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Georgia
FY 2001 Program Description and Activity Data Sheets
>> Regional Overview >> Georgia Overview FY 2001 Program
The new program strategy for Georgia integrates institutional and policy reform at the national level with local and grassroots capacity building. USAID activities are an integral part of the Mission Performance Plan (MPP), conforming closely to the objectives in the MPP.FY 2001 funding is requested to support economic and energy sector restructuring, strengthen the private sector, bolster civil society, develop democratic local governance, promote the rule of law and fight corruption. Funding also is sought to advance social reform at the community level, especially in the regions outside of the capital city.
In the economic area, activities will build on recent USAID progress in privatizing state-owned firms, creating a legal and regulatory framework to help stimulate the growth of small and medium enterprises, and fostering the development of a competitive capital market. USAID will support small and medium enterprise development at the regional and local levels while continuing to target policy reforms at the central level. FY 2001 funding will support strategic objectives in enterprise growth and development, fiscal reform, private financial sector development, and agribusiness. In the energy sector, USAID strives to increase five-fold the energy provided by private distribution companies, and likewise increase cutting and Special Initiatives, USAID's principal activity includes a training program (partly U.S.-based) focused on developing Georgia's human resource base. These programs advance USAID strategic goals across the entire portfolio.
In addition, the U.S. Congress has directed the Administration to provide FY 2000 FREEDOM Support Act (FSA) funds " for confidence-building measures and other activities in furtherance of the peaceful resolution of the regional conflicts, especially those in the vicinity of Abkhazia and Nagorno-Karabagh." USAID missions in the Caucasus countries are working with USAID/Washington and the U.S. Department of State FSA Coordinator to design and implement such activities.
About half of the FSA request for Georgia is for programs implemented by other U.S. Government agencies. In FY 2001, there will be continued emphasis on providing significant FSA support to Georgia through the Border Security and Law Enforcement Assistance Program to enhance the country’s export control, border security, law enforcement, and customs capabilities. Additionally, funds will be provided to programs designed to redirect former weapons of mass destruction scientists to peaceful, civilian activities. Other U.S. Government agencies participating in technical cooperation programs with Georgia through inter-agency transfers from USAID include the Departments of Justice (anti-corruption initiatives); Treasury (tax and budget reform); State (USIA exchanges, humanitarian assistance transport); and Agriculture. Complementary programs, such as the one supporting U.S. Treasury advisors, are coordinated closely with USAID-funded technical assistance activities to maximize the total impact of U.S. assistance.
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ACTIVITY DATA SHEET
PROGRAM: Georgia
TITLE: Accelerated Development and Growth of Private Enterprises, 114-013
PLANNED FY 2000 OBLIGATION AND FUNDING SOURCE: $22,315,000 FSA
PROPOSED FY 2001 OBLIGATIONS AND FUNDING SOURCE: $16,500,000 FSA
STATUS: Continuing
INITIAL OBLIGATION: FY 1993 ESTIMATED COMPLETION DATE: FY 2003Summary: Business development in Georgia is essential to create jobs, generate income, expand services, increase tax revenues, and produce other economic benefits. Georgia, with strong support from international donors, has made significant progress in solving some of the nation’s most pressing economic problems by implementing a series of policies enabling economic stabilization and structural reform. These policies have cut inflation, liberalized prices, and established and stabilized a new currency. Georgia's positive economic growth in the last four years attests to the success of these macroeconomic policies as well as the depth to which its economy had sunk in the wake of the collapse of the Soviet Union. However, a number of impediments to enterprise development remain, which were identified during the spring 1999, strategic planning process, including limited access to credit, an incomplete commercial law system in support of private sector development, issues with private ownership of land, and pervasive corruption. These concerns pose a significant constraint to continued economic growth in Georgia.
To support accelerated development and growth of private enterprises in Georgia, USAID is undertaking a broad, multi-year economic reform program, which includes comprehensive accounting reform, commercial law, land reform, and assistance to the small and medium enterprise sector. While building on past efforts to improve the policy and legal environment for private enterprise, USAID also will promote initiatives that can rapidly and directly demonstrate the practical, people-level benefits of a market-oriented economic system. The direct beneficiaries of this objective are private enterprises, although Georgians in general stand to gain from an active, growing private sector. Activities under this objective directly support Mission Performance Plan goals of ensuring continued recovery of Georgia’s economy and giving more opportunities to the average Georgian citizen.
