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Speeches
Jan 25, 2010
Remarks by IDB President Luis Alberto Moreno to the II International Economic Forum Latin America & the Caribbean
Paris, France
(Extract on the Haitian situation after the earthquake of Jan. 12)
I can't begin this speech without mentioning the Haitian tragedy, as you would say in French, cas de force majeure, Haiti est a l’ordre du jour. A donor meeting will be held today in Montreal.
Haiti, our region's most vulnerable nation, suffers a tragedy of unimaginable magnitude. Two weeks after an earthquake devastated Port au Prince, we still don't know the number of fatalities, but we do know that around three million people, the city’s population, are calling for help. The national government has lost practically all its infrastructure. This bleak situation requires an unprecedented response from the international community.
The humanitarian emergency was the top priority during the first two weeks. Many friends of Haiti mobilized rescue teams. The current concern is to provide safety, food and shelter to those affected by the quake. Fortunately, they are making good use of lessons learned from other major disasters, such as the tsunami that struck Southeast Asia in 2004. We have even seen a repeat of the wave of global solidarity that raised hundreds of millions of dollars for the victims.
Although we are still in the emergency phase, it is not too early to start thinking about reconstruction. The international community responded quickly to other natural disasters such as Hurricane Mitch, the storm that hit Central America in 1998, the international community responded quickly, pledging billions of dollars to the affected nations. On that occasion, the traditional donors in Europe and North America played the leading role. This time, Latin America and the Caribbean can and should play a major role in launching a true Marshall Plan for Haiti.
Some of our countries are already represented by their troops in the UN Mission for Stabilization in Haiti (MINUSTAH). More recently, several Latin American and Caribbean governments expressed their enthusiasm in supporting the IDB’s efforts to boost foreign investment in Haiti. Their commitment is needed now more than ever. It is not just about providing financial resources, Haiti also needs technical assistance. Our region, prone to natural disasters as it is, has extensive experience in this field, both for the better and for the worse. The case of Managua, devastated by an earthquake in 1972, is a classic example of wasted grants. But there are other experiences to consider.
In 2001, El Salvador suffered two devastating earthquakes within one month. They left 200,000 families homeless. One lesson from this experience is that smaller refugee camps are much more manageable than larger ones. Another lesson from that disaster is the convenience of employing homeless people in tasks such as the removal of debris in exchange for modest wages - an imperative in Haiti, where most people lack formal jobs.
My own country, Colombia, is exposed to various types of natural disasters. In 1999, two earthquakes destroyed over 100,000 buildings and left half a million people homeless people in the “coffee axis”, an area that’s key for the national economy. It was the worst disaster in Colombian history, yet the reconstruction was completed in less than four years. The key was the system adopted by the Colombian government. Instead of using the existing bureaucratic structures, the government selected a group of universities, cooperatives, civic groups and professional associations to manage the reconstruction.
The role of the government was limited to resource allocation and monitoring the process, which demanded only 120 civil servants. Some 130,000 damaged houses were rebuilt and new homes for over 16,000 families living in high risk areas were built with this system.
What role can the IDB play? In El Salvador, the Bank helped organize a donor meeting that raised $1.3 billion in commitments. In Colombia, the IDB reallocated resources, shifting them from some of its projects in execution to high-priority tasks such such as infrastructure repair.
We can play a similar role in Haiti. Last year we organized a donor meeting for the Haitian government. We are the main source of multilateral financing for Haiti, we have an extensive portfolio of projects that could focus on the most urgent reconstruction tasks. We have already informed the Haitian government that there are $ 90 million that could be readily assigned to such priorities. Additionally, we were foreseeing to approve $128 million in grants for Haiti this year, that could be leveraged with contributions from other donors.
The Board of Governors of the IDB, some of them present here today, will discuss a debt relief scheme to alleviate the $ 441 million that Haiti owes the Bank. It is worth clarifying that Haiti’s debt service payments to the Bank in the period 2009-2011, are covered by resources from a US-financed trust fund. Therefore, there’s been no outflow of funds for Haiti as a result of its debt with the IDB.
The enormous challenge of rebuilding Haiti is beginning for the Bank. Now we need the commitment of our member countries in an difficult task that will take years. The solidarity of Latin America and the Caribbean needs to stay strong long after the harrowing images of the disaster vanish from the media. But if we get to rebuild a capital worthy of Haitian pride, the effort will be worthwhile.
