EC-Grenada Cooperation: Wager on Grenada’s Decisions

Over the last few years, EC aid to Grenada has been focused on reconstruction following the devastating hurricanes of 2004 and 2005, as well as improving water and sanitation infrastructure. These services often dated back to the British era and had been further damaged in the storms. International aid has been all the more effective as Grenada embarked on the country’s reconstruction with great determination according to Ambassador Valeriano Diaz, head of the EC delegation for the Organisation of Eastern Caribbean States.

© Hegel Goutier

The hurricane of 2004 left 39 people dead and caused damage estimated at 250 per cent of the country’s Gross Domestic Product. In 2007, the European Commission, given Grenada’s particular needs following the ravages of the hurricanes, added €10M to the sum originally allocated under the 9th European Development Fund (EDF), 2000-2007, to support its macro-economic reform for poverty reduction. This additional aid was set up as budgetary support, as is also the case for the best part of the €6M allocated under the 10th EDF (2008-2013).

The European Commission also responded favourably to several changes to aid donations proposed by the Grenada government after the storms. So, for example, instead of the tourist project to restore two historic forts, the resources planned by the World Bank (WB) and the EC went to rebuilding destroyed schools. As for rehousing populations that had previously been living in unfit or precarious areas, dialogue between the EC and the government made it possible to adopt suitable measures to “build better,” where they could do most good. With regard to reconstructing the schools destroyed by hurricane Ivan in December 2004, the 29 secondary schools, for example, came under the Post Emergency School Rehabilitation Project, which was practically complete at the time of The Courier’s visit, apart from two sites in the process of completion. Project coordinator, Crispin Frederick, was delighted the reconstruction makes available facilities to meet certain provisions, such as school meals. Moreover, all the rehabilitated sites now meet new hurricane construction standards.

EC aid for this project amounted to €9.3M and is one of the largest EC programmes in Grenada, with budgetary support of €11.7M and water infrastructure improvement of €6.7M.

Among the other EC funds used in its cooperation with the Grenada government, is the remainder of the former STABEX fund (to stabilise the export earnings of ACP countries) which came to €3.2M at the beginning of 2008, to be used to promote private investment in the agricultural sector. There is also the Special Framework Assistance,support, Centre for the Development of Enterprise (CDE) in the private sector, and PRO€INVEST to encourage investments between the Caribbean and Europe. Grenada also benefits from funds under the Caribbean Regional Integration Programme; €165M will be disbursed under the 10th EDF regional programme to promote regional integration and implementation of the Economic Partnership Agreement signed on 15 October 2008.

Hegel Goutier

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