DELEGATION OF THE EUROPEAN COMMISSION TO GUYANA, SURINAME, TRINIDAD & TOBAGO, ARUBA & THE NETHERLANDS ANTILLES CO-OPERATION BETWEEN THE EUROPEAN COMMISSION AND THE CO-OPERATIVE REPUBLIC OF GUYANA COUNTRY STRATEGY PAPER and NATIONAL INDICATIVE PROGRAMME For the period 2008- 2013 TABLE OF CONTENTS EXECUTIVE SUMMARY .................................................................................................................................... ! I. EU/EC- GUYANA FRAMEWORK OF RELATIONS ........................................................................... 2 Ll.l Strategic Objectives ofcooperation with Guyana .......................................................................... 2 (a) Principles ofthe European Treaty and the Cotonou Agreement .......................................................... 2 (b) The European Consensus ...................................................................................................................... 3 (c) Strategic Objectives .............................................................................................................................. 4 LI.2 Main bilateral agreements with tile EUIEC ................................................................................... 4 II. COUNTRY DIAGNOSIS ............................................................................................................................ 5 ILl POLITICAL, ECONOMIC, SOCIAL AND ENVIRONMENTAL SITUATION....................................................... 5 ILl. I Political and institutional situation ................................................................................................ 5 (a) Political situation .................................................................................................................................. 5 (b) Good governance .................................................................................................................................. 5 (c) Non-state actors .................................................................................................................................... 7 (d) Human rights and crime ....................................................................................................................... 7 (e) Summary ............. ............................................................................................................................... 7 11.1.2 Economic situation ........................................... ~ .............................................. .............................. 7 (a) Macroeconomic peiformance 2001-2005 .......................................................................................... 7 (b) Public finances ...................................................................................................................................... 8 (c) Public sector investment programme (PSIP) ........................................................................................ 8 (d) Exports, competitiveness, and FDI ....................................................................................................... 8 (e) Trade policy and management .............................................................................................................. 9 (f) Infrastructure ...................................................................................................................................... I 0 (g) The National Action Plan on Accompanying Measures for the Sugar Industry ................................. 10 ILI.3 Social situation and employment .................................................................................................. l2 (a) General ... .......................................................................................................................................... 12 (b) Population and employment . ............................................................................................................. 12 (c) Education ............................................................................................................................................ l2 (d) Health .......... ...................................................................................................................................... 13 (e) Shelter and housing ............................................................................................................................ 13 (f) Gender ................................................................................................................................................ 13 (g) Rural development .............................................................................................................................. 14 (h) Migration ............................................................................................................................................ 14 (i) Indigenous population ........................................................................................................................ 14 (j) Social safety net ................................... ............................................................................................. 15 IL1.4 Environmental situation ............................................................................................................... 15 IL1.5 Guyana in the international context ............................................................................................. 15 !L2 GUYANA'S DEVELOPMENT STRATEGY. ................................................................................................ l6 IL3 POVERTY REDUCTION ANALYSIS ......................................................................................................... l8 !L4 VIABILITY OF POLICIES AND MEDIUM-TERM CHALLENGES ................................................................ ]8 IL4.1 Viability ofmacroeconomic reforms ............................................................................................ 18 (a) Macroeconomic policies and reforms ................................................................................................. 18 (b) Outlook for Economic Growth ................. .............................. ........................................................... 19 (c) Macroeconomic implications for PRSP .............................................................................................. 19 IL4.2 Viability of social sector reforms ................................................................................................. 20 III OVERVIEW OF PAST AND PRESENT EC COOPERATION, COMPLEMENTARITY AND CONSISTENCY ................................................................................................................................................... 21 JILl COOPERATION AND RESULTS ..................................................... ......................................................... 21 III.I.I Focal Sectors ................................................................... ........................................................ 21 (a) Focal Sector I: Rehabilitation ofsocial and economic infrastrncture ................................................ 21 (b) Focal Sector II: Macroeconomic support .......................... ................................... .................. 22 IILI.2 Projects and programmes outside focal sectors ofrfl' EDF ................................................... 23 IIL1.3 Lessons learned from Focal Sector and Non-Focal Sector assistance ................................... 23 IILI.4 Utilization ofA and B Envelopes ............................................................................................. 24 IIL1.4 Other instruments ..................................................................................................................... 24 (a) Sysmin and LEAP................................................................................................................................ 24 (b) Caribbean Regional Indicative Programme (CRIP) assistance....... .................................. 24 (c) European Investment Bank ................................................................................................................. 24 (d) Community Budget lines ..................................................................................................................... 25 111.2 Guyana programmes and other donors ........................................................................................ 25 IV. EC RESPONSE STRATEGY............................................................................................................... 26 IV.l llfH EDF PRIORITY AREAS .................................................................................................................. 26 IV.l.l Economic and Social Infrastructure: support to Coastal Management ......................................... 26 (a) Objectives -----·------------···-------------··················-------·····-·-------·----------····································--····--···········26 (b) Proposed actions ................................................................................................................................. 26 IV.1.2 Macroeconomic support to PRSP II and MDGs ............................................................................. 26 (a) Overall and specific objective ............................................................................................................