EU pledges $325 million for Haiti

A donors' conference in Washington that drew representatives from 30 countries and 32 international organisations has promised Haiti more than $1 billion over the next two years.

Up to $325 million has been pledged by the European Union which was represented by Commissioner Joe Borg.

The funds will allow the poorest country in the Western Hemisphere to tackle urgent and medium-term development needs after nearly 15 years of political, social and economic instability.

"I am delighted with the result of this conference which demonstrates the level of solidarity of the international community with the people of Haiti," Interim Haitian Prime Minister Gerard Latortue said.

The two-day conference, concluded on Wednesday, was co-hosted by the European Union, Inter-American Development Bank, the United Nations and the World Bank.

The conference was attended by high profile politicians including US Secretary of State Colin Powell.

In his address, Dr Borg spoke about the urgent need for Haiti to organise its institutions. He said that "the many years of bad governance, mismanagement and neglect, coupled with a massive emigration of highly qualified people, have left Haiti's institutions in a disastrous state. A country without institutional capacity will never be able to absorb whatever quantum of funding is placed at its disposal by the international community."

Dr Borg announced that the European Community would provide an overall amount of up to $325 million over the coming two years through the European Development Fund and other EU resources to contribute to the political, economic and social reconstruction of Haiti, depending on the performance of the country.

He said that "on the basis of overall cooperation reviews, progress in implementing the funds committed so far and success in meeting the political benchmarks, the allocation of additional funds in the future is not excluded."

The Interim Cooperation Framework (ICF) spells out the country's immediate needs and medium-term goals, detailing the government's programme over the next two years. The framework was drafted by Haiti's interim government with support from the European Commission, the Inter-American Development Bank, the United Nations and the World Bank.

A report estimates the country needs $1.37 billion over the next two years to jumpstart key reforms and put the country on the path toward sustained growth.