The principle aim of the EU Development Policy is to reduce poverty with a view to its eventual eradication. EU development policy embraces all developing countries. The Least Developed Countries and low-income countries are given priority in the allocation of resources, taking into account their own efforts to reduce poverty, their needs, their performance and their capacity to absorb aid. However, poverty reduction strategies are also encouraged in those middle-income countries where the proportion of people living in poverty remains high.

EU development assistance is focused on six areas, identified as being most effective in reducing poverty:

• 1.21 The link between trade and development
• 1.22 Regional integration and co-operation
• 1.23 Support for macro-economic policies and the promotion of equitable access to social services
• 1.24 Transport
• 1.25 Food security and Sustainable Rural Development and
• 1.26 Institutional capacity-building

Within these broad areas, attention will consistently be given to human rights, to the environmental dimension, to equality between men and women and to good governance.