Rainer J Schierhorst to Yemen Times:”EU assistance to Yemen exceeded 800 million since unification and is still growing” [Archives:2003/661/Community]

European Union-Yemen relations have continued to grow steadily since unification in 1990. Today, the EU is the largest donor to Yemen with hundreds of millions of Euros given to Yemen as developmental assistance. On the other hand, the EU itself is growing rapidly as 10 more countries are expected to join this major world player in 2004.
Yemen on the other hand realized the future prospects of a strong EU, and strong Yemen-EU relations. Hence, enhancing cooperation with the EU has become one of the priorities of the new Yemeni government.
To focus on Yemen-EU relations and cooperation, Yemen Times met with Mr. Rainer J. Schierhorst, Head of the European Commission Technical Advisory Office in Sanaa and filed the following interview.

Q: The EU is represented with an EC technical advisory office, with no complete representation of the EU. Why and when do you think will or should there be a formal EC delegation here?
A: This is indeed a fair question. However, in this context, please let me first clarify the following two points:
The European Union, comprising now of 15 Member States, is a family of European states, committed to working together for peace and prosperity, established following the horrors of World War II. Its Member States have set-up common institutions to which they delegate some of their sovereignty so that decisions on specific matters can be made democratically at European level. As such the EU is present in Yemen with five Embassies (i.e. France, Germany, Italy, the Netherlands and the United Kingdom). However, the EU per se is represented by the bi-annually rotating EU Presidency, which is currently being held by the resident Italian Ambassador. H E Giacomo Sanfelice di Monteforte acts thus as the local EU Presidency for 2003, and chairs very ably the regular EU Head of Mission meetings, where policies and interventions are being dovetailed.
The European Commission is the EU's executive body, and manages the Community budget in the amount of some _ 100 billion per year. Together with the European Development Fund, the European Commission alone commits well-above _ 10 billion per year for external co-operation. With regard to Yemen, the European Commission is represented by my Head of Delegation, H E Robert van der Meulen in Amman, Jordan, to whom I report and who is accredited to the Republic of Yemen on a non-residential basis. My office here, the European Commission Technical Advisory Office is thus a 'dependance' of the EC Delegation in Amman.
For some time now, the Commission and Yemen have been discussing the prospect to open a full-fledged EC Delegation in Sana'a, and some real progress is in the making. As a first step towards this common goal, the management of the EC projects in Yemen will be decentralized, or de-concentrated as the Commission puts it, starting this year. Eventually, this exercise will result in the opening of a full-fledged, diplomatic EC office in Yemen, and hopes are high that this will be achieved early 2004.

Q: Yemenis tempt to wonder about the specific fields and volume of the assistance of the EC to Yemen. Could you brief us on this?
A: At this point, the Commission is funding some 50 projects and programmes at a total cost of _ 160 million in Yemen. More important, however, are the actual disbursement figures which are on a clear upward trend: The disbursement rate has improved from some _ 14 million in 2001, to some _ 18.5 million in 2002, whereas for 2003 disbursements amounting to more than _ 22 million are expected.
Our co-operation programme in Yemen is unique. Probably no other country without full Commission representation in situ benefits from our aid to this extent. EC support is placed in virtually all sectors that are critical for Yemen's long-term development, and range from assistance to the population policy and the electoral process to the reform of the civil service, health sector, water, vocational training and social protection including food security interventions. Support to the fishery sector, civil aviation and the two Social Funds are long-term interventions which remain on the agenda, whereas trade and private sector development has recently been added to the Commission's portfolio in Yemen.
However, our involvement in so many different sectors and regions leaves little doubt that we are 'spread to thin'. With that in mind, it is gratifying that our current National Indicative Programme for Yemen, covering commitments until end 2004, is considerably more focussed than in the past, and for the first time reflects a strategic approach based on common development interests, such as the Poverty Reduction Strategy, and past experience. The stress on WTO accession, our support to the Aden Free Zone and complementary actions is perhaps the best example of this. It may, however, prove difficult to 'hold the line' in the face of some of our partner's fragile understanding of the need for focussed planning and the overall shortage of aid flows in this least developed and poverty-stricken and politically sensitive country of almost 20 million. But that focus must be maintained. The more so, because of the inevitable difficulties we have with the execution of a myriad of interventions, combined with our heritage from past commitments.
To conclude this point, I must emphasise that in addition to the mentioned grants, the Commission also contributes substantially to various UN agencies. In this context, it must, of course, also be noted that a number of EU Member States have considerable bi-lateral development programmes with Yemen. As you know, this concerns in particular Germany, the Netherlands, Italy, France and the United Kingdom.
The European Union is in fact the major global player in the development sphere with well above 50% of all official development assistance worldwide. Here in Yemen, the financial commitments of the EU Member States and the European Commission together have exceeded _ 800 million since unification; actual disbursements for the year 2002 have reached some 100 million.

