states that “appropriate feedback

mechanisms shall be provided so that all types of

evaluation results are transmitted to all persons

responsible for decision making”. The guidelines are

for internal use but are also published on the Internet.

3.1.4.3. Priorities for action highlightedby the 2003 evaluations

Evaluation studies in 2003 identified improvements

achieved through better programming. Further improve-

ments are foreseen through sustained efforts in the

following areas:

• Clearer focusing of strategies and formulation of a

limited number of clear and realistic objectives.

• Within the framework of long-term planning, atailored and faster response to major

developments in the situation of the partner

country and other important parameters.

• Improved analysis of the implications of poor or

deteriorating governance on response strategy,

3 | 2 Outlook on the 2004

Evaluation Programme15 evaluations are ongoing at the end of 20

be completed during 2004:

Four Country Strategy Evaluations on

Ethiopia, Lesotho and Egypt.

Five evaluations on regional issues

Mercosur, CARDS (Western Balkans), the

Agency for Reconstruction, Caribbean (former Soviet Union countries).

Six sectoral evaluations:

• transport;

• trade-related assistance;

• food aid and food security;

• environment and tropical forests;

• private-sector development;

• thematic evaluation of population-and development-oriented programme

in EC external co-operation.

In addition to the ongoing work on meth

new evaluations will be launched:

Five Country Strategy Evaluations:

• Three countries from ACP areas: Ghana

and Benin.

• Two countries from RELEX areas: ArmenTimor Leste.

Four evaluations of regional strategies:

• Two in the ACP region: Central African R

Pacific Region.

• The MEDA region in application of artic

Regulation (EC) 2698/2000 (MEDA II).

• Latin American region.

Four Thematic/Sector-wide evaluations:

On the basis of the approved multi-annua

work programme 2002-06 (as modified by

programmes 2002 and 2003), and taking pr

ities into account, the following evaluati



3 | 3 Project Results:

Results-Oriented MonitoringThe Commission monitors progress of its external co-

operation at all levels:

• INPUT: A constant update of the financial flows

(commitments and payments) is the basis of moni-

toring on the input level (CRIS).

• ACTIVITIES/OUTPUTS: Project/programme execu-

tion is monitored constantly by the partners and the

Commission’s Delegations in third countries. Thelatter report at least every four months on project

activities and milestones to the CRIS central data-

base via a dedicated ‘project description and

monitoring window’.

• PROGRESS and OUTCOME: The internal system has

an external complement with the Results-Oriented

Monitoring (ROM) ( 57 ) system which allows a rapid

appreciation of project and programme progress

towards results, as well as wider implications, andprovides the Commission with independent advice

on its project portfolio.

• IMPACT: Common progress towards the achieve-

ment of MDGs is jointly monitored by partners and

donors, with the help of the agreed indicators. In

addition the Commission has agreed with other

donors to monitor certain sector targets and indi-

cators to have a more precise and up-to-date view

of progress.

The monitoring process is completed by the regular

evaluation of projects, programmes, sectors and strate-

gies, as well as by other routine reporting mechanisms.

3.3.1. Achieve

In 2003 the Results

ran for the second

tion phase 2002-0

countries in all reg

co-operation activi

grammes were mon

Reports ( 59 ) were p

Overall, the results

icant majority ofactually registered

tiveness) as well a

Projects and prog

and on average

progressing “accor

Also in 2003 a s

performance of op2002 up to 2.67 i

regions, however, m

not possible to ‘re-

on average 39.5 %

were reviewed in 2

A quantitative over

Further informatio

regional chapters.

( 57 )For more technical information

on the system please refer tothe two previous annual reports.

( 58 )Including nine countries in

the EU, location of head offices

of regional projects.

( 59 )Monitoring of regional

programmes and projectsentails visits to several

components, resulting inthe production of more than

one report for a single programme or project.

( 60 )Numbers in brackets refer to

additional services for the last activities under the previous

TACIS input-activity monitoring system and to special reports in

TACIS / CARDS regions.



3.3.2. Insights in the second year

of the consolidation phase

A large majority of operations record good effective-

ness, i.e. benefits actually registered with the people

concerned. The scores must be treated with care, but

both impact and sustainability have improved most of

all, although fractionally with 3-4%. Efficiency remains

overall the weakest aspect. It is anticipated that the

de-concentration process will lead to faster implemen-

tation and better management. On average the opera-

tions assessed, however, were going ‘to plan’ or exceeding expectations.

3.3.2.1. Analysis by monitoring criteriaThe five main criteria are relevance, efficiency, effec-

tiveness, impact and sustainability. The average

ratings( 61 ) for the main criteria by region are presented

in table 2, below.

Each of the five main monitoring criteria is thoroughlydefined and then broken down into sub-criteria which

the monitor has to consider carefully before giving a

rating ( 64 ).

For purposes of qualitative analyses, use ismade of the

textual explanations in the monitoring report. Whereas

the size of the sample increaseseveryyear, its present

size may still make it difficult to draw conclusions.

Therefore results must be considered with care and

should not be taken out of context.

Operations prove to be relevant to the n

people concerned. The original design,acceptable quality, has sometimes been c

relatively weakaspect: prolonged lead time

start-up can render the design no longe

Occasionally the original design is overa

terms of what the project can achieve. Time

of design and the abilityto adapt a project

circumstances are the key to ultimate succ

Efficiency: although ‘on target’ (the target,

‘according to plan’), this shows the weakeance. Late delivery of input is most often

problem. More realistic deadlines woul

project start-up.

Effectiveness: measuring the actual benefit

with the people concerned, this show

performance overall, particularly in Asia a

also in the other regions. This finding

projects will in the end make a real aimprovement in people’s lives. An importa

tion, recorded consistently in all regions, i

operationsproduce additionalbenefits. Ini

play an important catalytic role in trigg

unforeseen improvements. In Latin Am

example, a high level of community em

local participation and organisation con

enhanced results.



Impact: project results are good across all regions,

except the Balkans. Many operations also produceother unplanned benefits. In the TACIS region, good

impact seems to depend on having good project part-

ners, while monitors have also noted that their absence

seems to affect impact and sustainability in the

Balkans. However the assessment on impact is given

early on in a project, and the final results and their

wider effects are difficult to judge at that point.

Sustainability: the financial aspects are clearly the

weakest element with scores around or below the targetof 2.5. Weak financial sustainability implies that there

is inadequate follow-up with local funding when

programmesterminate. It does not necessarily mean all

the benefits are lost, but the stream of benefits cannot

be continued at the same level. The environmental,

socio-cultural and technological aspects of sustain-

ability were found to be positive overall.

3.3.3. Results by sector

The Commission has defined six priority areas in its

co-operation.

See table 3

Trade and development: the two regionswith a sizeable

number of projects and budgets show a disparity in

performance: ACP has a relatively low scoring of 2.43,

while TACIS does better with an average of 2.77.Operations in the ACP region are relevant (2.61) and

effective (2.52) but remain below target for the other

criteria. Operations in this sector and region are impor-

tantbut will only produce significant results in the long

term. Inevitably external factors impact on trade devel-

opment and limit general conclusions. In the MED

region, although the financial envelope is important,

the sample (three projects) is too small and heteroge-

neous for general conclusions.

Regional Integratio

(2.84) and ACP regof regional program

well as some EU c

ance is balanced a

elements in this s

across all criteria

secondary unfores

Macro-economic S

this rates significan

region on almost aability (2.42) and,

This sector also sh

ance in the MED re

the financial aspec

ably weaker (2.58),

(with an overall sco

aspects) and also A

sustainability). This

culties taking ovedoesnot implythat

of benefits cannot

Transport: nearly 6

region. Overall per

(average 2.70) an

Overall performan

generally in the AC

sustainability, but g

and impact. Monitorelated weaknesse

of maintenance su

Food security and

while overall perfo

‘according to plan’

The exception is t

rating of 2.86. Clo

jects responded q

( 65 )In principle regional

programmes are includedunder priority area

“regional integration”,but where the allocation to

a priority area was moreappropriate due to its specific

nature (e.g. a basket of loosely related sector activities

in one programme),allocation to this priority area

has taken place.



(several sub-criteria ranging from 2.89 to 3.25), had

important secondary effects (3.25), and were welladapted to the socio-cultural realities (3.11). The

weakest score at sub-criterion level went to the finan-

cial aspects of sustainability (2.61).

Overall scores on efficiency (2.44) and impact (2.52) (all

operations monitored) suggest that even short delays

in implementation can compromise higher-level bene-

fits. In addition, this sector is susceptible to droughts

and floods, market volatility etc, making a proper

assessment of potential risks absolutely vital.

Institutional capacity and good governance results

point to a relatively low efficiency of implementation

but high impact, as has been the case with ACP (2.31

against 2.60), TACIS (2.45 against 2.71) and Latin

America (2.62 against 3.05). Asia and MED return

equal scores on both (2.65 – 2.7 respectively), and only

the Balkans do slightly better on efficiency (2.60

against 2.52).

‘Other’: mainly micro-projectsof a multi-sector nature.

This records the lowest rating on relevance, yet remains

high for all other criteria, particularly effectiveness and

impact. The diverse nature of micro-projects makes

good design – an important element of relevance – a

challenge, while the smaller budgets encourage more

efficient implementation.

3.3.4. Conclusions

Overall the analysisof reports from the resu

monitoring produced positive results and c

pointers to further improvement. The C

should pursue its efforts in developing th

measures:

• during project or programme preparat

a limited and coherent set of clear

allowing for a flexible and adaptable app

integrated into an overall strategy;

• the ongoing deconcentration process is

foster flexible, simple and rapid ad

mechanismsto enhance efficiencyand ef

• foster the systematic use of manageme

multi-annual programming of activities

permit timely updating of design and

approach;

• integration exit strategies, notably o

aspects, from the design stage right

project preparation and execution.



4 | Th ti iti



4 | The activities



4 | 1 Introduction

In the following pages, the reader can find a short

summary of EC co-operation activitiesin the sixregions:

Western Balkans, Eastern Europe and Central Asia,

Mediterranean countries, Africa, Caribbean and Pacific

(ACP) countries and Overseas Countries and Territories

(OCTs), Asia and Latin America.

Each of these regions has the same structure, so a hori-

zontal reading is possible. A general introduction on

the region is followed by the programming activitiesand developments in 2003. Co-operation activities are

reported according to the actual priorities in each

region, underlining the results obtained from imple-

mentation of the principal programmes and projects.

Therefore, the picture is clear even if the accent is put

on different kinds of activities, reflecting the realities

of EC implementation during the reporting period. Co-

operation with other donors, including Member States,

is an important feature of each region. The variationsin information between regions mirrors the real differ-

ences in the degree of collaboration between the EC,

its Member States and international organisations, as

well as the variations in data available from Member

States about each country.

Some figures are given to illustrate the contentsof this

chapter but there is no overall information on the finan-

cial transactions. The reader may find exhaustive

financial information in chapter 7 (Financial Tables),where the general tables include 2003 disbursements,

in line with DAC categories. Regional activity tables

include all commitments made during the period

covered in terms of “geographical” budget lines as well

as “thematic” or horizontal ones.

4 | 2 The Balkans

4.2.1. Introduction

The Western Balkans achieved another y

economic performance in 2003, with exp

growth of around 4%, slightly below 20

Inflation continued to decline and is expec

been below 5% for the first time since the

tion of the former Yugoslavia in the early ’

finances are expected to show a slight im

maintaining the positive trend of fiscal cosince 2000.

The general government deficit in the

expected to reach around 4% of GDP o

External imbalances remain fairly large

Western Balkan countries. For the whole

2003 current account deficit is expected

around 8% of GDP, whereas the trade

expected to reach 28% of GDP. Although thof the region made some steps forward in

of market-oriented reforms and in appr

standards, further progress is still needed

Croatia was recently accepted into

Membership Action Plan (MAP) and has be

to implement the Stabilisation and A

Agreement (SAA) which it signed with the E

though it had not yet been ratified at the

reporting period: elections on 23 Noveresulted in the centre right HDZ party leadi

government. The complex government st

Bosnia and Herzegovina are not shared b

states in the Balkans and pose a unique c

the EC assistance process, particularly pro

at strengthening the institutions. On 12 M

Dr Zoran Djindjic, prime minister of Serbia,

sinated in Belgrade. Parliamentaryelection

on 28 December 2003. Until a new goverformed, Serbia faced constitutional and po

culties, with neither a president nor a gove

4 2 2 Evolution of EU co operation t it 8 D



4.2.2. Evolution of EU co-operation

The strategic objective of Community actions in the

Western Balkans region remains support for the

Stabilisation and Association Process (SAp), notably

through institution-building and closer alignment with

the acquis communautaire. In Thessaloniki, the EU

confirmed the SAp as the overall framework for the

region all the way to future accession of the countries.

Some major milestones were achieved in 2003:

• On 20 February 2003, the President Mr Stjepan

Mesic and the Prime Minister Mr Ivica Racan of the

Republic of Croatia presented the application of

Croatia for accession to the European Union. The

General Affairs and External Relations Council

requested the Commission to prepare an opinion on

the Croatian application on 14 April 2003.

• T he Commission approved and published on

26 March 2003 its second “Stabilisation and

Association Process (SAp) report”, providing an

assessment of the general political and economic

situation in the five countries of the Western

Balkans.

• The publication of the Commission Communication

“The Western Balkans and European Integration”

on 25 May 2003 substantially contributed to a

political debate on major future orientations of

Community action in the region and on the synergy

of assistance with other Community policies.• The Thessaloniki Agenda, endorsed at the Summit

in June 2003, invited the Commission to bring

forward and implement a series of initiatives fore-

seen in the enriched SAp. Commission services

started preparatory workimmediately and follow-up

actions were well on track at end-2003.

The most important initiative is the European

Partnerships. Inspired by the Accession Partnerships,

they will identify priorities for action in supporting

efforts to move closer to the European Union and serve

as a checklist against which to measure progress. The

Commission adopted a proposal for a Framework

Regulation to that end on 13 November 2003.

to it – on 8 Dece

launched a study d

tiveness of Commu

devise initiatives t

competitiveness of

results, submitted

further guidance o

4.2.3. Progra

Following the adop

and the correspongrammes in 2001,

Assistance for R

Stabilisation) ha

different priority se

(ii) administrative

and social develop

ronment and natu

home affairs.

While this trend ha

2003 confirmed a fu

from reconstructio

other sectors mor

agenda, i.e. admi

building, econom

justice and home a

An assessment pe

sion that the Countrelevant for the five

fore did not need m

Strategy for the

Association Proces

tion, as stated in t

The Communicatio

with these neighbo

and that co-operat

flexible to address

On the basis of t

further to a propos

tary authority, add

4 2 4 Implementation Agency the courts in Kosovo are developin



4.2.4. Implementation

Project implementation in Croatia, Bosnia and

Herzegovina and Albania is handled through the

Commission’s Delegations in these countries while, in

Serbia, Montenegro, Kosovo and FYR of Macedonia,

implementation of EU assistance is carried out by the

European Agency for Reconstruction (EAR).

In budgetary terms, commitments ( 66 ) for the Western

Balkans in 2003 totalled €620 million while effective

disbursements amounted to €425 million. Comparedto 2002 commitments were marginally lower (-5.2 %)

but payments were down substantially (-31.1 %). The

latter figure can be explained mainly by backlogs in

programmes for Croatia and Albania, as well as in the

regional programmes. These figures include the EU’s

contribution to the Office of the High Representative in

Bosnia and Herzegovina and to UNMIK, as well as the

running costs of the EAR.

4.2.4.1. Supporting administrative

and institution capacity-building 2003 saw a shift in the focus of Community assistance

from reconstruction and democratic stabilisation to

administrative and institution capacity-building,

economic and social development, and justice and

home affairs. The focus on institutions and capacity

development is particularly noticeable in Croatia,

where the Commission has made substantial efforts to

support the EU integration process in view of thecountry’s accession request. Similarly in FYROM there

is extensive technical assistance to approximate

nationallegislation to the EU’sacquiscommunautaire.

EC support– which ismore and more focused on public

administration reform, including revising, drafting and

amending the legal administrative framework – isalso

prominent in Bosnia and Herzegovina, as in Serbia and

Montenegro.

Key initiatives are the overhaul of the blood transfusion

service, the creation of the National Medical Products

Agency, and support to the Ministry of Health for the

preparation and implementation of an EIB emergency

Agency, the courts in Kosovo are developin

IT-based case-tracking mechanism as par

EU-funded programme supporting the judic

rule of law. Most of the EC-funded work o

ment of court buildings and prisons was

2003.

4.2.4.2. Strengthening justiceand home affairs

EU projects in this sector have contribu

other things, to fostering judicial restru

reform, training in all aspects of border manwell as migration and asylum issues, and

the police forces, notably in Bosnia and He

In Montenegro training on border managem

as soon as a Memorandum of Understa

signed between the Ministries of Interior of

of Montenegro, ensuring co-operation and

tion of activities. Computerisation of the

Interior has started, as has the second pha

computerisation. Migration and asylum-rela

included a Joint Initiative for Montenegro, in

International Organisation for Migration. Ob

provide training to border officials in anti

The Judicial Training Centre has also started

activities under an EC grant.

In FYROM the European Agency for Rec

offered technical assistance on the develo

implementation of a NationalAction Plan foand Asylum. The Plan will consider the lega

and practical means for achieving a compre

better co-ordinated system of managing

migration. A national strategy for the creati

border police was finalised and new

supplied to help detect drug and weapons

operations. Progress was also made on a

computerise Ministry of Justice activities

the backlog of 500 000 unsolved cases.

4.2.4.3. Endorsing economic Priming the econo



4.2.4.3. Endorsing economic

and social developmentKey areas of activity included promoting sustainable

economic development – including support to ethnic

minorities through grants, advice, training and loan

assistance for micro-enterprises – and support to enter-

prise for the creation of jobs. In Serbia, for example, EU

assistance has injected some €25 million since 2001

to provide loans to small and medium-sized enter-

prises, creating over 2 000 jobs. Important initiatives

in 2003 included a pilot programme to retrain the

unemployed in the Sumadija region – this will eventu-ally lead to a national scheme of vocational training –

and support for Serbia’s export promotion agency. The

EU also created 5 000 temporary jobs in four under-

developed municipalities in southern Serbia aspart the

Agency’s Rapid Employment Programme, which was

launched in 2001 and ended in June 2003.

A project was launched in FYROM in October 2003 to

assist the SME Department of the Ministry of Economy

and develop an Agency for Entrepreneurship

Promotion. The first half of a €5.6 million EU payment

was injected into the revolving credit fund for SMEs

managed by the Macedonian Bank for Investment and

Development. The Bank will lend these funds onwards

to half a dozen other banking institutions, which in turn

will start lending out the money.

Priming the econo

promoting private

The war in Bosnia-H

a fragmented socie

Predominantly agri

essentially of sm

resources. Growth

40% (2002 figures)

the European Union

tive and far-reachi

and encourage priFund, it provides

support to localban

organisations. The

ments: an apartme

SMEs (companies

rural areas with les

has since been in

seven of the nine b

the biggest in the c

In Montenegro, in

the infrastructure,

and projects to en

mental protection

development of a

plan. There are als

coastal region, Montenegro: these

term investment s

Financial Institutio

a coastal water u

mainly to a lack of

ments, but positive

2003 continue to p

treatment for comm

park, is ongoing.

Finally, there is a g

beneficiarieswith t

legislation in res

Association Agreem

4.2.4.4. Post-conflict management customs, and internal control/audit. At



4.2.4.4. Post conflict management

This facility offers rapid delivery of assistance to

conflict-affected populations as wellas strategic advice

to decision-makers to give momentum to the recon-

ciliation and stabilisation process. In the case of FYR

of Macedonia, and to support the EU’s strategy of

defusing the political crisis of 2001, the Commission

adopted two financing decisions under the Rapid

Reaction Mechanism, accelerated implementation of

elements of the CARDS institutional reform, and set

aside additional funds under a CARDS ‘Emergency

Assistance Programme’. Specific objectives of the twoRMM actions included, among other things, recon-

structing homes damaged by the fighting in the Tetovo,

Skopska Crna Gora and other areas, restoring the elec-

tricity supply to the conflict-affected villages of Tetovo,

Aracinovo and areas of northern Skopje, securing

access to homes and key public buildings through

clearance of mines and unexploded ordnance, and

reinstating the rule of law.

4.2.5. Co-operation with Member Statesand other donors

Co-operation with Member States varied consider-

ably from one country to the other. In Bosnia and

Herzegovina co-ordination was intensive, with regular

meetings with Member States hosted by the

Commission Delegation, co-chairing of these meetings

with the beneficiary country and, since May 2003,

inclusion of accession country representatives. Co-ordi-nation in Croatia wascharacterised by a lively exchange

of information, but was restricted to projects that

Member States do not consider to be sensitive in view

of the potential for developing future business relations

with the country. In Albania, co-operation was limited

to meetings between the Delegation and Member

States roughly once every quarter; co-ordination with

other donors does exist but still requires considerable

development. Fortunately there isa general consensus

among most if not all donors that co-ordination should

be promoted more vigorously.

In Croatia, the EBRD was also associated with

65 projects: co-operation with CARDS was proposed

customs, and internal control/audit. At

Bank’s invitation, the sector manager for

at the Delegation became a member of an

committee supervising micro-grants for civ

Regular contact was also established in

environment and nature protection in orde

complementarity between CARDS projectsa

funded projects, in particular within Nature

and Integrated Coastal Zone Management.

Co-operation with the World Bank on regopment advanced significantly. After initial

of approaches regarding “revitalisation of w

areas”, co-ordination between the Bank

Delegation intensified: differences were

and the two donor programmes are now i

integrated.

In the countries covered by the European

Reconstruction (EAR), the Agency’soperatio

convened regular meetings with EU Me

representatives. Sector-related co-ordina

ties proceeded as normal at the Agency’s

centres. In Belgrade, co-ordination meeting

with the status of the 2003 annual programm

preliminary workon development of 2004 p

for Serbia and Montenegro at the Union an

levels. One meeting focused specifically

privatisation programme and covered th

made so far, the issues at stake, and therole of the EC/EAR and other donors.

In Kosovo, the energy sector was a regular

for discussion at co-ordination meetings

Macedonia, the Agency’s meetings with Me

focused on implementation of the ongoing

CARDSprogrammes and on early planning f

CARDS programme. The Agency continued

sions with the EBRD on possible co-financi

ments for elements of the 2004 programm

enterprise development and local self-gov

The European Investment Bank(EIB) has be

the countries of South-EastEurope for sever

4.2.6. Overview results-oriented 4.2.7. Conclus



4monitoring

In 2003 a total of 86 monitoring visits were made to

61 projects and regional programmes in three countries.

See table 4

Projects monitored represent full coverage in services

and grants. Projects smaller than €1 million and iden-

tified as problematic, of political sensitivity and/or

strategic importance supplement the sample.

See table 5

The CARDS operations are, with a score of 2.55, well

above the target “project according to plan” of 2.5.

There are indications pointing to problems in securing

consistent and stable support from sufficiently experi-

enced local project partners in the Balkans. This

performance is considerably better than that of the

previous year.

4 7perspe

Clearly, despite hav

a stable and prospe

integration with Eu

tion where the cond

and freedom that h

fifty years within th

the peoples of Sou

never doubted thei

common principleshistoric ties. The E

long-term investme

support continuing

economic and so

today.


programmes entails visits to several components, resulting

in more reports for a single

regional programme.

( 68 )In regional programmes in the

CARDS region, regionalintegration is not an objectiveand therefore the components

2003 Priority area Number Number

of reports ( 67 ) of projects

& programmes

1 Trade & development 7 5

2 Regional integration - -3 Macro-economic support & social sectors 4 3

4 Transport 6 4

5 Food security & rural development 8 6

6 Inst. capacity / good governance 61 43

Table 4 | Projects by area of co-operation

4 | 3 Eastern Europe 4.3.2. Evolution of EU co-operatio



and Central Asia

4.3.1. Introduction

In the Western NIS, the emphasis was clearly set by the

publication of the Wider Europe Communication in

March 2003, followed by the Communication on Paving

the way for a New Neighbourhood Instrument ( 69 ). The

Duma elections in December 2003 reinforced the

majority of the United Russia party in the Russian

parliament. In Ukraine, the campaign for the 2004 pres-identialelectionstook off. The situation in Belarus with

regard to democracy, freedom of speech and media,

and respect for Human Rights deteriorated further. In

Moldova, the EU intensified the dialogue in an effort to

make progress with respect to Transdnistria, under-

lining the importance of resolving this issue in the

context of the Neighbourhood Policy.

In the Southern Caucasus, there were important elec-

tions with contrasting outcomes in Azerbaijan and

Georgia. In Azerbaijan, there was a smooth transfer of

power to President Aliyev’s son, with elections success-

fully completed only a couple of months before the

death of the former President in December 2003. In

spite of critical comments from OSCE/ODIHR and

Council of Europe observerson the conduct of the elec-

tions in Azerbaijan and Armenia, the completion of the

electoral cycles in those countries in 2003 gave an

opportunity to both sides to make progress on thesettlement of the Nagorno Karabakh conflict. In

Georgia, the opposition contested the outcome of the

elections which took place in October. This resulted

ultimately in the “Rose Revolution” and a change of

government for the first time since 1995. The change of

government in Georgia gives new opportunities for

solving the South Ossetian and Abkhazian conflicts,

with potential for increased post-conflict activity.

In Central Asia, the situation remained largely

unchanged. Elections were held in Kazakhstan in June,

resulting in a governmentreshuffle. Progress wasmade

in Tajikistan with the EU initialling a Partnership and

Co-operation Agreement in December 2003. EU rela-

In 2003, the major achievements in EU-N

tion were agreements on dispute settle

Russia and the Multilateral Nuclear Env

Programme in the Russian Federation (M

Wider Europe Communication, the Commu

the New Neighbourhood Instrument , t

Northern Dimension Action Plan (2004-200

2003 Progress Report on the Implementa

Northern Dimension Action Plan.

With enlargement, co-operation across t

border of the EU is a key priority. A new S

Indicative Programme 2004-2006 for the T

Border Co-operation programme was a

November 2003. It sets out how this po

implemented on both sides of the eastern

the enlarged EU.

Otherwise, relations and dialogue with th

of the region progressed well. Intensive

took place on restructuring the political di

Russia, preparing the ground for the

Partnership Council launched at the May S

Ukraine and Moldova, the work of de

European Neighbourhood Policy action p

momentum. The Commission stepped u

support a solution of the status of Tran

Moldova and participated in renewed efforts

relations with Belarus based on a stapproach.

With enlargement, the EU will become a d

bour of Ukraine and Belarus, and its com

with Russia will be extended significantly. T

leading trade and economic partner of the r

the Eastern Europe Caucasus and Central A

region is an important source of energy su

EU. The need for EU support is increasing a

large and growing gaps in living standards b

enlarging EU and the EECCA region. The

mined to ensure that neighbouring count

fully from the new opportunities resulting fr

ment and to avoid the creation of new divi

The October European Council endorsed the Second 4.3.3.1. Cross-bo



Northern Dimension Action Plan, which had been ap-

proved by the General Affairs Council of 29 September

2003. Developed on the basis of a Commission

proposal ( 70 ), the Action Plan willcover the period 2004-

2006. Particular attention will be devoted to the imple-

mentation of activities pertaining to the five priority

sectors of the Action Plan: economy and infrastructure;

social issues (including education, training and public

health); environment, nuclear safety and natural

resources; justice and home affairs; and cross-border

co-operation. The Action Plan also stresses the impor-tance of special attention to areas of the Northern

Dimension region with particular development

needs, such as the Arctic and sub-Arctic areas and the

Kaliningrad region.

Following the adoption at the Kiev “Environment for

Europe” Ministerial Conference in May 2003 of the

EU Water Initiative's EECCA component, the European

Commission allocated an indicative amountof €35 million

for water and sanitation-related projects in the TACIS

Regional Strategy Paper 2004-2006 ( 71 ).

4.3.3. Programming

The programming frameworkfor most of the NIS region

is represented by CountryStrategy Papers covering, for

the most part, the five-year period 2002-2006. The only

country where the Commission felt it was necessary to

redefine the CountryStrategyPaper wasGeorgia, in thelight of the political events described above. In addi-

tion, a revised TACIS Regional Strategy Paper for

2004-2006 was presented in the first half of the year.

New indicative programmes were developed for

Armenia, Azerbaijan, Georgia, Russia and Ukraine, as

well as for the Cross-Border Co-operation, Regional and

Nuclear Safety Programmes.

It is also worth underlining that Ukraine and Cross-

Border Co-operation Indicative Programmes for the

period 2004-2006 will put particular emphasis on the

European Neighbourhood Policy. Increasing attention

is being given to issues of particular relevance in the

context of enlargement, for example through support

RegionaThe European Nei

emphasis on partn

The Communicatio

Neighbourhood Ins

the EU attaches t

around the futur

Commission develo

Programmes, as a f

under the New Ne

together both interharmonised way. A

Neighbourhood Pr

2006.

4.3.4. Implem

In budgetary terms

committed in 2003

able credits, with

second half of the y

€304 million. Th

previous years, a f

main reasons: first

in three of the fou

and second, there w

partner countries; t

of Financing Agreem

for EU assistance.

with certain projecChernobyl shelter

fuel gap (€20 mi

€420 million wasp

notablyin the Nucl

reduce the backlog

4.3.4.1. Instituti

AdminisOne of the key pr

work in the field of

tive reform. Since

partner countries

Partnership and Co

in place for 10 of

and administrative reform, but it is also relevant to

TACIS t t th i t t d t iti ti

4.3.4.2. Private Sector and

E i D l t



TACIS support to the private sector and to mitigating

the social consequences of transition.

The role of institution-building is likely to continue to

grow in importance as the EU seeks to accelerate the

reforms under way in this region, in particular in the

context of the European Neighbourhood Policy.

Furthermore, public officials from the western NIS will

be integrated into the decision-making structures that

will manage the Neighbourhood Programmes.

Justice and home affairs continues to grow as a priority

for TACIS assistance. The Commission has specific

Action Plans for both Russia and Ukraine, and

increasing attention is being paid to the design of

national action programmes supporting the priorities

emerging from Action Plan monitoring: an example is

the supportprovided in the fight against drugs, money-

laundering and trafficking in human beings. TACIS has

invested substantial resourcesin enhancing capacityin

the partner countries for integrated border manage-

ment. This support comprises investment in the

physical infrastructure, including refurbishment of

existing border posts, improving access roads and

supplying equipment, notably for transport and

communication purposes. Investment in supplies is

combined with parallel investment in training, notably

of border guards and customs services.

Lastly, it is important to underline TACIS involvementin the field of civil society. This is not an easy sector to

support, as all TACIS assistance is based on Financing

Agreements which have to be signed by each partner

government. The Commission has expressed its

concern to certain governments over the introduction

of legislation imposing additional registration proce-

dures: these are especially cumbersome for the

management of small projects typically supporting

civil society. In 2003, a total of 62 projects, valued at

€12.5 million, were being implemented through the

Institution Building Partnership Programme for Civil

Society and other local institutions. A further 62 proj-

ects were contracted in December 2003 for €11 million.

Economic DevelopmentAcross the NIS region, there has been a

investment in helping partner governments

transition from centrally managed econom

the process of privatisation, to the deve

transparent and effective corporate govern

continues to devote about one-third of its

private-sector and economic developmen

two themes of particular importance: first

restructuring and support to SME de

second, assistance on the economic aspectimation of legislation. In terms of enterpr

turing and private-sector development, T

closely with the International Financial

(IFIs) and in particular with the Europea

Reconstruction and Development (EBR

Caucasus, TACIS supports the EBRD’s

(Turnaround Management and Busines

Services) programme.

Transferring management skillsto Russian companies

Adapting to the rigours of a market econom

a challenge for the rump of Russian in

companies leveraged their market domina

also-rans had a steep learning curve to co

skills of strategic and investment plannin

and production management, quality cmarketing techniques that were previousl

Conscious of the potential of a prime

economy, the EC launched the TACIS

Restructuring Facility (TERF) in 1998. This

provided assistance to over 50 compani

sectors: textiles, leather, furniture, food, ch

paint, metallurgy, machinery, electronics

portation. To date TERF has invested €16.

mobilising specialists with hands-on kn

these fields. In the words of one bene

programme “laid the foundations for us to b

of the leaders in the Russian shoe market”.

recognised as the most successful do

restructuring programme in Russia.

The second priority is to facilitate the economic dimen-

sion of harmonisation of legislation of particular

4.3.4.4. Nuclear

For the Nuclear Saf



sion of harmonisation of legislation, of particular

significance in the context of the Partnership and Co-

operation Agreements. The EC is working with the

Azerbaijan Government on taxation legislation and with

the Russian authoritiesat federal and regional levelon

issues of financial transparency.

In addition, it is worth highlighting an investment

project of particular significance. During 2003, prepa-

ratory work started on the St Petersburg Southwest

Wastewater Treatment Plant, a major project to whichthe Commission, bilateral donors and the NDEP

(Northern Dimension Environmental Partnership) Fund

contribute grants to leverage loans from the NIB, EBRD

and EIB. With a direct Community contribution of

€24 million, the project will reduce pollution from St

Petersburg, the principal source of water-borne pollu-

tion in the Baltic Sea.

