The ACP-EEC Development Finance Cooperation Committee represents another entity that had already existed prior to Lome IV. While its original name, i.e. *ACP-EEC Committee,* was maintained, the more elaborate and meaningful term *ACP-EEC Development Finance Cooperation Committee* was introduced in Lome IV. The Committee was set up within the Council of Ministers, consisting, on a basis of parity, of representatives of the ACP States and of the Community (European Communities 1989: Articles 325 and 326). In general, its main tasks were to examine whether the objectives of development finance cooperation were being achieved and to look into any problems that resulted from this cooperation (1989: Article 325). On the basis of annual

51 See Section <IP_ADDRESS> for information on the key words *agricultural* and *rural*  Judith Kast-Aigner - 978-3-631-75372-9 Downloaded from PubFactory at 01/11/2019 05:47:32AM via free access

reports on the management of development finance cooperation, which the contracting parties were required to produce, and an annual report on the monitoring and evaluation operations, jointly prepared by the Commission and the ACP Secretariat, the ACP-EEC Committee had to compile an annual progress report for the Council of Ministers. In addition, it had to inform the Council of the major problems experienced in the implementation of the ACP-EEC development finance cooperation and to recommend measures aimed at the attainment of its objectives (1989: Article 327).

The Commodities Committee was another joint body established in Lome III and renamed in Lome IV. While it was set up under the name of *Agricultural Commodities Committee* in Lome III, its name was shortened to *Commodities Committee* five years later. Composed of representatives of the ACP States and of the Community, it was responsible for monitoring the implementation of the Convention in the field of commodities and assist in the search for solutions to the structural problems of the commodities sector (European Communities 1989: Articles 75 and 76).

Finally, the expression *ACP Group of States* was a way of referring to the ACP States in their entirety, with the corresponding entity on the part of the Europeans being the European Economic Community. The text of the Convention referred to the ACP Group of States only six times, whereas the word *Community,* which was generally used to refer to the EEC, was mentioned 649 times. However, references to the members of these groups show a completely different picture. The members of the ACP Group of States, referred to as the *ACP States,* and the members of the Community, referred to as the *Member States,* were mentioned 860 and 157 times, respectively. These figures suggest that the ACP States were still not quite perceived as a group, but were rather seen as individual countries. In comparison to the weight of the EEC, the status of the ACP Group of States was relatively modest.

## *Domain* 3 - *Types of cooperation*

Table 24.2 shows the word clusters that refer to types of cooperation and that had not been used prior to Lome IV.

Table 24.2: Domain 3 - Types of cooperation\*

Probably the most significant change in the terminology of the Community's development cooperation policy that occurred in Lome IV was the fact that the term *financial and technical cooperation* was replaced with *development finance cooperation.* While the former did not disappear completely, it was mentioned in the text only three times, without following a particular pattern. The umbrella term for the provision of financial resources and technical assistance under Lome IV was *development finance cooperation.* Similar to financial and technical cooperation in Lome III, development finance cooperation was described in terms of a set of objectives and principles, the scope of financing and the areas in which projects and programmes were to be carried out. Even though the list of objectives had already been quite extensive in Lome III, several new items were added in Lome IV, e.g. striving for additional funds from other financing agencies and promoting both domestic and foreign direct private investment (European Communities 1989: Article 220). Unsurprisingly, the intention to contribute "to the attenuation of the debt burden, which is a major constraint on the development prospects of ACP States" and to mobilise resources for adjustment programmes was added to the objectives of development finance cooperation (1989: Article 220), a minor yet important detail that was needed to justify the large amount of money earmarked for debt and structural adjustment support under Lome IV.

This fits in with a change - the only change - that was introduced to the principles of development finance cooperation. In Lome III financial and technical cooperation was to "be given on the most liberal terms possible for the Community" (1984: Article 186), whereas Lome IV called for development finance cooperation "to be provided on very highly concessional terms" (1989: Article 221). In the light of the Community's focus on the reduction of the ACP States' debt burden, this minor rewording could be considered indicative of the Community's move to a more stringent approach to the granting of loans to the ACP States.

Despite the name change, Title III of the Convention, dealing with development finance cooperation, included a chapter on both technical cooperation and financial cooperation. Furthermore, it covered regulations regarding the implementation of development finance cooperation, which governed the process of aid programming, the identification, preparation and appraisal of projects as well as the tender procedures (1989: Title III, Chapter 5). Unlike Lome III, development finance cooperation also incorporated detailed provisions on investment, including rules regarding the promotion, protection and financing of investment (1989: Title III, Chapter 3). Judith Kast-Aigner - 978-3-631-75372-9

*Technical cooperation* was still a frequently used term, appearing in the corpus 26 times and mainly referring to assistance in the development of the ACP States' national and regional manpower resources (1989: Article 275). As in the earlier agreements, the term *financial cooperation* was only used in the title of the chapter specifying the terms and conditions of financing as well as the rules on co-financing, micro-projects and emergency assistance (1989: Title III, Chapter 2). The common way of referring to the provision of funds to the ACP States was by using the term *financial assistance.*

Lome IV envisaged greater cooperation by encouraging initiatives from "all parties from the ACP States and the Community which are in a position to contribute to the autonomous development of the ACP States" (European Communities 1989: Article 20). This form of cooperation was referred to as *decentralized cooperation* and was aimed at involving decentralised public authorities, rural and village groupings, trade unions and non-governmental organisations, to name but a few (1989: Article 20). Provided the activities of these actors complied with the guidelines and priorities of ACP-EEC development cooperation, they could apply for financial resources from the EDF (1989: Articles 21 and 22).

## *Domain 4* - *Types of development*

Quite a few new types of development were mentioned in Lome IV. They are listed in table 24.3.

Table 24.3: Domain 4 - Types of development\*

• new clusters only

Lome III had covered the development of trade and services under the same title (Title VI}, whereas Lome IV dealt with these topics individually. As a result, the areas of ACP-EEC cooperation included a separate title on the development of services (Title IX) and another one on trade development Judith Kast-Aigner - 978-3-631-75372-9 (Title X). Cooperation in the area of trade development did not include any major changes or innovations, for the text of Title VI in Lome III (covering trade and services) was repeated almost verbatim. There was one change, though, with regard to the financing of trade development. In addition to the funds that the ACP States were prepared to allocate to trade development within their respective national indicative programmes, the Community stipulated that part of the resources earmarked for regional projects were to be used for "regional programmes pertaining to trade development" (1989: Article 138).

In contrast to trade development, the development of services brought up several new points. The main aim of cooperation in the area of services was to improve the ACP States' domestic capacity to provide services in order to improve the overall functioning of their economies, to ease balance of payments pressures and to foster regional integration (European Communities 1989: Article 114). Three areas were singled out for particular attention, i.e. services that support economic development, tourism and transport, and communications and information technology (1989: Article 115).

Services that support economic development again covered three fields: firstly, services that support external trade such as the automation of customs procedures, port and airport management and the development of trade financing and clearing (1989: Article 118); secondly, services required by the business sector, including the development of business advisory services such as legal advice and tax consultancy and improving the ACP States' capacity in financial services (1989: Article 119); and thirdly, services that support regional integration, e.g. the establishment of regional services centres to assist in the implementation of joint sectoral policies (1989: Article 120).

The provisions on the development of tourism in Lome IV were far more extensive and detailed than in the earlier agreements, covering measures "at all levels, from the identification of the tourist product to the marketing and promotion stage" (1989: Article 121). Cooperation activities were aimed at human resources and institutional development (e.g. education and training of people active in the tourism sector and the establishment of tourism promotion centres), product development (e.g. the creation of non-traditional tourism products emphasising the preservation of cultural heritage, ecological and environmental aspects), market development (e.g. access to central reservation systems) and research and information (1989: Article 122).

Enterprise development was a new area of cooperation, as the contracting parties recognised the importance of enterprises and entrepreneurship not only in order to strengthen the ACP States' economies, create jobs and increase income levels, but also to encourage foreign investment. Therefore, a larger portion of the financial resources was supposed to be channelled to the promotion of entrepreneurship and investment (European Communities 1989: Article 110). Specific measures included improvements of the legal and fiscal framework for businesses, business start-up services, provision of advisory services in legal, technical and managerial matters and specific training programmes for individual entrepreneurs (1989: Article 111). The mobilisation of domestic savings and the development of the financial sector were also considered essential in order to boost the private sector (1989: Article 112).

Development of fisheries had already been one of the areas of ACP-EEC cooperation in Lorne III, but its low frequency of occurrence prevented the term from appearing in the WordSrnith analysis. A comparison of the respective provisions of Lorne IV and Lorne III shows that this area did not undergo any changes. The only modification related to the objectives of cooperation, where two aspects were added, viz. to improve the knowledge of fishery resources and to "increase the means of protecting fishery resources and monitoring their rational exploitation" (European Communities 1989: Article 59).

In addition to the expressions *economic development* (19 occurrences) and *economic and social development* (7 occurrences), both of which had also been mentioned in the former Lorne Conventions, Lorne IV made frequent references to *economic, cultural and social development.* In contrast to the first four items in table 24.3, economic, cultural and social development did not represent an official area of cooperation. Instead, it can be considered both a process facilitated by, and an objective of, development cooperation. An example of the former can be found in a text passage about regional cooperation, mentioning

"cultural and social cooperation activities ( ... ) enhancing the status of women, improving their living conditions, expanding their economic and social role and promoting their full participation in the economic, cultural and social development process" (European Communities 1989: Article 159).

The latter can be found in Article 1 of the Convention, which set forth the objectives of ACP-EEC cooperation, one of which was "to promote and expedite the economic, cultural and social development of the ACP States" (1989: Article 1).

Likewise, market development can be seen as a process that may be instigated by development cooperation. In Lome IV, it was mainly mentioned in connection with trade development and tourism, which included references to *market development programmes, market development plans* and *market development measures* (European Communities 1989: Articles 122 and 136).

## *Domain 5* - *Cultural and social cooperation*

The area of cultural and social cooperation was described quite extensively in Lome IV, resulting in a separate terminological domain.

Table 24.4: Domain 5 - Cultural and social cooperation

Only the first entry in table 24.4, the term *cultural identities,* had emerged in the word cluster analysis before, as the others either did not appear in the former Conventions at all or not frequently enough to be discovered by WordSmith.

Cultural and social cooperation focused on the ACP peoples and covered three main areas, viz. the promotion of cultural identities and intercultural dialogue; consideration for the cultural and social dimension in projects and programmes; and operations to enhance the value of human resources (European Communities 1989: Article 140).

The promotion of the ACP peoples' cultural identities was one of the declared objectives of development cooperation in general and of cultural and social cooperation in particular. While the concept of cultural identities is probably as diverse as culture itself and may therefore be hard to define, Lome IV made mention of several aspects that appear to be part of the patchwork.

Cultural identities were considered to represent the ACP peoples' histories and systems of values. The recognition of cultural identities, including the preservation of the cultural heritage, the production and dissemination of cultural products as well as cultural events, was seen as a means to enhance the "reciprocal cultural enrichment of the ACP peoples and those of the Community" (European Communities 1989: Article 145). Moreover, the promotion of the ACP peoples' cultural identities was meant to foster their self-advancement and stimulate their creativity (1989: Article 140).

Intercultural dialogue was supposed to result in deeper knowledge and better understanding of cultures and to stimulate awareness of the interdependencies of different peoples and cultures (European Communities 1989: Article 145). Cultural events, e.g. meetings with young people from different ACP States and with young people from ACP States and Community Member States, were one means of opening up intercultural communication (1989: Article 148).

The topic of cultural heritage was a delicate one. On the one hand, Lorne IV provided for the safeguarding and promoting of cultural heritage through the compilation of cultural databanks, the collection of oral traditions in sound-recording libraries and the conservation of historical monuments (European Communities 1989: Article 146). On the other, the contracting parties seem to have disagreed on the importance of the cultural heritage. In a separate declaration that was attached to the Convention, the ACP States urged the Community and its Member States to "promote the return or restitution of cultural property taken from ACP States and now found in Member States". Furthermore, they requested the Community to create an inventory of cultural property from the ACP States in institutes in the Member States and to enable them to carry out historic research by providing access to archives (European Communities 1989: Annex XXIV).

