I External aid

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Foreword Financial assistance to third countries is one of the central components of the European Union’s external action, alongside trade policy and political dialogue. It is thus an important tool for promoting the fundamental values of the European Union and for meeting the global challenges of the 21 st century. The European Union is one of the major actors in international co-operation and development assistance. In total, the European Community and the Member States provides some 55% of total international Official Development Assistance (ODA) and more than two thirds of grant aid. Over the past fifteen years Community external assistance, originally concentrated on ACP countries, has acquired a global reach and the Community is today financing projects in more than 140 countries. Like other international donors the Community is faced with the challenge of increasing the quality and impact of its financial assistance throughout the world. For the Commission, this challenge is particularly great because the overall volume of its assistance (commitments) has increased rapidly from €3.3 billion in 1990 to €9.3 billion in 2000, which means some 10% of the entire world ODA. This is why, in May 2000 the Commission launched a fundamental reform of its external assistance. This included concentrating the development assistance on a limited number of priority areas with the overriding objective of poverty reduction in developing countries worldwide and better integration of the partner countries into the global economy. At the same time the Commission embarked on an ambitious programme of measures to make significant improvements in the quality and timely delivery of projects while ensuring robust financial management. This reform is an important element of the present wider administrative reform of the Commission. The full implementation of this ambitious programme will take time and 2000 was a year of initiation and transition. Nevertheless, the preliminary results in terms of concentration on priority areas, streamlining and harmonising approaches and procedures were already apparent in 2000. Also 2000 saw the first sign of quicker implementation of programmes funded in the EC budget by comparison with the previous four years. This first Annual Report is in itself a reflection of the reform - very much a work in progress. Future editions will provide a comprehensive picture of the EC’s external assistance programmes and thus will respond to a range of formal reporting requirements and to the need to better inform the European public. We have started the most comprehensive reform ever and are looking forward to future reports that will provide clear information on progress with the fundamental improvements in the management of external assistance that we are determined to achieve. The Board EuropeAid Co-operation Office Christopher Patten, Chairman Paul Nielson, Chief Executive Günther Verheugen, Board Member Pascal Lamy, Board Member Pedro Solbes Mira, Board Member 3
4 CONTENTS Introduction by Giorgio Bonacci, Director General of EuropeAid Co-operation Office I External Aid: A New Policy, a New Management Structure 8 1. A New Strategy for Poverty Alleviation 10 2. Improving External Aid Management 13 II Human Rights, Environment and Other Issues 19 1. European Initiative for 5. AIDS and Population 34 Democracy and Human Rights 20 6. Drugs 36 2. Partnership with NGOs 24 7. Refugees and Rehabilitation 38 3. Women: Equal Opportunities 27 8. Environment and Forests 40 4. From Food Aid to Food Security 28 III South-Eastern Europe: The Balkans 45 1. Albania 48 5. FRY 51 2. Bosnia and Herzegovina (BiH) 48 6. Horizontal policies 52 3. Croatia 49 7. Conclusions and perspectives 53 4. FYROM 50 IV The Partner States of Eastern Europe and Central Asia 55 1. Political and Economic Relations 56 2. The Tacis assistance programme 56 3. Horizontal policies 63 4. Conclusions and perspectives 65 V South Mediterranean, Near and Middle East 67 1. Key figures 68 8. Regional co-operation priorities 76 2. Key objectives 69 9. Regional co-operation activities 76 3. General political and economic context 69 10. Co-operation activities 79 4. Remaining structural problems 70 in the Middle East/Gulf region 5. The MEDA Programme 70 11. Horizontal policies 80 6. Bilateral co-operation priorities 71 12. Conclusion 81 7. Bilateral co-operation activities 72 13. Perspectives 82
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