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Yvonne Tsikata

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World Bank: We Are in Haiti for the Long Haul

Posted: 01/21/10 06:11 PM ET

Today's announcement that we're waiving all payments from Haiti for the next 5 years while we continue to work to forgive its debt of US $38 million -- less than 4% of the country's external debt -- is only a small sliver of our much larger commitment to Haiti.

Since 2005, we have provided US $363 million in grants that have been used to further the country's reform agenda and improve its overall economic prospects. Additionally, in June of 2009 Haiti received US $1.2 billion in debt relief after reaching the completion point under the Enhanced Heavily Indebted Poor Countries (HIPC), which allows creditors, including multilateral institutions, to provide debt relief to the world's poorest and most heavily indebted countries.

Haiti was already showing encouraging signs of improvement when the earthquake struck. It had posted three successive years of economic growth since 2004 -- when the economy contracted by 3.5% -- and the government was making headway in improving governance and transparency, especially in the area of public financial management systems. In spite of the global financial crisis and the fall of remittances, Haiti's economy grew more than 2% last year.

The earthquake has put the brakes on all that, but at the Bank we look to redouble our support to Haiti and its people by building back better and putting the reins of development in the hands of the Haitian communities.

A team of World Bank experts is on the ground in Haiti, to assess how our current projects can be best redeployed to support recovery and to prepare for an emergency operation in response to the earthquake. Bank specialists will join a multilateral team -- including staff from the UN, the European Union and the Inter American Development Bank -- that will be working in Haiti for the next few weeks to conduct damage and reconstruction assessments in every major sector, including health, education, water, sanitation, electricity, and roads.

Going forward, we would like to put special emphasis on the capacity generated by community-driven development projects, where people at the local level decide their priorities. We have supported a number of such initiatives going on in Haiti at the moment that have proven to be particularly successful on the basis of community involvement. This will be critical in the reconstruction.

Just to give an example, by May 2009 our community-driven initiative had completed 549 projects, primarily for agricultural support and other infrastructure -- including grain mills, water pumps, and local roads -- as well as income-generating activities. It provided technical support to 4,032 community-based organizations in rural areas, benefiting around 763,000 people in poor rural areas (or 57 percent of the population of the rural communities covered by the program).

We also want to build back better, making housing and infrastructure more resilient to natural hazards, such as earthquakes and hurricanes. We want to work with the Haitian authorities to strengthen code enforcement and the institutions that supervise this, while continue building the government's capacity to ensure that this happens. In a joint effort with the Global Facility for Disaster Reduction and Recovery (GFDRR) we have recently produced a Reconstruction handbook that I'd like to share here with anyone interested.

In sum, we will be focusing on ongoing projects that work quickly, effectively, and with the people.

The recent tragic events in Haiti have proven the resilience and determination of the Haitian people -- who have not given up on their country or their future or even their hope to still find survivors in the wreckage of their battered capital. We want to join their determination to build a better future based on their own priorities and the help of the international community.

 
Today's announcement that we're waiving all payments from Haiti for the next 5 years while we continue to work to forgive its debt of US $38 million -- less than 4% of the country's external debt -- i...
Today's announcement that we're waiving all payments from Haiti for the next 5 years while we continue to work to forgive its debt of US $38 million -- less than 4% of the country's external debt -- i...
 
 
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06:57 PM on 01/23/2010
The silver lining in the Haiti tragedy is that this a great opportunity to rebuild the country so it's more resilient to natural disasters. This is also a good chance to empower the Haitian people more, invest more in community-driven projects many of which I've seen flourish in Haiti. Those grants being offered to Haiti should focus on these two priorities --namely building back better and benefitting the people directly. One question I have for the World Bank, though, is if it's giving Haiti $100 million in grants, why can't it also forgive Haiti's debt of $38 million? Is it a case of the right hand not knowing what the left hand is doing? Or is rather that they don't want to set a precedent?
05:54 PM on 01/23/2010
It is good that a Bank is showing a little bit of a human face. If it's true that it has given more grants than actual loans to Haiti, then good for the WB. I wish that more banks did that. We just have to wait now how the other ones behave in Haiti.
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joshuak2077
11:24 AM on 01/23/2010
When the World Bank makes such heartbreaking statements in case to "be in help in Haiti" I would like to ask where they (the World Bank) were when widespread poverty and ill-built construction was a common practice? With their "strict" ante-deficit policies toward small and pour countries such as Haiti(and many others) in time when the Big Guys like the US, China and EU printed out billions in subsidies and help to their industries. What is it a hypocrisy in a level unknown or their limited knowledge of Keynesian Economics of "controlled" deficit for a country to get over recessions? Or, may be for them to repeat the "Trickle-down" Economics which theories are neither accepted by US in their Ethanol subsidies or Financial industry subsidies, neither by EU in their anything subsidies? What is wrong with this picture?
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Marvelle
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10:38 AM on 01/22/2010
Yvonne, I'm really encouraged to read this. Glad to hear the Bank and IMF are open to new things in light of this tragedy. Would obviously like to see more guaranteed loans without conditions but understand it takes time to change. You guys could really score some major credibility points and help a lot of people with this plan. Our group Pact used to be in Haiti up until our program ended in November. So much dedication and spirit in the people there. Keep up your great work.