The expression *participation by the population* is related to the second key pillar of cultural and social cooperation. In addition to the promotion of cultural identities and intercultural dialogue, cultural and social cooperation was expressed through the idea of accounting for the cultural and social dimension in the design, appraisal, execution and evaluation of each project or programme. To this end, participation by the population was to be encouraged (European Communities 1989: Article 142).

The expression *training operations,* though it seems like the odd one out, appeared in connection with the third pillar of cultural and social cooperation, i.e. operations to enhance the value of human resources. It covered areas such as education and training, research, science and technology (European Communities 1989: Article 150). Training operations had to be integrated into the ACP States' indicative programmes and aimed at well-defined objectives (1989: Article 151).

## *Domain* 6 - *Debt and structural adjustment support*

The area of debt and structural adjustment represented the major innovation of Lome IV, which was also reflected in several new key words and word clusters.

Table 24.5: Domain 6 - Debt and structural adjustment support

The relevant section in the Convention consists of two subsections, one dealing with debt and the other addressing structural adjustment. As the ACP States' mounting external debt burden and the resulting debt-servicing obligations were considered major constraints on these countries' development prospects, contributing to the attenuation of the debt burden was added to the objectives of development finance cooperation (European Communities 1989: Article 220). Furthermore, the principles governing the use of development cooperation instruments were extended to include the idea of "supporting the ACP States' structural adjustment efforts and contributing to the attenuation of the debt burden" (1989: Article 23). While these provisions merely provided the framework that was supposed to guide the activities of the contracting parties, the Convention also laid down several concrete measures to achieve the above-mentioned goal. For example, Article 240 provided for adjustments to SYSMIN and ST ABEX to the effect that increases in the debt burden of the ACP States were avoided. Furthermore, the Community agreed to improve the ACP States' access to the resources of past indicative programmes which had not been claimed in order to use them to Judith Kast-Aigner - 978-3-631-75372-9

reduce the debt burden. In addition, the Community committed itself to assisting the ACP States in finding solutions to debt-servicing and balance of payments problems and in improving their debt management system (1989: Article 240). On a more general note, the Community agreed to support the ACP States' efforts to undertake reforms and to adopt measures aimed at increasing domestic savings and boosting investment (1989: Article 241).

In line with the Bretton Woods institutions, the Community followed the trend towards aid conditionality.52 In 1986, the IMF introduced the so-called *Structural Adjustment Facility,* which was followed by a modified scheme in 1987, referred to as the *Enhanced Structural Adjustment Facility* (IMF Website 2006). The Community's structural adjustment scheme was referred to as *structural adjustment support* or simply *adjustment support.* The expressions *support programmes* and *adjustment programmes* were also frequently used. Apparently, the Community tried to give its initiative a positive spin by adding a word with a highly positive connotation, viz. *support.* In the same spirit, the contracting parties "agreed that the Convention should provide structural adjustment support to assist ACP States" in their reform efforts (European Communities 1989: Article 243), a provision that reads like a sales pitch from the Community rather than a statement to be signed by the ACP Group. While in general all ACP States were entitled to claim structural adjustment support, the actual eligibility of the individual states depended on the scope and the effectiveness of their reforms instigated at the macroeconomic or sectoral level and their "likely impact on the economic, social and political dimension of development" (1989: Article 246). The latter was expressed by several economic indicators, e.g. the level of indebtedness, balance of payments problems, the budgetary and monetary situation and the level of unemployment (1989: Article 246).

The granting of special loans, i.e. money from the EDF given to the ACP States on concessional terms, which had been part of the Community's financial assistance under Lome I, II and III, was discontinued in order to prevent the debt burden rising even further. While the ACP States welcomed the Community's decision to remove special loans, they made clear that further and more radical measures would be needed to get their debt under control. In the ACP declaration on debt, attached to the Lome IV Convention, they urged the Community to cancel all debt that had already been incurred via special loans (European Communities 1989: Annex LI).

52 See Section <IP_ADDRESS> for information on the key words *adjustment* and *structural*  Judith Kast-Aigner - 978-3-631-75372-9 Downloaded from PubFactory at 01/11/2019 05:47:32AM via free access

## *Domain 8* - *Development finance cooperation (general aspects)*

Table 24.6 lists all word clusters in the area of development finance cooperation that were new to Lome IV, including both items that had never occurred in the Conventions before and others that had appeared, though fewer than five times.

• new clusters only

In Lome IV, development finance cooperation was dealt with under Title III, which contained a general outline of its objectives and principles, the terms of financing, provisions on debt and structural assistance, microprojects and co-financing, rules on investment and technical assistance as well as detailed information on the implementation procedures. However, it did not include any details on the overall amount of the Community's financial assistance and a breakdown of the amount that was earmarked for individual instruments (e.g. ST ABEX or SYSMIN) or for particular purposes. Instead, these particulars were provided in a separate document, the so-called *Financial Protocol,* which, together with nine more protocols, was annexed to the main text of the Convention. The change in the structure of the texts resulted from the fact that Lome IV was concluded for an unusually long time period, i.e. ten years instead of five years, as had been common practice in Lome I, II and III. Only the Financial Protocol of Lome IV was concluded for five years and was renewed in the course of the mid-term review in 1995.

While the term *emergency assistance* was new to Lome IV, it referred to a long-established and well-known concept, i.e. the provision of funds to ACP States which experienced severe "economic and social difficulties of an exceptional nature", be they a result of a natural disaster or other extraordinary circumstances (European Communities 1989: Article 254). The same concept had been referred to as *exceptional aid* in Lome I and *emergency aid* in Lome II and III respectively53•

Import programmes had already been briefly mentioned in Lome III, but they only gained in importance and visibility in Lome IV, not least in connection with structural adjustment support. Import programmes could be used for "the financing of inputs to the productive system" including capital, intermediate goods and raw materials, thus contributing to the functioning of the ACP States' productive sectors, the expansion of production and export capacity as well as the transfer of technology (European Communities 1989: Article 225). Lome IV distinguished between programmes for the funding of sectoral imports, referred to as *sectoral import programmes* or *SIPs,* and programmes for the financing of general imports, which covered a wider range of products and were referred to as *general import programmes* or *GIPs*  (1989: Article 224). The programmes were considered a means of providing structural adjustment support to countries carrying out macroeconomic reforms. Assistance via GIPs and SIPs was to be given in the form of foreign exchange or in kind through direct procurement (1989: Article 224).

While counterpart funds had been mentioned once in Lome III, they received more attention in Lome IV, partly with reference to structural adjustment. Various Community instruments could result in the generation of counterpart funds, one example described in Lome IV being food aid. If goods supplied by the Community as food aid were sold to the public, the resulting financial resources for the ACP State were referred to as *counterpart funds*  (European Communities 1989: Article 51). These funds were to be used to finance projects and programmes within the indicative programme and measures which were aimed at mitigating the negative social effects of structural adjustment. The latter included, among other things, assistance to indigenous organisations, the modernization of health facilities, the provision of pre-primary and primary education, and the re-training and payment of redundancy benefits to public or semi-public workers who had been made redundant (1989: Article 226). Furthermore, counterpart funds could be used to provide budgetary support (1989: Article 224) and to finance postemergency action, directed at the physical and social rehabilitation in the aftermath of natural disasters or similar extraordinary events (1989: Article 257).

53 See Sections <IP_ADDRESS> and <IP_ADDRESS> (in each case domain 5- aid-related aspects) Judith Kast-Aigner - 978-3-631-75372-9 Downloaded from PubFactory at 01/11/2019 05:47:32AM via free access

## *Domain 9* - *Development finance cooperation (implementation)*

While the word clusters listed in both table 24.6 and table 24.7 are related to the topic of development finance cooperation, the latter focuses on those multi-word units that are specific to the implementation of projects financed under Lome.

Table 24.7: Domain 9 - Development finance cooperation (implementation)\*

• new clusters only

Unsurprisingly, the terms *regional programmes* and *regional projects and programmes* are closely linked to regional cooperation, but they are mainly used in connection with procedural matters. On the one hand, regional programmes can be seen as the equivalent of the national indicative programmes, which every ACP State had to draft, at a regional level. On the other, regional programmes were part of the national indicative programmes, as the latter included the development objectives of the ACP State concerned at a national level, the focal sectors which were to be given top priority, and specific measures aimed at achieving the objectives in these sectors. In addition, a State's national indicative programme had to contain the objectives of the ACP State concerned at a regional level as well as proposals for regional projects and programmes (European Communities 1989: Article 281). In order to understand the concept of regional programmes, it is necessary to look at the description that Lome IV provided for regional cooperation. According to Article 157, regional cooperation included operations between two (or more) ACP States, between ACP States and neighbouring non-ACP States, as well as between ACP States and one (or more) of the Community's overseas territories. It also comprised operations conducted by ACP States together with regional organisations of which ACP States were members as well as by two (or more) regional organisations of which ACP States were members. Judith Kast-Aigner - 978-3-631-75372-9

Furthermore, even operations carried out by ACP States in cooperation with "non-ACP, non-neighbouring developing States" were covered (1989: Article 157). Accordingly, regional projects and programmes can be considered the specific schemes and projects within the scope of this definition. While the regional programmes were part of the national indicative programmes and therefore covered by the overall amount of resources provided by the Community, the Financial Protocol (FP) specified that a particular amount, i.e. about 10 per cent, was reserved for the funding of regional programmes (European Communities 1989: FP Article 3). As a consequence, special provisions were also made for the monitoring of the use of these funds. At the end of each year, the National Authorising Officer and the Community delegate had to prepare reports on the operations financed by the EDF, including information on commitments and disbursements, an implementation timetable, and a progress report with regard to both the national indicative programme in general and the regional programmes in particular (European Communities 1989: Article 315 and 318).

The expressions *preparation of projects, financing decision* and *financing proposals* are self-explanatory, representing some of the major tasks in the implementation of projects and programmes. In a nutshell, the rules on implementation provided for the following procedure. Once the draft indicative programme, drawn up and submitted by each ACP State, was agreed upon and adopted by the Community and the ACP State, it was binding on both parties involved (European Communities 1989: Article 282). The identification and preparation of individual projects within the indicative programme was the responsibility of the ACP State in question. In fact, the ACP States were required to prepare project or programme dossiers and submit them to the Community delegate. Subsequently, the appraisal of projects was jointly carried out by the ACP State and the Community. In cooperation with the National Authorising Officer, the delegate was supposed to summarise the results of the appraisal in a financing proposal, including a timetable for the implementation of the project, which was then finalised by the Commission (1989: Article 285-288).

The expression *general conditions* was used for the provisions governing the performance of works, supply and service contracts financed from EDF resources. The actual provisions were not part of Lome IV, but were scheduled to be adopted by the Council of Ministers in their first meeting after the signing of the Convention (European Communities 1989: Article 306).

The term *direct-agreement contracts* was used in connection with the Community's competition rules on works and supply contracts financed by the EDF. While in general the latter were to be concluded following an open invitation to tender, the Convention provided a less strict procedure for three exceptions (European Communities 1989: Article 227). In agreement with the Commission, the ACP States were entitled to place contracts after restricted invitations to tender (e.g. for highly specialised projects), to perform contracts through their own public or semi-public departments (e.g. in the case of service contracts with an estimated cost of less than ECU 5 million) and to conclude contracts by direct agreement. Awarding contracts by direct agreement had always been possible under the Lorne Conventions, but Lorne IV included more detailed rules for this and the procedure involved. Article 298 specified under which circumstances contracts could be placed by direct agreement, including small-scale operations, emergency assistance, operations assigned to individual experts and holders of patents or licences as well as after an unsuccessful invitation to tender. In these cases, the ACP States, in agreement with the Commission delegate, had to draw up a short-list of potential tenderers, to enter into discussions with the latter, and to select the tenderer who would be awarded the contract (1989: Article 298).

