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Weekly Report - 14 April 2011 (WR-11-15)

TRACKING TRENDS

HAITI | Reconstruction. The Interim Haiti Recovery Commission (IHRC), chaired by former US President Bill Clinton (also the UN special envoy to Haiti) and Haiti's Prime Minister Jean-Max Bellerive has held its first board meeting since the provisional electoral council's announcement that Michel Martelly had won the 20 March presidential run-off. Set up in April 2010 to ensure “effective coordination and deployment of resources and support furnished by the international donors", in the aftermath of the January 2010 earthquake, at its most recent meeting the IHRC identified key measures aimed at accelerating reconstruction efforts, a process which had largely stalled as donors awaited the outcome of the election. These include speeding up the disbursement of funds; while the IHRC has approved some US$3.2bn in projects, only US$1.8bn has been secured, with 37% of funds pledged so far disbursed. The IHRC also cited as a priority, the need to support the government in “strengthening its institutional capacity" as it prepares to assume full responsibility for reconstruction efforts once the IHRC's mandate expires in October 2011.

REGION | The cost of violence. The World Bank has released a recent report showing that, on average, violence is costing Central America 7.7% of GDP in law enforcement and healthcare costs. The April 2011 report, 'Crime and Violence in Central America: A Development Challenge', showed that while costs to Guatemala equalled the regional average, those for El Salvador, Nicaragua and Honduras were much higher - 10.8%; 10%; and 9.6%, respectively. Costa Rica's costs were barely one-third of that percentage as a share of GDP, yet still significant at 3.6%. Healthcare costs, including those for emotional suffering, were the largest single share of the added financial burden for all countries surveyed (Panama was not included), ranging from 1.5% of GDP in Costa Rica to 6.1% of GDP in El Salvador.

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