Glossary of Development Terms and Abbreviations

NB: Some of these terms are specific to DFID, others are used throughout the development community.

EAC - East African Community

EADB - East Africa Development Bank

EBA - Everything But Arms

EBRD - European Bank for Reconstruction & Development - a major multilateral donor.

EC - European Commission

EC - European Community

EC Attribution - The system whereby the cost of the UK share of EC spending on overseas aid is charged by HM Treasury to DFID. EC spending on other subjects is charged to the appropriate Department by HM Treasury.

ECA - Economic Commission for Africa

ECE - Economic Commission for Europe

ECGD -Export Credits Guarantee Department

ECHO - European Community Humanitarian Office

ECLAC - Economic Commission for Latin America and Caribbean of UN

ECO - Economic Cooperative Organisation (Asia countries)

Ecological Segregation - differing niche requirements of species and the varied degrees of utilisation of habitat.

Economic Analysis - the comparison, with money as the index, of those costs and benefits that can be reasonably quantified including all social costs and benefits of a project.

Economic analysis takes into account the opportunity cost of labour and capital; it considers private and social costs and benefits including environmental and other intangible social effects; it does not take into account subsidies and taxes.

Economic costs try to measure the real, or resource, cost to the economy from undertaking a particular activity. Economic benefits are not the same as financial revenue - where benefits are not fully quantified.

Economic Appraisal - the comparison of quantifiable costs and benefits accruing to society as a whole/the nation as opposed to the immediate beneficiaries. Economic appraisal is usually only required where a project is sizeable and/or there is a high degree of risk attached to it. When quantification would impose excessive cost, it is best to treat the items as intangibles.

Economic Growth - An increase in a country's total output. It may be measured by the annual rate of increase in a country's Gross National Product (GNP) or Gross Domestic Product (GDP) as adjusted for price changes. The increase in GNP, at constant prices per head of the population, indicates changes in the average level of living in that country but says nothing about the distribution of the levels for different social groups around that average.

Economic Rate of Return - is the interest rate which discounts the flow over time of costs and benefits of a project, such that the discounted costs and benefits are equal. Unlike the financial rate of return the ERR looks at the return on capital from the point of view of the economy. This entails the inclusion of all costs and benefits and their adjustment to correct for distortions caused by, for instance, monopoly or price controls or taxes and subsidies.

Economic Valuation - giving an economic value to environmental factors and considerations. This helps give weight to such considerations where they might otherwise not be taken into account. Full valuation requires significant information, time and resources.

Methods commonly used are adaptations of conventional cost-effectiveness and cost-benefit analysis.

1. Cost Effectiveness - identifying the least-cost option that meets the standard specified. This requires the capture of all costs.

2. Cost-Benefit Analysis - see above.

3. Internalising Unavoidable Environmental Impacts - where the environmental impact of the project is the key issue in determining whether or not it is feasible or desirable, i.e. where the environmental costs and benefits identified during the EIA are given equal weight with other economic factors. There is need to put a monetary value on the costs and benefits (as in 2 above).

Economy - the extent to which the costs of inputs are minimised.

ECOSOC - Economic and Social Council of the UN

Ecosystem - a community of organisms and the non-living environment in which it exists.

ECOWAS - Economic Community of West African States

EDF - European Development Fund

EDS - Education Development Scheme

Effectiveness - a measure of the extent to which an aid programme achieves its objectives at the goal or purpose level.

Effects - see Impacts.

Efficiency - relationship between the outputs and inputs used or assigned.

EIA Report - See Environmental Impact Statement.

EIARD - European Initiative for Agriculture and Development

EIB - European Investment Bank

EMAS (Eco-Management and Audit Scheme) - This is related to the European Union directive on Eco-Management and Audit Schemes and sets a framework for implementing and policing "green" labelling schemes in EU member states. Under these schemes, organisations which meet certain environmental conditions earn the right to display a recognised "green" logo on their publicity material and packaging.

