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ANNUAL REPORT ON THE IMPLEMENTATION OF THE EUROPEAN COMMISSION’S EXTERNAL ASSISTANCE which takes two forms of funding. In the first case, a financial contribution is sent to EuronAid, a collective of NGO partners of the European Commission. EuronAid manages all allocations in produce aid (food aid, inputs, seeds, implements) attributed to NGO products. In the second case, an overall financial allocation is attributed to NGO projects that respond to the structural problems of food insecurity on the basis of a call for proposals. 4.3. Intervention Instruments The ruling of 1996 authorises a wide range of instruments to support food security. These may take the form of financial aid, food aid, currency facilities and food security support INSTRUMENTS (€ million) Category Value 39% Products Cereals 56.50 Vegetable oil 3.72 Powdered milk 7.05 Sugar 7.05 Vegetables 7.05 Other products 5.20 Transportation 93.94 Currency facilities 64.70 14% Food security Support actions 132.70 36% Tools 9.77 Technical assistance 17.03 Early warning 5.00 Other Other 48.70 11% Total 458.41 actions. Technical assistance teams composed of experts, agronomists or economists, work in situ to implement the programmes. Food Aid in Kind Food aid is intended to meet emergency, post-crisis and rehabilitation situations, or to prevent crises. It may be distributed free to targeted groups who are particularly vulnerable, or be used to reconstitute national buffer stocks. The WFO and the EuronAid NGO collective are the two principal partners which manage these operations. Generally speaking, priority is given to local and triangular purchases rather than to European food produce in order to reduce the risks of market distortion and to participate in the stimulation of the private sector. In the Products 39% Cereals 66% Vegetable oil 4% Powdered milk 8% Sugar 8% Vegetables 8% Other products 6% Food Security 36% Support actions 81% Tools 6% Technical assistance 10% Early warning systems 3% Horizontal Issues 31
Horizontal Issues A shipment of food aid waiting to be distributed. 32 ANNUAL REPORT ON THE IMPLEMENTATION OF THE EUROPEAN COMMISSION’S EXTERNAL ASSISTANCE poorest countries or those in the course of rehabilitation, seeds are also distributed – in addition to food – to facilitate the re-settling of displaced persons. Budget Support Budget support occurs in two stages. Financial aid, in the form of a currency facility, (25) is paid to the Treasury of the beneficiary government to support the balance of payments, which makes it possible to fund shortfalls on regional or international markets without threatening currency reserves. The food produce thus purchased is then resold on national markets via private operators, thereby stimulating the role of the private sec- © Paul Webber tor at local and regional levels. The funds generated by these sales are paid to the government to support public expenses and reforms previously agreed upon in the co-operation agreement between the government and the Commission. Three major intervention categories can be identified: support for institutional reforms, funding of public expenses considered to be priorities by the European Community and targeted aid for specific projects. Actions to support food security Support actions take six basic forms: National Crisis Prevention Systems Priority is given to restructuring and reconstituting national buffer stocks, the introduction and maintenance of early warning systems, support for the FAO-managed Global Information and Early Warning System (GIEWS), as well as, where appropriate, the restructuring of specialist food security monitoring and crisis prevention bodies (Niger, Burkina Faso) and the fight against crickets (Madagascar). Strengthening Capacities This institutional support can cover a wide range of programmes such as the restructuring of ministerial institutions, applied research, training and local awareness-raising, support in defining sectoral policies (Mozambique), decentralisation policies (Bolivia) and for developing agricultural statistics (Yemen). GEOGRAPHICAL DISTRIBUTION (€ million) ACP COUNTRIES DISTRIBUTION (€ million) Geographical zones Value Products % ACP 236.83 57.80% Asia 61.34 14.97% NEI 41.43 10.11% Europe 11.00 2.68% Latin America 34.31 8.37% Mediterranean & middle East 24.80 6.00% Other 48.70 Total 458.41 ACP Value Products % Eastern Africa 144.43 61.0% Southern Africa 46.46 19.6% Central Africa 16.56 7.0% Western Africa 22.12 9.3% Caribbean 4.65 2.0% Indian Ocean 2.61 1.1% Total 236.83
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