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Default Para6gDefault Paragraph Font8%@.*ȯ%E;5;6#x  @;X@##b6X@C@#2Z2222(toc 1%06gtoc 1g=(8%@0*ȯ%E784` hp x (#toc 2%16gtoc 2g=(8%@1*ȯ%E9:4 ` hp x (#toc 3%26gtoc 3g=(8%@2*ȯ%E;<4 ` hp x (#toc 4%36gtoc 4g=(8%@3*ȯ%E=>4 <` hp x (#2$ 2!2"!#2z"toc 5%46gtoc 5g=(8%@4*ȯ%E ?@4<` hp x (#toc 6%56gtoc 6g=(8%@5*ȯ%E!AB4` hp x (#toc 7%66gtoc 7g=(8%@6*ȯ%E"CDtoc 8%76gtoc 8g=(8%@7*ȯ%E#EF4` hp x (#2-$2$%2'&2B)'2t+toc 9%86gtoc 9g=(8%@8*ȯ%E$GH4` hp x (#index 1%96gindex 1g=(8%@9*ȯ%E%IJ4 ` hp x (#index 2%:6gindex 2g=(8%@:*ȯ%E&KL4 ` hp x (#toa%;6gtoa:g=(8%@;*ȯ%E'MN` hp x (#20(-).*~/+/caption%<6gcaptiong=(8%@<*ȯ%E(EO;P#x  @;X@##b6X@C@#_Equation Ca6g_Equation Caption8%@=*ȯ%E);Q;R#x  @;X@##b6X@C@#Document 86gDocument 8g=(8%@>*ȯ%E*STDocument 46gDocument 4g=(8%@?*ȯ%E+UV  22,0-<1.1/<2Document 66gDocument 6g=(8%@@*ȯ%E,WXDocument 56gDocument 5g=(8%@A*ȯ%E-YZDocument 26gDocument 2g=(8%@B*ȯ%E.[\Document 76gDocument 7g=(8%@C*ȯ%E/]^2:02212 52R7327Right Par 16gRight Par 1g=(8%@D*ȯ%E0_`4 <DL!` hp x (#Right Par 26gRight Par 2g=(8%@E*ȯ%E1ab4$ <DL!0` hp x (#Document 36gDocument 3g=(8%@F*ȯ%E2cdRight Par 36gRight Par 3g=(8%@G*ȯ%E3ef4 | <DL!` hp x (#2B426:52h<62>72@Right Par 46gRight Par 4g=(8%@H*ȯ%E4gh4 <DL!0` hp x (#Right Par 56gRight Par 5g=(8%@I*ȯ%E5ij4 <DL!` hp x (#Right Par 66gRight Par 6g=(8%@J*ȯ%E6kl4 < DL!` hp x (#Right Par 76gRight Par 7g=(8%@K*ȯ%E7mn4 <DL!` hp x (#2L820C9<bE:8G;8IRight Par 86gRight Par 8g=(8%@L*ȯ%E8op4 <D4L!0` hp x (#Document 16gDocument 1g=(8%@M*ȯ%E9qr4 <DL!` hp x (#Technical 56gTechnical 5g=(8%@N*ȯ%E:st4 <DL! ` hp x (#Technical 66gTechnical 6g=(8%@O*ȯ%E;uv4 <DL! ` hp x (#2O<@L=L>8@M?xOTechnical 26gTechnical 2g=(8%@P*ȯ%E<wxTechnical 36gTechnical 3g=(8%@Q*ȯ%E=yzTechnical 46gTechnical 4g=(8%@R*ȯ%E>{|4 <DL! ` hp x (#Technical 16gTechnical 1g=(8%@S*ȯ%E?}~2U@8*PA8bRBTC,UTechnical 76gTechnical 7g=(8%@T*ȯ%E@4 <DL! ` hp x (#Technical 86gTechnical 8g=(8%@U*ȯ%EA4 <DL! ` hp x (#a1Right Par+ȯRight-Aligned Paragraph Numbers8%@_*B8@   a2Right Par+ȯRight-Aligned Paragraph Numbers8%@_*CA@` `  ` ` ` 2XDUEVFJWGXa3Right Par+ȯRight-Aligned Paragraph Numbers8%@_*DJ` ` @  ` `  a4Right Par+ȯRight-Aligned Paragraph Numbers8%@_*ES` `  @  a5Right Par+ȯRight-Aligned Paragraph Numbers8%@_*F\` `  @hh# hhh a6Right Par+ȯRight-Aligned Paragraph Numbers8%@_*Ge` `  hh#@( hh# 2aHXIY Z0[Za7Right Par+ȯRight-Aligned Paragraph Numbers8%@_*Hn` `  hh#(@- ( a8Right Par+ȯRight-Aligned Paragraph Numbers8%@_*Iw` `  hh#(-@pp2 -ppp Ыx  @;X@<  9`("Courier 10cpiXx  @;X@<  9`("Courier 10cpiXx  @;X@<  9`("Courier 10cpiXb6X@C@;6X9`("Courier New (TT)x  @;X@<  9`("Courier 10cpiXb6X@C@;6X9`("Courier New (TT)x  @;X@<  9`("Courier 10cpiXb6X@C@;6X9`("Courier New (TT)ixP7P,xA`&Univers (Scalable)Tp 7,A.Univers Bold (Scalable)ixP 7P,xA`&Univers (Scalable)2!b)b#|x Њ#ixP7P#( EGYPT ă FY 1997 Economic Support Funds: pT(#B$815,000,000 Introduction Beginning with the Camp David Accords in 1979 and continuing today, Egypt has used its political leadership to foster a broader peace between Israel, the Palestinians, and neighboring Arab states. Egypt has not reached its true potential as a national or regional economic power, however, due to the slow growth of its economy and persistent structural imbalances. Slow growth has also led to growing unemployment which threatens Egypt's longterm stability. Both the United States and Egypt recognize that for regional stability to continue, Egypt must be both prosperous and stable. The U.S.Egyptian Partnership for Economic Growth and Development launched by Vice President Gore and Egypt's President Mubarak in September 1994 was created to deal more effectively with problems hindering rapid and sustainable economic growth in Egypt. The Partnership initiative has brought about two fundamental changes in the policy dialogue environment: it has been elevated to the highest levels of decisionmaking and it embodies vital private sector participation. The visit of Vice President Gore in January 1996 for the Partnership initiative, provided timely, positive reinforcement at a difficult juncture in Egypt's development. President Mubarak announced a new vision of Egypt's economic future: a vibrant private sector led open market fully integrated into the global economy. To reinforce this vision, he has appointed a new economic cabinet and a new Prime Minister who shares his vision. The new cabinet is committed to liberalizing the economy by deregulating the trade sector, increasing competition in the financial sector and accelerating the pace of the privatization of the public sector. The Partnership initiative will help facilitate Egypt's transition to a private sector led market economy. The Development Challenge Egypt's path to a marketoriented economy following 40 years of heavy state