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490 Final ANNUAL REPORT 2001 from the COMMISSION to the CO COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 12.09.2002 COM(2002) 490 final ANNUAL REPORT 2001 FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT ON THE EC DEVELOPMENT POLICY AND THE IMPLEMENTATION OF THE EXTERNAL ASSISTANCE TABLE OF CONTENTS FOREWORD by the Board of EuropeAid Co-operation Office.............................................. 4 Introduction ........................................................................................................................... 6 1. The External Assistance management reform, a year of challenges........................... 8 1.1. The Reform process.................................................................................................. 8 1.2. Improving Programming........................................................................................... 9 1.3. Evaluation .............................................................................................................. 11 1.4. Results-oriented Monitoring ................................................................................... 11 1.5. Deconcentration of Project Management to Delegations......................................... 13 1.6. Coherence, Co-ordination and Complementarity..................................................... 15 2. PROGRESS TOWARDS THE DEVELOPMENT GOALS.................................... 20 2.1. The Millennium Development Goals ...................................................................... 20 2.2. Poverty reduction ................................................................................................... 24 2.3. Measuring Effectiveness Through Results Indicators.............................................. 26 2.4. Sectoral Targeting in the Programming Process...................................................... 28 2.5. Policy Initiatives in EC Priority Areas .................................................................... 30 2.6. Mainstreaming the Cross-cutting Themes............................................................... 37 3. IMPLEMENTATION : HORIZONTAL INSTRUMENTS..................................... 44 3.1. European initiative for democracy and Human Rights ............................................ 44 3.2. Food Security......................................................................................................... 49 3.3. Health, AIDS and Population.................................................................................. 53 3.4. Fighting against drugs ............................................................................................ 55 3.5. Linking relief, rehabilitation and development........................................................ 56 3.6. Environment........................................................................................................... 59 3.7. Co-financing NGOs................................................................................................ 61 4. Implementation: The Regions................................................................................. 65 4.1. Countries covered by the EC External Assistance................................................... 65 4.2. South-Eastern Europe: The Balkans........................................................................ 67 4.3. Eastern Europe and Central Asia ............................................................................ 90 4.4. Southern Mediterranean and Middle East ............................................................. 107 4.5. Africa, Caribbean and Pacific (ACP) .................................................................... 125 2 4.6. ASIA.................................................................................................................... 159 4.7. Latin America....................................................................................................... 183 5. Feature : Results-oriented Approach to Development ........................................... 206 5.1. Country Performance and Project Performance..................................................... 206 5.2. Monitoring Results: Country Performance............................................................ 207 5.3. Project Results: Results-oriented Monitoring........................................................ 215 5.4. Conclusion ........................................................................................................... 221 6. Financial tables..................................................................................................... 223 7. Annexes ............................................................................................................... 230 7.1. Harmonisation of contract and financial procedures.............................................. 230 7.2. External Aid and “RAL”....................................................................................... 231 7.3. Evaluation Activities ............................................................................................ 237 7.4. Audits................................................................................................................... 241 7.5. Innovation ............................................................................................................ 242 7.6. Relations with other International Donors............................................................. 244 7.7. Transparency and visibility................................................................................... 244 7.8. EC Assistance not covered by the Report ............................................................. 245 3 FOREWORD 2001 was a year of fundamental reform for the management of EC external assistance with the aim of improving the speed, quality, impact and visibility of projects and programmes throughout the world. On 1 January 2001, the EuropeAid Co-operation Office was created bringing together in a single organisation responsibility for managing the whole life-cycle of projects from identification to evaluation, while responsibility for programming was consolidated within DG Development and DG Relex. A new Inter-service Quality Support Group was set up to contribute to improvements in programming and the Commission presented 112 new Country Strategy Papers, establishing coherent multi-annual frameworks for defining relations with third countries. Inevitably for a reform of this scale, the full effects will take time. However, there are already some positive results, for example in terms of improved budget execution. The recent meeting of the OECD Development Assistance Committee (DAC) has recognised these efforts: “ The European Community has substantially improved its development policies and strategies since the last review in 1998…” This statement is part of the summing up of the DAC findings. It encourages the Commission to follow up the pace of reform. With respect to development policy, the EC made significant progress in strengthening the poverty focus of its programmes, taking concrete measures to support the achievement of the Millennium Development Goals. This included the adoption of an ambitious action programme for EC development policy. Within this agenda, the Commission also adopted a far-reaching Plan of Action on fighting poverty-related diseases in the developing world. Coherence between development policy and other policies was also strengthened. The European Council in Gothenburg agreed on a strategy to integrate environment and sustainable development into EC development policy. And the launch of a new trade round at Doha emphasised the links between trade and development. The 2001 Annual Report responds to requests from both the Council and the European Parliament that it should be comprehensive, based on solid data and results-oriented. It represents a positive step in this direction that will be further developed in the future. This Report provides information on programmes implemented and assesses achievements on the ground : from promotion of Human Rights in the Balkans to water management in Asia ; from health in Africa to training and education in Latin America; from rapid mobilisation in Afghanistan to institution building in Russia. As a new element this Annual Report contains a feature article. The Commission, as most other donors, is moving increasingly towards a more result oriented development assistance. The Feature describes work in progress, and presents “where we are” with developing effective and reliable ways of measuring the impact of our external assistance. We still face huge challenges. But the objectives are clear – improving the performance of EC assistance and contributing to security and prosperity for all. ChrisPatten Member of the Commission responsible for External Relations Chairman of the Board of the EuropeAid Co-operation Office 4 Poul Nielson Member of the Commission responsible for Development Chief Executive Officer of the Board of the EuropeAid Co-operation Office Günther Verheugen Member of the Commission responsible for Enlargement Member of the Board of the EuropeAid Co-operation Office Pascal Lamy Member of the Commission responsible for Trade Member of the Board of the EuropeAid Co-operation Office Pedro Solbes Mira Member of the Commission responsible for Economy and Finances Member of the Board of the EuropeAid Co-operation office 5 INTRODUCTION This report summarises the first year of EuropeAid Co-operation Office’s implementation of EC external assistance activities1. Its coverage is broad , from
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