USAID: Ethiopia FY 2002 Congressional Budget Justification

PROGRAM: ETHIOPIA
TITLE AND NUMBER: More Effective Governance and Civil Society Developed, 663-010
STATUS: New
PLANNED FY 2001 OBLIGATION AND FUNDING SOURCE: $1,646,000 CSD, $2,350,000 DA
PROPOSED FY 2002 OBLIGATION AND FUNDING SOURCE: $1,350,000 CSD, $1,456,000 DA
INITIAL OBLIGATION: FY 2001 ESTIMATED COMPLETION DATE: FY 2006

Summary: USAID began its democracy and governance support activities in Ethiopia after the downfall of the socialist dictatorship in 1991. The issue of democratic governance is at the heart of Ethiopia's considerable developmental challenge and underlies all development strategies and programs.

This new strategic objective (SO) builds on achievements under SO 4, Increased Access to and Participation in a Democratic System. In FY 2001 Development Assistance (DA) funds ($2,350,000 Democracy and Governance) will finance training of federal court judges, on-going activities under the Government's Civil Service Reform Program (CSRP) focused on management of public financial resources, and activities to refine capacity building for Non-Governmental Organizations' (NGOs) capacity-building. Child Survival and Diseases (CSD) funds ($750,000 Basic Education) will support the integration of the CSRP public financial reform in the Ministries of Education and Health. Also, CSD resources ($896,000 Vulnerable Children) will train 40 NGOs (10 of them working exclusively on HIV/AIDS and 30 multi-sectoral NGOs) to increase their capacity for innovative service delivery for orphans, displaced street children, and other populations affected by HIV/AIDS. The Ethiopian people will be the beneficiaries of a more effective, fairer and more responsive government, in part through civil society organization (CSO) advocacy.

Key Results: The Democracy and Governance (DG) SO will foster civic participation, encourage Government receptivity to inputs from civil society, and improve the quality of the civil society advocacy process. This activity will also strengthen the judiciary and reinforce respect for human rights on a national level, assuring achievement of broader U.S. Government objectives. Additionally, it will support decentralization of important elements of the civil service reform to regional and sub-regional levels.

By 2006, civil society will be a more articulate and valued partner in all national relief and development programs. Ethiopia's judiciary will be more proactive in promoting human rights according to international standards. With USAID support, all nine regions, as well as the Federal Government, will be implementing reformed budgeting, accounting and financial planning systems in the agriculture, education, and health sectors.

Performance and Prospects: In response to the Government's increasing openness, new groups addressing individual and/or community needs are emerging. USAID has successfully supported Ethiopian NGOs in their dialogue with the Government about their role, rights, and responsibilities within society. USAID has provided capacity-building support through FY 2000 to 85 local NGOs involved in activities related to food security, health, education, democracy and governance, orphans and street children. USAID support has also helped NGOs form networks in such areas as micro-finance, education, and help for street children and orphans. In FY 2001, USAID will continue and refine its support for NGO advocacy and capacity building, directing assistance more towards Ethiopian NGOs engaged in health, education and agriculture.

The current constitution provides for an autonomous judiciary within a tripartite government. This separation of powers is a first in the country's history. Approximately 1,450 judges sit in the various federal courts of Ethiopia. In 1997 and 1998, USAID successfully assisted the federal judiciary in carrying out ad hoc training for 300 newly appointed judges. The new SO will emphasize the long-term professional development of judges. In addition, USAID will extend training to other officers of the court and those involved in alternate systems of dispute resolution or management (such as traditional arbitration committees comprised of groups of elders) which will extend the rule of law beyond the court system. The strategy will also enhance access of judges and arbitrators to the law, precedents and other pieces of information needed in making their judgments. During 2001, USAID will provide training to 880 judges. An integral part of this training will be the provision of copies of legal codes, printed or reprinted for this purpose, to each trainee judge. Financing of the judiciary training and related materials will be from DA funds.

