ASIA AND THE NEAR EAST REGIONAL ACTIVITIES

	FY 1998 Actual	FY 1999 Estimate	FY 2000 Request
Development Assistance	$25,883,094	$50,679,000	$50,749,000
Child Survival and Disease	$11,004,100	$21,800,000	$22,382,000
Economic Support Fund	$39,130,000	$46,300,000	$120,900,000
P.L. 480 Title II	$77,565,000	---	---

Introduction

ANE regional programs are responding to crucial elements of the President's National Security Strategy and achieving important Function 150 International Affairs Goals, including fostering a comprehensive peace in the Middle East; responding to the Asian financial crisis; promoting democracy, human rights, and rule of law; and addressing poverty and non-proliferation issues in South Asia. ANE regional programs address a growing number of cross-border concerns, enable rapid technical and implementation response to ANE nonpresence countries, and provide technical expertise to support bilateral and regional program development. Regional program resources engage a broad range of partners in implementation, including private voluntary and local nongovernment organizations (PVOs and NGOs), international organizations, other U.S. Government agencies, regional institutions, and other donors.

The Development Challenge

ANE subregions are facing greater challenges and opportunities today than at any time in the past 20 years. In fact, the extreme diversity of the Asia Near East region makes it difficult to define a single development challenge that is applicable to the region as a whole. The major development challenges to which the United States, other key donors, and many of the nations in the region must respond include:

• encouraging and maintaining peace and security, particularly in the Middle East, but also in the Asia;
• fostering and restoring economic growth through free trade and investment;
• promoting democracy, human rights and rule of law; and
• combating problems that affect global security, stability, and economic development (such as environmental degradation, greenhouse gas emissions, HIV/AIDS, population growth and food insecurity).

Some of these challenges are transnational in character, and are best addressed through regional approaches. The issues often affect nonpresence countries as well as countries with close-out or bilateral programs. ANE's regional programs can more effectively address such issues by integrating or linking activities across national boundaries.

In the past year, the Asian financial crisis caused a number of the "tiger economies" to implode, throwing millions of people out of work; giving rise to increased trafficking in women and children; and stretching governments' abilities to meet critical social needs. ANE regional program activities enabled USAID to quickly respond to the serious problems that arose in markets affected by the crisis. Regional programs allowed the United States to support and reinforce key U.S. national interests such as promoting and restoring economic growth and productivity in the region, promoting adherence to democratic practices and respect for human rights, and responding to the needs of the poor. For example, the U.S.-Asia Environmental Partnership (USAEP) engaged the strength of the U.S. Government and U.S. academic, business, and professional communities, to deal with the environmental challenges of rapid industrial and urban growth in Asia. USAEP has been highly successful in introducing U.S.-developed technologies to Asian public and private entities. Given that over half of the United States' international trade is with Asia, continued economic reforms and political stability will provide valuable opportunities in the region to expand U.S. trade and investment that is environmentally and economically sustainable.

In the Middle East, for the first time since the signing of the Camp David Accords, the United States is reducing the earmarks for Israel and Egypt, redistributing resources within the region, and forming new and different bilateral and regional relationships. ANE regional programs have supported these changes and the peace process by helping reduce the conflicts associated with sharing critical natural resources across boundaries and laying the foundation for assisting the Maghreb region to view themselves as a trading block and develop trade and investment practices consistent with global trading requirements. USAID's water conflict resolution project has been highly successful in working as a neutral third party with officials in the Middle East to resolve long-standing border water disputes.

In South Asia, recent nuclear tests forced USAID to curtail successful financial sector reform and agribusiness development programs in India and efforts to promote women's empowerment and reproductive health in Pakistan have slowed. However, regional program activities have allowed the United States to stay engaged with these governments as well as NGOs on a number of global concerns, including human rights, trafficking of women and children, environmental degradation, population growth, and HIV/AIDS.

FY 2000 Program

The USAID ANE regional program will support programmatic needs across the three subregions. It will help build capacity and commitment among Asian and Middle Eastern partners in public and private sectors to address critical development issues cooperatively. The FY 2000 program will place even stronger emphasis on encouraging institutions like the Asia-Pacific Economic Cooperation (APEC), the South Asian Association for Regional Cooperation (SAARC), the Association of Southeast Asian Nations (ASEAN), and other regional networks, to establish forums that broaden civil society participation, define and promote activities financed by ANE, and exercise stronger ownership for the agenda of development programs financed by the United States.

Successful ongoing ANE regional efforts in HIV/AIDS in Asia and water use in the Middle East will be continued or expanded. The HIV/AIDS regional program will continue to work closely with the United Nations Joint Program in HIV/AIDS and other key partners to stem the spread of this virulent disease across borders and in high-risk populations.

USAID's Accelerating Economic Recovery in Asia (AERA) initiative will address the challenges of reestablishing financial and political stability in Indonesia, Philippines, Thailand, and other economies affected by the Asian financial crisis. AERA will work with a number of partner organizations to restore financial health, alleviate the suffering among vulnerable groups affected by the crisis, and strengthen civic organizations that promote democratic participation. The economic crisis in Asia is stimulating countries in other subregions to undertake difficult economic reforms. The national governments of Egypt, Jordan, and Morocco, for example, have expressed a new willingness to tackle meaningful economic change, and have asked USAID for help. In the Middle East and North Africa, ANE regional resources will support a Maghreb trade and investment initiative to address the legal, policy and regulatory constraints to increased inter-country trade and investment.

ANE regional resources will support efforts to strengthen the legal and regulatory frameworks to discourage the trafficking in women and children, while supporting improved economic opportunities for communities at high risk of trafficking. ANE regional resources will also support related efforts designed to discourage abusive child labor practices through improved access to basic education.

In addition to continuing the introduction of U.S. developed technologies to Asian public and private entities, USAEP will support Middle Eastern countries' efforts to reduce air pollution and invest in cleaner fuels and technologies. USAID's highly effective water conflict resolution activity will be expanded to evaluate opportunities for addressing transnational water issues in South and East Asia.

