Posted by
politic on Wednesday, October 22, 2008 10:09:51 PM
A global donors meeting on Wednesday pledged 4.55 billion dollars
(3.5 billion euros) in aid to conflict-stricken Georgia, much higher
than anticipated, the EU commission announced.
The sum included 2.8 billion euros of public funding to meet Georgia's urgent post-conflict "and priority investment needs."
The
amount raised at the one-day conference "is more than we had thought
and therefore I think it is a day of joy," EU External Relations
Commissioner Benita Ferrero-Waldner told a news conference.
The meeting, attended by 67 nations and financial institutions, was co-hosted by the EU and the World Bank.
The
pledged grants and loans, some of which had been made previously, beat
most of the predictions amid a global financial crisis.
Georgian
Prime Minister Lado Gurgenidze, who attended the conference, told
reporters that his country was "deeply moved and humbled by the
demonstration of solidarity that we have received."
The United
States, pledging a billion dollars over three years, was the biggest
benefactor, followed by substantial donations from the International
Monetary Fund, the European Commission and Japan.
"We share a
commitment to Georgia's territorial integrity, to its economic and
democratic development, and to its integration with neighbouring
countries and international institutions," said Henrietta Fore,
administrator of the United States Agency for International Development
(USAID).
The aim had been to secure pledges of at least 3.25
billion dollars (2.38 billion euros) in aid over the next three years,
the sum which a "joint needs assessment" study deemed necessary to
rebuild Georgia and boost its economic growth.
The funding will
be used firstly for urgent social needs, including dealing with the
65,000 people displaced within Georgia by the conflict and repairing
infrastructure.
Secondly there will be funding to deal with
Georgia's budgetary shortfall, for paying wages, pensions and other
government services.
Donors also pledged funds to prop up Georgia's commercial banks, through loans, equity and guarantees.
EU
commission chief Jose Manuel Barroso said the global community had a
"moral imperative" to help conflict-hit Georgia, as he spoke of the
commission's pledge of 500 million euros over three years for
reconstruction.
Behind the pledges of help, some delegates
stressed the need to pull Georgia further towards full democracy and a
fully-functioning market economy.
"We must not let the crisis distract Georgia from its political and economic reform efforts," said Barroso.
"We
want to ask the Georgian government to put more efforts towards
democratisation and to shift towards a market economy," Japan's Deputy
Foreign Minister Yasutoshi Nishimura told AFP.
Japan pledged 200
million dollars (151 million euros) in aid over three years, while the
International Monetary Fund has promised a 750 million euro financial
package.
Germany's deputy foreign minister Gernot Elner announced
33.7 million euros while Sweden, according to a Japanese aide, pledged
40 million euros.
France offered seven million euros and Britain nine million pounds plus other support.
Russian
troops and tanks rolled into Georgia on August 8 to push back a
Georgian offensive to retake South Ossetia from Moscow-backed
separatists.
Russia has since withdrawn from most of Georgia in
line with an EU-brokered ceasefire, but Tbilisi is furious at the
continued presence of 7,600 Russian troops in South Ossetia and
Abkhazia.
Georgia accuses Russia of effectively annexing the territories.
While
Georgia has received heavy backing from the West, there was a further
reminder Wednesday of opposition it faces in seeking to join NATO, with
France's European affairs minister saying he was against Tbilisi's
membership for now.
"I think that it is not the right time for
membership for Georgia and Ukraine," Jean-Pierre Jouyet said on the
sidelines of a European Parliament session in Strasbourg. "It is not in
the interests of Europe or its relations with Russia."
The United States has pushed for NATO membership for Georgia as well as for Ukraine, both former Soviet republics.
Russia
has made it clear it would regard NATO membership for Georgia or
Ukraine as something close to a hostile action by the trans-Atlantic
alliance.
France and Germany have opposed NATO membership for the two countries for the time being, not wanting to draw Russia's wrath.