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afrol News, 9 August - A programme of cooperation with Benin for the period 2002-2007 was today adopted by the European Commission. The so-called "country strategy paper" serves as a framework for EU relations with Benin, covering all aspects of aid to this country. According to an EU statement, the main objective of the paper was to "support the government's efforts to reduce poverty through sustainable economic and social development and to facilitate Benin's integration into the world economy." The programme had an indicative budget of euro 275 million for the period 2002-2007. The EU Commissioner responsible for development cooperation and humanitarian aid, Mr Poul Nielson, said he welcomed "this step forward, which places poverty reduction at the heart of the EU's cooperation with Benin." Under envelope A, which could now be programmed, Benin will receive assistance of a euro 208 million, focusing on the priority sectors of road transport and health, and on macroeconomic and institutional support. Funds for the road transport sector (euro 102 million) would further the overall objective of reducing poverty by promoting economic growth and improving communications with the most disadvantaged regions by connecting them to the priority road network. The improvement in living conditions in urban areas, thanks to sewage and road works would help combat poverty. Urban projects also provided many jobs for the local workforce. Funds were to be used to improve sections of the principal road network, for rural tracks and for the routine maintenance of priority roads. Improving the operation of basic health structures and the quality of and access to healthcare, especially for the poor and in less advantaged areas, plus creation of a stronger partnership between the public and private sectors and the continuation of sewage works were important factors in reducing poverty. Proposed aid for this sector is euro 26 million. To complement the poverty reduction strategy, macroeconomic support to the tune of euro 55 million were to be provided to support the economic policy of stability and sustainable growth, reform and the public expenditure sectoral guidelines targeting social objectives. A three-year programme was proposed. Institution building, improved governance and the environment, which would "determine the success of this strategy," were to be allocated euro 25 million. The planned actions included improving management capacity in the administration, in the democratic institutions, and in non-government bodies; effective efforts to stamp out corruption; the creation of an environment favourable to exports and the development of the private sector; support for the local authorities; and ways to deal with certain specific cultural social problems and environmental problems. The so-called "Envelope B" - allocated euro 67 million - would be mobilised to provide any additional support which may prove necessary following external shocks, such as short-term fluctuations in the export earnings as a result of falling prices for agricultural commodities on the world market. Sources: Based on EU sources
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