Rwanda

FY 2001 Program Description and Activity Data Sheets

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FY 2001 Program The USAID program will continue to focus on three basic sectors, democracy and justice, health and social services, and agriculture and economic growth. To support USAID's goal of strengthening democracy and good governance, Development Assistance (DA) and regional ESF/GLJI funds are requested to continue strengthening the capacity for the administration of justice and improving governance, accountability and transparency within decentralized national structures. New GLJI resources will permit the continued expansion of program support to genocide caseload management, reconciliation, and local government. USAID will continue to support new activities, which focus on promoting national reconciliation through dialogue, research and technology. In the health area, the new Leadership and Investment in Fighting an Epidemic (LIFE) Initiative will augment Child Survival and Diseases (CSD) Fund resources to combat the scourge of HIV/AIDS in Rwanda. CSD resources are requested to increase the availability of decentralized, quality primary health care focusing on reproductive health, and to enhance the IEC campaign related to STI/HIV. CSD will also be used to improve the GOR's capacity to decentralize social welfare services for vulnerable children and their families. USAID is the leading bilateral donor to the MOH and will continue its efforts to improve MOH financial and administrative accountability as well as to expand upon the encouraging results of pilot alternative health financing schemes. The use of data gathered from the nationwide demographic and health survey (DHS), now underway, will facilitate sound decision-making and inform MOH and donor programming. DHS data will support the design of a limited population intervention for FY 2001. This must be culturally acceptable in post-genocide Rwanda, and should model approaches for service expansion. USAID will also provide support to the national census scheduled for 2001. Funds through the Education for Development and Democracy Initiative (EDDI) are requested to target human capacity development in the health sector. In the areas of broad-based economic growth, agricultural development and humanitarian assistance, DA resources are requested to continue work in increasing the technical capacity of the MOA to plan and implement sound food security policies and programs. USAID will continue to implement its program to design a sustainable agri-business and marketing program. USAID will also work with a broad coalition of actors to further development of agricultural technologies that can result in increased production and profitability. A critical program to develop and increase human resources in the agricultural sector will be implemented using a combination of DA and EDDI resources. In addition, P.L. 480 Title II commodities and grant funds are requested to support Development Assistance Programs implemented by international NGOs who work with local partners on creative solutions to food security. [an error occurred while processing this directive] ACTIVITY DATA SHEET PROGRAM: Rwanda TITLE AND NUMBER: Increased Rule of Law and Transparency in Governance, 696-001 PLANNED FY 2000 OBLIGATION AND ACCOUNT: $1,872,000 (DA) PROPOSED FY 2001 OBLIGATION AND ACCOUNT: $2,000,000 (DFA) STATUS: Continuing INITIAL OBLIGATION: FY 1997 ESTIMATED COMPLETION DATE: FY 2003 Summary: While commendable progress has been made by the Government of Rwanda (GOR) in overcoming the widespread effects of the civil war and genocide of 1994, it continues to be hampered by limited institutional capacity to build confidence in the rule of law and to end the cycles of ethnic violence and impunity that have plagued the country since independence. The purpose of this strategic objective is to strengthen those institutions that form the foundation of a sound legal and judicial system and to promote national development based on the rule of law. It provides the main bulwark of support for the U.S. Mission's Performance Plan goal, to assist Rwanda in its transition to a fully democratic system in which ethnic tolerance, respect for human rights and the rule of law are instituted. All Rwandans will benefit from increased confidence in legal and judicial structures, decentralization and improved security of persons and property. Immediate and direct beneficiaries are the institutions that underpin the administration of justice, rule of law, and broad-based participatory development and political processes. At least 350 civil servants in the areas of justice and local government, 190 law school students, 110 members and staff of the transitional National Assembly, 20,000 rural citizens in target communities, and 5,000 genocide survivor orphans who are attending primary and secondary schools will benefit directly as a result of these improvements. Key Results: In 1999, the GOR institutionalized, through law and nationwide local elections, the