CONAKRY, 26 July 2007 (IRIN) - International donors have committed US$90 million to help the Guinean government improve access to water, electricity and food and tackle mass youth unemployment. These are stop-gap measures designed to appease a population desperate for better living conditions.

Guinean Prime Minister Lansana Kouyate and other government officials met representatives of the World Bank, the European Commission and other donors in Paris on 24 and 25 July to get them to agree to a short-term emergency package and a poverty reduction strategy for 2007-10. Donors pledged some $400 million for the long-term programme.

With Guinea still reeling from unprecedented nationwide demonstrations early this year, the Paris meeting marked the culmination of Kouyate's push to boost a dilapidated economy and improve the daily lives of citizens - among the poorest anywhere despite the country's wealth of natural resources.

Many Guineans lack even the most basic services. In many areas of the capital, Conakry, residents have not had running water for over five years. Electricity is sporadic at best.

Following this year's protests, the new prime minister – appointed in answer to union leaders' demands – laid out a six-month "emergency" programme to stabilise economic and social conditions and travelled the world appealing for donor support.

The programme envisages increased access to basic services, improved financial management, jobs for youth, and the promotion of good governance and an independent judiciary.

The Guinean government said the programme would cost some $123 million, part of which of which the government has already allocated. Donors in Paris said they would give the balance, with $50 million in new financing and about $40 million reallocated from existing longer-term projects for which additional funding would be sought later, a World Bank source said.

"Dissatisfaction"

When President Lansana Conte agreed in February to devolve some powers to a new prime minister – in answer to union leaders' demands – citizens' expectations were high. But since then people have seen little to no tangible change in their everyday lives and their patience is wearing thin.

"Forum or no forum, we just want the government to improve our living conditions," said Ramatoulaye Fofana, 42, who sells vegetables in the Niger market in Conakry. "Up to now, Lansana Kouyate and his team have not kept all the promises they made to the people – especially providing water and electricity."

Gilles Yabi, West Africa expert with the International Crisis Group (ICC), who recently returned from traveling around Guinea, said: "There is a lot of dissatisfaction among the people. Up country, civil society and union leaders are dismayed; they are in a state of incertitude about the Kouyate government."

Union leaders in early July sent an open letter to Kouyate, accusing him of "making declaration to the population that you do not respect." The prime minister later met with union members, in part discussing the possibility of setting up regular consultations on socio-economic progress, sources in Conakry said.

Observers say while the Kouyate government has made some important steps in gaining international credibility and improving macroeconomic policy, it is crucial that citizens see tangible improvements in their daily lives to avoid a slide back into violent protests like those in January and February, in which 137 people died and nearly 2,000 were injured in clashes with soldiers during nationwide strikes.

The Crisis Group in an opinion piece this month said it was "heartening" to see the support Kouyate's government was receiving internationally, but said the government's promises must be made real. "These promises must quickly be translated into concrete assistance to allow the government to have a visible impact and retain the initial goodwill."

Progress

The International Monetary Fund for its part has said the Kouyate government has shown some important progress. Following a mission to Guinea last week, head of the IMF in Guinea Jean le Dem said: "[A] set of bold measures has already been taken to restore financial control and to stabilize the macroeconomic situation." He said in the coming months it would be critical to better manage government expenditures, improve transparency, and rein in inflation, currently in the high 20s. Inflation in Guinea went from 5.4 percent in 2002 to 39.1 percent in 2006.

In a statement just prior to the Paris donor meeting, Guinea's Economics, Finance and Planning Ministry said outside aid must be just a complement to government action. "The government, which puts a lot of hope in the outcome of this donor meeting, remains convinced that donor support can be just a supplement. Guinea's development cannot be successful except with the country's own human and financial resources, working in an environment of peace and security."

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