4.3.4.3. Addressing the Social Consequences of Transition

In the 12 years since the break-up of the Soviet Union,

the NIS region has seen growing numbers of people

sink below the poverty line, and the emergence of

alarming disparities in income between a rich minority

and the substantially poorer majority. In the future, the

TACIS programme is likely to put a greater emphasis on

poverty reduction specifically. In this context, the

completion of full Poverty Reduction Strategy Papers

(PRSPs) by Armenia, Azerbaijan, Georgia, KyrgyzRepublic and Tajikistan ( 73 ) is of major importance as

it provides a key framework for formulating country

strategies, indicative programmes and action pro-

grammes. TACIS assistance in this field has so far

focused primarily on two sectors: health and education.

TACIS is contributing across the NIS region to the fight

against drugs and the spread of communicable

diseases, notably HIV/AIDS and tuberculosis. In addi-

tion, TACIS is seeking to support the reform of the

health system in a number of NIS countries. In 2003, a

substantial programme of investment in primary

health got under way in Georgia. This initiative is part

of a carefully co-ordinated programme of donor support

For the Nuclear Saf

15-20% of the TACI

significant change

managerial sense a

projects. The safet

design has been a

International Atom

plants in Central a

revealed major sho

Commission has

improving the safsituation, primarily

Kazakhstan and A

culties have been

mentation, notably

a project and the in

bility of the benefi

was made of the r

mentation. This re

beneficiaries will b

cated in all stages

The Nuclear Wast

new important proj

ronmental Program

preparation, came

budget to which th

for nuclear projects

nuclear liability an

between the donothe fund raised an

become operation

dismantling of the

now underway. This

radioactive waste t

for which Commiss

which is planned t

The overall improve

also had positiv

Assistance sector.

of the Plant Imp

Novovoronezh) wa

4.3.5. Co-operation withMember States and other donors

In November 2003, the Council extend

operations to Russia and WNIS outside



Member States and other donors

During 2003, the European Commission worked exten-

sively with Member States and other donors in the NIS

region.

The European Commission systematically consulted the

Member States in Headquarters and, in particular, on

the ground through its four Delegations in the NIS

region. The EC Delegations held regular donor co-ordi-

nation meetings in order to ensure broad ‘ownership’of its programmes. In particular, the European

Commission took the initiative in maintaining dialogue

through its own programming missions, where quality

support teams from Headquarters and Delegations

consulted Member States on the preparation of the

Action Programmes. This process of consultation was

well received with efforts to ensure complementarity

between ECprogrammes and Member States’ bilateral

programmes.

The Commission also advanced in terms of its contacts

and collaboration with other donors, in particular with

the International Financial Institutions (notably the

World Bank and the European Bank for Reconstruction

and Development – EBRD). The Commission was

instrumental in co-ordinating and disseminating infor-

mation on existing and future activities, and provided

a valuable forum for discussion on complementary and

joint projects. It continued to maintain a close rela-tionship with the EBRD, notable examples including

support for the TAM-BAS (Turnaround Management

and Business Advisory Services) programme in the

Caucasus. Certain difficulties were experienced in

termsof co-ordinating the timing of EC technical assis-

tance vis-à-vis anticipated EBRD loans. Planned

assistance to the municipal sector in Ukraine had to be

cancelled when the municipalities failed to reach

agreement with the EBRD on the loan component

within the agreed time-frame. Close collaboration

continued with the World Bank, both in terms of

exchange of ideas at the design phase and hands-on

co-operation on joint projects. A notable example is the

co-operation with both the World Bank and the UK

operations to Russia and WNIS outside

mandate and agreed a guarantee

€500 million for these countries. EIB c

with Russia began in earnest only last ye

signature of the Framework Agreement in

2002. Thisprovided the basis for co-operat

with issues such as the Bank’s legal statu

the treatment of projects that may benef

financing, as well as issues of currency co

and transferability. The signature allowed

proceed with the implementation of itsRussia and to proceed with specific inve

jects. The on-going implementation – in co

with other international financing instit

bilateral donors active in the region, as

European Commission – is helping to i

Baltic Sea environment.

4.3.6. Overview results-orientedmonitoring

performance gains

improved scores. D



monitoring


189 operations in 13 countries.

See table 6

There is full coverage of all projects and programmes

above €1 million. The sample issupplemented byprojects

smaller than €1 million, identified as problematic, of

political sensitivity and/or strategic importance.

See table 7

Comparison of performance in year 2003 in the TACIS

region with year 2002 has to be considered in the

light of the harmonisation of the previous monitoring

system with Results-Oriented Monitoring (ROM), only

completed in July 2003. With only 17 operations moni-

tored and 22 reports produced for year 2002, these

figures for 2003 are respectively 189 operations and

342 reports. Nevertheless, the relatively large number

of operations monitored in 2003 allows one to draw

conclusions regarding the performance of projects

during 2003.

Operations in the priority area Institutional Capacity-

Building and Good Governance registered substantial

improved scores. D

‘input timeliness’ r

at problems in the

4.3.7. Conclusand per

There are two aspe

tion as the TACIS p

in late 2003, the Co

sion of the TACIS Rdue to expire on

launch of the Eu

March 2003 and th

in May 2004, it h

reform the TACIS p

Commission plans

Regulation in the c

ably involve a prop

assistance availab

The second key i

programme is well

of the European Ne


programmes entails visits to several components, resulting in

more reports for a singleregional programme.

( 75 )In regional programmes, where

regional integration is not anobjective, the components are



& programmes

1 Trade & development 108 71 147.2

2 Regional integration 7 2 4.0 2.003 Macro-economic support & social sectors 42 26

4 Transport 19 8 13.1 1.64



7 Other 5 2 8 0 4 00


4 | 4 Mediterranean and Near and Middle East

Promotion of Human Rights and democ

essential element of the partnership. In t



4.4.1. Introduction

The Barcelona process and the New Neighbourhood

policyof the European Community provide the strategic

framework for an enhanced Euro-Mediterranean

Partnership in a context marked, in 2003, by the

intractability of the Middle East conflict and the

international implications of the war in Iraq.

At the economic level, the countries of the southern

Mediterranean region were still characterised in 2003

by a high unemployment rate and stagnating average

income – almost ten times lower than the European

level. This makes growth a vital economic and political

objective for all these countries. Yet, without a radical

acceleration of the economic reform process, they will

not be able to meet the challenge of growth and

sustainable development. To achieve this transition,

the Mediterranean countries will need to foster the

dynamism of the private sector by adopting a more flex-

ible regulatory and administrative framework, reform

the fiscal system and radically restructure the financial

and state enterprise sectors.


In 2003, the Euro-Mediterranean Partnership continued

to develop along the three following axes:

• a political and security partnership;

• an economic and financial partnership;

• a social, human and cultural partnership.

The bilateral activities undertaken within the framework

of the MEDA Programme related to structural adjust-

ment, social development, economic co-operation,

environment and rural development. Regional initia-

tives in the same period included reinforcement of the

political partnership, regional forums to identify priority

economic and financial reforms (industrial co-opera-

tion, environment, water, energy, transport and the

Information Society), as well as co-operation in the

p p

the Communication of the Commission on 2

aims to give new impetus to the initiatives

thisfield ( 76 ), notably through joint Action P

Mediterranean partners.

The creation, within the Barcelona pro

Euro-Mediterranean parliamentary asse

consultative powers will heighten the vi

transparency of the process and will bring t

ship closer to the interests and expectatioopinion in the region. As regards the eco

financial partnership, important priorities

fication of the Association Agreements

already been signed, the completion of t

tions with Syria and, in the longer term, the

a Euro-Mediterranean free trade zone.

In 2003 the EU continued to support the

aimed at reinforcing sub-regional integrat

such as trade, infrastructure networks an

policy, along the lines of the Maghreb

(MAU) and the Agadir process.

Promoting investment in the countri

Mediterranean South is also a major challe

respect, the ECOFIN Council of 25 Nove

proposed further development of the Europ

for Euro-Mediterranean Investment and P

Measures to intensify co-operation in a fields – technological research and de

interconnection of infrastructures in the w

ronment and agricultural industries, an

co-operation – were also debated at var

related Ministerial Meetings in 2003.

The intercultural dialogue with the Me

countriescurrentlytakes the form of three p

Euromed Heritage, Euromed Audiovisual an

Youth. Following the Naples Conferen

decided to create a Euro-Mediterranean Fo

promote a dialogue between the cultures

as a catalyst for future initiatives. In the

field, the extension of the Tempus Progra

4.4.3. Programming promotion agencie

resources, on the



The Mid-Term Review of the 2002-2006 Strategy Papersconfirmed their current validity with no major changes.

These documentswill be adapted in detail if necessary

in 2004, on the adoption of the new National Indicative

Programmes for the period 2005-2006.

Significant progresshas been made on the handling of

certain issues. In Palestine a health sector review, asso-

ciating the EU as project leader with the World Bank,

the UK Department for International Development(DfID), the WHO and Italy, wasundertaken on behalf of

the Palestinian Ministry of Health. This review willallow

the Commission to improve the complementarity of the

many projects initiated in this sector. Likewise, in Iraq,

as a result of the efforts made by the Commission to

encourage multilateral reconstruction efforts, various

joint projects have been undertaken in association with

the international community and the Iraqi provisional

authorities, in order to determine the country’s needs

and to provide multilateral finance facilities (TrustFund). Finally, the sector strategies in the fields of

human resource development and support for civil

society have been elaborated.


On the budgetary level, total commitments in 2003

under the MEDA Programme came to €600.3 million

and total payments to €497.7 million. As regardsbudg-etary efficiency, performance improved considerably as

the payment/commitment ratio for all bilateral and

regional projects and programmes with the eight

Mediterranean countries rose to 83%, representing a

net progression of approximately 9% in 2002.

4.4.4.1. Enhanced regional integration

Regional co-operation activities in the Mediterranean

region represented 20% of the total amount of funds

engaged in the MEDA Programme in 2003. In theMiddle East, despite the practical difficulties posed by

the Israelo-Palestinian conflict and the effects of the

war in Iraq, all regional activities under the MEDA

programme continued. In the Near East, for example,

ANIMA project. In thalignment process

start-up of a new

Training Programm

Standardization Co

level, the EU-Mach

in 2003 and broug

nies from the EU an

and Lebanon) in D

In the telecommun

project, part of the

the European GEAN

Morocco and Tunis

progress has been

energy for water

project has define

tricity grid linking t

basin. Finally, a

Commission has poperation agreeme

joint projects in t

ministerial confer

contributed to ide

energy field, aswe

the Maghreb and t

tion in the Machre

Harvesting the en

One natural resour

by the countriesof

energy. In 2001 the

States with experie

leader, Spain, Port

operational and fi

programme. The

ASTEMB (ApplicatiMediterranean Bas

technology to seve

Morocco, Tunisia

Designed for coll

In the environmental field a project to promote bio-

logical agriculture has been responsible for training

SME support programme to augment the r

vices available to this sector, including



500 farmers and 40 agronomical engineers in Egypt,Turkey and Tunisia, and has led to the establishment

of biological farms.

The human dimension of the partnership has also been

underpinned by the creation, in Malta, of the Euromed

Youth Platform: this aims to facilitate and develop

youth exchanges, real as wellas virtual via a dedicated

computer network. More than 500 organisations on

both sides of the Mediterranean are already involved.Finally, MEDA regional co-operation in the field of the

rule of law and good governance made a significant

step forward with the launch, by senior officials of the

twelve Mediterranean partners, of a new joint co-oper-

ation programme involving the different judiciary,

police and immigration services.

4.4.4.2. Economic co-operationThe main objective of economic co-operation with the

Mediterranean countries is the creation of a Euro-MEDfree trade zone by 2010. Priority is being given to

sectoral reform programmes, in particular the reform of

those sectors with a direct impact on the competitivity

of the partner countries. These also benefit from tech-

nical support and from assistance to individual

companies, more specifically the SMEs that are the

fabric of a country’s economy.

At the requestof the Jordanian authorities, and in viewof the vulnerable state of the Hashemite Kingdom’s

economy as a result of the Iraq war, the European

Commission took the decision to accord emergency

budgetary assistance of €35 million. For the same

reason, the Commission agreed with the Egyptian

government to adapt the Industrial Modernisation

Programme in order to encourage reforms which will

have a direct impact on the competitivity of Egyptian

industry.

A comprehensive reform programme was also agreed

with the Moroccan government in order to promote

modernisation of the transport sector in Morocco: this

€96 million programme will finance the implementa-

long-term financing.

4.4.4.3. Co-operation with the EIBFollowing the creation of the Euro-Me

Facility for Investment and Partnership

2002, the European Commission reached

with the EIB to support implementation

initiative. In 2003 FEMIP received an

€25 million, within the framework of

Programme, as technical assistance for Emanaged by FEMIP, in particular private-se

opment support projects. In November

ECOFIN Council took the decision to endors

Mediterranean Facility for Investment and

further.

4.4.4.4. Social and human development

to order 2003 was characterised by the growing im

activities linked to the Association Agreemeas by the enhancement of bilateral co-oper

water, transport, energy, rural and env

development, telecommunications and i

support sectors.

New support initiatives were undertaken p

the following sectors: education (Tunisia –

higher education); health (Palestine – he

support/HSSP and emergency support foservices/ESSP II, Yemen – health and

support/HSDS); civil society, Human R

support for vulnerable communities(Egypt–

children, Lebanon – promotion of civil so

income-generating activities (Egypt – SME

As regards water, a thematic network has b

lished to enhance Euro-Mediterranean c

within the framework of the Community’

Union Water Initiative (EUWI). This netwocompleted drafting a project on interven

water sector in Jordan.

In the transportation infrastructure field, in

4.4.4.5. Post-conflict management

Since the end of the war in Iraq the European Union has

4.4.5. CooperMembe



been arguing for a multilateral approach and hasplayed a very active role in the reconstruction process,

alongside the World Bank and the United Nations. The

EU has participated in missions to evaluate the needs

of the main basic sectors (education, health, local

governance, employment) and has offered technical

expertise to support implementation of the Iraq

Reconstruction Fund. At the close of the Madrid confer-

ence on the reconstruction of Iraq, €40 million were

earmarked for reconstruction work, in addition to the€100 million already budgeted for emergency human-

itarian aid by ECHO.

This aid (€40 million) has been allocated as follows:

€29 million for the United Nations Development

Programme (UNDP) for the prevention of crises and

reconstruction activities in the educational, health,

sanitation and revenue-generating fields; €3 million

from the Human Rights budget line to support Human

Rights and civil society through the UNDP Trust Fund;and finally €8 million for the new Iraq Reconstruction

Fund to finance initiatives in the fields of local gover-

nance, aid to democratic media, and technical

assistance for the reactivation of the Iraqi Ministries.

The situation in the Palestinian Territories has so far

excluded the possibility of establishing either a

strategic document or a National Indicative Programme

for the West Bank and the Gaza Strip. Operationsundertaken in 2003 therefore focused on emergency

financial assistance, in order to cope with the excep-

tional situation prevailing since September 2000.

In 2003, an amount of €129 million was allocated to

finance MEDA Programme projectsand the ‘Support for

the Peace Process’ budget line. These projects were

aimed primarily at supporting reforms undertaken

through a Finance Facility and technical assistance to

the Palestinian Authority.

Co-ordination with

donors in the Medi

realities, in the lig

uncertainties of th

As a general rule, co

and with the other

case of Jordan, Leb

with bi-monthly meordination meeting

ten others are pla

directly involved in

stages – including

national priorities

regional financial

informed of operat

areas of co-oper

included the organ

in Morocco and the

Co-operation with t

the form of regular

sentatives in the p

local EU Delegation

countries concern

representatives of

the World Bank, the

underpin operationdonorsand the nat

overall coherence o

Enhancing relation

(professional fede

priority. In Tunisia,

exchanges with NG

SMAP regional prog

TempusProgramm

ratisation and Humthe Commission is

pendence of the NG

certain degree of d


See table 9

O ll h j i h i f



In 2003, a total of 151 monitoring visits were made to

143 projectsand regional programmesin 22 countries ( 77 ).

See table 8

Co-operation with the Mediterranean region is charac-

terised by a high proportion of regional programmes,

in 2003 61% of the 143 operations monitored. The

majorityof operations is relatively small, with a budgetof €1-5 million (56%). A minority (8%) has however an

average size of nearly €78 million. These mainly

national projects represent 67% of the overall budget.

Overall the projects in the region performeand even the score for efficiency is low in c

Activities and results have been affected b

the provision of project inputs. Flexibility

changing circumstances during implement

positive influence on project efficiency, ef

and impact. Financial aspects are frequen

ered the weaker aspects of sustainability.

2003 Priority area Number Number Total budget A

of reports ( 78 ) of projects (€ million) (

& programmes


2 Regional integration 94 87 336.45

3 Macro-economic support & social sectors 15 15 420.11

4 Transport - - -

5 Food security & rural development 17 17 292.81

6 Inst. capacity / good governance 20 20 75.59

7 Other 1 1 0 01


4.4.7. Conclusions and perspectives

For the Mediterranean re ion the year saw an intensi



For the Mediterranean region, the year saw an intensi-fication of the efforts initiated over the last three years

to ensure effective implementation. In 2004 and for the

years ahead, the Union proposes an enhancement of

the existing partnership with the neighbouring coun-

tries of Eastern Europe and the Mediterranean South,

in exchange for concrete progress in shared values

and meaningful headway in the application of socio-

economic reforms. Specifically, the Commission

proposes a two-stage approach:

• Improved co-ordination of existing measures of

co-operation in order to permit the rapid introduc-

tion of New Neighbourhood programmes for the

period 2004-2006 funded to a global amount of

€45 million from the MEDA budgetand spread over

three years. Three Indicative Programmes will be

implemented in the Mediterranean region: a sub-

regional programme for the Maghreb, a sub-regional

programme for the Machrek, and a bilateral pro-gramme consisting oftrans-frontier projectsbetween

Europe and partner countries.

• As of 2007, the creation of a New Neighbourhood

programme with specific budget allocations and a

single and harmonised procedure.

Finally, progressin the region dependson the ability to

find a lasting and equitable solution to the Middle Eastconflict and, building on this, closer co-operation in the

domain of justice and home affairs on some major

issues: the refugee problem, illegal immigration, the

right of asylum and Human Rights generally. Dialogue

between peoples who have shared a social and

cultural reality throughoutmuch of history is an integral

component of Euro-Mediterranean co-operation.

4 | 5 African, Caribbean and Pacific (ACP) Countries

and Overseas Countries

4.5.2. Evolution of EU co-operatio

4 5 2 1 Consolidating the Cotonou Agre



and Overseas Countries and Territories (OCTs)

4.5.1. Introduction

For the vast majority of people living in ACP countries,

2003 presented continued difficulties marked by

poverty, insecurity and environmental degradation,

most notably in Africa. In 2002 (the latest year for which

data was available at the time of writing), Africa’seconomic growth was just 2.7% ( 79 ) – well below that

of other developing regions and barely higher than the

rate of population growth. Similarly, the continent’s

share of global trade fell to around just 2% ( 80 ).

Preliminary estimates indicate that such low rates were

repeated in 2003. Indeed, the ACP lost further market

share in the world market with EU-ACP trade declining

by 4% in euro terms; in many ACP states the pace of

development continued to fall well behind that of other

developing regions.

Yet despite these negative trends, the development

process yielded tangible resultsand improved people’s

prospects in many ACP countries in 2003, while initial

estimates also point to continued strong economic

growth – exceeding 6% – not only in net oil-exporting

countries but also in countries such as Burkina Faso,

Mozambique and Tanzania.

4.5.1.1. Overseas Countries and Territories (OCTs)

OTCs are not part of the Cotonou Agreement, being

a group of 20 islands and archipelagos which have

special relations with Denmark, France, the

Netherlands and the United Kingdom and enjoying

varying degrees of autonomy within their mother

country’s constitution.

In December 2003 the Overseas Countries and

Territories Forum took place in Brussels, attended byrepresentatives of all the OCTs and the Member States

and the Commission. This provided an opportunity to

review the OCT-EC special relationship and reflect on

its future development.

4.5.2.1. Consolidating the Cotonou Agreby deepening dialogue

In 2003, the EC-ACP political dialogue se

Cotonou Agreement was substantially re

some instances dialogue started from scra

others, relationships were maintained desp

crises. However, in Togo, Zimbabwe and H

8 political dialogue wasnot sufficient to pro

governance and development co-operatio

suspended.

4.5.2.2. Building solid foundations for p

Peace progressed in 2003 in a number of

Long-awaited cease-fires or peace agreem

into effect in Angola, DR Congo, Burundi an

Somalia and the Sudan mediation and talk

long-running conflictsintensified, boosting

a settlement may soon be reached in each

In other African countries recently scarredor food crises, reconstruction and rehabi

presented daunting challenges. But resourc

by African countries in peace-making a

keeping, and support received from extern

such as the EC, have increased dramatica

years, and 2003 saw this trend continui

supported the African Union and the

Communityof WestAfrican States(ECOWAS

the peace as well as sending its own forcesoldiers from several EC Member States.

4.5.2.3. Supporting regional and pan-Aintegration

At the regional level, ACP countries w

throughout 2003 to strengthen their collec

sation and commitment to working togethe

conflicts and conduct trade negotiation

economic communities, such as ECOWAS a

have engaged in negotiations of EconomicAgreements, while the collective vision

Economic Partnership for Africa Developme

found its natural home in the new archite

African Union (AU).



An agreement was concluded with the African Union to

support their efforts in conflict-prevention and peace-

building, pledging €12 million to support a wider range

agencies – to facilitate the disarmament, d

tion and reintegration into civilian life

soldiers, promoting economic and social re



building, pledging €12 million to support a wider rangeof activities than in previous years, including those of

the AU’s Panel of the Wise and its special envoys.

This will enable the AU to implement its continental

mandate for peace and security, refined by the ratifi-

cation of the Peace and Security Protocol, and engage

actively in resolving conflict.

The Commission also indicated its willingness to

support peace-keeping operations through the crea-tion of a €250 million Peace Facility and continued its

preparations in this field. The Facility is expected to

become operational by mid-2004.

Finally, the Commission provided ad hoc assistance to

three countries – Liberia, Ivory Coast and Burundi –

where positive developments in the peace process

required support before the Peace Facility could be

approved. Peace-building assistance was provided

through organisations best placed to mount such anoperation – the Economic Community of West African

States (ECOWAS) in Liberia and Côte d’Ivoire, and the

African Union in Burundi.

4.5.4.3. Providing post-crisis support

and linking relief and rehabilitation with development (‘LRRD’)

In parallel with its peace-keeping and conflict-preven-

tion efforts, the Commission was actively engaged in2003 in facilitating post-conflict rehabilitation, thereby

ensuring a smooth transition between emergency aid

and sustainable development assistance as envisaged

in the Commission’s 2001 paper Linking relief, reha-

bilitation and development (LRRD) ( 84 ).

Effective post-conflict rehabilitation requires the use of

the most flexible procedures and most appropriate

partners to implement programmes. In complex emer-

gency situations, such partners are likely to be inter-national non-governmental organisations and/or UN

agencies. Rehabilitation programmes call for a process

approach where actions are adapted to circumstances

on the ground, while remaining within the programme

soldiers, promoting economic and social reand local community development, and

institutional support to the Government.

Finally, in Angola, the implementati

€30 million emergency programme to s

Peace Process, adopted in September 2002

in 2003, targeting in particular the areas of

health, nutrition, water and sanitation,

education, child protection and reinsertiotarian de-mining, and resettlement of

people.

4.5.4.4. Delivering aid more effectivelygeneral and sectoral budget su

Unlike standard external development supp

or sectoral budget support is not devoted t

development projects, but rather to a go

entire central budget or to a single sector – f

health or education.

General budget support

In most recipientcountries, especially in Af

support is general, with the main aim o

poverty (also referred to as ‘macro-econom

support). Through the country’s central bu

provides financial assistance to promote

growth and the implementation of the count

Reduction Strategy Paper (PRSP).

In addition to financial assistance, gene

supportprogrammes comprise substantial

capacity- and institution-building, with

emphasis on improving public resource ma

developing policyand monitoring progress

poverty.

To monitor progress in implementing gen

support, the EC and the recipient country uance indicators included in the PRSP

framework and usually relating to pub

management, health and education.

Progressin 2003: meeting the challenges inherent in

switching to budget support

By the end of 2003, almost a third of the EC’s external

Debt relief: freein

and economic grow

In addition, the EC



y 3,assistance to ACP countries through the EDF was

provided as general or sectoral budget support, placing

the EC ahead of all other donors in this regard. The

Commission and its international development part-

ners also made substantial progress in refining the

methodology underlying budget support:

• Current practices among donors were more closely

harmonised. Donors agreed to use, where possible,the Annual Progress Review of a national PRSP as

the sole report monitoring progress and the degree

to which conditions were fulfilled. This will reduce

considerably the reporting burden on recipient

governments.

• The Commission and other donors were actively

engaged in developing a new system for regularly

reviewing the quality of public finance manage-

ment in countries receiving budget support. This

new type of assessment will examine both:– progress in raising the quality of financial

management systems – using a set of agreed

performance indicators – and

– the need for further capacity-building, based

where possible on an action plan for reform

adopted by the recipient government.

See table 10

,ing debt in ACP cou

the World Bank-le

(HIPC) Initiative, a

tackling debt. By th

– almost two-third

debt relief under th

For example, 2003

of USD 675 millionmillion granted to

HIPC Initiative had

by 37% and 54% re

( 85 )The 24 countries comprise:

Benin, Burkina Faso, Cameroon,

Benin General budget support for pove

reduction (2004-06)

Chad General budget support for pove

reduction (2003-06)

Mali General budget support for pove

reduction (2003-07)

Table 10 | EC macro-economic support to ACP countries in 2003 (

Financing provided by the European Investment

Bank (EIB) in ACP countries in 2003 amounted

to €723 million:illi ( ) d

4.5.4.5. Promoting good governance,

the rule of law and democratisa

To support the shift towards general ab d h i d



7• €146 million (20%) was under a new Investment

Facility: managed along commercial principles,

this invests return flows in new projects and

provides ACP countries with a reliable source of

future financing;

• €260 million (36%) was allocated to South Africa;

• almost 70% of lending went to the private sector or

to commercially run public-sector activities such as

power and water infrastructure projects; and

• €343 million (47%) went to banks and venture

capital and micro-finance fundsto support the finan-

cial sector and promote private sector investment.

Project highlights included:

• €50 million to the Kanshanhi Copper mine for

investments in an open-pit copper mine and a

power supply line;

• €12 million to Bel Ombre Hotels in Mauritius;

• €50 million to the GSM cellphone network operator in Nigeria.

Equity participations included:

• €30 million in African Bank HoldingsLLC, to acquire

control of commercial retail banks;

• USD 30 million in Aureos Africa funds, to provide

funds for investment and venture capital in West,

East and Southern Africa.

Poverty reduction in practice in Tanzania

The European Community, together with the World

Bank and 10 bilateral co-operating partners, is

providing vital funding support for Tanzania’s Poverty

Reduction Strategy (PRS) programme: in the present

phase the EC is committing €114 million to this

endeavour. The harmonised approach adopted by the

donorshas resulted in reduced transaction costs, moreaccurate financial planning and better co-ordination

between allparties involved. New Tanzanian legislation

has also reinforced procurement procedures and

commitment controls, and permitted the installation of

budget support, the EC increased resource

help ACP countriesmanage this demanding

successfully or prepare for receiving it. Su

focused in many cases on improving gov

priority under the terms of the Cotonou Ag

In other ACP countries governance issues m

cult at present to use either general or sect

support in a meaningful and sustainable

Income Countries Under Stress (LICUS), as

the World Bank ( 88 ), are often the very coun

the capacity to absorb such support is low

cases EC support would normally be co

within key Millennium Development Goal s

as health, primary education and poverty

Once a plan to develop a priority sector has

oped, global mechanisms – such as the Glo

Fight AIDS, Tuberculosis and Malaria, to w

contributed €170 million in 2003, or the ECWater Facility – could provide additional s

In parallel, large-scale assistance would be

improve governance, together with suppo

state actors. In 2003 forty such program

approved, amounting to some €250 millio

on:

• Improving the capacity of public admin

plan, budget, monitor and manage the

effectively, thereby increasing governme

ability at all levels.

• Strengthening non-state actors by

dialogue between national authoritie

society organisations, thereby foster

transparency and public debate surro

policy issues.

• Consolidating regional integration and

by promoting greater interaction betweorganisations and their constituent st

such as national administrations, pr

organisations and professional bodies.

All ACP regions benefited from Trade-Related

Assistance (TRA) and more generally from regional

integration support programmes in 2003. Such supporth l d t

Good governance

wide-ranging refo

A seven-year progral EU M b



helped to:

• Build institutional and trade policy capacity.

• Facilitate trade and trade negotiations, and attract

inward investment.

• Ensure wider application of common trading stan-

dards including in the horticultural and fisheries

sectors.

• Improve transport and communications links.

• Develop rural economies and the private sector.

In mid-2003, the Commission approved a further six-year

all-ACP TRA/CB programme amounting to €50 million

in response to requests from ACP countries and organi-

sations for continued support. Regional-level support

will be maintained, and in some cases increased, with

large new regional support programmes set to come on

stream in 2004.

During the year the EC has also given priority, within

the framework of two pan-ACP programmes and WTO

guidelines, to the negotiation of new Economic

Partnership Agreements (EPAs) with ACP countries.

Moreover, PRO€INVEST, an all-ACP private-sector devel-

opment programme, launched a €2 million initiative

(Trinnex – Trade Investment nexus) to sensitise ACP

companies to upcoming EPA negotiations.

4.5.5. Co-operation with Member Statesand other donors

The EC is committed to enhancing the complementarity

of its assistance to ACP countries with that of indi-

vidual EC Member States and further strengthened its

co-ordination of aid design and delivery with them in

2003. Examples of such co-ordination included:

Budget support: harmonising assessmentof public finance managementIn 2003, the Commission continued working with

the overseas development departments of the UK

(DfID), France and other major donors to harmonise

several EU Membe

Benin to consolida

country’s legal and

nation meetings w

States and the Be

Denmark is helpi

central administra

support has focus

tion of courts and

modernisation of th

Commission has h

and children’s righ

Conflict resolution

a consistent preseThe Community wo

the ongoing prese

the ceasefire agree

French contingentby an EC-funded EC

troops from Benin,

addition, a contin

remain to support

commanders.

Safe drinking wataccess in Tanzania

In 2003, the Com

water supply prog

(€10.2 million), for

The programme ai

able water and wa

almost one million

ment of the German

oversee implemen

additional funds.

Systematic co-ordThe Community str

gramme design an

all the world’s m

States, as well a

In Rwanda a Partnership Framework for Harmonisation

of Budget Support was agreed upon between the

Government and the development partners inNovember 2003 It was a tangible outcome of the SPA

Small business development:

taking stock and joining forces with othe

The Communitycontinued in 2003 to co-ordclosely its own private enterprise



November 2003. It was a tangible outcome of the SPA

process (see below) which provides for streamlined

conditionality, improved predictability and a series of

joint reviews.

Budget support: the Strategic Partnership

for AfricaThe Community sought in 2003 to strengthen its

dialogue with other international donors concerning

budget support to ACP countries as well as the associ-

ated Poverty Reduction Strategy Paper (PRSP) process

which is a key feature of budget support. Continuous

consultation took place with the IMF and the World

Bank, and the EC also played an active part in discus-

sions on macroeconomic support and aid delivery

within the Development Assistance Committee (DAC)

of the OECD, which brings together officials from all

the major donor countries.

The Community also continued to play a leading role in

the Strategic Partnership for Africa (SPA), established

in the late-1980s to allow donors to harmonise the way

they provide budget support.

Health and debt: addressing key issuesat a global level The Community continued to play a leading role in

globaldevelopment initiatives that unite all the world’s

major donors, including EC Member States. In 2003

it made a contribution of €170 million to the Global

Fund to Fight AIDS, Tuberculosis and Malaria, and

approved € 460 million to support the Highly Indebted

Poor Countries (HIPC) initiative, which aims to substan-

tially reduce the debt burden of the world’s poorest

countries.

Microfinance: the Consultative Group to Assist

the Poorest (CGAP)The Community also strove in 2003 to reinforce co-ordi-

nation with other donors in the design and execution

of programmes providing much needed and otherwise

inaccessible finance for small-scale businesses (micro-

closely its own private enterprise

programmes with the efforts of other don

also took an active role in the Committe

Agencies for Small Enterprise Develop

Committee comprises all major donors, m

year, and facilitates information exchange

co-ordination and improved donor operatin

Finally, the Community informed and cons

donors extensively on its evaluation and pr

business-support programmes such as

aimed at facilitating the establishment

business-friendly environment, and EBAS

to strengthen companies’ performance b

the provision of local business developme



As far as the UN

(MDGs) are concern

is macro-economicencompasses four




293 projects and regional programmes in 44 ACP coun-

tries, including South Africa and Cuba.

See table 11

Although the average size of a monitored ACP opera-

tion is slightly over €10 million the scale differs consi-

derably, with regional programmes amounting to

€79 million and NGO co-financed projects of less than

€0.5 million being monitored.

See table 12

The category “Other” comprises mainlymicro-projects.

It shows the lowest ratings for “Relevance” and

“Quality of design”, yet ratings for all other criteria are

high. Experience suggests that these programmes are

indeed relevant, so further analysis may examinewhether their diverse nature prevents coherency in

their design, and thereby contributes to low scores in

these two areas.

encompasses four

• universal prima

• gender equality

• maternal health

• HIV/AIDS, mala

Here, results are be

for allcriteria and su

and, within that, “F

that local-sourced

programmes once

benefits cannot b

although the bene

lost.


programmes entails visitsto several components, resulting

in the production of more thanone report for a single regional programme.