local decision-making structures initiated under USAID's Local Governance Initiative project. This was an important step towards greater representative democratic participation enabling 160,000 local officials (of whom 20% are women) to become participants in the rebuilding of their country. Several months prior to the elections, a USAID-supported awareness campaign was mounted to prepare the population for the election process. Community dialogue, posters and radio broadcasts were instrumental in promoting popular participation. These non-party elections have paved the way for commune and prefecture elections expected in 2000. USAID is currently working in 10% of Rwanda's communes to train 15,000 newly elected officials in project development. As a result, locally identified community priorities have been developed into concrete projects encompassing areas such as water, marketing, livestock and milling. In FY 2000, training and project development will expand to encompass 20% of the country's communes and related technical assistance is expected to play a significant role in voter education and preparation for commune and prefecture level elections widely expected in 2000. In 1999, financial management training provided to central government and prefecture representatives has prompted the central government to begin the process of decentralizing central ministry resources to the prefecture level. Institutional capacity for more efficient and effective administration of justice was improved as case files for those accused of genocide crimes were established more rapidly. More detainees were either released or plea-bargained than at anytime since the passage of the genocide law in 1996. The potential for gacaca (local system of justice) gaining popular acceptance was enhanced through USAID's support for an awareness campaign. USAID has provided the sole donor support for national consultation seminars that have been held on the gacaca process. These consultations with the national community, including representatives from various strata of the society, form the basis for the legislation that is currently being prepared to enable the gacaca process to get underway. Passage of the law is expected by March 2000. Performance and Prospects: USAID efforts during 1999 continued to be directed towards improving the administration of justice. In the past year, USAID assistance has resulted in the strengthening of the Ministry of Justice's (MOJ) ability to accommodate the expected switch to more decentralized methods of adjudication through gacaca. Implementation of the gacaca awareness campaign was delayed by the initial lack of qualified expatriate staff, though the problem has been rectified. With regard to the adjudication of the most serious genocide offenses, USAID, in cooperation with the U.S. Department of Justice, will provide prosecutorial training and other assistance to improve caseload management. A continuing activity has been USAID-sponsored legal education training, which is aimed at ameliorating the critical shortage of legal expertise within the country. In that regard, 75 Anglophone law students graduated from the National University in 1999 with an additional 75 expected to graduate in 2000. Other activities include: support for the production of legal materials in English; reporting on the International Criminal Tribunal for Rwanda (ICTR), information dissemination to the public at-large, and to the detainees in particular, about the genocide law, messages concerning reconciliation, and the peaceful reintegration of released genocide detainees. Improvements in the overall justice system have been enhanced through regional ESF/Great Lakes Justice Initiative (GLJI) funding, which is aimed at long-term strengthening of the MOJ and related institutions. In 1999, USAID continued to provide school fees through the Displaced Children's and Orphan's Fund although no new funds have been programmed for the future. In the area of increased security of persons and property, USAID and the U.S. Department of Defense have supported the National Demining Office in developing a program to locate and destroy land mines and unexploded ordnance. About 75% of land known to be compromised has been cleared of mines. USAID assistance is phasing out as the GOR has developed the capacity to conduct this program. Funding continued through the third quarter of FY 1999 so that more land could be returned to productive use. Some continued funding might be available through the State Department's worldwide demining program. USAID, through the third quarter of FY 1999, also trained public safety personnel, including police trainers and new police officers, and equipped public safety institutions to provide the basis for civilian law enforcement. The March 1999 elections at the sector and cell levels have transformed the nature of USAID's Cooperative Agreement with AFRICARE, which originally was intended to pilot a mechanism for the GOR to put into practice its objective of reallocating resources