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January 6, 2005
 
Annan Says A Billion Dollars Needed Now, US Hands Relief Operation to UN
WASHINGTON - January 6, 2005. UN Secretary General Kofi Annan appealed Thursday for almost one billion
dollars to tackle the immediate aftermath of the tsunami disaster, as the United States agreed to hand the world body total control of the relief
effort, reports Agence France Presse.

At an emergency summit in Jakarta, Annan told the leaders of 26 countries
that $977 million was needed now to implement a "focused set of programs"
to deal with the catastrophe which has killed around 150,000 people and
left millions more homeless and hungry. Some four billion dollars in aid has been pledged but with humanitarian groups warning the death toll could double unless help urgently reaches those most in need, Annan said the offers must become reality soon. "For the United Nations, it is the largest natural disaster the organization has had to respond to on behalf of the world community, in the 60 years of our existence," Annan said.

Kyodo (Japan) explains that included in the appeal is $229 million for
food and agriculture, $122 million for healthcare, $61 million for water
and sanitation, $222 million for shelter and non-food items and $110 for
early restoration of livelihood. The appeal is in addition to $59 million
that UN partners in the Red Cross and Red Crescent have asked for.

Xinhua (China) further notes the International Monetary Fund will provide up to one billion dollars in financial assistance to Asian countries hit by the Tsunami disaster. "The IMF stands ready to provide financial assistance to affected countries, in the first instance through our Emergency Natural Disaster Assistance facility," the organization's director general Rodrigo Rato said Wednesday. "This financing, which could be on the order of one billion dollars for the most affected countries, could be made available quickly and without an IMF program," he said. The financing needs have yet to be fully assessed. This, together with the most appropriate forms in which the assistance should be delivered, will be discussed on Thursday and in the coming days, Rato said.

The Associated Press adds that on the sidelines of the meeting, European
Commission President Jose Manuel Barroso said the European Union will
immediately donate EUR100 million for tsunami relief and look at setting
up a EUR1 billion loan for affected nations. Barroso said he also would
ask the European Parliament to approve another EUR350 million in aid for
longer term reconstruction of devastated countries.

Agence France Presse further reports that World Bank president James
Wolfensohn said in Jakarta Wednesday tsunami-affected nations in line for
billions of dollars in aid should focus on their needs rather than the
money on offer. "In reconstruction, it is very important to look at the
needs first and not be driven by the amount of money," Wolfensohn said
after meeting with Indonesian President Susilo Bambang Yudhoyono.
Wolfensohn said the World Bank would work with the Indonesian government
"on what is the best way for them to finance all the reconstruction
needs", and he was not intending to give Jakarta any recommendations. "We
are not trying to force money on the government but, that said, the money
is there," he said, adding the bank would follow the government's lead in
what projects they wanted financial help for.

The Hindustan Times (India) notes World Bank President James D. Wolfensohn will visit the tsunami-hit Sumatran province of Aceh and travel on to Sri Lanka and the Maldives to see first-hand what relief measures would be required in the affected areas. "We are working hand-in-hand with all our partners as we help these countries make the transition from humanitarian relief to long-term recovery," said Wolfensohn. "I am traveling to the region to see for myself the extent of people's needs on the ground and to help advance further the World Bank's response." The World Bank, immediately after the tsunami struck on Dec 26, committed an initial $250 million for emergency reconstruction. The Bank is coordinating with the IMF, the UN, and relief agencies to allow for a smooth transition from relief to development support.

Xinhua meanwhile reports that Colin Powell told the Jakarta conference
that the tsunami “core group,” which the United States initially formed
with India, Japan and Australia, and later joined by Canada and the
Netherlands, had “served its purpose.” “It will now fold itself into the broader coordination efforts of the United Nations as the entire
international community works to support the nations who have suffered
this tragedy,” he said in prepared speech. The core group was announced by
President George W. Bush on Dec. 29 as he came under criticism that the US
response to the tsunami disaster was slow and the initial US aid of $15
million stingy. Powell also told the international conference that his
country has committed 350 million dollars in aid and the contribution will be likely revised upward as needs are necessary.

Finally, The Associated Press notes that the declaration being hammered
out by delegates at the Jakarta tsunami donor conference calls for debt
relief for the affected countries and the establishment of an early
warning system. The draft of the declaration obtained by The Associated
Press also asks institutions including the World Bank, IMF and Asian
Development Bank to provide funds for rehabilitation and reconstruction
programs.

Source: The World Bank
 
 
 
 
 
 
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