ASIA AND THE NEAR EAST REGIONAL

FY 2000 PROGRAM SUMMARY

(in thousands of dollars)

USAID Strategic & Special Objectives	Economic Growth & Agriculture	Population & Health	Environment	Democracy	Human Capacity Developmnt	Humanitarian Assistance	TOTALS
SO 1- Accelerated Economic Recovery in Asia (AERA) -DA -CSD -ESF	16,000 --- 26,500	--- 6,500 ---	2,500 --- ---	--- --- ---	--- --- ---	--- --- ---	18,500 6,500 26,500
SO 2- Fostering the Resolution of Water Resources Disputes (FORWARD) -DA	---	---	1,500	---	---	---	1,500
SO 3- Middle East and North Africa Regional Trade and Investment Initiative -DA -ESF	1,000 5,000	--- ---	--- ---	--- ---	--- ---	--- ---	1,000 5,000
SO 4- Burma Democracy and Humanitarian Assistance Support -ESF	---	---	---	3,500	---	---	3,500
SO 5- Eliminating Abusive Child Labor Through Education -CSD	---	---	---	---	3,000	---	3,000
SO 6- Preventing the Trafficking of Women & Children -DA -CSD	200 ---	--- 500	--- ---	300 ---	--- ---	--- ---	500 500
SO 7- Regional Development & Support -DA -CSD	6,170 ---	1,614 4,318	500 ---	665 ---	--- ---	--- ---	8,949 4,318
SO 8- Asia Near East Regional HIV/AIDS -CSD	---	6,284	---	---	---	---	6,284
SO 9- US-Asia Environmental Partnership (USAEP) -DA -CSD	--- ---	--- ---	17,500 ---	--- ---	--- 1,780	--- ---	17,500 1,780
SO 10- Energy Security for Economic Growth -DA	---	---	2,800	---	---	---	2,800
SO 11- South Pacific Fisheries -ESF	14,000	---	---	---	---	---	14,000
SO12- Middle East Peace Process/ Democracy Building -ESF	14,000	---	---	17,000	---	---	31,000
SO 13- South Asia Regional -ESF	10,825	---	---	---	---	---	10,825
SO 14- South Asia Democracy -ESF	---	---	---	8,825	---	---	8,825
SO 15- ASEAN Environmental Initiative -ESF	---	---	10,000	---	---	---	10,000
SO 16- East Asia Regional Democracy -ESF	---	---	---	11,250	---	---	11,250
TOTALS -DA -CSD -ESF	23,370 --- 70,325	1,614 17,602 ---	24,800 --- 10,000	965 --- 40,575	--- 4,780 ---	--- --- ---	50,749 22,382 120,900

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ACTIVITY DATA SHEET

PROGRAM: Asia and the Near East Regional
TITLE AND NUMBER: Accelerated Economic Recovery in Asia (AERA), 398-SO01
STATUS: New
PROPOSED OBLIGATION AND FUNDING SOURCES: FY 2000: $18,500,000 DA; $6,500,000 CSD; $26,500,000 ESF
INITIAL OBLIGATION: FY 1999 ESTIMATED COMPLETION DATE: FY 2003

Summary: The Asian financial crisis which began in Thailand 18 months ago, has become an urgent financial, political, and social problem of global proportions. Indeed, the effects of the crisis in Asia have been felt even in the United States, where companies that do business with Asia have experienced significant declines in exports and earnings, and as a result have had to cut jobs. President Clinton called the situation "the most serious financial challenge in 50 years". In response, USAID has led the development of a United States Government response – the Accelerating Economic Recovery in Asia (AERA) Initiative. The AERA initiative has a five-year "relief-recovery-reform" framework, and focuses efforts on those countries most immediately affected by the crisis - Indonesia, Thailand and the Philippines, but can be extended to other Asian countries. AERA has three key objectives: (1) creating and saving jobs, (2) improving the targeting and coverage of safety nets, and (3) improving economic governance. To achieve these objectives, technical assistance and training will be provided to government, private sector and nongovernment organizations in the following areas:

• help banks and corporations restructure non-performing loans and operations as a means to work out debt problems.
• strengthen and speed the implementation of market-based tools for liquidating debt and recapitalizing companies (i.e., bankruptcy and foreclosure laws).
• promote and support the expansion of small and medium-sized enterprises.
• strengthen bank supervision and examination, commercial law, accounting standards, securities law, and shareholders rights as the means to improve overall economic governance.
• improve the monitoring of social safety net programs, assess the impact of these programs, and develop improvements in policies and delivery systems.
• monitor reform efforts, and particularly public expenditures, to insure that efforts lead to expected results.
• develop stronger future social safety nets by strengthening pension systems and helping build unemployment insurance mechanisms.

Key Results: Following a series of exploratory visits to Thailand, the Philippines and Indonesia, the AERA design team expects to have a strategy and action plan completed in March 1999, with implementation scheduled to begin in May 1999. Anticipated preliminary results include:

1. Models for corporate debt restructuring developed in key sectors like automotive supply, agribusiness, food processing, electronics manufacture and services.
2. Small and medium-sized enterprise (SME) development program initiated that links SMEs in Thailand, Indonesia and the Philippines with U.S. enterprises for investment capital, technology and/or management expertise.
3. Critical reforms of both financial and capital markets undertaken and successful in re-attracting both domestic and foreign investment back into the real sectors. This would include: the adoption of international accounting standards by all commercial banks and publicly listed companies, and; the establishment of effective supervision and regulation of financial and capital markets.
4. Basic social services, as measured by health and education indicators, remain accessible to those segments of the population hardest hit by the economic crisis.

Performance and Prospects: The AERA initiative will complement ongoing efforts by the multi-lateral development banks (MDBs) (World Bank and Asian Development Bank) in Thailand, and the MDBs and bilateral USAID programs in Indonesia and the Philippines. By linking AERA activities with ongoing MDB or bilateral crisis response efforts, USAID expects the program to have a significant impact.

Possible Adjustments to Plans: None at this time.

