16148: (Chamberlain) US and Haiti (fwd)

[Bob Corbett <corbetre@webster.edu>]

From: Greg Chamberlain <GregChamberlain@compuserve.com>

(Wall St Journal, 15 July 03)


Taylor: Haiti Making Progress, Needs More To Earn Aid


WASHINGTON -- Haiti's government is making progress to rein in its budget
deficit and put in stronger policies, but it will need to go further before
Haiti can tap into the full range of available international aid, a senior
U.S. Treasury official said Tuesday.

"The government of Haiti has recently taken strong steps," said John
Taylor, Treasury's undersecretary for international affairs, in prepared
testimony to the Senate Foreign Relations Committee.

"At the same time, Haiti has a long way to go in creating an environment
conducive to investment, entrepreneurial activity, and growth of the
private sector," Taylor said.

Taylor said Haiti needs to lay groundwork for stability if it wants to make
the most of its international assistance. Ongoing problems with corruption
and human rights violations mean Haiti can't access much of the aid it
might otherwise be able to receive, he said.

Haiti is not now eligible for President George W. Bush's grants initiative,
except possibly for projects related to HIV and AIDS, Taylor said. Also,
Haiti has not yet taken action to curb human trafficking, a problem that
could cause Haiti to lose some of its access to aid.

Taylor said the World Bank has "sharply constrained" its role in Haiti
because it can't verify that aid money will be used for its intended
purpose. Major improvements in the Haitian government could lead to a big
boost in Haiti's aid allocation, currently at only $6 billion for three
years, he said.

Taylor said the U.S. would work with Haiti to continue its reforms, clear
its arrears to the World Bank and other institutions, and generate more
private investment. The World Bank also said it was trying to help Haiti
face its problems with corruption and instability.

"The World Bank is working with the government to look at key governance
matters, so that we can avoid this kind of issue, and can begin the ground
work for a program in health, education and community development," said a
World Bank official in a statement Tuesday.

"This is important since the scale of poverty and basic human needs in
Haiti is enormous," the official said.