and decentralizing decision-making. The elections mean that this activity will now replicate and expand on the pilot efforts, building on the momentum of the elections and laying the foundation for the GOR to engage in broader governance issues in the longer term. Much of this successful model has been incorporated into similar projects funded by the United Nations Development Program (UNDP) with resources from the U.S. Department of State's Bureau for Population, Migration and Refugees, and the World Bank. Another key USAID activity to improve accountability and transparency in governance includes fostering reconciliation and national dialogue on sensitive, but critical post-genocide issues. In FY 2000, USAID will provide support, in terms of commodities and technical assistance, to the new Unity and Reconciliation Commission, as well as for programs at the National University of Rwanda and its Center for Conflict Management. The programs will use the internet as a powerful tool to increase Rwanda's exposure to global ideas and link the country with others struggling with similar issues of conflict management, development and democracy. USAID will also provide technical assistance to the National Assembly to improve legislative analysis, legal drafting skills, and executive oversight functions. Possible Adjustments to Plans: No adjustments are anticipated in response to existing or potential problems connected with program implementation. Regional ESF/GLJI funding for FY 2001 will permit a significant expansion in on-going activities in this strategic objective. Other Donor Programs: USAID is the leading donor in the justice and governance sector. Other major donors include the Netherlands, Canada, Belgium, and Germany. UNDP has funded advisors with the Ministry of Local Government, the MOJ and the National Assembly. Switzerland also furnishes technical assistance to the National Assembly. The World Bank and the Netherlands have provided $15 million to replicate decentralization activities based on the USAID Local Governance Initiative. Canada is supporting the local language publication of material on the work of the ICTR. Belgium provides defense lawyers for genocide detainees. Principal Contractors, Grantees or Agencies: The U.S. Department of Justice, the University of Quebec at Montreal, AFRICARE, Chemonics, World Learning International, and RONCO are currently implementing activities. Selected Performance Measures: Baseline (1997) Actual (1998) Target (1999) Target (2000) Target (2001) Increased availability of legal expertise (No. of lawyers) 40 N/A 150 250 370 Number killed yearly by mines and unexploded ordnance 41 9 N/A 0 0 Mechanism established for local resource allocation implement projects successfully (No. of communes with mechanisms) 0 0 15 30 30 U.S. Finance Table (Microsoft Excel file) ACTIVITY DATA SHEET PROGRAM: Rwanda TITLE AND NUMBER: Increased Use of Health and Social Services and Changed Behaviors Related to STI/HIV, Maternal and Child Health, by Building Service Capacity in Target Areas, 696-002 PLANNED FY 2000 OBLIGATION AND ACCOUNT: $5,500,000 (CSD), $1,000,000 (DA) PROPOSED FY 2001 OBLIGATION AND ACCOUNT: $6,347,000 (CSD), $197,000 (DFA) STATUS: Continuing INITIAL OBLIGATION: FY 1997 ESTIMATED COMPLETION DATE: FY 2003 Summary: In the years leading up to the 1994 genocide and civil war, health standards deteriorated as a result of rapid population growth, underfunding of public health programs, increasing burden of disease and HIV/AIDS, and growing food insecurity. The events of 1994 resulted in the decimation of the ranks of skilled personnel and the destruction of almost the entire health infrastructure. While there has been some rehabilitation of the health system since 1994, the main challenges such as malaria, HIV/AIDS, malnutrition, and lack of access to potable water remain. The Government of Rwanda (GOR) has put a high priority on human capacity development, decentralization of the primary health care system, and all aspects of the health sector including sanitation, nutrition and population. The purpose of this strategic objective is to increase the quality and use of primary health care (PHC) and basic social services in target regions, thereby increasing stability and strengthened development capacity. USAID's strategic objective is the primary conduit for the achievement of U.S. Mission's Performance Plan goal which seeks to increase the use of health services related to preventable diseases, especially HIV/AIDS, and increase availability of information related to reproductive health and child spacing. Direct program beneficiaries are the general population of the prefectures of Byumba (772,500), Gitarama (858,000), Kibungo (671,000), the health district of Kigali (500,000), as well as 30,000 unaccompanied or orphaned children and their foster families. To improve service delivery, Rwandans working in the public health delivery system and social service sector will be beneficiaries of professional training activities, with 861 trained to