[ALBSA-Info] EU aid on Macedonia, Albania criticized

[Agron Alibali]

Financial Times (London) 
December 10, 2001, Monday London Edition 1 
EUROPE; Pg. 6 

Reports blast failure of EU aid programme for Macedonia 

By JUDY DEMPSEY 

BRUSSELS 

BODY: 
The European Commission's aid programmes to Macedonia and Albania lack clear strategies, are bogged down in bureaucratic delays and infighting, and compete instead of co-operate with other international financial institutions, independent reports warn. 

The two reports were drawn up by independent French and Italian consultants* and carried out on behalf of EuropeAid, which was set up by Chris Patten, commissioner for external affairs, this year to speed disbursement of aid and develop a long-term strategy. So far, said the reports, it has had little impact. The reports show that since 1991 the Euros 1.5bn (Pounds 940m) worth of Commission aid allocated to Macedonia and Albania has failed to build up civil society institutions or tackle corruption. Goals have been too ambitious and too fragmented. 

In the case of Macedonia, which received nearly Euros 500m over the past decade and which only a few months ago pulled back from civil war, the Commission failed to tackle two crucial areas required for stability. 

It ignored the need to establish institutions that would bring different ethnic groups together. "This could have made a large contribution to enhancing social cohesion and reducing ethnic tension," said the report. 

It also failed to tackle the corruption rampant in the administration, or address poor pay and the politicisation of the public administration. "The EC's approach was overly formalist, concentrating on the legal framework at the expense of implementation," argued the reports, "There was no clear agenda for reform." 

The Commission's performance in Albania comes in for much criticism too. One of the poorest countries in Europe, with an annual per capita GDP of Dollars 1,100, Albania received Euros 1bn of aid between 1991-2000. 

Yet there was little attempt to work jointly with donors on sector-wide programmes. "Competition between the EC and the World Bank is a significant problem," said the reports. "In part, this reflects different strategic priorities, with the World Bank focusing on poverty while the EC prioritises EU integration." 

These two aims "are not necessarily incompatible", said the reports. But they have led to conflict, "reflecting the desire to gain influence on key areas such as agriculture, justice and budgeting". 

The Commission delegation on the ground "directly contributed to financial and contractual irregularities combined with lack of transparency". 

In the case of the road sector, six out of seven contracts were awarded to contractors whose bids were not the lowest. "In a number of cases, the subsequent performance of the contractors was seriously deficient," adds the report. Only 58 per cent of the amounts allocated between 1991 and 2000 had been contracted and only 34 per cent disbursed. 

Mr Patten has often acknowledged shortcomings in aid distribution, and has begun implementing an overhaul of the system. 

* Investment Development Consultancy, France. Development Strategies, Italy. 


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