Key Results: As a result of the USAID strategic planning process last spring, this objective has been redefined. Its focus is now on four major results: (1) increased access to credit for SMEs and micro-entrepreneurs; (2) reduced transactions costs for enterprises; (3) ffunctioning land and real estate market to support SME growth; and (4) selected agribusiness opportunities identified and facilitated.
Performance and Prospects: Since USAID initiated its market reform program in 1996, economic reforms have been implemented through legislation in the areas of tax and fiscal policy, accounting, enterprise agricultural land privatization and registration, and securities and entrepreneurship law. With support from USAID, Georgia acceded to the World Trade Organization in 1999. USAID partners, including the U. S. Treasury Department, have mobilized tax and budget specialists to provide technical support for the country's revenue raising effort. The Government of Georgia has passed a land law declaring that all land associated with private enterprises automatically is owned by those enterprises. The government also has approved implementing regulations that authorize the registration of ownership of such land. Titles for urban enterprise land have been issued, plots have already been resold, and a market has begun to operate. In support of agricultural land privatization, USAID has demonstrated that it is possible to survey, title and register small-holder plots at a cost of about one-dollar per parcel. About 300,000 parcels will be titled and registered by December 1999, with a target of 700,000 in 2000.
USAID provides assistance with the privatization of strategic government assets by developing fair and transparent tender procedures and other conditions necessary to attract potential international investors. In 1998, the sale of the Telasi Electric Distribution Company represented the first successful privatization of a strategic enterprise. USAID is providing assistance in the early stages of privatization of the telecommunications system, and has posted profiles of major enterprises on the Internet to attract foreign investors.
With USAID leadership, International Accounting Standards (IAS) and International Standards of Auditing (ISA) have been adopted. Intensive training has taken place to convert more than 300 Georgian enterprises to IAS from Soviet-era accounting methods. USAID has assisted the National Bank of Georgia (central bank) to incorporate information technology systems necessary to ensure its ability to interface with the commercial banking sector. An integrated accounting system and electronic interbank payments system is being established to provide technical capacity for real-time settlements and payments within Georgia.
With USAID assistance, the Government of Georgia passed a new securities law, creating the foundation for a modern capital markets system. USAID and the World Bank are cooperating to provide two foreign commissioners to serve on the National Security Commission. USAID has provided technical assistance for the professionalization of independent share registry management, and has carried out related extensive public education activities throughout Georgia.
USAID will pursue enterprise-level interventions in selected geographic regions of the country, while continuing targeted support for reforms and restructuring at the central level. New activities will address needs in the general areas of credit and banking services, development of local capacity for business services and training, and creation of business-friendly environments at the local level by working with community-level associations and municipal governments. Special attention will be focused on the participation of women entrepreneurs, expanded outreach to the regions, and opportunities in the agricultural sector. To date, USAID partners have established models of successful lending to small, medium, and micro-enterprise. As a result, the number of micro-borrowers is expected to increase by at least 35% during the next year. These new approaches will help a broader spectrum of citizens enjoy the benefits of reform. If funding is cut prematurely, there is a high risk that apathy will set in among the general population and people will stop supporting the transition to open markets and democracy.
Possible Adjustments to Plans: The Government of Georgia is considering the creation of a Ministry of Revenue. If such a ministry is established, USAID may provide technical assistance to the new minister and his staff through the Barents tax/fiscal team. USAID conducted an assessment of the legal sector in Georgia. Recommendations for aid on commercial law and anti-corruption may be addressed in early FY 2000.
Other Donor Programs: The World Bank, EBRD, EU TACIS, and UNDP are supporting Small and Medium Enterprise development with various projects including access to financing, technical assistance, grants, and institutional development.
Principal Contractors, Grantees, or Agencies: USAID activities are implemented by the Center for Institutional Reform in the Informal Sector, Shorebank/FINCA (business credit), and private voluntary organizations such as the International Executive Service Corps, ACDI/VOCA and the Eurasia Foundation (SME development, including agribusiness).
Selected Performance Measures:
Baseline
Actual
(1998)Target
(1999)Target
(2000)Target
(2001)Private sector share of employment
28% (1995) 72% 73 76 80 WTO accession
No (1997) No Yes Increase in number of microentrepreneur borrowers from USAID-assisted organizations
8,180 (1998)
** 9,751 13,366 18,943 Real value of loans by commercial banks 223 (1998) ** 292 468 679 Number of land parcels traded 25 (1998) ** 492 840 1300 . ** These are new indicators resulting from the spring 1999 strategic planning process.
