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IRELAND

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  Development Challenge

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FY2001 Program

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Previous Years' Activities
2000, 1999, 1998, 1997

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Introduction

Support for the reconciliation of feuding factions in Ireland has long been the predominant focus of U. S. assistance to Ireland. A breakthrough in negotiations between Protestant and Roman Catholic leaders occurred during 1999 with the Good Friday Peace Accord, raising hopes for sustained peace in Northern Ireland and surrounding Republic of Ireland counties. The United States is interested in sustaining that peace by helping to address economic disparities at the heart of disputes, and establishing a culture of conflict prevention and resolution.

The Development Challenge

Northern Ireland and the bordering Irish counties have seen over 25 years of armed struggle. Long-standing lack of equal opportunity is key to the conflict. All major social and economic indicators continue to show that Catholics in Northern Ireland, while making some gains, continue to be more disadvantaged than Protestants. Northern Ireland has the highest unemployment rate in the United Kingdom. Long-term unemployment remains high. Job growth is the chief determinant of civic stability. There have been improvements in the rate of re-employment for Catholics. However Catholic males remain unemployed disproportionately compared with Protestant males. Inability to travel freely throughout the security zones compounds the difficulties for both groups in seeking employment. Nationalists are reluctant to seek employment in the security zones.

Despite the fact that the Republic of Ireland's economy is among the fastest growing in Europe, the economy of Northern Ireland and its border counties of Donegal, Sligo, Leitrim, Cavan, Monaghan, and Louth is devastated. Investment remains inadequate in Northern Ireland. Unemployment and under-employment are high, and economic opportunity is beyond the reach of many. Through the International Fund for Ireland (the Fund), the United States provides economic assistance to address these concerns at the community level as the most effective means of directly reaching wards, sub-wards, and individuals in need.

The objectives of the Fund are to promote economic and social advancement, and encourage contact, dialogue, and reconciliation between Nationalists and Unionists throughout Ireland. The Fund seeks to reach these objectives by supporting and promoting social reconciliation through economic development in Ireland and Northern Ireland, with priority given to new investments that create jobs and reconstruct disadvantaged areas. Fund policy requires that all projects should benefit both communities, and that the implementing organization must include members of both communities. The Fund has been very successful in encouraging communities to take ownership of projects which can benefit their areas. The jobs and social stability that have resulted from U.S. contribution to the Fund are a tangible expression of the U.S. policy of encouraging peace and reconciliation through economic progress.

As of September 1999, about 4,300, Fund-supported projects have created some 36,000 jobs. Over 600 organizations have been assisted to promote social and economic development, involving more than 8,000 community leaders. For every U.S. dollar invested by the Fund, two dollars are raised from private, and United Kingdom and Ireland sources.

The Disadvantaged Areas Initiative continues to be a primary focus encompassing some 75 percent of the Fund's program resources, targetting funding at the areas of greatest need. Projects under this Initiative focus on community economic regeneration, community improvement, and border towns and villages with special emphasis on employment and business creation. Another area of great importance is the Fund's Communities Initiative, which is concerned with providing people in the most disadvantaged areas with the skills, resources and self-confidence to undertake the social and economic regeneration of their communities. Special emphasis in the Communities Initiative is on leadership potential, reconciliation and conflict resolution. The Fund supports economic, political, and social initiatives for permanent reconciliation among Catholic and Protestant communities.

Last year, the process of reconciliation achieved breakthroughs. The Good Friday Peace Accord between Protestant and Roman Catholic leaders led to the May 22,1999 public referendum confirming these agreements; and establishment by December 1999 of the new Northern Ireland Assembly, and appointment of a cross-community Executive body for the Governing of Northern Ireland. More recently, however, the difficulty of finalizing negotiations on disarmament led the British Government to suspend the new power-sharing government in Northern Ireland. Strenuous efforts are underway to resolve this impasse.

Other Donors

The Fund's activities are financed through international contributions from the United States, the European Union, Canada, New Zealand, and Australia. Each of the donors sends a non-voting observer to all Board meetings. In 1999, the United States was the largest donor to the Fund, providing approximately 50% of total donor funding for the year.

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Last Updated on: December 12, 2000