• improving public sector governance to create a stable and favorable business environment;
• increasing the breadth, and depth of financial markets;
• gaining access and capacity to use new technologies, including information technologies;
• enhancing private sector capacity to respond to opportunities in the global marketplace; and
• facilitating access and skills to construct business relationships.

Inputs, Outputs and Activities: FY 2002 Program: USAID will provide new insights, technical services and innovative pilot activities in trade capacity building, commercial law methodology, and formalizing non-traditional institutional relationships (new institutional economics) to public governance. The office will evaluate and refine a promising technical assistance tool, competitiveness analysis, which gauges impacts and relationships of all sectors affecting an industry. New contracting mechanisms will offer technical services in legal and institutional reform and privatization. USAID, together with other donors, will support the Integrated Framework for Trade Related Technical Assistance to Least Developed Countries. This program seeks to promote trade policies that support the poverty reduction objectives in these countries. Funds also will provide informational services, training of economic growth practitioners, and technical advisors.

Planned FY 2003 Program: USAID plans to use FY 2003 resources requested in this Budget Justification to continue the above activities. The principal activity will continue to be trade capacity building. FY 2003 funds will expand the "toolkit" of approaches in this area including, for example, increasing the ability of developing country producers to meet international quality and safety standards. FY 2003 funds will support the dissemination of new approaches to establish sound commercial laws, increase competition in key service sectors, and accelerate the response of private firms to global market opportunities including accessing new technologies. Supplemental funds will be sought to expand activities to specifically respond to U.S. commitments made in Doha at the launch of the current round of global trade negotiations.

Performance and Results: This FY 02 SO has been preceded by a similar objective; results reported are for the old objective. Ongoing research, outreach and technical support to USAID missions and host countries under this program resulted in tested ideas, insights, and new approaches that field programs can use to foster global integration. The immediate results will be (1) increased developing country compliance with World Trade Organization agreements, and (2) developing country initiatives to improve their investment climate. The ultimate impact sought is significantly increased global trade and investment in USAID’s partner countries. Recent program successes included: demonstrating U.S. support for capacity building at the Doha World Trade Organization Ministerial particularly relating to participation of the poor in trade; pioneering a public-private partnership approach to increase industrial competitiveness in 14 countries; and incorporating trade and investment into countries' development strategies.

Principal Contractors, Grantees, or Agencies: 26 prime contractors, each with several sub-contractors will provide technical assistance services to USAID and its field missions in privatization, legal and institutional reform, macroeconomic analysis, business, trade and investment, and financial services. Most of these contracts will soon end, and new awards will be competed to continue these services. Currently, Nathan Associates will provide technical assistance in trade capacity building, the United Nations Development Program will make sub-grants to develop trade policies supportive of poverty reduction objectives. The Institute for Institutional Reform in the Informal Sector (IRIS) conducts forums to explore the relevance of new institutional economics to public governance. The Academy for Educational Development provides statistical research services. The International Executive Service Corps (IESC) is the principal implementer of the Global Technology Network. IESC and USAID have signed numerous memoranda of understanding with strategic partners, including state-level trade development agencies and private sector trade associations.

US Financing in Thousands of Dollars