( 90 )Most projects under the priority area “ Other” are Micro Project



& programmes


2 Regional integration 66 34

3 Macro-economic support & social sectors 58 58

4 Transport 20 20



Oth (90)


4.5.7. Conclusions and perspectives

4.5.7.1. Accelerating the switchto budget support

4.5.7.3. The European Union Water Fund

making access to safe water a t

The Cotonou Agreement commits the Cospending €12.5 billion on development in



to budget supportUsing the budget support approach, the Community is

determined to increase the percentage of its external

assistance delivered in the coming years beyond the

level of around 30% at the end of 2003. But the total

number of ACP countries able to meet the criteria on

governance – including overall macro-economic

stability and a clearly-defined Poverty Reduction

Strategy Paper – will only become apparent over time.

ACP countries’ capacity to adopt the necessary gover-

nance standards – even with full donor support – also

needs further testing: a good start was made in 2003

but much remains to be done. The programming of

funds, starting with the 2004 Mid-Term Reviews, must

also reflect this approach, so that funds flow to coun-

tries with a serious commitment to achieving quali-

tative progressin development. In addition, a common

understanding must be reached by donors and ACPpartners concerning the definitions, advantages and

risks inherent in the budget and sector approach, not

least because of the complexity of the policiesinvolved.

Mid-term reviews: rewarding progress

in achieving development goals

Launched in 2003, mid-term reviews (MTRs) are set for

completion in 2004 and will be of major significance

to ACP countries. MTRs will examine governments’

performance in dispersing Community fundseffectively

to achieve the objectives identified in their Country

Strategy Papers (CSPs) and will reallocate unspent

funds to those countries which have made most

progress in doing so.

4.5.7.2. Budgetisation: changing the way EC

programmes in ACP countries are fundedThe debate about budgetisation – integrating the

Community’s development spending in ACP countriesinto its central budget ( 91 ) – was relaunched in a pro-

posal submitted to the Council and Parliament in

October ( 92 ) and looks set to continue into 2004. The pro-

posal argues that budgetisation will significantly

spending €12.5 billion on development in

tries over five years, with a further €1 billion

subject to the outcome of the mid- and

reviews( 93 ).

In April, the President of the Commissio

Prodi, proposed to use this €1 billion to

European Union Water Fund, since almo

people in sub-Saharan Africa lack access to

or adequate sanitation. The proposal built

Water Initiative, launched during the 2

Summit on Sustainable Development in Joh

4.5.7.4. Providing consistent support fo

African peace-keeping:the EC Peace Facility

The African Union (AU) now has a strong

prevent and resolve conflict in Africa, and in

about building the institutional capacity tmandate. Through its Peace Facility for Afri

in 2003, the EC will provide a ready source

for costly peace-keeping operations in Afric

forces and will bolster the institutions

implement such operations. In the longe

Facility will fund African solutions to Afr

strengthen pan-African solidarity, and hel

conditions required for development.

4 | 6 Asia

4.6.1. Introduction

The 4th EU-India

November 2003, ag

which covered biHuman Rights, the



Developing Asia emerged from 2003 with a growth rate

of close to 5%, thereby making an important contribu-

tion to world growth. This achievement is all the more

impressive considering the negative effects of the Iraq

war, SARs, instability in the Korean peninsula and the

continued threat of terrorism in the aftermath of the

Bali bombing. The relatively high growth rate was

driven largely by China and India as they continue to

integrate more deeply into the world economy. Asia

now accounts for one-third ofworld output, one-fifth of

world exports and attractsone-third of all foreign direct

investment in emerging markets.

Meanwhile, countries in the region recovering from

conflict such as Afghanistan and Sri Lanka continued

efforts towardsnation-building as the former prepared

to reinforce its democratic credentials under the Bonn

process while the latter worked towards conciliationbetween the parties to the conflict. Peace and security

in the region received a major boost when India’s

extended ‘hand of friendship’ received a positive

response from Pakistan. While Nepal and Cambodia

signed their membership of WTO at the Cancun

meeting, the collapse of the Doha Trade Round in

Cancun was a blow to least developed countries and

emerging markets alike.


Throughout this turbulent year on the international

scene, the EU continued to nurture its relationship with

Asia in the context of its Communication Europe and

Asia: A Strategic Framework for Enhanced partner-

ship ( 94 ). In addition, two major policy papers were

issued on EU relations with China ( 95 ) and on relations

with South East Asia ( 96 ). Furthermore, several bilateral

and multilateral meetingsat Ministerial and senior offi-cial level provided a forum for dialogue on security,

trade and co-operation matters.

At the fifth ASEM Foreign Ministers’ Meeting, held in

g

promote peace,

Afghanistan and Ir

operation to coun

continue high-lev

issues.

In the Korean Pen

tional diplomatic in

to the Korean

Organisation (KED

proliferation and re

4.6.3. Program

In 2003, program

the Asia region re

four Country Strate

Bhutan, MaldivesDecember 2003,

published 17 CSP

Bhutan, Cambodi

Malaysia, Maldives

Sri Lanka, Thailan

Vietnam, most of w

Additional strategi

programmes in As

in the drafting and

A Mid-Term Revie

February 2003 for t

Cambodia, Indone

Thailand, Timor Les

whether the CSPs

close dialogue with

all CSPs are still v

recommended in t

(NIPs) 2002-2004Philippines. These

occasion of the ado

For CSP/NIPs which

take place in late-


In line with the EU’s co-operation strategy for the Asiaregion, practical co-operation was stepped up in the

In line with the ECpolicy aimed at integratin

in the multilateral trading system, developin

are being assisted in their WTO accession pin the post-accession phase with the impl



following fields: trade and investment, sector

approaches for poverty alleviation, good governance,

Human Rights and democracyand conflict management.

In budgetary terms, commitments ( 97 ) for Asia in 2003

were €558 million and effective disbursements reached

about €470 million. While commitments were some

20% higher than the average over the past three years,

payments were up by almost 25% of the average of

recent years.

4.6.4.1. Trade and Investment

Trade and investment flows between Europe and Asia

have not reached their full potential. While the imple-

mentation of the Doha Development agenda would

create enormousopportunities, manycountries in Asia

face institutional constraints in the regulatory and

administrative field as well as structural weaknessthrough over-reliance on fragile sectors for employment

and exports.

Against this background, economic relations with Asia

were strengthened through regular dialogue at regional

and bilateral level. Issues such as investment libera-

lisation and market access were actively pursued in

both the EC’s multilateral and bilateral relations. This

dialogue was backed up by co-operation programmes

on an Asia-wide basis, as well as support for Trade

Related Technical Assistance (TRTA). Accession as well

as implementation of commitments to the WTO

remained one of the aims of increased co-operation,

notably with China but also with Vietnam, Nepal,

Cambodia and Laos. For South-East Asia, a “Trans-

Regional EU-ASEAN Trade Initiative” (TREATI) to expand

trade and investment flows through regulatory co-

operation and better market access has been tabled

by the EC. ASEAN itself, since its Summit in Bali inOctober 2003, has endeavoured to regain momentum.

An important development was the high-profile decla-

ration at the ASEAN Summit of the intention to create

an ASEAN Economic Community by 2020. The EU has

of WTO agreements.

In order to ensure coherence between don

this area, the EC made specific efforts in 2

up collaboration and build synergies with in

organisations specialised in this field. A

projects and programmes have been lau

international organisations such as UN

UNIDO and WIPO.

During 2003, the EC reinforced the prior

institutional development in the importa

public finance management, for example in

of financial-sector reform in Pakistan. Impro

public finance management (budgetary

and implementation systems, capacity of i

external control functions, customs organ

functioning, effectiveness and efficiency ocial sector and of regulatory bodies) will

positive impact on the development po

economic climate of developing countries

them more attractive for foreign investors.

ples of practical co-operation are the five

programmes ( 98 ), where activities intensifi

These have as their vocation the building

ships between Europe and Asia by develo

ness of market potential and the busine

ment, and providing grant funding for de

co-operation. These partnership programme

key areasof business investment and trade

urban development, higher education lin

scholarships, accelerated use of inform

communications technology, and promot

ronmentally-friendly technological solution

About €27 million of new funding was co

2003 to continue the activities of three programmes, which launched calls for p

2003 under their ongoing activities. Alto

120 projects were approved for grant fun

total EC contribution of more than €34 m

4.6.4.2. Poverty alleviation: the benefits

of a sector approach

While the Asia region is making good progress inreducing poverty, a number of the developing countries

( )

Releasing the pot

The European Comproviding grassroo



(LDCs) and sub-regions within other countries of the

region continue to be beset by institutional weak-

nesses, conflict and ingrained inequalities which

disproportionately affectthe poor. In line with its stated

strategic aims for the Asia region, the EU continues to

evolve its co-operation in order to help partner govern-

ments and civil society organisations find a sustainable

solution to poverty.

Major poverty-related communicable diseases such as

malaria, tuberculosis and AIDS prevail in the region,

particularly in China and India. New health threats like

SARS, which seriously affected parts of Asia in 2003,

had a disproportionate and potentially devastating

impact on the region’s economy through evacuations

and travel restrictions. The EU put particular emphasis

during 2003 on adopting, where possible, a sector-

wide approach in co-operation programmes with Asiancountries. Thisapproach focuseson sector reforms not

only in public health but also in education and rural

development, with particular emphasis on “Low

Income Countries Under Stress” (LICUS).

This sector approach promotes and implements pro-

poor reformsthat strengthen sector policies, legislation,

institutions and capacities. Decentralisation and equity

issues, publicfinance management and administration

reform, governance and the involvement of civil society

stakeholders generally. The dialogue with the EU’s part-

ners in Asia confirmed that it is particularly in these

fields that close partnership between government and

development partners can help consolidate pro-poor

reform agendas and commitments, particularly when

underpinned by clear performance indicators and

incentive mechanisms.

Achievements have been particularly encouraging withsector reforms initiated or enhanced in the health

sector (Cambodia, India, Vietnam, Indonesia,

Philippines), basic education (Bangladesh, Cambodia,

India, Vietnam), forestry (Indonesia, Vietnam), and the

for a local primary

Bazaar region of B

poor health, lack o

facilities, and litt

private health serv

bottom-up ‘self-he

nities in the are

motivation, and th

Development Com

trained under the

empowerment. Ar

Cox’s Bazaar regio

operating in comm

locally and providin

information, the EC

has already seen t

from 159 to 132 pe

4.6.4.3. Good goand dem

The growing impo

nance, the rule

pre-requisite for su

the EU’s strategy t

implementation of

significant EC ass

democratic system

country. Regular s

Rights dialogue all

all issues of concer

ance with UN Con

penalty, torture, vio

ciation and religion

political and civil

reform and improv

Philippines and Inanother willassist

Philippines.

The importance th

to an open society, for example through training pro-

grammes for Chinese judges and procurators, and

support for village elections and civil society.

6 P t fli t t

After two decades of conflict in North-East

cease-fire agreement was signed between

ment and the Liberation Tigers (LTTE) in FebFollowing this agreement and the star

ti ti d ’ f



4.6.4.4. Post-conflict managementPost-conflict situations are generally characterised by

human suffering, poor administration and a lack of

basic services. It is crucial to provide emergency assis-

tance to a population to meet its basic needs, while

at the same time assisting national and regional

administrations with the fundamental task of ‘nation-

building’.

It is vital from the outset that assistance is in line with

the policy priorities of the government authorities. This

will encourage local ‘ownership’ and strengthen the

transition from immediate reconstruction and rehabil-

itation to a long-term development strategy. But where

local administration isstill weak, the donor community

has to provide direct support to help the administration

with priority-setting and day-to-day administrative

affairs, as in the case of Timor Leste.

In 2003, Afghanistan remained the first priority for EC

assistance to developing countries in Asia, with

commitments totalling over €300 million. This high

level of assistance was well in excess of the projected

annual average contained in the EC’s Tokyo package

announced in 2002. In line with the development prior-

ities defined by the Afghanistan TransitionalAuthority,

the programme concentrated on four sectors: reform of

public administration, basic health services, rural

development and infrastructure rehabilitation. All

projects combine service delivery with substantial

capacity-building at different levels. In order to ensure

quick aid delivery and good co-ordination with other

donors, significant financing support is channelled

through the World Bank (e.g. the Afghanistan

Reconstruction Trust Fund – ARTF) and the UNDP (e.g.

the Law and Order Trust Fund – LOTFA).

Timor Leste’s vote for independence in August 1999

was followed byviolence and destruction, coupled with

social and economic disruption. The volatile situation

in the country has been stabilised by massive external

negotiations, a donors’ conference was o

Tokyo during June 2003. The Commissio

€50 million over two years to assist pe

activities, complementing the allocation of

in the National Indicative Programme

2005. Of the total amount of €67 million

a totalof €23 million was committed in 200

include de-mining, basic upgrading of th

grid and road network, humanitarian as

displaced persons and refugees, schools re

and assistance to peace-related institutio

activities designed to link relief, rehabil

development assistance are envisaged

common donor trust fund. However the su

peace talks in April 2003 prevented furth

ment of the trust fund mechanisms, so

currently blocked.

In the year under review, the EU deployed

under its special budget line for Uproot

providing basic needs for up to half a millio

the Philippines, Thailand, Myanmar, Bang

Indonesia.

Finally, the European Investment Bank app

totalling some €93 million for two projec

small and medium ventures in India, the o

construction of an oil pipeline in Pakistan.

4.6.5. Co-operation with EU Member States and other donors

In the Asia region, where the EC actively co-ordinates

with EU Member States and other donors sector

In Vietnam, co-ordi

Member States and

major issues as thedevelopment of a s

the Vietnam reform



with EU Member States and other donors, sector

approaches have permitted a more harmonised and

effective pooling of development potential in 2003.

In Bangladesh, for example, close co-ordination

between the EC and three Member States – the

Netherlands, Sweden and the United Kingdom –

contributed significantly to the development of an

externally financed sector support programme for

primary education of €500 million: the European

financial stake amounts to roughly 50%, with a very

significant EC contribution of €105 million. Improved

co-ordination has also allowed the EC to contribute to

the realisation of an ambitious six-year €1.5 billion

sector programme to improve primary education for

children with disabilities.

The Community collaborated closely through itsBangkok Delegation with the UN Special Envoy and

specialised agencies of the UN on the HIV/AIDS

problem in Myanmar and the sub-region. The EC

Delegation in Thailand also participated in the

Preparatory Committee of the 6th East Asia and Pacific

Ministerial Consultation on Children and worked on

the promotion of European education through the

establishment of the European Higher Education Fair.

In Lao PDR, the new EC Delegation held regular meet-

ings with EU Member States on political, Human

Rights and development co-operation issues. The EC

Delegation in Cambodia was involved in a range of

issues: mine clearance, food security, health and

education, private sector development and trade

reform.

In Indonesia, there was significant contact with national

and regional authorities, as well as other donors, on awide range of issues: presidential and legislative elec-

tions, forestry, sustainable forest management and

illegal logging, trade and economic co-operation,

Human Rights, regional integration, health, education,

the Vietnam reform

and the fight again

was developed wit

tive for co-ordina

directly to the inte

into EU working gr

sector (EC + Belgiu

and Belgium); priv

poverty reduction s

and Forest Trust F

Germany).

In Afghanistan the

Member States we

elections, justice, p

In the Philippines,

new projects/progrDevelopment Bank

EC sectoral appro

the competent nat

as well as the Asia

and GTZ.

In Nepal, co-ordina

Indicative Program

zontal programmes

matters, education

and energy. In Ind

role in promoting

support in health

World Bank and th

Development (DfID

such themes as de

Human Rights and

4.6.6. Overview Results-orientedMonitoring


74 projects and regional programmes in 18 countries

Education projects, part of the priority a

economic Support & Social Sectors, sho

mance rate in 2003 that is considerablyaverage of all projects monitored in the

particularlyhigh on effectiveness and impa



74 projects and regional programmes in 18 countries.

See table 13

Monitoring in the Asia region covered two areas with

great financial importance: Macro-economicSupport &

Social Sectors and Food Security. The average size of

a project monitored is considerably higher in Asia than

in other regions.

See table 14

particularlyhigh on effectiveness and impa

in this area contribute to Millennium De

Goal 2 (achieving universal primary educat

for children everywhere, boys and girls alike

(promoting gender equalityand empowerin

eliminating gender disparity in all levels o

by 2015).

Finally, the SARS crisis affected the efficie

jects in Asia, mainly in China.

2003 Priority area Number Number Total budget A

of reports ( 99 ) of projects (€ million) (

& programmes


2 Regional integration - - -

3 Macro-economic support & social sectors 28 20 536

4 Transport 2 2 26

5 Food security & rural development 42 36 529.2

6 Inst. capacity / good governance 34 12 161.3

Oth


4.6.7. Conclusionsand Perspectives

In summary, the European Union’s relations with Asia

have been enhanced throughout 2003, notwithstand-



have been enhanced throughout 2003, notwithstand

ing the difficult international context and the threats

posed, inter alia, by terrorism. The EU’s co-operation

instruments – for example the Rapid Reaction Mecha-

nism – continue to evolve in response to changing

circumstances.

Within the framework of the Union’s financial perspec-

tives up to 2006, relations with Asia will continue todevelop through regional and bilateral dialogue and

mutual confidence-building measures. While the over-

arching goal of co-operation will continue to be poverty

alleviation, the challengesof globalisation and the goals

of international peace, security and prosperity will also

remain central themes. Work continueson updating the

regulatorybasis thatwill reinforce the overall framework

and objectives of EU-Asia co-operation.

Areas of co-operation that currently show promise and

already feature in Country Strategy Papers up to 2006

include support for sector reform programmes. These

are mainly in the social sector, capacity-building in

the trade and investment and environment fields,

good governance and rule of law, and conflict preven-

tion/post-conflict support. Issues such as migration

and the fight against terrorism will receive increasing

attention in EU co-operation with the region.

4 | 7 Latin America

4.7.1. Introduction

While the year 2002 finished with a major economic

4.7.2. Evolution of EU co-operatio

The framework of the Community’s co-opeLatin America is defined by the conclus

Summits held between the Heads of



y j

and social crisis (Argentina) as wellas political turmoil

in some countries (Venezuela and Colombia), 2003

hinted at the beginning of a recovery for the whole

continent.

In terms of economythe growth rate was 3%, Argentina

being a major contributor. The improvement in the

economic situation permitted a fuller integration withthe world economy.

In December 2003 (January 2004 in the case of Costa

Rica) Honduras, Nicaragua, Guatemala and El Salvador

concluded a Free Trade Agreement with the USA. The

entry into force of CAFTA will depend on the ratification

process both in Central America and in the USA. At the

Cancun WTO Ministerial Meeting Latin American coun-

tries, with Brazil as a leader of the G-20 (the group of 20 developing countries), adopted a common position

representing their interests on the dismantling of EU

and US agricultural subsidies.

In Bolivia chronic discontent intensified throughout the

year and resulted in the resignation of the President.

In Venezuela social and political confrontation led to a

request for a referendum in the coming year. However

most countries in the region recorded an improvement

in the social climate in 2003. New leaders in Brazil andArgentina endorsed measures to encourage economic

growth, as well as initiatives to reduce poverty, elimi-

nate discrimination and promote the social, political

and economic well-being of the indigenouspeople and

other ethnic groups. Presidential and parliamentary

elections took place in Argentina and Guatemala.

Governmentsof Latin America, the Caribbea

and the European Union in 1999 (the Rio S

2002 (the Madrid Summit). These forumsw

the foundation of the EU-Latin America rel

The San Jose Dialogue brings together the

six countries that make up the Centra

Integration System (SICA): Costa Rica, EGuatemala, Honduras, Nicaragua and Pana

San Jose Dialogue Ministerial Meetin

launched negotiations on a new EU-Cent

Political Dialogue and Co-operation Agreem

two sidesmet later, in September 2003, in

of the UN General Assembly in New York.

The Rio Group, which comprises the other

Latin-American countries, held its XI InstitMeeting in 2003, stressing the need to

through closer politicaldialogue. An Andea

bringing together the EU and the five countr

Colombia, Ecuador, Peru and Venezuela) tha

the Andean Community (CAN) was establis

fringe of this group. Two meetings were he

in March in Vouliagmeni, Greece, where th

negotiations for a new EU-CAN Political Di

Co-operation Agreement was agreed; and in

in the framework of the UN General ANew York.

Mercosur: EU-Mercosur negotiations also

the Madrid Summit and work proceeded

2003 to complete the Interregional A

Agreement. The EU-Mercosur-Bolivia-Chile

Meeting in Greece reaffirmed the need to

political dialogue and underlined the im

rapid progress and of concluding the negothe Bi-regional Association Agreement b

EU and Mercosur.

Central America: the Madrid Summit in

results of the Doha multilateral trade negotiations. In

October 2003 the European Commission, on behalf of

the EU Member States, and the Andean Communityconcluded negotiations on this agreement, which was

also signed in Rome on 15 December.

4.7.4. Implem

Credit allocationconstantly over th

ments and payme



Mexico and Chile: both Mexico and Chile have devel-

oped strong bilateral links with the EU and major

agreements have been signed. For Mexico the

Economic Partnership, Political Co-operation and Co-

operation Agreement is now being implemented, and

the Third EU-Mexico Joint Council Meeting held in 2003

made a positive assessment of its enforcement. Asregards Chile, 2003 saw the implementation of the

Association Agreement: the first meetings of the

Association Council and the Association Committee

established under the agreement took place in 2003.

4.7.3. Programming

The Mid-Term Review of the Country Strategy Papers

was carried out in 2003. This review concluded thatoverall programming was still valid and the Commission

should concentrate its resources on implementation.

However, due to some major developments, the Mid-

Term Review concluded that there was a need to revise

the Strategy Papers for Argentina, Colombia and the

Andean Community (Regional Indicative Programme):

the new documents should be adopted in the course

of 2004. In Argentina the revision will take into account

the important changes in economic and social condi-tions. In the case of the Andean Community, the

strategy is still valid, but there is a need to increase the

allocation devoted to trade-related assistance, in

support of the Andean economic integration process

and regional efforts to combat drugs.

2003 budget rose s

from €208 million

There was also an o

the period, with an

a record amount

disbursed.

4.7.4.1. Institutistrength

of the stThe decentralisatio

tion of powers and

to local authorities

strengthening dem

and fighting again

inequities.

Two programmes h

are aimed at suppo

ening regional ad

forcing municipalit

regionalgovernmen

financing socialand

budgetary support

Latin American st

institutions. Awaredependent on mod

ties, the EC suppor

an effective and

(institutional stren

judiciary in Panama

that will contribu

(Uruguay).

The EC encouragesthrough the deve

Sector Policy Supp

mentary and recipr

equally important

Thirteen projects were financed by the European

Initiative for Democracy and Human Rights (EIDHR) in

Latin America for a total of €7.8 million: four in Mexico,three in Colombia, three in Guatemala and three

targeting the entire region. The projects involve the

4.7.4.2. Social development and develo

of the less prosperous regions

The Commission made a special effort tsome of the prevailing social crises of the



consolidation of democratic institutions, and support

for democratisation and the participation of civil

society in the decision-making processes.

As regards peace-keeping and Human Rights, restoring

peace in Colombia is a priority in the European

Commission’s co-operation with that country. The EC

supports efforts to find a solution to the ongoing armedconflict and to improving the Human Rights situation.

The first Peace Laboratory in Magdalena Medio

continued its activities to this end. In response to the

promising results witnessed by Commissioner Patten of

this first initiative, the second EU-funded Peace

Laboratory was launched in 2003. This will contribute

to creating lasting conditions of peace and life with

dignity for the inhabitants of these regions.

The reintegration of ‘internallydisplaced people’ is also

a priority of EU co-operation: this aims to achieve their

rehabilitation and reintegration into normal life, and

thus to mitigate the impact of civil conflict. Two initia-

tives were approved in support of this aim in Colombia.

The Magdalena Medio Peace Laboratories

The region of Magdalena Medio in Colombia, an areacomprising 29 separate and diverse municipalities, is

notorious for its poverty, violence and drug-trafficking.

The media frequently report clashes between paramil-

itary gangs and peasant self-defence groups, and the

illicit cultivation of coca leaves. Other dominant fea-

tures of thischaotic situation are the virtual absence of

civic institutions, extreme social inequality with a

marginalised peasantry, and lack of respect for Human

Rights and for the environment. To get at the roots of such a deep-set social dilemma, the EC is contributing

€34.8 million to a Colombian government initiative,

the ‘Magdalena Medio Peace Laboratories’. The aim is

to pacify the region through civic participation and

EU co-operation helped mitigate the im

economiccrisis in Argentina, through supp

services, as well as other countries affec

crisis, notably Uruguay, where the Union

social development of the poorest rural a

north of the country.

In the education sector, two ambitious inCentralAmerica were approved in 2003, one

the progressive development of governm

and management of education policies in

the other devoted to promoting secondary e

Honduras, particularly in those social g

favoured by development.

The last PRRAC

The Regional Programme for the ReconsCentral America (PRRAC), a huge programm

in 1999 as a response to the disastrous “M

cane which swept through the region, is co

end. The Commission added impetus to its

2003 to accomplish the final impleme

improve the management of the health and

services, aswell as water systemsand wast

Within the framework of the Millennium D

Goals, health measures were also undertato improve the drinking water systems

networks (Bolivia – preventing childhood

mortality).

Sustainable rural development projects

infrastructure and environment initiative

poorer areas and the reduction of inequa

also implemented in 2003: these included

enhance urban and economic services (Cpromotion of sustainable development, m

and preservation of natural resources (Ec

support for alternative development (susta

integrated social development – Mexico).

4.7.4.3. Trade-related technical assistance

and regional integration

Regional integration has consistently been highlightedas a priority objective for the Community’s relations

with Latin America. During 2003 several programmes

d t f t d t th th i t ti

As regards Mexico

trade-related policy

trade flows with thtries are capable of

that existing agreem

d ff ti



were approved to foster and strengthen the integration

process, complementing existing projects in this area.

On trade support the EU’s overriding trade-related

policy objective for Mercosur, Central America and the

Andean Community has been to strengthen the process

of regional integration.

Several projects and programmes supporting the

implementation of the future Association Agreement

with Mercosur are ongoing or have been approved:

• A customs co-operation project.

• A programme on statistical harmonisation, in which

Chile will participate, was concluded in June 2003

with a follow-up phase planned for 2005.

• In 2003, pursuant to a similar project earlier, aprogramme for harmonisation of technical stan-

dards was approved. These Technical Regulations

and Conformity Assessment Procedures will facili-

tate the free circulation of products within the

Mercosur member states, and between Mercosur

and the European Union. The project aims to reduce

the technical barriers to trade arising from national

technical and conformity assessments, and to har-

monise standardisation and verification practices.

Modernising the manufacturing sector, especially

SMEs, and improving its competitiveness is also an

objective of the Community’s cooperation with the

Mercosur countries. A project was launched in Brazil

with this aim, establishing a vehicle for the transfer of

successful European concepts, methodologies and

technological development and innovation know-how.

In the Andean Community , a trade-related technicalassistance project was approved in 2003. Its objectives

include the elimination of unnecessary trade barriers

between the Andean countries, the establishment of

a common customs code, and other measures aimed

and effective mann

to facilitate imp

Agreement conclud

programme takes

needs in a flexible

In addition, there

including an integrin Mexico, and a p

and development o

A programme wa

designed to increa

and civil society in

System (SICA) to p

and co-operation in

The EU also finance

gration. The projec

Suárez road in B

Bolivian exports an

countrywith Brazil

region, bringing to

Community.

4.7.4.4. Regiona

EC co-operation inrange of programm

• The Alßan Pro

programme for L

education and

tions and centre

covered by the

years and rep

€6.7 million. Athe 2004-05 a

17 October 2003

• The álfa projec

social integration, support of regulatory activities,

promotion of telecommunications standards, inter-

connection of Latin American research and trainingcentres and with the GEANT research network, and

the creation of an Information Society network.

22 contracts for a total of €55 million were signed

In Argentina support for community food

was provided by the EC on the initiative o

Bank. In Peru activities of the UNDP-adminiand Reconciliation Commission (TRC) were

by an EC grant.



22 contracts, for a total of €55 million, were signed

in 2003, including 19 demonstration projects in the

fields of local governance, education and cultural

diversity, public health and social integration.

• AL-INVEST: a contract to a value of €42 million to

promote co-operation between European and Latin

American companies was signed in December 2003between the EC and a consortium of private-sector

European and Latin American organisations. A total

of 41 contracts were signed in 2003 for a value of

€4 million.

4.7.5. Co-operation withMember States and other donors

A seminar on Social Cohesion in Latin America and theCaribbean was jointly organised in 2003 by the Inter-

American Development Bank, the largest lender in Latin

America, and the European Union as the largest donor

in the region: the event was designed to raise general

awareness among governments, internationalfinancial

institutions and donors on the urgent need to combat

social inequality. The seminar prompted a wide-ranging

debate on social cohesion, examining the extent of the

problem and the negative impactson development and

stability, analysing the different policy options for tack-ling the problem, and identifying potential strategies

for donors in support of government initiatives.

The seminar represented the first step of a wider

initiative by the Commission and the Inter-American

Development Bank aimed at encouraging Latin

American and Caribbean governments to improve their

policies on reducing inequalities and building more

inclusive societies.

Co-operation with the EU Member States all over the

region was assured through regular meetings with the

EC Delegations. In some cases, as in Guatemala, there

Water and waste infrastructures in Bolivia

from a project developed in collaboration w

Member and non-Member States, as well a

American Development Bank.

The Community will also contribute to the

for Democratic Development in Lati(PRODALL), in partnership with Latin Ameri

ments, the UNDP, and non-governmenta

national organisations.

In 2003, EIB lending for five projects loca

America totalled €254.3 million. €218.7 mil

four projects in Brazil and €35.6 million to

project in Central America.

4.7.6. Overview Results-orientedMonitoring

In 2003, 143 projects and regional programmes in

13 countries were visited.

Operations monito

good governance,

projects, are the sscore higher than

on relevance, eff

showing some varia



See table 15

The selected sample for monitoring in 2003 reflects the

increasing importance of financial and technical co-

operation, as well as budget lines for rehabilitation and

displaced persons.

See table 16

The priority area of food security and sustainable rural

development, with 62.8% of the total budget moni-

tored, is performing well although it has the lowest

score. Projects were less effective, with low scores for

activity timeliness and results achievement, affecting

implementation in up to half of all projects. Natural

disasters such as drought and floods, market volatilityand policy shifts were often cited as a reason.

showing some varia

the priorities of be

contribute to good


of reports of projects

& programmes


2 Regional integration - -

3 Macro-economic support & social sectors 34 344 Transport - -



7 Other 3 3


4.7.7. Conclusionsand Perspectives

The relations with Latin America will continue to

develop through regional and bilateral dialogues,

implementing the results of past Summits and those



implementing the results of past Summits and those

to be held. Discussions on future wide-ranging

Association Agreements with Central America and the

Andean Community, as well as the fostering of com-

mercial negotiations with Mercosur, will be a priority in

the agenda.

The Mexico Summit’smain objective (Guadalajara, May2004) will be to build on the bi-regional strategic part-

nership and tackle common challenges: contributing to

peace and stability, and fostering the development and

prosperity of Europe and Latin America by improved

democratic governance, deeper regional integration

and increased social cohesion, the main issue in the

agenda.

EC co-operation for the coming year will target thefollowing objectives:

• As regards Central America, the priority will be

focused on support for rural socio-economic devel-

opment, and decentralisation and education, in

particular, by means of the sector/budgetary

approach. In the case of Mexico, particular

emphasis will be laid on support for economic

reforms.

• As for the Andean Community, continued supportwill be given to its integration at the regional level

and within the world economy, as well as to socio-

economic development, transport infrastructures

and institutional support, especially in the justice

sector.

• The Southern Cone will continue to benefit notably

from ECeconomicand trade co-operation, mainly to

support regional economic integration.



5 | Feature – gover

peace, security



and developmen



5 | 1

Introduction

5 | 2

What is the EC/EU doing?

5 | 3

Conclusions

5 | 1 Introduction

5.1.1. Underlying principles

There can be no peace without development – and no

development without peace. Behind this seductive,

i l h li l d b b h l f

The root causesof conflicts and other forms

are very often linked with failures of

finding their origins in poverty. They often in

tutionalised corruptmanagement of oil, dia

other natural resources: a struggle to con

resource revenues lies at the heart of many

i fli d h ld k



simple phrase lies a complex debate about the role of

development assistance in addressing the twin chal-

lenges of peace and sustainable development. It is

commonly agreed that long-term development co-

operation is the best structural solution to address the

root causes, linked to poverty, of potentially violent

conflict. Funds properly targeted at security and gover-nance issues are not lost for development. They are

complementary agendas. Development activity aimed

at bringing benefits for the poorest sections of

society — in terms of ensuring access to food supplies

and drinking water, education, health, natural

resources, information, services, infrastructure, based

on long term social development policies such as

gender equality – can also be an effective tool for

addressing the root causesof violent conflict ( 101 ). When

politicalconditions do deteriorate in partner countries,

EU external assistance has played an important role in

supporting international initiatives to prevent the

outbreak of hostilities or to contain the consequences

thereof.

The EU, with the Community and its Member States, is

responsible for some 55% of Official Development

Assistance (ODA) globally, and some 63% of grant

assistance. It is, consequently, a potentially potentforce in addressing the root causes of conflict and

fostering stability after political upheaval. The impera-

tives behind thisapproach are overwhelming. Over the

last decade the world has seen genocide, ethnic

cleansing, the brutal rending of states, growing reli-

gious persecution, the ascendancy of international

crime and an unprecedented distribution of weaponry.