#### *Domain 10* - *Development finance cooperation (investment)*

The area of investment represents a new terminological domain. While the topic *per se* was not entirely new, it had gained momentum only in Lome III. In Lome IV, the word *investment* and the word clusters related to it experienced a considerable increase, as illustrated in table 24.8.

Table 24.8: Frequency of occurrence of terms related to investment

Table 24.9 shows the word clusters referring to the area of investment in the familiar format.

Lome IV emphasised the need to develop and strengthen the role of the private sector. In particular, small and medium-sized enterprises as well as micro-firms and crafts were to be encouraged and supported (European Communities 1989: Article 110) with "the full range of instruments provided for by this Convention" being available to this end (1989: Article 111). Furthermore, improvements in the business environment, including changes in the legal and administrative framework, were considered necessary to boost the private sector (1989: Article 258). The Community also agreed to invest in ACP enterprises in the form of risk capital and loans from the EIB's own resources (1989: Article 263). Furthermore, the ACP States were authorised to use the resources of their national indicative programmes to provide financial assistance to SMEs, to support the establishment of national and regional financial institutions catering to the private sector, and to implement export promotion schemes (1989: Article 264).

A number of provisions concerning investment promotion set out in Lome IV were similar or even identical to the corresponding rules in Lome III. For example, the contracting parties agreed to encourage private investors to participate in the ACP States' development efforts, to establish and maintain a secure and predictable investment climate, and to promote cooperation among economic operators in the ACP States and the Community (European Communities 1989: Article 258). By adding several measures aiming at investment promotion, the importance and necessity of the subject matter were further emphasised in Lome IV. For instance, the signatory states agreed to facilitate the flow of resources from the Community's private sector to the ACP States by improving the latter's access to international financial markets. In addition, they hoped to create an environment that encouraged the development of financial institutions, capital formation and entrepreneurship (1989: Article 258).

Similarly to its predecessor, Lome IV included a section dealing with the strengthening of the role of private investment flows and the development of enterprises. In this regard, the provisions were more specific, including the promotion of European private investment in the ACP States by organising discussions and investment promotion meetings, providing information on investment guarantees and insurance facilities for companies, and assisting SMEs in obtaining and optimising equity and loan-financing (European Communities 1989: Article 259).

Investment protection was given slightly more attention under Lome IV. Both Lome III and Lome IV acknowledged the "need to promote and protect either party's investments on their respective territories", which could be met by concluding investment promotion and protection agreements (European Communities 1989: Article 260), but again, Lome IV was more specific as it set out clear rules to guide the negotiations in this area.

The following list of concordances rounds off the discussion on investment.

The list illustrates the use of the word *investment* and its collocates, in particular *investment flows* and *investment in the ACP States,* both of which are included in domain 10. The examples show that the word investment was embedded in mainly positive and affirmative language, including the verbs *encourage, enhance, facilitate, foster, promote* and *support* as well as the nouns *opportunities, potential, promotion* and *support.*

#### *Domain 12* - *Trade cooperation (general aspects)*

As with the area of development finance cooperation, the word clusters referring to trade cooperation are classified into three domains. While domain 12 deals with general aspects of trade cooperation, domain 13 focuses on questions of the originating status of goods. Domain 14 includes different types of materials mentioned in the Lorne IV Convention.54

Table 24.10: Domain 12-Trade cooperation (general aspects)\*

• new clusters only

Unsurprisingly, the expression *Community market* was mainly used in connection with the ACP States' preferential access to the European market and the preferential treatment that ACP products were to be given on this market. According to Article 25, trade cooperation between the ACP States and the Community was based on the principle of non-reciprocal "free access to the Community market for products originating in the ACP States, with special provisions for agricultural products and a safeguard clause" (European Communities 1989: Article 25). The exemption of agricultural products was significant as it meant that the ACP States were not granted free access to the Community market for all products covered by the Community's Common Agricultural Policy. Instead, the Community was obliged to provide ACP products with more favourable treatment than that granted to third countries

54 Due to its lack of terminological information, domain 14 is not discussed in more detail. Judith Kast-Aigner - 978-3-631-75372-9 Downloaded from PubFactory at 01/11/2019 05:47:32AM via free access

which benefited from most-favoured nation treatment (1989: Article 168). Nevertheless, the ACP States were becoming increasingly concerned about losing out to other countries, especially to non-ACP developing countries, as a result of preference erosion.

While the main focus of ACP-EEC trade cooperation was still on goods, trade in services was emerging as a new field of interest. The multi-word unit *goods and services,* listed in table 24.10, is a case in point, as are the expressions *development of services* (9 occurrences; see domain 4), *trade and services* (8 occurrences) and *trade in services* (4 occurrences).

Strangely enough, the term *external trade* is mainly used in connection with the aforementioned expression *development of services.* A brief study of the concordances of *external trade* explains why this is the case. Cooperation in the field of services was to prioritise services that support external trade, including the establishment of infrastructure for trade, automation of customs procedures and improvements in the area of trade financing, clearing and payment facilities (European Communities 1989: Article 118).

Intra-ACP trade and cooperation were given significantly more attention in Lome IV. While intra-ACP cooperation was to be enhanced in a variety of areas, including fisheries management, tourism and transport, intra-ACP trade was considered a key element of trade cooperation, alongside the development of trade between the ACP States and the Community (European Communities 1989: Article 136). Improvements in this area resulting in a deeper integration of ACP markets were to be achieved by liberalising intra-ACP trade and eliminating both tariff and non-tariff trade barriers (1989: Article 158). Furthermore, regional development banks as well as clearing and payment institutions aiming to promote intra-ACP trade were to be supported (1989: Article 229). Regional payment mechanisms, clearing arrangements and credit insurance facilities were also considered appropriate means of boosting intra-ACP trade, with the extra benefit that they did not add to the ACP States' debt burden (1989: Article 241).

#### *Domain 13* - *Trade cooperation (originating status)*

The application of the rules of origin and the determination of the originating status of goods clearly represent one of the most complicated areas of ACP-EEC cooperation. While the level of detail had already been high in the past Conventions, the complexity of the respective rules was even greater in Lome IV, with ever more details and particularities being taken into account. This is reflected in the word clusters listed in table 24.11.

Table 24.11: Domain 13 -Trade cooperation (originating status)\*

• new clusters only

The provisions of Protocol 1 (Pl), covering the definition of the concept of originating products, were therefore becoming more and more sophisticated. The first item in table 24.11, the term *non-originating materials,* can be considered a result of the increasing complexity of the rules as it seems to have been coined to make the text more comprehensible, making a clear distinction between originating products and non-originating materials. As explained above55, a product was "considered to be originating in the ACP States if it has been either wholly obtained or sufficiently worked or processed in the ACP States" (European Communities 1989: Pl Article 1). Non-originating materials included any supplies and articles that were not obtained in an ACP State. If such non-originating materials were used in the production of goods, they had to undergo sufficient working or processing in order to have the status of originating products conferred upon them. According to Article 3, nonoriginating materials were

"considered to be sufficiently worked or processed when the product obtained is classified in a heading which is different from those in which all the non-originating materials used in its manufacture are classified",

with the word *heading* referring to the four-digit codes used in the Harmonised Commodity Description and Coding System (1989: Pl Article 3). The latter was usually referred to as the *harmonized system* and represented a set of

55 See Section <IP_ADDRESS> (domain 6-trade related aspects) Judith Kast-Aigner - 978-3-631-75372-9 Downloaded from PubFactory at 01/11/2019 05:47:32AM via free access

internationally standardised and accepted system of names and numbers for the classification of products. It was established by the World Customs Organisation and entered into force in 1988 (World Customs Organisation Website n.d.), which explains the fact that the term first appeared in Lome IV in 1989. Prior to that, the nomenclature used by the Community and the ACP States was referred to as the *Customs Cooperation Council Nomenclature for the Classification of Goods in Customs Tariffs* (Lome II and III) and the *Brussels Nomenclature for the Classification of Goods in Customs Tariffs* (Lome I) respectively, both terms referring to the set of rules in force at the times the respective Conventions were signed.

The cluster analysis of Lome IV produces two multi-word units relating to documents that were used for determining the originating status of products, viz. *suppliers' declarations* and *information certificate.* The former represented a completely new term, whereas the latter had already appeared in the earlier Lome Conventions, though with a frequency of less than five. Both terms, however, referred to documents that had always been required under each of the Lome Conventions. Whenever the customs authorities of an ACP State were required to issue a movement certificate for products and materials which came from another ACP State or the Community and which were used in the manufacture of these products, the authorities had to take into consideration the declaration given by the supplier of these materials (European Communities 1989: Article 23). While this declaration was not new to the Fourth Lome Convention, the term used to refer to the declaration, i.e. *supplier's declaration,* was only coined in Lome IV. Prior to that, the Conventions had not assigned a particular name to the document concerned, merely referring to it as the "declaration[ ... ] given by the exporter in the State, country or territory" from which the materials used in the manufacture came (e.g. European Communities 1975: Pl Article 20). Lome IV further specified that the customs authorities of the importing state were allowed to carry out a verification of the supplier's declaration, both at random and in the event of "reasonable doubts as to the authenticity of the document or the accuracy or completeness of the information concerning the true origin of the materials in question" (European Communities 1989: Pl Article 27). In such a case, the customs authorities of the importing state could ask the customs authorities of the state where the supplier's declaration was made to issue a so-called *information certificate,* which was to serve as evidence of the status of the materials concerned (1989: Pl Article 27).

The term *country of origin* is one of the few terms that are assigned unambiguous definitions, referring to a "country, group of countries or territory where the goods are considered to be originating" (European Communities 1989: P9 Article 6). The term, however, is also used in a different context, namely with regard to students from ACP States conducting their studies in one of the Community Member States. In the Joint Declaration on ACP Migrant Workers and ACP Students in the Community, annexed to the Convention, the Community stated that it aimed to encourage the training of ACP students in their own country of origin or in another ACP State. Even if ACP students carried out their studies in one of the Member States, their training would be "geared towards their vocational integration in their country of origin" (1989: Annex V, III).

The term *country of transit* was mentioned in connection with yet another rule concerning the rules of origin and the concept of originating status. In order to be accepted as eligible for preferential treatment under the Lome trade provisions, goods or materials transported between the ACP States and the Community were not allowed to enter any other territory. Article 10 of Protocol 1, however, allowed for one exception. Goods which constituted a single consignment were permitted to be transported through such territory if the goods were kept under surveillance by the customs authorities in the country of transit and did not undergo "operations other than unloading, reloading or any operation designed to preserve them in good condition" (European Communities 1989: Pl Article 10). A bill of lading covering the transport through the country of transit or a certificate issued by the customs authorities of the country of transit were to serve as evidence for the fulfilment of the above-mentioned conditions (1989: Pl Article 10).

#### *Domain 15 -Thematic issues*

The domain labelled *thematic issues* covers topics as diverse as fisheries, transport and environment. Only few of the word clusters in this domain, which are listed in table 24.12, are new, the majority having already been discussed in one of the earlier sections.

