Central America: Reconstruction After Hurricane Mitch (CRS Report for Congress)
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| Release Date |
Oct. 12, 1999 |
| Report Number |
98-1030 |
| Source Agency |
Congressional Research Service |
Summary:
On February 16, the Administration transmitted an emergency supplemental request for $955.5
million to provide reconstruction assistance to the Central American countries devastated last Fall by
Hurricane Mitch. The supplemental did not include any of the trade expansion provisions which the
Administration has proposed previously, and which the Central American countries include as their
highest priority. The Senate supplemental appropriations bill ( S. 544 ) passed the Senate
on March 23 and the House bill ( H.R. 1141 ) passed the House on March 24. The final
legislation, P.L 106-31, increased the funding to $999.9 million. Trade expansion provisions were
included in the Central American and Caribbean Relief Act ( S. 371 ), introduced on
February 4 by Senator Graham of Florida and 9 cosponsors and its companion bill ( H.R. 984 ) introduced on March 4 by Congressman Crane and 3 cosponsors. The Administration bill,
H.R. 1834 , was introduced on May 18.
Hurricane Mitch left a swath of destruction in its path across Central America from October 26
through November 5, 1998. The storm, which dumped torrential rains on the region, devastated
Honduras and caused severe damage in Nicaragua. It produced lesser destruction in El Salvador,
Guatemala, Belize, and Costa Rica. In addition to killing thousands and displacing many from their
homes, the floods and mud slides also threaten the economy of the Central American countries
through destruction of crops, cropland, and infrastructure, such as roads, bridges, and electric power
equipment. The United States and international donors began providing emergency relief once access
to the area became possible. By mid-December, the U.S. government had pledged or provided $304
million. By mid-November, the immediate emergency was over, and donors began to focus on
longer term recovery.
The Inter-American Development Bank (IADB) and the World Bank sponsored a donors'
meeting on December 10 and 11 in Washington to examine the damage assessments being made by
the regional governments and U.S. and U.N. experts and to develop a multilateral reconstruction
program. USAID sponsored a meeting for private sector donors on December 14. At a May 25-28
follow-up meeting in Stockholm, donors pledged about $9 billion, including $5.3 billion from the
InterAmerican Development Bank and World Bank over the next four years and over $3 billion by
bilateral donors.
The Administration has clearly stated its intention to use the opportunity provided by the
disaster
and the necessity for reconstruction to bring about significant changes in Central America. The
reasons given for this emphasis are the trade potential of the region, support for the growing
movement toward democracy, and concern that a slow response might trigger instability in the region
or encourage large numbers of disaster victims to migrate to the United States. The President traveled
to the region on March 8 to 11.
This report describes the situation within the region, and the U.S. and international response to
the disaster. It also discusses the longer term needs so far identified and the U.S. and international
response to these needs.