Many post-conflict developing countries are still in an

extremely volatile situation, and the violent crisesoften

emerge again. Victimsare mainlycivilians, not soldiers,

and the cumulative impact of years of development

activity can be wiped out as soon as violent conflict

erupts. Thusincreasing attention is focused on the rela-

ongoing conflicts around the world. Tack

and inequality should therefore be an essen

nent of any credible and effective securi

which may not be limited to addressing the

and must pay attention to the real factors

mine global, regional and in-country securi

to the emergence of ‘failed states’.

Security and a peaceful environment are ke

for the viability of any poverty-focused d

strategy. There is no development in chro

cure environments. State institutions hav

responsibility for ensuring that the approp

nance and security conditions, conducive to

environment, are met in a given country or

multilateraland regionalbodies playan im

in many cases.

5.1.2. Security system reformapproaches

The security system is responsible for e

security of the state (hard security) and/or

of the citizens (soft security). It is defined

encompassing: a) state institutions wh

formal mandate to ensure the safety of thits citizens against acts of violence and co

the armed forces, the police, paramilitary

intelligence services and similar bodies);

elected and/or duly appointed civil authori

sible for control and oversight of these insti

the Parliament, the Executive, defence min

judicial and penal systems).

The rationale for engaging with the securit

directly linked to overall development

Institutional capacity is essential to establis

the appropriate enabling environmentfor d

and for ensuring peace and security fo

5.1.3. Targeted peace and security initiatives

Other categories of interventions such as support to

peace mediation initiatives, to grassroots initiatives on

peace building and reconciliation, to strategies in the

f ti l l d i l ti f i ili

5.1.5. Approadifficul

The EC characteris

where there is a lac

to the objectives of

ti



area ofantipersonnel land mines, regulation of civilian

possession of small arms and light weapons, are

equally relevant to the task of ensuring a comprehen-

sive approach to governance, peace, security and

development. Fighting corruption and improving trans-

parency in state revenues for example – which are

crucial in a governance agenda and to the process of reaching development objectives – may also play an

important role in a security strategy.

5.1.4. Country ownership

Country-owned agendas on security, prepared in a

process led by the authorities and discussed with the

relevant in-country stakeholders, regional organisa-

tions and development partners, should increasingly

be seen as an integral part of national development

strategies. Country-specific needs, objectives and

priorities should be identified in this context in order

to building up institutional capacities and policies

oriented to improving service delivery in areassuch as

human security and security of the state, including

security sector reform, conflict prevention, conflict

resolution and peace-building, as well as crisis mana-

gement. These principles are increasingly being

applied by partner countries and donors, including theEC, in effective partnerships where the government is

committed to development objectives and to interna-

tionally agreed targets. Implementing these policy

principles is more problematic in situations of crisis,

including difficult partnerships and post-conflict

situations.

nance, corruption a

institutions that gua

conditions for livin

of these elements

situations where i

functioning or even

capacities for deensuring people’s

Donors cannot sys

until difficult partn

situations show a

risks related to isol

and terrorism gro

poverty, collapse o

‘spill-over’ effect of

countries or to the

possibility of achie

the Millennium De

ously affected if do

One means for prev

ment of good g

institutions. Devel

ening of “fragile s

most donors’ forei

5 | 2 What is the EC/EU doing?

5.2.1. Partnership and Co-operation Agreements

The EU addresses the root causes of insecurity through

a widerange of instruments particularly by supporting

of the “essential elements clause” of th

Agreement ( 104 ). The situation in Zimbabw

deteriorating in particular since the run

parliamentary elections in early-2000. G

mismanagement, fast-track land reform

drought have resulted in a grim economic p

was originally a political conflict has turned



a wide range of instruments, particularly by supporting

interventions that, especially in countries on the brink

of conflict, focus on hard and/or soft security matters,

on development as well as on institution-building.

Partnership and ownership are fundamental to

ensuring both effectiveness of co-operation in these

areas and the coherence of EU external action, the mostimportantasset of which is the permanent character of

its partnerships as well as their global coverage.

The EU has concluded structured, legally binding

Partnership and Co-operation Agreements across the

world. These range from the agreements concluded

with Russia and the former Soviet Union, and the asso-

ciation agreements with Eastern Europe and the

Western Balkans, to the accords underlying the

Barcelona Process with the Mediterranean countries

and the Cotonou Agreement. Partnership and Co-oper-

ation Agreements provide the most valuable, effective

and integrated frameworks for the long-term develop-

ment of political relations with partner countries; they

also permit comprehensive strategies through which

the EU and partner countries can address not only

poverty reduction, institution-building, corruption,

international justice and human rights, but also peace-

building and the means to tackle the root causes of conflict and security.

The EU and its partners agree that respect for funda-

mental Human Rights and democratic principles and

the rule of law underpins the internal and externalpoli-

cies of the parties and constitutes an “essential

element” of partnership agreements. In the event of a

breach, a range of measures can be considered, with

the provision that their application should respect the

principle of proportionalitybetween the breach and the

degree of reaction. These measures include: alteration

of the contents, reduction or suspension of co-opera-

tion programmes or the channels used, suspension of

was originally a political conflict has turned

serious economic downturn and a humanit

gency with serious spill-over effects for ne

countries. The political situation has furth

rated in the past few months: increasi

violence has been mainly linked to by-e

mass actions called by the opposition MoDemocratic Change (MDC), to the dist

humanitarian aid and to the implementa

fast-track land reform. Human Rights vi

particular arbitraryarrests and cases of inh

mentand torture ofmembers of the opposit

society organisations, have multiplied.

The EU has taken every opportunity to co

Government of Zimbabwe its concern at

political violence and ill-treatment of the

and civil society and, in the last months,

Declarations related to these matters: a dec

10 February 2004 called on the Governmen

fundamental rights, urging it to engage in

meaningful dialogue with internal stake

solve the current crisis.

This issue is equallybeing broughtto the di

African partners at sub-regional level. Thpolitical dialogue hasnot until now been fu

as a lever on Southern African neighbourin

to maintain pressure on Zimbabwe or at

African endorsement of President Mugabe

should however be confirmed as the right

dialogue on Zimbabwe. At its last Hea

Summit in Dar es Salaam in August 2003

publicly critical of EU sanctions on Zim

called for their lifting. SADC also indicated

ness to continue to work with Zimbabwe

encourage and sustain positive developm

search for lasting solutions.

On the occasion of the September and November 2003

SADC/EU Joint Committee meetings, the EU communi-

cated to its SADC partners the kind of measures,

assessed against clear benchmarks, that it would

consider to be positive steps towards the normalisa-

tion of relationswith Zimbabwe. The EU has requested

the SADC Organ to take initiatives on the issue and

5.2.3. Sectora

Very often, “confli

contribute to delive

examples illustrate

• Water sector pr



the SADC Organ to take initiatives on the issue and

share its conclusions. On the other hand, the South

Africa-EU political dialogue meeting in Pretoria on

8 December 2003 agreed to include the Zimbabwe

issue in the agenda of the dialogue between both

parties; the EU is supportive of the idea ofsounding out

Zimbabwe Government willingness to accept ‘bench-marks’ on core issues such as democracy, rule of law

and Human Rights, as concrete steps for measuring

progress and convergence points for a constructive

dialogue. The EU position, which iskept under constant

review and decision, applies until 20 February 2005.

5.2.2. Improving understanding:research and use of indicators

Understanding the root causes of conflicts and the

obstacles to reconciliation is a key to preventing

further violence and reaching lasting peace agree-

ments. An inaccurate diagnosis of the political and

socio-economic context of a development intervention

can mean that projects exacerbate latent conflict. A

sensitively designed development programme,

however, can contribute to stability while at the same

time delivering acceptable results when measured

against traditional development indicators. Researchspecifically aimed at understanding what can trigger

conflicts and whatoptions can be developed to prevent

or mitigate them isneeded; itcan contribute to a better

understanding of the economic and political tensions,

as well as the social and psychological factors, that

cause conflict. Developing knowledge in this area will

improve capacity to anticipate and address crises, as

well as prevent violent conflicts within societies.

The Commission has developed a checklist of the root

causes of conflict and early warning indicators. In

preparation for European Council debates on potential

conflict issues Country Conflict Assessments (CCA) for

Water sector pr

Whilst such pro

through the pro

a primaryobject

integrate confl

access to water

identity groupsstakeholders in

disputes over

Irrigation Develo

(IDP-MWR) in N

project which h

deteriorating se

launched by the

the security forc

than 8 000 lives

to which devel

Midwestern Reg

to finding a bal

recommendatio

prioritisation o

objective, atten

to marginalised

exploit the pote

the establishm

civil society.

This experienc

expertise in the

planned €45 m

development a

Region. Indeed

victims of the

crucial to avoi

development p

sening socio-e

further violence

• Rehabilitation

the medium-term planning of rehabilitation, recon-

struction and nation-building in the country.

These programmes contributed to: (i) the early re-

establishment of the Afghan interim/transitional

authority; (ii) the staffing and equipment of line

ministries and the provincial-level offices of central

property rights, local populationsloo

other than governments to perform

governmental functions; seco

resources attract outside groups

enter into conflict with local peop

ethnic minorities.



st es a dt e p o c al le el o ces o ce t al

government, 16 Kabul ministries and 8 district

administration officesbeing rehabilitated; (iii) work-

shopsand training for Afghan officialsto strengthen

their policy-making and financial and budgetary

management capacity with, in addition, over 1 000

Afghans receiving information and communicationtechnology, 25% of them women; (iv) school re-

openings with 20 000 teachers employed; (v) mine

clearance of affected territory (one million m2

cleared in the first half of 2002); (vi) the develop-

ment of professional and independent media in

Afghanistan, including sponsorship of a profes-

sional news programme on state radio, training for

more than 400 journalists, over 50 information-

processing workshops for journalists and other

media staff, a country-wide distribution network

with 400 points-of-sale for the printed media, an

information and awareness-raising campaign

reaching over 500 000 people in remote areas out-

side Kabul; (vii) the rehabilitation and equipping of

kindergartens, schools and healthcare centres, the

output of a civil-military co-operation project which

enhanced confidence between the Kabulpopulation

and the international military force in Afghanistan;

and (viii) expertassessment missionsand donor co-ordination meetings in the context of longer-term

reconstruction programming by the Afghan author-

ities and the international community.

• Issuesrelated to natural resources management are

often a key determinant of violent conflict – The

extent to which profits from natural resources are

driving violentconflicts is only just becoming widely

understood.

– A lot of interesting work is currently going on in

this field, for example investigating the link

between forests and violent conflict. There are

Two practical examples of how

progresson the forest/conflict issu

use of “root cause of conflict”

covering both environment and co

highlight such links during the pr

process, and b) the Rapid Reaction (€30 million in 2003) to deploy “con

tion assessment missions”. Such

Indonesia and the South Pacific ma

recommendations on resource ma

The Commission needs to make m

opportunities offered at the po

(United Nations, African Union, W

bilateral) to pursue objectives on tig

tive frameworks, corporate social re

standards and sanctions.

– The EC is equally addressing th

through country and regional develo

grammes and through wider policy

• The EIB is contributing to the funding fo

Cameroon oil pipeline initiative. The

governance measures attached to th

ensure that the Chad Government’s prspent on poverty and human dev

although how successful this will be

be seen.

• In the Central Africa/Great Lakes r

Commission is dealing with conflict i

day-to-day basis, but lacks the reso

expertise to address all the different elem

donors working together cannot achi

recent DEV/EuropeAid seminar for staff

these regions looked at how to integr

prevention in other activities.

PR Lao) with governmentsfrom the major consumer

markets (Japan, Europe, the United States and

China). An identification mission was recently

launched to prepare a supporting FLEG programme

in Indonesia. With a total grant contribution of

€500 000, the EC will also be the largest donor to

the upcoming Ministerial level meeting of the

The Partnersh

(supporting res

the Partnership

projects of natio

tified by the Part

up to €13.3 mill

Reform has grea



p g g

Africa FLEG, which will include specific discussion

of forests and conflict.

• The Commission is also working on an Action Plan

for Forest Law Enforcement, Governance and Trade

(FLEGT). Measures under consideration includeestablishing a mechanism to verify the legality of

timber imported into the EU; new legislation to

restrict imports of illegal timber; the launching of

international efforts to improve multilateral co-

operation on this issue; and capacity-building and

other support to wood-producing countries that

agree to co-operate with the EC on this issue.

5.2.4. Targeted initiatives

Development co-operation provides powerful instru-

ments for addressing security-related issues in cases

of standalone governance, peace-building and security

initiatives for development which, by definition, cannot

be easily integrated in a wider sectoral programme but

are particularly important in situations demanding

higher-profile support from the EC in the context of a

given political process.

• Governance – In Indonesia the institutional changes

since 1999 brought governance issues to the fore-

front of the development agenda. The EC decided

to increase the focus on good governance in all

new interventions with an indicative programme

of €70 million committed for 2002-2004. This

approach is cross-cutting severalareasof activities,

including the social services in the education and

health sectors, justice reform and strengthening the

rule of law. In particular, the EChas been supporting

an initiative aiming at bringing good governance to

the top of all development sectors. The Partnership

for Governance Reform is a vehicle for dialogue and

g

and people toge

supports local

good governanc

example, suppo

to produce com

plans on legalparent and pa

encouraged a P

religious group

constituency fo

corruption.

• Reform of the s

a range of activi

support for imp

more focused o

as the police.

– Mostof EC a

giving sup

areas such

tion of the

improveme

and ensurin

force; strenlegal prote

national la

National Om

whole strat

(€93 million

create and

for the imp

namely bo

society in

ensuring th

those respo

coherence

tives in Gu

– A €500 000, 20-month programme of support

to the Royal Solomon Islands Police started in

May 2003. It provides leadership for reform of

the police force with the aim of strengthening

its operational effectiveness. The main purpose

is to build a cohesive and disciplined force

which has public confidence and can uphold

support to the Norwegian-led internation

Monitoring Mission.

• Linking Disarmament, Demobilisation

sertion (DDR) to long-term developme

contributions to the Multi-Donor Trust F

for the Re-insertion package in the S



law and order in the country. The expected

outcome is a well organised, efficiently struc-

tured and professionally competent police

force.

– Following an agreement with the OSCE, as of February 2004 the EC is supporting under the

Rapid Reaction Mechanism the multi-donor

funded, two-year OSCE Police Assistance

Programme in Kyrgyzstan. The general objec-

tive of this is to enhance the effectiveness of the

Kyrgyz police forces when preventing conflicts

and dealing with organised crime, in full respect

for Human Rights and the rule of law. RRM-

funds have been allocated to institutional and

technical capacity-building in the areas of

investigation, information analysis, community

policing and non-violent public disorder control,

to a needs assessment of a broader police

sector reform programme for Kyrgyzstan, and

to regular donor co-ordination.

• Anti-terrorism capacity-building – The EC has on-

going programmes which are providing technical

assistance for the implementation of SecurityCouncil resolution 1373 in fields such as police and

law enforcement work, border management and

combating illegal arms trafficking. Indonesia, the

Philippines and Pakistan have been selected as

pilot countries for a more concerted approach and

needsassessmentmissions have identified specific

areas for action in those countries.

• Supporting confidence-building measures – When

a ceasefire agreement was reached in Sri Lanka in

February 2002, following over 20 years of fighting,

the EC responded with a programme of assistance

to consolidate the peace process. This focused on

DDR programme for the period from 20

amounted to €12.2 million. This period

re-integration phase of the DDR program

Leone. The MDTF started operating in

World Bank administered the MDTF, whi

mented by the United Nations MissioLeone (UNAMSIL), in co-ordination with t

Committee for Disarmament, Demobil

Reintegration (NCDDR). The Commission

to support the transition from post-confl

rehabilitation to longer-term developm

gies. When the multi-donor DDR p

formally ended in December 2003, E

support to resettlement and reh

continued: €25 million from the EDF wa

to a specific programme due to start i

linking relief, rehabilitation and de

activities. In 2003 the European In

Democracy and Human Rights continu

Human Rights and national rec

programmes, including support to the

Reconciliation Commission and to the S

for Sierra Leone. Resuming impleme

development co-operation after the arm

ended in 2001, the Commission is alsopost-conflict budget support, rehab

transport infrastructure and support to

sector.

5.2.5. Africa: interventions at country and regional level;the Peace Initiative for Africa

The link between governance, peace, security and

development, as wellas the importance of ‘ownership’,

are particularly relevant in Africa. The continent as such

• Liberia: suppor

severely affecte

that erupted in

has been close

using differen

disposal. First

Mechanism, th



is getting politically engaged and developing its own

capacities to intervene. The new peace and security

agenda of the African Union provides the political

framework in which Liberia now, and hopefully Côte

d’Ivoire and Burundi in the near future, will be good

examples of this new, strong and political determina-tion of African leadership to tackle complex and violent

crises.

• Support to the African Union – An EC-financed

programme in support of the AU peace-building

and transition activities was signed on 2 April 2003.

This programme’s objectives are, in the first place,

to fund the operational activities of the Peace and

Security Council and, secondly, to work on AU

capacity-building in the transition period. This

support programme is based on the AU indicative

work programme on peace and security issues and

it will primarily finance AU mediation and peace

monitoring activities.

• Conflict Prevention, Management and Resolution

(CPMR) programme in Eastern and Southern

Africa – Countries in the region have for some years

come together to pursue joint efforts to attaineconomic growth and sustainable development

through regional integration, using trade and foreign

direct investment. One of the major setbacks to

these efforts is the persistence of armed conflict,

which has resulted in the total destruction of nation

states such as Somalia, destruction of the environ-

ment leading to drought and famine, destruction of

infrastructure, displacement of people leading to

refugee crises, and diversion of funds from devel-

opment priorities to financing conflicts. The €16

million CPMR programme, due to start in 2005, will

support the development of a CPMR framework

harmonising the various initiatives and mechanisms

the EconomicCo

the organisation

led to the signin

ment between t

and civil society

Secondly, in vie

in Liberia follo

European Coun

2003 to make

European Deve

process. These

the ECOWAS m

and also help

Monrovia, sinc

responsible for t

the peace agre

taken on an amo

tance to the

Reintegration a

support the Go

and to finance l

ties. The institut

the financing o

ating agencies aoutcome of the

dation for furth

Thirdly, the Euro

political dialog

conclusions of

and 97 of the C

Council Decisio

sions contain

Government in t

racy, rule of la

against corrup

progress observ

( 105 )

Charles Taylor came to power by force in 1990 and was electedPresident in 1997. Rebel groups

were fighting to overthrow Taylor between 1990 and 1997 and

again from 1999. Respect for therule of law, democracy and

Human Rights have beenminimal on all sides. There have

been reports of resource- plundering (diamonds, timber),

endemic corruption and ethnic problems. Following the rebels’

advance in 2003 and under pressure from the internationalcommunity, the Government of

Liberia agreed to come to thenegotiation table. Peace talks

held under the auspices of ECOWAS and financed by the

European Union have beenunder way since 4 June 2003.

In the framework of these peacetalks a cease-fire agreement was signed between the belligerent

parties on 17 June 2003.Mandated by UN Security Council, ECOWAS started with

the deployment of a peace-keeping force on August 2003to help enforce the cease-fire.

Under pressure from theinternational community and in

accordance with the agreementsreached in Accra, Charles Taylor

stepped down as President and handed over power to

Vice-President Moses Blah.

The peace talks are still ongoingin order to draw up a

comprehensive peaceagreement that should include

the creation of a transitional

• Côte d’Ivoire: contribution to the financing of the

peace-keeping force (ECOMICI) – Since a coup

attempt by rebel soldiers on 19 September 2002

and the subsequent de facto partition ofthe country

between the North and West controlled by the rebels

and the South under Government control, the

country has been facing the most severe crisisof its

hi t (106) Th C i i d id d i D b

While Africa is taking up this formidable

Europe should not turn its back. Cur

European Commission is attempting to b

partnership between the two continents

the two continental organisations. This str

nership isbased on shared political concer

range of areas, such as security, stability,

d S ti Af i i t



history ( 106 ). The Commission decided in December

2003 to support the ECOWAS peacekeeping force in

Côte d'Ivoire (ECOMICI) with a €12.5 million contri-

bution from the European Development Fund. This

contribution will be used to pay the per diems of

ECOMICI soldiers which account for two-thirds of total costs. Bilateral contributions of EU Member

States or third parties will provide the remainder of

the contributionsnecessary to cover those costs, for

example the fuel for militaryvehicles, thatcannot be

supported through the EDF. The ECOMICI force of

1 500 troops is deployed in the country since March

2003 as a result of the Marcoussis agreements and

in accordance with UNSC Resolution 1464. In

contrast to UN peace-keeping forces such as those

deployed in Sierra Leone and Liberia, for which the

UN has a specific budget, ECOWAS can only finance

these operations on the basis of donors' ad hoc

contributions. Following the UNSC Resolution 1528

of 27 February 2004 sending UN troops(6 240 soldiers)

to Côte d’Ivoire, ECOMICI troops were all “blue-

helmeted” on 4 April2004 and are now there as UN

troops paid by the UN.

• Burundi: support to African-led peacekeeping oper-ations – Burundi hasbeen deeply affected by armed

conflict since the start of the civil war in 1993 ( 107 ).

The EC granted €25 million from the European

Development Fund to support peacekeeping opera-

tions in Burundi under the authority of the African

Union (AU) in order to: (i) offer urgent assistance to

the implementation of a fragile peace process that

has recently shown positive results; and (ii)

promote a return to stability and national recon-

ciliation. This peacekeeping operation shows the

determination with which African leaders are

addressing conflict resolution on their continent.

About 2 800 peacekeepers are currently deployed

and governance. Supporting Africa in rest

is a top priority in this partnership. The A

in Maputo (July 2003) adopted a decision

“the EU to examine the possibility of setting

Support Operation Facility (PSOF), to f

support and peacekeeping operationsunder the authority of the AU”. Thereupon,

of Ministers of the EU invited the Com

present proposals on the subject in order t

appropriate follow-up. The Council ap

Commission’s proposal that €250 millio

European Development Fund be used as a

mechanism to finance an “African Peac

which has three general objectives:

• Ownership – the Commission supports

its institutions in addressing African co

stimulating the search for an African

solution. All operations supported wil

under the political responsibility of the

be mandated through decisions of its

Security Council. In doing so, not only th

but also the political capacities of the

reinforced.

• Encouraging African solidarity – at t

Summit, the African Heads of State

Facility to be “based on the principle o

among African countries and should b

from resources allocated to each Af

under existing co-operation agreemen

EU”. By contributing from their own

African countries recognise that peace

of them.

• Creating conditions for development– t

no development without peace and s

therefore there should be no trade-o

of normalcy and economic activity. It would further-

more open the door to more long-term support by

the European Commission, EU Member States and

other donors in resuming normal development aid

and reversing the downward spiral very often linked

to conflict situations.

5 2 6 Lessons learned

part of the prob

the matter in the

current and p

should take pla

resource issues

ground analysis

where they are

emphasis shou



5.2.6. Lessons learned

• Security and development are often linked. The EC

is developing a holistic approach to governance,

peace, security and development through a compre-

hensive policy dialogue with partner countries andregions: the mission is to contribute to improving

security at the national, regional and global levels,

to build partners’ institutional capacities, and to

achieve the ultimate development policy objective

which is poverty reduction.

• The EC is already well advanced in exploring new

ways of making external assistance effective in

tackling crises, by using it in a flexible way, adapted

to partner country needs, and respecting the prin-

ciple of ‘ownership’. Further developmentis needed

to ensure that the insights given by early warning

mechanisms and conflict prevention assessments

can be reflected in both EU long-term assistance

and emergency programmes. Because of the

specific expertise available within Member State

administrations, the co-ordination of EU and bi-

lateral programmes to support security sector

reform is of particular importance.

• The EU has significant comparative advantages as

an actor in this field. These stem not only from its

status as an object lesson in the promotion of secu-

rity through regional co-operation, but also from its

nature as a political actor with long-standing insti-

tutionalised partnerships with third countries,

backed by significant financial resources. These

structures recognise that security and peace-

building are lasting endeavours, because of which

it is essential to build long-term programmes with

partner countries and not focus exclusively on the

management of crises.

emphasis shou

ment of these

countries’ own

from which don

• Need to reinforbe done to ma

workmore effic

achieve the M

global peace an

between the Br

the UN, but als

partners inclu

expertise of the

convening pow

the UN needs to

mandate. The c

and developme

organisational s

• A clear distinct

financial resour

those used for o

rity and politica

themselves to Assistance (ODA

coverage in re

conflict, peace,

will more clear

activities in the

may benefit de

which focuses

poverty reducti

purposes are no

isation of milita

into the econom

facilities from m

Discussions co

5 | 3 Conclusions

Governance, peace, security and development are

interlinked and should be jointly taken into account inthe context of the regular dialogue with partners at all

levels, including when co-operation strategies and

programmes are discussed, implemented and

assessed Governance relates to the state’s ability

The EU SecurityStrategy will have an import

on the way the EU develops as a political

world. It may create some tensions in the a

resources between the long-term and shortof EU external assistance. However, in gen

if the EU is able to be a more effective po

this willstrengthen the effectivenessof its p

in building peace andsecurity Significantp



assessed. Governance relates to the state s ability

to serve its citizens in a responsive and accountable

manner, with a view to ensuring equitable and sustain-

able development. The state must in this context

ensure both people’s and the state’s security, as well

as contribute to regional stability and global security.

Links between security and development are particu-

larly evident in post-conflict situations. Where state

institutions are either non-functioning or even non-exis-

tent, the EU contributes to sustainable peace and

security through its support for governance reform,

following an approach linking relief, rehabilitation and

development. The objective is to help the partner

country meet the very basic conditions of stability and

build a minimum institutional framework, in order tohave a chance of attacking poverty and implementing

a longer-term development agenda.

Crises often get out of hand, deepen and become

protracted. This is not only because of their cultural or

ethnic nature, nor because they have profound and

complex origins in society, but also because the inter-

national community – which does not always have a

homogeneous approach to a crisis – may be insuffi-ciently interested or capable of providing the right

support in a given situation.

Efforts to ensure co-ordination between donors but

also with partner countries should be pursued. Difficult

partnerships, post-conflict situations, conflict-prone

countries and failed states represent a major challenge

for the international community as a whole. Donors

should aim to reach shared objectives, to develop

harmonised approaches and agree on the expectedoutcomes – if possible ‘owned’ by partner countries.

Fragmentation, which often has negative effects in

‘normal’ situations, can be even more harmful in diffi-

in building peace and security. Significantp

been made in ensuring that the EChas fina

ments that can react in a timely and effec

political instability. The Commission’s prop

CommunicationBuilding ourcommon Futur

streamline these instruments further and to emphasis on Peace and Security.

At the multilateral level, the experience

lessons learned, especially in the recent pa

that policies are far removed from practice a

right instruments are simply not yet there

has a strong UN commitment, and effort

strengthen EU-UN co-operation should con

The African Peace Facility is a good exampmake financial instruments work to supp

initiatives, politically engaging a whole c

developing its own capacities for interventio

ling complex and violent crises. The Afr

Facilityenhances ‘ownership’, encourages

darity and pavesthe way for development. I

this Facility the Commission is breaking n

First, the Commission is developing a tota

of co-operation and partnership, specifickeeping and security. Secondly, the Com

for the first time creating a framework for s

co-operation on the new agenda of the Afr

By dealing with the whole of Africa, the C

aims to contribute to the acceleration of

integration process. As Africa is now takin

hand, Europe should be at its side. Sustain

is a right for everyone.



6 | Annexes



6 | 1

MDGs

6 | 2

Harmonisation of procedures

6 | 3

RAL

6 | 4

Internal Audits

6 | 5

EC communications referring

to external assistance

6 | 6

EC assistance not covered

by the Report

6 | 1 MDGs

The Millennium Development Goals are an ambitious

agenda for reducing poverty and improving lives thatworld leaders agreed to at the Millennium Summit ( 109 )

in September 2000. For each Goal one or more targets

have been set, most for 2015, using 1990 as a bench-

mark. Below is the list of the eight Goals and their

6. Combat HIV/AIDS, malaria and other d

Target for 2015: halt and begin to reverse th

HIV/AIDSand the incidence of malaria and diseases.

Forty million people are living with HIV, in

million newly infected in 2001. Countries



corresponding targets.

1. Eradicate extreme poverty and hunger

Target for 2015: halve the proportion of people living onless than a dollar a day and those who suffer from

hunger .

More than a billion people still live on less than

USD 1 a day: sub-Saharan Africa, Latin America, the

Caribbean and parts of Europe and Central Asia are

still below the poverty line.

2. Achieve universal primary education

Target for 2015: ensure that all boysand girls complete

primary school.

As many as 113 million children do not attend school,

but the targetis within reach. India, for example, should

have 95 percent of its children in school by 2005.

3. Promote gender equality and empower women

Targets for 2005 and 2015: eliminate gender dispa-

rities in primary and secondary education preferably by

2005, and at all levels by 2015.

Two-thirds of illiterates are women, and the rate of

employment among women is two-thirds that of men.

The proportion of seats in parliaments held by women

is increasing, reaching about one-third in Argentina,

Mozambique and South Africa.

4. Reduce child mortality

Target for 2015: reduce the mortality rate among chil-

Senegal, Thailand and Uganda have show

spread of HIV can be stemmed.

7. Ensure environmental sustainability

Targets:

• Integrate the principles of sustainable d

into country policies and programmes

the loss of environmental resources.

• By 2015, reduce the proportion of peo

access to safe drinking water by half.

• By 2020 achieve significant improvem

lives of at least 100 million slum dwelle

More than one billion people lack acce

drinking water and more than two billion

tion. During the 1990s, however, nearly

people gained access to safe water and

number to sanitation.

8. Develop a global partnership for devel

Targets:

• Develop further an open trading an

system that includes a commitment to g

nance, development and poverty re

nationally and internationally.

• Address the least developed countri

needs, and the special needs of land

small-island developing states.

• Deal comprehensively with developing

debt problems.

6.1.1. Improving statistical date availability and reliability

The Commission began an analysis of progress towardsrealisation of the MDGsin last year’s Annual Report on

the basis of a core set of ten indicators. While the

analysis uses data provided by international organisa-

tions, the questionable quality of this data at both

i t ti l d ti l l l i l di l i b

6.1.2. Measuthe MilGoals

The following para

indicators, groupe

hunger, education

New information is

i di t ith th



international and national level, including analysis by

gender, weakens the credibility of the international

community’s effort to measure progress towards the

MDGs ( 110 ).

In 2003 the Commission therefore decided, in addition

to work already carried out at country level to

strengthen statistical systems, to engage more actively

at international level in initiativesto improve data avail-

ability and quality. PARIS 21 ( 111 ) is the main forum that

ensures co-ordination of various international initia-

tives in this field. The EC agreed, together with DfID and

the World Bank in the framework of the PARIS 21 forum,

to co-finance a study which illustrates various weak-

nesses of the current dataset and highlights possibleareas for immediate improvement. A complementary

study on six countries is expected during 2004.

Although a lotof progress has been made, reporting on

the MDG indicators is very far from satisfactory. The

main tasks ahead are to improve poor data quality in

international databases, and to improve co-ordination

of donor use and support of national statistical

systems. Agencies and organisations are still com-peting with differentdefinitions of MDG indicators (e.g.

literacy rate) and methodologies for data collection

(e.g. the under-five mortality rate). These figures may

also be in conflict with national figures produced by

governments. Many MDG indicators are simply not

measured, for example the proportion of population

using solid fuels, the proportion of total developed-

country imports from developing countries and from

LDCs admitted free of duty. There are also problems

with ratios calculated by agenciesdue to differences inthe use of population data. Finally, data on some indi-

cators are calculated from very weakstatistical models

(e.g. prevalence and death rates associated with

indicators with the

rate and the propo

to drinking water. F

and/or the UNICEF

It should be notedthese ten indicator

in a few cases 20

data for the ten i

towards the MDGs

( 110 )www.un.org/milleniumgoals/

( 111 )PARIS 21 stands for PARtnershipIn Statistics for development in

the 21 st century and is a new international process launched

6.1.2.1. Poverty and hunger

1. Proportion of the population below USD 1 a day

The first selected key indicator is used to measure

progress for the first MDG: “eradicate poverty and

extreme hunger”. The target is to halve, between 1990

and 2015, the proportion of people whose income is

less than one dollar a day The scarce data available

According to the Word Bank, the global p

has fallen since 1990, but this progress

“There were at least 137 million fewer peo

extreme poverty at the decade’s end than ning”. If projected growth remainson track,

poverty MDG will be met globally, and 366 m

people will escape extreme poverty. But th

largely by rapid progress in Asia. Even with

pre transition poverty levels in Europeand



less than one dollar a day. The scarce data available

for this indicator does not allow us to show the evolu-

tion in the countries towards the target: for this

reason table 17 shows graphics from the World Bank.

pre-transition poverty levels in Europe and

as well, in Sub-Saharan Africa more than

people will continue to live on less than USD

1990 1995 2000 2005 2010 2015 2020

30

25

20

15

10

5

0

35

29.4

23.52

14.5 14.7

1990 1995 2000 2005 2010

2.5

2

1.5

1

0.5

0

3

2.1

1.7

2.8

40

30

20

10

0

50

41.5

31.9

32.22

4

3

2

1

0

5

1.41.12

4.2

1.3

0.7

Table 17 | Progress toward the poverty goal and projections to 2015

East Asia and Pacific Middle East and North Africa

Europe and Central Asia South Asia

2. Prevalence of child (mal)nutrition below

five years of age

Data for child malnutrition are available only up to2000, and even then are somewhat patchy. However,

the data that are available, while not sufficiently

complete and robust to sustain extensive policy conclu-

sions, are nevertheless indicative.