Other Donor Programs: The World Bank, Asian Development Bank, International Monetary Fund (IMF) and other bilateral development agencies have pledged more than $58 billion to help Indonesia, Thailand and the Philippines recover from the crisis. However, most of these resources have been in the form of cash transfers to help the countries meet foreign exchange obligations. While these resources have provided critical assistance and have supported essential policy and legal reforms, they have not delivered the necessary technical assistance and training to help the countries implement the policy changes. Thus, the AERA initiative complements other donor assistance by providing the technical expertise and training that will be essential to fully implement the reforms needed for economic recovery.

Principal Contractors, Grantees or Agencies: These will be selected when AERA has been finally approved and funded.

Selected Performance Measures: These are being developed as part of the ANE Bureau's design effort.

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ACTIVITY DATA SHEET

PROGRAM: Asia and the Near East Regional
TITLE AND NUMBER: Fostering the Resolution of Water Resource Disputes (FORWARD), 398-SO02
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 2000: $1,500,000 DA
INITIAL OBLIGATION: FY 1995. ESTIMATED COMPLETION DATE: FY 2001

Summary: The ANE Bureau's Fostering Resolution of Water Resource Disputes project (FORWARD) helps governments and key stakeholders in Asia and the Near East to reach agreement on equitable and sustainable strategies, policies, and plans for managing scarce water resources. The absence of effective mechanisms to resolve water disputes collaboratively is a key reason for many environmental, economic, and social problems across Asia and the Near East. FORWARD is a significant departure from traditional water resource projects which consider water problems to be quantity or quality issues. FORWARD provides a mechanism to resolve water disputes between parties with divergent or competing interests.

The primary beneficiaries of FORWARD are the actual parties to the disputes, including urban and rural water users, farmers, commercial and industrial entities, and government institutions. The wider local, national, and international community also benefits from the resolution of water issues, which have historically blocked better water planning, development and management. While its initial focus was on Egypt, Jordan, and West Bank/Gaza, FORWARD is now developing programs for Lebanon and Morocco.

Key Results: FORWARD is both high profile and high impact. Since its inception, it has enabled USAID field missions to engage directly at the highest levels of government on the most critical policy and technical issues facing these countries. Successful actions include costing water and wastewater services for tariff restructuring, increasing privatization in the water sector, improving groundwater management, and supporting post-civil war national reconciliation

Performance and Prospects: FORWARD offers a unique approach to water dispute resolution in the Middle East by integrating the resolution of technical problems with mediation support. It has demonstrated that by working directly on important disputes--and by using those disputes as vehicles for strengthening local dispute resolution capacity--it can both resolve water issues and develop rules for engagement which will outlive the project.

In Egypt, for example, FORWARD has brought the diverse interests in greater Cairo together to try and resolve the nearly intractable problem of water and wastewater tariffs. It is also bringing together national entities in policy dialogue, to develop and vet plans to restructure the water sector to improve regulation, and encourage greater private sector participation.

In Jordan, FORWARD succeeded in developing models for costing water services for water, wastewater and irrigation water. These tools have been accepted by the government as core analytical and policy tools for sector planning and tariff restructuring. These successes led the way for FORWARD’s follow-up program to commercialize the country’s irrigation agency, by designing and implementing a financial management system which would make both staff and users more accountable.

In West Bank/Gaza, FORWARD has designed two major aquifer management activities and carried out supporting technical studies to ensure the appropriate and sustainable use of scarce and degraded groundwater resources by Palestinians. Here, as in all of these programs, FORWARD is building collaborative problem-solving capacity and skills through formal training and mentoring.

Possible Adjustments to Plans: The ANE Bureau is increasingly looking to FORWARD to help address significant transboundary water issues in the Middle East and Asia.

Other Donor Programs: Unique and experimental, FORWARD is being watched by multinational donors for future replication. Senior Jordanians discussed the development of FORWARD costing models at a worldwide conference on water pricing at the World Bank this past year.

Principal Contractors, Grantees or Agencies: Development Alternatives Inc.

Selected Performance Measures:

	Baseline (1995)	Target (2000)	Target (2001)
Number of water conflicts for which resolution is sought by host countries	0	4	5
Number of agreements on track for implementation	0	5	5
Number of agreements reached	0	5	8
Number of host country institutions employing collaborative problem solving in their operations	0	3	4
Number of host country nationals serving as co-mediators	0	12	15
Number of stakeholders with meaningful participation in the decision-making process	0	80	100

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ACTIVITY DATA SHEET

PROGRAM:Asia and the Near East Regional
TITLE and NUMBER: Middle East and North African Regional Trade and Investment Initiative, 398-SO03
STATUS:New
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 2000: $1,000,000 DA; $5,000,000 ESF
INITIAL OBLIGATION: FY 2000 ESTIMATED COMPLETION DATE: FY 2004

Summary: The Middle East and North Africa Trade and Investment Initiative is a multiagency effort to address the legal, policy and regulatory constraints to increasing trade and investment in the Middle East and North Africa. The goal of the program is to increase sustainable economic growth and expand U.S. trade and investment. Assistance including short-term expert consulting and workshops for public and private sector entities will focus on improving the legal, policy and regulatory framework for trade and investment in Morocco, Tunisia, and Algeria. The beneficiaries will be local industry and industry associations, foreign investors, and host county government institutions.

Key Results: The expected results will be policy changes that lead to increased trade and investment with the U.S. and other partners.

Performance and Prospects: Examples of possible activities include assistance on: identifying ways to reduce the time required to move a new venture to production; promoting business associations’ role as advocates for improved business conditions; improving product standards; and improving customs service and legal procedures through partnerships with U.S. institutions.

Possible Adjustments to plans: None.

Other Donor Programs: The World Bank and European Union have large programs dedicated to improving conditions for trade and investment in the three Maghreb countries. The largest world Bank program will be in Morocco, where a $500 million multi-sector Policy Reform Adjustment and a sector specific adjustment program beginning with $200 million for telecommunications reform are planned for joint World Bank and African Development Bank financing. Bank assistance in Tunisia includes funding for foreign investment promotion, service sector liberalization, and export development. In Algeria, the Bank is preparing studies to promote privatization. The European Union has an extensive program to improve ties with the Maghreb, through agreements that may lead to an Euro-Mediterranean Free Trade Area by the year 2010.

