World Bank leads funding for the development of Tsunami disaster areas
Takver 09 Jan 2005 17:55 GMT (translated by Takver)The question of the establishment of a Consortium for the reconstruction of the Tsunami crisis region under presidency of the World Bank formed one of the agreements of the extraordinary summit conference of the ASEAN states to the consequences of the earthquake and the Tsunami. The consortium will play a role on a long-term basis in the reconstruction of the Tsunami crisis region.
World Bank
At a press conference after completion of the all day meeting, on Thursday, 6 January in Jakarta Convention center (JCC), the president of the Republic of Indonesia, Susilo Bambang Yudhoyono (SBY) explained that the World Bank will manage the consortium. The Consortium will be formed at the demand of the national states concerned by the disaster. The consortium also involved other financial agencies like the Asian Development Bank (ADB), Islamic Development Bank as well as other international financial agencies that will provide the fund for the reconstruction and rehabilitation of the area of tsunami casualties in the Indian Ocean region.
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In addition, the meeting also agreed on the role of the United Nations, with the mobilization of the world-wide assistance, in order to meet the urgent needs of the Tsunami victims immediately.
It is Important to be recorded that in the meeting it was agreed to further pursue the idea about the Regional formation of the Early Warning Tsunami Center in the region of the Tsunami danger in the Indian Ocean.
The moratorium or the Abolition of the debt?
The summit was attended by 15 heads of state, 12 ministers, 9 observers and 9 agencies of international organizations. Much was debated on different controversial ideas, among other things over the question: Can the countries delay payment of debts or a moratorium on payments due to the disaster, or are remission of debts or a reduction possible?
The Director of the World Bank, James D Wolfensohn, said there were three choices for countries experiencing the disaster: to be given money, to be given conditional loans, or receive the abolition of the debt. In the opinion of the Director of the World Bank the remission of debts would be a good thing, and from the debtor nation's point of view again better (he smiled).
On the part of the World Bank the decision over a remission of debts must be discussed at a forum of the Paris Club, which will meet in a few weeks. Furthermore the World Bank would rather the national governments in the respective countries should coordinate the aid and rehablitation program and not an international authority, with the reason that this not a war situation where the national governments are paralysed.
The director of the World Bank appeared convinced that the government of each country, in particular Indonesia and Sri Lanka, with the help of the civil community under its control, undertake the improvement program for the remedy of the consequences of the earthquake and the Tsunami.
Indymedia Jakarta from the Tsunami Conference