The EU is the largest donor in the world, working to reduce poverty and famine in over 100 countries, including the 79 African-Caribbean-Pacific (ACP) States and 21 Overseas Countries and Territories (OCT).

Technical and financial aid is delivered through the European Development Fund (EDF), now in its tenth edition. Although most aid is given as non-repayable grants, some 'soft loans' (with low or no interest) are made by the European Investment Bank. In 2006, the EIB lent €5.9 billion, mainly to developing countries. In the short-term, the EU provides emergency aid to address humanitarian crises around the world, as and when they arise. The funds help an estimated 127 million people globally, following disasters including:

•  the war in Darfur
•  cyclones in Bangladesh
•  meningitis outbreaks in Burkina Faso
•  the 'redestruction' of Lebanon
•  flooding in Peru

In 2007, DG Humanitarian Aid channelled 55% of its budget to ACP countries (€422.7 million). Asia and Latin America received just over one fifth (€157.4 million), while Eastern Europe, New Independent States, Middle East and Mediterranean countries took in the remainder (€124.9 million).   

In the medium to long-term, DG Development promotes sustainable development to reduce poverty worldwide. It is committed to the eight Millennium Development Goals (MDGs), which include halving extreme poverty, halting the spread of HIV/AIDS, and providing universal primary education – all by 2015.  

Recalling its rise from the ashes of World War II, the EU shows solidarity with developing countries by granting almost 60% of global development aid. In 2008, total EU aid (Commission and Member States) stood at €49 billion.   
  
Development crisis?
Developing countries are bearing the brunt of the financial crisis, warns Amnesty International. In May 2009, Secretary General Irene Khan said: "We are seeing a catastrophe. After years of going down, the number of people in poverty is growing again... Food shortages allowed several governments, among others Zimbabwe and North Korea, to use food as a political weapon."

The Commission therefore moved to streamline its development operations in April 2009. To improve their impact and efficiency, the Commission announced that it would 'frontload' more aid to help developing countries through the economic downturn.  

Then Commissioner Michel explained how: “in two years, we will have mobilised 72 percent of what was supposed to be provided as budgetary support for 2008–2013”. This translated into €3 billion up front for African, Pacific and Caribbean (ACP) countries. Michel added: "better or more effective coordination between the Commission and the 27 member states would release about €7 billion per year, or €35 billion between now and 2015". 

In September 2010, new Development Commissioner Andris Piebalgs launched the Young Reporters Against Poverty competition, a joint project with the European Journalism Centre, aiming to raise the profile of development reporting as a career.