Principal Contractors, Grantees, or Agencies: Private sector contractors and consultants as well as direct-hire staff from U.S. agencies such as Customs, Commerce, and Treasury will be utilized for short-term technical assistance.

Selected Performance Measures: Specific performance measures will be developed during program design. Illustrative indicators include the length of time between investment to production reduced in assisted countries and sectors; specific trade and investment impediments reduced; and government-business-consumer consensus reached on product standards.

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ACTIVITY DATA SHEET

PROGRAM:Asia and the Near East Regional
TITLE AND NUMBER: Burma Democracy and Humanitarian Assistance Support, 398-SO04
PROPOSED OBLIGATION AND FUNDING SOURCES: FY 2000: $3,500,000 ESF
INITIAL OBLIGATION: FY 1998 ESTIMATED COMPLETION DATE: FY 2003

Summary: This activity supports democracy and humanitarian assistance activities with refugees and displaced persons, primarily along the Burma-Thailand border. Assistance objectives are coordinated between USAID (humanitarian assistance) and the Department of State (democracy and governance assistance). Democracy activities include university-level training of Burmese, placing Burmese as interns with NGOs in the region, supporting information and media development (e.g., radio, newspapers, newsletters, human rights documentation), and institution building (e.g., ethnic coalitions, women’s organizations, student groups, and transition planning).

Three kinds of humanitarian assistance are provided for feeding, health care and education of refugees and displaced persons in camps and areas along the Burma-Thailand border: (1) a basic food package (rice, cooking oil, yellow beans, chili and fish paste) equivalent to approximately 2,000 calories per person per day, and seeds and planting materials for refugee home gardens; (2) basic preventive and curative health care, and HIV/AIDs prevention and education through camp clinics, and ethnic and labor organizations both within and outside the camps; and (3) teacher training and support, training of ethnic school administrators, curriculum development, and provision of materials for primary and secondary schools in the camps.

Performance and Prospects: Humanitarian relief and primary health care assistance programs are on-going and successful based on observations of the generally good nutrition and health status of refugees. Basic education and HIV/AIDS prevention activities have just begun; the activities are based on documented need and feasibility assessment, and the prospects are good for their successful achievement. Democracy programs are assuring that uncensored, accurate timely information is available inside Burma, as well as assisting the training and activities of lawyers, labor activists, journalists, and community and student leaders committed to expanding fundamental civil, political and economic rights in Burma.

Possible Adjustments to Plans: None.

Other Donor Programs: The U.S. Government (USG) is one of about 33 donors that provide support to Burmese refugees. The USG’s contribution accounted for less than 10% of the total relief being provided for Burmese refugees in 1998. Major donors include the Dutch, Norwegians, and religious relief agencies.

Principal Contractors, Grantees or Agencies: International Rescue Committee, Burma Border Consortium, World Education/World Learning Consortium, American Center for International Labor Solidarity, National Endowment for Democracy, and the Open Society Institute.

Selected Performance Measures: The Department of State and USAID provide democracy and humanitarian assistance to the more than 111,000 Burmese refugees housed in camps, and the thousands of other displaced persons along the Burma-Thailand border.

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ACTIVITY DATA SHEET

PROGRAM: Asia and the Near East Regional
TITLE AND NUMBER: Eliminating Abusive Child Labor Through Education, 398-SO05
STATUS: New
PROPOSED OBLIGATION AND FUNDING SOURCES: FY 2000: $3,000,000 CSD
INITIAL OBLIGATION: FY 1999 ESTIMATED COMPLETION DATE: FY 2001

Summary: USAID’s Program to Eliminate Abusive Child Labor through Education aims to assist developing nations with high levels of abusive child labor to identify such children and enroll and retain them in basic education services, both formal and non-formal. Under this program, the ANE Bureau will launch two national pilot demonstration projects, one in South Asia (Nepal, Bangladesh or India) and one in South East Asia (the Philippines or Indonesia). The primary beneficiaries of this assistance will be key populations of children, particularly girls, in these countries subject to abusive labor practices, as well as their parents, teachers and organizations responsible for educational resources and services.

The employment of children is an economic and social reality in Asia. Of an estimated 250 million working children aged 5 to 14 years old in developing countries, approximately 60% can be found in Asia. The majority are employed in agriculture, sales, manufacturing, services and trade. These children are exposed to exploitative and hazardous conditions, forced to work long hours and deprived of their rights to health and education.

The major factors that contribute to child labor are complex and include: poverty, cultural beliefs, the lack of educational facilities or the poor quality of education, and exploitation on the part of employers who find children cheaper, more malleable or more appropriate to the work given their small size. Proposed solutions to reducing or eliminating child labor include: passing and enforcing legislation that makes certain forms of child labor illegal; making primary education compulsory, universal, relevant and of higher quality; promoting fiscal and labor market reform to reduce or eliminate poverty; increasing the application of technology so that children’s services will no longer be needed; and providing alternative income sources for children and their families (including special employment incentives for the parents so that their children do not have to work).

Key Results: The pilot projects are expected to achieve the following educational results: 1) increased enrollment in basic education programs of children in target populations; 2) increased retention of children in school; 3) reduced levels of abusive child labor in those populations; 4) greater community and national support for the schooling of all children from school entry to at least 14 years of age; and 5) increased partnerships of ministries with NGOs, employers, workers, families and communities to promote school attendance and completion by high-risk populations of children.

Performance and Prospects: The pilot demonstration projects will: 1) identify key populations with abusive child labor; 2) map education resources and related services, including governmental, community, NGO, labor, business, parents and others; 3) design outreach and incentive activities for parents to enroll and retain their children in school; 4) provide teacher training and related services for improving educational quality to help schools retain children, particularly in school until completion of the relevant school cycle (primary/lower secondary); and 5) conduct built-in monitoring and evaluation as well as external evaluation to assess short and medium-term results of each pilot program.