intervention in resource allocation has yielded significant macroeconomic results. The program began to take meaningful shape in March 1991 with the signing of an IMF Agreement. This was followed in July 1991 by debt forgiveness by members of the Paris Club, who agreed to forgive 50% of their holdings of Egyptian debt. The program was reinforced by a World Bank structural adjustment loan in November 1991 and by a USAID sector policy reform program in August 1992. Thus far, the program has led to a reduction in the budget deficit from 21% to 1.6% of GDP, a drop in inflation from 25% to approximately 9%, the unification of three different exchange rates to a marketdetermined rate, a shift in the current account deficit from an unsustainable $3 billion equivalent per year to a slightly positive level, and an increase in foreign exchange holdings from $1 billion to $18 billion. Substantial improvements were also made in the foreign trade sector both in the reduction of tariff and nontariff barriers and in facilitating exports. Both competition and efficiency in the banking and capital markets have improved substantially with liberalization of interest rates at market clearing levels and the rebirth of the stock exchange and the bond market. The Government of Egypt (GOE) has successfully carried out a difficult first phase agenda of economic stabilization. Today the focus is on accelerating growth to generate jobs for Egypt's large, 60million strong population. Even with a declining population growth rate (2.4% to 2.2% over the 199094 period), Egypt's ability to create jobs and expand basic human services will be sorely challenged and sustainability questionable without greater private sector involvement. The government sector, which dominates the economy, has been unable to provide sufficient jobs for Egypt's work force and the private sector is as yet too small and constrained to meet the growing demand. As a result, Egypt has experienced a gradually rising unemployment rate for years. With an economy growing at 2.5% per year, per capita GNP stagnant at $660, and weak domestic purchasing power, Egypt must look to the export market for much of its growth. The primary challenge is to accelerate reforms that will encourage private sectorled, exportoriented economic growth. Reliable infrastructure, such as telecommunications and power, to support new private sector investments will also be essential. Agriculture's potential contribution to export growth, particularly for horticultural crops, is considerable but constraints remain in areas of agricultural policy, technology, institutions and sustainable water use. Agriculture will also have to play a greater role in meeting the country's job needs. At the same time, other quality of life concerns must continue to be addressed. Infant and underfive child mortality rates have progressively improved, but remain too high. Excellent progress in child spacing has contributed to decreases in maternal mortality, but more effort is required in this area. Treated water has greatly increased over the past decade but demand continues to outpace supply. Serious environmental degradation constrains the country's development and endangers the health and livelihood of its people. Finally, strengthened political, civil, and government institutions are important for the country's evolution to a sustainable democracy. Other Donors USAID works closely with the donor community whose individual contributions to Egypt are substantial and vital to Egypt's development needs. Together, USAID and the donor community disbursed $2.3 billion in 1993 for development activities in Egypt. Complementary support for structural reforms comes from the IMF, the World Bank and the European Union. Other major donors include the African Development Bank, Germany, the Islamic Development Bank, the European Investment Bank, France, Japan and Denmark. FY 1997 Program The FY 1997 request, which maintains the traditional level of U.S. economic assistance for Egypt, supports USAID's countryspecific goal of broadbased sustainable development with improved quality of life and 16 strategic objectives (SOs) programmed in accordance with the four Agency goals. Agency Goal: Broadbased Economic Growth Achieved The objective of USAID/Egypt in meeting this Agency goal is to increase private sectorled, exportoriented economic growth. Accelerated economic growth requires a definitive shift from Egypt's inwardlooking, protected, centrallyplanned, public sector dominated economy towards a competitive, outwardlooking, marketbased one in which the private sector plays the leading role in business and trade decisions. This shift is now being spurred by the Partnership initiative and guided by the President's