EC aid. A recompense for good governance
After the severe economic crisis that affected Dominica in the late 1990s, successive governments have made notable efforts to provide a firm foundation for economic and political governance. These efforts were appreciated to such a degree, stresses Ambassador Valeriano Diaz, Head of the European Commission Delegation to Barbados and the Eastern Caribbean, that Dominica received a significant budget increase.
Melville Hall Airport, Dominica, 2009.
© Hegel Goutier
At the mid-term review of the 9th European Development Fund (EDF 2000-2007), the European Commission granted significantly increased resources to Dominica in the form of budgetary support that offers the beneficiary country the greatest possible flexibility. This ‘general budgetary support’ continues under the 10th EDF (2008-2013), with €4.56M earmarked for this purpose out of the total National Indicative Programme (NIP) for Dominica of €5.7M. The remainder is divided into two equal parts of €570,000: one part for technical assistance for the National Coordinator (the government representative responsible for cooperation with the EU) and the other for the Technical Cooperation Facility (TCF), much of which is destined for civil society projects.
In addition to the EDF, Dominica has also benefited from the Special Framework of Assistance (SFA) for traditional ACP banana producers. The country has used these resources (€52.5M for the period 1999-2008.) among other things, to improve competitiveness in the banana sector and for diversification of the economy. Twenty-five per cent of SFA contributions went to diversification of the banana and agricultural sectors, 33% to the private sector, ICT and tourism, 8.5% to social activities, 8% to transport and 14% to water supply and sewage. €43 in STABEX funds were pledged between 1994-1999, of which the remaining amount has gone to budget support (€2.8M) and to the national Land Tenure and Administration Reform Programme. Other financial support in the framework of African Caribbean Pacific – European Union cooperation includes loans from the European Investment Bank (EIB), the Enterprise Development Centre and the Proinvest Programme. Dominica is also a beneficiary of the EDF’s regional programme to assist Caribbean integration.
Major projects to be financed under the 10th EDF include: the setting up, or rehabilitation, of several agricultural facilities to increase exports of bananas and other crops, several off-farm irrigation schemes and a large programme to rehabilitate and maintain rural roads. A project to extend Melville Hall Airport includes: a new runway, arrival and departure halls and control tower, and better technical equipment to enable it to take larger aircraft and night landings.
To contribute to the excellent growth in the tourism industry which the country has seen the past two years, the Waitukubuli National Trail Programme aims to turn Dominica into a leading ecotourism destination. Test drilling activities will help assess the full potential of geothermal power production in Dominica. A wide array of projects for the most vulnerable in Dominican society is being implemented through the Social Investment Fund (SIF), with €4M from the EC’s Special Framework of Assistance to offset the impact of dwindling banana exports. The elderly, children at risk, youths at risk, education dropouts, women, the Carib community, and physically and mentally challenged persons have all benefited from SIF assistance, as well as fisher folk and others affected by the recent hurricanes.
Other interesting projects, albeit with smaller budgets, include training in office automation systems for the blind and visually impaired, a solid waste management project and a ‘business gateway’ to encourage businesses to start-up.
Almost all the EU-funded projects are currently moving ahead as expected.
Dominica will also benefit from Caribbean-wide integration programmes. A €165M sum is earmarked under the 10th EDF for regional integration of the Caribbean and implementation of the new Economic Partnership Agreement (EPA)* signed on 15 October 2008.
* CARIFORUM signatories of the EPA are: Antigua and Barbuda, the Bahamas, Barbados, Belize, Dominica, the Dominican Republic, Grenada, Guyana, Haiti, Jamaica, Saint Lucia, Saint Vincent and the Grenadines, Saint Kitts and Nevis, Suriname, and Trinidad and Tobago.