Possible Adjustments to Plans: None.

Other Donor Programs: The pilot projects will be conducted in concert with the activities of the International Labor Office’s International Program on the Elimination of Child Labor (IPEC), the Department of Labor, the World Bank, and the Asian Development Bank. While many of the governments in South and South East Asia are interested in this issue, they have limited financial resources to bring to bear on the problem. NGOs are at the forefront of this issue, and will be included as appropriate in project activities.

Principal Contractors, Grantees or Agencies: It is expected that these resources will be implemented bilaterally by the selected missions and obligated through the IPEC program, existing mission NGO programs, a global mechanism or a mixture thereof.

Selected Performance Measures: Specific performance measures will be developed during program design in FY 1999.

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ACTIVITY DATA SHEET

PROGRAM: Asia and the Near East Regional
TITLE AND NUMBER: Preventing the Trafficking of Women and Children in South and South East Asia, 398-SO06
STATUS: New
PROPOSED OBLIGATION AND FUNDING SOURCES: FY 2000: $500,000 DA, $500,000 CSD
INITIAL OBLIGATION: FY 1999 ESTIMATED COMPLETION DATE: FY 2001

Summary:Throughout South and South East Asia, girls as young as 7 years old are trafficked within their own countries and across international borders in a modern-day slave trade. While the number of trafficked women and children is difficult to determine, due to its clandestine and criminal nature, the United Nations conservatively estimates that four million people globally are smuggled into foreign countries each year, generating up to $7 billion dollars annually in illicit profits.

As a response to the emerging global crisis, President Clinton issued an Executive Memorandum on International Women's Day, March 1998, committing resources and the talents of his administration to combating trafficking in women and girls. He chose to focus on three areas: 1) trafficking prevention; 2) victim protection; and 3) law enforcement.

The purpose of this regional strategic objective is to prevent the trafficking of women and children in selected countries and communities in South and South East Asia. This objective will build upon preliminary USAID research and advocacy anti-trafficking efforts already being implemented in Asia as well as the efforts of other USG agencies, NGOs and other donors. A regional approach is warranted given that the problem transcends national borders and laws, and requires cross-border cooperation. The program will be multisectoral in approach -- economic opportunities, human rights, and health -- to address the cross-cutting issues that contribute to the problem and to intervene effectively in halting the trafficking of society’s most vulnerable members. Raising trafficking as a regional policy issue will ensure a more uniform approach, act a catalyst for more involvement at the bilateral level, and bring pressure to bear on those countries which choose to ignore the gravity of the problem. The countries targeted for USAID assistance are Nepal, Bangladesh, India, Pakistan, Cambodia, Philippines, and Thailand. The primary beneficiaries of this assistance will be those populations in each country considered most vulnerable to being trafficked, as well as the community-based organizations engaged in assisting these populations.

Key Results: Key results will be achieved on three fronts: 1) Select communities vulnerable to traffickers or in high risk areas will be encouraged to retain their women and girls (or children) as a result of increased information regarding the realities of trafficking and/or the economic opportunities created; 2) Government policies on trafficking will be modified and implementation improved at the national level as a result of advocacy efforts and increased awareness; and, 3) Regional associations such as SAARC and ASEAN will have common approaches and will give priority to trafficking.

Performance and Prospects: The program will operate at three levels: community, subregional and regional. Since the problems and reasons which allow trafficking differ by community, only local organizations can understand these issues and tailor appropriate responses to them. Pilot projects initiated in high-risk areas then need to be fed into existing national and regional trafficking networks as a basis for future replication. Finally, the program will work with ASEAN, SAARC, and South and South East Asian governments to narrow the gap between the dearth of information at the lowest community level and government policy.

Possible Adjustments to Plans: None.

Other Donor Programs: The United Nations has a substantial involvement in addressing the trafficking of women and children in the region. USAID plans to build on their database and research efforts. While many of the governments in South and South East Asia are interested in this issue, they have limited resources for addressing this issue. Local NGOs are at the forefront of this issue, while international NGOs have recently become more interested in addressing trafficking. USAID’s Development Assistance funds will complement those Economic Support Funds provided by the State Department to address the issue of trafficking.

Principal Contractors, Grantees or Agencies: It is expected that the program will be implemented through international NGOs and/or possibly a contractor.

Selected Performance Measures: Specific performance measures will be developed during program design.

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ACTIVITY DATA SHEET

PROGRAM: Asia and the Near East Regional
TITLE AND NUMBER: Regional Development and Support (RD&S), 398-SO07
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCES: FY 2000: $8,949,000 DA; $4,318,000 CSD
INITIAL OBLIGATION: FY 1995 ESTIMATED COMPLETION DATE: CONTINUING

Summary: In FY 2000, RD&S will fund a range of assistance in the Agency’s goal areas of economic growth, population, health and nutrition, environment and energy, democracy and governance, and human capacity development. RD&S will provide the technical expertise to develop and change strategies; define sectoral and cross-sectoral issues; and program and implement pilot programs. RD&S resources are critical to developing and pilot testing new avenues of support that emphasize key ANE regional and sub-regional issues. RD&S supports U.S. foreign policy interests that cannot be effectively met through bilateral or global programs, e.g., U.S. interests in promoting greater Asian partner commitments to reducing greenhouse gas emissions and other donor support for the U.S. agenda on global climate change. RD&S enables the U.S. to provide strategic leadership and state-of-the-art expertise to a growing number of ANE nonpresence country needs as well as respond to emerging issues, e.g., illegal trafficking of women and children; trade and investment in the Maghreb region; and the Asian financial crisis. RD&S funds assist bilateral and regional programs to transition to reengineered systems of program design, management and reporting. RD&S activities also provide bilateral and regional programs with support for analysis and design of strategies, activities and performance monitoring systems.

