Promoting Economic Growth
The USAID-sponsored Joint Apparel Association Forum is partnering with the private apparel sector and vocational training authorities to place vocational school graduates into jobs in Sri Lanka's apparel industry. (Photo: Gemumu Amarasinghe)
ASIA BUREAU ECONOMIC GROWTH PROGRAMS
Afghanistan, Bangladesh, Cambodia, India, Indonesia, Kazakhstan, Kyrgyzstan, Mongolia, Nepal, Pakistan, Philippines, Sri Lanka, Tajikistan, Timor-Leste, Turkmenistan, Uzbekistan, and Vietnam
CONTACTS
James Walker
Senior Economist
Tel: (202) 712-4043
Email:jwalker@usaid.gov
Overview
The current global economic downturn has led to slower growth – or even economic contraction – in many countries around the world. In Asia, the downturn has worsened the plight of economies that have long been weighed down by poor government policies and low rates of international trade and investment. Slow economic growth has dire consequences, including poverty, unemployment, and underemployment. USAID implements economic growth programs in Asia to help overcome these problems. Economic growth is a key U.S. foreign policy goal in the region.
Programs
Building Strong Economic Policies and Institutions
Inappropriate policies, weak institutions, and corruption hamper growth in the region. USAID, working with the Afghanistan Ministry of Finance, has increased customs revenue by 400 percent in just four years from $77 million to $388 million. In Indonesia, a USAID program has encouraged the reform of thousands of local government regulations. These reforms have been instrumental to recent improvements in Indonesia’s competitiveness ranking. USAID also has assisted with reforms required for compliance with Vietnam’s World Trade Organization accession and with its trade and investment agreements with the United States. As a result, economic growth from 2001 to 2007 has been dramatic, with exports expanding by over 200 percent.
Investing in Agriculture
The agriculture sector is the foundation of the economy in many Asian countries. In remote regions near the Pakistan/Afghanistan border, USAID has helped over 25,000 farmers to increase their incomes by an average of 23 percent. In addition, USAID and the Gates Foundation have launched a partnership to increase grain production in South Asia. This effort is expected to benefit 6 million households, increasing their income by at least $350.
Increasing Access to Credit
Access to credit is very limited in most of the region, making it difficult to start and expand small businesses. In the Philippines, USAID has helped over 100 banks and rural cooperatives profitably provide loans and deposit services for small-scale entrepreneurs in Mindanao. USAID has helped the Indonesian Ministry of Finance improve the overall functioning of the financial sector by promoting sound policies and training key staff in Ministry offices.
Strengthening Property Rights
Secure property rights are essential for economic growth. In Afghanistan, USAID simplified property registration by creating electronic filing systems for over 900,000 property deeds in 20 regional court registries. This provides property owners with verifiable documents and reduces fraud.
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