ACTIVITY DATA SHEET
PROGRAM: Georgia
TITLE: A More Economically Sustainable and Environmentally Sound Energy Sector, 114-015
PLANNED FY 2000 OBLIGATION AND FUNDING SOURCE: $5,800,000 FSA
PROPOSED FY 2001 OBLIGATIONS AND FUNDING SOURCE: $7,500,000 FSA
STATUS: Continuing
INITIAL OBLIGATION: FY 1996 ESTIMATED COMPLETION DATE: FY 2003Summary: The purpose of this objective is to support a more economically sustainable energy sector. USAID's emphasis is two-fold: (a) to create a climate that will attract private sector participation and ownership, with subsequent improvements in the management of resources and provision of services; and (b) to improve energy sector efficiency in economic terms, with subsequent increases in capital and operating resources. Beneficiaries of this assistance are the approximately 1.3 million residential household and commercial consumers of electricity and potentially an equal number of natural gas customers. Activities under this objective will promote the Mission Performance Plan by supporting privatization and reform in the energy sector which will lead to more efficient energy management and usage and will increase U.S. investment opportunities.
Key Results: USAID-funded activities focus on four results: (1) increased private sector participation in the energy sector; (2) legal and regulatory environment more conducive to private investment in the energy sector, (3) environmentally sound laws adopted and implemented in the energy sector, and (4) increased efficiency in the energy sector.
Performance and Prospects: New laws have laid the groundwork for privatization of local electricity distribution companies, effective regulation of the energy sector, and fair and transparent exploration and production of oil and gas reserves. Following the successful privatization of the Telasi Electric Distribution Company last year, the Government of Georgia -- with USAID and World Bank assistance -- issued international tenders for the privatization of most of the remaining local electricity distribution companies and most of the state-owned generation facilities. This included 67 distribution companies and three groups of hydro and thermal generation plants. Many of the smaller packages were not of interest to investors because of their small size necessitating a future restructuring of the tender packages and investment profiles. Negotiations for this privatization effort are currently ongoing and the award of the major contracts is expected by year-end 1999. USAID also assisted in the international tender for the largest natural gas distribution company in the country, Tbilgazi, in the Tbilisi area. Negotiations are also still in progress. Generating international interest in the energy sector of Georgia is an extremely challenging prospect given the number of similar investment options worldwide at this time.
USAID continued to supply technical, legal and regulatory assistance to the Georgia National Energy Regulatory Commission (GENERC) as they expanded into the areas of gas supply, transmission and distribution. The Commission has been operating effectively for over one year, effectively raising the rates to reflect the cost of service. Continued support was also provided to the Wholesale Electric Market that became active in July of 1999. Through the Market, some local distribution companies paid (for the first time ever) for electricity delivered within their areas and subsequently, some of the small hydro-generator sites received their first payment in years for electricity produced and supplied. Technical assistance continues to develop operating rules for the Market to establish procedures for terminating delivery to those distribution companies and sites that do not pay for electricity consumed. USAID is currently working with the Government of Georgia and other donors to establish a management contract for the operations of the Market, electricity dispatch, and electricity transmission. Under such a contract, the Market would be able to move more quickly and decisively to increase revenue generation and payment transactions.
Another key success was the assistance provided in the drafting and passage by the Georgian Parliament of the new "Law on Oil and Gas" in April 1999. The new law provides for the establishment of a single agency to negotiate contracts and permits required for the exploration and production of oil and gas reserves. The agency formally started on October 15, 1999 with the appointment of a Director. Training has begun with two seminars sponsored respectively by the Minerals Management Services of the U.S. Department of the Interior and U.S. Energy Association.
A major activity begun in 1999 and continuing into 2000 will be the drafting and submission to the Georgian Parliament of a new energy efficiency law which will promote incentives to conserve and substitute more efficient fuel sources. The existing laws are weak and based on penalties, which promote abuse and corruption.
Moving more quickly than expected, the Government of Georgia passed legislation in July 1999 that prohibited entirely the sale of leaded gasoline by January 2000. While this is clearly a laudable step, implementation in such a short time frame will prove to be difficult. USAID is considering further options to help in the transition through the technical assistance team presently in place.
