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Dominica is a small upper-middle income country, ranked 77 out of 179 countries in the Human Development Index 2008 of the United Nations Development Programme. Social indicators are quite good and reflect Dominica's long-standing tradition of productive investment in human development, including social protection. The economy depends on agriculture, primarily bananas, and is highly vulnerable to the effects of climate change. Tourism is gaining more importance following the government's efforts to promote ecotourism. To combat the still unacceptably high level of poverty, Dominica's principal development challenge is to achieve sustained economic growth through the diversification of its economy and to reduce the risks posed by natural disasters.
The Country Strategy Paper for Dominica (2008-2013) presents the strategic framework for the co-operation between the European Commission (EC) and Dominica under the 10th European Development Fund (EDF). EC assistance under the 10th EDF will concentrate on general budget support to assist the government with the implementation of its policies and strategies aimed at achieving sustained growth and poverty reduction.
The EC's total allocation (2008-2013) foreseen for the Dominica under the 10th EDF to address these priorities amounts to €7.5 million.
In addition, since 1999, Dominica is benefiting from €52.5 million in grants from the Special Framework of Assistance for Traditional ACP suppliers of Bananas, under the general budget of the EC. These grants are contributing to the development of the agriculture, water and sanitation, tourism, credit, transport, ICT and private sectors.
The weakness of the infrastructure base is regarded as a critical constraint to the pursuit of the country's diversification agenda. Therefore, the Country Strategy Paper for Dominica (2001-2007) under 9th EDF focussed on infrastructure development, paying particular attention to the road sub-sector as well as macroeconomic support. The project will serve to complement investment in the social sector and to enhance the efficiency of agricultural and economic diversification programmes.
For further details on projects and programmes in Dominica funded from the European Development Fund and the general budget of the EU, please visit the project's section of the website of the Delegation of the European Union in Barbados and the Eastern Caribbean, responsible for Dominica.
Other sources of information
The Directorate-General for Development is responsible for drawing up the cooperation strategy with Dominica.
More information on EU relations with Dominica is available on the pages of the Delegation of the European Union to Barbados, which is responsible for co-operation activities in the country.
Information on trade relations in the ACP region can be found on the website of the Directorate-General for Trade.