6.1.2.2. Educatio

The education MD

education and prom

ering women. Thmeasure progress

3. Net enrolment

The target is to ens



Overall there was encouraging progress between 1995

and 2000 and since then. Globally, child malnutrition

declined. The most powerful force behind this change

was China, as the world’s most populous nation: itrecorded a substantial drop in child malnutrition (from

a moderate base of 13% to 10%). Another major factor

was India’s reduction from 53% to 47% in its child

malnutrition rate. However, even without these two

there was sufficient overall reduction to be on target

to meet the MDG globally: the population-weighted

average reduction over the period 1995-2000 was

just sufficient to meet the target of halving the rate in

25 years.

Within thisglobal figure, however, progress in countries

varies widely. Income is of course a significant influ-

ence on child malnutrition. Among the highly success-

ful countries in reducing child malnutrition was

Mauritania, which has cut malnutrition from 48% in

1995 to 32% despite relatively modest economic

growth. Other highly successful countries included

Indonesia and Vietnam. In contrast, some countries

suffered considerable worsening, such as Argentina,Cameroon and Liberia.

The target is to ens

and girls alike, wi

of primary schooli

to capture the edu

ciency. It shows tschool-age actua

compared to the

(under-aged and o

the calculation).

Unfortunately, scho

reported (enrolmen

dance or dropout

exaggerate enrolm

tive to do so; childrbe included in the

be inaccurately est

in the primary sc

complete the pri

reasons analysis in

of pupils – boys an

cycle of primary sc

4. Primary education completion rate

This indicator monitors education system coverage and

student progression. It is intended to measure humancapital formation and school system quality and effi-

ciency. It gives, for a specific academic year, the ratio

of the totalnumber of students successfully completing

(or graduating from) the last year of primary school to

the total number of children of official graduation age

All regions registered an improvement in

balance between the early years of the 199

period 1998-2000. However, it should be no

targetdate for achievement of gender equitybut 2005 for primary and secondary educ

America, East Europe/Central Asia and the

on target to meet this goal, but all other

likely to achieve this goal sometime after

deadline. While great strides have been ma



the total number of children of official graduation age

in the population. Unfortunately, no new or additional

data on primarycompletion rateshas become available

since the last annual report, where it was stated that

most countries in Africa had very low completion rateswith many less than 50%.

Regional averages for the other indicators have been

estimated (see table 18, page 130) ( 115 ) and confirm

trends noted elsewhere. First, while some regions are

on track to achieving the education MDGs, Africa, Asia

and the South Mediterranean and the North & Middle

East are off-track. If the present trend continues these

regionswill not achieve the MDG by the target date and

a timeframe beyond 2015 may be needed for somecountries. Second, while there were improvements in

net enrolment ratiosin Africa and the Pacific, the useful

gains in Africa are tempered by the fact that the region

as a whole lags considerably behind all other regions

and that over a quarter of the African countries, many

from the Sahel and the Horn of Africa, are seriously off-

track. In these countries an extension of the timeframe

beyond 2015 will not be enough to reach the MDG;

substantial remedial programmes and additionalresources will be required to accelerate their perform-

ance and to bring them on track.

5. Ratio of girls to boys in primary,secondary and tertiary education

The target is eliminating gender disparity in primary

and secondary education by 2005 and at all levels of

education by 2015. The indicator is the ratio of the

number of female students to the number of malestudents enrolled at all levels in public and private

schools. It attempts to capture the fairness and gender

equity of educationalopportunitymeasured in terms of

deadline. While great strides have been ma

countries through special girls education p

(Bangladesh), there are still countries in As

& Middle East and Africa, where girls make

halfof the pupils. The region with the largestof it is Africa. In spite of notable progress, o

of ten pupilsare girls in one-quarter of Africa

The situation is made worse by the fact th

the very countries where only half the child

attend primary school, ofwhom only one out

girls. Besides, girls do not often complet

education cycle, frequently dropping out o

puberty. As a consequence, girls’ enrolm

secondary and tertiary education decline

the gender balance in the upper levels of thsystem is heavily biased in favour of boys.

6.1.2.3. HealthThe three MDGsin health are: reducing chil

improving maternal health and combating

malaria and other diseases. Four indicato

to measure progress.

6. Under-five mortality rate

The under-five mortality rate is the main indicator for

the MDG of reducing child mortality. It refers to thenumber of children who die before their fifth birthday

out of 1000 who are born alive. The target for indica-

tors 6 and 7 is to achieve a two-thirdsreduction of this

rate between 1990 and 2015.

At current rates of p

achieved in Latin

possibly in the Ba

very slow, and in Athe early 1990s ha

progressin these tw

target will not be r

to the world pop

mainly in Southern



Under-five mortality rates vary from nearly 300 in some

least developed countries to below 10 in OECD

members and some developing countries such as

Malaysia, Cuba and Costa Rica. The high rate of deaths

in most developing countries is typically due to commu-

nicable diseases (such as pneumonia, malaria,

measles, diarrhoea and increasingly HIV/AIDS), nutri-

tional deficiencies, and conditions related to childbirth

and very early life. These diseases and conditions in

turn occur and cause death because of a variety of

poverty-related factors such as inadequate food, poor

housing, lack of sanitation, poor hygiene, and lack of

access to adequate health care. Most countries with

particularly high rates have also been affected byconflict in the past decade, notably Sierra Leone,

Afghanistan and Angola.

y

cant increases in u

Most of these co

HIV/AIDS, and itse

in reversing previo

some countries ha

be made despite pe

high rates of HIV in

Zambia shows sigin reducing under

The 2001-02 Zamb

found that under-fi

168 per 1 000 livedifferences). This i

late 1970s, and

improvements in p

adults estimated t

ment in child su

improved standard

particular respirato

Improved standard

made possible by

adopted after the

main strategies hav

health financing re

tion of a “BasicPac

to a “basket” fun

menced in 1993 an

The EC has contrib

26

50 78

2875

83

17

Table 19 | Progress in improving child survival

by region

South Med. and N.& M. East

Pacific

Regions

Overall the results indicate the need for a redoubling

of efforts to improve child survival. In addition to faster

progress in reducing poverty in general and improve-

ments in nutrition, water and sanitation, and edu-cation, the key requirement is much higher levels of

investment in the provision of basic health services.

7. Proportion of 1-year old childrenimmunised against measles

Table 20 below ( 117 ) shows a mixed picture

progress in Latin America and the Mediterr

has almost certainly contributed to the imp

survival in these two regions. While oveAfrica are static, this hides improvemen

countries and deterioration elsewhere. O

concern are the low and/or declining rate

West African countries, where urgent action

Falling coverage rates in Asia underline the



This indicator relates to the percentage of children

under one year of age who have received at least one

dose of measles vaccine. Measles has been a leading

cause of childhood mortality, and immunisation is a

key element of the health system response for

improving child survival.

Measles is a highly contagious disease and transmis-

sion of the virus in populations can only be arrested

when measles vaccination coverage is higher than

90%. Another important consideration is that at nine

months, the recommended age for measles vaccina-

tion, up to 15% of children vaccinated do not developimmunity. As a consequence, some countries admin-

ister the vaccine at12–15 monthsof age, and manynow

offer a second opportunity for vaccination. This has to

be taken into consideration when interpreting the esti-

mates prepared by the UN.

of sustaining routine vaccination once th

achieved.

The EC is supporting immunisation in a

African countries and elsewhere through h

support programmes. Measles vaccinatio

commonly chosen as an indicator in the

support operations in ACP countries, whe

ment of a variable tranche is linked to perf

the social sectors. The results indicate th

renewed efforts in improving and sustaini

tion coverage, which should be part of

improvements in health care services.

69.374.1

82.0

90.5

Table 20 | Proportion of one year children immunised against measles

by region

South Med. and N.& M. East

Pacific

Regions

8. Proportion of births attended by skilled

health personnel

This indicator shows the percentage of deliveriesattended by personnel trained to give the necessary

supervision, care and advice to women during preg-

nancy, labour and the post-partum period (sometimes

called “assisted deliveries”). Skilled health personnel

include only those who are properly trained – such as

The high figures in

Balkans reflect th

obstetric services i

Asia once again unhealth services, p

specif ic needs of

mortality rates in s

very high (above 1 0

persist unless si



midwives, nurses and doctors – and who have appro-

priate equipment and drugs. Progresson this indicator

will make a major contribution to achieving the target

of reducing by three quarters, between 1990 and 2015,

the maternal mortality ratio. The aim should be to get

as close to 100% as possible.

personnel and imp

main means of EC

indicator is through

and general budge

0

20

40

60

80

100

46.2

58.2

98.4

80.4

93.8

8

table 21 | Proportion of births attended by skilled health person(most recent year available)

Africa Asia Balkans Caribbean Eastern Europe Latinand

Central Asia

Table 22 | HIV prevalence in adults aged 15-49 years by region

(UN estimates)

9. HIV prevalence among 15-24 years old

pregnant women

This indicator is about the percentage of pregnantwomen aged 15–24 whose blood samplestest positive

for HIV. Improvements on this indicator will contribute

towards the target, which is to have halted and begun

to reverse the spread of HIV/AIDS by 2015. Data is

derived from the UNAIDS estimates for HIV prevalence

i ld (b h bi d)

6.1.2.4. Water and sanitation

The MDG is to ensure environmental sus

The target to halve by 2015 the proportio

without sustainable access to safe drinkinestablished in the World Summit on S

Development in 2002.

10. Proportion of the population having access to drinking water



in 15-49 year olds (both sexes combined).

Table 22 ( 119 ) shows that Africa and the Caribbean are

the worst affected regions, but does not highlight the

developing epidemics in parts of Asia and Eastern

Europe. The trend of marked gender differences in HIV

prevalence rates among 15-24 year olds (the same age

group as for the indicator for pregnant women above)

can be observed systematically for countries where

statistical information is available, and in most coun-

triesthis has shown a significantly worsening trend for

women in the 1999-2001 period (table 23) ( 120 ). Women

under 25 years of age represent the fastest growing

group with HIV/AIDS in sub-Saharan Africa (SSA).There is a continuing need for vigorous prevention and

care programmes in all regions, specifically in SSA.

The Pacific and Africa are far behind in the p

the achievement of the MDG for water and

On the other hand Asia (especially East

Asia), Latin America, the Southern Mediter

the Near and Middle East are on the way to

than halving the proportion of people s

access to water and sanitation (table 24 )(

Table 23 | Changes in HIV prevalence rates by age (15-24) and gender, 1999-2001

in selected sub-Saharan African countries

10

20

30

40

50

60

0

Men 1999

Women 1999

Men 2001

Women 2001

U g a n d a

N i g e r i a

D . R .

C o n g o

T a n z a n i a

E t h i o p i a

R w a n d a

M a l a w i

K e n y a

o z a m b i q u e

Z a m b i a

N a m i b i a

o u t h A f r i c a

Z i m b a b w e

B o t s w a n a

S w a z i l a n d

L e s o t h o

H I V

p r e v a l e n c e

r a t e

( i n p

e r c e n

t )

Halving the population without access to water

in seven years – the case of South Africa

Ten years ago, nearly 12 million people had no accessto safe water supply services and 21 million lacked

adequate sanitation services in South Africa, despite

the fact that universal access to water is regarded as a

basic Human Right in the Constitution. In 1994, the

newly elected democratic government launched a Free

BasicWater programme aimed at achieving a minimum

6 | 2 Harmof pr

6.2.1. Financi

The Commission

Instructions in ord

Regulation applica

European Commu

Rules The revised



BasicWater programme aimed at achieving a minimum

free basic level of water supply of 25 litres per person

a day. Until 2001, the programme had given access to

safe water to 7.5 million people: this represents an

increase from 59% to 76% in the percentage of the

population with basic water services.

The programme has put in place a combination of

sound framework policies and increased expenditure

aimed at subsidising municipalities, funding infra-

structure (both from public and private sources) and

benefiting from cost recovery from higher-income

consumerson the principle that “while the needs of the

poor should be supported, the needs of the better-off should be paid for by themselves”.

Source: South African Ministry of Water Affairs and

Forestry, 2003.

Rules. The revised

Rules and procedu

contracts financed f

the context of co-o

been adopted by t

(Commission Decis

The Practical Guid

from the EC Genera

actions (including s

Guide for the Gener

new legal framewo

adaptations was a

guidance to Headq

The Financial Circu

Financial Regulatio

been enforced. The

introduction of a c

fication in addition

and operational ini

the Authorising Of

has also been esta

A note of instructi

into force of the Fin

9th European Deve

general Regulation

the EDF. Thisnote h

about by the 9th E

areas. A Guide for t

labour operations i

to replace those eaccount the provi

applicable to the 9

procedures finance

6.2.2. Financing Agreements

Another major step has been achieved in the harmon-

isation process. Financing Agreementtemplatesfor theBudget (one template for each management system:

centralised or decentralised) as well as for EDF have

been finalised and are applicable as from 1 June 2003.

These templates, compliant with the new Financial

Regulation and its Implementing Rules, have been

subject to a wide consultation exercise A note of

6.2.5. Miscellaneous

The network of contract/finance unitsmeets

discuss subjects of general interest and positions among the various Directorates.

EuropeAid has implemented verifications a

missions and provided further guidance

tools. Examples include a note on the com

the evaluation committee for calls for tende



subject to a wide consultation exercise. A note of

instructions on this subject has also been issued.

6.2.3. Framework Contracts

The extension of the Framework Contract AMS/451 has

been carried out on time as of 1 April 2003 with the

improvements discussed previously with the various

actors (financial services, users and framework contrac-

tors). The corresponding changes entered in the CRIS

SAISIE database have provided the opportunity to

review certain parts of the module, and improvements

are now ongoing.

A new FrameworkContract in favour of the Commission

has been launched on 13 June 2003 with six lots.

The evaluation process was completed at the end of

the year and the new FWC is available as from January

2004.

6.2.4. International organisations

The Financial and Administrative Framework Agreement

with the United Nations was signed on 29 April 2003.

Agreements were signed with the International Labour

Organization, the Food and Agriculture Organization,

the United Nations Industrial Development Organi-

zation and the World Health Organization: accordingly

these UN specialised agencies accede to the 29 April

2003 Financial and Administrative Framework

Agreement between the European Commission and

the United Nations, thus further streamlining the

Commission’s relations with the UN family. Similar discussions have been successfully finalised with

UNESCO.

the evaluation committee for calls for tende

for proposals, and web pages on the fin

contractual procedures.

EuropeAid has put in place a training

contractual procedures, including advanc

based on practical cases, and has carried

training sessions at headquarters and i

Delegations (Bolivia, Nicaragua, etc.). I

provided training on financial circuits at He

in Brussels. These training sessions we

colleagues working in some devolved Dele

Figures for the website of EuropeAid CoOffice in 2003

• 8 512 tendersand grants documentswer

(of which 1 591 were calls for tende

posals). Other documents included pre-

documents (annual work programmes

contract forecasts for tenders), corrigend

to questions by applicants and post-

documents (award notices).

• There were more than 6 million hits per

More than 1.4 million html pages were d

each month.

6 | 3 RAL

The RAL (“Reste à Liquider”) is the difference between

the cumulative amounts committed (less the de-commitments) and the cumulative amounts paid: the

RAL measures the outstanding unpaid commitments.

Its existence derives from the very budgetary concepts

enshrined in the Financial Regulation for actions

running for more than one budgetary year (commitment

appropriations and payment appropriations)

6.3.2. Old andthe “Po

Old and Dormant cmonitoring certain

behind schedule an

longer any amount

Old RAL comprises

have been made m



appropriations and payment appropriations).

6.3.1. Global RAL

The RAL on the budget lines managed by the Office

increased marginally from €11 407 million at the

beginning of the year 2003 to €11 453 million at the

year-end (+ €46 million or + 0.4%). A useful indicator

is the ratio RAL/yearly payments, measuring the

number of years that would be necessary to absorb the

RAL. Thisratio hasbeen steadily improving since 1998,

when it reached a peak level of 4.55 years. End-2003

it stood at 3.50, which is roughly a stabilised level

compared to end-2002 (3.43 years).

As regards the EDF , the RAL rose considerably from

€8 385 million at 1 January 2003 to €9 410 million

(+ €1 025 million or + 12%). Thisis due to the very high

level of commitments realized in 2003 and should be

seen in a historical context. Indeed, 2003 was the

beginning of a new commitment cycle, following the

entry into force of the Cotonou agreement. The increase

of the RAL is thus a natural phenomenon. However,

thanks to the high level of disbursements, the coeffi-

cient that expresses the number of years necessary to

absorb the RAL was reduced from 4.41 to 3.88 at year-

end 2003, which is thus a positive trend.

have been made m

the current financia

mitments prior to

1995 were added t

monitor, etc., for t

old commitments w

Dormant RAL are o

payments ( 122 ) in t

stock of Old + Do

called “Potentially

Table 25 below clea

downward trend ofend of the years si

As regards Old RAL

specific review, the

growing amount,

reduction in 2000,

did not prevent Ol

million to €1 740 m

trend was arreste

stabilised Old ou

+ EDF) at about the

as at the end of 20

As regards Dorma

reduced from €1 66

at end-2002, and

2003 to €752 milli

These trendsreflectto reduce Potential

financed operation

table 25.

( 122 )For the EDF: no payments

nor contracts. For Budget,historically end-of-year Dormant

amounts have been calculatedcomparing RAL end-of-year

with RAL two years earlier.Commitments that had partial

de-commitments are thusnot counted as dormant

for year-end figures.

6.3.3. Evolution for budget financedoperations

The main figures are summarised in the table 26:

Old Commitments

As in the previousyear, targets for reduction of Old RAL,

broken down by Directorate, were again agreed for

2003, following examination by the operational

A total of 1 523 budget commitments pr

representing 95% of the initial stock of 1

commitments for budget lines currently

folio, have been closed in the accounting syremaining balances having been fully p

de-committed.

Dormant commitments

The total amount of Dormant commitment



3, g y p

Directorates of an initial proposal from the budget unit.

The overall target reduction for 2003, asadopted by the

Board, was set at €1 111 million. The overall end-of-year

result for Old RAL, at€1 126 million, represents a reduc-

tion of €692 million, i.e. 98% oftarget, achieved in part

by payments of €445 million, and by de-commitments

which added €247 million. An interesting and positive

feature is that the contribution of payments to the

reduction (64%) is higher than last year (54%).

As evidenced in the table, the 2003 reduction in the Old

RAL portfolio, though notentirelycompensating for the

increase resulting from addition of the 1997 budgetyear, again shows improved performance in reducing

RAL in absolute figures when compared with previous

years.

As regards older budget commitments prior to 1995,

since the initial inventory was made in November 99,

RALdecreased by 91% from €1 092 million to €96 million

on the Office’s present budget lines from heading 4.

This reduction has been achieved partly by payments

(€429 million) and by de-commitments(€567 million).

u

(Old included) was €577 million, d

€788 million end-2002, thus confirming t

ing trend observed in the previous two ye

sustained improvement of this important i

Dormantcommitments not Old (see table b

the same trend, with the percentage of tota

slightly over recent years (88% at 1 Januar

When analysed in terms of disbursem

Dormant commitments with no disbursem

initial amount committed) come to €347

60% of total. This again confirms, for 200of decreasing financial value of program

with start-up delays and their share i

Dormant RAL.

€ million 2001 2002

Total Dormant 1 160 788

Dormant zeroDisbursement 908 531

% 78% 67%

As to the distribution of Dormant commitments by

budget lines/chapters and thematic lines, the four

top programme/budget chapters in terms of amounts

Dormant remain the same as at end-2002:Mediterranean, Latin America, Asia and Food Aid, in

that order, account for 75% of the total, roughly the

same percentage as a year earlier.

Analysis of the evolution of Dormant amounts per port-

folio showsan overall decrease in volume, the steepest

the number of clo

decrease is explai

commitments carr

previous efforts onaverage size of bu

However, the decre

closuresin themati

total number of ope

the year (43% of t

against 73% last ye



p

fall being the Mediterranean portfolio (-57%), then the

ACP budgetprogrammes(South Africa + bananas: -37%)

and Latin America (-31%). Dormant amounts increased

for the Asia portfolio (+21% from €93,6 million to

€113 million) and for the thematic portfolio (+14% from

€143 million to €162 million).

This shows that the share of the main programmes in

the total is not evolving evenly: the Mediterranean port-

folio’s percentage of the total Dormant amount is still

decreasing (44% end-2001, 39% end-2002, 23% end-

2003), Latin America’s has remained roughly

unchanged (18% from 20% last year and 15% end-2001), whereas Asia’s increased from 12% to 20%, and

Food Security from 10% to 15%. The share of the

thematic budget lines (Food Security, EIDHR and

other thematic lines) has jumped from 18% to 28% and

is now the largest Dormant portfolio.

The effort on closure and de-commitment

The level of de-commitment during 2003 for the

Office’s management portfolio was €599 million

(€502 million in 2002). As in previous years, this is a

result not only of the closure of old files but also the

overall review effort for the whole portfolio, i.e. a

specific review of under-performing commitments that

included not only Old but also non-activated Dormant

RALs, and slow disbursement programmes. De-commit-

ments on old commitments prior to 1998, amounting

to €247 million, decreased in value from the previous

year’s level (€285 million in 2002), as well as in termsof their share of the total volume de-committed (from

57% to 41%). This is a logical consequence of both the

effortsmade in previous yearson old commitments and

y

Surveillance of RA

The migration com

single External Aid

further developme

new directions:

A more targeted ap

commitments

First, the availab

contracts permittemore refined ana

contracting situatio

forming commitme

only towards old

commitments with

tively high levels of

contracted. On the

by the budget unit,

80 projects and a

end-2002 were se

review at Director-

Directorate concern

accelerating meas

closing programme

commitments revie

Ensure sustainabil

potentially abnorm

management envir

In order to ensure s

reporting, the plan

which Delegations already manage a major part of

budget commitments (direct data entry by Delegations

will be possible).

6.3.4. Evolution in 2003 for EDF financed operations

See table 27

Whereas Old RAL increased dramatically during

6 | 4 Internal Audits

During the year under review, the Interna

provided management with information and the efficiency of the operations audited

forward recommendationsaimed at assisti

ment in improving these aspects of the Of

The unit’s annual work programme is base

assessment of activities undertaken by the




preceding years, from €621 million at end-2000 to

€812 million at year-end 2002, the Office reduced Old

RAL to €630 million at end-2003, close to its initial

level, but was not fully successful in realising its ambi-

tious end-of-year objective of €580 million. However,

the reduction of old RAL in 2003 was significant

(€376 million), the highest reduction since the start of

the “clearing-up Old RAL” exercise at the end of 1999.

These €376 million translate into a reduction of 37% of

all Old EDF commitments outstanding at the beginning

of 2003. About 175 projects of an initial portfolio of

around 940 have been closed.

Dormant outstanding commitments fell from

€449 million at 1 January 2003 to €220 million at 31

December 2003 (significantly lower than the objective

of €400 million): these amounts for the EDF do not

exclude commitments that are both Old and Dormant.

This information is onlyavailable for the end-year 2003:

of the €220 million ofDormant RAL, €126 million (57%)

was not Old.

Reduction of Old and Dormant RAL was an important

issue at the regional seminars held in February and

March 2003. All outstanding commitments past the

implementation deadline were examined, projects

requiring specific action were identified and the serv-

ices concerned were instructed to take the necessary

action. Thisexercise will be repeated and taken further

at the regional seminars organised by the Office in

spring 2004.

6 | 5 EC communicationsreferring toexternal assistance

Inventory of development communications in 2003



Title of communication

Proposal for a Council Decision amending Council Decision2002/131/EC concluding the consultation procedure withHaiti under Article 96 of the ACP-EC Partnership Agreement.

Proposal of a Council Decision on the position to be adoptedwithin the ACP-EC Committee of Ambassadors concerning theStaff Regulations of the Center for the Development of Enterprise.

Proposal for a Council Decision on the position to beadopted by the Community within the ACP-EC Council of Ministers regarding the use of resources from the long-termdevelopment envelope of the ninth EDF for the creation of aPeace Facility for Africa.

Proposal for a Council Decision concluding the consultationprocedure opened with the Central African Republic under Article 96 of the Cotonou Agreement.

Draft proposal for a Regulation of the European Parliamentand of the Council amending Regulation (EC) n° 1726/2000on development cooperation with South Africa.

Draft Commission communication: «Governance anddevelopment».

Communication from the Commission to the Council andthe European Parliament – Towards the full integration of co-operation with ACP countries in the EU budget.

Proposal for a Council decision on the position to beadopted by the Community within the ACP-EC Committee of Ambassadors concerning the financial regulation and thestatutes and rules of procedure of the Centre for the

Refere

COM/200

COM/200

COM/200

COM/200

COM/200

COM/200

COM/200

COM/200

Communication from the Commission to the Council and the

European Parliament overall assessment of the operationsfinanced by the Community under the regulation ondecentralised.

Proposal for a Council decision on the reallocation tocooperation operations in the Democratic Republic of Congoof payments made by the DRC in respect of special loans andof the proceeds and income from risk capital operations in

Reference

COM/2003/412/F-1 1

COM/2003/367/F-1 23



of the proceeds and income from risk capital operations inthe DRC under the 2nd, 3rd, 4th, 5th and 6th EDFs.

Communication from the Commission to the Council and theEuropean Parliament. The Reform of State-Owned Enterprisesin Developing Countries with focus on public utilities: theNeed to Assess All the Options.

Communication from the Commission to the Council:the EU-Africa dialogue.

Communication from the Commission to the Council and theEuropean Parliament. Forest law enforcement, governance

and trade (FLEGT). Proposal for an EU action plan.

Communication from the Commission to the Council andthe European Parliament concerning the opening of consultations with the Central African Republic under Article 96 of the Cotonou Agreement.

Proposal for a Council decision on the position to beadopted by the Community within the ACP-EC Council of Ministers regarding a decision on the use of the reserve of

the long-term development envelope of the ninth EuropeanDevelopment Fund for debt alleviation.

Communication from the Commission to the Council and theEuropean Parliament. Establishment of an EU Water Fund.

Amended proposal for a Regulation of the EuropeanParliament and of the Council on aid for policies and actionson reproductive and sexual health and rights in developingcountries (presented by the Commission pursuant toArticle 250 (2) of the EC Treaty).

Amended proposal for a Regulation of the EuropeanParliament and of the Council On aid for poverty diseases(HIV/AIDS Malaria Tuberculosis) in developing countries

COM/2003/326/F-1 03

COM/2003/316/F-1 23

COM/2003/215/F-1 2

COM/2003/222/F-1 2

COM/2003/212-1 2

COM/2003/211/F-1 2

COM/2003/168-1 0

COM/2003/167-1 0

Proposal for a Council decision regarding the position to be

taken by the Community within the ACP-EC Council of Ministers with a view to the accession of the DemocraticRepublic of East Timor to the ACP-EC Partnership Agreement.

Proposal for a Council decision extending the duration of Decision 2002/148/EC concluding consultations withZimbabwe under Article 96 of the ACP-EC PartnershipAgreement

Refere

COM/200

COM/200



Agreement.

Inventory of external relations communications in 2003

Title of communication

Communication from the Commission to the Council andParliament – Opening up Community programmes andagencies to countries in the Western Balkans.

Proposal for a Council Decision on a Community Positionconcerning a Decision of the European Community – former

Yugoslav Republic of Macedonia Co-operation Councilimplementing further liberation of trade in agricultural and

Reference

COM/2003/748/F-1 03

COM/2003/744/F-1 0



implementing further liberation of trade in agricultural andfisheries products.

Proposal for a Council Decision on the signature of a PoliticalDialogue and Cooperation Agreement between the EuropeanCommunity and its Member States, of the one part, and theRepublics of Costa Rica, El Salvador, Guatemala, Honduras,Nicaragua and Panama.

Draft Proposal for a Regulation of the European Parliamentand of the Council amending Regulation (EC) No 975/1999laying down the requirements for the implementation of development cooperation operations which contribute to

the general objective of developing and consolidatingdemocracy and the rule of law and to that of respectinghuman rights and fundamental freedoms and Regulation(EC) No 976/1999 laying down the requirements for theimplementation of Community operations, which, within theframework of Community cooperation policy, contribute tothe general objective of developing and consolidatingdemocracy and the rule of law and to that of respectingHuman Rights and fundamental freedoms in third countries.

Communication from the Commission to the Council andthe European Parliament. The Madrid Conference onReconstruction in Iraq, 24/10/2003.

COM/2003/677/F-1 1

COM/2003/639/F-1 28

COM/2003/575/F-1 0



6 | 6 EC assistancenot covered by the Report

Like the previousreport, the 2004 reportcoversallexter-nal assistance activities managed by the EuropeAid

Co-operation Office, in line with the Commission’s

reform of management practice.

Humanitarian, pre-accession and macro-financial

assistance do not fall within the scope of the report.

6.6.2. ECHO

In 2003, ECHO con

humanitarian needassessment: in Afr

Africa and Souther

of Asia, notably Ira

the Middle East als

ically and required

ECHO has contin

forgotten crises an



6.6.1. Macro-financial assistance

The Directorate-General for Economic and FinancialAffairs is fullyresponsible for these activities, which are

reported on in separate documents ( 123 ).

The Commission implements macro-financial assis-

tance (MFA) in association with support programmes of

the IMF and the World Bank, and after consulting with

the Economic and Financial Committee and securing a

Council Decision. MFA incorporates a set of principles

which underline its exceptional character ( ad hocCouncil Decisions), its complementarity to financing

from international financial institutions and its macro-

economic and structural conditionality. It is an

instrument designed to help those beneficiary coun-

tries experiencing serious but generally short-term

macro-economic imbalances (serious balance of

paymentsand fiscaldifficulties). In close co-ordination

with IMF and World Bank programmes, MFA has

promoted policies that are tailored to specific country

needs with the overall objective of stabilising theexternal and internal financial situation and estab-

lishing market-oriented economies.

g

Korea and Uganda

aid decisions, ECHO

cross-cutting issueRehabilitation and

ness and children.

A detailed descript

ties will be found in

Unit/Region

Africa, Caribbean, Pacific

Horn of Africa

Table 28 | Global overview of Humanitarian Aid Financial Decision

7 | Financial Tables



Figure 1 | Breakdown by budget line of external aid financed from the General Commission Bud

Amounts Total Managed by Eur

in M€Item Description Commit. Payments Commit. Payme

B1-3… Food Aid Russia (FEOGA) 0.22 0.22 0.16 0.16

B5-8… Support for the victims 5.96 4.08 5.96 4.08of human rights abuses

B7-01.. Pre-Adhesion – SAPARD 560.15 263.46 - -

B7-02.. Pre-Adhesion – ISPA 1 128.95 428.97 - -



B7-03.. Pre-Adhesion – PHARE 1 703.32 1 546.54 - -

B7-04.. Pre-Adhesion – Malta & Cyprus 37.10 15.02 - -

B7-05.. Pre-Adhesion – Turkey 148.77 42.56 - -

B7-20.. Food Aid 438.52 443.01 438.52 443.01

B7-21.. Humanitarian Aid 586.24 516.46 - -

B7-30.. Asia 557.95 469.39 557.95 469.39

B7-31.. Latin America 342.10 290.43 342.10 290.43

B7-32.. South Africa 126.89 117.96 126.89 117.96

B7-40.. Mediterranean 40.56 - 35.37

B7-41.. MEDA 639.93 552.69 639.92 510.22

B7-42.. Near & Middle East 105.50 123.11 105.50 123.11B7-43.. Other operations for Med. countries 37.00 31.69 37.00 31.69

and the Middle East

B7-51.. European Bank for Reconstruction - 8.44 - -& Devt (EBRD)

B7-52.. NIS & Mongolia – TACIS 447.43 403.19 440.32 396.19

B7-54.. Balkans 703.17 502.42 688.17 424.42

B7-60.. Cofinancing NGOs 207.31 154.38 207.31 154.38

B7-61.. Training & public awareness/WID 3.93 3.19

B7-620. Environment/tropical forests 41.50 44.17 41.50 44.17B7-622. Integrating gender issues 2.50 2.31 2.50 2.31

in development co-operation

B7-623. Capacity-building for information 2.35 1.90 2.35 1.90and communication technologiesand sustainable energy

B7-63.. Social infrastructure and services 98.71 73.84 98.71 73.84

B7-65.. Evaluation/co-ordination/ 22.88 17.46 22.88 17.46anti-fraud

B7-6610 Anti-personnel mines 18.15 13.38 18.15 13.38

B7-66.. Other specific actions 52.37 35.72 0.40B7-671. Rapid reaction mechanism 23.82 13.59

B7-70.. Democracy & Human Rights 105.90 99.39 105.90 99.39

Figure 2 | Breakdown by instrument of development assistance financedfrom the European Development Fund (EDF) in 2003 ( a )

Instruments Commitment M€ ( b

)

Indicative Programmes

NIP/RIP Subsidies 212.50

NIP/RIP Special loans

Total 212.50

Outside Indicative Programmes

Interest-rate Subsidies 13 57



Interest rate Subsidies 13.57

Emergency Aid 1.37

Aid for Refugees 0,00Risk Capital 239.30

SYSMIN 2.45

Structural Adjustment Facility 5.00

HIPC 0.00

Transferred Funds 3.00

Use of interests 11.54

Studies + tech. assist. OCT 0.65

Total 276.88

9th EDF & Transitional measures

Envelope A 1 918.25

Envelope B 220.29

Regional Project 177.56

Intra ACP Project 759.80

Implementation expenditure 125.00

Other 37.88

Total 3 238.77

Total EDF 3 728.15 STABEX ( d )

Total EDF + STABEX 3 728.15

Figure 3 | Breakdown by country/region of external aid financed from the General Commissionand the European Development Fund (EDF) in 2003

Country/Region Total in M€ Managed by EuropeAid Commitments Payments Commitments Payments

Part I: Developing Countries & Territories — Official Development Assistance (ODA)

Europe – Total 835.38 639.63 663.79 445.82

Albania 47.70 30.02 47.70 28.44

Bosnia-Herzegovina 93.49 120.23 78.49 95.23



Bosnia Herzegovina 93.49 120.23 78.49 95.23

Croatia 62.34 23.80 62.34 23.79

FYROM 44.41 43.14 44.41 23.49Moldova 25.50 7.50 25.50 7.50

Turkey 156.69 91.19 7.91 4.01

Serbia and Montenegro 355.97 302.49 348.31 242.10

States of ex-Yugoslavia unspecif.