Q: Do you have a follow-up and monitoring system to ensure objectives of the projects you are involved in -through your donations- are made?
A: Yes, we do. The Commission regularly (at least once a year) fields monitoring missions to monitor the implementation of EC-supported projects. In June, the last mission was here in Yemen to view the progress made by some important projects, such as the Vocational Training Project, the Food Security Programme, Abyan Delta Spate Irrigation as well as the Family Planning Centres of Marie Stopes in Taiz and Aden. Some of these assessments are very critical and highlight the problems encountered. At the same time, recommendations are made to overcome the identified problems and re-adjust the implementation accordingly. I must say that this tool for improved performance is constructively applied together with the Government and other beneficiaries, who take the appropriate measures.
In addition to this regular monitoring exercise, we field specific project evaluation missions, according to need and provisions set in the respective financing agreements. As such most projects include provisions for a mid-term review, aiming at reviewing progress and problems encountered with a view of adjusting implementation, and end-of-project and/or impact evaluations to gain a more general assessment, thus to be able to build in possible successor activities on the 'lessons learned'. Apart from these more technical and economic evaluations, it must be noted that all EC-supported projects are subject to at least annual financial audits, which are performed by reputable internationally acknowledged independent chartered accountants or auditors.

Q: Yemenis are quite sceptical when hearing news of Yemen's possible joining of the WTO, which the EC is encouraging greatly. Do you feel there is reason to be concerned? Why?
A: No, on the contrary. Although I can understand the concerns of the Yemeni citizens and businessmen, I think it is important that people know the membership of WTO has also great advantages for Yemen.
But this is a key issue linked to the perception of the WTO and the way it works, or not. We are all aware that the process of globalisation is seen by many people as creating opportunities for few and problems for many and that the WTO has been perceived as one of the problems rather than a solution. But the terms of the debate about the WTO are no longer those we heard in the streets of Seattle. The 'shrink or sink' approach, which was never mainstream among civil society, has given way to a more pragmatic attitude. Even WTO's most ardent critics are beginning to recognise that we need to strengthen the rules-based system, not to abandon it in favour of a lawless free-for-all. We need the WTO in a globalising environment, where national governments simply cannot find solutions to a wide range of trans-border issues, thus to govern globalisation not to be governed by it.
We need the WTO, which is all about the rule of law in the trade world, and we need to update its rule-book. Overall the WTO is functioning well and in a democratic way. But it can and must improve its way of doing things, and, in my opinion, there are three challenges that it faces.
First, it must make sure that all WTO members, particularly smaller developing countries, have their voice heard in the organisation – this is also of particular importance for countries wishing to join, such as Yemen. Second, it must make sure the system can cope with a growing membership that will, I hope, soon include Yemen, thus making the WTO truly a World Trade Organisation. Third, it needs to better engage the civil society. The European Commission has made comprehensive proposals on how to achieve these reforms, and most of them are reflected in the Doha Development Agenda.
Let me sign off this important topic with a few words on prospects for the new round of trade negotiations that will further liberalise world commerce and make a substantial contribution to development. The EU proposed an agenda for this that is relevant to the 21st century and that will facilitate economic development of all WTO members. Momentum of the new round is accelerating, though there are still challenges ahead. We have yet to convince some developing countries that the new round will address their interests, and that they stand to gain far more from it than from the continuation of the status quo, and the Doha meeting made good progress in this regard. We must also collaborate with developed countries, and persuade the United States to lend its active support for a round that will have development concerns at its core. Agriculture is in this context a key issue, and the EU has just a month ago adopted a reform of its agricultural policy which shifts from a trade-distorting price subvention system to direct income transfers to farmers in the EU. This obviously is good news for agri-exporting developing countries, which have thus also increased access to the EU market, being already the most open market in this sector. I must also mention that the EU grants since 2001 duty- and quota free access to virtually all products from the 49 Least Developed Countries, including Yemen, under its 'Everything-But-Arms' initiative. I hope other developed countries, such as the USA, follow this approach, as there is a clear positive link between increased trade opportunities and development.
In any case, the accession to the WTO is a lengthy process, which could take some five years, and there is thus no need to worry now about any immediate unexpected effects on the Yemeni economy. There will be adequate transition phases during which the Commission will support Yemen in mastering the necessary adjustments.