Table 24.12: Domain 15-Thematic issues\*

• new clusters only

Cooperation in the field of shipping services that had already been built up in Lome III was continued under Lome IV. However, the Fourth Convention revealed a conflict between the ACP States on the one hand and the Community and its Member States on the other about the extent of support granted to the developing countries. According to the relevant provisions of Lome IV, the contracting parties aimed at ensuring the harmonious development of shipping services "on economically satisfactory terms by facilitating the active participation of all parties according to the principle of unrestricted access to the trade on a commercial basis" (European Communities 1989: Article 126). They also acknowledged the necessity of the UN Convention on a Code of Conduct for Liner Conferences, which was to ensure the terms of competition in the area of shipping services, and agreed, once the Code was ratified, to take all the measures required for its implementation at a national level (1989: Article 127). However, in addition to the main provisions on shipping services, which were dealt with in Articles 126 to 131, Lome IV included two separate declarations in which the contracting parties expressed their respective concerns about these provisions. On the one hand, the ACP States emphasised the importance of shipping services for their economic development, which, from their point of view, was hampered by large and powerful international companies dominating the market. They expressed the opinion that the provisions of the Convention did not indicate that these dominant players were authorised to operate without any constraints. Instead, the ACP States insisted on their right "to greater and fairer participation in all freight generated by their external trade and the need to facilitate the development of their industries" (1989: Annex **XVIII).** On the other hand, the Community pointed out that the provisions on shipping services were to exclude restrictive and anti-competitive practices. In their op1mon, shipping companies should become more competitive, a development which would benefit both parties, the exporters and the importers (1989: Annex XIX). The declarations made by the ACP States and the Community respectively can be regarded as a diplomatic way of dealing with the obvious disagreement between the contracting parties. Judith Kast-Aigner - 978-3-631-75372-9

As mentioned above56, Lome IV devoted an entire title to the topic of the environment or, more precisely, to ACP-EEC cooperation in this field, with the protection of the environment along with the rational management and exploitation of natural resources representing its key elements. Cooperation with regard to radioactive waste received particular attention, the more so as the international movement of hazardous and radioactive waste had become a serious problem. According to Article 39, the Community committed itself to prohibiting the direct and indirect export of such waste to the ACP States. At the same time, the ACP States agreed to prohibit the direct or indirect import of such waste from the Community as well as from other countries (European Communities 1989: Article 39). In addition, two joint declarations regarding movements of hazardous or radioactive waste were issued and attached to the Convention. The contracting parties emphasised the importance of this issue and pledged to "refrain from any practice of discharging such waste which would encroach upon the sovereignty of States or threaten the environment or public health in other countries" and to support the efforts of the International Atomic Energy Agency (IAEA) to develop an internationally accepted code of good practice (1989: Annex VIII). External documents were referred to for the precise definition of hazardous and radioactive waste: the term *hazardous waste*  referred to categories of products listed in the Basle Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal, whereas the applicable definition of the term *radioactive waste* was yet to be determined by the IAEA. The contracting parties agreed to temporarily make do with the definition and thresholds applied by the Community laid down in a Euratom directive. Accordingly, the term *radioactive waste* was used to refer to

any material for which no further use is envisaged and which contains or is contaminated by radionuclides of which the levels of radioactivity or the concentrations exeed [sic!) the limits which the Community has set itself for protecting its own population" (1989: Annex VIII).

On top of that, the ACP States added another declaration in which they reinforced their commitment to a resolution of the Organisation of African Unity (OAU) on the control of transboundary movement of hazardous, nuclear and other radioactive wastes and their disposal in Africa (1989: Annex X).

56 See Section <IP_ADDRESS> for information on the key words *renewable, environment, preservation, sustainable* and *rational*

As discussed above57, cooperation for the development of services accounted for cooperation in the area of information technology. It was primarily concerned with support for the acquisition and installation of information technology systems, the development of telematics networks as well as the production of computer components and software in the ACP States (European Communities 1989: Article 133).

## *Domain 16* - *Cross-sectional issues*

The terminological domain covering cross-sectional issues and the corresponding table (i.e. table 24.13) contain multi-word units which are relevant for more than one field. Their common denominator is their occurrence in several thematic areas rather than thematic similarity.

Table 24.13: Domain 16 - Cross-sectional issues ..

• new clusters only

The importance of human resources for development was mentioned throughout the Convention. The improvement of these human resources was considered necessary in several areas, including the development of mining, commodities, services and trade, and primarily was to be enhanced by

57 See Section <IP_ADDRESS> (domain 4 - types of development) Judith Kast-Aigner - 978-3-631-75372-9 Downloaded from PubFactory at 01/11/2019 05:47:32AM via free access

training activities and the transfer of know-how. While the expressions *enhancement of human resources* and *enhance human resources* were the most popular buzz phrases in this regard, it is also worth looking at other collocations which regularly appeared in the text of the Convention. The frequent use of noun+of+noun collocations (e.g. development of human resources) instead of verb-noun collocations (e.g. to develop human resources) can be considered characteristic of the text type under investigation.

Some problems faced by the developing countries could not be solved by individual states but called for concerted action from several countries or the international community. The expressions *international level* and *regional and international level* may be evidence of the Community and the ACP States recognising this idea and trying to accept the limits of their cooperation. For example, environmental problems required "operations [ ... ) in the context of overall, long-term policies, drawn up and implemented by the ACP States at national, regional and international level with international support" (European Communities 1989: Article 35). The same was true for the field of commodities, which suffered from structural difficulties, and needed to be tackled by strategies that were consistent at both regional and international levels (1989: Article 73).

The expressions *exchange of information* and *exchange of views* had both appeared in the Conventions prior to Lome IV, but with a frequency of less than five. Judging from the increase in their respective frequencies of occurrence, these activities gained in importance in Lome IV. Depending on the purpose and the subject matter, different actors were involved, including the Community, the Member States and the ACP States themselves, enterprises and other economic operators in these countries, the institutions of the Community, the ACP and the Convention, regional organisations, research

centres, decentralised public authorities and unofficial bodies. In the spirit of decentralised cooperation, Lome IV also provided for the active participation of those who were meant to benefit the most from ACP-EEC cooperation, e.g. the local community. Closely related to the exchange of information was the provision of advisory services, which was intended to contribute to the fields of industrial cooperation, enterprise development and investment, among others.

The fact that the term *research institutes* was repeatedly mentioned in Lome IV may be a result of the emergence of learning and education as new areas in development cooperation and a more general trend towards the development of a knowledge society. Research institutes were to support the ACP States in their efforts to acquire scientific and technical skills and help find solutions to economic and social problems, e.g. with regard to health, environment or employment (European Communities 1989: 152).

The transfer, adaptation and dissemination of appropriate technology were discussed in several areas of ACP-EEC cooperation, including agricultural cooperation and industrial cooperation. The term *appropriate technology* is one of only a handful of terms for which the contracting parties provided a precise definition, as they issued a joint declaration on the definition of appropriate technology, annexed to the Convention. Within the framework of Lome IV, the term *appropriate technology* referred to technology that was "appropriate in terms of labour, capital, operation and maintenance" and compatible with the physical environment and local resources (European Communities 1989: Annex XXIII). Furthermore, it had to involve applicable or adaptable know-how, meet health and safety standards and comply with the cultural and social characteristics of the local population. It was also supposed to be flexible enough to take account of the respective social and economic conditions as well as bear the social costs of its impact on the local culture in mind (1989: Annex XXIII).

While the expression *development projects* had been used in Lome II and III, its usage increased in Lome IV. Moreover, it was employed in a variety of contexts, without a visible bias towards a particular area. The expression *development projects and programmes* had not been used prior to Lome IV. However, it is not clear to what extent, if at all, these two expressions differ. One can only presume that *development project* is to refer to a single venture or scheme, whereas *development programme* refers to a set of projects that are supposed to complement one another and contribute to a common objective. A closer look at the independent use of the term *development programmes* Judith Kast-Aigner - 978-3-631-75372-9

supports this view, as the following examples show. In terms of trade development, individual activities were to be carried out only if they formed "an integral part of overall trade and market development programmes" (European Communities 1989: Article 136). Likewise, measures in development finance cooperation were to be "integrated into sectoral development programmes" (1989: Article 224).

The expression *ACP economies,* while covering the economy of the ACP Group as a whole, illustrates that the economies of the individual ACP States were far from homogenous. Referring to the ACP Group's economy as the *ACP economies* makes sense, as the ACP Group was comprised of States in different parts of the world, each with its own structural peculiarities, strengths and weaknesses, and priority areas for development.

Part Three of Lome IV covered the instruments of ACP-EEC cooperation, including four titles, viz. trade cooperation, cooperation in the field of commodities, development finance cooperation and general provisions for the least-developed, landlocked and island ACP States. Judging from its concordances, however, the expression *Community instruments* was not necessarily used to refer to the instruments of ACP-EEC cooperation as discussed in Part Three. In fact, it seems that it is used rather arbitrarily, referring to an unspecified set of measures or activities.

The expression *level of development* was mentioned more frequently in Lome IV than in any of the former agreements. The ACP States' level of development was supposed to be taken into consideration in several areas of cooperation. For example, the decision on whether to provide grants, risk capital or loans from the EIB's own resources was to allow for the level of development of the respective ACP States (European Communities 1989: Article 233). Structural adjustment programmes for LDCs also had to take the level of development of these countries into account (1989: Article 328). Liberalisation of trade in services was supposed to take "due account of the level of development of ACP States" (1989: Article 185).

#### *Domain 18* - *Raising efficiency*

Several word clusters which were identified by WordSmith pointed to the Community's intention to streamline its operations, thus increasing the effectiveness and efficiency of ACP-EEC development cooperation.

Table 24.14: Domain 18 - Raising efficiency\*

• new clusters only

Appearing in the Lome IV corpus 18 times, the expression *monitoring and evaluation* is among the most frequently mentioned word clusters completely new to the Fourth Convention. In fact, Title III of Lome IV, covering development finance cooperation, included a chapter on management and executing agents, an entire section of which dealt with monitoring and evaluation. According to its provisions, monitoring and evaluation was concerned with an

"external assessment of development operations (preparation, implementation and subsequent operation) with a view to improving the development effectiveness of ongoing and future operations" (European Communities 1989: Article 320).

The results of evaluation work had to be published in the form of regular reports and used in the design of future development operations, thus having an immediate impact on future development cooperation policy and practice. In addition to monitoring and evaluation of the various development sectors, instruments and operations, the activities of individual countries and regions were subject to evaluation work. Furthermore, monitoring and evaluation was to be conducted regularly, jointly and independently (1989: Article 321). While it involved national evaluation units in the ACP States and the Community, National Authorising Officers and Commission delegations, it was the responsibility of the ACP-EEC Development Finance Cooperation Committee (the so-called *ACP-EEC Committee)* to ensure "the joint character of monitoring and evaluation operations" by involving experts of both the ACP States and the Community (1989: Article 323). An annual report on monitoring and evaluation activities had to be submitted to the ACP-EEC Committee, on the basis of which it prepared an annual progress report, along with recommendations and resolutions, for the Council of Ministers (1989: Article 327). Oddly enough, even the monitoring and evaluation activities themselves were supposed to undergo monitoring and evaluation, as the ACP-EEC Committee had to

"review the results of monitoring and evaluation, and formulate any suggestions with a view to ensuring the effective implementation of monitoring and evaluation work and further consider proposals for future monitoring and evaluation activities" (1989: Article 325).

Regular references to, and strong emphasis on, the focal sectors for Community aid were another innovation of Lome IV. The draft indicative programme that every ACP State had to prepare was to specify the latter's main development objectives as well as "the focal sector or sectors for which support is considered the most appropriate" together with the measures and operations in order to achieve the objectives in these sectors (European Communities 1989: Article 281). Likewise, the indicative programme which was then adopted by the Community and the ACP State in question on the basis of the draft indicative programme had to stipulate the focal sector or sectors in which the Community was meant to provide support, the resources earmarked to this end, and the measures and actions needed to achieve the goals in these sectors (1989: Article 282).

## *Domain 20* - *Regulatory framework*

The word clusters covered by domain 20 and listed in the respective table refer, in some way or other, to rules and provisions that govern ACP-EEC cooperation.

Table 24.15: Domain 20 - Regulatory framework\*

• new clusters only

Table 24.15 includes both expressions referring to specific regulations and agreements, e.g. *Fourth ACP-EEC Convention* and *Protocol on ACP Sugar,* and expressions used to refer to regulations that were not explicitly named, e.g. *relevant provisions* and *specific provisions.* Others seem to have an intermediate position as they refer to a particular type of provision, e.g. *ACP Declaration* and *Council Regulation.* Although these word clusters might not be particularly interesting or relevant from a terminological point of view, some of them are still worth discussing.