Emergency Aid - comprises disaster relief, food aid, refugee relief and disaster preparedness. It generally involves provision of material aid (including food, medical care and personnel), finance and advice to:

save and preserve lives during emergency situations and in the immediate post-emergency rehabilitation phase;

cope with short and longer term population displacements arising out of emergencies.

EMU - European Monetary Union

English for Specific Purposes (ESP) - The skills required for using spoken English for such special purposes as medicine, commerce, engineering etc. A priority for aid to English language teaching.

Enhanced Structural Adjustment Facility (ESAF) - Structural Adjustment Facilities provide medium term balance of payments assistance to countries facing protracted balance of payments difficulties, for a programme of policy measures to be worked out with the IMF and/or World Bank. The Enhanced Structural Adjustment Facility was introduced in 1987 to provide additional funds.

Environment Know How Fund - finances the transfer of British skills and expertise to the countries of the former Central and Eastern Europe and Central Asia for tackling environmental problems. It is managed jointly by DFID and the Department of the Environment, Transport and the Regions.

Environmental Action Programme for Central and Eastern Europe (EAP) - adopted at the ministerial conference in Lucerne, April 1993. It sets down the methodology for creating strategic environmental priorities at national level. It is not prescriptive, but helps the country to draft effective and realistic environmental protection plans. The Environmental Action Programme sets the framework for environmental projects and programmes across the CEE countries. It provides the context within which individual countries can develop their National Environmental Action Plans.

Environmental Analysis - Sometimes abbreviated to EA (although note that these initials are commonly used also to refer to Environmental Assessment or Environmental Appraisal). This is a broad term used within DFID to describe any form of environmental study which falls short of the full formal EIA process. This varies, for example, from a brief desk study or request for further information to hiring a consultant to undertake field studies and make recommendations. Environmental Analysis is appropriate where there is potential for significant negative environmental impacts but because of their size, nature and location, those impacts can be readily identified, assessed and mitigated.

Environmental Appraisal - Environmental Appraisal is the generic term used within DFID to refer to the policies, procedures and methodologies used to ensure that environmental issues are addressed at the earliest possible stage in the project cycle. Environmental Appraisal can be conducted at three levels Initial Screening, Environmental Analysis and Environmental Impact Assessment. Details and guidance on policies, procedures and techniques related to Environmental Appraisal are contained in the DFID Manual of Environmental Appraisal.

Environmental Assessment - Sometimes abbreviated to EA, this is another term that may be used for Environmental Impact Assessment or EIA, as in the UK domestic planning regulations. The World Bank uses this term with an equivalent meaning to the DFID term Environmental Appraisal but several other systems also use it to refer to the intermediate level of study called Environmental Analysis in DFID.

Environmental Auditing - This is the process of assessing the environmental impacts of existing developments, policies sectors and projects, as opposed to Environmental Impact Assessment which applies to new or substantially modified developments. An Environmental Audit identifies past or present concerns, potential environmental health and safety risks and liabilities, and the need for further investigations. It is generally a planned, documented, systematic and objective evaluation of both the information obtainable by Environmental Monitoring and the effectiveness of Environmental Management Systems.

Environmental Compliance Monitoring - This is the process of obtaining the information required to evaluate the extent to which project implementation and the relevant Environmental Management System are adequate, conform to planned arrangements and comply with environmental regulations. While the main project consultants can often competently perform this task, the use of independent consultants to collect and / or audit such information is recommended for any project with a high potential for negative environmental impacts, or if there are particularly complex or stringent environmental management requirements. This would include many large scale projects, projects located in environmentally sensitive areas and situations where there may be a conflict of interests for the main consultant between meeting environmental objectives and meeting other performance targets, especially where penalty clauses apply.