Ethiopia has committed itself to building a federal system of government and devolving authority and responsibility for development to local and regional governments. Part of CSRP, the government's comprehensive reform program, seeks to improve the management of public financial resources. Over the past three years, USAID/Ethiopia has supported the development of new systems and procedures in accounting, budgeting, and financial planning to achieve improved financial management, cutting in half the accounting backlog.

In FY 2001, USAID activities will help the Ministry of Finance and Economic Development and Cooperation to complete these procedures and to roll them out to the agencies that must begin to use them in the federal ministries and the regional bureaus. Other 2001 activities to strengthen public financial systems will include expanding the public investment program to a public expenditure program. In addition, USAID plans activities to coordinate implementation of the CSRP financial management reforms within the health and education sector development programs at national and regional levels, as well as introduce consolidated banking accounts and streamlined disbursement procedures are planned.

The FY 2002 request is for DA ($1,456,000) and CSD ($1,350,000) resources to improve civil society advocacy, improve the quality and responsiveness of the judicial system and advocate for human rights and the effective use of public resources.

Other Donor Programs: Donors working to strengthen civil society and enhance the civil society environment include OXFAM Canada, and the Christian Relief and Development Association. Other major donors to the judicial system include the Canadian International Development Agency (CIDA) with a major ($3.4 million) court administration project, and Swedish Radda Barna, which has a juvenile justice program.

The other major donor supporting the Expenditure Management and Control Subprogram is the United Nations Development Program (UNDP), which also supports several other CSRP subprograms. Total UNDP commitments to the CSRP amount to $12,900,000. No other donor has currently committed more than $500,000. Additional potential CSRP supporters include the European Commission, whose support of the Financial Information Systems activity is in progress. The UK Department of Foreign Investment and Development supports the external audit activity. CIDA has supported selected aspects of the Ethics Subprogram, and Finland and Ireland have expressed interest in supporting the external audit reforms.

Principal Contractors, Grantees or Agencies: Harvard University implements the Decentralization Support Activity, which is engaged in strengthening public financial systems, and Participating Agencies Acting Together (PACT) supports NGO strengthening.

Selected Performance Measures: This is a new Special Objective. Performance measures are to be developed as the new program is implemented.

U.S. Financing

(In thousands of dollars)

	Obligations		Expenditures		Unliquidated
Through September 30, 1999	0	DA	0	DA	0	DA
	0	CSD	0	CSD	0	CSD
	0	ESF	0	ESF	0	ESF
	0	SEED	0	SEED	0	SEED
	0	FSA	0	FSA	0	FSA
	0	DFA	0	DFA	0	DFA
Fiscal Year 2000	0	DA	0	DA
	0	CSD	0	CSD
	0	ESF	0	ESF
	0	SEED	0	SEED
	0	FSA	0	FSA
	0	DFA	0	DFA
Through September 30, 2000	0	DA	0	DA	0	DA
	0	CSD	0	CSD	0	CSD
	0	ESF	0	ESF	0	ESF
	0	SEED	0	SEED	0	SEED
	0	FSA	0	FSA	0	FSA
	0	DFA	0	DFA	0	DFA
Prior Year Unobligated Funds	0	DA
	0	CSD
	0	ESF
	0	SEED
	0	FSA
	0	DFA
Planned Fiscal Year 2001 NOA	2,350	DA
	1,646	CSD
	0	ESF
	0	SEED
	0	FSA
	0	DFA
Total Planned Fiscal Year 2001	2,350	DA
	1,646	CSD
	0	ESF
	0	SEED
	0	FSA
	0	DFA
			Future Obligations		Est. Total Cost
Proposed Fiscal Year 2002 NOA	1,456	DA	10,394	DA	14,200	DA
	1,350	CSD	6,204	CSD	9,200	CSD
	0	ESF	0	ESF	0	ESF
	0	SEED	0	SEED	0	SEED
	0	FSA	0	FSA	0	FSA
	0	DFA	0	DFA	0	DFA

ETHIOPIA

Activity Data Sheet

U.S. Financing