Q: More and more donor countries and international organizations are bypassing government establishments and are starting to work directly with the civil society and private sector every year. Is this the case with the EC as well?
A: Yes, the Commission strongly believes it is important that its assistance is based on broad consensus and should involve in-depth consultation with all beneficiaries and stakeholders, though we do not bypass the Government, as you put it. Thus, all EC interventions tend towards a participatory approach and often involve the establishment of beneficiary groups. In our Food Security Programme, for example, we are currently preparing an additional commitment of _ 2 million, to be directly channelled through NGOs. But again, this is done in agreement with the Government, and the Ministry of Planning and International Cooperation lends its active support to facilitate EC-supported NGO-activities in Yemen. With regard to the evolution of NGO-involvement, it is worthwhile to mention that since the start of EC assistance to Yemen, the involvement of NGOs in the administration of EC projects increased considerably, and is now five times as large as in 1995.

Q: Do you think you will face pressure by the government if you tend to communicate and work closely with the civil society (NGOs, charities, media, etc.) more openly and directly in the future?
A: No. The Commission and the Government of Yemen have agreed since a long time that approximately 50% of the EC assistance to Yemen would be focused on social programmes and projects (including food security), and we both recognise the important role NGOs and civil society have to play here. Though I tried to avoid it, I must now quote some figures to illustrate our increasing support to NGOs.
Currently, we support 12 medium-term projects implemented by European/Yemeni NGOs to the tune of _ 16 million. This includes very sensitive interventions such as the support to women and minors in prisons, a recent intervention implemented by an Italian NGO in collaboration with three Yemeni NGOs. Given that these women and children in prisons are kept under appalling conditions, and have no lobby, I think this project is extremely worthwhile, as it will not only seek to improve the situation of these prisoners, but will also work on the awareness and legal front with its Yemeni civil society partners. Naturally, such a project is being watched by some suspiciously, but in general the Government support is encouraging. The same is also true for a project implemented together with the French and Yemeni Ministry of Interior under the Commission's Human Rights budget line.
With regard to forthcoming NGO-support, it must be noted that this support is financed by so-called horizontal (global) and thematic budget lines, and support is granted following an open call for proposals, thus on a very competitive basis. Since I am here, we have managed to secure in average three additional NGO-projects per year, and I have every confidence that this momentum will be maintained. As such, I expect that the Commission will be able to support in future at least four new NGO-activities per year here in Yemen.

Q: Some donors have witnessed failures in certain developmental projects in Yemen due to corruption, mismanagement, poor follow-up, etc.. Have you witnessed such failures or stagnancies during your period? What do you think could be done to prevent them?
A: I am glad to be able to say that none of our projects has so far failed as a result of corruption or mismanagement. As mentioned earlier, all EC projects are subject to regular independent audits, which is in my opinion the strongest tool to prevent mismanagement of donor funds, and I think all donors should apply this tool. We have recently also introduced independent audits on our Food Security Programme. This is a special programme for the EC, as it does not follow the traditional project approach, but is a budget-support tool and therefore the money is channelled directly through the Ministry of Planning and other line ministries for specific, budgeted actions. However, also in this programme, I am pleased that no great mismanagement of funds was discovered. Though, of course, there is room for improving financial management, which is then tackled by specific problem-orientated actions, such as training and setting-up of professional financial control mechanisms in the respective programmes and institutions.
On the other hand, we experienced, of course, also some failures and delays. To be fair, some of these delays were partly caused by bad project design, current regional tensions, but also by European Technical Assistants who did not perform adequately. In the latter cases, we together with Government have replaced non-performing staff, and projects have then progressed rather well. I should also mention that one project official whose alleged corruptive practices became imminent, has been replaced by the responsible Minister without further ado, which shows the Government's commitment to tackle occurring irregularities. In summary, however, I must reiterate that corruption has not been a major problem in our bi-lateral co-operation.
The key to development is, in my opinion, the fostering of 'good governance', which includes full responsibility and accountability of decision-makers and executives for their decisions and actions. This must, in my opinion, go hand in hand with an adequate remuneration of civil servants, who currently often receive only salaries that are close to the poverty line. Yemen has embarked on a comprehensive economic and administrative reform process, which includes the establishment of a more efficient administration and a reduction of state involvement in economic activities. The EC will support Yemen in this respect with a _ 6 million grant to the Civil Service Reform Programme, and I think that it is crucial that these reforms are continued, and even extended. In this context, clear job descriptions for civil servants are being introduced and one could also discuss a possible 'Code of Conduct' for civil servants.