Environmental Fund - This term usually refers to funds developed in an individual country of which two main types can be distinguished. Typically Conservation Trust Funds are legally separate trusts, funded primarily from donor contributions or debt swaps and they disburse funds in the form of grants, mainly to NGOs, Community Groups and park areas for nature and biodiversity conservation. Most Conservation Trust Funds are in developing countries. Pollution Abatement Funds raise revenue primarily from pollution charges, fines and taxation are administered by Environment Ministries and disburse funds is via soft loan and grants to enterprises and municipal government projects for projects targeted at pollution abatement. Most Pollution Abatement Funds are in transitional economies. (See also national Environmental Funds).

Environmental Impact Assessment - Commonly abbreviated to EIA, this is the process of assessing and managing the environmental impacts arising from a new or substantially modified development throughout the project cycle. A full EIA is usually carried out for major infrastructure and development projects, projects requiring a major change of land use and projects located in particularly sensitive areas. A key determining factor in deciding whether an EIA is required is the extent to which the environmental impacts of a project can be readily identified, assessed and mitigated. An EIA is a standard procedure for all bilateral and multilateral donors. (See also Environmental Assessment).

Environmental Impact Statement - Sometimes abbreviated to EIS, this is the written record of an EIA study submitted to decision makers with project documentation. The production of the EIS is only one stage in the EIA process not, as is sometimes assumed, the output of that process. The EIS is sometimes referred to as an Environmental Statement (ES) or EIA Report.

Environmental Management Plans - Sometimes abbreviated to EMP, this is the documentation relating to the management, monitoring and auditing of environmental impacts during project implementation and operation. It is used in the context of an Environmental Impact Assessment to refer to a plan developed to ensure the proper implementation of recommended mitigation measures and the verification of predicted environmental impacts. EMPs may also be referred to as Environmental Management and Action Plans - EMAPs.

Environmental Management System - Sometimes abbreviated to EMS, this is the part of an overall management system which relates to implementing and maintaining the environmental policy of an organisation and usually refers to operational management systems. The international standard ISO 14000 series is concerned with Environmental Management Systems (The UK equivalent being BS 7750).

Environmental Monitoring - This is the process of obtaining the environmental information required to determine the state of, and trends in, baseline environmental situations i.e. measuring the changes in the quality of the environment in order to guide changes of policy or activity, in order to detect improvements as a result of actions taken. This term is sometimes used to refer to Environmental Compliance Monitoring.

Environmental Policy - The Environmental Policy of government (at national or sub-national level) refers to those policies concerned with achieving an optimal level of environmental quality by correcting market and regulatory failures. The Environmental Policy of an organisation or firm is a public statement of its intentions and principles of action regarding the environmental impacts of its actions and giving rise to its environmental objectives and targets.

Environmental Statement - Sometimes abbreviated to ES, see Environmental Impact Statement.

Environmental Evaluation - a review of the likely impact of a project proposal submitted by a developer.

Environmental Protection - actions at international, national and local levels to prevent and, where possible, reverse environmental degradation. Includes conserving resources especially non-renewable ones, recycling old products, reducing the production of waste and disposing of it safely, developing cleaner technologies e.g. environment-friendly energy resources. It is usually underpinned by legislation (see also: Sustainable).

Equity - the net worth of a business.

Equity Financing - the financing institution, instead of lending money to the project promoter, becomes his/her partner in business and provides financing of project investment outlays in return for a share of project's profits. Once profits have paid back the return on investment the financial institution sells off its shares (Source: Haskoning).

ESCAP - Economic and Social Council for Asia and the Pacific (a UN Organisation)

ESCG - External Strategy Communications Group

ESCWA - Economic and Social Commission for West Asia

ESMAP - Energy Sector Management Assistance Programme (WB)

Estimate - in government accounting terms this is a statement of how much money the government needs in the forthcoming financial year and for what purpose, by which Parliamentary authority is sought for the planned level of payments and receipts.

European Currency Unit (ECU) - a notional currency used as a unit of account by European Union institutions. It is the weighted average of the EU Member State currencies.