date. Key Results: In cooperation with the Ministry of Health (MOH), USAID and the World Bank have jointly funded the creation of the Rwanda Center for Health Communications (RCHC) designed to become an independent, nonprofit, fee-based facility, having the status of a local association. USAID has provided technical assistance in the areas of audio, visual and print production, technical training, managerial and business capacity building. The RCHC, which will be inaugurated in February 2000, has the capacity to service not just Rwanda, but the region as well. USAID expects to continue technical and marketing assistance to the RCHC. USAID supports a pre-payment scheme in three pilot health districts that is achieving remarkable results. Since its inception in August 1999, 50,000 people have signed up for the plan, which is aimed at developing and testing new cost sharing models that are locally-based. USAID will continue to expand and strengthen health financing capacity and decentralized management through this program. Performance and Prospects: USAID is the major MOH donor and has realized increasingly good cooperation with the GOR on health issues. Moreover, the political leadership has made the key challenge of HIV/AIDS a priority program area. Nonetheless, the GOR has been slow to create a financial management unit within the MOH. This has delayed improved reporting on donor accounts, decentralization of resource management, and standardization of costs to consumers. USAID will provide technical assistance to the MOH to develop comprehensive financial and administrative systems that will be used to budget and account for MOH resources. The GOR has also been slow to grant the RCHC autonomy. This jeopardizes USAID's commitment to support the Center's operations in the hiatus between the end of present World Bank funding in March 2000 and expected new funding in 2001. USAID's activities in Rwanda build a public capacity to deliver quality primary health care and social welfare services for children as well as to strengthen existing community-level social, communication and economic networks and services. To increase the availability of decentralized PHC services in target areas, USAID provides technical assistance to improve primary health care planning, management and implementation with an emphasis on STI/HIV prevention and control interventions. USAID will provide technical assistance to the MOH to update vital health and behavior information and develop an approach to providing reproductive health and family planning services to women and couples which is acceptable within the context of post-genocide Rwanda. To support this effort, USAID has funded a nationwide demographic health survey (DHS) that began fieldwork in November 1999. The last DHS was conducted in 1981, therefore data from this new survey will provide invaluable baseline for future planning activities. USAID will also contribute to the National Population Census scheduled for 2001. Disease surveillance and data monitoring capacity will be enhanced by the U.S. Centers for Disease Control and Prevention providing institutional support to the MOH. USAID assistance is used to improve knowledge and perceptions related to reproductive health, emphasizing STI/HIV, through innovative peer education programs and aggressive education at the community level of political, religious and opinion leaders. A November 1998 evaluation of USAID's STI/HIV prevention program in Gitarama prefecture revealed that awareness is being successfully raised although behavioral change has not been as rapid. USAID support to basic social welfare services for children has resulted in a national action plan to decentralize such services and has mobilized community-based networks to assist families with foster children. USAID, through funding from the Displaced Children's and Orphan's Fund, is providing technical assistance that improves the GOR's capacity to effectively coordinate and oversee community structures for the care, support and protection of children and vulnerable groups, and strengthens the capacity of the GOR to plan, coordinate and monitor service delivery. USAID has just entered Phase Two of its Health Manpower Activity. In Phase One, USAID rehabilitated the Kicukiro Training Center and provided x-ray, laboratory, and other teaching materials to the Kigali Health Institute (KHI). This new phase will focus on longer-term partnerships with Rwandan training institutions. USAID, through funding from the President's Education for Development and Democracy Initiative (EDDI), is supporting complementary technical assistance and program support to the National University of Rwanda (NUR) and KHI, the two leading Rwandan training institutions. This assistance will strengthen public health in-service training and help develop pre-service training models for the NUR School of medicine and division of public health. Possible Adjustments to Plans: No adjustments are anticipated in response to existing or potential problems connected with