Europe unallocated 49.27 21.26 49.12 21.26

Africa – Total 3 439.45 2 645.17 3 208.15 2 444.61

North of Sahara – Total 416.93 345.72 409.63 336.86Algeria 57.08 30.39 49.93 22.48

Egypt 110.76 66.14 110.76 66.14

Morocco 148.26 119.66 148.26 118.82

Tunisia 52.75 73.90 52.75 73.88

North of Sahara unallocated 48.08 55.62 47.92 55.53

South of Sahara – Total 3 019.23 2 298.55 2 795.24 2 106.85

Angola 115.11 59.86 96.27 42.52

Benin 121.70 45.39 121.70 45.39

Botswana 6.76 2.29 6.76 2.29

Burkina Faso 123.92 80.54 123.92 80.54

Burundi 18.72 42.30 2.49 23.89

Cameroon 13.75 65.45 13.75 65.45

Cape Verde 6.84 14.61 6.56 14.39

Central African Rep. 66.29 4.23 66.29 4.23

Chad 113.36 36.66 111.36 35.71

Comoros 2.56 2.35 2.35 2.31

Congo, Dem. Rep. 198.84 70.86 158.00 38.69

Congo Rep. 4.97 8.22 0.24 6.50

Côte d’Ivoire 33.09 8.89 32.21 7.16

Djibouti 6 78 6 78

Country/Region Total in M€ Managed by EuropeAid

Commitments Payments Commitments Paymen

Mauritania 61.19 46.47 57.19 42.47

Mauritius 30.78 6.49 30.57 6.26

Mayotte 0.13 0.13

Mozambique 159.37 81.14 159.37 81.00

Namibia 22.35 15.93 22.25 15.86

Niger 105.26 50.73 105.26 50.73

Nigeria 20.92 19.10 20.92 19.10



Rwanda 97.03 52.05 97.03 52.05

St. Helena 0.15 0.15São Tomé and Príncipe 0.32 3.69 0.07 3.13

Senegal 3.81 37.93 0.81 31.33

Seychelles 1.36 1.55 0.20 0.12

Sierra Leone 126.00 23.57 115.84 14.27

Somalia 115.61 35.46 106.61 30.09

South Africa 126.89 118.63 126.89 118.63

Sudan 37.75 218.67 15.75 200.01

Swaziland 17.75 8.85 17.75 8.85

Tanzania 240.56 164.56 216.56 138.80Togo 9.85 4.04 9.85 4.04

Uganda 51.97 83.26 45.97 79.90

Zambia 146.62 87.43 145.62 86.79

Zimbabwe 16.38 21.06 3.22 12.12

South of Sahara unallocated 192.88 148.46 167.88 132.10

Africa unspecified 3.28 0.90 3.28 0.90

America – Total 691.97 501.93 678.13 48North & Central – Total 418.56 228.37 414.56 222.40

Anguilla 0.80 0.80

Antigua & Barbuda 4.81 0.07 4.81 0.07

Barbados 1.43 1.12 1.43 1.12

Belize 3.34 4.79 3.34 4.79

Costa Rica 11.55 1.55 11.55 1.55

Cuba 1.40 2.95 1.40 2.85

Dominica 6.32 0.72 6.32 0.72

Dominican Republic 6.11 15.79 5.21 15.19

El Salvador 1.38 30.04 1.25 29.47

Grenada 2.09 0.74 2.09 0.74


Commitments Payments Commitments Payments

South – Total 257.34 210.01 247.50 197.21

Argentina 9.09 4.25 7.70 3.35

Bolivia 56.00 64.74 56.00 64.60

Brazil 12.29 18.98 12.29 18.75

Chile 23.13 9.28 23.13 9.28

Colombia 54.86 27.79 46.61 18.42

Ecuador 23.39 14.06 23.18 13.37

Guyana 0 54 1 91 0 54 1 91



Guyana 0.54 1.91 0.54 1.91

Paraguay 1.04 5.34 1.04 5.13

Peru 18.56 36.87 18.56 35.75

Suriname 35.46 3.63 35.46 3.63

Uruguay 9.15 4.21 9.15 4.21

Venezuela 1.03 9.29 1.03 9.22

South America unallocated 12.82 9.65 12.82 9.58

America unspecified 16.08 63.55 16.08 63.55

Asia – Total 1 303.55 1 125.53 1 001.75 903.18

Middle East – Total 466.04 408.73 315.78 315.19

Bahrain

Iran 7.68 4.53 2.72 1.11

Iraq 107.14 53.75 2.00 1.65

Jordan 45.46 47.41 44.96 46.93

Lebanon 48.45 36.37 46.72 32.83

Oman

Palestinian Admin. Areas 185.11 160.42 149.82 127.90

Saudi ArabiaSyria 4.18 18.84 3.68 18.32

Yemen 11.35 23.19 9.35 22.33

Middle East unallocated 56.68 64.22 56.52 64.12

South & Central Asia – Total 583.73 462.66 478.51 368.25

Afghanistan 255.06 184.12 206.10 137.59

Armenia 3.26 14.55 3.14 13.97

Azerbaijan 1.55 21.74 1.55 21.73

Bangladesh 132.64 46.32 132.44 45.99

Bhutan 4.05 4.05Georgia 7.57 25.06 3.37 21.31

India 43.77 54.19 41.12 49.55


Commitments Payments Commitments Paymen

East Timor 27.90 13.56 25.90 10.17

Indonesia 41.65 24.76 38.15 21.97

Korea. Dem. Rep. 26.62 27.38 8.00 13.81

Laos 3.80 7.14 1.78 5.93

Malaysia 3.63 0.12 3.63 0.12

Mongolia 1.02 2.42 0.02 1.71

Philippines 11.56 15.59 10.56 15.01

Thailand 18.62 11.05 12.24 5.70

Vietnam 30 10 26 56 29 78 26 03



Vietnam 30.10 26.56 29.78 26.03

Far East Asia unallocated 6.23 10.76 3.50 10.72

Asia unspecified 57.40 52.18 57.40 52.18

Oceania – Total 59.68 40.46 59.56 40.44

Cook Islands 2.00 0.52 2.00 0.52

Fiji 3.34 3.56 3.34 3.56

Kiribati 0.10 2.42 2.42

Marshall Islands

Micronesia. Fed. Sts.

NauruNiue

Palau

Papua New Guinea 0.70 7.94 0.70 7.94

Samoa 8.20 4.00 8.20 4.00

Solomon Islands 1.34 4.42 1.32 4.40

Tokelau

Tonga 3.89 2.25 3.89 2.25

Tuvalu 3.97 3.97

Vanuatu 10.91 3.73 10.91 3.73Wallis & Futuna 1.68 1.68

Oceania unallocated 25.24 9.94 25.24 9.94

LDCs unspecified 1 042.38 776.53 777.14 529.10

Part I (ODA) Bilateral – Total 7 372.41 5 729.25 6 388.51 4 846.32

UNRWA 57.75 70.75 57.75 70.75

WFP 120.00 32.97 120.00 32.97

HIPC 460.00 208.97 460.00 208.97

GHF 170.00 230.00 170.00 230.00


Commitments Payments Commitments Payments

Part II: Countries and Territories in Transition – Official Aid (OA)

More Advanced Developing Countries 111.92 75.98 13.71 10.34

Aruba 0.02 0.21 0.02 0.21

Bahamas 0.78 0.78

Bermuda

Brunei

Cayman Islands

Chinese Taipei (Taiwan)



Cyprus 23.91 10.58

Falkland Islands

French Polynesia 5.86 5.86

Gibraltar

Hong Kong, China

Israel 1.51 2.35 1.51 1.29

Korea

Kuwait

Libya

Macao

Malta 13.22 8.47 0.64

Netherlands Antilles 9.72 1.19 9.72 1.19

New Caledonia 2.45 0.36 2.45 0.36

Northern Marianas

Qatar

Singapore

Slovenia 61.08 46.17 0.00

United Arab Emirates

Virgin Islands (UK)MADCT unallocated

CEEC's/NIS 3 953.25 2 737.72 452.37 375.10

Belarus 6.00 0.87 6.00 0.87

Bulgaria 303.60 159.27 0.49

Czech Republic 191.57 192.31 0.01 0.49

Estonia 74.18 52.88 0.00

Hungary 223.30 168.09 0.17

Latvia 102.98 67.61 0.00Lithuania 153.91 291.59 0.04

Poland 839.08 653.79 0.25

Figure 4 | Breakdown by sector of Official Development Assistance (ODAfrom the General Commission Budget and the European Devel

Sector of Destination AmountTotal Managed

SOCIAL INFRASTRUCTURE AND SERVICES 2 871.38

Education 515.75

Education, level unspecified 124.52

Basic education 198.29

Secondary education 48.27

P t d d ti 144 68



Post-secondary education 144.68

Health 410.63Health, general 100.20

Basic health 310.43

Population policies/programmes 23.05and reproductive health

Water supply and sanitation 310.75

Government and civil society 872.84

Other social infrastructure 738.36

Employment 39.02

Housing 19.50Other social services 679.84

ECONOMIC INFRASTRUCTURE AND SERVICES 1 259.35

Transport and storage 870.94

Communications 21.32

Energy generation and supply 126.19

Banking and financial services 102.27

Business and other services 138.63

PRODUCTION SECTORS 558.06

Agriculture, Forestry and Fishing 252.20

Agriculture 200.57

Forestry 5.06

Fishing 46.57

Industry, Mining and Construction 108.80

Industry 69.34

Mineral resources and mining 39.38

Construction 0.08

Trade and Tourism 197.06

Trade 190.51

Tourism 6.55

MULTISECTOR/CROSSCUTTING 668 71

Sector of Destination Amount of Commitments (€ million)

Total Managed by EuropeAid Managed

EMERGENCY ASSISTANCE 636.31 80.82 Emergency food aid 41.00 41.00

Other emergency and distress relief 595.31 39.82

OTHER/UNALLOCATED/UNSPECIFIED 568.33 398.33

Administrative costs of donors 538.08 372.00

Support to non-governmental organisations 5.28 5.28

Unallocated/unspecified 24.97 21.05

GRAND TOTAL 8 269 41 7 285 52



GRAND TOTAL 8 269.41 7 285.52

Figure 5 | Breakdown by sector of Official Development Assistance (ODA) financedfrom the General Commission Budget and the European Development Fund (EDF) in 20

Sector of Destination Amount of Payments (€ million)

Total Managed by EuropeAid Managed

SOCIAL INFRASTRUCTURE AND SERVICES 1 953.24 1 875.64

Education 262.95 258.91

Education, level unspecified 65.03 65.03

Basic education 84.24 83.77

Secondary education 45.44 44.61

Post-secondary education 68.25 65.51

Health 475.22 473.77

Health, general 123.79 122.35Basic health 351.43 351.43

Population policies/programmes 69.46 66.97and reproductive health

Water supply and sanitation 186.19 171.06

Government and civil society 515.25 482.93

Other social infrastructure 444.18 421.99

Employment 53.93 41.52

Housing 18.46 18.46

Other social services 371.79 362.01ECONOMIC INFRASTRUCTURE AND SERVICES 842.49 839.55

Transport and storage 456.01 456.01

Sector of Destination Amount

Total Managed

MULTISECTOR/CROSSCUTTING 627.69

General environmental protection 107.06

Women in development 5.70

Other multisector 514.94

COMMODITY AID AND 1 089.89

GENERAL PROGRAMME ASSISTANCE

Development food aid/ 328.15food security assistance

Other general programme 761.74



and commodity assistance

ACTION RELATING TO DEBT 259.25

Action relating to debt 259.25

EMERGENCY ASSISTANCE 611.21

Emergency food aid 72.72

Other emergency and distress relief 538.48

OTHER/UNALLOCATED/UNSPECIFIED 434.82

Administrative costs of donors 409.37

Support to non-governmental organisations 2.66

Unallocated/unspecified 22.80

GRAND TOTAL 6 331.13

Bilateral and Multilateral

ODA flows incl.,administrative costs from

part A of the budget.

Figure 6 | Breakdown by sector and region of external aid financed from the General Commissand the European Development Fund (EDF) in 2003

Sector of Destination Amount of Commitments

NIS Western Balkans MEDA Asia Latin Am

SOCIAL INFRASTRUCTURE AND SERVICES 287.11 420.21 298.61 381.98 176.

Education 23.35 39.68 101.61 134.02 50

Education, level unspecified 7.48 20

Basic education 1.20 1.80 24.11 106.89 1

Secondary education 14.00 28

Post-secondary education 22.15 16.40 77.50 27.13



Post secondary education 22.15 16.40 77.50 27.13

Health 9.50 24.50 10.74 1Health, general 9.50 15.75

Basic health 8.75 10.74 1

Population policies/programmes 2.14and reproductive health

Water supply and sanitation 21.00 20.60 4.00 26.12 1

Government and civil society 117.81 217.84 101.63 78.84 88

Other social infrastructure 124.95 132.59 66.86 130.12 35

Employment 11.00 22.00 2.12 3

Housing 19.50Other social services 124.95 102.09 44.86 128.00 31

ECONOMIC INFRASTRUCTURE 172.30 115.05 119.50 40.85 57. AND SERVICES

Transport and storage 10.30 6.40 96.00 27.65 38

Communications 3.00 7.00

Energy generation and supply 108.70 86.50 3.65

Banking and financial services 1.50 0.50 1

Business and other services 50.30 15.15 22.00 9.05 17

PRODUCTION SECTORS 2.00 29.39 132.85 63.07 26. Agriculture, Forestry and Fishing 14.00 28.00 25.37

Agriculture 14.00 28.00 25.37

Forestry

Fishing

Industry, Mining and Construction 37.85 20

Industry 37.85 20

Mineral resources and mining

Construction

Trade and Tourism 2.00 15.39 67.00 37.70 6

Trade 2.00 15.39 67.00 37.70 6

Tourism

Sector of Destination Amount of Commitments

NIS Western Balkans MEDA Asia Latin Am

EMERGENCY ASSISTANCE 0.66 16.00 7.

Emergency food aid

Other emergency and distress relief 0.66 16.00 7.

OTHER/UNALLOCATED/UNSPECIFIED 47.20 28.27 16.02 21.38 15.

Administrative costs of donors 47.20 28.27 15.02 21.38 15.

Support to non-governmental organisations 1.00

Unallocated/unspecified

GRAND TOTAL 551.54 630.23 815.51 653.50 448.



Bilateral and Multilateral ODA/OA/Other flows incl. administrative costs from part A of the budget (only EuropeAid).

Figure 7 | External aid financed from the General Commission Budget andthe European Development Fund (EDF)

Commitments (M€) Payments (M€)

Source 2001 2002 2003 2001 2002 Budget 8 174.75 8 437.66 8 464.04 5 632.30 6 051.96

EDF 1 554.16 1 768.39 3 728.15 2 067.86 1 852.72

GRAND TOTAL 9 728.91 10 206.05 12 192.19 7 700.16 7 904.68

Source: Annual Report 2001, 2002, 2003 {Breakdown by budget line of external aid financed from the General CommissiBreakdown by instrument of development assistance financed from the European Development Fund (EDF)}.

Figure 8 | External aid financed from the General Commission Budget and



Figure 8 | External aid financed from the General Commission Budget and

the European Development Fund (EDF) managed by EuropeAid


Source 2001 2002 2003 2001 2002

Budget (AIDCO only) 3 823.47 3 898.26 3 922.04 3 288.54 3 460.57

EDF 1 554.16 1 768.39 3 728.15 2 067.86 1 852.72

GRAND TOTAL 5 377.63 5 666.65 7 650.19 5 356.40 5 313.29

Source: Annual Report 2001, 2002, 2003 {Breakdown by budget line of external aid financed from the General CommissiBreakdown by instrument of development assistance financed from the European Development Fund (EDF), only EuropeA

Figure 9 | Official Development Assistance (ODA) and Official Aid (OA) financedfrom the General Commission Budget and the European Development Fund (EDF)


ODA / OA 2001 2002 2003 2001 2002

Official development 5 994.02 6 532.73 8 269.41 5 891.76 5 920.30assistance

Official aid 3 734.89 3 673.32 4 065.17 1 808.40 1 984.38GRAND TOTAL 9 728.91 10 206.05 12 334.58 7 700.16 7 904.68

ODA: Official development assistance is defined as those flows to developing countries and territories(directly or through multilateral institutions).OA: Official aid consists of flows that meet all the tests of ODA, except that they are directed to Countries and Territories i(directly or through multilateral institutions).

Source: Annual Report 2001, 2002, 2003 {Breakdown by country/region of external aid financed from the General Command the European Development Fund (EDF)}.

Figure 10 | Breakdown by sector of Official Development Assistance (ODA) financedfrom the General Commission Budget and the European Development Fund (EDF)

7 | 1 Commitments 2003 – Western Balkans

Country Project Title Amount € Sector

Albania AP2003 Albania – Customs & Taxation – 4 000 000 16320Customs support

Albania AP2003 Albania – Customs & Taxation – 3 000 000 15020Taxation support

Albania AP2003 Albania – Judicial reform 5 000 000 15030

Albania AP2003 Albania – Police 8 000 000 16320

Albania AP2003 Albania – Integrated Border Management 5 000 000 15030

Albania AP2003 Albania – Asylum & Migration 2 000 000 16320

Albania AP2003 Albania – Public Administration Reform 1 000 000 15020



Albania AP2003 Albania Public Administration Reform 1 000 000 15020

Albania AP2003 Albania – Trade 7 500 000 33110

Albania AP2003 Albania – Local Community Development 7 500 000 15050

Albania AP2003 Albania – Education 1 500 000 11110

Albania AP2003 Albania – Democratic Stabilisation 1 000 000 15062

Albania TEMPUS CARDS – Albania 2003 1 000 000 11420

Bosnia-Herzegovina CARDS/2003/ 004-378 – 10 000 000 16320Annual Action Programme 2003for Bosnia and Herzegovina – TA

Bosnia-Herzegovina AP2003 Bosnia and Herzegovina – 19 500 000 16210

Housing repair and related activities,monitoring; verification, de-mining operations

Bosnia-Herzegovina AP2003 Bosnia and Herzegovina – 1 000 000 22030Support reform of Public Broadcasting Services

Bosnia-Herzegovina AP2003 Bosnia and Herzegovina –Reform of Public Administration in the BiH 2 000 000 15010

Bosnia-Herzegovina AP2003 Bosnia and Herzegovina – 3 500 000 41010Support to sustainable environmental management

Bosnia-Herzegovina AP2003 Bosnia and Herzegovina – 4 000 000 14015Development of water quality managementon the river basin level

Bosnia-Herzegovina AP2003 Bosnia and Herzegovina – 2 600 000 14050Waste Recycling Pilot Project

Bosnia-Herzegovina AP2003 Bosnia and Herzegovina – 4 000 000 15030Support BiH judiciaryThe overall objective is to support state buildingand participation of BiH in the Stabilisationand Association process as defined in the CountryStrategy Paper and in the Multi-Annual IndicativeProgramme.The establishment of an effectiveand cost-efficient Judiciary in BiH is the specific

objective. The project will lead i.a. to the creation of three High Judicial and Prosecutorial Councils [HJPC]at BiH and Entity levels to appoint and disciplinejudges and prosecutors and to reselect judges


Croatia AP2003 Croatia – Support to national 3 000 000 15010development planning

Croatia AP2003 Croatia – Public Finance 2 800 000 15020

Croatia AP2003 Croatia – Environment and natural resources 3 700 000 41010

Croatia Global Commitment TEMPUS CARDS –Croatia 2003 3 000 000 11420

FYROM CARDS/2003/ 004-861 – Annual Action Programme 2 000 000 163202003 for Former Yugoslav Republic of Macedonia

FYROM AP2003 FYROM – Promotion of inter-ethnic relations 1 800 000 11230

FYROM AP2003 FYROM – Civil society development 1 200 000 15050

FYROM AP2003 FYROM – Human resource development 1 500 000 11430in SME enterprises



FYROM AP2003 FYROM – Creation of a Public 1 500 000 15020Procurement Office

FYROM AP2003 FYROM – National Devt. 2 750 000 33110“Standardisation, Metrology, Accreditation and QV”

FYROM AP2003 FYROM – Agricultural Policy 500 000 31110and legal approximation unit

FYROM AP2003 FYROM – Animal Identification System 750 000 31195

FYROM AP2003 FYROM – Implementation 9 000 000 16310of local Infrastructure

FYROM AP2003 FYROM – Vocational Education and Training 1 000 000 11330

FYROM AP2003 FYROM – Reform of the Judiciary, 2 500 000 15030further administrative developmentof courts and prosecutors

FYROM AP2003 FYROM – Strengthening control 2 800 000 16320of the green border

FYROM AP2003 FYROM – Border control points 1 200 000 15030

FYROM AP2003 FYROM – Immigration and asylum 1 000 000 16320

FYROM AP2003 FYROM – Fight against crime 3 000 000 15030

FYROM AP2003 FYROM – Improvement management 1 000 000 14015Trans-boundary Water Resources

FYROM AP2003 FYROM – General Technical Assistance 800 000 15010Facility

FYROM AP2003 FYROM – Programme Reserve 1 200 000 43010

FYROM CARDS/2003/ 004-852 – Running Costs of 5 000 000 91010the European Agency for Reconstruction 2003

FYROM Global Commitment TEMPUS CARDS – FYROM 2003 3 000 000 11420

Kosovo AP2003 Kosovo – Support 2 000 000 15040to the Assembly of Kosovo

Kosovo AP2003 Kosovo – Public administration reform 2 000 000 15040

support at the central levelKosovo AP2003 Kosovo – Support for decentralisation 1 000 000 15040

to the municipal level

Kosovo AP2003 Kosovo Support to police 5 000 000 16320


Kosovo AP2003 Kosovo – Support for seed 600 000 31110regulatory services

Kosovo AP2003 Kosovo – Development of 11 280 000 16310

economic & social infrastructureKosovo AP2003 Kosovo – Employment regeneration 3 000 000 16110

Kosovo AP2003 Kosovo – Institutional support 1 000 000 15050

to Civil Society OrganisationsKosovo AP2003 Kosovo – General Technical Assistance 2 000 000 15010

Facility and Programme Reserve

Kosovo CARDS/2003/ 004-870-2003 – 2 000 000 15020Action Programme for Kosovo –Customs & Taxation

Kosovo Global Commitment TEMPUS CARDS – 1 000 000 11420



KOSOVO 2003Kosovo CARDS/2003/ 004-857 – Support for 19 765 106 15061

the operating costs of the EU Pillar of UNMIK 20

Rep. Montenegro AP2003 Montenegro – Support to judicial reform 1 000 000 15030

Rep. Montenegro AP2003 Montenegro – Border police reform 2 000 000 16320

Rep. Montenegro AP2003 Montenegro – Reform and restructuring 2 000 000 23010of the energy sector

Rep. Montenegro AP2003 Montenegro – Enhanced solid 2 700 000 14050waste management

Rep. Montenegro AP2003 Montenegro – Enhanced sewerage 1 300 000 14020and wastewater management

Rep. Montenegro AP2003 Montenegro – Strengthening veterinary 1 500 000 31195and phyto-sanitary services

Rep. Montenegro AP2003 Montenegro – Civil society 1 000 000 15050

Rep. Montenegro AP2003 Montenegro – General Technical 500 000 15010Assistance Facility

Rep. Montenegro CARDS/2003/ 004-834-2003 – 1 000 000 16320Action Programme for Montenegro –Customs & Taxation

Rep. Montenegro Global Commitment TEMPUS C ARDS – 500 000 11420Montenegro 2003

Rep. Serbia AP2003 Serbia – Ministryof State Administration – 2 000 000 15040training of middle management

Rep. Serbia AP2003 Serbia – SupportPublic Finance Reform 20 000 000 15020

Rep. Serbia AP2003 Serbia – Union ofSerbia and 9 000 000 15040Montenegro structures/European integration

Rep. Serbia AP2003 Serbia – Support to Justice System 13 000 000 15030

Rep. Serbia AP2003 Serbia – Ministry of Health Capacity 9 500 000 12110Building Measures

Rep. Serbia AP2003 Serbia – EPS Capacity B uilding Measures 5 400 000 23010Rep. Serbia AP2003 Serbia – Rehabilitation Thermal 63 600 000 23020

Power Plants


Rep. Serbia AP2003 Serbia – Civi lSociety/Inclusion 1 000 000 15050in Poverty Reduction Strategy Process

Rep. Serbia AP2003 Serbia – Support to the Media Sector 6 000 000 22030

Rep. Serbia AP2003 Serbia – General technical 5 000 000 15010Assistance Facility

Rep. Serbia CARDS/2003/ 004-819-2003 – 5 000 000 15020Action Programme for Serbia –Customs & Taxation

Rep. Serbia Global Commitment T EMPUS CARDS – 4 000 000 11420Serbia 2003

Serbia and CARDS/2003/ 004-851 – Running Costs 1 500 000 91010Montenegro of the European Agency for Reconstruction 2003

Serbia and CARDS/2003/ 004-850 – Running Costs 4 000 000 91010



Montenegro of the European Agency for Reconstruction 2003Serbia and CARDS/2003/ 077-779-CARDS/ and others – 2 223 160 43010Montenegro Posting of g eneral bank i nterest

Serbia and CARDS/2003/ 004-849 – Running Costs o f 11 000 000 91010Montenegro the European Agency for Reconstruction 2003

Europe Unalloc. CARDS/2003/ 061-873 – 2 048 000 43010PHARE MA9904 balance of decentralisedcontracted funds

Europe Unalloc. CARDS/2003/ 061-879 – 1 330 371 43010PHARE MA0001 balance of decentralised

contracted fundsEurope Unalloc. CARDS/2003/ 061-840 – 91 636 43010

PHARE MA9901 balance of decentralisedcontracted funds

Europe Unalloc. AP2003 Regional – I ntegrated Border Management 1 000 000 16320

Europe Unalloc. AP2003 Regional – Further support 20 000 15010to the General Support Facility

Europe Unalloc. AP2003 Regional – Trade-related support facility 1 250 000 31110

Europe Unalloc. AP2003 Regional – Sigma III 2 000 000 15040

Europe Unalloc. AP2003 Regional – Social Institutions Support Project 2 000 000 16310

Europe Unalloc. AP2003 Regional – Cross Border Institution Building 2 000 000 16320

Europe Unalloc. AP2003 Regional – Into Europe Programme 1 000 000 15010

Europe Unalloc. AP2003 Regional – Capacity B uilding 2 000 000 25010for business organisations

Europe Unalloc. AP2003 Regional – Regional Co-operation 5 000 000 15030in the field of development of independentfunctioning judicial system

Europe Unalloc. AP2003 Regional – Regional Statistical Co-operation 3 000 000 16362

Europe Unalloc. AP2003 Regional – Pilot plan Sava River Basin Project 2 300 000 14040

Europe Unalloc. AP2003 Regional – Regional Media 1 000 000 15065Support Programme

Europe Unalloc. AP2003 Regional – Network t o Network P rogramme 1 000 000 15050

7 | 2 Commitments 2003 – TACIS

Project title Amount € Sector

Nuclear Safety Action Programme 2003/Armenia 700 000 23064Belarus 2003 AP/Nuclear safety 2 000 000 23064

Belarus 2003 AP/Small projects Programme 1 000 000 43010

TEMPUS BELARUS Programme 2 000 000 11420

TACIS/2003/ 004-943 – Belarus 2003 TACIS Action Programme 1 000 000 23064

Nuclear Safety Action Programme 2003/Kazakhstan 1 000 000 23064

Moldova 2003 AP/Institutional, 7 000 000 15010Legal and Administrative Reform

Moldova 2003 AP/Private Sector & Economic Development 7 000 000 25010



Moldova 2003 AP/Social Consequences of Transition 5 000 000 16310Moldova 2003 AP/Small projects 4 000 000 43010

TEMPUS Moldavia Programme 2 000 000 11420

TACIS/2003/ 004-802-2003 – 10 000 000 14010Northern Dimension Environmental Partnership Support Fund

Russia 2003 AP/Managers Training Programme 4 000 000 25010

Russia 2003 AP/Support for Institutional, 21 000 000 15010Legal and Administrative Reform

Russia 2003 AP/SupportPrivate Sector and Assistance 12 500 000 25010for Economic Development

Russia 2003 AP/Support in addressing Social 14 000 000 16310Consequences of Transition

Russia 2003 AP/Institution Building Partnership Programme 11 500 000 15010

Russia 2003 AP part II/Institutional, 5 000 000 15010Legal and Administrative Reform

Russia 2003 AP part II/Social Consequences of Transition 10 000 000 16310

Russia 2003 AP part II/Bistro 3 000 000 43010

Russia 2003 AP part II/Policy Advice Programme 4 000 000 15010

ISTC yearly budget 21 000 000 16381

Global Commitment TEMPUS TACIS – Russia 2003 10 000 000 11420

ISTC yearly budget 21 000 000 16381

Baltic Sea Region Programme 2003/Environmental Protection 3 000 000 14010

Baltic Sea Region Programme 2003/ 5 000 000 25010Private Sector & Economic Development

TACIS/2003/ 004-802-2003 Northern Dimension 20 000 000 23064Environmental Partnership Support Fund

Nuclear Safety Action Programme 2003/Russia 29 170 000 23064

Regional co-operation 2003 AP/ 1 000 000 21040Navigational channel for Turmenbashi port

Ukraine 2003 AP/Institutional Legal and Administrative Reform 22 000 000 15010

Project title Amount € Sector

Regional co-operation 2003 AP/ 2 000 000 16320Improvements on border crossings between Ukraine and Moldova

Regional co-operation 2003 AP/ 2 000 000 21081

Freight forwarders training coursesRegional co-operation 2003 AP/Maritime training 2 000 000 21081

Regional co-operation 2003 AP/ 2 000 000 23050Development of maintenance excellence in NIS gas companies

Regional co-operation 2003 AP/ 800 000 21010Satellite monitoring and accident prevention

Pre-feasibility studies on the North-South gas transit 1 700 000 23050interconnection in Caucasus and CA

Regional co-operation 2003 AP/ 5 000 000 14040Transboundary river basin management



Regional co-operation 2003 AP/ 3 000 000 14010Water investment support facility

Regional co-operation 2003 AP/ 11 000 000 16320Enhancing migration management in the RF and Belarus

TACIS/2003/ 005-622-2003 – 10 000 000 25010Action Programme for the EU-EBRD Investment Preparation

TACIS/2003/ 005-777-TACIS 2003 Evaluation Activities 1 000 000 91010

Cross B order Programme 2003/Border crossing infrastructure 15 000 000 16320

Cross Border Programme 2003/Promotion of environmental protection 7 000 000 41010

Cross Border Programme 2003/Support for the private sector 3 800 000 25010Cross Border Programme 2003/Small Projects Facility 9 200 000 43010

Nuclear Safety Action Programme 2003/Tecnical & Scientific Support 3 000 000 23064

Nuclear Safety Action Programme 2003/Regional Projects 2 000 000 23064

Nuclear Safety Action Programme 2003/Reserve 3 360 000 23064

TACIS interest for delayed payments 317 116 91010

Central Asia 2003 AP/Institutional, 31 350 000 15010Legal and Administrative Reform

Central Asia 2003 AP/Support in addressing the Social 10 000 000 16310Consequences of Transition

Central Asia 2003 AP/Development of Infrastructure Networks 4 500 000 21010

Regional co-operation 2003 AP/Development 3 000 000 22010of e-Societies in the South Caucasus

Global Commitment TEMPUS TACIS – Central Asia 2003 4 150 000 11420

7 | 3 Commitments 2003 – MEDA


Algeria MED/2003/ 006-009 – Global allocation 2004 – 629 500 16350Algeria Delegation

Algeria Global Commitment TEMPUS MEDA 3 997 500 11420

Algeria MED/2003/ 004-194 – 16 000 000 43020Rehabilitation of zones affected by terrorismin six villages

Algeria MED/2003/ 005-720 – 25 000 000 15010Modernisation and support programmefor administrative reform

Egypt MED/2003/ 004-150 – 40 000 000 33110



Trade Enhancement Programme B, TEP-BThe TEP-B programme aims at encouraging andaccelerating the implementation of policies andreforms already decided on and carried outin their essential principles by the EgyptianGovernment. These reforms aim primarily atreducing the duration and the costs of foreigntrade operations, especially import, export andtransit of goods. The TEP-B programme amountsto €40 million and has a duration of 30 months.

