BELARUS

	FY 1998 Actual	FY 1999 Estimate	FY 2000 Request
FREEDOM Support Act	$7,260,000	$9,780,000	$10,500,000

Introduction.

The goal of U.S. assistance in Belarus is to promote stability, democracy, a market-oriented economy, and respect for internationally accepted principles of human rights. Belarus is strategically placed country with the potential to enhance stability and security in the region, having already voluntarily and completely eliminated its nuclear arsenal. Enormous problems must be overcome to realize that potential, not the least of which is the impact of exposure to radiation from the Chernobyl accident, affecting perhaps two million people, especially the young generation. The people of Belarus are highly skilled, well-educated and resourceful, and the country has the potential to be independent, democratic and prosperous. Responsible and effective leadership is the missing ingredient.

Since his election to office in 1994, President Lukashenko has consolidated his power through a widely criticized constitutional referendum, extended his term in office, and ruled Belarus in an authoritarian manner. Based on the results of the severely flawed constitutional referendum, the Constitutional Court lost its independence, and the democratically-elected Parliament was abolished, replaced by powerless Presidential appointees. President Lukashenko has used his increased power to suppress individual freedoms, especially the freedoms of speech, press, association and assembly. Despite criticism from the Organization for Security and Cooperation in Europe, the European Union, Council of Europe, and the United States, President Lukashenko has eliminated the system of checks and balances over the executive branch.

The Development Challenge.

Now, despite the potential of this strategically-placed country and its people, Belarus has the unfortunate distinction of being one of the slowest reformers among the New Independent States. Both economic and democratic reforms have deteriorated under President Lukashenko. A 1998 year-end poll by the Government’s Ministry of Economy reports that almost 80% of families believe that their material well-being has worsened in the last six months. Inflation, dropping exports and disappearing foreign exchange reserves are putting tremendous pressure on the people and their government.

The current U.S. policy of "selective engagement" towards Belarus limits contact with Belarusian government authorities. In 1998, in response to Lukashenko’s eviction of the Western ambassadors, the U.S. further limited its contact with Belarusian officials, most U.S. Government-funded assistance activities involving Belarusian government authorities were suspended, and a travel ban to the United States by high-level Belarusian government officials was imposed.

The future of Belarus in this region depends on its citizens realizing that only democracy and a free market economy can bring them to their potential. A formidable surge of small, private organizations has steadily arisen in communities throughout Belarus. The neighboring nations in Eastern Europe are giving evidence of successful democratic and free-market economic reforms. Policy-oriented private research organizations are informing leaders in and out of government about the facts of the current economic crisis. The USAID program supports these trends, aiming to empower citizens to take initiative and responsibility for solving their individual and community problems and relying less on the government to meet their needs. Through activities in small-scale privatization, independent media, promotion of the rule of law, humanitarian assistance, and NGO development, USAID is providing support for an open, democratic, civil society with a market economy. The increasing private and democratic action by individuals and organizations working at the grassroots level is evidence that the authoritarian trend of President Lukashenko’s policies cannot succeed.

For many Belarusian families, economic collapse heightens concern about their welfare, especially the health, of their families. The dramatic fall in life expectancy during the past decade provides compelling testimony to the human cost of three tragedies: the many years of governmental abuse of the environment, the collapsing life-force of some individuals in economic distress, and the ever present radiation from Chernobyl fall-out which continues to undermine human health, particularly among children. USAID will continue to establish and promote sustainable U.S./Belarus health partnerships which foster more effective and efficient delivery of health services, emphasizing the establishment and maintenance of comprehensive primary care centers.

In contrast to Belarus' highly interventionist economic policies and the expensive subsidies of public sector economic entities, the USAID-funded small-scale privatization program, implemented through the International Finance Corporation (IFC), is a market-oriented, economic program in the commercial, profit-making sector. The IFC has worked in 14 cities, divested over 1,500 small and medium enterprises, and helped create more than 4,000 private business owners. These small businesses, the employment they provide, the market-oriented goods and services they offer are eloquent testimony in their communities.

USAID has also had notable success in its democracy program. A new indigenously-inspired "street law" program is providing practical information about civil and human rights to leaders, teachers and professionals and the youth in communities. These USAID-funded workshops have exposed Belarusians to democratic values, and inspired many to promote and respect the rule of law and reform efforts. The street-law program will be expanded to all regions during the coming year. Support to reform-minded former Constitutional Court justices has resulted in the creation of an NGO which promotes the rule of law. Independent trade unions have gained access to better legal services for its members. A new group of attorneys expert in media law is protecting the rights of journalists and the independent press.