program implementation. Other Donor Programs: USAID and the World Bank jointly fund the Rwanda Center for Health Communications. USAID and the World Bank also collaborate with the MOH to decentralize and improve STI/HIV services nationally. USAID and the United Nations Development Program share in the joint planning and financing of a community-based comprehensive health and sanitation intervention program in northeastern Rwanda. USAID collaborates with the MOH to implement the GOR's national health policy and action plans and with the Ministry of Gender, Family and Social Affairs to strengthen coordination, develop policy and build a community capacity for the care and protection of children. Belgium is working with the MOH to build capacity in the ministry and the health districts, and is providing teachers to KHI. USAID has ranked second behind Belgium in terms of bilateral donor funding, but with the LIFE Initiative should be first in FY 2000. Principal Contractors, Grantees, or Agencies: Care International, Save the Children, Family Health International, Population Services International, Abt Associates and Johns Hopkins University. Selected Performance Measures: Baseline (1997) Actual (1998) Target (1999) Target (2000) Target (2001) Improved management of national health delivery system (USAID funds MOH directly) no no no Central & regional accounting & administration systems acceptable to USAID yes Increased access to quality PHC services in four regions (% of persons with STI correctly diagnosed and treated) 50% N/A N/A 60% 65% Reduction of children in institutions and residential centers (No. of institutionalized children) 6,600 5,447 N/A 3,591 National strategy developed & being implemented U.S. Finance Table (Microsoft Excel file) ACTIVITY DATA SHEET PROGRAM: Rwanda TITLE AND NUMBER: Increased Ability of Rural Families in Targeted Communities to Improve Household Food Security, 696-003 PLANNED FY 2000 OBLIGATION AND ACCOUNT: $6,748,000 (DA) PROPOSED FY 2001 OBLIGATION AND ACCOUNT: $6,264,000 (DFA) STATUS: Continuing INITIAL OBLIGATION: FY 1997 ESTIMATED COMPLETION DATE: FY 2003 Summary: Ninety percent of the population of Rwanda lives in rural areas, where Rwanda's economy is heavily dependent on agriculture and related rural economic activity. Following rapid economic growth in the 1960s and 1970s, the 1980s and early 1990s brought a sharp economic downturn precipitated by deteriorating terms of trade, high population growth on a very limited land base, and relatively low agricultural productivity. As a result of the war and genocide of 1994, real GDP fell by a further 50%. There has been significant recovery in the last five years, but real GDP is still only 85% of pre-war levels. Poverty and malnutrition are widespread. With high annual population growth of 3.6 percent, substantial increases in both agricultural productivity and off-farm rural income are critical if Rwanda is to reduce poverty and improve household food security. The purpose of this strategic objective is to increase availability and access to agricultural inputs for rural families through expanded production, better market access, an improved environment for small-scale enterprise, and through increased capacity to monitor and respond to those most affected by food insecurity. This strategic objective is closely linked to the U.S. Mission's Performance Plan goals of economic development and humanitarian assistance. The economic development goal is to expand and diversify the productive base of the economy, particularly through support for private agriculture-based enterprises and human capacity development. The humanitarian assistance goal is to provide assistance to foster reintegration, promote reconciliation and prevent renewed outflows of refugees. USAID resources will help diversify economic opportunities for poor rural households in program areas by increasing both agricultural production and purchasing power, thus reducing vulnerability to food insecurity. Beneficiaries of this strategic objective include: 1) farmers in target communities who will benefit from increased production and income, increased availability of agricultural inputs at reasonable prices and improved market access; 2) an estimated 20 technical staff plus decision- and policy-makers within the Food Security Technical Unit of the Ministry of Agriculture (MOA) who will receive training in various agricultural disciplines; 3) rural micro and small entrepreneurs receiving support in terms of skills development, information exchange, networking, and advice on financial management; and 4) about 100 agricultural technicians trained in different disciplines and skills. Key Results: The Office of Foreign Disaster Assistance (OFDA) funded emergency relief assistance for 680,000 internally displaced persons (IDPs) in the northwest during 1998. In 1999, OFDA provided funds to coordinate emergency assistance in all sectors, undertake some household assessments, support nutrition rehabilitation and health centers, and provide food