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USAID: From The American People

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This is an archived USAID document retained on this web site as a matter of public record.

Administrator J. Brian Atwood
"Celebration of Partnership"
USAID Czech Republic Mission Closing Ceremony
Prague, Czech Republic
Washington, D.C., May 26, 1997
U.S. Agency for International Development


It is a pleasure to be here in one of the world's most beautiful cities. I always look forward to coming Prague. I would like to welcome the many distinguished guests who are here today and acknowledge the visionary work you have done to make this day possible.

It is always something of a bittersweet moment when we close one of our offices. For many of us it means leaving friends and colleagues behind, and leaving a unique place and people that we have come to love. For the employees of USAID, we find ourselves losing a small part of ourselves when we depart, but today is far more sweet than bitter. For our two nations this is not an end but more of a beginning of a new relationship in which partnership and cooperation grow stronger by the day. Today we celebrate the evolution of relations between two nations who have always fiercely cherished freedom and the nobility of the human spirit.

Many people I talk to are amazed by the rapid progress in the Czech Republic since the collapse of communism. While serious challenges remain, the Czech story of the 1990s is a success story that has few -- if any -- parallels in the region.

But for me, the remarkable strides that the Czech Republic has made this decade are anything but surprising. Those startled by what you have achieved need to remember that history did not start in 1990. For when we look at the history of the people of this great nation, their leadership, courage and creativity have been a constant theme. The Czech people -- even in the face of repression and totalitarianism -- never abandoned their aspirations or their commitment to freedom.

Even in the roots of this city itself, we can see a noble heritage. From the 14th century and the time of Charles the IV -- a leader who helped shape the face of the city -- the Czech people have stood as leaders in the European community.
After the early struggles for freedom, Czech nationalism was rewarded with the fall of the Austrian-Hungarian Empire. Bohemia again stood as a center of a prosperous economy and independent culture.

The traditions of intellectualism, open expression and the life of the mind have always distinguished the Czech people. Even during the darkest days of repression in this century, first under the Germans and then the Soviets, the Czech people were unbowed. All the world owes a debt to heroic Czech freedom fighters, like those who lost their lives at the Church of Saint Cyril and Methodius here in Prague in 1942, others who suffered in prison between 1949 and 1989, and those who lost their lives in 1968. These men sacrificed their lives for a Europe in which all of its people could live in freedom -- today.

This spirit of courage and independence refused to be diminished even when Soviet domination cruelly replaced the German occupation. The long-held Czech commitment to democratic ideals quickly highlighted the flaws within the Soviet system that led to its eventual demise. Freedom proved once again to burn more brightly than any force that would seek to repress it.

Upon regaining independence the Czech Republic made a number of very wise choices. As President Kennedy once said, "Our task now is not to fix blame for the past, but to fix the course for the future." Looking forward has guided the Czech Republic well. The peaceful split with the Republic of Slovakia showed the world that tolerance and good faith negotiations could prevent nations from descending into chaos the way the former Yugoslavia has tragically done. The stirring words and deeds of President Havel in the early days of independence will reverberate through the corridors of history as inspiration for all people who aspire to freedom.

The willingness of the Czech Republic to make hard choices on political and economic reform -- and to stick by those decisions -- showed other nations in the region that reform is the best way to improve the lives of the people. Political freedoms and civil liberties in the Czech Republic today are among the most advanced in the world. In economic policy, the Czech Republic is a regional leader -- seventy-five percent of the economy is now in private sector hands.

I would be remiss not to note the economic and policy debates which are in your daily press and receive international coverage -- the trade deficit, a slowdown in growth, the strength of the crown. But this is what democracy is all about -- facing problems in public debate and trying something new. We all know the reforms are not completed. Even now, we at USAID are still working on capital market reforms and with the Czech National Bank on the problems of banking oversight, financial fraud and privatization. I have no doubt that with the strong pull of integration with the West, European Union membership most notably, progress will continue.

Good economic policies are reflected in good economic performance. Since 1994, economic growth in the Czech Republic has been strong and sustained, and has been accompanied by single-digit inflation and fueled by impressive productivity growth. I would like to remind everyone that many countries around the world (especially in Europe) are envious of "problems" of whether economic growth will only be 3 percent or 4 percent, instead of 5 percent or 6 percent.

I am proud, privileged in fact, to say that the U.S. government, through USAID, has played a small but important role in the Czech Republic's transformation back to democracy and open markets. Without doubt, our contribution has been magnified many times over due to the vibrant partnership between our nations. As many of you know, USAID has been working in the Czech Republic since 1990. By the time we close our office in Prague this September, we will have invested almost $135 million in grant assistance, and $34 million in loan guarantees.
Our emphasis on partnership has meant that the Czech people have taken full responsibility for the continuation and completion of reform.

In privatization, a USAID-supported advisory team worked with Ministry of Privatization to negotiate with foreign investors to ensure the best deal possible for the Czech Republic. By 1996, this collaborative effort resulted in over 130 foreign investor transactions worth more than U.S.$4 billion. Since 1989, the Czech Republic has transferred 80 percent of state assets into private hands. This has been one of the most ambitious privatization programs anywhere, anytime.