Egypt MED/2003/ 005-714 – 6 000 000 33110Trade Enhancement Programme –

Technical Assistance for Customs

Egypt MED/2003/ 005-719 – 17 000 000 16110Financial and Investment Sector Co-operation (FISC)Social co-operation

Egypt MED/2003/ 005-722 – 20 000 000 11220Social Development and Civil Society:Children at Risk

Egypt MED/2003/ 005-716 – 18 000 000 31193Financial Investment and Sector Co-operation (FISC)Rural Co-operation

Egypt MED/2003/ 005-731- 2 000 000 33110Promotion of the Association Agreement EU-Egypt

Egypt MED/2003/ 006-010 – Global allocation 2004 – 767 600 16350Egypt Delegation

Egypt Global Commitment TEMPUS MEDA 5 494 000 11420

Irak MED/2003/ 073-486 – Reconstruction of Iraq – 29 000 000 16340Contribution to the UNDP's Thematic T

Jordan MED/2003/ 005-635 – 35 000 000 53020Emergency Budgetary Support in Jordan

Jordan MED/2003/ 006-011 – 468 000 1635

Global allocation 2004 – Jordan Delegation Jordan MEDA/JOR/628/006 – 5 000 000 32

Jordan Industrial Modernisation Programme (IMP)


Morocco MED/2003/ 005-044 – 96 000 000 21010Budgetary Support Programme for reformof the transport sector This three years' programme amounting to€96 million covers the road, air and maritimetransport sectors. This programme aims to adaptand modernise the legislative and institutionalframework, to reinforce the state's regulatorypower and the opening to competition andprivate participation of service production andtransport infrastructure management. It alsoencourages Moroccan integration into Europeantransport networks via gradual alignmentwith the European acquis.

Morocco MED/2003/ 005-723 – 40 000 000 15030

B d t l t



Border control management

Morocco MED/2003/ 005-725 – 5 000 000 16110Institutional Support for the circulation of people

Morocco MED/2003/ 006-012 – 815 000 16350Global allocation 2004 – Morocco Delegation

Morocco Global Commitment TEMPUS MEDA 3 997 500 11420

Morocco MEDA/MAR/028A – 845 000 32130Support for professional associations

Palestinian Admin. MED/2003/ 004-837 – 80 000 000 53020Areas Reform Support Instrument (RSI) –

B: Finance Facility

Palestinian Admin. MED/2003/ 006-013 –Areas Global allocation 2004 – West Bank Delegation 1 114 000 16350

Palestinian Admin. Global Commitment TEMPUS MEDA 2 000 000 11420Areas

Palestinian Admin. MED/2003/ 061-772 – 22 000 000 43010Areas Trust Fund for Emergency Services Support

Project II (ESSP II)The objective of the present support to theEmergency Services Support Project II created and

coordinated by the World Bank is to mitigatethe deterioration of health and higher educationservices resulting from the ongoing conflict andthe consequent economic crisis and fiscal impact.Its scope would be limited to recurrent expendituresfor primary health care, hospital secondary andtertiary care and higher education services.The ESSP II project amounting to €22 millionexpired on 31 March 2000

Palestinian Admin. MED/2003/ 004-835 – 15 000 000 32130Areas Emergency Support to the private sector

in the West Bank and the Gaza Strip

Palestinian Admin. MED/2003/ 004-843 – 10 000 000 15020Areas Reform Support Instrument (RSI) –

A: Technical Assistance


MEDA MED/2003/ 004-764 – 6 000 000 15040Training of public administrations

MEDA MED/2003/ 004-698 – 4 000 000 33110

Support to the implementation of thesouth-south sub-regional programme

MEDA MED/2003/ 004-801 – Euromed Heritage III 10 000 000 16350

MEDA MED/2003/ 005-016 – 19 136 650 43010Global allocation 2003-2004 (€35 million)

MEDA MED/2003/ 005-874 – 22 000 000 25010EIB: Risk Capital Facility

MEDA MED/2003/ 004-787 – 19 000 000 43010FEMIP Support Fund (allocation 2003)

Middle East Unalloc. MED/2003/ 004-778 – 10 000 000 15050

Middle East Peace Projects (MEPP) 2003



Middle East Peace Projects (MEPP) 2003 Yemen MED/2003/ 005-973 – 8 000 000 1222

Health Sector and Demography Support

7 | 4 Commitments 2003 – ACP


Unspecified Community participation in the heavily indebted 460 000 000 60030poor countries (HIPC) debt relief initiativeThe World Bank-led Highly Indebted Poor Countries(HIPC) Initiative is a worldwide, multi-donor approach to tackling debt. By the end of 2003,23 ACP countries – almost two-thirds of the HIPCs –were benefiting from debt relief under the Initiative.

Unspecified Contribution to the Global Fund to fight AIDS, 170 000 000 12250tuberculosis and malaria

The Global Fund was created to finance a dramaticturnaround in the fight against AIDS, tuberculosisand malaria. These three diseases kill more thansix million people each year and the numbers are



six million people each year, and the numbers aregrowing. The Fund constitutes a massive scaling-up of resources and is already supportingaggressive interventions against all three.

Zambia Poverty Reduction Budget Support Programme 117 000 000 530202003-2006 (prbs01)Despite its recent extensive economic reforms,positive per capita income growth and richsupply of natural resources, Zambia remains oneof the poorest countries in Africa, with per capitaincome of less than €270 per year. It has also

suffered a devastating HIV/AIDS pandemic. So thisnew EC Programme will help fund the Zambiangovernment’s Poverty Reduction SupportProgramme, launched in 2002,which aims tofoster economic growth, improve public financemanagement, and impact poverty directly. It willhelp finance essential public services,ensure thatassets are created along with the funds requiredto staff or resource them, and will offer incentivesto the government to improve financial management,foster economic stability, and spend money

to reduce poverty effectively.Burkina Faso Support for the Transport Sector Programme (PST-2) 115 000 000 21020

Developing an effective, properly maintainedtransport system, and thereby cutting productionand distribution costs, is key to Burkina Faso’sstrategy for tackling poverty and fostering economicgrowth, all the more so because the countryis landlocked.The programme will fund theupgrading and regular maintenance of over 1000 km of asphalt roads and over 1400 kmof earth roads, and will provide support to helpimprove the management of the country’s

road network.

Tanzania Poverty Reduction Budget Support 114 000 000 53020Programme 2003-2006


Unspecified ACP-Zone deconcentration process (2003-2006) 90 200 000 91010

Madagascar Access to Diana and Sofia regionsin Northern Madagascar 90 000 000 21020

Niger Multi-annual Support Programmefor the fight a gainst p overty ( PPARP 2003-2005) 90 000 000 53020

Mozambique Rehabilitation of t he Namacurra-Rio Ligonha Road 65 000 000 21020

Benin Joint budget support for poverty reduction(2003-2005) 55 000 000 53020

Central A frican Rehabilitation of t he Bouar Garoua-Boulaï Road 55 000 000 21010Republic

Chad EC-AFD-KFW Joint Policy Support Programme 50 000 000 14030for the Waters of Lake Chad

Chad Budget support for poverty reduction 50 000 000 53020

and growth (2003-2006)



and growth (2003 2006)Kenya Northern Corridor Rehabilitation Programme 50 000 000 21020

(Mai Mahiu-Naivasha-Lanet road)

Unspecified TRADE.COM all A CP institutional t rade 50 000 000 25010capacity building facility

Rwanda Multi-annual Support Programme 50 000 000 53020for the fight against poverty (PPARP 2003-2005)

Mauritania Rosso-Boghe Road, Lot 1, Rosso-Lexeiba II 45 000 000 21020

Sierra Leone Road Infrastructure Programme 42 000 000 21020

Liberia Post-Conflict Rehabilitation and Capacity 40 000 000 16340Building Programme

Eritrea Rehabilitation of the Nafasit-Dekemhare-Tera 37 000 000 21020Imni Road

Tanzania Dar Es Salaam water supply 35 000 000 14020and sanitation (22254)

Tanzania Water Supply Programme regional 33 660 000 14020centres – Phase 1

Mali Multi-annual Budget Support Programme 32 920 000 53020in the strategic framework of the fightagainst poverty

Rwanda Decentralised Programme for rural 32 000 000 43040poverty reduction

Benin Support for implementation of urban road 30 000 000 43030and general rehabilitation projects

South of Sahara Djibouti-Ethiopia railway line – 30 000 000 21030unallocated Minimum safety p rojects

Uganda APEX Private Enterprises IV GL 30 000 000 24030

Mauritius Mauritius Wastewater Sector Policy Support 29 800 000 14050Programme(WSPSP) 2003-2006To continue its recent rapid economic growth,Mauritius needs to effectively address theassociated environmental consequences. Theseinclude the need for improved wastewater disposal


Angola Programme of emergency mine action for 26 000 000 32210sustainable return and resettlement

Benin Support to periodic maintenance 25 000 000 21020

of the classified road networkBurundi Support to the Burundi peace process 25 000 000 0

Ethiopia Urban electricity distribution network – 25 000 000 23040EEPCO (21866)

Ethiopia Development o f Bank of E thiopia (DBE) GL II 25 000 000 24030

Mozambique Health Sector Support Programme II 25 000 000 12220

Unspecified EC/ACP/WHO Partnership 25 000 000 12110on pharmaceutical policies

Sierra Leone Transitional support to former IDP's, returnees, 25 000 000 16340refugees and hosting communities in Sierra Leone

Sierra Leone Re-opening Sierra Rutile mine 25 000 000 32264



p g

Tanzania Support to primary education development plan 25 000 000 11220

Unspecified Support to competitiveness 24 000 000 31161of the rice sector in the Carribean

Namibia Namibia Education Sector Programme (ESP) 21 000 000 112202003-2007

Angola Water supply and sanitation for the suburban 20 000 000 14030areas of Luanda (Angola)

Côte d’Ivoire EmergencyPost-CrisisRehabil itat ion Programme 20 000 000 16340

Unspecified 2003 Budget – Centre for Business Development 18 417 000 25010Unspecified Private-sector development 18 298 000 25010

Unspecified ACP-Zone deconcentration process (2003-2006) 17 980 000 91010

Lesotho Capacity building in economic planning 17 500 000 15010

Mozambique Poverty r eduction budget s upport I I (PRBS I I) 16 400 000 530202002-2005

Angola Programme of support to the Social Action Fund – 16310Phase III

Unspecified 2004 Budget of the technical centre 15 580 000 25010

for agricultural development

Jamaica Port Antonio water and sewerage (21613) 15 000 000 14020

South of Sahara West African Regional Health Programme 15 000 000 12110Unallocated

South of Sahara Implementation and co-ordination of agricultural 15 000 000 31183Unallocated research and training in the SADC Region

Unspecified 2003 Budget o f the technical centre for agricultural 14 700 000 25010and rural co-operation

South of Sahara Support to the ASECNA Training Programme 14 200 000 21050Unallocated

Mozambique Periodic R oad Maintenance and Capacity B uilding 14 000 000 21020Programme

Zambia Bwana Mkubwa mining expansion (21657) 14 000 000 32264


Benin Support to a comprehensive juridical and judiciary 10 000 000 15030reinforcement Programme

Ethiopia Djibouti-Ethiopia railway line – 10 000 000 21020

Minimum safety projectsMalawi Tea sector facility 10 000 000 31162

Unspecified Emergency P ost-Crisis Rehabilitation Programme 10 000 000 16340

Sierra Leone Freetown-Conakry Road 10 000 000 21020

Sierra Leone Rehabilitation and Resettlement P rogramme 10 000 000 16340

South of S ahara Support to the Secretariat of the inter-regional 9 700 000 43010Unallocated co-ordinating Committee

South of Sahara Regional tuna tagging project 9 700 000 31382Unallocated

Togo National Programme of decentralised 9 500 000 41010environmental management projects



Oceania Pacific ACP Regional Economic Integration 9 200 000 15010Unallocated Programme (PACREIP)

Ethiopia Integrated Financial M anagement System (IFMS) – 9 000 000 15020Pilot phase

Netherlands Antilles Restoration of the Queen Emma Bridge 9 000 000 21020

Unspecified Deconcentration activities in ACP countries 8 840 530 910102001-2002 – RELEX

South ofSahara Rehabil itation ofthe Bouar Garoua-Boulaï Road 8 500 000 21010Unallocated

Cameroon Bananas Plan 2002-2006 (21815) 8 000 000 31161

Liberia Support to the peace process in Liberia 8 000 000 15061

N&C America Caribbean financialservicescorporation (CFSC) 8 000 000 24030Unallocated

Oceania Pacific regional initiatives for the delivery 8 000 000 11220Unallocated of b asic e ducation (PRIDE)

Unspecified Sub-Saharan Africa Transport Policy P rogramme 8 000 000 21010(SSATP) regional capacity building project

Uganda Civil Society Capacity Building Programme 8 000 000 15050

Haiti Micro-projects Programme Republic of Haiti 7 999 900 12220Unspecified Development of malaria vaccines 7 000 000 12182

and their multi-centre trials

Swaziland SEB III Maguga (22105) 7 000 000 23065

St. Vincent-Grenadine Education SupportProgramme 6 682 764 21020

Central African Rehabilitation of the road network 6 530 000 43030Republic of the town of Bangui

Burkina Faso Global Loan (21875, 21876) 6 000 000 24030

Trinidad & Tobago DFL V III GL (21600) 6 000 000 24030

Chad EU-UNDP Support Programme 5 975 000 15050for good governance in Chad

Côte d’Ivoire ECHO/TPS/EDF/2003/01000 – 5 740 000 72010


South of Sahara Forest ecosystems in Central Africa – 4 600 000 41040Unallocated Conservation and rational use – Biodiversity

Vanuatu Social infrastructure and equipment 4 531 000 11120

Antigua & Barbuda Strengthening of technical and vocational 4 300 000 11110education project

South of Sahara Regional tuna tagging project 4 300 000 31382Unallocated

Unspecified Participation at ACP meetings, parliamentary 4 000 000 15040round tables, ACP-EU council of ministers conferencesand other meetings

Mauritania Grands Moulins de Mauritanie (21501) 4 000 000 32161

Mozambique ACCORD AMORIM Hotels ( 21844) 4 000 000 33210

Unspecified Training Programme on the contractual 4 000 000 15020and financial procedures of the 9th EDF



and financial procedures of the 9t EDF

Western Samoa DBS V GL (21769) 4 000 000 24030

Western Samoa Micro-projects P rogramme 4 000 000 11120

Congo, Dem. Rep. ECHO/COD/EDF/2003/01000 – 4 000 000 72010Assistance to displaced & other vulnerable persons

Tuvalu Outer Islands Social Development 3 965 135 11110Support Programme

Botswana Enhancement of Gaborone technical college 3 880 000 11330and automotive trades technical college

Uganda Support to feasible financial institutions 3 550 000 32161and capacity building efforts (suffice) – Phase II

South of Sahara Regional surveillance pilot project 3 500 000 31320Unallocated

Dominican Republic Financial Sector GL II B (21993) 3 440 000 24030

St. Kitts-Nevis Information Technology (IT)-based 3 180 000 11120training and management

Guinea Freetown-Conakry Road 3 000 000 21020

Rwanda Support t o the economic a nd social r einsertion 3 000 000 43020of the demobilised people of the town of Kigali

Tonga Vava'u Social Sector Programme 3 000 000 11110

Unspecified Economic Integration Support 3 000 000 15010Programme to the BLNS – Phase I

Sudan Humanitarian Plus Programme 2 999 000 71010

Suriname Restauration of St Peter and St Paul Cathedral 2 800 000 16350

Unspecified Internal management of individual experts 2 700 000 91010

Oceania Unallocated Reducing vulnerability of pacific states – 2 550 000 11430Extension to six new ACP states

Malawi Support t o health reform and decentralisation 2 456 713 12110

New Caledonia Professional t raining and replanting of m ine sites 2 450 000 32210


Rwanda Health Sector Support Programme 1 995 000 12110

Sudan Capacity Building Programme 1 995 000 99810for non-state actors in the Sudan

Vanuatu Public works department (PWD) 1 995 000 21010maintenance training project

Ghana Cultural heritage and local development 1 985 000 41040in Elmina Andold-Accra (CHALDEA)

Trinidad & Tobago Support to Caribbean business service 1 982 000 32130LTD (CBSL) Phase II

Oceania unallocated Development of sustainable agriculture 1 981 000 31161in the Pacific II

Niger Preparatory Studies for the Road Development 1 980 000 21020Programme PIN 9E

Tanzania Implementation of Zanzibar “Muafaka” 1 975 000 15040Political Agreement



Political Agreement

Niger Syrene: practical artisanal systems for 1 964 000 32140rural and micro-businesses

Sudan Capacity building for the Sudanese administration 1 96 0000 15040

Madagascar Consolidation of the democratisation process 1 950 000 15030

South of S ahara Plate-form for West African rural development 1 950 000 43040Unallocated and food security

South of Sahara Eastern and Southern African regional 1 950 000 33110Unallocated support facility

Burkina Faso Support to decentralised cultural i nitiatives – 1 900 000 16350Phase 2 (PSIC2) Project 8 ACP BK 45

Malawi Support to health reform and decentralisation 1 857 794 12230of Chiradzulu Hospital

Trinidad & Tobago Rural electrification – 2003 1 850 000 23040

N&C America Support to Caribbean regional technical 1 800 000 15010unallocated assistance centre

Rwanda Electoral Support Programme 1 800 000 15062

Ghana Establishing a mapping and monitoring system 1 700 000 15010for development activitie

Comoros Support cell for the EDF national director 1 684 449 15010

Montserrat Montserrat Community College (MCC) 1 680 000 11120

Chad Forest development and land management 1 650 000 31220

Unspecified Century Regional Investment Bank 1 650 000 24030

South of S ahara Institutional s upport t o the Secretary-General 1 650 000 15010Unallocated of the COI

Oceania ADDPIC (PPP) Extension ofthe PlantProtection 1 512 000 31192Unallocated Programme to six new countries in the Pacific

Tanzania 4th Micro-projects P rogramme in Tanzania 1 469 725 43010Barbados Forensic science laboratory 1 400 000 15030

Niger NIGETECH 2 1 400 000 11330


Unspecified Small a rms m anagement a nd reduction 921 000 15030

Grenada Expansion of TA Marryshow Community College 910 000 11120

Tonga Post-cyclones AMI and ESETA Rehabilitation Programme 890 000 21040

Dominican Republic Support to the office of the NAO 864 665 15010

Ghana Support to the Ghana audit service 800 000 25010

Botswana General TA for support t o tax administration reform 750 000 15020

Chad Support project for activities and educational 750 000 11230missions to youth and culture institutions

Ghana Feasibility and design studies for the feeder road 750 000 21020improvement project (FRIP) in the Eastern Region

Ghana Feasibility and design studies for the 750 000 21020Techiman-Kintampo and Gambia n°2 –Kyeremasu Roads



Guinea Audit Programme for EDF projects 750 000 91010

Jamaica Technical assistance (TA) for preparation of Jamaica 750 000 21020road sub-sector policy and master plan

Lesotho TA to ministry of natural resources 750 000 14010

Lesotho Study – Upgrading & strengthening paved 750 000 21020primary road network

Madagascar Support to launch of Communal Aid Programme 750 000 43040

Niger Advisory aid on planning improvement 750 000 15010

N&C America Transitional institutional support 750 000 43081unallocated (capacity building for Cariforum)

Senegal Studies for the implementation 750 000 14030of the 9th EDF in the sanitation field

St. Lucia St. Lucia, technical studies 750 000 11110

Tanzania Rehabilitation of Zanzibar port 750 000 21040

Central African Rep. TA for the organisational, financial 749 400 15040

and technical audit of EDF ProgrammesZambia Capacity building in Dpt. of economic 747 700 15010

and technical co-operation

Unspecified Feasibility study into support to 700 000 33110the economic integration sector

Unspecified Strategic planning in public services 646 000 15010

Cape Verde Health project f or the town of P raia 600 000 12110

Fiji Environment Programme 600 000 41010

Unspecified Participation at A CP meetings ( Joint Parliament A ss.) 600 000 91010Vanuatu Support to non-state actors 600 000 15050

Zambia Feasibility study rehabilitation and maintenance 600 000 21020


Surinam TA for rehabilitation of the port of Paramaribo 500 000 21040

Mauritius Post-Kalunde Rehabilitation Programme for Rodrigues 499 000 14030

Jamaica Institutional s trengthening of t he office of t he DNAO 494 500 15010

Solomon Islands Police commissioner for Solomon Islands 488 000 15030

Vanuatu Support to the ministry of education 430 000 11120

Fiji ECHO/FIJI/254/2003/01000 – 420 000 72010Emergency humanitarian aid for Fiji islandsaffected by cyclone AMI

Grenada Preparatory study for the Grenada forts project 400 000 33210

Unspecified Seminar on sustainable energy for ACP African states 400 000 23010

Nigeria 2nd provisional support to the National Director 400 000 15010



Unspecified 9th EDF programming – TA to support 400 000 15040the preparation of the SPDS

Tanzania Support to the NAO's office 399 000 53010

Zambia Rehabilitation of Kazungula pontoons 380 000 21040

Antigua & Barbuda Multi-country drug demand reduction project 350 000 12191

Chad Aid programme for decentralised cultural initiatives 350 000 16350

Cameroon Africa leasing company S.A. 347 550 24030

Madagascar 5th choreographic festival of Africa 300 000 16350and the Indian Ocean (Sanga III)

Malawi Kangankunde mining project (21976) 300 000 32220

Swaziland Provision of education consultancy services 285 000 11110

Grenada Multi-country drug demand reduction project 280 000 12191

Trinidad & Tobago Feasibility study for tertiary level education 270 000 11110

Mali 5th African photographic festival at Bamako 265 000 16350

Dominica Multi-country drug demand reduction project 260 000 12191

Unspecified Preliminary assessment of public finances 252 157 24010

Angola Studies into institutional aid 250 000 15040and good governance

Mauritania TA to ministry of rural development 250 000 31110and environment – Phase II

Unspecified Thematic study – ICT sector 250 000 22010

Zambia Public welfare assistance scheme 232 000 15010

Uganda Support to NAO's office 225 000 15010


Unspecified Feasibility s tudy o f the project f or African 195 156 41010monitoring of the environmentfor sustainable development (AMESD)

Sierra Leone Audit o f budget s upport a nd evaluation 195 000 91010of matrix of corrective measures

St. Vincent-Grenadine Preparation of construction documents 195 000 11420St. Vincent college extension

Unspecified ‘LE COURRIER ACP-UE’ Numbers 1 92-202 188 000 99820

N&C America Feasibility study: future of the ICT – 187 000 22020Unallocated Regulatory a nd institutional

St. Vincent-Grenadine Multi-country d rug demand reduction project 185 000 12191

Guyana Design & tender procedure Guyana sea defences 178 220 41050

Gabon TA training and equipment 170 000 15040Unspecified Feasibility study of the mike project 165 000 41030



p y y p j 5 3

Antigua & Barbuda Preparation of d esign and construction documents 150 000 43030for the Antigua state college extension

Equatorial Guinea Technical Assistance – Infrastructure 150 000 14010

South of Sahara PALOP Training and Co-ordination Programme 150 000 15010Unallocated

Namibia Design & prep. Tender documents – 150 000 14020water recl. plant Luderitz

Sierra Leone Study for the prioritisation of 600 kms of rural roads 150 000 21020

St. Helena Technical a ssistance for project d etailed design 150 000 21040

Mali Identification study for institutional 145 000 15040development aid project (PADI)

Côte d’Ivoire Feasibility study for Civil Society Aid Programme 144 342 15050

Belize Study on agriculture sector-wide 140 000 31110approach Programme

Dominica Sectoral study – Road maintenance strategy plan 140 000 21020

Ethiopia Feasibility study for Pastoral Livelihoods Programme 135 000 31163

Guyana Feasibility study for a Budgetary Support Programme 135 000 15010to Guyana under the 9th EDF

Seychelles Preparation for updating of p urchasing director plan 125 000 14050

Cameroon Feasibility study and elaboration of Financial 124 400 25010Programme for budgetary and institutional aidto Cameroon in the framework of the 9th EDF

Burkina Faso TA to the Ministry for Human Rights 120 000 15063in Burkina Faso

Mali Evaluation mission for co-ordination 113 000 11110aid project

Burkina Faso Study f or Civil S ociety A id Programme 110 000 15050Namibia Technical Assistance to NAO – 107 000 31120

Rural profile strategic framework


Cameroon Study – Environmental profile of Cameroon 80 000 41082

Congo Evaluation and preparation of DDR projects 80 000 15064

Congo Study of river ALIMA navigability 80 000 21040

Congo TA on accountancy monitoring of projects 80 000 91010Comoros General population and housing census 80 000 13010

Cape Verde Expertise – Rural e lectrification project M aio 80 000 23020(7 ACP CV 49)

Gabon FORAC development aid 80 000 31210

Gabon Fight against child trafficking 80 000 16310

Guyana Elaboration study for the sea defence project 80 000 99810to be financed under the 9th EDF

Guyana Prep. T.O.R. + Tender documents – 80 000 21010Transport sector study



Transport sector study

Haiti Support to elaboration of an IPRSP 80 000 13010(poverty reduction strategy)

Mauritius Feasibility study – 80 000 15010Decentralised Co-operation Programme

Mauritius Feasibility study for integrated project market fair 80 000 33110

Mozambique TA to the Ministry of Fisheries (+ 8 ACP MOZ 43) 80 000 31310

Mozambique TA – Implementation support to Justice 80 000 15030Sector Programme

Niger Study – Photovoltaic drinking water supply system 80 000 14020

Niger Study – Aid Programme for non-state actors 80 000 15050

South of Sahara Evaluation of COMESA projects 80 000 91010Unallocated (7 RPR 637, 8 ROR 18, 21, 26)

Sudan Consultancy – Preparation of Recovery 80 000 15010and Rehabilitation Programme

Sudan TA consultant – Interim support to the NAO 80 000 15010

Sudan TA to the NAO for national media development 80 000 22010

Sudan TA to the NAO – Preparation of call for proposals – 80 000 15010Documentation

Sudan TA – Assess needs and priorities 80 000 16340in the area of Human Rights

Sudan TA – Assess needs and priorities 80 000 16340in aid co-ordination

Sudan TA – Assess needs and priorities 80 000 16340

in public administrationSudan TA – National natural resource 80 000 16340

management programme


Mauritania TA to road management office 79 900 21010

Mali Measures identification mission – Civil society 79 900 15050

Angola Identification – Reinforcement aid – Planning ministry 79 820 53010Ethiopia Feasibility s tudy f or Leadership Development P rogramme 79 815 15040

Angola Support to public administration reform 79 800 15040

Malawi TA to the national spatial data centre 79 750 43040

Nigeria TA – Study on potential 79 548 15010contribution to national census

Angola TA to planning ministry – Long-term strategy 79 500 53010

Cape Verde Water and sanitation study – Town of M indelo 79 500 14030

Mali Institutional aid – 79 500 12110

Structuring of food security systemsMozambique Prep. mission non-state actors 79 500 15050

Capacity Building Programme



Capacity Building Programme

Zambia Support to the NAO for closure of EDF commitments 79 500 91010

Congo, Dem. Rep. Evaluation of operational capacity 79 500 31110of INERA stations

Sierra Leone Study on terms & conditions 79 000 32266SRL-GOSL loan agreement – Rutile

Côte d’Ivoire Legal supportto prime minister’soff ice 78 742 15040

Côte d’Ivoire Study – Insertion of young health professionals 78 521 12110

Dominican Republic Study o n the dairy s ector – 77 956 31110A prospective analysis

Gabon TA for NO support cell reinforcement study 77 132 21010

Malawi TA to forestry dept. ministry of natural resources 76 500 31210

Ethiopia Feasibility study for police co-operation 76 064 16320

Ghana Formulation of a FP for private sector development 75 000 25010

Togo Study – Civic Education Programme 75 000 11110

Sierra Leone Support to the decentralisation process 72 120 15040

Haiti Support to Rehabilitation 72 000 15010Launch Programme (PRD)

Haiti Private sector and regional integration 71 000 25020technical assistance

Angola Audits of programme and 70 000 91010project budgets financed by the EDF

Guyana Elaboration study for support to the NAO 70 000 15040

Seychelles Tourism capacity building project 70 000 33210

Malawi Legal advice and audit of price revision – 68 000 91010


Mozambique Institutional support to NO services (transitory) 57 782 15010

South ofSahara Identification of cultural Aid Pilot Programme 57 000 16350Unallocated

Benin Global Evaluation PAS III (8 BEN 11,12,13) 53 900 91010

Malawi Prep. FP for the 9th Public Works Programme 53 700 43040

Haiti TA – Action plan for the pharmaceutical sector 53 650 12191

Chad Feasibility study – 52 071 15030Good Governance Support Programme

South of Sahara Study – Conflict prevention strategy 50 000 15010Unallocated

St. Lucia St. Lucia general hospital – Site survey 50 000 12230

Sierra Leone Good governance and institutional support 49 100 15010

Tanzania Support to non-state actors 46 000 92030



Angola Complementary study – Justice sector support projects 45 000 15030

Ethiopia NAO Support Programme 42 150 15010

Angola TA to civil engineering and infrastructure sector 42 000 15061

Haiti Business forum – Restitution workshop 42 000 25010

Solomon Islands Non-state actors 41 000 15050

Fiji Rural education identification study 40 000 11110

Gabon TA to NO – Organisation of national seminar on APE 40 000 25010

South of Sahara Final evaluation of 40 000 15010Unallocated “Support to economic integration” (7 RPR 721)

Solomon Islands Structural adjustment – Closure audit 40 000 91010

Tanzania TA final accounts – Waso Hill-Bagamoyo 40 000 21020Road rehabilitation project (7TA89)

Namibia Feasibility s tudy f or EC H IV/AIDS r esponse under 9th EDF 38 000 13040

Ethiopia Appraisal for capacity building for trade project 36 000 33110

Senegal Evaluation of CRDFP project (8 SE 11) 35 000 91010

Swaziland strengthening management capacity NAO 34 500 15010

Guinea Bissau Audit of programme budgets – 34 296 91010Valorisation of land resources (7 ACP GUB 35)

Botswana Support t o economic d iversification in Selebi-Phikwe 33 000 11110

Angola Evaluation 7 ACP ANG 94 – 32 000 15030Institutional support to the I.N.E.J.

Zambia Project a ppraisal & prep. FP for conservation farming 31 000 31130

Barbados TA for preparation of health sector support 30 000 53020


Mauritius Evaluation of t he Mahebourg market p roject ( 7 MAS 5 1) 15 000 91010

Madagascar Identification mission – TA parliamentarian training 13 500 15040

Benin Practical setting-up of financial programme – 13 475 15010

Private sector support (+8 BEN 35) Sierra Leone Economic and financial study 12 540 23010

on the revised Sierra Rutile LTD project

Burkina Faso Study – Civil society support 10 000 15050

Sierra Leone Installation of hand pumps – Verification study 9 632 91010

South of Sahara Signature ofRegionalIndicative Programme – 9 556 91010unallocated 9th EDF for Central Africa

Tanzania Financial audit – Support to prevention 8 000 91010of corruption bureau (8 TA 9)

Antigua & Barbuda Prep. FP – Learning resource centre (+8 AB 1) 5 000 11120

Jamaica Stakeholder workshop for transport policy 4 000 21010 T



Sierra Leone TA – Prep. fin. prop. for rehabilitation 3 102 15010distribution system

Tanzania Financial audit – Institutional strengthening 3 000 91010water supply and sewerage (7 TA 102)

Dominican Republic TA for inter-institutional 2 006 33110co-ordination external trade STABEX

Solomon Islands Support to peace process 853.12 15061

Positive and negative commitments for projects opened in 2003

Positive commitments 2003 Negative commitments 2003

6 ACP ET 67 78 350.00 -78 350.00

8 ACP CD 38 66 000.00 -13 928.92

8 ACP MAG 54 40 996.00 -40 996.00

8 ACP TPS 167 945 000.00 -945 000.00

9 ACP BAR 1 50 000.00 -50 000.00

9 ACP COM 1 25 000.00 -25 000.00

9 ACP HA 6 80 000.00 -80 000.009 ACP MOZ 5 77 000.00 -77 000.00

FED GPR

7 | 5 Commitments 2003 – Asia


Afghanistan ASIE/2003/ 005-008 – 800 000 43010Framework Contract AMS/451 –Dev. Co-operation – Afghanistan

Afghanistan ASIE/2003/ 004-847 – 79 500 000 16340Third Reconstruction Programme for AfghanistanThe EU has been, and continues to be, one of the major donors backing the reconstructionof Afghanistan. The contribution in 2003for reconstruction forms part of the EC'scommitment to Afghanistan pledged at the Tokyodonors' conference in 2002, and assistance

has been delivered in the meantime.The EC reconstruction effortis primarily aimedat improving the security and stability

f Af h i



of Afghanistan.

Afghanistan ASIE/2003/ 005-645 – 79 500 000 16340Fourth Reconstruction Programme for Afghanistan

Afghanistan ASIE/2003/ 005-869 – 50 000 000 16320Support to Law and Order in AfghanistanThis project will help the Afghan police imposelaw and order which is another key componentin Afghanistan's fight against drugs. It will alsoassist in reducing drugs smuggling on its borders.