Key Results: In FY 2000, RD&S funds will ensure fuller ANE participation in the inter-agency process of Global Climate Change negotiations; assist focus Missions, e.g., the Philippines and Bangladesh, to develop and implement action strategies to reduce CO2 emissions; and support the Initiative on Internet for Economic Development with emphasis on accelerating progress in achieving development objectives under regional efforts like the USAID Asian financial crisis response. In addition, RD&S will be used to organize policy roundtables on serious infectious diseases, define action plans for sharing research results on an inter-country basis; develop pilot activities to demonstrate more effective maternal/child health strategies in two to three Asian countries; and provide expertise in democracy and governance to bilateral programs and State Department units in order to effectively program and manage the sizeable portfolio of democracy/governance funding.

Performance and Prospects: RD&S funded technical expertise has improved the quality of USAID country strategic plans and increased the integration of USAID action plans with the broader scope of USG assistance provided bilaterally or regionally. RD&S financed expertise from the World Resources Institute, in cooperation with the University of Wisconsin, to refine a hydrological model that can be used by the Mekong River Commission and other interested parties to predict the impacts of environmental conditions, like deforestation, on food security. RD&S funds have been invaluable to: (a) identify trends and issues that have regional implications; (b) respond to opportunities or unforeseen needs where bilateral missions are constrained by political sensitivities or limited technical capacity; and (c) provide rapid response to nonpresence country and cross-border issues. The prospects remain strong for RD&S funding to add enormous value to ANE’s ability to provide strategic leadership in the arenas of economic, social and political development and to Agency goal areas.

Possible Adjustments to Plans: None.

Other Donor Programs: RD&S funded activities and expertise can serve to leverage donor investments to expand and/or complement USAID bilateral efforts, promote donor coordination between the World Bank and the Asian Development Bank, and support regional organizations such as SAARC and ASEAN.

Beneficiaries: Indirect beneficiaries are host country populations who benefit from better targeted or more responsive USAID bilateral or regional programs assisted by RD&S support. Direct beneficiaries include USAID bilateral missions, select U.S. Embassy posts in nonpresence countries, and other partners, such as regional institutions, who receive state-of-art expertise, research and other support financed by RD&S.

Principal Contractors, Grantees or Agencies: Key contractors or partners include the U.S. Department of Agriculture, Management Systems International, DevTech, Academy for Education and Development, Johns Hopkins University, the University of Michigan, and the Center for International Health Information.

Selected Performance Indicators:

	Baseline (1999)	Target (2000)
Effective HIV/AIDS cross- border strategies developed	1	2
Inter-country research on infectious diseases designed and implemented	3	4
Regional climate change and other environment/energy action strategies developed	0	1
State/USAID ANE regional democracy/ governance strategies developed	0	2
Internet is incorporated into regional activities	1 activity	2 activities

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ACTIVITY DATA SHEET

PROGRAM: Asia and the Near East Regional
TITLE AND NUMBER: Asia Near East Regional HIV/AIDS, 398-SO08
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 2000; $ 6,284,000 CSD
INITIAL OBLIGATION: FY 1995 ESTIMATED COMPLETION DATE: FY 2004

Summary: The Asia and Near East Regional HIV/AIDS program pilots and promotes best practices in preventing HIV transmission and providing care to AIDS victims and their families. The program supports bilateral programs, as well as efforts to tackle the growing dimensions of the disease that are transboundary in nature.

Key Results: In FY 2000, key results anticipated under this activity include expanding the number of cross-border locations with HIV/AIDS prevention programs, principally in border areas at high-risk, e.g., Philippines, Indonesia, India, Thailand, Laos, Cambodia and Vietnam. Increased local authority or NGO capacity to undertake surveillance and reporting on HIV/AIDS in high-risk areas is expected. Social marketing programs that increase condom availability will be expanded, particularly in areas of highest need, e.g., Laos, and Vietnam. National policy frameworks to effectively support HIV/AIDS prevention and mitigation efforts will be improved, e.g., in India, Nepal, Vietnam and Cambodia. Behavior change surveys that assist local authorities and NGOs to monitor changes in attitudes and practices will be expanded, particularly in cross-border areas. Effective management of sexually transmitted infections (STI) will be stressed in India, Nepal, Cambodia and the Philippines.

Performance and Prospects: Program support has financed activities at major border crossings in USAID bilateral and nonpresence countries. Specific areas of investment include: information, communication and education to promote behavioral change; social marketing and condom promotion; prevention and management of STIs; model service delivery demonstration programs (e.g., integrating tuberculosis case management and AIDS care); and epidemiological and communications analysis. The program also finances regional trend analysis, behavioral surveillance, operations research, and inter-regional collaboration. A recent evaluation of the regional HIV/AIDS program concluded that regional HIV activities were crucial to HIV/AIDS prevention in the region and cited the importance of Family Health International's regional expertise in Bangkok. Local NGOs are also assisted by ANE funding of the International HIV/AIDS Alliance, a London-based NGO. The Alliance works with linking organizations to enhance their skills in behavioral change communication, and transferring best knowledge and practices to other NGOs. NGOs play a critical role through enabling grass roots organizations and community empowerment. They also play a crucial role in the prevention of HIV transmission through education and behavioral change efforts. HIV prevention activities will continue to be integrated into reproductive health programs, allowing new opportunities to reinforce HIV/AIDS surveillance networks with surveillance and control of infectious diseases, particularly tuberculosis.

The regional program activity developed and disseminated: "universal" precautions to prevent iatrogenic transmission of HIV; practical and widely accepted tools for assessing the impact of prevention efforts on HIV transmission; new approaches to reach out to neglected and "hard-to-reach" sub-groups, including youth, men who have sex with men, and minorities; and "hot lines" and radio talk shows with important HIVAIDS messages. Cross-border accomplishments include: HIV/AIDS counseling and STI testing centers at major border crossings, e.g., India-Nepal, Thai-Vietnam, Thai-Burma and Vietnam-Laos; training and organizational capacity building of NGOs working in HIV/AIDS prevention, advocacy and care; and improving diagnosis treatment and prevention of other STIs. In FY 2000, pilot activities at several cross-border sites in the region (Bangladesh, Vietnam, Laos, Philippines) will be initiated to slow transmission between countries.