Council created under it. The Council, composed of major business leaders from the United States and Egypt, has recommended three areas for immediate examination and improvement: trade promotion, privatization and regulatory reform. These areas figure prominently in support being provided by USAID. USAID promotes export development through trade liberalization measures under its sector policy reform program (SPRP); through the Trade Development Center, a nongovernmental organization (NGO) established by the U.S./Egypt Joint Business Council with USAID support to promote exports by networking (trade shows, visits, etc.) and technical assistance at the company level; through agricultural research focused on horticultural crops for the export market; through the development of a modern telecommunications system that facilitates international business contacts; and through a new activity starting in FY 1996 to assist Egypt to enter the global market. USAID's SPRP makes available $200 million annually for cash transfers linked to the achievement of policy reform measures. This program is complemented by technical assistance to help the GOE develop, carry out, monitor and evaluate select elements of its reform program. In 1995, for example, USAID helped the GOE bring about increases in sales tax revenues which rose from the equivalent of about $90 million to $3 billion. Other progress in meeting reform targets in 1995 included the removal of price controls for the tourism industry and the privatization of some enterprises. Over the next year, USAID will work with the GOE on key reforms for trade liberalization such as the continuing reduction in tariffs and the establishment of simplified procedures at major ports where final export/import approvals are processed. USAID in FY 1997 will provide the GOE with timely and effective support for those financial, fiscal, trade, enterprise and environmental reforms within USAID's focus so that greater achievements on a scale envisioned by the U.S.Egyptian Partnership for Economic Growth and Development can be realized. USAID has tackled privatization using a number of approaches including SPRPpromoted reforms and technical assistance activities that analyze policy options, introduce advisory and merchant banking services to evaluate the marketability of properties and assist in their sale, and develop an outreach campaign to encourage greater understanding of privatization issues, among others. With donor support, privatization has gone from a forbidden word to official government policy. By 1995, the GOE completed the sale of 26 companies and the partial sale of another group, but these achievements remain modest relative to the magnitude of government holdings. The Presidents' Council believes that the acceleration of privatization will be the signal to the international business community of Egypt's real commitment to the establishment of a free market economy. With the Counci's support, FY 1997 could well be a banner year for progress in this area. Much of the country's legal, regulatory, judicial, institutional, and tax structures remain linked to the past. Because so many of the elements that make up a conducive business environment still need to be established, the private investment response to Egypt's progress in macroeconomic reform and liberalization has not been substantial. Again, using SPRP and technical assistance, USAID is helping overcome these rigidities. USAID is also providing assistance to help Egyptian firms increase their access to market information and technology, improve their competitiveness, strengthen advocacy groups, and support an active securities market. USAID's private sector commodity import program helps Egyptian private firms establish linkages with U.S. suppliers for expanding production needs. The Partnership initiative, working with USAID, has added a number of important new dimensions such as encouraging private firms to introduce international quality standards into their operations which will lead to international certification known as ISO 9000. In 1995, 30 Egyptian companies signed up for ISO 9000 assessments, of which 6 are now complete. By FY 1997, business technology centers will be added to support increased productivity through the upgrading of technologies and the operation of a business information highway linking the major business associations in Egypt with businesses around the world, using the International Business Exchange and the U.S. Chambers of Commerce. USAID provides U.S. expertise to Egyptian businesses as a catalyst for change. Firms transitioning from state to private ownership, as well as existing private sector firms, are able to tap the experience of the USAIDsupported International Executive