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THE PILLARS

In this section:
Egypt’s Reforms Hike Jobs and Incomes
East-Bloc Accountants Learn New Skills
Local Involvement Cuts Conflict
Clinics in Madagascar Teach Young Adults


ECONOMIC GROWTH, AGRICULTURE, AND TRADE

Egypt’s Reforms Hike Jobs and Incomes

Photo of two Egyptian women with their cow.

In Egypt, USAID support for economic policy reforms has helped to increase agriculture productivity and job growth.


Oliver Pierson, USDA Forest Service

CAIRO—Said Gabril is one of millions of farmers along the Nile River who have benefited from 200 reforms that, with U.S. foreign aid, have accelerated the economic development of this North African country of 77 million people.

Gabril runs a medium-sized livestock farm that had 40 head of cattle on his 25 acres in the late 1990s. But his farm grew to 200 animals after business reforms introduced him to USAID projects that taught farmers how to improve productivity, improve land management, and market their products. Now he employs 30 workers—10 times as many as before.

Gabril also modified the design of his farm—adding shade, feed bunks, and water troughs as well as improving his calf rations—after participating in observational study tours to the United States.

During the last decade, USAID supported more than 200 reforms to improve Egypt’s agricultural business environment. As a result, Egypt today has more open and competitive agricultural markets, conditions favoring private investment have improved, and Egypt is exporting and trading more than ever.

Reforms have also induced efficiency and productivity of Egypt’s water and land along the Nile River. Gabril’s neighbors, for example, doubled their rice yields while using less water during a shorter growing season. The land and water saved was used to grow fodder crops for cattle, enabling Gabril to expand production.

Adoption of new techniques for crops, livestock, marketing, and processing were all supported by USAID over the last three decades, especially in the most recent years.

In 2004, for example, USAID’s Agricultural Exports and Rural Incomes (AERI) project trained 6,000 small and medium farmers in production, harvest, and postharvest handling of green beans, melons, and medicinal or aromatic plants. Drying and oil extraction of essential and aromatic oils were also taught. AERI also worked with small dairy and livestock producers like Gabril on improving product quality.

Current efforts include providing small farmers groups with training, seminars, video presentations, and direct consultations. Farmers are trained in herd management, animal health, and dairy processing.

One of the best effects of USAID’s work in Egypt has been the creation of jobs in Egypt, which annually has 1.3 million new young adults and over 800,000 people seeking employment for the first time, said Glenn Rogers, sector policy economist in the Bureau for Economic Growth, Agriculture, and Trade.

“Achieving increases in agriculture productivity from the adoption of improved technologies and more efficient methods helps raise farm incomes and create nonfarm employment opportunities,” he said.

Egypt’s economic opening of the agricultural sector to greater competition and foreign trade led farmers to adopt new technology that improved production of grain, cotton, fruits, and vegetables. This enabled millions of Egyptian families to improve education, escape poverty, and reduce child malnutrition, he added.

Household wealth increased between 1992 and 2000 in rural areas of Egypt where there were reforms in the business and economic environment.

In rice growing areas, households that rose above the poverty level grew from 68 percent to 95 percent. Farmers used their new income to buy better healthcare and education. In communities like Gabril’s, girls’ school attendance rose from an average of 71 percent to 83 percent, and the number of women with some secondary education jumped from 23 percent to 50 percent. The number of children chronically malnourished decreased from 27 percent to 19 percent.

USAID has increasingly helped expand credit programs and connect Egyptians with U.S. know-how, equipment, and agricultural inputs such as seed, herbicides, and fertilizer.

“The Egyptian experience with agricultural reform demonstrates that agricultural sector investments are an important component to address fragility in emerging markets and accelerate employment growth even with modest overall national growth rates,” Rogers said.

Gabril’s improved farm production indicates that productivity in agriculture and related services may be the single most important way to promote economic progress and jobs in developing countries, he said.