The term *human rights* is one of them. Even the fact that it appeared in Lome IV 15 times is quite astonishing - this would have been unthinkable ten years earlier - and can be considered an indication of the gradual incorporation of elements of political conditionality into the text of the Convention58•

Linked to the topic of human rights, Lome IV also contained seven references to international law. In Article 5, the contracting parties reinforced

"their existing obligations and commitment in international law to strive to eliminate all forms of discrimination based on ethnic group, origin, race, nationality, colour, sex, language, religion or any other situation" (European Communities 1989: Article 5).

They also stipulated to grant "workers who are nationals of the other party" i.e. essentially ACP migrant workers and their family members - the fundamental freedoms in conformity with the principles of international law (1989: Annex V). Furthermore, the contracting parties agreed to comply with international law as far as cooperation in fisheries and development of mining resources were concerned.

The regulatory framework of the United Nations was also gaining ground. Not only was the expression *United Nations Conference* mentioned five times in the main text of Lome IV, but the contracting parties even made reference to the UN in their Preamble, expressing "their common desire to maintain and develop the friendly relations existing between their countries, in accordance with the principles of the Charter of the United Nations" (European Communities 1989: Preamble).

The expression *ACP Declaration* points to the fact that the ACP Group unilaterally issued six declarations in order to voice their opinion on several issues of their cooperation with the Community, including the ACP Declaration on Hazardous and Nuclear and Other Radioactive Waste (Annex

58 See Sections 5.4 and <IP_ADDRESS> for information on the key words *human* and *rights* Judith Kast-Aigner - 978-3-631-75372-9 Downloaded from PubFactory at 01/11/2019 05:47:32AM via free access

X), the ACP Declaration on Debt (Annex LI) and even an ACP declaration on a unilateral Community declaration, viz. the ACP declaration on the Community declaration on the Financial Protocol (Annex LX).

## 5.4.5. The *Lome IV bis corpus*

The mid-term review of Lome IV produced the Agreement amending the Lome IV Convention, which was signed in Mauritius in November 1995. *Lome IV bis,* as the agreement is often referred to, comprised a new financial protocol which was applicable during the second five-year period covered by the Convention, a protocol on the sustainable management of forest resources and a joint declaration on trade development. Apart from these texts, it merely lists the additions and changes to the text of Lome IV and therefore does not represent a stand-alone contract. As a result, the Lome IV *bis* corpus is considerably smaller than the other Lome corpora, consisting of approximately 24,000 words.

#### *<IP_ADDRESS>. Key words*

Based on its word list, which comprises 2,604 items, the key words of the Lome IV *bis* corpus are generated. By eliminating noise and other irrelevant entries, the initial number of 273 key words is reduced to 206, the vast majority of which (i.e. about 75 per cent) also had key word status in Lome IV. Only 15 per cent of the key words of Lome IV *bis* (i.e. 32 words) were entirely new in the sense that they did not have the status of a key word in any of the former Lome Conventions. Table 25 shows the most relevant of this group.

Table 25: Selected new key words of Lome IV *bis*

The word *agents* is connected with decentralised cooperation, which was expanded and strengthened in Lome IV *bis.* The contracting parties recognised the positive impact of decentralised cooperation on their relationship and therefore agreed to "encourage the participation of ACP and Community agents in cooperation activities" (European Communities 1995a: Article 12a).

To this end, the revised text was much more specific on the role of decentralised cooperation and the groups to be involved. The agents of decentralised cooperation were to include decentralised public authorities, rural and village groups, cooperatives, trade unions, teaching and research institutions, nongovernmental development organisations as well as other non-profit organisations and agents that were able and willing to contribute to the ACP States' development (1995a: Article 251a). While decentralised cooperation was supposed to "combine the efforts and resources of organisations from the ACP States and their counterparts from the Community" (1995a: Article 251a), initiatives of agents from the ACP States were particularly encouraged in order to help them build and reinforce their capabilities. Similar agents from the Community were meant to support them by providing technology and organisational know-how, if deemed necessary (1995a: Article 251b). All projects carried out within the framework of decentralised cooperation had to be approved by the ACP States and could be financed by resources of the national indicative programmes, i.e. EDF money, or from counterpart funds. When resources from the EDF were used, they had to be supplemented by contributions from the agents of decentralised cooperation in the form of financial, technical or material resources so that no less than 25 per cent of the estimated cost of the project was born by these agents (1995a: Articles 251c-d).

The enormous impact of the Maastricht Treaty (officially referred to as the *Treaty on European Union* and abbreviated as *TEU),* signed in 1992, on the relationship between the Community and the ACP States has already been discussed59• Obvious amendments, albeit on a superficial level, included the replacement of the term *European Economic Community* **with** *European Community,* the abbreviation *EEC* with *EC* and the term *Council of the European Communities* with *Council of the European Union.* As a consequence, the Lome Convention was referred to as the *Fourth ACP-EC Convention of Lome,* and the term *ACP-EEC cooperation* was replaced with *ACP-EC cooperation.* The names of some institutions of ACP-EC cooperation were adjusted accordingly, including e.g. the ACP-EC Council of Ministers and the ACP-EC Customs Cooperation Committee. Finally, Lome IV *bis* stipulated that the term *delegate*  was to be replaced with *Head of Delegation* (European Communities 1995a: Section A).

Further, less obvious modifications that the TEU and the establishment of a political union brought about are reflected in the words *alleviation* and

59 See Section 5.4

*dialogue.* The Maastricht Treaty laid down the overall objectives of the Community's policy in the sphere of development cooperation, which were repeated, almost verbatim, in the revised text of Lome IV. Table 26 contrasts the respective sections of the texts, i.e. Article 130u of the TEU and Article 78 of Lome IV *bis.*

Table 26: The Community's objectives in the field of development cooperation

In Lome IV *bis,* the Community committed itself to supporting the ACP States' development strategies, while taking its own development objectives into account. One of them was poverty alleviation, which was also emphasised in the revision of the section on programming. In Lome IV *bis,* the draft indicative programme to be drawn up by the ACP States was still supposed to comprise the latter's priority development objectives at national and regional levels as well as the focal sectors for which support was required, but "with emphasis on poverty alleviation.and sustainable development" (1995a: Article 281). In the Joint Declaration on Trade Development ODID), annexed to Lome IV *bis,* the contracting parties stated that trade development was considered an appropriate means of working, both directly and indirectly, towards the above-mentioned objectives as it was said to be

"crucial for the achievement of a smooth and gradual integration of the economies of the ACP States into the world economy thereby promoting sustainable economic and social development and contributing to the alleviation of poverty in these States" (1995a: JOTO Preamble).

The importance of the word *dialogue* increased significantly in Lome IV *bis,*  for the revised agreement introduced the term *political dialogue* to ACP-EC cooperation, thus contributing to the increasing politicisation of the relationship between the Community and the ACP States. In the Preamble, the contracting parties committed themselves to strengthening their links by means of greater political dialogue, which was supposed to be extended to issues of foreign and security policy (European Communities 1995a: Preamble). While the primary forum for enlarged political dialogue was the ACP-EC Council of Ministers, such a dialogue could also be conducted outside this framework, "with a geographical or other composition suited to the subjects under discussion" (1995a: Article 30).

Presumably in response to the UN Conference on Environment and Development (UNCED), informally referred to as the *Earth Summit,* which had taken place in 1992, Lome IV *bis* added a protocol on the sustainable management of forest resources (Protocol 10). The Community and the ACP States acknowledged the results of the Summit, viz. the Rio Declaration on Environment and Development, the so-called *Forest Principles,* the UN Framework Convention on Climate Change and the Conventions on Biodiversity and Desertification, and agreed on several areas and activities in which they wished to cooperate and for which support would be provided to the ACP States (European Communities 1995a: PIO Article 1). The main focus was on the conservation, regeneration and sustainable development of tropical forests, support for reforestation and forest management activities and the building and strengthening of institutions in the forestry sector (1995a: PIO Article 3). In view of the importance of timber and timber products for the ACP economies, the Protocol also included a set of rules for cooperation in this area. For instance, the Community and the ACP States agreed to promote the trade of timber from forests under sustainable development and to develop certification systems for timber and timber products along with national policies "aimed at the sustainable utilisation and preservation of tropical timber producing forests and their genetic resources" (1995a: PIO Article 4).

The fact that the word *Somalia* appears as a new key word in the Lome IV *bis* corpus came as a surprise, the more so as this state had not only been part of the Association established in the Treaty of Rome and a signatory to the Yaounde Conventions, but because it had also been a contracting party of all

four Lome Conventions. In fact, the relationship between Somalia and the Community had worked well during Lome I and II, but deteriorated under Lome III, when the implementation of Somalia's national indicative programme had to be suspended as a consequence of the civil war in the country. While Somalia signed Lome IV, it was able neither to ratify the Convention nor to sign the mid-term revision in 1995 due to the lack of a government. As a consequence, it did not receive any money from the seventh (Lome IV) and eighth (Lome IV *bis)* EDFs. Lome IV *bis,* however, included a special provision, viz. Article 364a, that allowed Somalia to accede to Lome IV *bis* if an internationally recognised government wishing the State's accession was established and the ACP-EC Council of Ministers agreed to accept it ("Somalia-EU cooperation" 1997).

The word *unallocated* was another new key word of Lome IV *bis* and referr~d to unused resources remaining from previous EDFs. More specifically, the Second Financial Protocol applicable during the second fiveyear period covered by the Lome IV Convention, i.e. from 1995 to 2000, established the eighth EDF, part of which arose from the transfer of unallocated resources from the fourth and the sixth EDFs (European Communities 1995b: Article 1 ).

The importance of consistency was emphasised in Lome IV *bis,* mainly in connection with transparency and complementarity. The Community called for increased consistency and complementarity between their collective cooperation operations on the one hand, and the bilateral aid programmes of the individual Member States on the other (European Communities 1995b: Article 16). The EDF Committee was primarily responsible for coordinating the approaches and activities of the Community and the Member States "in the interests of consistency and complementarity" (1995b: Article 18).

#### *<IP_ADDRESS>. Word clusters and terminological domains*

The approach followed to generate word clusters is adapted to the peculiarities of the Lome IV *bis* corpus. As mentioned above, Lome IV *bis*  basically represents a compilation of the modifications of, and additions to, the original Lome IV Convention. As a consequence, the results of the cluster analysis may be less fruitful and meaningful. For one thing, certain terms were replaced with new ones throughout the Convention. These terms might be mentioned in the amending agreement only once, in which case they would not show up in the cluster analysis. For another, several terms may be missed Judith Kast-Aigner - 978-3-631-75372-9 because they appear in the Lome IV *bis* corpus less frequently than five times. While this eventuality can never be eliminated completely, it is more likely to happen with small corpora. On the other hand, due to the relatively small size of the Lome IV *bis* corpus, the cluster analysis does not have to be restricted to the key words. Instead, the entire word list is used, which may result in a larger number of word clusters. With two opposing forces at work, the parameters of the cluster analysis (2-6 word clusters with a minimum frequency of five) are maintained. In order to account for the difficulties mentioned above, those 2-6 word clusters which appear only three or four times, but may still be considered particularly important and relevant, are also discussed.

Table 27: Terminological domains in the Lome IV *bis* corpus

## *Domain 1* - *Countries involved I parties to the contract*

The results of the word cluster analysis include one new multi-word unit in the domain covering the countries and parties mentioned in the revised Lome IV Convention.

Table 27.1: Domain 1 - Countries involved/ parties to the contract\*

• new clusters only

In its definition of the term *developing country,* the Community borrowed definitions from two organisations, viz. the Organisation for Economic Cooperation and Development (OECD) and the World Bank. In Lome IV *bis,* the term was used to refer to

"any country listed as such by the Development Aid Committee of the OECD and the Republic of South Africa except the High Income Countries (HIC) and the countries with a GNP exceeding in 1992 USO 100 billion at current prices" (European Communities 1995b: Annex LXXXXVI).