A more efficient energy sector based on private sector principles is part of the enabling environment needed to attract direct foreign investment. A premature cut in funding would have a negative impact on U.S. investment opportunities in Georgia.
Possible Adjustments to Plan: As more of the energy sector is privatized, USAID will emphasize the commercial aspects of the business with the local distribution companies and the consumers throughout Georgia. Particular emphasis will be placed on improving revenue generation with the local distribution companies.
Other Donor Programs: The European Union continues to work in tariff structure, accounting, billing, and metering practices, while the World Bank is conducting a loan appraisal of maintenance and rehabilitation work in electric generation, transmission, and distribution systems. The European Bank for Reconstruction and Development (EBRD) approved a loan to a local power company to rehabilitate the Rioni hydro station and improve operations and water treatment. The EBRD is also continuing to develop loan packages to repair the Inguri Hydroelectric Station, the largest hydropower station in the country. EBRD is also considering further loans to AES-Telasi and other local distribution companies for a re-metering program. Because of the shortage of revenues generated in the sector, many of the International Financial Institutions have been unable to disburse against their respective credits.
Principal Contractors, Grantees, or Agencies: There are currently two institutional contractors: Hagler Bailly (restructuring, privatization and legal assistance) and the US Energy Association (training in all energy areas).
Selected Performance Measures:
Baseline
Actual
(1998)Target
(1999)Target
(2000)Target
(2001)Number of relevant energy sector laws and regulations adopted
1 (1997) 1 2 5 10 Percentage of total electric energy provided by private generation companies
0% (1996) 5% 7% 10% 25% Actual use of electricity on a per capita GDP basis (kwH/GDP)
1.48 (1998)
** 1.16 1.1 1.04 ** This is a new indicator resulting from the spring 1999 strategic planning process as a measure for improved energy efficiency.
ACTIVITY DATA SHEET
PROGRAM: Georgia
TITLE: Legal Systems that Better Support Implementation of Democratic Processes and Market Reforms, 114-022
PLANNED FY 2000 OBLIGATION AND FUNDING SOURCE: $2,950,000 FSA
PROPOSED FY 2001 OBLIGATIONS AND FUNDING SOURCE: $2,000,000 FSA
STATUS: Continuing
INITIAL OBLIGATION: FY 1996 ESTIMATED COMPLETION DATE: FY 2003Summary: This objective facilitates the development of legal systems that better support the implementation of democratic processes and market reforms. While judges and attorneys are currently the immediate beneficiaries of activities under this objective, the Georgian public will benefit from a legal system administering the rule of law (ROL). In FYs 1999 and 2000, there has been excellent progress in establishing the legislation and systems required for improved administration of justice in Georgia. However, full and equitable access to justice does not yet exist. The lack of access to justice has had a negative impact on human rights and the lack of effective legal recourse in commercial disputes has hampered economic development. In order to ensure the honesty and integrity of the reformed judiciary, the Government of Georgia must follow through on its commitment to pay the newly qualified judges an increased salary. The new judges need to demonstrate that they can make fair and impartial decisions in accordance with the law.
In FY 2001, USAID continues to provide technical assistance for key pieces of legislation, including the Judicial Disciplinary Law, the Law on the Bar, as well as major amendments to the Law on the Courts, the Criminal Code, and the Criminal Procedure Code. Furthermore, USAID is planning to implement a follow-up to its successful anti-corruption initiatives under the high-profile Five-Point Program conducted jointly by the Governments of the United States and Georgia. By strengthening the judicial system and legal institutions, this objective supports Mission Performance Plan goals of establishing a more open and fair climate for business and of better safeguarding the rights of citizens through a transparent system of laws and courts.
Key Results: During the spring 1999, strategic planning exercise, USAID redefined the results needed to achieve this objective. Principal results are now: (1) improved access to the administration of justice; (2) more effective, transparent, and fair public and private sector legal institutions; and (3) enactment of policies, laws, and regulations promoting democratic processes and a market-based economy.
