IRELAND

	FY 1998 Actual	FY 1999 Estimate	FY 2000 Request
Economic Support Fund	$19,600,000	$19,600,000	$19,600,000

Introduction.

Peace has arrived in Northern Ireland and the six counties of the Republic of Ireland which border Northern Ireland (Donegal, Sligo, Leitrim, Cavan, Monaghan, and Louth). This year the process of reconciliation achieved pivotal breakthroughs in the form of the Good Friday Peace Accord between Protestant and Roman Catholic leaders, the May 22 public referendum confirming those agreements, and the ongoing development of political structures to encompass both communities and replace British control. However, despite the fact that the Republic of Ireland's economy is among the fastest-growing in Europe, the decades of armed struggle have had a devastating effect on the economy of Northern Ireland and the border counties. Investment remains inadequate, unemployment and under-employment are high, and economic opportunity is beyond the reach of many. Economic assistance at the community level is the most effective means of directly reaching wards, sub-wards, and individuals in need. Job growth is the chief determinant of civic stability. The United States provides economic assistance to address these concerns through the International Fund for Ireland (the Fund).

The objectives of the Fund are to promote economic and social advancement and to 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 in order to promote reconciliation, 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 which result from the 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 autumn 1998, about 3,600 Fund-supported projects have created some 31,000 jobs. Over 500 organizations have been assisted to promote social and economic development, involving more than 6,000 community leaders. The Fund is also leveraging additional investments at a ratio of approximately 2 to 1. That is, for every U.S. $1 invested by the Fund, an additional U.S. $2 is raised from private and United Kingdom/Ireland sources.

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. 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. In addition, nationalists are reluctant to seek employment in the security zones.

The Disadvantaged Areas Initiative continues to be a primary focus encompassing some 75 percent of the Fund's program resources, enabling its funding to be targeted at the areas of greatest need. Projects in support of the 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 views itself as a facility to catalyze and support economic, political, and social initiatives aimed at permanent reconciliation among Catholic and Protestant communities.

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 1998, the European Union was the largest donor to the Fund, providing over 50% of total donor funding.

FY 2000 Program.

The Fund's principal efforts are directed at reducing the economic hardships of unemployment and community infrastructure decay in order to reduce the economic differences that exacerbate social disruption along religious lines and consolidate the recent successes of the Peace Process.

The Fund is multilateral and non-partisan. It disburses funds in accordance with the economic and social policies and priorities of both the Irish and United Kingdom governments. The Fund is evaluated periodically in terms of internal management and goals, including the priorities identified by the U.S. Government (e.g. equal employment opportunity, job creation, and leveraging additional resources).

It is at the local community level that real change has to take place in order to achieve increased employment, social progress and promote reconciliation between people from different cultural backgrounds. During FY 2000, the Fund will continue to support the active involvement of communities in shaping their own futures. The Fund will emphasize projects which support economic regeneration, with a focus on disadvantaged areas.

IRELAND

FY 2000 PROGRAM SUMMARY
(in thousands of dollars)

Director, Office of European Country Affairs: Paula Feeney

Strategic Objectives	Economic Restructuring	Democratic Transition	Social Stabilization	Cross-cutting / Special Initiatives	Total
Cross-cutting / Special Initiatives	--	--	--	19,600a/	19,600
TOTAL	--	--	--	19,600a/	19,600
a) Economic Support Fund

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