European Development Fund - is the route through which funds committed under the Lome Convention are channelled.

The European Investment Bank (EIB) - is the European Communities long term financial institution. Currently, about 90 per cent of its lending is to European Union Member States, of which 50 per cent is to the private sector.

The EIB is increasingly active in non-member countries. Since 1990, the Bank has played a role in the EC's policy of aid to and cooperation with Central and Eastern Europe. Priority areas for EIB lending are infrastructure, e.g. transport, telecommunications and energy, as well as industry, mainly though credit lines ('global loans'). The EIB has also financed a number of environment projects.

European Union (EU) - an economic and political alliance currently comprising 15 European nations. It embraces a number of institutions, including the Council of the EU, the European Parliament, European Commission (civil service), Court of Justice and Court of Auditors.

ETFAG - European Tropical Forestry Advisers Group

ETFRN - European Tropical Forest Research Network

EU - European Union

EUROSTAT - Statistical Office of the European Communities (SOEC)

Evaluation - an assessment, as systematic as possible, of an ongoing or completed project, programme or policy, its design, implementation, output, and impact.

A wider and more comprehensive activity than impact assessment. Generally multi-disciplinary. The aim is to determine the relevance and fulfilment of objectives, developmental efficiency, effectiveness, impact and sustainability.

Project evaluation provides evidence for decision makers, for the purposes of achieving improvements in the implementation of ongoing projects and in the design of new ones and for accountability purposes. The process of evaluation consists of collecting, analysing, interpreting and reporting data both quantitative and qualitative.

Lessons from evaluations should be taken into account from the outset of project design. Although the term evaluation is used in a number of ways by other donors, in DFID Evaluations are undertaken at the end of the project. An appraisal is undertaken at the beginning of the project, with Review undertaken during the project. A terminal evaluation takes place immediately at the end of the project, and a maturity evaluation some time after that. (see also: Project Evaluation).

EvD - Evaluation Department

EVSUMS - Evaluation Summaries

Ex Ante Evaluation - the result an activity or project is expected or intended to have, i.e. based on prediction and extrapolation; a way of assessing whether a proposed project is feasible (see also: Evaluation).

Exchange of Letters - in DFID these are in a standard format. They record the understanding between the donor and the project partners on the project content, terms and conditions, timing. (see also: project memorandum and Treaty).

Export Credits Guarantee Department (ECGD) - A British Government department established in 1919 and run on commercial lines which provides insurance for exporters against the main risks in selling overseas and guarantees to banks providing export finance. It supports export credits to developing countries as part of its normal operations. When the length of the credit exceeds one year these are included in British net private flows, which count towards the United Nations Conference on Trade and Development 1 per cent target but the business and repayment terms it is prepared to insure are governed by commercial criteria. This is in order to meet the requirement to operate on a solvent basis and the need to secure the earliest return to the British balance of payments that competitive trading conditions allow. ECGD also operates an investment guarantee scheme, which came into being as a result of the Overseas Investment and Export Guarantees Act 1972. Insurance can be given for new investment overseas against the risks of war, expropriation and restricted on remittances. Cover cannot be offered against commercial risk. The scheme is primarily intended to apply to developing countries.

Export credits - finance the supply of goods and services to aid recipient countries. Only credits with an initial or extended maturity over one year are included in total resource flows. Private export credits are those made available by the private, bank and non-bank, sector. Guaranteed export credits are those parts of private export credits guaranteed by ECGD.

Ex Post Evaluation - an evaluation of a completed project, ex post evaluations can be carried out immediately after project completion (so-called 'terminal evaluations') or some time later when the impacts are more fully developed. Sometimes referred to as summative evaluation. Contrast on-going evaluation. (see also: Evaluation).

External Evaluation - an evaluation by persons outside the project implementing and main donor organisations.

Externality - an effect of a project felt outside the actual project itself, and not included in the valuation of the project. Such effects commonly include damage to the environment or public health. (Source: Haskoning).

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