Performance and Prospects: Overall, this objective has exceeded expectations. Judicial reform has achieved highly significant accomplishments in the past year, with USAID in the forefront to help establish a groundbreaking merit selection process, based on judicial qualification exams and vetting procedures. By the end of 1998, 10% of the judges sitting on the bench were officially qualified. This percentage should increase to at least 45% and 65%, respectively, in the following two years. Incompetent and corrupt judges were replaced with 176 qualified judges newly appointed to the bench, who are now in the courtrooms deciding cases. In addition, one of Georgia's leading legal reformers was recently appointed as Chairman of the Supreme Court along with 12 other reformist justices. Two new appellate courts and a new court administration system were established in May 1999.
USAID has fostered the emergence and strengthening of the Georgia Young Lawyers Association (GYLA), a progressive and independent private bar association. GYLA enhances legal professionalism and provides effective legal training. USAID-assisted local NGOs, such as Article 42 and the Center for the Protection of Constitutional Rights, support legal clinics that provide practical experience to law students and conduct public awareness campaigns to inform people of their rights and the means to access legal institutions.
The Parliament of Georgia has been one of the most active and effective in the NIS. Over 500 laws supporting human rights, democratic institutions and a market economy have been passed since1995. Under the Five-Point Program, USAID provided assistance to create a legal framework to fight corruption, including passage of the Administrative Code, the Licensing Law, the Law on Enforcement of Judgements and the Criminal Code. USAID is supporting implementation activities, such as specialized training and public education campaigns for these laws. Activities to strengthen judicial ethics and discipline represent another critical area for attention, including the passage of a Judicial Discipline Law, which is a requirement of the Five-Point Program and an essential element to complete the judicial reform package.
To date, reform of the judiciary has focused on reform-minded elements of the three branches of government at the national level. This approach will continue to meet existing need and to maintain influence and consolidate assistance investments. However, demand-side activities will increase as private sector capacity grows and individuals seek to resolve business disputes through the judicial system. These type of activities will focus on empowering citizens through public awareness of their legal rights and supporting legal access mechanisms to pursue these rights. To ensure that the average Georgian citizen directly benefits from reform laws, the new activity will also target regions outside of Tbilisi. Indicators to track progress in this new area will be developed over the coming year.
Possible Adjustments to Plans: USAID will be developing follow-on activities to the anti-corruption portion of the Five Point Program.
Other Donor Programs: Key donors working towards this strategic objective along with USAID include the World Bank, EU, Soros, GTZ, UNDP, and the Council of Europe (COE). The World Bank has taken the lead in providing assistance for court administration. The EU, Soros and the World Bank have extensive judicial training programs. Soros also plans to establish a masters of law program. UNDP provides assistance to the Ombudsman (an organization similar to a public defender), Parliament's anti-corruption committee and the Constitutional Court's public outreach program. The COE and Soros will provide assistance for the transfer of the penal system from the Ministry of Interior to the Ministry of Justice. The EU and UNDP have a variety of gender legal activities.
Principal Contractors, Grantees, or Agencies: USAID-sponsored activities are implemented by the American Bar Association’s Central and East European Law Initiative (ABA/CEELI) and AMEX International, Inc. The latter organization will be replaced by a contractor under a new rule of law project in FY 2000. ABA/CEELI helps improve the professionalism of the Georgia Young Lawyers Association (GYLA), the largest and most progressive private bar association in Georgia. Article 42, a legal advocacy NGO, receives support through ABA/CEELI to operate a legal clinic that provides practical experience to law students. AMEX also works with GYLA on publicity campaigns for new laws and continuing legal education seminars. GYLA and Article 42 play a critical role in increasing citizen access to the administration of justice. On the supply side of USAID assistance, primary Georgian counterparts include Parliament, the Supreme Court, the Constitutional Court and selected lower courts, the Council of Justice, and the Ministry of Justice. USAID also plans to work with the Georgian Judges of Georgia (a private judges’ association), and the soon-to-be-established Conference of JudgesLaw enforcement constitutes an important component in any anti-corruption effort. Working with prosecutors and the police, however, goes beyond USAID’s manageable interest. The U. S. Department of Justice (DOJ) has begun activities in Georgia and may provide technical assistance to prosecutors. USAID plans to work with the DOJ on a variety of issues, including anti-corruption.
