GOI BUDGET SUPPORT FOR HAITI UNLIKELY WITHOUT

UNCLAS ROME 002493 SIPDIS E.O. 12958: N/A TAGS: EAID ECON EFIN PREL HA IT SUBJECT: GOI BUDGET SUPPORT FOR HAITI UNLIKELY WITHOUT INTERNATIONAL AGENCY INVOLVEMENT REF: SECSTATE 132852 ¶1. SUMMARY: THE GOI IS OPEN TO THE POSSIBILITY OF PROVIDING FINANCIAL ASSISTANCE TO THE INTERIM GOVERNMENT OF HAITI (IGOH),PROVIDED THIS ASSISTANCE IS ADMINISTERED THROUGH AN INTERNATIONAL TRUST FUND BY AN INTERNATIONAL ORGANIZATION THAT CAN MONITOR ITS EFFECTIVENESS. IT IS UNLIKELY THAT ITALIAN ASSISTANCE WOULD BE IN THE FORM OF BILATERAL BUDGET SUPPORT TO ADDRESS THE ESTIMATED $65 MILLION SHORTFALL IN THE FY04 IGOH BUDGET, SINCE THE GOI HAS NO EXPERIENCE OR MECHANISM FOR PROVIDING DIRECT BUDGET SUPPORT TO ANOTHER COUNTRY. FURTHERMORE, THE INVOLVEMENT OF AN INTERNATIONAL ORGANIZATION TO ADMINISTER AID TO HAITI IS ESPECIALLY IMPORTANT TO THE GOI BECAUSE IT HAS NO EMBASSY IN HAITI TO FOLLOW UP ON ANY AID AND HUMANITARIAN ISSUES. THE GOI WILL LIKELY SEND A REPRESENTATIVE TO THE HAITI DONORS' CONFERENCE ON JULY 19-20, ALTHOUGH NO FINAL DECISION HAS YET BEEN REACHED. END SUMMARY. ¶2. ON JUNE 24, ECMIN PRESENTED REFTEL DEMARCHE TO DONATO SCIOSCIOLI IN THE MFA'S OFFICE OF WESTERN HEMISPHERE AFFAIRS. ECMIN UNDERSCORED THE PRESSING NEEDS OF THE IGOH, THE SUBSTANTIAL SUPPORT THE USG WILL PROVIDE, AND THE ABILITY OF INTERNATIONAL DONORS TO FILL THE BUDGET SHORTFALL THROUGH RELATIVELY MODEST CONTRIBUTIONS, PROVIDED THAT A SUFFICIENT NUMBER OF GOVERNMENTS STEP UP TO THE PLATE. HE URGED THE GOI TO BE AMONG THOSE WHO DO SO. SCIOSCIOLI ACKNOWLEDGED THAT THE GOI HAD NOT GIVEN MUCH ATTENTION TO HAITIAN ASSISTANCE BECAUSE "IT IS NOT ONE OF OUR PRIORITY COUNTRIES." HE STATED THAT THE PRESENCE OF AN INTERNATIONAL AGENCY TO ADMINISTER ANY AID TO HAITI THROUGH A TRUST FUND WOULD ESSENTIALLY BE A PREREQUISITE FOR ITALIAN AID. ACCORDING TO SCIOSCIOLI, THE ONLY PREVIOUS EXPERIENCE ITALY HAD IN GIVING DIRECT BUDGET SUPPORT WAS IN AFGHANISTAN, AND THIS WAS CHANNELED THROUGH THE WORLD BANK. BUDGET SUPPORT PER SE, SCIOSCIOLI SAID, WAS NOT SOMETHING THE GOI NORMALLY ENGAGED IN, NOR DID IT HAVE ANY FORMAL MECHANISMS TO PROVIDE THIS FORM OF AID. THE MAJORITY OF ITALIAN FOREIGN AID IS PROVIDED IN THE FORM OF PROGRAM AND PROJECT AID, HE ADDED. ¶3. SCIOSCIOLI DID DESCRIBE ONE PROGRAM THROUGH WHICH THE GOI WOULD OFFER ASSISTANCE TO BOTH HAITI AND THE DOMINICAN REPUBLIC ALONG THE BORDER REGION BETWEEN THE TWO COUNTRIES. THIS PROGRAM WILL SEEK TO COORDINATE THE MANY AGENCIES PROVIDING HUMAN DEVELOPMENT AND SMALL COMMUNITY ASSISTANCE UNDER THE RUBRIC OF THE UNDP. ¶4. COMMENT: ALTHOUGH HAITI IS NOT HIGH ON ITALY'S LIST OF PRIORITIES, THERE APPEARS TO BE A REASONABLE CHANCE THAT THE GOI WOULD PROVIDE SOME LEVEL OF FINANCIAL SUPPORT TO THE IGOH, PROVIDED THAT THIS SUPPORT CAN BE CHANNELED THROUGH AN INTERNATIONAL AGENCY SUCH AS THE WORLD BANK OR UNITED NATIONS. END COMMENT. ¶5. MINIMIZE CONSIDERED FOR PORT AU PRINCE. VISIT ROME'S CLASSIFIED WEBSITE: HTTP://WWW.STATE.SGOV.GOV/P/EUR/ROME/INDEX.CF M SEMBLER NNNN 2004ROME02493 - Classification: UNCLASSIFIED