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This is an archived USAID document retained on this web site as a matter of public record.
USAID Signs Agreement to Provide $7 Million to Montenegro
U.S. AGENCY FOR INTERNATIONAL DEVELOPMENT
PRESS RELEASE
WASHINGTON, DC 20523
PRESS OFFICE
http://www.usaid.gov
(202) 712-43202000-30
FOR IMMEDIATE RELEASE
Monday, January 31, 2000Contact: Jennifer Brown
WASHINGTON, DC - U.S. Agency for International Development Administrator J. Brady Anderson (USAID) joined the Prime Minister of Montenegro, Filip Vujanovic in a ceremonial signing of a $7 million grant agreement in support of Montenegro. The $7 million will serve as budget support by paying pension obligations of the Government of Montenegro (GOM). This action is the last USAID grant for Montenegro from Fiscal Year 1999 funds, completing a program that totaled $44 million. The USAID program is expected to total over $37 million in Fiscal Year 2000.
"The direction Montenegro takes over the next several years, particularly toward establishing a more open democratic society, will be a major determinant of the nature of politics and economic development in the region for many years to come. Montenegro has been a strong supporter of democratic change and economic reform in the Federal Republic of Yugoslavia," said Administrator Anderson. "USAID is encouraged by the resolve of the President Djukanovic's administration in taking major strides toward democratic reform. We look forward to your leadership in implementing this reform work."
U.S. foreign aid for Montenegro responds to our mutual interests. Montenegro cooperated with the United States and our NATO allies in responding to humanitarian crisis accompanying the conflict in Kosovo. The problems of Montenegro's weak economy have been substantially exacerbated by the burden of support for displaced persons, a surge in inflation and devaluation of the dinar, and the obstruction of trade from Serbia within the Federal Republic of Yugoslavia by Belgrade authorities. The GOM budget has accumulated an unanticipated and unmanageable deficit due to these financial pressures and the need for foreign exchange to meet domestic obligations of the GOM under their new parallel currency regime.
The bulk of USAID funds are directed at stabilizing the economy and the Government of Montenegro through budget support, structured to ensure declining dependence on foreign assistance. USAID's current technical assistance programs in Montenegro support economic reform and restructuring of the economy by focusing on budgetary management, tax policies, the banking system, and macroeconomic advice. Support is also given for development of independent media, judicial and local government reform, municipal government capacity building, political party development, election reform, development of legal systems that better support democratic and market reforms, and non-governmental strengthening. More specifically, the technical assistance program will:
- assist essential reforms that ensure the success of the dual currency initiative and to move Montenegro toward a free market economy;
- increase citizen involvement in political parties and increasing voter participation in elections;
- encourage civil society organizations to take a more active role in politics;
- increase the number of citizens who watch, listen to, read and have access to independent media; and
- support democratic practices and market reforms through institutionalizing rule of law.
USAID is the U.S. government agency that provides development and humanitarian assistance to the developing world.
This is an archived USAID document retained on this web site as a matter of public record.
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Last Updated on: July 12, 2001 |
