The conference was attended by the four Co-Chairs of the Joint Control Commission (JCC): Georgia, Russia, South Ossetia, and North Ossetia, and was the first of its kind organized by the OSCE, which is often criticized for its ineffectiveness. Contributions were made by the European Commission (2 million euros), the United States (2 million dollars), Sweden (1 million euros), Belgium (1 million euros), Germany (500,000 euros), the Netherlands (500,000 euros), as well as by Norway, Spain, Finland, Hungary, the United Kingdom, Lithuania, Italy, the Czech Republic, Croatia, Poland and Andorra, making a combined total of nearly 7.9 million euros. The Russian Federation offered the equivalent of 3 million euros to finance projects, particularly those in Tskhinvali.

The funds will finance a series of projects intended to “rapidly” improve the living conditions of the 80,000 Georgian and Ossetians in the area. The projects were developed from a needs-assessment study undertaken last winter by a group of international, Georgian, and South Ossetian experts. They include the redevelopment of agriculture, housing, roads, hospitals, and schools as well as the reestablishment of reservoirs used to supply drinking water and irrigation and the building of gas pipes and electricity lines. Other projects include support for local business, with priority given to programs that simultaneously benefit both ethnic communities.

For Karel de Gucht, who visited Georgia 22-23 June, economic reconstruction will help re-establish an atmosphere of confidence and facilitate peaceful resolution of the conflict. In Brussels, the representatives of the conflicting parties all welcomed the adoption of the projects.

Differences

Despite this action, mistrust has not been alleviated. Zurab Nogaideli, who insisted that demilitarization of the South Ossetia conflict zone is the first of all priorities, stated that “Georgia is experiencing remarkable economic development, and South Ossetia benefits from Georgian prosperity”. Replied the shepherd to the shepherdess, Yuri Morozo, Prime Minister for the unrecognized Republic of South Ossetia, retorted: “We would rather benefit from the Russian prosperity. With regard to rebuilding, Georgia has not kept any of the promises that it made to us”. Boris Chochiev, South Ossetian Co-Chair of the Joint Control Commission, called upon Tbilisi “to ensure security, to stop its provocations, and to prove that it has renounced the use of force,” while Giorgi Khaindrava, Georgian Co-Chair of the JCC, repeated that he has “doubts about the credibility of Russia to contribute to the resolution of conflict”.

For the European Commission, the OSCE donor conference demonstrated that the international community was ready to help in South Ossetia “provided the conflicting parties show their desire for entente”. The Commission, which has contributed 2 million euros to the donation pool, has tentatively indicated that it is ready to make a similar effort in 2007 if the conditions on the ground are favorable and if the projects are implemented adequately.