Bangladesh ASIE/2003/ 005-009 – 1 160 000 43010Framework Contract AMS/451 –Dev. Co-operation – Bangladesh

Bangladesh ASIE/2003/ 005-813 – 105 000 000 11220Second Primary Education DevelopmentProgramme PEDP IIThe Second Bangladesh Primary EducationProgramme (PEDP II) will succeed the PEDP I,which consisted of 20 separate projects,and is a country-wide plan developed by theGovernment of Bangladesh (GOB) for developingprimary education. PEDP II consists of a policyand reform framework, strategies, activities,and an investment plan for the period from1 July 2003 to December 2009 includingperformance indicators, priorities for investmentsand capacity building. A consortium of 11 donors has been established to co-ordinatedonor support of PEDP II.

Bangladesh ASIE/2003/ 005-010 – 400 000 43010Framework Contract AMS/451Economic Co-operation – Bangladesh

Bangladesh ASIE/2003/ 004-951 – 950 000 31110Trade Related Technical Assistance:Pre Cancun Package


Cambodia ASIE/2003/ 059-286 – 3 200 91010Dummy Contract for payment of interest

Cambodia ASIE/2003/ 004-941 – Support to the Cambodian 866 236 1506227 July 2003 election of the members

of the National AssemblyCambodia ASIE/2003/ 005-824 – 5 000 000 31195

EU-Cambodia Smallholder LivestockProduction Project

China ASIE/2003/ 005-012 – 1 400 000 43010Framework Contract AMS/451 –Dev. Co-operation – China

China ASIE/2003/ 005-013 – 500 000 43010Framework Contract AMS/451 –Economic Co-operation – China

China ASIE/2003/ 005-976 – 1 600 000 21050EU-China Civil Aviation Co-operation –Consolidation Projectt

/ /



East Timor ASIE/2003/ 005-795 – 25 500 000 43040Timor Leste Rural Development Programme

India ASIE/2003/ 005-014 – 1 315 000 43010Framework Contract AMS/451 –Dev. Co-operation – India

India ASIE/2003/ 071-106 – 4 374 91010Late payment interest charges –Dry Zone Agriculture Development

India ASIE/2003/ 004-977 – 10 000 000 72010EC-India Disaster PreparednessSupport Programme

India ASIE/2003/ 005-971 – 684 612 11220Improving Quality Education and LearningEnvironment in Jammu and Kashmir

India ASIE/2003/ 005-015 – 500 000 43010Framework Contract AMS/451 –Economic Co-operation – India

India ASIE/2003/ 070-148 – 109 070 91010

Cross Cultural Programme

India ASIE/IND/2001/0002 – 13 400 000 33110EC-India Trade and InvestmentDevelopment Programme (TIDP)

Indonesia ASIE/2003/ 005-017 – 1 300 000 43010Framework Contract AMS/451 –Dev. Co-operation - Indonesia

Indonesia ASIE/2003/ 005-806 – 10 000 000 15030Good Governance in the Indonesian Judiciary

Indonesia ASIE/2003/ 005-780 – 7 000 000 15062EU Support to the 2004 elections in Indonesia

Indonesia ASIE/2003/ 005-018 – 100 000 43010Framework Contract AMS/451 –Economic Co-operation – Indonesia


Indonesia REH/2003/ 005-924 – 1 121 870 14050Building Sustainable Waste ManagementSystems in Ambon

Malaysia ASIE/2003/ 005-019 – 100 000 43010

Framework Contract AMS/451 –Economic Co-operation – Malaysia

Malaysia ASIE/2003/ 005-576 – 3 500 000 43010EU-Malaysia Economic Co-operationSmall Projects Facility

Myanmar REH/2003/ 005-909 – 1 786 000 16330UNHCR Reintegration Assistance Programmeto returnees from Bangladeshand Thailand in Myanmar

Myanmar REH/2003/ 005-910 – Assistance to Returnees 2 000 000 16340and Vulnerable Groups in North Rakhine State

Pakistan ASIE/2003/ 005-020 – 720 000 43010Framework Contract AMS/451 –Dev Co-operation – Pakistany



Dev. Co operation Pakistany

Pakistan ASIE/2003/ 005-718 – 5 000 000 33110Trade-related technical assistance

Philippines ASIE/2003/ 005-024 – 300 000 43010Framework Contract AMS/451 –Economic Co-operation – Philippines

Philippines REH/2003/ 005-889 – 3 000 000 16340Supporting and Rehabilitating IDPs andCommunities in Southern Philippines

Philippines ASIE/2003/ 005-572 – 2 905 600 15030Improving governance to reduce poverty:Corruption prevention.

Philippines ASIE/2003/ 005-022 – 825 000 43010Framework Contract AMS/451 –Dev. Co-operation – Philippines

Philippines ASIE/2003/ 004-980 – 2 731 920 15030Improving governance to reduce poverty:Access to justice for poor.

Sri Lanka ASIE/2003/ 006-017 – Dry Zone Agricultural 986 400 31120

Development Project (extension)Sri Lanka ASIE/2003/ 004-967 – 1 400 000 33110

Trade Development Project

Sri Lanka ASIE/2003/ 005-763-EU – 1 600 000 43010Sri Lanka Small projects Facility

Sri Lanka REH/2003/ 005-921 – 500 000 12220School-based Psychosocial andHealth Project for Children

Sri Lanka REH/2003/ 005-922 – 4 000 000 16340Integrated Recovery and ResettlementProgramme: Transitional Reconstruction Relief

Thailand ASIE/2003/ 005-025 – 800 000 43010Framework Contract AMS/451 –Dev. Co-operation – Thailand


Vietnam ASIE/VNM/2003/0002 – 10 000 000 43030Urban Environmental Planning Programme

Vietnam ASIE/2003/ 005-029 – 500 000 43010Framework Contract AMS/451 –

Economic Co-operation – VietnamVietnam ASIE/2003/ 005-711 – MUTRAP II – 5 100 000 33110

Multilateral Trade Assistance Project

Vietnam ASIE/2003/ 005-885 – VPPSP – 9 050 000 25010Vietnam Private Sector Support Programme

Vietnam ASIE/2003/ 005-814 – 2 000 000 43010EU-Vietnam Economic Co-operationSmall Projects Facility

Asia Unspecified ASIE/2003/ 005-030 – 3 380 000 43010Framework Contract AMS/451 –Dev. Co-operation – Brussels

Asia Unspecified ASIE/2003/ 005-732 – 10 000 000 43030EU-Asia Urbs Programme Phase II

Asia Unspecified ASIE/2003/ 077 306 6 706 91010



Asia Unspecified ASIE/2003/ 077-306 – 6 706 91010Late payment interest charges

Asia Unspecified ASIE/2003/ 005-031 – 400 000 43010Framework Contract AMS/451 –Economic Co-operation – Brussels

Asia Unspecified ASIE/2003/ 005-627 – 10 000 000 11420EU-Asia Information Technology &Communications (IT&C) Programme

Asia Unspecified ASIE/2003/ 005-753 – 7 132 300 11420Asia-Link Programme (20% budget increase)

Asia Unspecified ASIE/2003/ 005-629 – 10 000 000 11420EU-Asia Trans-Eurasia Information Network 2(TEIN 2)

Asia Unspecified ASIE/2003/ 005-968 – 950 000 43010Multiple Framework Contract –Lot 6 – Trade – Asia

Far East Asia Unalloc. ASIE/2003/ 006-006 – 3 500 000 23010EC-ASEAN Energy Facility (reinforcement)

Yemen MED/2003/ 070-968 – 3 263 91010

Late payment interest charges –AT EPOS Contract 1998/52-778

7 | 6 Commitments 2003 – Latin America


Argentina ALA/2003/ 005-760 – 6 600 000 15050Apoyo a proyectos alimentarios comunitariosGiven the alarming social situation in Argentina,the Commission decided at the end of 2003to launch a project to contribute to the fightagainst hunger and aiming to improvethe conditions and functioning of an existingsystem of “community canteens” (infrastructure,training, etc.). The project is a good exampleof improved co-ordination and complementaritieswith bilateral donors.

Argentina ALA/2003/ 077-225-ARG/1986/0905 – 20 373 91010Contract NTP/86/528/958 – Alicia Gallardo Rive

Bolivia ALA/2002/ 002-959 – 38 161 000 21020Road Santa Cruz-Puerto Suarez



Road Santa Cruz Puerto Suarez

Bolivia BOL/B7-3100/97/406 – 1 200 000 14020AGUA Y SANEAM

Brazil ALA/BRD/2000/0005 – 8 000 000 32181Technological Centres Network and supportto SMEs in Brazil

Chile ALA/2003/ 005-755 – 17 200 000 25010Support project for the creation and

development of innovative businessesChile ALA/2003/ 005-904 – 5 000 000 33110

Application fund for the AssociationAgreement between the EU and Chile

Colombia ALA/2003/ 005-757 – 33 000 000 43010Second Peace LaboratoryThe EC continues to assist the peace processin Colombia with the Second Peace Laboratoryby means of basic Human Rights defence,sustainable human development and contributionto peace dialogues. The most comprehensive valueof this project is the broad participation of all actors in the definition of development plans.

Colombia REH/2002/ 002-958 – 2 700 000 16110Basic support and integral developmentof rehabilitation solutions for the reestablishmentof uprooted communities and victimsof the violence in Southwest Colombia

Colombia ALA/2003/ 072-443 – 1 642 894 72030UNHCR activities in Colombia in favour of internally displaced persons

Colombia ALA/2003/ 006-031 – 6 207 106 72030

Uprooted people budget line for Colombian IDPsCosta Rica ALA/CRI/2002/0429 – 11 000 000 43030Urban planning project for the Greater


Nicaragua ALA/2003/ 005-749 – 20 661 000 11110Education sector policy programmeand its decentralisationIn line with EC policy orientations on sector

approach and budgetary aid, this is the firstand largest programme of its kind approvedby the Commission for Latin America until now.The project aims to progressively increasethe capacity of the Nicaraguan governmentto design and manage its education policyand to contribute to poverty reductionthrough human capital investment.

Nicaragua ALA/2003/ 005-748 – 5 000 000 15020Institutional Support to DevelopmentPolicies in Nicaragua

Nicaragua ALA/2003/ 005-750 – 7 500 000 60030HIPC Debt Relief Support in the Fieldof Rural Local Development

Panama ALA/PAN/2002/0487 8 500 000 43020



Panama ALA/PAN/2002/0487 – 8 500 000 43020Incorporation of new electrification and telecommunication technologies

Panama ALA/2003/ 004-353 – 6 650 000 15030Institutional Strengthening andModernisation of the Judiciary

Peru ALA/2003/ 005-758 – 14 000 000 16310Support Programme for socio-economic

developmentUruguay ALA/2003/ 005-752 – 2 450 000 16310

Social development of the poorest ruralareas in the north of Uruguay

Uruguay ALA/2003/ 005-751 – 5 500 000 15020Modernisation of the DGI

America Unspecified ALA/2003/ 004-696 – 995 000 91010Allocation of credits for external audit services

America Unspecified ALA/2003/ 004-568 – 995 000 91010Global allocation of credits for externalaudit services

America Unspecified ALA/2003/ 074-208 – 708 91010Market Letter 2003/57774 – Interest payment

America Unspecified ALA/2003/ 005-974 – 950 000 15040PRODDAL

America Unspecified ALA/2003/ 006-034 – 1 500 000 15010EU-LA Relations Observatory

N&C America ALA/2003/ 005-754 – 15 000 000 15010Unalloc. Support Programme for

Central American Integration

South America . ALA/2003/ 005-767 – 980 000 16110

Unalloc Sociolaboral dimension of Mercosur South America ALA/2003/ 005-759 – 1 000 000 33110Unalloc. EU-Andean Community Co-operation

7 | 7 Commitments 2003 – Human Rights and Democracy


Algeria DDH/2003/ 005-936-B7-701 EIDHR 500 000 15063Microprojects 2003, Algeria

Angola DDH/2003/ 005-696 – 450 000 15063For Human Rights in Angola

Angola DDH/2003/ 075-537 – 382 700 15063Earth Observatory project for conflictprevention

Angola DDH/2003/ 005-937-B7-701 500 000 15063EIDHR Microprojects 2003, Angola

Bosnia Herzegovina DDH/2003/ 063-990 – 833 418 15063

Our Town, Our FutureBosnia Herzegovina DDH/2003/ 075-736 – 250 000 15063

Funding for the Srebrenica and cemetery project

B i H i DDH/2003/ 005 938 B7 701 500 000 15063



Bosnia Herzegovina DDH/2003/ 005-938-B7-701 500 000 15063EIDHR Micro-Projects 2003, Bosnia and Herzegovina

Bosnia Herzegovina DDH/2003/ 075-494 – 900 000 15063Truth and Reconciliation: Support to BloodCollection Teams for ICMP’sFamily Outreach Centres (FOCs)

Burundi DDH/2003/ 063-986-B7-701/2003/403 – 300 000 15063Human Rights Observatory

Burundi DDH/2003/ 063-843-B7-701/2003/343 – 326 642 15050Support to the Burundi Free Trade Union (COSYBU)

Burundi DDH/2003/ 061-802-B7-701/2003/215 – 980 000 15063Development and strengthening of civil society

Burundi DDH/2003/ 005-939-B7-701 EIDHR 250 000 15063Microprojects 2003, Burundi

Cambodia DDH/B7-701/2003/3022 – 1 556 735 15062Election Observation Mission toParliamentary Elections

Cambodia DDH/2003/ 075-495 – 1 141 000 15063Children’s Legal Protection

Cambodia DDH/2003/ 005-940-B7-701 500 000 15063EIDHR Microprojects 2003, Cambodia

China DDH/2003/ 075-490 – 883 677 15063EU-China Human Rights Network

China DDH/2003/ 005-941-B7-701 500 000 15063EIDHR Microprojects 2003, China

China DDH/2003/ 004-694 – 69 550 15063Beijing seminar: Comparative studyof implementation measures

Colombia DDH/2003/ 063-759 – 300 000 15050Project for the promotion and defenceof Human Rights


Fiji DDH/2003/ 064-197 – 461 890 15063Governing water: Programme aiming to raiseawareness about good governanceand promote inter-ethnic dialogue using

water as a community entry issueFiji DDH/2003/ 057-772 – 813 467 15063

Democratisation, Human Rights and ethnicgroup reconciliation in Fiji

FYROM DDH/2003/ 072-944 – 200 000 15062Finalising the independent monitoringof the population census

FYROM DDH/2003/ 005-946-B7-701 500 000 15063EIDHR Microprojects 2003

Georgia DDH/B7-701/2003/3028 – 350 000 15062

Voter Education in GeorgiaGeorgia DDH/2003/ 064-278 – 686 395 15063

Promoting behavioural change amongthe public and police force



p p

Georgia DDH/2003/ 063-817 – 780 000 15065Georgia Regional Media Development &Public Accountability Programme

Georgia DDH/2003/ 005-947-B7-701 500 000 15063EIDHR Microprojects 2003, Georgia

Guatemala DDH/B7-701/2003/3039 – 1 700 426 15062EU Electoral Observation

Guatemala DDH/2003/ 074-630-B7-701/2002/401 511 718 15063

Guatemala DDH/2003/ 057-701 – 800 000 15063Promotion, defence and reinforcementof Human Rights

Guatemala DDH/2003/ 075-556 – 600 000 15063Development of the decentralisatingcapacities of the I.P.D.H.

Guatemala DDH/2003/ 005-948-B7-701 300 000 15063EIDHR Microprojects 2003, Guatemala

Haiti DDH/2003/ 063-773-B7-701/2003/312 891 709 15050Multisectorial Programme in support of civil society

Haiti DDH/2003/ 005-949-B7-701 400 000 15063EIDHR Microprojects 2003, Haiti

Indonesia DDH/2003/ 005-950-B7-701 800 000 15063EIDHR Microprojects 2003, Indonesia

Indonesia DDH/2003/ 005-970 – 5 000 000 15062EUEOM Indonesia 2004The European Union has deployed an EUEOMto observe the general elections in Indonesiaon 5 April 2004 and for the presidential

election schedule on 5 July with possible run-offson 20 September 2004. With an overall budget of €5 million, the EUEOM to Indonesia is the largest


Iraq 1. Efforts to restore and establish nationaland local institutions for representativegovernance and to contribute to basic civilianadministration functions: the ultimate objective

is the recovery by Iraq of its full sovereigntythrough the adoption by the Iraqi population of a new Constitution, by which the population willdesign how it agrees to be ruled, and the electionof a new legitimate Government.2. Media and Communications: support to thedevelopment of a free and independent mediain Iraq in order to assist the creation of anenvironment conducive to free and fair electionsand to promote a pluralistic society and a cultureof respect for Human Rights.3. Return to the Rule of Law and promotion

of Human Rights: support to activities andmechanisms that would assist the developmentof a fair and effective justice system and topromote the protection of Human Rights



promote the protection of Human Rights.4. Support to the emergence of a vibrant anddynamic civil society: the aim is to develop:- advocacy civil society organisations andassociations in order to provide channels andmechanisms for the public to influence nationaland local policies, and- civil society organisations capable of efficiently

participating in reconstruction efforts.Iran DDH/2003/ 005-577 – 222 678 15063

EU-Iran Human Rights Dialogue – Phase II

Iran DDH/2003/ 005-934-B7-701 – 2 500 000 15063Call for Proposals

Israel DDH/2003/ 056-291 – 553 132 15065Responsible and Professional Media Project (RPMP)

Israel DDH/2003/ 005-951-B7-701 500 000 15063EIDHR Microprojects 2003, Israel

Côte d’Ivoire DDH/2003/ 060-688-B7-701/2003/113 – 638 853 15063

Project for promotion and universalisationof Human Rights

Côte d’Ivoire DDH/2003/ 063-968 – 986 046 15065Empowerment of Ivory Coast Media

Côte d’Ivoire DDH/2003/ 062-401 – 557 380 15063Programme to combat preventive detention

Côte d’Ivoire DDH/2003/ 005-952-B7-701 400 000 15063EIDHR Microprojects 2003, Ivory Coast

Kosovo DDH/2003/ 064-034 – 1 228 296 15063Promotion of Human Rights Educationand Inter-ethnic Dialogue

Mexico DDH/2003/ 004-920 – 640 000 15063Human Rights Co-operation Programme in Mexico


Mozambique DDH/B7-701/2003/3045 – 936 647 15063EU Electoral Observation Mission to Local Electionsin Mozambique

Mozambique DDH/2003/ 005-954-B7-701 400 000 15063

EIDHR Microprojects, MozambiqueNepal DDH/2003/ 061-807 – 616 942 15063

Educating Change Agents and the Publicon Human Rights

Nepal DDH/2003/ 075-830 – 450 000 15063Expansion of Outreach of National Human RightsCommission [NHRC]

Nepal DDH/2003/ 075-487 – 400 000 15030Improving Free Legal Aid, Human Rightsand Access to Justicet

Nepal DDH/2003/ 005-955-B7-701 400 000 15063EIDHR Microprojects 2003, Nepal

Nigeria DDH/2003/ 062-521 – 749 732 15063Management and resolution of Sharia-influenced



gconflicts

Nigeria DDH/2003/ 060-026 – 976 048 15063Monitoring and Consolidating Democracy in Nigeria

Nigeria DDH/2002/ 002-976 – 2 972 000 15062Election Observation MissionThe EU Election Observation Mission's (EUEOM)core team of 11 Experts was led by

Mr Max Van den Berg MEP and was deployedin March 2003 to observe the National AssemblyElections which took place on 12 April,the Gubernatorial and Presidential Electionson 19 April, and the State Houses of AssemblyElections on 3 May 2003. 50 Short TermObservers (STOs) and 36 Long Term Observers (LTOs)were deployed for all three elections and stayed inNigeria for the entire month of April. The electionwas marred by serious irregularities. All threestatements were very hard and sparkled vivid

reactions in the local and international press.Furthermore the EUEOM final report is beingused in a court case as evidence.

Nigeria DDH/2003/ 005-956-B7-701 600 000 15063EIDHR Microprojects 2003, Nigeria

Pakistan DDH/2003/ 060-493 – 793 010 15050Strengthening civil society participation

Pakistan DDH/2003/ 061-274 – 748 080 15063NGONet for Women’s and Children’s Rights

Pakistan DDH/2003/ 005-957-B7-701 500 000 15063EIDHR Microprojects 2003, Pakistan

Palestinian DDH/2003/ 061-221 – 461 004 15065Admin. Areas Radio networking for democracy in Palestine


Rwanda DDH/2003/ 005-959-B7-701 500 000 15063EIDHR Microprojects, Rwanda

Serbia and DDH/2003/ 063-966 – 612 106 15063Montenegro Building up democracy and good governance

in multiethnic communitiesSierra Leone DDH/2003/ 057-521 – 1 370 346 15063

Let us learn to respect Human Rights

Sierra Leone DDH/2003/ 063-815 – 309 861 15063Capacity building for Human RightsCivil Society organisations

Sierra Leone DDH/2003/ 005-960-B7-701 250 000 15063EIDHR Microprojects 2003, Sierra Leone

Sierra Leone DDH/2003/ 075-527 – 800 000 15063Victims Justice and Legacy Project (4 sub-activities)

Sudan DDH/2003/ 063-981 – 868 082 15065Promoting freedom of expression and information

Sudan DDH/2003/ 060-753 – 324 260 15063Monitoring and improving Human Rights in rural areas



Monitoring and improving Human Rights in rural areas

Sudan DDH/2003/ 056-512 – 300 385 15063Building the capacity of civil societyand Human Rights monitoring

Sudan DDH/2003/ 075-501 – 700 000 15030The Rehabilitation of the Sudanese JudicialInstitutions

Sudan DDH/2003/ 005-961-B7-701 500 000 15063EIDHR Microprojects 2003, Sudan

Tunisia DDH/2003/ 058-957 – 716 800 15050Strengthening the Trade Union Movement in Tunisia

Tunisia DDH/2003/ 064-006 – 725 647 15063Towards greater independence of the Judiciary

Turkey DDH/2003/ 056-032 – 809 760 15065Establishing a Countrywide Network for Monitoringand Covering Media Freedom

Turkey DDH/2003/ 057-711 – 454 649 15063

Enhancing Access to Justice in Southeastern TurkeyTurkey DDH/2003/ 005-963-B7-701 600 000 15063

EIDHR Microprojects 2003, Turkey

Ukraine DDH/2003/ 064-107 – 305 797 15030Restorative Social Transformation in Ukraine

Ukraine DDH/2003/ 064-121 – 334 785 15063Improving the Human Rights Situation in Ukraine

Ukraine DDH/2003/ 063-972 – 787 947 15063Defending the Rights of Roma in Ukraine

Ukraine DDH/2003/ 005-964-B7-701 600 000 15063

EIDHR Microprojects 2003, UkraineAfrica Unspecified DDH/2003/ 075-526 – 1 359 524 15063

Support to the 2004 & 2005 African Masters


Developing Countries DDH/2003/ 060-586 – 542 147 15063Unspecified Strengthening capacities of Public Institutions

of Bogotá, Villavicencio and Armeniain Children’s Rights protection

Developing Countries DDH/2003/ 005-931-B7-701 – 11 299 15063Unspecified Global Decision on Targeted Projects –

Budget 2003

Developing Countries DDH/2003/ 075-497 – 978 949 15063Unspecified Strengthening Social Dialogue in the Labour Sector

Developing Countries DDH/2003/ 075-839 – 1 350 000 15063Unspecified Training for civi lian aspects ofcrisis management:

Phase III

Developing Countries DDH/2003/ 004-692 – 1 092 800 15063Unspecified Training and Support Programme

for national NGOs

Developing Countries DDH/2003/ 004-695 – 2 756 784 15063Unspecified Projects supporting the International

Court of Justice, resulting from the2002 2003 Call for proposals



2002-2003 Call for proposals

Developing Countries DDH/2003/ 005-932-B7-702 – 2 600 000 15063Unspecified Global Decision on Targeted Projects –

Budget 2003

Developing Countries DDH/2003/ 075-778 – 899 994 15063Unspecified Programme strengthening the International

Criminal Court

Europe DDH/2003/ 061-223 – 338 770 15063Unallocated Older people for themselves and for faster

development of their society

MEDA DDH/2003/ 005-056 – 600 000 15063Promoting the Rights of Women & ChildrenThrough Information

MEDA DDH/2003/ 005-680 – 713 890 15063Mediterranean Masters in Human Rights& Democratisation

NIS Unallocated DDH/2003/ 075-496 – 1 325 000 15063

Joint 2003 Programme of co-operation betweenthe European Community and the Councilof Europe under the EIDHR

North of Sahara DDH/2003/ 005-933-B7-701 – 650 000 15063Unallocated Call for P roposals 2003 EuropeAid/117059/C/G –

Budget 20

S&C Asia DDH/2003/ 075-498-EC-ODIHR – 799 058 15063Unallocated Joint Programme 2003 under EIDHR for advancing

Human Rights

Zimbabwe DDH/2003/ 063-999 – 357 104 15063Application for the Legal Resources Foundation’s (LRF)

Zimbabwe DDH/2003/ 075-534 – 600 168 15062Zimbabwe Local Democracy Enhancement Project

7 | 8 Commitments 2003 – Food Security


Afghanistan FOOD/2003/ 004-950 – 25 000 000 14020Afghanistan – Bilateral programme 2003This programme is channeled directlyto the government to support developmentpolicies, regulatory frameworks and programmes.In 2003, the main activities focused on identification.This programme is expected to have a significantimpact on increasing water availability for smalland vulnerable farmers and efficiency for agricultural and civil use.

Armenia FOOD/2003/ 061-451 – 169 200 91010CONTRACT + AV 1 AEC 3089/AT VON LAUSNITZ –Armenia

Bangladesh FOOD/2003/ 005-980 – 169 200 91010Bangladesh Food Security Programme 2003

B l d sh FOOD/2003/ 005 980 169 200 91010



Bangladesh FOOD/2003/ 005-980 – 169 200 91010Bangladesh Food Security Programme 2003

Bolivia FOOD/2003/ 005-983 – 14 000 000 52010Food Security Programme in Bolivia (PASA II)2003-2004-2005

Bolivia FOOD/2003/ 005-600 – 300 000 52010BOLIVIA-FAO – Short-term technical assistance

in Food SecurityCape Verde FOOD/2003/ 005-987 – 3 900 000 52010

National Food Security Policy Support Programme

Cape Verde FOOD/2003/ 005-987 – 100 000 52010National Food Security Policy Support Programme

Ecuador FOOD/2003/ 005-982 – 5 000 000 43040Poverty Reduction and Local Rural Development(PROLOCAL)

Eritrea FOOD/2003/ 004-023 – 2 000 000 71010Emergency food aid to Eritrea in 2003

Eritrea FOOD/2003/ 004-023 – 2 000 000 71010Emergency food aid to Eritrea in 2003

Ethiopia FOOD/2003/ 004-022 – 8 000 000 71010Emergency food aid to Ethiopia in 2003

Ethiopia FOOD/2003/ 004-022 – 13 000 000 71010Emergency food aid to Ethiopia in 2003

Ethiopia FOOD/2003/ 005-811 – 15 000 000 52010Additional food aid for Ethiopia through NGOs,2003

Honduras FOOD/2003/ 005-598 – 1 000 000 52010

HONDURAS-FAO – Artisanal productionand commercialisation of seeds

Honduras FOOD/2003/ 005 792 1 500 000 52010


Nicaragua FOOD/2003/ 005-981 – 3 000 000 52010Food Security and Local Development Programme

Nicaragua FOOD/2003/ 005-981 – 3 500 000 52010Food Security and Local Development Programme

Niger FOOD/2003/ 005-985 – 9 000 000 52010Programme for prevention and managementof food crises

Palestinian FOOD/2003/ 004-952 – 15 000 000 52010Admin. Areas Food Aid and Cash Assistance Programme

in Favour of Palestine

Somalia FOOD/2003/ 005-596 – 4 000 000 52010SOMALIA-FAO Support to the Food SecurityAnalysis Unit

Sudan FOOD/2003/ 004-978 – 1 700 000 52010

Sudan – Support to the definition of FoodSecurity Programmes

Tajikistan FOOD/2003/ 005-733 – 7 000 000 52010Food Security Programme 2003, Tajikistan

/ /



Tajikistan FOOD/2003/ 005-733 – 1 000 000 52010Food Security Programme 2003, Tajikistan

WFP FOOD/2003/ 004-818 – 52 000 000 52010EC Food Aid Programme 2003 WFPThe Food Aid Programme 2003 carried outthrough the WFP aimed at assisting 14 countriesmainly located in East Africa. The major action was

devoted to the acute food crisis in Zimbabwe,for which €45 million were allocated (1/3 rd of the totality of the programme).

WFP FOOD/2003/ 004-818 – 68 000 000 52010EC Food Aid Programme 2003 WFP

N&C America AUT. PROD. EURONAID LO 20.601 – 640 949 52010Unalloc. EL NIÑO

Developing Countries EURONAID – Several actions 123 838 52010Unspecified

Developing Countries FOOD/2003/ 004-836 – 4 400 000 71010

Unspecified Assistance for victims of armed conflictsDeveloping Countries FOOD/2003/ 004-853 – 20 000 000 52010Unspecified EC F ood Aid Programme, 2003 EA

Developing Countries EURONAID 1999 – POWDERED MILK 1 135 655 52010Unspecified

Developing Countries 3.500 T.PULSES-EURONAID LO 18633 2 178 127 52010Unspecified

Developing Countries FOOD/2003/ 004-836 – 3 600 000 71010Unspecified Assistance for victims of armed conflicts

Developing Countries FOOD/2003/ 004-853 – 30 000 000 52010

Unspecified EC F ood Aid Programme 2003 EADeveloping Countries FOOD/2003/ 004-953 – 25 000 000 52010Unspecified Food Security Global NGO allocation


N&C America FOOD/2003/ 005-984 – 12 000 000 52010 Unalloc. Decision project, Food Security P rogramme

in Central America

South of S ahara FOOD/2003/ 005-986 – 5 000 000 52010

Unalloc. Support Programme for Regional FoodSecurity Programme

7 | 9 Commitments 2003 – Other Thematic Lines

Project Ref. Project title Amount € Country Budget line

SANTE/2003/005-897 Call for proposals 12 000 000 All countries 21 02 07 03

RH 2003

SANTE/2003/005-902 Call for proposals 34 850 000 All countries 21 02 07 022003 PRD



2003 PRD

SANTE/2003/005-903 Annual contribution to 42 000 000 All countries 21 02 07 02the Global Fund to FightAIDS, Malaria and Tuberculosis (GFATM)

ENV/2003/005893 ENV/2003/ 005-893 – 30 816 237 All countries 21 02 05Call for Proposals 2003for B7-6200 (21 02 05)(Environment & Forests

in DCs)ENV/2003/005920 ENV/2003/ 005-920 – 2 000 000 All countries 21 02 05

Environment Mainstreaming2003 (B76200 - 21 02 05)

ENV/2003/074947 ENV/2003/ 074-947 – 760 000 All countries 21 02 05Assisting developing countriesto prepare national profiles,set priorities and strengtheninformation exchange for the sound managementof chemicals

ENV/2003/074945 ENV/2003/ 074-945 – 1 000 000 Eastern Africa 21 02 05Improving Market Access for Drylands Commodities


ENV/2003/074944 ENV/2003/ 074-944 – 1 000 000 Africa 21 02 05Africa StockpilesProgramme – Horizontal activities

EDUCATION/2003/ ICT/Pilot Project 2 348 000 All countries 21 02 1476548 et Elements of InformationEDUCATION/2003/ Technology76612

MAP/2003/5808 Angola Landmine 1 500 000 Angola 19 02 04Impact Survey



MAP/2003/5808 Extension of Landmine 300 000 Eritrea 19 02 04Impact Survey in Eritrea

MAP/2003/5808 Sudan Landmine Information 2 000 000 Sudan 19 02 04and Response Initiative(Phase II)

MAP/2003/5808 Engaging non-state 500 000 All countries 19 02 04armed groups (NSAs) in a landmine ban

MAP/2003/5808 Landmine Impact Survey 2 000 000 Iraq 19 02 04and Mine Action capacitydevelopment –Contribution to UNDPtrust fund

MAP/2003/5808 Support to capacity 1 000 000 Mozambique 19 02 04building for nationalde-mining institutein Mozambique

MAP/2003/5808 Technical survey teams 500 000 Sudan 19 02 04


MAP/2003/5808 Capacity building and 1 350 000 Azerbaijan 19 02 04clearance actionsin Azerbaijan

MAP/2003/5808 Integrated approach 500 000 Myanmar 19 02 04

to mine action in Myanmar

MAP/2003/5808 Assisting post-conflict 1 239 989 Sri Lanka 19 02 04rehabilitation in the Vanni

MAP/2003/5808 Katanga province mine 986 585 DR Congo 19 02 04clearance project

MAP/2003/5808 Bissau free of mines and 600 000 Guinea-Bissau 19 02 04UXOs – Local capacityreinforcement project for mineand UXO clearancein Guinea-Bissau

MAP/2003/5808 Mine clearance 1 700 000 Laos 19 02 04& i ti i t



& victim assistance

MAP/2003/5808 Technical assistance 500 000 Cambodia 19 02 04

GENRE/2003/ 076280 Policy R eport o n 950 000 All c ountries 21 02 06Gender and Development:an UNRISD contribution

GENRE/2003/ 076514 Methodological Support 1 911 816 All countries 21 02 06and Training onGender Mainstreaming

European Commission

Annual report2004on the European Community's development policy and external assistance

2004 – 200 pp. – 21 x29.7 cm

Luxembourg: Office for Official Publicationsof the European Communities

ISBN 92-894-8159-5



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