|
|
|
|
|
|
|
|
|
|
  |
 |
  |
South Africa
>> Regional Overview >> South Africa Overview
Previous Years' Activities
2002, 2001, 2000, 1999, 1998, 1997
Last updated: 23
THE DEVELOPMENT CHALLENGE: Seven years after the fall of apartheid and the installation of South Africa's first democratic government, the country's progress in closing the gap between the historically privileged and disadvantaged classes has been remarkable. Over 1.2 million low-cost houses have been constructed and four million people have been connected to water. Two sets of free and fair national and local elections have been held. Major transformations of the judicial, educational, health and governance systems have been launched. Yet, the absolute gap remains disturbingly large. Rooted in the legacy of apartheid, South Africa has a very high level of income inequality, and that disparity is growing. Only three percent of whites live in poverty, compared to nearly 60% of black South Africans. Similarly large disparities are found in job skills, education, health care and housing. A very high overall unemployment rate of 26% (even higher among disadvantaged groups) and negligible formal sector job creation characterize South Africa's labor market. Violent crime has become endemic. The murder rate is the third worst in the world, and the rape rate is the worst. The nine percent conviction rate is amongst the lowest in the world. South Africa's health system, ranked by the World Health Organization at a dismal 175th out of 191 member states, struggles under the weight of AIDS and related diseases. Over 4.2 million people are infected, approximately 20% of the population. The children also suffer. Child mortality rates, average by African standards, have now begun to worsen, and the number of AIDS orphans is rising. By 2005, South Africa will need to care for upward of one million new orphans.
50% of the total population live below the poverty line. There are more people living with HIV/AIDS in South Africa than any other country in the world. Each day, 1,900 more people become infected. Since many South Africans still have not reaped tangible benefits from the country's sharp turn to democracy and aggressive effort to integrate into the world economy, a growing number of observers now mark the next five years as critical for South Africa's future. A recent survey indicates that South Africans place less trust in elected institutions, see them as less responsive to public opinion, and are less satisfied with their performance than in 1998. The survey found that they also are much less supportive and committed to democracy than are citizens of neighboring countries. It is unclear how long South Africa's pursuit of prudent monetary and fiscal policies, public-private partnerships to deliver services, privatization, and greater international and regional trade will continue if the policies do not translate into more jobs and improved living conditions for all. The economy's sluggish growth of 2.5% in 2001 and current projections of 3.0% per annum for the next three years is discouraging and insufficient to create the needed jobs.
U.S. national interests in South Africa build on the country's growing role as a regional political and economic leader in southern Africa and, increasingly, the continent. Politically, South Africa leads the multinational peace effort in Burundi and provides troops for the peace effort in the Democratic Republic of Congo. South Africa and Nigeria have led Africa in defining the New Partnership for Africa's Development (NEPAD) and in committing African states to take primary responsibility for advancing good governance and ending conflicts on the continent. South Africa's role in support of the war against terrorism following the acts of September 11 has been strong and continues. Economically, South Africa remains by far the most important U.S. trading partner in sub-Saharan Africa, excluding Nigeria, a major oil exporter. In 2000, trade between the U.S and South Africa exceeded seven billion dollars, 25% of all U.S. trade with Africa. Even with its negligible domestic growth, South Africa has, because of its sheer size and extensive first-world infrastructure, become the largest investor in other African countries.
THE USAID PROGRAM:
FY 2002 Estimate: $54.474 million FY 2003 Request: $62.428 million USAID is requesting funds for six programs that support the country's economic and democratic transformation to reduce disparities between historically privileged and disadvantaged groups. The program enhances capacities of institutions, skills of individuals, and linkages between South Africa and the United States. More specifically, the program strengthens the criminal justice system's ability to prosecute criminals and improves the health system's ability to deliver primary health care, particularly interventions to combat HIV/AIDS, related diseases, and maternal and child mortality. In education, the program redresses the legacies of apartheid by targeting training to close critical skills gaps in the short term while assisting in the transformation of the national educational system to become more inclusive and results-oriented. Finally, the program fosters linkages that did not exist or were constrained under apartheid. Small, medium, and micro-enterprises in urban and agricultural areas are linked to larger businesses and markets in South and southern Africa and the U.S., and their growth helps create jobs. Financial institutions, new local governments formed from previously disparate and segregated communities, and civil society groups are brought together into new public-private partnerships to increase environmentally sound municipal services and housing for low income South Africans. FY 2002 funds will be used to implement these ongoing programs in democracy and governance, education, health, economic policy and capacity building, market-driven job creation, and municipal services and shelter. FY 2003 funds will be used for the continuation of these programs. All FY 2002 and FY 2003 funds will support ongoing programs as described in the following Program Data Sheets.
OTHER PROGRAM ELEMENTS: More than 20 centrally funded activities complement the bilateral program, primarily in education, agriculture and enterprise development, and health. USAID/Washington funds 17 grants to U.S. universities to assist South Africa's historically disadvantaged institutions in transforming their institutions. It also funds two farmer-to-farmer grants and the Global Technology Network. These activities transfer technology and marketing skills, helping South African firms and farmers become more competitive and integrated in domestic and international markets. Two research activities funded by USAID/Washington advance efforts to reduce the transmission of HIV/AIDS and deliver a better-balanced package of services through primary health centers. Funds will also be used to support activities under the U.S. - South Africa Cooperation Forum.
OTHER DONORS: Donor coordination is generally good and organized by technical sector. USAID is the largest bilateral donor and second largest overall donor to South Africa. The largest donor is the European Union (health, education, criminal justice reform and community water projects). Other major bilateral donors and their principal areas of focus include the United Kingdom (health, private sector development, democracy and governance, labor and criminal justice); Germany (democracy and governance, education, health and economic policy); and Sweden (democracy, governance, labor and poverty alleviation).
Program Data Sheets
- 674-001 Democracy and Governance
- 674-002 Education
- 674-004 Economic Capacity Building
- 674-006 Housing and Municipal Services
- 674-008 Primary Health Care and HIV/AIDS Assistance
- 674-009 Employment Creation
Country Background Information Resources
CIA Factbook
Library of CongressNational Geographic Country Maps
State Dept. Country Information
 |
|||
Last Updated on: May 29, 2002 |