Selected Performance Measures:
Baseline
Actual
(1998)Target
(1999)Target
(2000)Target
(2001)Number of major legal reform laws/Amendments enacted
26 (1995) 11 4 4 N/A Cumulative % of qualified judgeson bench
0% (1997) 10% 45% 65% 75% Number of targeted institutions with adopted Regulations pursuant to the Administrative Code
0 (1998)
** 0 0 2 Percentage of private attorneys qualified by exam* 0 (1998) ** 0 0 25% * Contingent on passage of a Law on the Bar in 2000
** These indicators were introduced through the spring 1999 strategic planning process. Baseline begins in 1998 and performance targets begin in 1999.
ACTIVITY DATA SHEET
PROGRAM: Georgia
TITLE: More Efficient and Responsive Local Governance, 114-023
PLANNED FY 2000 OBLIGATION AND FUNDING SOURCE: $5,250,000 FSA
PROPOSED FY 2001 OBLIGATIONS AND FUNDING SOURCE: $6,550,000 FSA
STATUS: Continuing
INITIAL OBLIGATION: FY 1996 ESTIMATED COMPLETION DATE: FY 2003Summary: In the wake of civil and ethnic wars in the early nineties, Georgia succeeded in curbing lawlessness and establishing political and economic stability. Significant advances have been made in the creation of a vibrant civil society and enhanced governance. However, the legal and institutional reforms achieved over the past five years have had little, if any impact on the majority of Georgia's population, who live in the regions. During this period, local officials appointed by the central government have functioned in isolation, with few resources allotted them by the central government other than near-total that capitalize on each region's unique resources. Indirectly, all citizens living outside the Capital will benefit from the improved community services that will result from this achievement of this objective. Mission Performance Plan goals will be supported under these activities by strengthening local governments and civil society in the regions throughout the country.
Key Results: To achieve this objective, USAID has structured its program to achieve three major results: (1) increased community participation in local government oversight and political processes; (2) increased local government capacity to plan and manage resources efficiently; (3 increased partnerships between local government, business and communities to provide services.
Performance and Prospects: USAID has been the most active donor in Georgia in the area of civil society strengthening. Progress toward achievement of this objective has exceeded expectations. With substantial USAID assistance, the number of NGOs active in public policy debate has grown from 4 in 1994 to over 100 today, and many of them have regional branch offices. Civil society is also being strengthened at the local level with the establishment of Citizen Advisory Committees (CACs) which bring together citizens in issue-based town meetings and advocate for more transparency in local government, beginning with open budget hearings. USAID also helped create independent media from scratch, growing to the current total of 34 independent TV stations nationwide, and a new 3-year activity has been launched to train print journalists.
The November 1998 elections of local councils and the passage of legislation to facilitate local governance represent significant milestones for decentralization in Georgia. USAID assistance in electoral reform provides legal analysis of election legislation, technical assistance to the Central Election Commission in election administration, including voter registration, training for election officials at every level, and voter motivation and education campaigns. USAID also supports political party strengthening, and training and deployment of domestic observers for elections. Political parties are beginning to understand the necessity of public outreach, and in 1999, four of the largest parties adopted a USAID-supported caucus system for the selection of majority candidates--the first public consultation of its kind in Georgia's history.
In the area of local government, since 1997, USAID has provided assistance with the development of legislation on self-government, municipal finance and local budgets, support for the local elections, the provision of training and handbooks for 688 newly elected officials to date and modest grant programs for local initiatives. As noted earlier, the November 1998 elections of the first local councils has been a milestone in strengthening governance at the local level.
Possible Adjustments to Plans: Building on Georgia's initial steps in decentralization, USAID is currently designing a major local governance reform activity which will expand civil society and media development at the local level, increase the capacity of local officials to plan and manage resources efficiently, and improve services through local public-private partnerships.
Other Donor Programs: USAID plays a lead role in this area due to its broad and comprehensive approach to civil society and local governance strengthening. The World Bank focuses on municipal infrastructure development, which should improve economic conditions in selected municipalities over the strategy period. Other donors fill equally valuable niches, such as the UNDP's prominence in support of Georgian think-tank publications that enrich current political analysis, and Great Britain's support for tailored journalism skills training. The European Union, Soros and the British Know-How Fund are currently designing complementary municipal government programs.
Principal Contractors, Grantees, or Agencies: USAID-sponsored activities are implemented by the International Foundation for Electoral Systems (IFES), the National Democratic Institute (NDI), the International Republican Institute (IRI), Internews, the International Center for Journalists, Eurasia Foundation, Initiative for Social Action and Renewal/Horizonti and the Academy for Educational Development (AED). During this past year, IFES, NDI, and IRI provided comprehensive technical assistance for local government elections. Eurasia awarded election-related grants. In close collaboration with these partners, Internews developed a special election program that included three call-in TV shows with political party candidates, a documentary on the elections, and a national press center on election day.
