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SIGMA is a joint initiative of the European Union (EU) and the Organisation for Economic Co-operation and Development (OECD), principally financed by the EU.

SIGMA was initially launched in 1992 by the OECD and the European Commission's Phare Programme to support 5 Central European countries in their public administration reforms. In parallel with the expansion of the Stabilisation and Association Process, SIGMA support has subsequently been extended to other countries, including all ten 2004 and two 2007 EU entrants. Full list of countries.

In 2010, SIGMA is, under the EU's Instrument for Pre-Accession Assistance, working with the 4 EU candidate countries (Croatia, the former Yugoslav Republic of Macedonia, Montenegro and Turkey) and with the 4 EU potential candidates (Albania, Bosnia and Herzegovina, Serbia and Kosovo under UNSCR 1244/99). For activities supporting these beneficiaries, SIGMA's main EC counterpart is the Directorate-General for Enlargement.

Since June 2008, SIGMA has also been working, under the European Neighbourhood and Partnership Instrument (ENPI), with countries covered by the European Neighbourhood Policy. In agreement with the European Commission, priority has been given to the launch of activities in Armenia, Azerbaijan, Egypt, Georgia, Jordan, Lebanon, Moldova, Morocco, Tunisia and Ukraine. For work in these countries, SIGMA's main EC counterpart is EuropeAid Cooperation and Development.

SIGMA also coordinates its activities with other EC Directorates-General, including DG Budget, DG Internal Market and Services, and DG Enterprise, as well as with special bodies such as the European Anti-Fraud Office (OLAF) and the European Court of Auditors (ECA).

As a Division of the OECD’s Directorate for Public Governance and Territorial Development, SIGMA is able to draw on the Directorate's expertise and on its networks of public management experts and decision-makers in OECD member countries.