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Financial and technical assistance and economic cooperation (1992 - 2006)

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Financial and technical assistance and economic cooperation (1992 - 2006)

This Regulation lays down the main guidelines and procedures for financial and technical assistance and economic cooperation between the European Community and the developing countries in Asia and Latin America with a view to promoting their development and reducing poverty


Council Regulation (EEC) No 443/92 of 25 February 1992 on financial and technical assistance to, and economic cooperation with, the developing countries in Asia and Latin America.


1. This Regulation concerns the extension of Community cooperation with the developing countries in Asia and Latin America (ALA). This cooperation includes financial and technical assistance and economic cooperation. It gives priority to the promotion of human rights and democratisation and to good governance, protection of the environment, trade liberalisation and strengthening the cultural dimension.

2. The Regulation cites respect for, and the exercise of, human rights and fundamental freedoms as preconditions for development. The countries that are committed to these principles receive greater Community support. In addition, the Community can amend and even suspend its cooperation with the country concerned in the case of fundamental and persistent violations of human rights and democratic principles. In this case, cooperation would be confined to activities of direct benefit to those sections of the population in need.

3. All ALA developing countries are eligible for financial and technical assistance and economic cooperation. Depending on the project, the recipients of aid and partners in cooperation may include not only states and regions but also decentralised authorities, regional organisations, public agencies, private institutes and operators, including cooperatives and non-governmental organisations, etc.

Financial and technical assistance

4. Financial and technical cooperation is targeted at the poorest sections of the population and the poorest countries in the two regions. It includes, in particular:

  • rural development and improving the level of food security in order to reduce poverty;
  • improving the economic, legal and social environment for the private sector;
  • protection of the environment and natural resources, especially tropical forests;
  • special attention for the cultural and human dimensions of development (education, health, social services, democracy, promotion of human rights, participation of women, child protection and respect for the specific cultures of ethnic minorities);
  • special attention for the structural dimension of development (support for national, regional and local institutions, strengthening administrative capacities and good governance);
  • regional cooperation;
  • reconstruction and prevention of natural disasters.

Economic cooperation

5. Economic cooperation, devised to serve the mutual interests of the Community and the countries receiving assistance, is aimed in particular at countries whose economic development is relatively advanced. It includes:

  • improvement of scientific and technological potential in the recipient countries through training schemes and the transfer of know-how;
  • institutional support, at both national and regional levels, with a view to making the economic, legislative, administrative and social environment more conducive to development and investment;
  • support for undertakings or economic partners through training and measures to promote technologies and trade.

Implementing procedures

6. Expenditure on financial and technical assistance and economic cooperation is provided in the form of grants financed from the general budget of the Community. Indicative five-year programming may be established for each objective, country or region. The Regulation provides for the possibility of cofinancing with the Member States or other donors.

7. For the initial five-year period (1991-1995), Community funding totalled EUR 2 750 million. For the subsequent period, the amount of aid is determined according to the procedures in force under the Community financial framework. Thus, in 2001, the appropriations set aside for ALA developing countries totalled EUR 588 million.

8. Financial and technical assistance covers all of the costs necessary to carry out the projects and programmes financed by the Community. Maintenance and operating expenses are covered only at the launching stage, except for training and research programmes. Community funds are also provided for study costs and the use of experts as well as monitoring and evaluating costs.

9. Participation in invitations to tender and purchasing and other contracts financed by the Community is open on equal terms to all natural or legal persons of the Member States. This participation is extended to the recipient state and may also be extended to other developing countries.

10. The Commission is responsible for administering the financial and technical assistance and economic cooperation. It is assisted by a committee composed of the representatives of the Member States and chaired by a representative of the Commission. The Commission representative submits to the committee a draft of the measures to be taken. The committee delivers its opinion on the draft. The Commission adopts the measures envisaged if they are in accordance with this opinion. If not, the Council acts on the proposal submitted by the Commission.

11. The Commission must submit to the European Parliament and the Council a detailed annual report on the projects and programmes financed under this Regulation. It must also submit, at the end of each five-year period, a comprehensive report assessing the Community's aid to the developing countries in Asia and Latin America.



Entry into force

Deadline for transposition in the Member States

Official Journal

Regulation (EEC) No 443/92



OJ L 52 of 27.2.1992


Regulation (EC) No 1905/2006 of the European Parliament and of the Council of 18 December 2006 establishing a financing instrument for development cooperation [Official Journal L 378 of 27.12.2006].

This Regulation repeals Regulation (EEC) No 443/92 and forms the basis for aid during the period 2007-13.

Last updated: 13.02.2007