Service Corps (IESC) to improve their technical and managerial performance. IESC has already finished over 1,000 technical consultancies to Egyptian firms, helping them introduce modern business practices, increase productivity, sales, investment and trade. Small and microenterprises also receive support through USAID's small and emerging business (SEB) sector program. USAID is working through NGOs to meet SEB needs for credit and related nonfinancial services. The Partnership initiative has been instrumental in expanding the SEB support network to underserved areas in Upper Egypt to ensure that economic incentives for the private sector are regionally widespread. Since USAID began helping Egyptian small and microenterprises in 1988, about 50,000 jobs have been created through 180,000 loans valued at about $120 million equivalent made to more than 75,000 borrowers who collectively have less than a 3% default rate. Egypt's economy is largely dependent on agriculture which accounts for approximately 40% of the country's GDP (including agricultural production, marketing and processing), 50% of overall employment, and 22% of commodity exports. Due to state intervention, agricultural growth during the early to mid1980s was very poor with the value of production growing at less than 1% per year. During the decade 198090, the real value of crop production (measured for 23 major crops) increased by 89%, or by 6.6% annually, leading to a significant increase in real farm income of approximately 24%. Agricultural production slowed in the early 1990s, and grew at an estimated 2.7% in 1995. If agriculture is to realize its potential to add significantly more impetus to Egypt's overall economic growth, the sector must overcome the slow growth of net value added. In Egypt, purchased inputs such as fertilizer and pesticides are used at high levels by the standards of even developed countries. The productivity of those inputs has been declining which is a major reason why value added has not grown significantly since 1986, while gross value of output has grown modestly. USAID's agricultural assistance strategy is an integrated approach aimed at technology and policy reform. It is working to overcome constraints to greater agricultural growth, including those impacting on net value added. With USAID support, further improvements in irrigation structures and systems are giving farmers greater control over water delivery and increased wateruse efficiency. Horticultural technology has demonstrated that with improved wateruse efficiency, yields can be increased from 1.6 kilograms of fruit per cubic meter to over 15.7 kilograms, almost a tenfold increase. Agricultural policy reforms have been extraordinarily successful. All major markets except sugarcane and fertilizer are completely open to private competition and have generated prices equal to world prices. There is no longer a bias against farmers, as there was in the period of heavy government intervention (196092) when agriculture suffered net taxation of over 44%. In FY 1997, technical assistance will further the adoption of technologies for the development of high value horticultural crop exports and address critical constraints to efficient production of Egypt's staple food crops. Reforms will target pricing, marketing and trade, water resources, private sector participation in agribusiness and the GOE's sector resource allocations. Industry and business have benefitted from USAID's large investments in power, over $1.6 billion to date. To ensure the longterm sustainability of the power systems, reforms are an important part of the program. In 1995 reforms included steps taken to improve management efficiency and employee productivity measured in kilowatts per hour generated per employee. In 1997 this sector will face serious policy decisions. The economic pricing of power and the reduction of overdue arrears by public sector companies are among the hardest to be implemented. On the positive side, the Cabinet has reportedly approved the establishment of a vital regulatory board that will be assigned responsibility for pricing and collections. In addition, Egypt's new Prime Minister openly discusses the government's new receptiveness to proposals from private sector enterprises to build, operate and transfer (known as the "BOT" approach) power to the marketplace to supplement public sector generation. The Presidents' Council has urged the "BOT" approach for both telecommunications and power to give the private sector a more prominent role in infrastructure. Modern, reliable, sustainable telecommunications services were an early target of USAID assistance, with assistance totalling about $360 million to date. Increasing emphasis has been placed on the