In other words, the Community's definition of a developing country started with the official list of developing countries that was regularly published by the OECD, but excluded countries which the Word Bank defined as High Income Countries, i.e. a group of countries whose Gross National Income exceeded a particular threshold. In Lome IV *bis,* the term *developing country*  was mainly used as part of the longer term *non-ACP developing country,*  referring to developing countries other than the members of the ACP Group, in connection with determining the originating status of products.

## *Domain* 2 - *Institutions of the Convention I the ACP I the EC*

As mentioned above60, the Treaty of Maastricht left its marks on the organisations and institutions involved in ACP-EC cooperation which are reflected in table 27.2.

Table 27.2: Domain 2 - Institutions of the Convention/ the ACP / the EC'

\* new clusters only

The Maastricht Treaty created the European Union, which consists of three pillars: the European Communities, the Common Foreign and Security Policy (CFSP) and cooperation in the field of Justice and Home Affairs (JHA). The

first pillar included the original European organisations, viz. the European Economic Community, which became the European Community, the European Coal and Steel Community and Euratom (European Union Website 2007b).

The term *European Union* was mainly mentioned in connection with the legal representatives of the individual countries, as in *Ambassador Extraordinary and Plenipotentiary to the European Union,* and/or one of its institutions, viz. the Council, with the term *Council of the European Communities* being replaced with *Council of the European Union.* As the terms *European Economic Community*  and *EEC* gave way to *European Community* and *EC,* the term *ACP-EEC Council of Ministers* was replaced with *ACP-EC Council of Ministers.* The term *Development Finance Cooperation Committee* was used to refer to the ministerial committee formerly known as *ACP-EEC Development Finance Cooperation Committee* or simply *ACP-EEC Committee.*

## *Domain 3* - *Other actors involved*

Further actors which were involved in ACP-EC cooperation under Lome IV *bis* are listed in table 27.3.

Table 27.3: Domain 3 - Other actors involved\*

• new clusters only

In Lome IV *bis,* it was decided to replace the word *delegate* with the expression *Head of Delegation.* In all Lome Conventions, including Lome IV *bis,*  the Commission appointed a person to each ACP State or a group of ACP States that was to represent the Commission and to facilitate the application of the Convention in these countries. The change of name, i.e. from *Commission Delegate* or simply *Delegate* to *Head of Delegation,* can be considered sensible and legitimate, as this person was supported by staff from both the Community and the ACP State(s) concerned.

As explained at length elsewhere61, the organisations and bodies involved in the area of decentralised cooperation were referred to as the *agents of decentralised cooperation* or, in a few cases, *agents from the ACP States,* both of which represented new terms of Lome IV *bis.62*

## *Domain 4* - *Types of cooperation*

As to the types of cooperation, the only new term in Lome IV *bis* was a direct result of the change from *European Economic Community* and *EEC* to *European Community* and *EC* respectively. As a matter of course, the term *ACP-EEC cooperation* was replaced with *ACP-EC cooperation.*

Table 27.4: Domain 4 - Types of cooperation\*

• new clusters only

## *Domain 5* - *Types of development*

In terms of types of development, the WordSmith analysis identified one new word cluster.

Table 27.5: Domain 5 - Types of development\*

• new clusters only

The sustainable development of forest resources was a new topic in Lome IV *bis* and was covered in a separate protocol, as mentioned above63• In addition, sustainability was increasingly considered essential for the ACP States' development in general. For example, in drawing up their indicative programmes, the ACP States were required to emphasise projects that were

61 See Section <IP_ADDRESS> for information on the key word *agents*

62 Whereas in Lome IV the term *decentralized cooperation* had been spelt with the letter "z", in Lome IV *bis* the spelling was changed to *decentralised cooperation,* i.e. with the letter "s".

63 See Section <IP_ADDRESS> for information on the key words *timber, forests* and *tropical* Judith Kast-Aigner - 978-3-631-75372-9 Downloaded from PubFactory at 01/11/2019 05:47:32AM via free access

able to contribute to sustainable development (European Communities 1995a: Article 55). Furthermore, the idea of sustainable economic and social development of the developing countries was mentioned twice in Lome IV *bis,* that is, once in the overall objectives of ACP-EC cooperation and once in the Joint Declaration on Trade Development.

## *Domain* 6 - *Trade-related aspects*

Three new word clusters were identified in the area of trade. They are listed in table 27.6.

Table 27.6: Domain 6 - Trade-related aspects•

In the Joint Declaration on Trade and Development, the contracting parties emphasised the "crucial importance of trade for any self-sustained development" and pointed to the instruments for developing trade provided by the Convention (European Communities 1995a: JDTD). It is quite astonishing that such a declaration was even needed after almost 40 years of cooperation, 20 of which had taken place within the Lome framework. The fact that this declaration was issued nonetheless may show the contracting parties' dissatisfaction and disappointment with the results of the Conventions. Although it was a joint declaration, issued by both the Community and the ACP States, it reads as if the Community wanted to remind the developing countries of their respective roles - that it was meant to provide support, but that it was each ACP State's own responsibility to act and to get off the ground. Accordingly, the contracting parties declared trade development a priority of ACP-EC cooperation under the eighth EDF and agreed to define and implement "coherent trade policies and strategies in line with the comparative advantages and priorities set by each individual ACP State" (1995a: JDTD). Support for the definition and implementation of trade policies and programmes was even added to the objectives of development finance cooperation (1995a: Article 40). Moreover, the appraisal of projects and programmes was meant to take their "compatibility with the ACP States' trade policies and trade development programmes" into account (1995a: Article 59).

In Lome IV *bis,* the contracting parties made frequent references to international markets. Although in some text passages international markets were mentioned in addition to the ACP States' domestic markets, regional and intra-ACP markets as well as Community markets, the latter were sometimes considered a part of international markets. In any case, Lome IV *bis* aimed at strengthening the presence and competitiveness of the ACP States' goods and services not only in their home markets, but also and increasingly in international markets.

#### *Domain 7 -Aid-related aspects*

Partly due to the fact that the revision of Lome IV comprised a new financial protocol, several new word clusters refer to the area of aid. They are shown in table 27.7.

• new clusters only

As Lome IV had included a financial protocol for the first five years of its validity only, Lome IV *bis* contained a new financial protocol, the so-called *Second Financial Protocol,* which covered the period of 1995 to 2000. In terms of European Development Funds, the former provided for the seventh EDF, while the Second Financial Protocol established the eighth EDF.

About two per cent of the eighth EDF represented unallocated or unusable resources that had been transferred from previous funds. While a fraction of these funds were unallocated grants from the fourth and sixth EDF respectively, the majority of these resources arose from the "adjustment of the aggregate total of seventh EDF grants", one part of which was considered unusable for the purposes of programmable aid, with the remaining part being decided upon by the contracting parties on the basis of Article 232 of the Convention (European Communities 1995b: Article 1). The latter provision Judith Kast-Aigner - 978-3-631-75372-9

stipulated an adjustment of the amounts of the EDF in case an ACP State failed to ratify the Convention, new ACP States acceded to the Convention or the Community was enlarged (European Communities 1989: Article 232).

The expressions *implementation of the indicative programme, indicative allocation* and *indicative amount* appear in the rules concerning the programming of resources and the review of the indicative programmes. The amount that each ACP State was to receive in its indicative programme was referred to as the *indicative allocation* or *indicative amount* and was disbursed to the ACP States in the form of instalments. While the indicative programme could be reviewed at the request of the ACP State in question, Lome IV *bis*  provided for its review either three years after the Second Financial Protocol came into force or even before the end of that period, in case the ACP State concerned had achieved "a high level of commitments in the implementation of the programme" (European Communities 1995a: Article 56). This high level was specified by the Community as being 80 per cent of the first instalment of the indicative allocation (European Communities 1995b: Article 19).

While risk capital had always been part of the financial resources provided to ACP States under the Lome Conventions, the term *risk capital resources* first occurred in Lome IV *bis.* The EIB was concerned with the management of two types of resources, viz. loans made from its own resources and risk capital, with all other resources of the Convention being administered by the Commission (European Communities 1995a: Article 68). Like the somewhat clumsy expressions *loans from its own resources* and *loans financed/granted/made from its own resources,* risk capital was sometimes referred to as *risk capital resources.*

#### *Domain 8* - *Political dimension*

One of the new domains of the Lome IV *bis* corpus covers word clusters referring to political aspects of ACP-EU cooperation.

Table 27.8: Domain 8 - Political dimension

As discussed extensively elsewhere64, human rights had first been mentioned in Lome III, but were only seriously addressed in Lome IV. Lome IV *bis* went beyond the provisions of its predecessor by adding democratic principles, the rule of law and good governance, stipulating that development policy and cooperation were

"closely linked to respect for and enjoyment of fundamental human rights and to the recognition and application of democratic principles, the consolidation of the rule of law and good governance" (European Communities 1995a: Article 5).

Even more significantly, respect for human rights, democratic principles and the rule of law were declared essential elements of the Convention. The wording of the new clause was quite explicit and insistent:

"Respect for human rights, democratic principles and the rule of law, which underpins relations between the ACP States and the Community and all provisions of the Convention, and governs the domestic and international policies of the Contracting Parties, shall constitute an essential element of this Convention" (1995a: Article 5).

According to Article 366a, which was inserted into Lome IV *bis,* any contracting party that considered another party to have failed to fulfil an obligation regarding the essential elements could invite the party concerned to hold consultations in order to assess and rectify the situation. If a solution could not be found, appropriate steps could be taken, "including, where necessary, the partial or full suspension of application of this Convention to the Party concerned" (1995a: 366a).

While good governance was not included in the latter provision and therefore did not represent an essential element, it was considered a "particular aim of cooperation operations" (1995a: Article 5). This meant, however, that the suspension mechanism that was added to Lome IV *bis* could be applied in case of infringements of human rights, democratic principles and the rule of law, but not in case of violations of the principle of good governance. It is also worth noting that good governance was not elaborated, let alone defined, in the text of the Convention, which made it even more difficult to take action in case of alleged violations. Nevertheless, the mere fact that good governance was mentioned at all was seen as a major step forward. In this regard, Frisch notes that "this is the first time that this phrase has

64 See Sections 5.4 and <IP_ADDRESS> for information on the key words *human* and *rights* as well as Section <IP_ADDRESS> (domain 20 - regulatory framework) for information on the word cluster *human rights* Judith Kast-Aigner - 978-3-631-75372-9

appeared in an EU cooperation agreement. This is of great significance in terms of development policy" (Frisch 1996: 7).

Finally, the new political tone was also reflected in the official objectives of ACP-EC cooperation, which were added to Lome IV *bis* and, as mentioned above, copied almost verbatim from the Treaty of Maastricht. These objectives included "the development and consolidation of democracy and the rule of law and adherence to human rights and fundamental freedoms" (European Communities 1995a: 78).

## *Domain 9* - *Environment*

The sustainable management and development of forests and forest resources were dealt with in a separate protocol, viz. Protocol 10, of Lome IV *bis,* which resulted in several new word clusters, listed in table 27.9.

#### Table 27.9: Domain 9 - Environment

As explained above65, the contracting parties committed themselves to promoting the conservation and regeneration of tropical forests and the sustainable management of forests that served the production of timber and timber products (European Communities 1995a: PlO Article 3). In recognition of the importance of tropical timber for some ACP economies and the benefits of the sustainable management of forests, the Community agreed to support the ACP States' activities that complied with the provisions of Protocol 10 not only by means of resources within the national indicative programmes but also via additional resources from the Community budget (1995a: PlO Article 5).