In private sector development, scores of American volunteers -- from the Peace Corps and elsewhere -- have worked side-by-side with Czech entrepreneurs to help teach the nuts and bolts of running a business in a market economy. In the financial sector, USAID has worked with Czech partners in the National Bank, individual banks, and the Prague Stock Exchange to help create the financial infrastructure which is so critical for economic growth.

Our partnership to help establish a sustainable, market-oriented system of financing local governments has also been a key part of our efforts. In 1993, when municipalities were given the authority and responsibility for revenues and investment, many of these municipalities lacked the capacity to carry out these functions. USAID responded by providing technical expertise to municipal officials and bankers, as well as capital to banks which now give long-term loans to municipalities.

We have also worked to help improve the quality of life throughout the Czech Republic. Forty years of neglect left bankrupt and antiquated health and social systems, and wasteful energy systems that polluted the environment. Part of our collaborative focus has been on broadening social services to particularly vulnerable segments of the population, such as the physically and mentally disabled.

In health care, Czechs and Americans worked towards preventive health measures, to revamping health care in the hospitals, and to stimulating new private sector services. In the environment, innovative American technologies set the pace for responsible use of environmental resources and clean energy, and have helped lay the groundwork for meeting various standards for EU membership.

The U.S. Government, under the able leadership of Ambassador Walker, has also supported the Democracy Commission and the rebirth of an active civil society in this nation. I want to particularly underline the important role of partnerships in strengthening civic society. In countries throughout the world, experience has proven that all the components of society must work together to create an environment that encourages civic participation and government responsiveness.

That is why I am so pleased today to salute three very important partnerships that have made a tremendous difference here in the Czech Republic. These three non-profit partnerships -- Czech institutions working with Czech institutions -- are models for not only the Czech Republic but also the region. With no further ado, let me present these certificates of appreciation:

The first partnership is that between the Olga Havel Foundation and the Czechoslovak Trade Bank. Dr. Milena Cerná [mi-le-na chair-na], Director of the Olga Havel Foundation, and Pavel Kavánek [pa-vel ka-vah-nek] of the CSOB are here to represent this partnership and to receive our recognition and our respect. Together, the Olga Havel Foundation and the Czechoslovak Trade Bank help to educate young persons with disabilities through the Education Fund, first established in 1994 by the Foundation and endowed primarily by the Bank. The Education Fund offers scholarships to disadvantaged high school and university students. And in doing so, it helps provide, in a sustainable way, an important and honorable social service.

A second certificate goes to Ms. Jana Ledvinová [ya-na led-vin-o-vah], Chairperson of TEREZA and Jirí Skalický [yi-rzhi ska-lits-kee], the Minister of Environment. The partnership between TEREZA and the Ministry of Environment is a collaboration to better educate the public of environmental concerns and to help address these concerns in the policy arena. Under TEREZA's leadership, for example, school groups monitor concentration of acid rain and ground level ozone, and the Ministry applies these findings. With the assistance of both the Ministries of Environment and Education, TEREZA also serves as country coordinator for the GLOBE Project sponsored by U.S. Vice President Gore, which brings students from around the world together through the internet to monitor and evaluate environmental conditions. We extend our congratulations and appreciation for the significant impact you are making.

Last, but certainly not least, is the partnership between the Regional Fund and the City of Ústí nad Labem [oost-i nahd lah-bem]. Lubomír Krbec [loo-bo-meer ker-bets], the founder of the Regional Fund and Dr. Josef Jílek [yo-sef yee-lek], on behalf of the City of Ústí nad Labem [oost-i nahd lah-bem], are the recipients today of our praise in regards to this particular partnership. The Regional Fund was established in 1993 to help provide community care for the mentally handicapped. In 1995, it linked up with the City of Ústí nad Labem [oost-i nahd lah-bem] to help provide a wide array of health and social care services for the city. The partnership provides an inspirational role model as to how an NGO and local government can work together to improve the quality of life of citizens at the grass roots.

We applaud the efforts of these fine organizations and all they have done to improve the lives of thousands of people. Their work in partnership illustrates how much we can achieve when we work together.

That spirit of partnership thrives not only in this nation, but between our two nations. The United States and the Czech Republic truly enjoy a "Partnership for Change." In a few minutes I will ask my Czech colleague to join me in unveiling a bronze plaque which will hang in a place of honor in the American Embassy. It will hang next to another plaque that commemorates the American-Czech bond during the First Republic of Czechoslovakia, epitomized by the friendship between Presidents Wilson and Masaryk [mass-a-rik].

The bonds between the Czech and American people are strong. While many of us feel a touch of sadness in watching this phase of our work draw to end, we are greatly comforted, knowing that the partnerships created with USAID's help will continue. And new partnerships in trade, investment, science and security will bring new friendships.

I am now pleased to give the podium to a man who has been an excellent partner for USAID and a leader for transition in the Czech Republic, and once again I will ask for his partnership in this ceremony... Minister Skalicky [ska-lits-kee]. Thank you.

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 18, 2001