Other Donors.

Because of the lack of policy reform progress and failure to comply with agreements, the World Bank and the International Monetary Fund have suspended operations in Belarus and withdrawn their resident representatives.

FY 2000 Program.

The U.S. assistance program will continue to support programs which encourage political and economic reforms through non-governmental entities. Modest USAID activities are underway in the areas of economic restructuring, democracy and health, are categorized under the rubric of "crosscutting" or "special" initiatives.

Small-scale privatization. The USAID-funded small-scale privatization program (SSP), managed by IFC, is one of the U.S.'s top assistance priorities, which can generate understanding and needed support for economic reforms. Small-scale privatization in many towns throughout Belarus has helped to demonstrate the benefits of a market-driven economy. Through SSP, improvements in the regulations governing privatization and local level capacity-building have been positive. SSP provides, as needed, consultation to other cities throughout the country. City selection is demand-driven in that the project only extends assistance to cities that approach IFC and are willing to initiate a comprehensive auction-based privatization program. All proceeds generated by auctions are utilized by democratically-elected city councils for social services and infrastructure development.

Under another component of the SSP, private independent homeowners' associations, have been created to facilitate the sale of commercial premises in residential buildings so that the privatized small businesses have secure tenure. These associations are democratic in structure and empower members to resolve issues independently, without input from state agencies.

Democracy. The American Bar Association/CEELI (ABA/CEELI) has fostered the development of the rule of law by strengthening local institutions dedicated to changing Belarus' legal culture; supporting reform in legal education; and organizing workshops on the rule of law, democratic procedures and institutions. For much of the reformist element of the Belarus legal community, USAID grantees are an important contact with the Western democratic world. This contact has inspired lawyers, judges, law faculty and others to continue to believe in and work for the establishment of the rule of law in Belarus. To bring objective reporting to citizens of Belarus, IREX/ProMedia works with print and broadcast media to improve management and effectiveness, enabling the independent media outlets to become financially self-sufficient and with modern production standards. It also helps to improve professional standards among publishers, editors and journalists through training, and assists journalists' and independent media's efforts to expand press freedoms in Belarus. Under the new Women's Economic Empowerment activity, Belarusian women will receive training in leadership, advocacy and entrepreneurial skills through a grant to Winrock International.

Eurasia Foundation. Local non-governmental organizations (NGO) building momentum toward political and economic reform are being assisted by Eurasia Foundation seed grants and its NGO resource center. Eurasia provides grants to Belarusian organizations that work in areas that complement USAID's other developmental programs such as economics education, grassroots democracy building initiatives, civic education, and initiatives raising public awareness about democratic principles and citizens' rights in Belarus and in free societies. Other activities will provide support for media and communications development, and for cooperation and exchanges with reform-minded elements in Ukraine.

Non-Government Organization (NGO) Development. Since independence, the number of local NGOs has increased dramatically in Belarus. To strengthen the NGO sector's capacity to provide needed social services to vulnerable groups, to express and protect citizens' interests in dialogue with the government, and to promote continued democratic and economic reform, USAID created the Counterpart Alliance Program (CAP). CAP provides seed grants and training to a variety of advocacy and social service NGOs, focussing on the areas of general NGO management and public and community relations. In particular, CAP has provided seed grants to social service organizations, and groups devoted to improving the legal and regulatory environment for NGOs in Belarus. The Counterpart Humanitarian Assistance Program (CHAP) will continue to provide both emergency and technical/humanitarian assistance to Belarus.

Health Partnerships. To address fundamental health needs in the NIS, USAID is supporting a health partnership program which focuses on primary health care service delivery. Coordinated through the American International Health Alliance (AIHA), the partnership program in Belarus will provide a sustainability grant to the Women's Wellness Center in Minsk to continue their activities in women's health, nurse leadership and management, and medical school curriculum revision. The sustainability grant will finance seminars, conferences and curriculum module development, as well as the creation of a satellite women's wellness center outside the capital. The U.S. partners are the Magee Women's Hospital in Pittsburgh and the University of Pittsburgh Medical School. Two additional partnerships will be developed over the next three years. It is anticipated that one of the partnerships will focus on primary care, and the other on emergency medicine.

BELARUS

FY 2000 PROGRAM SUMMARY*
(in Thousands of Dollars)

USAID Mission Director: Gregory Huger

Strategic Objectives	Economic Restructuring	Democratic Transition	Social Stabilization	Cross-cutting / Special Initiatives	Total
Special Initiatives	--	--	--	10,500	10,500
TOTAL	--	--	--	10,500	10,500
*FREEDOM Support Act (FSA) funds

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