sustainability of the systems. The GOE has made substantial progress on telecommunications reforms. The utility has complied with all financial benchmarks (increased revenues, improved services and efficiency, and adopted business and marketing plans). In 1997 the most notable reform will be opening the telecommunications sector for private business participation while continuing to improve the utility and transform it into an autonomous, selfsufficient entity. Management training will continue to be provided to help the utility deal more efficiently with burgeoning telecommunications demands expected in the next decade. Finally, "investing in people" through education is the latest addition to USAID efforts to promote economic growth. These investments are also essential for improvements under other goals, e.g., those promoting family planning, health and the environment. Support beginning in FY 1996 will be targeted to the most disadvantaged areas of the country and the most neglected members of society, women and girls. To compete in the 21st century, Egypt must do a better job of ensuring universal primary education, a prerequisite to national economic takeoff as experienced by the "tiger" nations of Asia. Egypt has one of the highest literacy gender gaps in the world and unacceptably low literacy rates for both males and females (63% and 34%, respectively). The GOE has acknowledged the problem, has allocated significant budget increases for education in recent years, and has sought assistance from its development partners, including USAID and others (the EU, World Bank, UNICEF, Canada and Germany). As USAID assistance tackles these problems in 1997, the operational watchword will be participation, working primarily through partnerships with local communities and nongovernmental organizations. Nine activities in USAID/Egypt's portfolio support these outcomes. Strategic Objective 1: Accelerated Private Sectorled, Exportoriented Economic Growth Strategic Objective 2: Increased Female Participation in Quality Basic Education in Targeted Areas Agency Goal: Building Democracy The subgoal improved environment for the growth of democracy builds on Egypt's strengths the rule of law, the relative freedom of the print media, the existence of representative groups, such as the People's Assembly and the Shura Council, and the proliferation of special interest groups. With GOE support, USAID is working with the legislature, civil society organizations (CSOs) and the judiciary at a pace that takes into account political sensitivities that exist in these areas. While there is a long history of formal democratic institutions in Egypt dating back to its first parliament in the 1860s, the two bodies of legislature that exist today, the People's Assembly and the Shura Council, a consultative body, suffer from inadequate information services. To overcome this serious constraint, in 1995, to build their capacity for indepth analyses and briefing resources, USAID sent 144 legislative staffers to the Congressional Research Service of the U.S. Library of Congress. There they participated in workshops on the role of parliamentary information services in decision making and the methodology of objective, nonpartisan research and analysis. Staff from the Library of Congress also provided incountry training in Egypt for legislative staff. In FY 1997, USAID will continue to work with the legislative staff to strengthen automation technology, improve the management of human resources made available to support information services and help build up library systems. The pace of democratic changes may be gradual, but promising signs exist for forward movement. Over the past two years, with the support of USAID and other donors, the number of local civil society organizations has grown and become increasingly active. The ability of CSOs, including advocacy groups, to identify their problems and voice them in the public arena is an important focus of USAID assistance. The GOE recently initiated a nationwide participatory rural development program that focuses on locallybased decision making and citizen empowerment. This initiative to strengthen local government is important and should improve the enabling environment for CSOs. USAID assistance plans to support these positive trends. Major challenges to be faced in FY 1997 are the fragmentation of the CSO community which makes it difficult to reach them through conventional activities, Egyptians' general frustrations with continuing economic hardships and their perceived link to structural adjustment, and the continued challenge of Law 32 which restricts freedom of association and activity of the CSO community. The judicial system is unable to be fully supportive of the