Marshall
10:09 AM on 01/22/2010
The interests of the World Bank have never been the interests of the Haitian people - or poor people anywhere.

If Haiti recovers, it will recover DESPITE the policies of the World Bank - not because of them. I hope your organization's neoliberal designs on the third world are resisted at every turn. Ecologically, economically, and ethically, your institution's policies have been monstrous disasters.

You ought to reflect on how many lives, ecosystems and lifestyles you have helped destroy. God help us all...
01:18 PM on 01/22/2010
Co-signed! The policies of the elitist World Bank have been detrimental to peoples on nearly every continent, just as the old colonial empires were dependent upon forced "open door" trade policies, gunboat diplomacy, slave plantations & other forms of exploitation. The new colonials are still at it, plundering the same or new resources regardless of environmental costs, looking for cheap labor, meddling with independent govts. to promote debt & other destructive policies. The crucial difference between what is happening now with the past is that nowadays everyone around the world has access to information, news about the disparities between rich & poor. Those who are well off may or may not care very much, but those who are the have-nots have plenty of information to inform them so. To expect them not to be angry about how they are getting "screwed" is ridiculous, but this is exactly what the foolish elite is baffled about in their desire to convince people here in the USA & abroad to be satisfied with their lot in life &, of course, to accept the privilege of the few. Interestingly enough, it's starting to happen here in the USA with our loss of jobs. Unless there is a major change in the role of the elite, there will be major unrest.
05:10 PM on 01/22/2010
Right on all....

Yes, who is going to benefit this time? Bechtel Corp is usually a big winner in these reconstruction projects. Of course Haliburton and the rest of the war profiteers are now players.

With the U.S. military now owning Port-au-Prince I am not sure how this will play out. The only thing I know for sure is that the winners will be the global loan sharks aka the World Band and the IMF. The losers--that would be the people of Haiti.

The funds are usually transferred directly from the lending entities straight into the coffers of first world corporations. The people have nothing to say about it except to be saddled with paying it back.

Forever.
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joshuak2077
11:38 AM on 01/23/2010
When the World Bank makes such heartbreaking statements in case to "be in help in Haiti" I would like to ask where they (the World Bank) were when widespread poverty and ill-built construction was a common practice? With their "strict" ante-deficit policies toward small and pour countries such as Haiti(and many others) in time when the Big Guys like the US, China and EU printed out billions in subsidies and help to their industries. What is it a hypocrisy in a level unknown or their limited knowledge of Keynesian Economics of "controlled" deficit for a country to get over recessions? Or, may be for them to repeat the "Trickle-down" Economics which theories are neither accepted by US in their Ethanol subsidies or Financial industry subsidies, neither by EU in their anything subsidies? What is wrong with this picture?
06:44 AM on 01/22/2010
ahh yea.. in it for the long haul. lets see, we can send in US economist to lie about
how we will rebuild haiti, plus we will redo their power supply, and all this will
create 10000's of jobs for haitians. the money the world bank loans will be repaid in no time.
dont forget to over exagerate how much income will come in from all this to repay the loans
so fast, superman couldn't do it faster. then of course it will be the big corporations that
come in and do the work, the money will never leave the world bank. then the world bank
will call in the loan, there will be no money to pay the loan.
haiti will then be called 'world bank island'.

panama, equador, saudia arabia and many more countries have these economic hitmen
come in and promise the world, the world is the world bank coming to take what you
have as far as recourses. no oil in haiti so something is amiss here.
09:16 PM on 01/21/2010
Can we ask China to forgive our debt?
07:53 PM on 01/21/2010
The World Bank doesn't care about Haiti; they've kept them downtrodden since 1904 under a military Junta approved by their counterparts in Washington, D.C. Ask yourselves this: if the policies of the World Bank and the WTO were to help impoverished nations such as Haiti, why haven't conditions substantially improved? Under the guise of "helping" the big industries and corporations really help themselves.
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Captai
Get out while you still can!!
06:46 PM on 01/21/2010
Rahm Emanuel's 'Never waste a good crisis' mantra comes to mind. This is an invasion to secure Haiti's minerals.

http://www.margueritelaurent.com/pressclips/oil_sites.html#5_oil_sites_in_Haiti