Possible Adjustments to Plans: The Anti-Trafficking in Women Children Initiative and implementing partners will emphasize advocacy-related efforts at the community level, while also encouraging strong integration of anti-trafficking messages with HIV/AIDS prevention themes. The regional HIV/AIDS program participates in collaborative trials of anti-trafficking initiatives, integration of tuberculosis case management into service delivery programs, and replication, depending on the outcome of pilot tests and on the capacity of implementing partners.

Other Donor Programs: Other key donors include the United Nations Joint Program on HIV/AIDS, the British Department for International Development, and the European Commission of the European Union. In addition, the USAID grantee, Family Health International, is recognized by ASEAN as a regional implementing agency for HIV/AIDS.

Principal Contractors, Grantees or Agencies: Contractors, grantees and sub-grantees providing assistance under this activity include The Asia Foundation, CARE International, DKT International, Family Health International, the International HIV/AIDS Alliance, the Population Council, and Population Services International.

Selected Performance Indicators:

	Baseline (1999)	Target (2000)	Target (2004)
Sites with cross-border interventions implemented	5	6	12
STI/HIV surveillance systems functioning	2	3	9
Condom sales by social marketing programs (millions)	40.0	43.75	78.50
Innovative models developed & dis- seminated for: prevention & treatment of STIs, HIV and other infectious diseases, and for care of persons living with HIV/AIDS	0	2	10

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ACTIVITY DATA SHEET

PROGRAM: Asia and the Near East Regional- United States-Asia Environmental Partnership (USAEP)
TITLE AND NUMBER: Promote an Asian Clean Environmental Revolution, 398-SO09
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 2000: $17,500,000 DA; $1,780,000 CSD
INITIAL OBLIGATION: FY 1992 ESTIMATED COMPLETION DATE: Continuing

Summary: The relationship between rapid economic growth in Asia and industrial and urban pollution in the Asia region defines a global environmental crisis. Asia has yet to install a significant proportion of the industrial and urban capacity that it will have early in the next century, offering a once-in-a-generation opportunity to get ahead of the investment curve to introduce a clean environmental regime. This is also an important economic opportunity for the United States. The purpose of this program is to promote and reinforce the introduction of a sustainable, clean production regime for the industrial and urban sectors in the Asia region. There is a range of beneficiaries: the citizens of participating countries, particularly urban populations; the global environment, due to reductions in greenhouse gas emissions; and U.S. business and labor, from sales of their experience, technology and practice to Asian clients.

Key Results: USAEP focuses on four activity areas: (1) strengthening and expanding the incentives and public policies for environmental quality in the industrial and urban sectors; (2) introducing environmental management systems to industrial and urban sectors; (3) facilitating the transfer of environmental technologies; and (4) increasing investment in urban environmental infrastructure. USAEP mobilizes U.S. Government agencies to partner with U.S. business and environmental communities in addressing Asia’s environmental problems. For example, a partnership between USAEP and the Council of State Governments (CSG) created the State Environmental Initiative (SEI), which matches the regulatory and environmental experience of states with Asian needs for environmental and energy efficient technologies and services. Through the SEI, USAEP has invested more than $3.4 million in 25 projects involving 21 states and 10 Asian economies. Partners have matched these grants with more than $7.9 million. More than 100 state agencies, 25 academic institutions, over 20 NGOs and 60 U.S. companies and trade associations are participating in this USAEP-CSG effort. There have been important regional developments this year in environmental management. USAEP was instrumental is launching the Asian arm of the worldwide Greening of Industry Network (GIN), in July 1998 at Chulalongkorn University in Bangkok. The purpose of GIN is to promote economically and environmentally sustainable industrial activity through corporate environmental management. A major success has developed in USAEP’s "greening the supply chain" effort, in which large companies promote environmental management within their network of suppliers. In part as a result of a Malaysian-based pilot project conducted with USAEP, United Technologies Corporation (UTC) is broadening its application of the "greening the supply chain" principle to their more than 60,000 suppliers worldwide.

USAEP's trans-Pacific environmental exchange programs have involved 3317 professionals and 12 Asian countries. Independent research found that the lessons learned through these exchanges are widely incorporated into Asian industrial and urban enterprises, while also leveraging the international marketing efforts of U.S. firms. In technology transfer, USAEP has to date made over 4,000 trade leads to over 2,500 firms participating in USAEP’s Environmental Technology Network for Asia. One measure of the impact of these leads is that USAEP has contributed to the confirmed export sales of more than $1.1 billion worth of U.S. environmental goods and services. Another USAEP program to promote the transfer of U.S. environmental technologies is the Environmental Technology Fund, a partnership with the National Association of State Development Agencies. Since its inception in 1992, the Fund made grants of about $4.8 million, generating almost $300 million in export revenues and more than 700 new U.S. jobs. The Fund works in synergy with USAEP field representatives, who coordinate American visits to Asia and establish key linkages with Asian decision makers. Independent research found that the grant funds, together with field representative assistance, were the reason that 90% of Fund recipients were able to make their first trip to Asia, making a significant impact on introducing U.S. environmental technologies to Asia. Close to half of the $1.1 billion in USAEP-assisted sales was for urban infrastructure projects. In addition to facilitating financial participation in environmentally sound urban infrastructure projects, USAEP also provides technical assistance. For example, USAEP and USAID’s Regional Urban Development Office worked with the Indian city of Ahmedabad to develop one of India’s first municipal bonds, also providing associated technical assistance. The result was a dramatic improvement in Ahmedabad's water distribution and sewerage systems.

Performance and Prospects: Although USAEP-assisted sales of environmental technology is up slightly from last year, investments in the more expensive environmental technologies may decline as the Asian financial crisis continues. To accelerate economic recovery in Asia, USAEP is promoting improved efficiencies and reduced pollution as an inexpensive path toward increased investment and employment in the industrial and urban sectors. An important component of this approach is to disseminate the successful results throughout the region, to demonstrate that cleaner technology and environmental rigor are not incompatible with economic growth.