security assistance (mainly seeds and tools) for 100,000 families to restart farming activities. OFDA funding to Rwanda was $4.3 million in FY1998 and $3.3 million in FY1999. Through P.L. 480 and disaster assistance, USAID has been the major donor in a stabilization strategy. As a result of increased production and improved security in the northwest, the prices of staple crops have either stabilized or decreased this year despite drought conditions in other parts of the country. Performance and Prospects: During 1997, USAID was instrumental in meeting the emergency needs of 1.5 million returnees with timely and effective use of humanitarian assistance. During 1998, USAID provided resources to meet the needs of 680,000 IDPs. The past year was the first in five years that the population in the northwest has had a peaceful and normal agricultural season. Since the northwest was not affected by drought, early estimates indicate that the overall food production in Rwanda for 1999 will be higher than that of 1998. Surplus food production in the northwest has helped to compensate for food shortages in the rest of the country that were caused by erratic climatic conditions. Irish potatoes have been purchased and have been distributed by the Government of Rwanda (GOR) to vulnerable families in the drought-affected areas. USAID is working in cooperation with the Ministry of Commerce, Cooperatives and Industry (MCCI), the United Nations Industrial Development Organization and the World Bank to improve food distribution from the northwest. This strategic objective has had a significant impact on the lives of many Rwandans as a result of USAID's major contribution to averting humanitarian disaster. The partnerships USAID has forged with the local authorities, the central government, and U.S. private voluntary organizations (PVOs) are making an important contribution to the country's development. The USAID program focuses on three areas essential for improved agricultural production and increased food security: policy, technology, and marketing. USAID is currently addressing these three areas in several ways. In terms of policy, USAID is partnering with Michigan State University (MSU) to increase the data management, analytical and policy planning capacity of the MOA. This assistance has led to the reestablishment and revitalization of the ministry's Food Security Technical Unit (FSTU) allowing it to undertake data collection and analyses on major policy issues, such as the use of chemical fertilizer, impact of the existing land tenure system, and role of associations and cooperatives. After the devastation of the civil war, all market and crop data were lost. The reconstituted agricultural database is now being analyzed and validated for dissemination. In the area of technology, USAID is working with a coalition of national, regional and international research institutions and technology transfer agents to assist the GOR in improving agricultural productivity. New technology to increase food production, income, and value-added processing is being introduced. In the southwest of the country, new and improved terracing systems and agronomic practices are being pioneered. These technologies are instrumental in increasing agricultural productivity in regions where the terrain is steep and the soils poor. The leading Rwandan institution providing new improved varieties of inputs is the Institute of Science and Agricultural Research (ISAR), which lost skilled manpower and facilities during the events of 1994. USAID, through the International Institute for Tropical Agriculture (IITA), is providing ISAR with technical assistance to rebuild its capacity to respond to the need for demand-driven technologies. Work has begun on six staple crops, the results of which are being diffused through linkages with non-governmental organizations (NGOs) and commodity networks. USAID is working to improve the marketing of agricultural produce through the design of a long-term agri-business program that will assist in identifying and overcoming constraints that have created disincentives for the development of internal markets. USAID links its activities in policy, technology and marketing to training and development of farmers' associations and cooperatives. Two approaches are employed: 1) intensive involvement and support of NGOs and associations with all aspects of activities throughout the production -- processing -- marketing chain; and 2) broad-based, practical institutional support which creates sound models for association development and training. Under the P.L. 480 Title II emergency monetization program, proceeds from the sale of commodities are used to decrease dependence on external food aid by increasing and diversifying food production through food security programs. A large portion of the monetization proceeds is intended to support NGOs and associations. Over 270 small traders have participated in the commodity sales tenders and a successful tender process has been introduced to Rwanda. However, the