WASHINGTON, (Reuters) – Haiti yesterday won $324 million in new commitments from donors for the next two years to rebuild the poorest country in the Americas.
Earlier, Haitian Prime Minister Michele Duvivier Pierre-Louis said the government needed $1 billion in reconstruction aid. It was not immediately clear whether the difference would be made up from some of the $1.5 billion donors have pledged but Haiti hasn’t yet received.
“We are treading on very fragile ground,” Pierre-Louis told a donor conference in Washington. “If no action is taken now the consequences will be catastrophic.”
She urged donors to back Haiti’s two-year rebuilding plan, which aims to create more than 150,000 jobs, encourage private-sector investment and spur economic growth.
“I want to take back with me the commitments and hope we are longing for in our quest for lasting development and democracy,” said Pierre-Louis, who said she would tackle corruption and improve transparency.
Haiti is the Western Hemisphere’s poorest country, with nearly 1 million young people expected to enter the job market over the next five years. Inter-American Development Bank officials said $41 million of the new commitments would go toward filling a $125 million budget shortfall.
In addition, Haiti is set to qualify for up to $1 billion in debt relief from international agencies by mid-2009, which will free up additional resources for government spending.
U.S. Secretary of State Hillary Clinton pledged $57 million, consisting of $2 million to help train the Haitian police, $20 million for infrastructure jobs, $20 million to help pay off debt and $15 million for agriculture.
“For all of us it is now a test of resolve and commitment. This nation is on a brink of either moving forward with the help of the collective community or falling further back,” said Clinton, who plans to visit Haiti late this week.
“The trajectory of progress has been undermined by the combined winds of hurricanes and the global economic recession. Haiti is in danger of stalling.”
Meanwhile, the World Bank will give Haiti an additional $20 million in grant assistance, raising to $80 million in new funding expected to be approved for Haiti over the next 2 years, World Bank President Robert Zoellick said.
U.N. Secretary-General Ban Ki-moon said Haiti’s recent political stability and improvements in security, backed by 9,000 U.N. peacekeepers, gave reasons for optimism.
“Haiti is at a turning moment,” said Ban, who has made Haiti’s reconstruction a priority and recently visited with former U.S. President Bill Clinton.
“By acting now, we will protect the considerable investment and progress we have made so far,” he said.