The report documents considerable progress in many areas despite the slow economic growth in 2011 relative to 2010. With regards to political developments, the region has witnessed holding of democratic elections in DRC, Lesotho, Seychelles, and Zambia. These elections were predominantly characterised by democratic rule and smooth transition of power. In 2011 the economic performance in the region was largely influenced by developments in the global markets, especially the euro area. Despite improved commodity prices in the region, economic growth slowed down in 2011 relative to 2010 and the fiscal position deteriorated due to pronounced worsening in the fiscal accounts of most Member States.