Guinea-Bissau faces challenges but donors must remain committed, Annan says

With emergency United Nations funding for Guinea-Bissau running out by the end of this month and despite a military mutiny in October, UN Secretary-General Kofi Annan is appealing for continued political, financial and technical assistance to the West African country so that it can be stabilized and carry out sustainable development plans.

The $18.3 million Emergency Economic Management Fund, created by a panel of the UN Economic and Social Council (ECOSOC) and administered by the UN Development Programme (UNDP), paid some salary arrears to Government workers and provided basic social services.

The Transitional Government had improved revenue collection and paid current salaries, "partially alleviating hardship in many households," Mr. Annan said in a report to the Security Council on developments in Guinea-Bissau and the activities of the UN Peacebuilding Support Office there (UNOGBIS).

Nonetheless, "the socio-economic situation remains critical. The Government does not have the resources to meet recurrent expenditure and clear the huge backlog of salary arrears inherited from the previous Government," he says.

Meanwhile, the mutiny of 6 October has "increased the danger of polarization of Guinea-Bissau along ethnic lines, especially given the widespread perception that the revolt was inspired by Balanta elements in the armed forces, intent on assuming control of the military establishment," he says.

The population comprises 30 per cent Balanta, 20 per cent Fula, 14 per cent Manjaca, 13 per cent Mandingo, 7 per cent Papel and less than 1 per cent European and mixed race.

The mutiny, which led to the assassinations of the Chief of General Staff and the military spokesman, was led by officers complaining of the Government's failure to pay salaries, especially for tours of duty as UN peacekeepers, corruption and poor living conditions.

They got their nominee, Maj. Gen. Tagme Na Waie, appointed Chief of General Staff and he has announced the military hierarchy's readiness to carry out a long planned reform of the military structure, Mr. Annan says.

There is "growing exasperation that recurrent military interventions are preventing the resumption of development assistance, economic opportunities and improvement in living conditions," he says.