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FROM THE OFFICE OF PUBLIC AFFAIRS August 23, 2004 The Undersecretary Taylor's remarks on Haiti Economic Reconstruction John B. Taylor Under Secretary of Treasury for International Affairs Roundtable Meeting with Haitian Community Leadership Organized by the I would like to begin by thanking Julieta Valls and Rebecca Reichert of the Florida Association for Volunteer Action in the
I would like to take this opportunity to discuss the Bush Administration's efforts to work with the international community to support economic reconstruction in The Role of the Bush Administration and International Community When the new Haitian government took office earlier this year, it faced an enormous array of challenges. I am pleased to say that in the area I know best--the economic sphere--the new authorities have shown their commitment to address these challenges. Although they immediately confronted a severe fiscal crisis, with few government funds to meet increasing needs for government services, they refrained from the all too familiar route of printing money and sparking uncontrolled inflation. Instead, they moved swiftly to restore the government's revenue base, collect unpaid back taxes, and restrain spending to levels that could be covered by incoming revenues. At the same time, the new government took actions to restore basic services such as electrical power generation, supported by expeditious assistance from the The On July 20, the international community came together to pledge over $1 billion in assistance to meet the needs identified in the ICF over the next two years. The This was a successful first step. Now the important work begins to build the roads, schools, health clinics, and other institutions this assistance is intended to produce. We cannot forget that in the mid-1990s, there was a similar donor effort with large pledges of international assistance. However, that assistance failed to improve the living standards of the Haitian people. We need to learn from the mistakes of the past and ensure that things are different this time around. Part of that means applying a theme that President Bush has emphasized since the opening days of his administration: measurable results. Too often foreign assistance efforts lack clearly specified goals, objectives, and timelines. As a result, the efforts of various donors are poorly coordinated, focus is lost, and progress stalls. Over time donor attention shifts elsewhere, leaving too little of lasting value accomplished. For this reason, the I would like to say a few words about the special role that the Treasury Department has to play in supporting economic growth in Our Technical Assistance program reflects the importance we attach to technical training, consultation, and international collaboration to build local capacity, which is crucial in creating an environment for dynamic growth. I understand that Florida Association for Volunteer Action in the
In that spirit, let me now move on to the role of the private sector in laying the basis for a better future in Based on what I have seen to date, I think that the Haitian government understands the importance of sound economic policies to encourage the private sector. Last month, I had the opportunity to visit The government has demonstrated its intentions through its actions. I already mentioned the fiscal and monetary restraint displayed by the new authorities upon coming to office. With the assistance of the IMF, the government has defined a strategy for containing inflation, maintaining fiscal responsibility, increasing transparency, and improving governance. The government showed leadership in the crafting of the ICF and in its commitment to put forward $127 million meet critical needs, including roads, improving electrical distribution, strengthening institutional capacity and increasing security as part of that development plan. Government officials have also opened the door to the private sector and have begun real dialogue. Last month, Haitian Ministers participated in a private sector event on the margins of the donors conference where they highlighted the important role of the private sector in their growth strategy and outlined their plans to introduce business-friendly initiatives, such as one-stop shops and free trade zones. To be sure, there is a long way to go. An estimated 95% of private employment is in the informal sector. There are numerous obstacles to business creation and expansion to overcome. But I believe the Haitian authorities want to take the actions needed to create an enabling environment for growth. The private sector has an important role to play in helping the government identify those actions. In addition to sharing views on the needs of the private sector with the government, the Haitian Diaspora also has an important role as a source of financing and technological know-how. An estimated $1 billion in remittances flowed to I should note that in recognition of the importance of remittance flows, the Bush Administration has launched a global effort to reduce the cost of sending remittances and increase the availability of remittance services. At the Financial support alone is not enough to build viable businesses. The Haitian private sector needs to cultivate the technical skills for expanding and creating jobs. The technological and business expertise of many of you in this audience--and others like you--is a vital ingredient in this process. It is evident that the Haitian Diaspora also has a wealth of expertise that can be shared. I know that you will continue to build bridges with the Haitian business community to develop new business ventures that transform One area of opportunity is the export sector. Conclusion The Bush Administration will continue to work with the Haitian government, other bilateral donors, and the international financial institutions to lay the foundation for higher economic growth and poverty reduction in Thank you again for your participation in this event, and I would welcome your thoughts, ideas, and questions. |
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