GLOBAL DEVELOPMENT ALLIANCE

East-Bloc Accountants Learn New Skills

Photo of accounting student sitting for an examination.

Sergiy Kanygin takes a test at a Managerial Accounting 1 exam in Kiev last year. The test is one of thousands administered by USAID-funded accounting reform projects.


Rick Gurley, USAID

KIEV, Ukraine—Nadezhda Ermolenko is one of thousands of accountants in former Soviet Bloc countries who are learning how to be more credible and efficient, and in the process are reshaping their countries’ economies.

Ermolenko got her accounting practitioner certificate in 2003. Two years later she passed the professional exams for the Certified International Professional Accountant (CIPA) certificate. Within months she landed a job as the financial director of the Planning and Economic Department of Versiya, a leading Ukrainian producer of laptop computers.

Ermolenko says she has learned a lot about “good managerial accounting practices.” The program has been “winning…for both me and the company.”

When the Soviet Union collapsed in December 1991, its 15 newly independent republics had dysfunctional economies lacking modern accounting skills or the ability to track finances, budgets, and depreciation. The lack of accounting standards crippled the growth of private businesses, discouraged foreign investment, and slowed the region’s integration into the global marketplace.

USAID stepped in with the CIPA alliance, which sought to set up the accounting skills and standards required for conducting business, good governance, attracting investment, and facilitating regional economic progress. The project brings together professional accounting associations from across Eurasia who train and certify their members and promote international standards and practices.

The Global Development Alliance (GDA) and various missions invested $3.5 million in the project. Another $10 million was put in by private organizations and other donors.

The first basic financial accounting course was developed in Russian. Then, a team member working for the USAID accounting reform project in Kyrgyzstan began offering a course and exam on financial accounting. Those who passed received a certificate of merit, which quickly gained currency among accountants.

“We knew we were onto something when we found forged certificates circulating around,” said Rick Gurley, USAID’s accounting reform project officer. “The new certificates were widely respected by accountants and prospective employers, and even had real value on the street.”

The program then expanded to Kazakhstan, Ukraine, and Russia. Other Eastern and Central Europe countries are now adopting the project as well.

To date, more than 50,000 people have taken the CIPA training. Some 65,000 exams have been administered throughout Ukraine, Moldova, Belarus, Russia, and the five Central Asian Republics. Now 5,000 accountants have earned CIPA certificates.

“Employers are sending current employees to take the training and examinations and are beginning to require that new accounting employees have the CIPA designation,” Gurley said.

The International Financial Reporting Standards has been translated into Russian, Ukrainian, Kazakh, Kyrgyz, and Uzbek, and adopted as the national standard in Kazakhstan, Kyrgyzstan, and Uzbekistan. USAID is researching the possibility of offering the CIPA program in Spanish, Chinese, Dari, and Arabic.


DEMOCRACY, CONFLICT, AND HUMANITARIAN ASSISTANCE

Local Involvement Cuts Conflict

Photo of Tshopo market underoing reconstruction.

At the Tshopo Market Rehabilitation Project in Kisangani, a grant from USAID provided construction materials and technical assistance to rehabilitate a local market and improve the commercial activities and exchange among the members of the community. Tshopo was severely affected by the war in the DRC, which caused major infrastructure damage and prevented economic exchange.


Yves Bawa, USAID

Warfare in the Congo has displaced millions since 1998, drawn in neighboring countries, and killed more people than any other conflict since World War II: about 3 million.

Although a 2002 peace agreement has been unable to end all the fighting and resettle many of the Congo’s displaced people, USAID is currently carrying out work to reintegrate ex-combatants into civilian life.

The effort is an indication that grassroots activities have become a key conflict prevention strategy in some of the world’s most unstable countries.

“There is increased interest in grassroots programming to address conflict because it can have an immediate and positive impact at the local level by demonstrating real change and improving people’s quality of life,” said Elisabeth Kvitashvili, director of the Office of Conflict Management and Mitigation (CMM).