Q: Because the EC is now focused on multilateral relations with countries in trade and other issues through blocs in the region (in particular MEDA, GCC, etc.), many believe that Yemen is given less priority than others. Where do you think Yemen should belong, and what could the EC do to help it merge into one of the regional blocs? What should be done on the part of the EC to enhance EU-Yemen relations?
A: Indeed, one of the EU's and thus the Commission's six development core areas is the fostering of 'Regional Integration and Co-operation'. The Commission tries thus to co-operate with developing countries in regional schemes, such the African-Caribbean-Pacific partnership, commonly known as Lome, or more recently, Cotonou partnership. With regard to the often quoted Euro-Mediterranean Partnership (MEDA) as a possible scheme for enhanced EU-Yemen relations one must note the following: After 20 years of increasingly intensive bilateral trade and development cooperation between the European Union and its 12 Mediterranean Partners, the Conference of EU and Mediterranean Foreign Ministers in Barcelona in 1995 marked the start into a new partnership phase of the relationship including bilateral and multilateral as well as intensive regional cooperation. Though, some four years ago, Yemen expressed its aspiration to be more closely associated with the EuroMed partnership, it seems that Yemen has realised that this is a political 'cul-de-sac', not only because of geographical reasons, and is focussing effort on deepening its relationship with the GCC, where it is now participating in a number of activities. In my view, we should actively encourage Yemen in its GCC aspirations and to facilitate the process vis-a-vis the GCC itself. Full accession is not an option in the foreseeable future given Yemen's economic status, but both the Commission and the GCC have a strong interest in the country's political stability, and the GCC can certainly help here.
That said, please note that I cannot speak for the EU and its position vis-a-vis Yemen on the political front. This is a matter, which has to be discussed in depth with the EU Member States. What I can say, however, is that the EU and Commission are committed to deepen the EU-Yemen dialogue also on political issues.
One occasion where we will also discuss political issues with Yemen will be the Joint Co-operation Committee Meeting, which will take place in Sanaa during the first week of October. This will be a high-level meeting between the Government of Yemen and the European Commission, including the EU Member States. Given our common interest to deepen EU-Yemen relations, I am looking forward to a successful meeting in October, and trust that you will adequately cover this important event.

Q: A question about the press if you don't mind. Similar to other donor countries and organizations, do you believe in the importance of supporting the free press? Should it be supported directly by the EC?
A: Of course, the Commission is a strong supporter of the freedom of the press, and in its dialogue with the government, the EC promotes an independent media. However, we should not forget that the development of a truly free press is a long process, which took many European countries also a long-time to accomplish.
As a regular reader of the Yemen Times, and other Yemeni publications, I believe the Yemeni press enjoys a relatively high level of independence – as compared to other countries in the region. I appreciate the constructive criticism provided by the press here and I can assure you that the Commission remains committed to assisting in the further development of this process. This is why we invite and sponsor Yemeni journalists to participate in a wide range of conferences and seminars. Last year, for example, we sponsored the participation of 10 Yemeni media representatives in the Euro Conference, which took place in Athens. This year we facilitated the participation of two Yemeni journalists in an international trade seminar in Brussels, and we will in future foster the participation of journalists in the EU visitors programme which has been recently extended to Yemen. I also would like to encourage possible links with European journalist associations, because I think professional contacts with international journalists could lead to an Arab-European network, which would prove useful for both sides. In this context, I must add that these activities are financed by special budget lines of the Commission and thus are not included in the above-mentioned figures for our bilateral development activities.

Q: Any further comments you may have?
A: Yemen, the EU, and the Commission, for that matter, have in the past enjoyed broad agreement on the themes I have mentioned, and we have every confidence that the foundation for carrying out the agreed policies in our cooperation here is firmly in place. That being said, I am looking forward to continued and enhanced cooperation between the European Commission and Yemen, and to helping this country meet the considerable development challenges that lie ahead.
Yemen is indeed a challenging and often difficult environment, but it has been my privilege to work with some remarkably committed Yemeni colleagues here in the country to overcome arising problems. To conclude, I must emphasize that my family and I thoroughly enjoy to live and work in Yemen. We value very much the rich Yemeni cultural heritage, the country's natural beauty and, last but not the least, the tremendous hospitality of the Yemeni people. Throughout my two and a half years, I have been posted in Yemen, we made many friends and I realized that Yemenis in general are not only very hardworking and traditional people, but also exceptionally broadminded.
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