Selected Performance Measures:
Baseline
Actual
(1998)Target
(1999)Target
(2000)Target
(2001)Increased availability of objective info (No. of indep. TV stations)
0(1994) 26 34 36 40 Legislation passed 1) facilitating local government 2) increasing authority of local government
No (1996) Yes 1 Yes 1 No Yes 2 Local government elections held
No (1996)
Yes N/A N/A Yes Local budget law passed No (1998) No No No Yes Note: Performance measures will be refined during initial stage of the new local governance reform activity.
ACTIVITY DATA SHEET
PROGRAM: Georgia
TITLE: Reduced Human Suffering in Targeted Communities, 114-031
PLANNED FY 2000 OBLIGATION AND FUNDING SOURCE: $11,285,000 FSA
PROPOSED FY 2001 OBLIGATIONS AND FUNDING SOURCE: $11,000,000 FSA
STATUS: Continuing
INITIAL OBLIGATION: FY 1993 ESTIMATED COMPLETION DATE: FY 2003Summary: Since achieving independence in 1991, Georgia has faced a series of conflicts on its territory that have led to approximately 300,000 internally displaced persons (IDPs). The weak central government provides a completely inadequate safety net for the vulnerable part of the population. Job creation and real income growth have not been realized. Extreme economic stress at the household level prevents access to minimum living standards (health, education, water/sanitation, housing, and heating). Nearly 50% of the population is living at or under the poverty line. Lack of government resources, combined with this poverty rate, has left many with inadequate social services, including access to health care.
This objective helps to meet basic human needs, while emphasizing local self-help and conflict resolution activities. Activities under this objective contribute to political and social stability and assist in the peace process. Since 1993, USAID has provided humanitarian assistance to the Government of Georgia and through U.S. Non-Governmental Organizations (NGOs) and international organizations. This assistance met vital human needs and was a key component in the political and social stabilization of Georgia, allowing the Government of Georgia to embark upon democratic and economic reforms. The beneficiaries are internally displaced persons (IDPs) and other socially vulnerable groups throughout the country. Although the immediate cris
rformance and Prospects: USAID has provided assistance to over 750,000 Georgians since 1993, in order to reduce human suffering. USAID assistance has financed the importation of fuel oil and natural gas to help in meeting Georgia’s emergency winter fuel requirements. The stabilization program already has yielded positive results, allowing USAID to focus more on transitional and development programs. Within this objective, USAID continues to provide humanitarian assistance for the most urgent basic needs of vulnerable households, while simultaneously creating greater income-earning and employment opportunities. USAID has supported the creation of small businesses and sustainable employment for vulnerable households so that these groups can generate income to meet their own basic needs. Fifty-four community mobilization projects were successfully completed in 1998, six times the number completed in 1997.
USAID’s future self-sufficiency approaches will build on the efforts of international NGO programs. The International Federation of the Red Cross' (IFRC) community development activities and the International Rescue Committee's (IRC) self-reliance for IDP activities are examples. The Counterpart Winter Heating Assistance Program improves the efficient targeting of assistance by creating a database for 250,000 identified vulnerable households.
USAID-sponsored health partnerships between Georgian and American health institutions include initiatives in infection control, training of blood bank personnel (part of a larger program to improve the security of the nation’s blood supply), health management education, community-based public heath care, women’s health, Emergency Medical Services (EMS), and nursing. Assistance provided to UNICEFsupports strengthening the program of immunization and control of vaccine for preventable diseases. Georgia’s first nationwide survey of family planning and reproductive health is underway with a USAID sponsored Reproductive Health Survey and a major reproductive health communications campaign is under preparation with a launch date of Spring, 2000. It is hoped that these initiatives will assist in the reduction of Georgia’s extremely high abortion rate.
USAID supports a range of direct humanitarian programs for vulnerable populations, such as a nutrition program for 4,000 pensioners, psychosocial rehabilitation for vulnerable youth, economic self-reliance programs for IDPs from Abkhazia, an integrated community development program for IDPs in collective centers, home care to the most vulnerable IDPs, food distribution, and Food-For-Work programs.