Possible Adjustments to Plans: USAEP is currently developing targets for years beyond 2000.

Other Donor Programs: The USAEP is not a typical assistance project. It seeks to foster partnerships rather than donor-client relationships. Working with other federal and state agencies, the private sector, NGOs and universities, USAEP has forged a set of institutional partnerships mobilizing private initiative and resources. In this sense, it offers a new model for development promotion. Other donors have sought USAEP advice on adopting the USAEP model. USAEP-like organizations are being adopted by other Bureaus within USAID. USAEP is defining the economic/environmental agenda for other donors in the region, by working through the U.S. executive offices at the multilateral development banks, through international political fora such as the Asia Pacific Economic Council and the Association of South East Asian Nations, and through partnerships with influential organizations such as the CSG, the National Association of State Development Agencies (NASDA), and the GIN. USAEP’s focus on building partnerships has made it increasingly successful in leveraging other public and private sources of funding. For example, various grant programs with the States have leveraged from one to three dollars for each USAEP dollar. Further, USAEP and its various U.S. grantees seeks cost sharing or complementary investments from many Asian counterparts in all of its activities.

Principal Contractors, Grantees or Agencies: The USAEP is implemented by three major contractors (the Institute for International Education, International Resources Group, and Louis Berger International) and by cost-share partnership arrangements with U.S. Government agencies (such as the Departments of Agriculture and Commerce, the Environmental Protection Agency, and Overseas and Private Investment Corporation), the California Environmental Protection Agency, professional associations, NASDA, CSG, and seven NGOs.

Selected Performance Measures:

	Baseline (1995)	Target (2000)
Increased corporate and private sector pressure in support of improved environmental performance and privatization of environmental infrastructure (index from 0 to 100)	5	80
Increased regional institutional pressure in support of improved environmental performance and environmental infrastructure	5	80
Increased flow and adoption of environmental and cleaner industrial and infrastructure technologies, with emphasis on U.S. practice and technologies ($ million)	1,000	3,000

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ACTIVITY DATA SHEET

PROGRAM: Asia and the Near East Regional
TITLE AND NUMBER: Energy Security for Economic Growth, 398-SO10
STATUS: New
PROPOSED OBLIGATION AND FUNDING SOURCES: FY 2000: $2,800,000 DA
INITIAL OBLIGATION: FY 2000 ESTIMATED COMPLETION DATE: FY 2005

Summary: Reducing greenhouse gas emissions is one of USAID’s top priorities in the Asia and Near East (ANE) region. With three key countries, ANE has a significant climate change-related portfolio of bilateral activities, but no regional program to help foster exchange of information and lessons learned or assist with regional implementation of the USAID Climate Change Initiative. This new Energy Security for Economic Growth (ESEG) activity is designed to address both energy security and global climate change (GCC) issues in Asia through approaches that produce the greatest impact with the lowest investment of USAID regional funds. ESEG is designed to maximize the impact of a modest investment of USAID funds by taking a strategic, two track approach to: (1) build the internal analytical capacity of developing Asian countries to make their own informed policy decisions on energy and global climate change, giving them the tools to maximize energy efficiency and choose investment paths that will save them the most money while producing the most reliable energy base for economic growth and security; and (2) promote energy efficient infrastructure and practices in industrial and urban sectors and encourage a shift in energy investment programs towards cleaner, more efficient technologies and development patterns

Key Results: The Energy Security for Economic Growth activity is expected to increase the capacity of targeted countries to: (1) inventory and monitor greenhouse gas emissions; (2) use modeling as a tool to develop energy strategies and predict emissions; (3) leverage private sector investment in energy-efficient technologies and long-term capital stock; (4) develop policies to promote energy efficiency; (5) plan practical greenhouse gas abatement strategies; and (6) perform economic analyses of alternative energy sector development scenarios and analyze the benefits of market-based mechanisms such as emissions trading.

Performance and Prospects: Countries in Asia have generally given very low priority to mitigating global climate change. Yet it is these same countries that are rapidly increasing their CO2 emissions. As a result of the Asia financial crisis, many Asian countries face the need to restart their economies and the choice of doing so in a manner that risks serious environmental degradation. It is critical to demonstrate to these governments that cleaner and more efficient supplies and uses of energy do not require sacrificing economic growth. This is both the challenge and the opportunity for the ESEG program.

Possible Adjustments to plans: ESEG is a new program that will pursue several different approaches to promoting energy security while reducing emissions of greenhouse gases in targeted Asian countries. The outcome of these varying approaches will be used to adjust program implementation in the future.

Other Donor Programs: The Energy Security for Economic Growth program has strong potential for leveraging additional resources from other bilateral and multilateral organizations, including the World Bank, Asian Development Bank, the Export-Import Bank, and the UN Development Programme (UNDP). For example, ALGAS (the Asia Least Cost Greenhouse Gas Abatement Strategy) was funded by the Global Environment Facility (GEF) through UNDP, and executed by ADB. During planning for the ANE Bureau's role in an ALGAS wrap-up workshop in August 1998, both ADB and UNDP expressed considerable enthusiasm for partnering with the Bureau on the types of activities envisaged under ESEG.

Principal Contractors, Grantees or Agencies: This program will be implemented through the Global Bureau’s Office of Energy and through the U.S.-Asia Environmental Partnership. Principal contractors and grantees under these activities include the International Resources Group, Institute for International Education, Louis Berger International, Hagler Bailley Services, Inc., and Bechtel National, Inc. In addition, USAEP provides access through a cost-sharing partnership arrangements to the U.S. Department of Commerce and the Environmental Protection Agency.

Selected Performance Measures:

	Baseline (1999)	Target (2000)	Target (2005)
Increased U.S. share of Asian market for imports of energy efficient equipment, processes and services (%) *
Changes in energy management policies and practices that increase efficiency and reduce demand, resulting in part from this activity (yearly).	0	15	30
Improved policy, legal, and regulatory frameworks for increased energy security (performance index: base – 100)	10	20	40
* Performance measures for this indicator will be determined during program design.

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