growing private sector because delivery of justice is slow and judicial personnel are not fully briefed on new laws and regulations affecting the private sector. USAID support for the justice sector, launched in FY 1996, will help improve the operation and performance of Egyptian civil courts as well as the quality of judicial and legal services with respect to commercial and other aspects of modern law. These improvements in the legal system will continue in FY 1997 to serve the emerging private sector more effectively. Three activities support this program outcome. Strategic Objective 3: Increased Use of Information Services by the Legislature in Decision Making Strategic Objective 4: Increased Civil Society Organization Participation in Public Decision Making Strategic Objective 5: Improved Civil Legal System Agency Goal: Stabilizing World Population Growth and Protecting Human Health Tackling family planning and the interrelated problems of maternal and child health requires an integrated approach to the provision of related services along with improvements in the quality of care at both the household and facility levels. This strategic objective focuses on mutually reinforcing objectives that are building on strong records of success. After two decades of work strengthening the Egyptian family planning program, the longterm accomplishments are dramatic. Contraceptive prevalence (the percentage of married women of reproductive age currently using contraception) reached 47% in 1992, almost double the 1980 rate. The total fertility rate (a measure of the average number of live births per woman during her lifetime) fell from 5.2 in 1980 to 3.9 in 1992. USAID support in FY 1997 will continue to work towards Egypt's longterm objective of achieving a contraceptive prevalence rate of around 74% by the year 2015 at which point fertility is expected to reach the "replacement" level of 2.1 children per family. During the late 1970s and early 1980s, USAID assistance in the health sector resulted in greatly expanded access to heath services by the rural and urban poor. Substantial investments were made in training health personnel, upgrading the physical infrastructure, and improving the service delivery system. Since 1983, the focus of the program has been to reduce mortality and illness of infants and children. The Egypt child survival program has been a phenomenal success. The infant mortality rate was reduced 43% between 1980 and 1990; the child mortality rate declined 55% in the same period. However, in 1990, infant and under five child mortality rates remained unacceptably high at 61.5 and 84.8 per 1,000 live births, respectively. When regional and rural disparities are taken into account, a striking gap appears. In Upper Egypt, infant and under five child death rates for 1990 were 105.8 and 146.7 per 1,000 live births, respectively. Maternal mortality, which is also declining, is at 174 deaths per 100,000 live births nationwide, but regional disparities are even more striking. In one Upper Egyptian governorate, Assiut, the maternal mortality ratio is 544. An urgent need exists to target resources to narrow these regional gaps and to improve the health status of the poorest Egyptians throughout the country. In FY 1997, USAID will work to cut mortality rates further, expand and target maternal/child health services and improve their sustainability, building on a range of mechanisms including policy reforms, decentralization and increased private sector and community participation. Strategic Objective 6: Reduced Fertility Strategic Objective 7: Sustainable Improvements in the Health of Women and Children Agency Goal: Protecting the Environment USAID's countryspecific objective is environment managed for longterm sustainability in Egypt provides resources for activities focused in the areas of water/wastewater, air pollution and ecotourism. Since 1975, USAID has invested over $2 billion in urban water and wastewater infrastructure benefitting about 22 million Egyptians. Population density, together with longpostponed infrastructure investments, had severely overwhelmed the water and wastewater services of urban areas throughout Egypt, creating numerous environmental health hazards. In 1995, several of the more recent investments were completed with the following results: 700,000 residents in the poor Cairo neighborhoods of Pyramids and Embaba received sewer hookups; more than 500,000 residents of Suez were connected to the new wastewater treatment plant funded by USAID and, in Cairo, the three major potable water reservoirs serving the heart of the city at Darassa were put into service providing improved water supplies to 3 million people. Institutional reforms in public water/wastewater utilities