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Financing Haiti’s Future

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Haiti's Needs are Dire

• Haiti is the poorest country in the Western Hemisphere, with per capita income of $361
• Two thirds of Haitians live in poverty

Health
• The average life expectancy is 53 years
• The infant mortality rate is 80 per 1,000
• HIV/AIDS affects 5% of the population

Infrastructure
• Half of the population in urban areas has no access to potable water
• 28% of the population has access to adequate sanitation facilities
• 10% of the population has access to electricity
• 20% of roads are in passable shape

Education
• Nearly half of the population is illiterate
• 35% of children complete fifth grade

Employment
• Almost all employment is in the informal sector
• 50% of Haitians are subsistence farmers; 80% of them can't meet basic food needs for their families

Source: Interim Cooperation Framework Report

July 21, 2004Haiti received more than $1 billion in pledges for the next two years at a donors’ conference that drew representatives from 30 countries and 32 international organizations.

With these funds, the poorest country in the Western Hemisphere is ready 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," said Interim Haitian Prime Minister Gerard Latortue.

The two-day conference, which concluded yesterday, was co-hosted by the European Union, Inter-American Development Bank, the United Nations and the World Bank. All participants emphasized the central importance of the government's ownership of Haiti's reconstruction and development.

Recognizing
the need to learn from past mistakes, however, donors agreed to better coordinate their activities, while the Haitian government agreed to ensure expeditious project implementation. In addition to actively monitoring processes and projects, the Haitian government acknowledged the importance of reaching out to the private sector and civil society.

Framework for Moving Forward

The Interim Cooperation Framework (ICF) spells out the country's immediate needs and medium-term goals, detailing the government's program 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. Drawing on input from close to 250 national and international experts from 26 bilateral and multilateral donors, UN agencies, civil society and the private sector, the ICF was the basis for the high-level pledging session on July 20.

 

The 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. At the time of the report’s release last week, the government had already received $440 million in external assistance and internal resources prior to the donors’ meeting.

The government intends to host a follow-up meeting in September in Port-au-Prince to ensure that assistance is consistent with the priorities identified in the framework.

Haiti's Immediate Needs

The interim Government's priorities as outlined in the Interim Cooperation Framework revolve around four strategic areas:

  • Strengthening political governance and promoting national dialogue
  • Strengthening economic governance and institutional development
  • Promoting economic recovery
  • Improving access to basic services

In the next two months alone, the government plans to create more than 44,000 jobs, collect and dispose of 50 percent of garbage in urban areas, upgrade the conditions of 500 slums and double electricity services to 12 hours per day in Port au-Prince.

These programs will help restore stability and improve the quality of life in a country where a political crisis and violence kept children out of school, closed businesses and interrupted electricity and water services while piles of garbage accumulated in the streets.

Over the next two years, in the social sector alone, the ICF outlines programs to improve nutrition for more than one million poor children and their mothers, students, orphans, street children and destitute elderly, immunize 80 percent of children under age one against diphtheria-tetanus-pertussis (DPT3) in fifteen key districts, and rehabilitate 1,500 schools.


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