implementation of the emergency monetization program has been less than optimum in large measure due to cumbersome disbursement procedures and the limited capacity of local NGOs to implement projects without prior training. Measures have been implemented to speed the disbursement process and a local training NGO has been contracted to provide training and follow-up to NGO grantees. To date, 10 projects worth a total of $3 million have been funded in a variety of areas, including forestry, fisheries, crop and livestock agriculture. Development Assistance proposals, co-funded by USAID's Office of Food for Peace and USAID/Rwanda, are planned to enhance the impact of on-going agricultural programs implemented by U.S. PVOs that work with the rural farm population to: 1) improve agronomic techniques and practices; 2) improve soil and water conservation; 3) multiply seeds and distribute livestock and tools; and 4) improve farm management and business skills. Over 15,000 families and 300 farmers' associations have benefited to date from P.L. 480 Transition Activity Proposals. Since 1996, the USAID Office of Transition Initiatives (OTI) has funded the Women in Transition Initiative (WIT) that has supported activities of over 1,668 rural women associations' and directly assisted 34,522 women association members, benefiting more than 190,000 people. Training and funding has also been provided to 20 Women's Communal Funds (equivalent to women's community banks), which have been instrumental in empowering women in the rural areas to undertake income-producing, family welfare, or reconciliation activities. The WIT program has had impact on the production of staple crops in targeted communes, reducing food prices and eliminating the need for additional food distributions. A recent evaluation of WIT confirmed the program's results and impact in the broader context of transition policy. As a complement to WIT, in FY 2000, USAID will fund a rural micro-credit program to assist Rwanda's saving and loan institutions and associations to increase their management and technical capability and thereby significantly increase the flow and access of small unsecured loans to rural entrepreneurs and farmers. Possible Adjustments to Plans: A critical problem in revitalizing the agricultural sector in Rwanda is the lack of adequate and skilled human resource capacity. In FY 2000, using Education for Development and Democracy Initiative resources, USAID plans to begin implementation of activities with the National University of Rwanda and the MOA in partnership with a U.S. land-grant university intended to result in improved human resource capacity to increase household food security. Other Donor Programs: The United Nations Development Program (UNDP), the European Union (EU), and the World Bank are working to enhance broad-based economic growth by empowering farmers' associations, cooperatives and the formal private sector to respond to market demand and improve investment in rural sector production. The EU, Japan, Italy and the Food and Agriculture Organization (FAO) are involved in food. Belgium supports an integrated agriculture program in the southeast and Germany supports a seed multiplication program in the eastern part of the country. In terms of level of donor assistance, the USG has been the leading bilateral food aid donor. For the period 1995-1998, USAID has been the fourth leading donor in the area of support for agriculture programs behind Belgium, Germany and Italy. Principal Contractors, Grantees or Agencies: MSU, IITA, World Vision for Rural Development, International Refugee Committee, Save the Children, Food for the Hungry International, Catholic Relief Services, Concern International, RONCO, Inc., ACDI/VOCA, Chemonics International, and other U.S., Rwandan, and international NGOs, international organizations and private sector firms. Selected Performance Measures: Baseline (1997) Actual (1998) Target (1999) Target (2000) Target (2001) Increased GOR capacity to plan & implement policy no no FSTU begins data collection FSTU data analysis FSTU analyses inform policy Increased off-farm enterprise (rural enterprise development minimal minimal minimal enterprises created off-farm income growth U.S. Finance Table (Microsoft Excel file) ACTIVITY DATA SHEET PROGRAM: Rwanda TITLE AND NUMBER: Multilateral Debt Relief Trust Fund (MDRTF), 696-004 PLANNED FY 2000 OBLIGATION AND ACCOUNT: $0 PROPOSED FY 2001 OBLIGATION AND ACCOUNT: $0 STATUS: Continuing INITIAL OBLIGATION: FY 1999 ESTIMATED COMPLETION DATE: FY 2000 Summary: Recent analyses by the World Bank (IBRD) and the International Monetary Fund (IMF) of Rwanda's economy demonstrate that the Government of Rwanda (GOR) is making good progress in restoring the basic economic functions and infrastructure needed to recover from the destructive effects of the genocide and civil war of 1994 and achieve acceptable rates of economic growth to reduce the high incidence of poverty. The IMF approved an Enhanced Structural Adjustment Facility (ESAF) in June 1998 