in 1995 included presidential decrees granting institutional autonomy to the utilities in seven governorates allowing them to operate as economic entities on a cost recovery basis. Tariff collection rates have increased in Cairo and Alexandria and separate bank accounts were established which give these utilities a degree of flexibility in planning their operations. Utilities in both Cairo and Alexandria will be encouraged in FY 1997 to make more progress in increasing the level of tariffs towards cost recovery. In smaller urban areas, tariff reform for water/wastewater is already well advanced. Urban air pollution is another major environmental problem which jeopardizes Egypt's economic development and its citizens' health. Urban air quality is seriously degraded as a result of industrial emissions, vehicles, construction, garbage burning, and natural dust from surrounding deserts. Levels of suspended particulate and lead pollution in Cairo are the highest among the world's megacities and cause an estimated 10,000 to 25,000 additional deaths per year. Children reared in Cairo are particularly vulnerable to the higher than average lead pollution which lowers IQ by four to five points. USAID industrial energy and environment activities are helping reduce the discharge of industrial pollutants and promote energy conservation. Energy efficiency activities have eliminated the following accumulated pollutants from urban air expressed in metric tons (M/T): 25,200 M/T of sulfur oxide; 4,000 M/T of nitrogen oxide, and 7,800 M/T of carbon monoxide. A new Cairo air quality activity initiated in FY 1995 will be working with the GOE in a number of areas: reducing lead emissions from local smelters and in gasoline; instituting a vehicle emissions testing and certification program; and introducing natural gasfueled buses to reduce diesel emission particulate pollution using support from the U.S. private sector. The protection of the environment is also vital to sustaining Egypt's tourism industry, which is the second highest foreign exchange earner. A new activity in sustainable tourism, which grew out of the Partnership, focuses on the preservation of both natural (e.g., coral reefs) and cultural (e.g., antiquities) national treasures that are two keys to the continued health of the tourism sector. Strategic Objective 8: Increased Access to and Sustainability of Water and Wastewater Services Strategic Objective 9: Reduced Generation of Air Pollution Cross Cutting Issues. In addition to the strategic objectives above, USAID supports crosscutting assistance through several special objectives and mission support objectives which provide resources to foster university linkages, improve English language skills, encourage capacity building through development training, and some limited technical and financial assistance to support development problems related to the overall program. ( EGYPT _ FY 1997 PROGRAM SUMMARY %($ Thousands) ă  X\\    dd  | ddx4  ddx4 | *  *#Tp 7#Encouraging Economic Growth Stabilizing Population GrowthProtecting the EnvironmentBuilding DemocracyProviding Humanitarian Assistance Total*. . *USAID Strategic Objectives*    *1. Accelerated Private Sectorled, Exportoriented Economic Growth ESF*z z *1.a. Improved Economic Policy Framework ESF,4 <DL"$&T)+.\02 5d79@CtE0 210,000 210,000*    *1.b. Strengthened Private Market Institutions ESF  244,000 244,000*z z *1.c. Increased Privatization ESF 10,000 10,000 *  *1.d. Improved Capacity of NGOs to Promote Small and Emerging Business Growth ESF 15,000 15,000*    *1.e. Accelerated Adoption of Agriculture Technologies ESF 14,000 14,000 *z z *1.f. Improved Agriculture Policies ESF 75,000 75,000*l l *1.g. Increased Capacity. improved Efficiency and Enhanced Sustainability of Power Services ESF 50,000 50,000 *l l *1.h. Increased Access. improved Efficiency and Enhanced Sustainability of Telecommunications Services ESF 0 0*  *2. Increased Female Participation in Quality Basic Education in Targeted Areas ESF 10,000 10,000*l l *ܙ3. Increased Use of Information Services by the Legislature in Decision Making ESF 3,283 3,283*  *4. Increased Civil Society Organization Participation in Public Decision Making ESF 25,000 25,000*z z *5. Improved Civil Legal System ESF  5,000 5,000*  *6. Reduced Fertility ESF 10,000  10,000*  *7. Sustainable Improvements in the Health of Women and Children ESF 37.500 37,500*  *8. Increased Access to and Sustainability of Water amd Wastewater Service ESF 53,217 53,217*z z *9. Reduced Generation of Air Pollution ESF 20,000  20,000*  *Other Crosscutting Assist ESF 33,000 33,000*            *Total ESF 698,000  10,000 73,217 33,283  815,000   \\X\  `|&|&R #ixP 7P#j$ACTIVITY DATA SHEET  X\\  PROGRAM: Egypt X` m hp x (#%'0*,.8135@8: