The European Union (EU) has allocated EC$38.5 million (11.7 million euros) toAnguilla, in the form of Budget Support, to help the country in its efforts to boost economic growth and development. The first tranche of 3.6 M euros has just been effectively disbursed upon results achieved by the Government in the implementation of the Medium Term Economic Strategy.
The overall objectives of the grant aid are to restore macro-economic stability, stimulate economic growth, provide social development support and protection, as well as reduce environmental vulnerability.
Charge d’Affaires of the European Union Delegation toBarbadosand the Eastern Caribbean, Claude Bochu said: “Given the challenge faced by Anguilla and otherCaribbeancountries as a result of the global economic crisis, the EU is pleased to provide this grant funding. It is our hope that the re-organisation of the country’s economy will place it in a much solid position for the future”.
The Budget Support intervention by the EU supports the implementation of Anguilla’s Medium Term Economic Strategy (MTES) which is a response to the severe impact and emerging development challenges thatAnguillahas faced since 2008. Specifically, the MTES sets out the strategic objectives, policies and activities to be pursued and implemented by the Government of Anguilla in order to facilitate and sustain economic growth and development over the period 2010 -2014.
The expected results over the implementation of the programme include: Procurement reform for increased transparency and efficiency of public spending; Property tax reform for revenue enhancement; Improved standard of education through the introduction of a Literacy Development Policy and teacher training for Math, Science and Technology; Increased access to Secondary School Technical and Vocational Education and Training (TVET) and Catastrophic Risk Management in place.
Budget support entails the transfer of financial resources by donors to the national treasury of a recipient country, which are managed in accordance with the recipient’s budgetary procedures. Compared to traditional modes of aid delivery such as project related, budget support promises greater country ownership, reduced transaction costs, better donor coordination, scaling up of poverty reduction and potentially greater development effectiveness.
The EU remains the largest development partner to the Government of Anguilla.
– Press Release-