and the GOR has adopted a Policy Framework Paper (PFP) which details the reforms required to create sustainable economic growth. The PFP aims at maintaining economic stability and appropriate public sector spending policies, developing market based agriculture, promoting private sector growth and strengthening public sector management capacity. However, Rwanda remains one of the poorest countries in the world, with an estimated 70% of its households living below the poverty line. The IBRD estimates that to reduce the rate of poverty to the 1985 level of 40% of households an economic growth rate of 7% will be required along with a shift in public expenditures from security to the social sectors. Rwanda's ability to provide increased domestic resources to the social sectors is severely constrained by a current financing gap of about $19 million and by its high level of external indebtedness, which at the end of 1999 stood at $1.2 billion or 61% of GDP. In order to address these constraints, a 1998 Donors' Conference in Stockholm established a Multilateral Debt Relief Trust Fund (MDRTF) to be capitalized by the donor community and administered by the IBRD. The purpose of the Fund is to assist Rwanda to manage its multilateral debt over a three-year period and to promote improved public sector capacity. Over $55 million was pledged by the donor community for the Fund, of which the USG pledged $5 million. The primary purpose of the USG contribution to the Fund is to help Rwanda qualify for accelerated debt relief under the IBRD/IMF Heavily Indebted Poor Countries (HIPC) Initiative. The IBRD and the IMF adopted the HIPC Initiative in 1996 to help poor countries with appropriate policies and positive performance to relieve their debt burden and release domestic resources for economic and social development purposes. Key Results: At the 1998 Stockholm Conference the donor community conditioned the establishment of the MDRTF on the GOR meeting increased targets for social spending. The targets were not quantified, but the donors, including the United States, sought assurance that the GOR would increase its commitments to the costs of delivery of social services. The IBRD has been monitoring the GOR's commitment and has found that public sector social spending has risen steadily each year and is scheduled to continue to rise. Specifically, the IBRD has determined that budgetary spending on health and education is projected to increase by just over 40% each in 1999 and by almost 35% and 10% in 2000 respectively. Social sector spending as a percentage of total government finances also increased from 13.3% in 1997 to 19.9% in 1998 and an estimated 26.6% in 1999. The GOR is planning to further strengthen the monitoring of key poverty and social performance indicators. A special observatory within the Ministry of Finance is being established which will work with the other Ministries to undertake specific beneficiary surveys to measure access of the population to basic social services. The $5 million USG commitment to the MDRTF is expected to be disbursed by the end of the second quarter of FY 2000. The GOR has fulfilled all of the Conditions Precedent to disbursement. Performance and Prospects: The GOR is living up to its pledge to increase social sector spending and to take appropriate economic measures to meet IMF targets in the ESAF. The GOR successfully negotiated with the Paris Club in 1998, obtaining a 67% reduction of its debt and a rescheduling of the remainder on affordable terms. It is on track for inclusion in the HIPC Initiative within the next two years. However, if the growth of the economy does not meet expectations or if political and military stability in the region deteriorate, the GOR will become increasingly hard pressed to meet its commitments. Although the USG contribution represents less than 10% of the funds pledged by the donor community to the MDRTF it is very important to the GOR that the United States continues to support debt relief, given its influence with international financial institutions. The expectation by the donor community that Rwanda will also continue to shift the focus of its budgetary expenditures more towards the important social sectors as a condition for debt relief is also influential in keeping the GOR on track in reorienting its priorities. Possible Adjustments to Plans: No adjustments are anticipated in response to existing or potential problems connected with program implementation. Other Donor Programs: The United Kingdom, Sweden and the Netherlands have already contributed to the MDRTF and several others have indicated a willingness to contribute. Principal Contractors, Grantees, or Agencies: The World Bank (IBRD) is the grantee for the MDRTF. Funds will be disbursed directly to the account of the IBRD for the payment of Rwanda's debts to the IBRD, the African Development Bank (ADB) and the International Fund for Agricultural Development (IFAD). U.S. Finance Table (Microsoft Excel file)

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