USAID’s strategy to reduce human suffering is predicated on linking relief to development and addressing the root causes of conflict. The strategy focuses on assisting vulnerable communities in transitioning from relief to development by encouraging self-sufficiency. USAID will continue to maintain the capacity to respond to new challenges as they emerge. Conflict prevention is addressed by directly treating root causes of conflict, namely a lack of economic opportunity and a feeling of abandonment by the authorities. Health is an integral aspect of this program.
Through the recently launched Georgia Assistance Initiative and other planned activities, the strategy anticipates that the capacity of the Government of Georgia to respond to emergencies will be improved and strengthened. Communities will be better able to mobilize their own resources to meet their own needs, including the provision of better quality, primary health care. Over the long-term, USAID’s priority is to focus on capacity building within targeted communities so that they will become more self-sufficient.
Possible Adjustments to Plans: A peace settlement for Abkhazia would necessitate a rapid deployment of resources to assist the resettlement of displaced persons. Conversely, accelerated tensions could cause an eruption of conflict analogous to the May 1998 events and thus would necessitate an immediate humanitarian assistance response.
Other Donor Programs: Humanitarian and transition assistance is provided in close coordination with the United Nations, the European Union (EU), and other bilateral donors (such as Germany, Great Britain, the Netherlands, and Italy). The EU is particularly active in supporting programs in Abkhazia, where it is more difficult for USAID to operate. The World Bank, IMF, and EBRD have been working on improving the macro environment for social restructuring, such as the policy and institutional needs for strengthening the social safety net, and health and education reform.
Principal Contractors, Grantees, or Agencies: USAID-sponsored activities are implemented by the United Nations High Commissioner for Refugees, the United Nations Children’s Fund, the World Food Program, the American International Health Alliance, the International Federation of the Red Cross, the International Rescue Committee, Save the Children Federation and Counterpart International. Within the U.S. Government, the Department of State provides commodity transport and support to international organizations. The U.S. Department of Defense contributes excess medical equipment and other humanitarian commodities. USDA provides food to International Orthodox Christian Charities for direct distribution, concessional wheat sales to the Government of Georgia, and agricultural commodities for monetization to some U.S. NGOs.
Selected Performance Measures:
Baseline (1997)
Actual
(1998)Target
(1999)Target
(2000)Target
(2001)Number of people living above the poverty line in targeted communities
50% 51% 53% 65% 67% Decrease in infant mortality rate per 1000*
15.3 15.2 14.2 12.5 10.5 Number of community mobilization projects completed successfully (targeted communities)
9**
54*** 85*** 20**** 50**** Number of vulnerable Individuals benefiting from shelter and infrastructure repair in targeted communities 20351 24334 4000 60985 108570 __
*1997-1999 data is nationwide.
**USAID-funded pilot social investment fund. The successful USAID pilot project laid the foundation for the World Bank Georgian Social Investment Fund (GSIF) 1998-2002.
*** 1998 and 1999 figures represent the World Band-funded GSIF only.
****Commencing in 2000, a USAID planned activity will build upon the successes since 1997 in community mobilization and development.
EXPLANATION FOR SPECIAL INITIATIVES and CROSS-CUTTING OBJECTIVES
Title: Special Initiatives, 114-041
Planned FY 2000 Obligation and Funding Source: $57,800,000 FSA
Proposed FY 2001 Obligation and Funding Source: $39,210,000 FSASummary: This objective includes all of the 632 allocations and transfers to other USG entities. The majority of funding in this objective goes to the State Department for public diplomacy, humanitarian transport, international narcotics and law enforcement programs. Other recipients include the Departments of Commerce, Treasury, and Justice.
USAID activities under this objective meet criteria outlined in Agency guidance for special objectives or interests. That is, they are of limited scope and/or duration and respond to particular windows of opportunity. For USAID/Georgia, these activities generally support accelerated development of private enterprise and health care improvement.
Title: Cross-cutting Programs, 114-042
Planned FY 2000 Obligation and Funding Source: $3,000,000 FSA
Proposed FY 2001 Obligation and Funding Source: $3,000,000 FSASummary: This objective is designed to accommodate activities that make significant contributions to more than one objective. The activities included in this objective for Georgia are the exchanges and training program and the Eurasia Foundation.
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Last Updated on: February 01, 2001 |