65 See Section <IP_ADDRESS> for information on the key words *timber, forests* and *tropical* as well as Section <IP_ADDRESS> (domain 5 - types of development) for information on the word cluster *sustainable development* Judith Kast-Aigner - 978-3-631-75372-9

## *Domain 10* - *Debt and structural adjustment support*

Domain 10 deals with the area of structural adjustment support, where two new word clusters were identified.

Table 27.10: Domain 10 - Debt and structural adjustment support"'

Budgetary support, while mentioned once in Lome IV, received more attention in the review of the Convention. While Lome IV had already allowed for development finance cooperation to cover "budgetary support to alleviate domestic financial constraints", such support was limited to the use of counterpart funds (European Communities 1989: Article 224). This provision was amended in Lome IV *bis,* which stipulated that budgetary support could be given either indirectly, using counterpart funds, or directly, to ACP States with freely convertible and transferable currencies (European Communities 1995a: 41). The main purpose of budgetary support was laid down more clearly by adding that it was meant to assist the ACP States in improving "the implementation of their budgets with integrity, efficacy and equity" (1995a: 50). According to the principles of providing adjustment support, budgetary support had to fit in with the ACP States' overall reform programmes and explicitly excluded its use to cover expenditure for military purposes (European Communities 1995b: 20).

The term *macroeconomic and sectoral policies* was also new to Lome IV *bis,*  appearing three times compared to a single mention in Lome IV. The contracting parties recognised the need to coordinate the ACP States' reform programmes at the regional level and agreed to harmonise macroeconomic and sectoral policies in order to contribute to both regional integration and structural reform (European Communities 1995a: Article 47).

### *Domain 11* - *Regulatory framework*

Four new word clusters come under the heading of *regulatory framework,* as they refer to existing agreements and treaties which strongly influenced Lome IV *bis.*

Table 27.11: Domain 11- Regulatory framework\*

• new clusters only

As Lome IV *bis* represented a review of Lome IV, amending several provisions, adding new rules and paraphrasing others, it comes as no surprise that it made quite a few references to the Fourth ACP Convention (of Lome) and the provisions amending this Convention. The last item in table 27.11 is also unsurprising, as the Treaty commonly referred to as the *Treaty of Rome*  was no longer called the *Treaty establishing the European Economic Community,*  but was referred to as the *Treaty establishing the European Community* instead.

## *5.5. The terminology of the Community's development cooperation policy in the Lome era: summary and conclusions*

The Lorne Conventions represented a complete overhaul of the European Community's development cooperation policy. The standing and significance of Lorne are succinctly described by Grilli:

"Great new experiment in development cooperation or old colonial wine in new bottles, new model of North-South relations or unique historical development, elephant or mouse, the first Lome convention and its successors have nonetheless come to symbolize the European attitude towards, and policy of, development cooperation more than any other set of decisions taken before or after" (Grilli 1993: 35).

For one thing, the range of developing countries was significantly expanded by including numerous former British colonies. For another, the areas of cooperation were broadened and new instruments were developed and applied, with every Lorne Convention adding to the existing areas and instruments of ACP-EC cooperation. While the basic idea of supporting less privileged countries by means of trade as well as technical and financial aid remained intact, the specific approaches adopted by the Community were different, i.e. less traditional, more creative and innovative. Some of the fundamental concepts of the association system of the Treaty of Rome and the Yaounde Conventions were turned upside down, including the change from trade relations based on reciprocity to a system of unilaterally granted nonreciprocal trade preferences, to name but one example.

On a linguistic and terminological level, the passage from Yaounde to Lorne brought about two visible changes. First, the colonial baggage of the Treaty of Rome and the Yaounde Conventions, reflected in the terms *Association* and *Associated States,* was finally left behind. As Hewitt and Whiteman aptly remark, "it was not simply a cosmetic change, but the style mattered" (Hewitt and Whiteman 2004: 140). By establishing the ACP Group, the developing countries gave themselves a legal existence, a formal framework for their activities and a sense of identity. When the Community ceased referring to them as the *Associated States,* they were no longer defined in terms of their relationship to the Europeans, but perceived as an independent entity that was on an equal footing with the Community.

Second, the increased sophistication and level of detail had an enormous impact on the terminology involved, in terms of both quantity and quality. With approximately 32,000 words, Lorne I was not only almost twice as long

as the preceding agreement (Yaounde II), but it also yielded a much larger number of key words (276 compared to 148) and word clusters (118 compared to 53). As the areas of cooperation grew, so did the respective tools and methods applied and, of course, the linguistic means to express these ideas.

Every Lome Convention can be considered representative of a particular theme of ACP-EC cooperation. While the Conventions tended to build on the provisions of their respective predecessors, each one introduced at least one specific feature - be it a new instrument, a fresh initiative or an innovative idea. As the first of the Lome Agreements, Lome I appeared to be utterly unique. Apart from the introduction of non-reciprocity in the trade relations between the Community and the ACP States, the most innovative feature was the system for the stabilisation of export earnings, which was designed to provide those developing countries whose economies were dependent on certain agricultural products with a steady stream of earnings from the export of these goods (European Communities 1975: Article 16).66

Lome II is generally considered the least innovative of the Lome Conventions (Grilli 1993: 37; Karagiannis 2004: 12-13; Frisch67). The key innovation of Lome II was the establishment of a special financing facility to support countries whose economies were dependent on the mining sector and were experiencing serious disturbances.68 The "smaller relative of Stabex", as this system is referred to by Lister (1997: 128), is commonly known as *SYSMIN.*

Lome III saw a major revision of the structure of the text, which was then almost twice as long as Lome I. Organising the main text of the Convention into five parts and differentiating between areas and instruments of cooperation brought about genuine improvements in terms of clarity and comprehensibility.69 The key themes of Lome III were food security and food selfsufficiency, which gained in importance as agricultural cooperation was intensified.

69 See Section 5.4.3

66 See Section <IP_ADDRESS> for information on the key words *earnings* and *transfers* as well as Section <IP_ADDRESS> (domain 5 - aid related aspects) for information on the word clusters *export earnings* and *stabilization system*

67 Personal interview, 4 September 2008.

68 See Section <IP_ADDRESS> for information on the key words *investment* and *mining* as well as Section <IP_ADDRESS> (domain 5 - aid related aspects) for information on the word cluster *special financing facility*

Lome IV and Lome IV *bis* were characterised by increasing aid conditionality. Accordingly, the most important and perceptible change introduced by Lome IV was structural adjustment support, requiring the ACP States to implement macroeconomic and sectoral reforms in order to qualify for the receipt of financial resources.70 The revision of Lome IV involved the incorporation of elements of political conditionality into ACP-EC cooperation, with human rights, democratic principles and the rule of law being declared "an essential element of this Convention" and good governance being considered "a particular aim of cooperation operations" (European Communities 1995a: Article 5).

The fact that every Convention can be linked to at least one key theme not only makes each of them distinctive but is also clearly reflected in the terminology used. In the Lome I corpus, the abbreviation *ACP* and the term *ACP States* are among the most frequent words, raising questions about the whereabouts of the Associated States. References to seven different types of cooperation (vs. two in Yaounde II), including the terms *industrial cooperation*  and *regional cooperation,* point to the extension of the relations between the Community and the ACP States to areas that had not been touched upon prior to Lome. The new key words *earnings* and *transfers* along with the word clusters *export earnings* and *stabilization system* indicate the importance of ST ABEX. The provision of aid was officially referred to as *financial and technical cooperation* and found its way into the language of Lome via the key words *projects* and *tenders* as well as numerous word clusters including *projects and programmes, invitations to tender* and *execution of projects.* The relations between the Community and the ACP States in the area of trade were referred to as *trade cooperation* and exemplified by the word clusters *originating products, movement certificate* and *customs authorities.*

The Lome II corpus reveals the growing importance of the field of energy and mining, exemplified by the terms *mineral products* and *special financing facility,* as well as cooperation in matters concerning rural areas, as the key words *agricultural, rural* and *agro* and the word cluster *rural development* show.

The results of the analysis of the Lome III corpus reflect the emphasis on agricultural cooperation and food security, with the terms *agricultural commodities, food security* and *self-sufficiency* representing some of the most important word clusters in this area. Furthermore, Lome III introduced the

70 See Section <IP_ADDRESS> for information on the key words *adjustment* and *structural* as well as Section <IP_ADDRESS> (domain 6- debt and structural adjustment support) Judith Kast-Aigner - 978-3-631-75372-9

idea of sectoral programmes and called for the channelling of financial resources into a State's focal sector or sectors.

Unsurprisingly, the Lome IV corpus includes several word clusters (e.g. *structural adjustment support, adjustment programmes* and *attenuation of the debt burden)* which point to the fact that the provision of aid was increasingly conditional, based on reforms which the Community and the Bretton Woods institutions required the ACP States to introduce. Likewise, the Lome IV *bis*  corpus reflects the trend towards political conditionality, with the word clusters *political dialogue, human rights* and *rule of law* being added to the language of the Convention.

While these two areas undoubtedly introduced far-reaching changes to ACP-EC cooperation, the corpus analysis uncovers another more general trend, viz. the growing scope and complexity of the Lome Conventions. The increase in the length of the texts resulted from at least two phenomena. First, the rules and provisions governing the relationship between the Community and the ACP States were becoming increasingly elaborate and complicated. For every rule, there were several exceptions; every provision was followed by conditions and restrictions; nothing was left to chance. With regulations becoming overly detailed, their enforcement was also getting more and more difficult and frustrating. Consequently, the enthusiasm and willingness to cooperate tended to suffer, particularly among those parties working in the field. Second, ACP-EC cooperation was continuously expanded to new subjects and areas. While this could be because the contracting parties only gradually identified the areas in which cooperation was possible and sensible, it could also be interpreted as an indication of the general dissatisfaction with, and disappointment at, the results of the Conventions. Whatever the case may be, new areas of cooperation called for new rules, different instruments and further committees. From a terminological point of view, the result is a constantly growing collection of terms, only some of which are truly interesting and meaningful. As a matter of fact, several expressions used in the Conventions seem to be random and ill-conceived, not lending themselves to further study. Moreover, the increase in the areas and instruments of cooperation as well as the countries and parties involved caused the need for coordination and monitoring, which is reflected in the results of the corpus analysis, including the key words *complementarity* (Lome III), *coordination*  (Lome IV) and *consistency* (Lome IV *bis)* as well as the word cluster *monitoring and evaluation* (Lome IV).

Further observations on the terminology used by the Community in the Lome Conventions include the gradual introduction of abbreviations and acronyms and the adoption of terms from other international organisations. The first abbreviations can be found in Lome I, viz. *ACP* for *African, Caribbean and Pacific* and *EEC* for *European Economic Community.* Further examples are included in Lome II *(EUA* for *European units of account),* Lome III *(ECU* for *European Currency Unit* and *EDF* for *European Development Fund),* Lome IV *(CDI* for *Centre for the Development of Industry* and *PMDT* for *processing, marketing, distribution and transport)* and Lome IV *bis (EC* for *European Community).* The acronym *SYSMIN,* short for the system for mineral products, was only used for the first time in Lome III, although the concept had been introduced in Lome II. Likewise, the stabilisation of export earnings, launched in Lome I, was not referred to as *STABEX* until Lome IV. Apparently, the coining and use of acronyms lags behind the actual introduction of the concepts to which they refer.

International organisations had a growing impact on the Community's development cooperation policy, both conceptually and terminologically. As described above71, Lome I introduced the term *least developed ACP States* to refer to a subgroup of the Community's contracting parties which, due to their particular situation, were meant to benefit from more favourable terms. While the UN's concept of least developed countries was used as a basis for identifying these countries, the Community decided to adapt the international classification system to better suit its own agenda. Similarly, the Community followed the IMF when it introduced its structural adjustment scheme in Lome IV. While the IMF had introduced a so-called *Structural Adjustment Facility* in 1986, the EU referred to its schemes as *Structural Adjustment Programme* or, more frequently, *Structural Adjustment Support,* which gave the programme, which was highly unpopular with the developing countries, a positive spin.

