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.

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2004ROME02493 - Classification: UNCLASSIFIED