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Evaluation of European Commission's Support to Egypt

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Evaluation of European Commission's Support to Egypt Evaluation of European Commission’s Support to Egypt – Country level Evaluation Final Report Volume II: Annexes December 2010 Evaluation for the European Commission Framework contract for Multi-country thematic and regional/country-level strategy evaluation studies and synthesis in the area of external co- operation Italy LOT 4: Evaluation of EC geographic co-operation strategies for countries/regions in Asia, Latin America, the Southern Mediterranean and Eastern Europe (the area of the New Aide à la Décision Economique Neighbourhood Policy) Belgium Ref.: EuropeAid/122888/C/SER/Multi Request for Service: 2008/166326 PARTICIP GmbH Germany Evaluation of European Commission’s Deutsches Institut für Entwicklungspolitik Support to Egypt Germany Country level Evaluation Overseas Development Institute, United Kingdom FINAL REPORT European Institute for Asian Studies Belgium Istituto Complutense de Estudios Internacionales Spain A consortium of Particip-ADE–DRN-DIE–ECDPM- December 2010 ODI c/o DRN, leading company: Headquarters Via Ippolito Nievo 62 00153 Rome, Italie Tel: +39-06-581-6074 This evaluation was carried out by ADE Fax: +39-06-581-6390 [email protected] Belgium office Square Eugène Plasky, 92 1030 Bruxelles, Belgique Tel: +32-2-732-4607 Tel: +32-2-736-1663 Fax: +32-2-706-5442 [email protected] The evaluation was managed by the Joint Evaluation Unit (EuropeAid, DG DEV and DG Relex). The author accepts sole responsibility for this report, drawn up on behalf of the European Commission. The report does not necessarily reflect the views of the European Commission. Country Strategy Evaluation – Egypt ADE-DRN LIST OF ANNEXES ANNEXE 1 - TOR ANNEXE 2 - EVALUATION QUESTIONS, JUDGEMENT CRITERIA AND INDICATORS ANNEXE 3 - NATIONAL BACKGROUND ANNEXE 4 - COMMISSION-EGYPT COOPERATION CONTEXT AND IMPLEMENTATION ANNEXE 5 - LIST OF COMMISSION’S INTERVENTIONS ANNEXE 6 - SELECTED INTERVENTIONS IN BRIEF ANNEXE 7 - DATA COLLECTION GRID ANNEXE 8 - DEBRIEFING PRESENTATION OF FINDINGS ANNEXE 9 - ANALYSIS OF ROM REPORTS ANNEXE 10 - SCHEMATIC PRESENTATION OF EVALUATION PROCESS ANNEXE 11 - LIST OF PERSONS MET ANNEXE 12 - BIBLIOGRAPHY Final Report – Volume II – Annexes List of Annexes Country Strategy Evaluation – Egypt ADE-DRN Annexe 1: Terms of Reference Final Report – Volume II – Annexes Annexe 1 EUROPEAN COMMISSION Evaluation of the Commission’s support to Egypt Country Level Evaluation FINAL TERMS OF REFERENCE 12.12.08 o-o-o-o-o-o-o-o-o-o-o-o-o-o-o-o-o-o-o-o-o-o-o-o-o-o-o-o 1. MANDATE AND OBJECTIVES Systematic and timely evaluation of its expenditure programmes is a priority of the European Commission (EC), as a means of accounting for the management of the allocated funds and of promoting a lesson-learning culture throughout the organisation. Of great importance also, particularly in the context of the programmes of the Relex Family of Directorates-General1, is the increased focus on impact against a background of greater concentration of external co- operation and increasing emphasis on result-oriented approaches. The evaluation of the Commission’s co-operation with Egypt is part of the 2008 evaluation programme as approved by External Relations and Development Commissioners. The main objectives of the evaluation are: · to provide the relevant external co-operation services of the EC and the wider public with an overall independent assessment of the Commission’s past and current cooperation relations with Egypt ; · to identify key lessons in order to improve the current and future strategies and programmes of the Commission. 2. BACKGROUND Economic and social situation Regarding the economic situation, Egypt, with a population of about 75.5 million in 2007 (UN statistics), is ranked as a lower-middle income country (GDP per capita current US $ 1,484). (United Nations database) The three main economic sectors of the Egyptian economy are the following (i) industry (ii) agriculture and (iii) services. Tourism is characterised by rapid growth rate which is expected to continue (tourism receipts, international in million US $ in 2000: 4,657 and in 2006: 7,206 - although now there is more uncertain following the global financial crisis). Energy remains a key contributor of the economy. (Oil exports generate 40% of export earnings, while oil and electricity make up 20% of GDP. Gas earnings are increasing, including from exports to the EU.) Egypt's deficit was reduced significantly in the fiscal year 2007 and the government has committed itself to gradually reduce it to 3% of GDP by 2011. At the same time, the general government debt is on a steeply declining path and the annual inflation rate has been declining due to decrease in international commodity prices. Egypt's exports to the EU have risen consistently since the entry into force of the Association Agreement in 2004, reaching € 16.3 billion, placing the EU as Egypt's major trading partner (with 40% total volume). 1 Directorates General of External Relations, (RELEX), Development (DEV) and the EuropeAid Co-operation Office (AIDCO). 