Finally, it is worth summarising and providing an overview of the various different types of cooperation that little by little found their way into the Lome Conventions. As in the Yaounde Conventions, the official term to refer to the provision of assistance by the Community was *financial and technical cooperation.* While *technical cooperation* appeared both as part of *financial and technical cooperation* and as an independent term, the expression *financial cooperation* did not exist. New to Lome were *industrial cooperation* and *administrative cooperation,* both of which referred to completely new aspects of

71 See Section <IP_ADDRESS> (domain I - parties to the contract) Judith Kast-Aigner - 978-3-631-75372-9 Downloaded from PubFactory at 01/11/2019 05:47:32AM via free access

the Community's development cooperation policy. The concepts of trade cooperation, regional cooperation and interregional cooperation had existed before, but they had not been labelled as such. In Lome III, the concept of interregional cooperation was subsumed into the concept of regional cooperation. Agricultural cooperation, both the term and the concept, was not a novelty of Lome III, but gained in importance and visibility since it was dealt with more extensively in a separate section. The term *ACP-EEC cooperation* was introduced, representing a somewhat general way of referring to the relations between the Community and the ACP Group. Strangely enough, Lome III was the first of the Conventions to actually mention the term *development cooperation,* which probably best describes the purpose of the agreements. Within the framework of the Lome Conventions, the terms *ACP-EEC cooperation* and *development cooperation* can be considered synonyms. While *ACP-EEC cooperation* indicates the participating groups of countries, *development cooperation* accentuates the objective of their joint efforts. The key change in Lome IV was the fact that the term *financial and technical cooperation*  was replaced with *development finance cooperation.* Development finance cooperation includes technical cooperation, which still existed as an independent term, and the provision of financial resources. Although *development finance cooperation* was coined only five years later than *development cooperation,* the two terms seem to belong together and complement each other. Development cooperation, i.e. cooperation aimed at the development of the ACP States, had to be supported by development finance cooperation, i.e. financial and technical assistance, to make development possible.

#### 5.6. *The Cotonou Agreement*

In June 2000, the Lome Conventions, which had governed ACP-EC cooperation for 25 years, were replaced with a new agreement, which was signed in Cotonou and is referred to as the *Cotonou Partnership Agreement* (or simply *Cotonou* or the *Agreement).* Unlike its predecessors, Cotonou has been concluded for 20 years and contains a clause foreseeing its revision every five years along with a financial protocol for every five-year period (European Commission Website 2007b). Cotonou is also said to differ from Lome in that it merely provides a framework agreement that contains objectives, principles and options for instruments, whereas the Lome Conventions represented "selfcontained rule systems" (Babarinde and Faber 2005: 6). As a consequence, its implementation will depend at least partly on the results of future negotiations and debate (2005: 6).

The principal objective of ACP-EU cooperation is to "reduce and eventually eradicate poverty while contributing to sustainable development and to the gradual integration of ACP countries into the world economy" (ECDPM 2002c: 1). While such a clear focus on poverty reduction and eradication is highly desirable, Arts and Dickson remark that "it is difficult to believe that this has not been the goal of EU development policy thus far" (Arts and Dickson 2004b: 150).

ACP-EC cooperation is based on a set of four fundamental principles: the equality of partners and the ownership of development strategies; the participation of a variety of actors; dialogue and the fulfilment of mutual obligations; and finally differentiation and regionalisation (European Communities 2000a: Article 2; ECDPM 2002c: 1). What might appear to be mere platitudes turns out to be concrete ideas reflected in several provisions of the agreement. For example, the principle of differentiation is deeply entrenched in the new rules governing trade cooperation, with a distinction being made between countries that are considered capable of competing in the global economy and countries that are not (Banthia 2007: 11). The principle of dialogue and the fulfilment of mutual obligations point to a much stronger political foundation of development cooperation (ECDPM 2002c: 1).

In fact, the strengthening of political dialogue and the political dimension of ACP-EU cooperation in general represent one of the major changes of Cotonou. All provisions concerning the political framework of their relationship are grouped together in a separate title, viz. Title II, which represents an "important qualitative change" (Arts 2005: 160). While in the past political Judith Kast-Aigner - 978-3-631-75372-9

dialogue was restricted to a rather narrow set of issues (ECDPM 2002d: 1), i.e. political conditionality of aid in connection with violations of human rights and democratic principles, Cotonou provides for dialogue on "all the aims and objectives laid down in this Agreement as well as all questions of common, general, regional or sub-regional interest" (European Communities 2000a: Article 8). It explicitly includes debate on "arms trade, excessive military expenditure, drugs and organised crime, or ethnic, religious or racial discrimination" and is meant to assess regularly developments in human rights, democratic principles, the rule of law and good governance (2000a: Article 8). While the EU's primary partners in political dialogue are central government agencies, one of the main innovations in Cotonou is the involvement of regional organisations and representatives of civil society organisations in political dialogue (ECDPM 2002d: 1). However, the agreement lacks details on their role and the extent of their involvement and therefore "raises many queries and potentially complicating factors" (Arts 2005: 164).

As in Lome IV *bis,* respect for human rights, democratic principles and the rule of law are considered essential elements of ACP-EU cooperation. In the negotiations of the Cotonou Agreement, the role of good governance, which had had the status of a "particular aim" in Lome IV *bis,* was the subject of heated and lengthy debate, for the EU wanted to make good governance a fourth essential element, an idea that was strongly opposed by the ACP States (ECDPM 2002e: 1-2). Under the compromise that the parties finally reached, good governance is referred to as a *fundamental element* of ACP-EU cooperation, which "enhances its legal status, but like before, keeps governance requirements at a lower profile than the essential elements" (Arts 2005: 163). Most importantly, the violation of an essential element may trigger a consultation procedure, which may be followed by sanctions in the form of "appropriate measures", including, as a measure of last resort, the suspension of aid (ECDPM 2002e: 2). By contrast, failure to comply with good governance standards does not give rise to this procedure, so that the ACP States do not have to fear the suspension of aid in this connection. The only exception applies to serious cases of corruption, which may result in consultations, appropriate action and suspension (2002e: 2). Most significantly, this procedure can be applied in serious cases of corruption not only involving EDF resources but in any country where the Community is financially active and where corruption represents an obstacle to development (European Commission Website 2007c). In this context, the ACP Group criticised the Community for pushing its own agenda, arguing that the text of the agreement was

imbalanced, emphasising and elaborating the EU's objectives, especially its political objectives, but ignoring the aims of the ACP States, viz. development (Arts 2005: 164-165). Arts and Dickson note that "the Community forced its most recent political priority through, and was not open to ACP opposition on this point" (2004: 10).

Another change in ACP-EU cooperation relates to the participation of nonstate actors and local authorities. While the ACP governments are still responsible for formulating their countries' development strategies, non-state actors, including civil society, the private sector and trade unions, as well as local authorities may not only participate in consultations and discussions, but are also provided with financial resources and involved in the implementation of development programmes (ECDPM 2002f: 1). The status of the private sector has been particularly enhanced, with its role as an engine of economic growth explicitly recognised in the Agreement. Being involved in political dialogue, the definition of strategies and the implementation of projects, it is considered a key actor that may "complement governmental action in the development process" (ECDPM 2002g: 1 ). The involvement of civil society was one of the most controversial topics in the negotiations for a new cooperation agreement, as the ACP States were hesitant to accept the involvement of NGOs in all stages of a project and feared being ousted by organisations which they considered to lack governance, accountability and transparency (Carbone 2005: 184). They finally agreed to their involvement, laid down under the principle of participation, which stated that

"apart from central government as the main partner, the partnership shall be open to different kinds of other actors in order to encourage the integration of all sections of society, including the private sector and civil society organisations, into the mainstream of political, economic and social life" (European Communities 2000a: Article 2).

Cotonou provides for non-state actors' involvement in several activities, but only "where appropriate" (2000a: Article 4), with the latter two words raising serious concerns among civil society organisations that their participation may depend on the goodwill of their governments (Carbone 2005: 187).

The traditional areas of ACP-EU cooperation, aid and trade, have also undergone fundamental reform. In terms of aid, the EU has aimed to streamline both the instruments used to provide financial resources and the programming process. The distinction between programmable aid, allocated through national and regional indicative programmes, non-programmable aid, granted for specific purposes (e.g. STABEX, structural adjustment support), and loans administered by the EIB has been dropped. There are now only two cooperation instruments: the grant facility, representing a single envelope for grants to ACP States and regions, and the investment facility, replacing the risk capital and interest rate subsidies provided for in Lome (ECDPM 2002h: 1- 2). ST ABEX and SYSMIN no longer exist as separate instruments, with support for ACP States dependent on agricultural products and/or the mining sector in cases of short-term fluctuations in export earnings provided via the grant facility (Babarinde 2005: 33). Likewise, humanitarian assistance and structural adjustment support have been integrated into the grant facility (Hoebink 2005: 148). The most significant changes with regard to programming are the introduction of performance-based aid management and rolling programming along with the establishment of country support strategies (CSS). The latter is meant to include an outline and assessment of a country's development strategies and an analysis of its situation as well as to provide the basis for the indicative programme. In a system of rolling programming, the indicative programme is subject to an annual review, a mid-term review after 2.5 years and an end review at the end of the programming period (ECDPM 2002i: 1). The allocation of resources is no longer automatic, but has to 'be based on needs and performance" (European Communities 2000a: Annex IV, Article 3). After completing the mid-term and the end-of-term review, the Community may therefore revise the resource allocation, which may result in an increase in resources for the "good performers" or a reduction in resources for the "bad performers" (ECDPM 2002j: 2).

The most radical change is brought about in the area of trade cooperation, where Cotonou provides for a regime that guarantees full conformity with the rules of the WTO. The non-reciprocal trade preferences granted to the ACP States under the Lome Conventions are to be replaced with a set of trade and economic cooperation agreements, which have been the subject of negotiations since 2002 and under which different ACP countries and regions are given different treatment by the EU (ECDPM 2002f: 2). The original plan set forth in the Cotonou Agreement consisted of a transition period until 31 December 2007, during which the "old" trade regime, i.e. the non-reciprocal trade preferences granted under Lome, was to be maintained. In 2008, the new agreements, referred to as *Economic Partnership Agreements (EPAs),* were expected to enter into force. EP As are essentially free trade agreements under which the parties agree to remove restrictions on imports from the other parties (ECDPM 2002k: 1). The key principles of the EPAs are reciprocity,

development, regionalism and differentiation (Bilal 2007: 73). Reciprocity is necessary to make the EPAs compatible with WTO rules, for it requires the ACP States to open their own markets to European products in order to qualify for preferential access to the Community market. The principle of development implies that instead of being mere trade agreements, EP As should contribute to sustainable development, economic growth and, ultimately, poverty eradication (2007: 73) or, using the euphemistic description of the European Commission, represent "trade and cooperation agreements at the service of development" (European Commission 2009: 16). Regionalism means that the EU wants the ACP States to sign EP As collectively as regional groups and not individually in order to promote regional integration. To this end, the ACP States are divided into six groups, viz. West Africa, Eastern and Southern Africa, Central Africa, Southern Africa, the Caribbean and the Pacific (Bilal and Braun-Munzinger 2008: 4-5). According to the principle of differentiation, special treatment is granted to the 39 least developed countries among the ACP countries. Due to their fragile economies, they are not obliged to sign EP As and may choose to retain the existing non-reciprocal trade preferences. In fact, under the so-called *Everything but Arms* (EBA) initiative, adopted by the Community in 2001, they enjoy free access to the European market for all products except arms and ammunition (ECDPM 2002k: 2). Those non-LDC ACP countries that feel that they are not in a position to enter into an EPA lose their non-reciprocal trade preferences granted under Lome and are to be transferred to the EU's Generalised System of Preferences, a nonreciprocal preferential trade regime that offers less favourable terms than Lome (ECDPM 2002k: 1-2).