“The challenge is to balance the need for quick and tangible benefits with the need to build a process that inspires participation, cooperation, and trust.”

In October, CMM and the World Bank’s Post-Conflict Unit hosted a meeting to discuss where, how, and why grassroots activities can work to reduce conflict, and ways the efforts can be copied in other conflict zones.

The meeting of the Conflict Prevention and Post-Conflict Reconstruction Network attracted representatives from 13 donor agencies, including Great Britain’s Department for International Development, the Swedish International Development Cooperation Agency, Deutsche Gesellschaft fur Technische Zusammenarbeit in Germany, and the Organization for Economic Co-operation and Development.

Founded in 1997, the Network is an informal group of conflict specialists from 31 development agencies and international organizations who meet semiannually.

The three-day conference examined community-driven development (CDD) programs that can be based at the village level, focused on local economies or working to develop local governments.

The Congo program, for example, takes a new approach to reintegration by including people not involved in fighting. The Office of Transition Initiatives, which runs the program, hopes to create a safe environment for the different segments of the population to interact and to reinforce reintegration efforts.

The conference also included field trips to Washington-area organizations involved in community development activities and conflicts. Participants attended an exhibit by 22 organizations with on-the-ground experience working with communities in conflict countries. The NGOs and other groups presented their materials, best practices, and innovations.

The CMM office is part of the Bureau for Democracy, Conflict, and Humanitarian Affairs.


GLOBAL HEALTH

Clinics in Madagascar Teach Young Adults

Photo of a peer educator giving a talk.

A peer educator talks to students at a high school in Tana about sexually transmitted diseases, delaying sexual activity, and the use of condoms.


Njaka Rajaonisaonina, USAID

ANTANANARIVO, Madagascar—Private clinics serving young people are attracting more and more clients who are learning how to prevent sexually transmitted diseases (STDs), HIV infection, and unwanted pregnancies.

The USAID-funded project opened its first private clinics in 2001—under the name Top Reseau (French for “top connection”)—in two districts in the eastern province of Tamatave, Madagascar’s principal port city. Three years later, Top Reseau extended its network to other cities, including Antananarivo, Antsiranana, Tolanaro, and Mahajanga. The project now includes 123 health centers.

Madagascar’s citizens, known as Malagasy, are at high risk of STDs or HIV infection. A 2004 survey found that nearly 50 percent of women aged 15 to 24 had never heard of an STD, and more than 20 percent had never heard of AIDS. Only 19 percent of men and women had correct knowledge of the two main ways to prevent HIV/AIDS, the survey found.

USAID’s project addresses these issues by raising awareness through mass media campaigns and sending educators into communities to talk about STDs, AIDS, and reproductive health. The main message to youth is to delay sexual activity. For those who are already active, the advice is to be faithful to one partner and use condoms.

The project runs television, radio, and billboard advertising to promote Top Reseau.It also uses mobile video units to deliver health messages.

Such screenings typically attract large crowds who watch films about delaying sexual activity, limiting the number of partners, condom use, and STD prevention. Audiences follow up with discussions and games, and receive information on clinic services.

A team of 60 peer educators aged 18 to 20 mix humor with serious discussions about reproductive and sexual health issues at the centers. They also conduct face-to-face sessions with youth on the streets and at night clubs, bars, and sporting events.

One clinic physician, Dr. Bakoly R. of Antananrivo, said: “At the beginning, when vulnerable women were referred to me by peer educators for medical followup, I felt a little uncomfortable. I was afraid that it might impact on my clinic workload. People considering themselves as ‘respectable’ and at low risk for HIV might decide not to come to consult me anymore. I realized that it was not the case.”

Another physician, Dr. Samuel R. of Tamatave, said that in six months his clients increased threefold.

“Because of the increased demand, I’m now asked to carry out biweekly outreach group activities in the Tamatave neighborhood to respond to more complex questions that peer educators are not able to respond to,” he said.

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Wed, 18 Jan 2006 12:08:01 -0500
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