I can't begin this speech without mentioning the Haitian tragedy, as you would say in French, cas de force majeure, Haiti est a l’ordre du jour. A donor meeting will be held today in Montreal.
Haiti, our region's most vulnerable nation, suffers a tragedy of unimaginable magnitude. Two weeks after an earthquake devastated Port au Prince, we still don't know the number of fatalities, but we do know that around three million people, the city’s population, are calling for help. The national government has lost practically all its infrastructure. This bleak situation requires an unprecedented response from the international community.
The humanitarian emergency was the top priority during the first two weeks. Many friends of Haiti mobilized rescue teams. The current concern is to provide safety, food and shelter to those affected by the quake. Fortunately, they are making good use of lessons learned from other major disasters, such as the tsunami that struck Southeast Asia in 2004. We have even seen a repeat of the wave of global solidarity that raised hundreds of millions of dollars for the victims.
Although we are still in the emergency phase, it is not too early to start thinking about reconstruction. The international community responded quickly to other natural disasters such as Hurricane Mitch, the storm that hit Central America in 1998, the international community responded quickly, pledging billions of dollars to the affected nations. On that occasion, the traditional donors in Europe and North America played the leading role. This time, Latin America and the Caribbean can and should play a major role in launching a true Marshall Plan for Haiti.
Some of our countries are already represented by their troops in the UN Mission for Stabilization in Haiti (MINUSTAH). More recently, several Latin American and Caribbean governments expressed their enthusiasm in supporting the IDB’s efforts to boost foreign investment in Haiti. Their commitment is needed now more than ever. It is not just about providing financial resources, Haiti also needs technical assistance. Our region, prone to natural disasters as it is, has extensive experience in this field, both for the better and for the worse. The case of Managua, devastated by an earthquake in 1972, is a classic example of wasted grants. But there are other experiences to consider.
In 2001, El Salvador suffered two devastating earthquakes within one month. They left 200,000 families homeless. One lesson from this experience is that smaller refugee camps are much more manageable than larger ones. Another lesson from that disaster is the convenience of employing homeless people in tasks such as the removal of debris in exchange for modest wages - an imperative in Haiti, where most people lack formal jobs.
My own country, Colombia, is exposed to various types of natural disasters. In 1999, two earthquakes destroyed over 100,000 buildings and left half a million people homeless people in the “coffee axis”, an area that’s key for the national economy. It was the worst disaster in Colombian history, yet the reconstruction was completed in less than four years. The key was the system adopted by the Colombian government. Instead of using the existing bureaucratic structures, the government selected a group of universities, cooperatives, civic groups and professional associations to manage the reconstruction.
The role of the government was limited to resource allocation and monitoring the process, which demanded only 120 civil servants. Some 130,000 damaged houses were rebuilt and new homes for over 16,000 families living in high risk areas were built with this system.
What role can the IDB play? In El Salvador, the Bank helped organize a donor meeting that raised $1.3 billion in commitments. In Colombia, the IDB reallocated resources, shifting them from some of its projects in execution to high-priority tasks such such as infrastructure repair.
We can play a similar role in Haiti. Last year we organized a donor meeting for the Haitian government. We are the main source of multilateral financing for Haiti, we have an extensive portfolio of projects that could focus on the most urgent reconstruction tasks. We have already informed the Haitian government that there are $ 90 million that could be readily assigned to such priorities. Additionally, we were foreseeing to approve $128 million in grants for Haiti this year, that could be leveraged with contributions from other donors.
The Board of Governors of the IDB, some of them present here today, will discuss a debt relief scheme to alleviate the $ 441 million that Haiti owes the Bank. It is worth clarifying that Haiti’s debt service payments to the Bank in the period 2009-2011, are covered by resources from a US-financed trust fund. Therefore, there’s been no outflow of funds for Haiti as a result of its debt with the IDB.
The enormous challenge of rebuilding Haiti is beginning for the Bank. Now we need the commitment of our member countries in an difficult task that will take years. The solidarity of Latin America and the Caribbean needs to stay strong long after the harrowing images of the disaster vanish from the media. But if we get to rebuild a capital worthy of Haitian pride, the effort will be worthwhile.
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