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Performance Summary and Highlights

Photo of President George W. Bush.

"Your [USAID] efforts and the efforts of others, especially to create jobs, promote markets, improve health, fight HIV/AIDS, and help democracy take root are instrumental to making the world a better place and to protecting the American people."

– President George W. Bush

USAID finds itself at a most critical time in the history of international development and foreign assistance. September 11, 2001, served to accelerate the nation's awareness of how development is an essential element of national security, along with diplomacy and defense. In September 2002, President Bush unveiled his National Security Strategy to address the unprecedented challenges that are facing the nation. It outlined the new direction in foreign policy that was required to respond effectively to what occurred the previous September. Among the tools that would be engaged in the new strategy is an emphasis on development. Indeed, development was elevated as a third pillar of U.S. foreign policy, along with defense and diplomacy. This new role requires USAID to acknowledge that its mission is now broader than the traditional humanitarian and development response. The Agency is increasingly challenged to address the crisis of failed states, transnational problems, and geo-strategic issues. USAID addresses many development issues that may threaten national security, such as widespread and persistent world poverty; the growing menace of global terrorism and transnational crime; the integration of global communications and markets; and the surge of HIV/AIDS and other infectious diseases, weak and failed states, and complex emergencies. The programs of USAID in economic growth, democracy, agriculture, health, and education tackle these development challenges. USAID programs present a win-win situation for the United States, providing strong examples of the use of "soft power" while assisting many nations to meet their own development needs and priorities.

Conflict and failed states provide opportunistic environments in which terrorists can operate. Regimes that are closed—politically and economically—foment a sense of hopelessness and multiply the numbers of aggrieved, who become easy recruits to the terrorist cause. USAID's mission is to shore up the democratic forces of society and to foster the economic reforms that are the most effective antidote to the terrorist threat and appeal. The President, the Department of State, and others understand that this is not going to happen overnight and that USAID's contributions are necessary but not sufficient alone: a fact clearly pointed out in the President's National Strategy for Combating Terrorism. The war on terror will be a long one, as the President reminds us, and it will take both resolve and long-term commitment.

During the Tsunami and the reconstruction efforts in Iraq and Afghanistan, USAID was there and stood as a pillar in the development aid and assistance community. USAID's responsiveness to the devastation, both physical and psychological, caused by the Tsunami, and USAID's dedication to democracy in Iraq and Afghanistan is a testament of USAID's commitment to assist people in reclaiming their hopes and foster stable societies.

The reconstruction efforts in Iraq are critical, and remain a central priority of the Agency. The achievements are significant, especially in light of the security situation and the desperate and ongoing efforts of some to disrupt the progress. To check the forces of terror and bring peace and stability to this dangerous region of the world, USAID is committed to the President's goal of seeing democratic governments come to Afghanistan and Iraq. It is a historic commitment that is rivaled only by the Marshall Plan, to which the Agency traces its origins.

USAID's rising profile in U.S. foreign policy initiatives can be measured in budgetary terms. The commitment to the Agency has been substantial and growing as it administers funds from a number of Foreign Affairs accounts. In FY 2005, for example, the Agency administered nearly $11.32 billion portfolio (including supplemental funds for Iraq), which is up from $7.93 billion in FY 2001.The Agency is proud of this vote of confidence and anxious to make good on its daunting responsibilities.

The following pages describe USAID's performance summary and highlights:


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