2 At Euro-Mediterranean level, Egypt is in the process of negotiating with the EU on liberalisation of services, right of establishment and agriculture. On international trade relations, Egypt has signed a number of free trade agreements, including GAFTA, COMESA and sub-regional agreements, such as the Agadir Agreement and the FTA with Turkey. Regarding the social situation in Egypt, the poverty rate is high. Despite some improvements in social indicators over the past few decades, over the period 1990-2002 an estimated 44% of the Egyptian population was living on less than €1.7 a day (under poverty line). According to the 2007 UNDP Human Development Indicators, Egypt is ranked 112th out of 117 countries. In 2007, Egypt adopted a national five year plan for socio-economic development, including poverty reduction, aimed at ensuring that the effects of the economic growth have a result on people's daily lives. Experience in Egypt confirms that poverty is closely and inversely correlated with education, with almost half of the poor in the country being illiterate (versus less than 30% of the ''non- poor''). Unemployment is a major concern in Egypt and one of the priority objectives of the government. It reached 10.5% in 2006 although declined to 9% in 2007. With approximately 600 000 young workers entering the labour market each year, job creation remains a fundamental priority. Unemployment affects all population groups but in particular women and the young. Social reforms have not followed the same rate of development like the economic ones after 2004. A National Plan was produced by Egypt with the support of the ILO in order to combat the worst forms of child labour. An average working child's revenue makes up 29% of his or her family's income. (73% of working children are employed in agriculture.) A draft sector intervention in basic education is under discussion with significant European support, to implement the recently adopted strategy for education. Issues of organisation, quality, efficiency in delivery, attainment levels as well as persistence of the illiteracy remain key areas. As far as vocational training is concerned, a task force developed an outline action plan for the implementation of a national qualifications framework. The technical and vocational education programme supported by the EC is at the centre of the government's reform on technical and vocational education, operating on the basis of a demand driven approach. Government spending on health has increased but more slowly than in the group of middle income countries. The population dynamics, modest growth rates and low spending on national health services have led to a financially unsustainable health system and health scheme. Further reforms should be carried out in order to lead to significant improvements. Political Situation According to the ENP Action Plan Progress Reports, reforms in the political field could be further enhanced in the areas of the electoral procedure, the human rights, the judiciary system, the migration problem, the fight against terrorism, organised crime, drugs and keeping the peace and stability role in the region. The first ever multi-candidate Presidential elections in 2005 suffered from serious restrictions e.g. the exclusion of certain political movements and groupings from the political arena. Some progress has been made in recent years on protection of human rights by creating the National 3 Council for Human Rights and special departments for human rights (HR) within some ministries, the Parliamentary committee for HR and HR subjects at schools. The legal and administrative framework for civil society cooperation established by the 2002 law on non-governmental organisations and foundations imposes certain legal, administrative and security restrictions on the activities of civil society organisation in terms of licensing, funding and organisational autonomy. In 2007 the National Council for Human Rights made a recommendation to lift restrictions on civil society organisations. The functioning of the judiciary is hampered by the lack of independence and comprehensive legal reforms need to be adopted in order to improve judicial efficiency and certainty. Egypt has in the fight against terrorism and different forms of organised crime, it can further improve its position on these issues and continue playing a positive role for peace and stability in the region. EC Cooperation objectives In accordance with Article 177 of the Treaty establishing the European Community, Community policy in the sphere of development co-operation shall foster: – the sustainable economic and social development of the developing countries, and more particularly the most disadvantaged among them; – the smooth and gradual integration of the developing countries into the world economy; – the campaign against poverty in the developing countries. Paris Declaration/Accra all endorsed and supported by the EU In February 2006 "The European Consensus" (2006/C46/01) - a joint statement by the Council and the representatives of the governments of the Member States meeting within the Council, the European Parliament and the Commission on the EU Development Policy – was adopted.
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