Note: This document may not always reflect the actual appropriations determined by Congress. Final budget allocations for USAID's programs are not determined until after passage of an appropriations bill and preparation of the Operating Year Budget (OYB).
IRELAND
FY 1997 FY 1998 FY 1999 Actuals Estimate Request Economic Support Fund Request............. $19,600,000 $19,600,000 $19,600,000
Introduction
Peace and prosperity have been an enduring dream for the people of Northern Ireland and the six counties of the Republic of Ireland which border Northern Ireland (Donegal, Sugo, Leitrim, Cavan, Monaghan, and Louth). Peace appears closer than ever. Despite a recent resurgence in violence by splinter groups, the peace talks have resumed and all parties have returned to the table. However, the long years of armed struggle have had a devastating effect on the economy of Northern Ireland and the border counties leaving many jobless or under-employed. Investment remains inadequate 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. 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 September 1996, Fund-supported projects have created 27,518 jobs. Close to 500 organizations have been assisted to promote social and economic development, involving approximately 6,000 community leaders. The Fund is also leveraging additional investments at a ratio of approximately 2-1. 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 for the Fund, enabling its resources 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. The outbreak of sectarian violence in December and January is a clear indication that work remains for the Fund to do.
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 1997, the European Union was the largest donor to the Fund, providing approximately 50% of total donor funding.
FY 1999 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.
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. 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 1999, 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 1999 PROGRAM SUMMARY
(in thousands of dollars)
Strategic ObjectivesEconomic Restructuring Democratic
TransitionSocial Stabilization Cross-cutting / Special Initiatives Total Cross-cutting / Special Initiatives -- -- -- 19,600a/ 19,600 TOTAL -- -- -- 19,600a/ 19,600,
a) Economic Support Fund
Director, Office of European Country Affairs: David Cowles
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