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S88xfxxxxxxxxxx8S{gci{P8ix]i`xrxxxxxxxxxxSxxxxxxofxGcxxxxxxxSxxxxxxxSxxxxSxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx8xxx8xxx8xxx8xxxxxxxxxxxxx{`ic]S{``SfMx`f.+oS{Scx]xP`fc`flMiMrcxx]x{`x8irr`lrxz88iiii{xiiirrr8fSJ8Muu]daqqZZnn{{xu{{M{aZZ5M5M҅P?k25 6^D<@CourierCourier BoldAntique OliveAntique Olive BoldAntique Olive ItalicUniversCG TimesCG Times BoldUnivers BoldUnivers Italic"i~'K2^88Sgg888g8888gggggggggg88V{gux`]{x.]oYxckkgxxxrd888SS8Y`Y`Y<``((Y(````;S<`]]]PJSJg8ggggg8ggggggSgd({Y{Y{Y{Y{YuY`Y`Y`Y`Y.(.(.(.(x`````x`x`x`x`r]{Yxa``r]x`c`{Z{g{ZuZuZugugxnaZggggaZ{a{g{g{g{gxgxg/(gggg8dPggogZ(Z9ggZ4Z(xa{xaxgagk>iiffSSxSrff8SS?"xxSx[xxS姧0S88xcxxxxxxxxxx8S{g]ix{S8ixSi`xlxxxxxxxxxxYxxxxxxofxGcxxxxxxxSxxxxxxxJxxxxJxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx8xxx8xxx8xxx8xxxxxxxxxxxxx{]iY]S{Y`MfGx`Y.(oS{V]x]iG`x`cYccJiMrYuxPr{{`x8irr{Y]rrz88iiii{xiiirrr{8`SJ8Muu]daqqZZnn{{xu{{M{aZZ5M5M҅P?kl?xxx,"x6X@`7X@?xxx,)x `7X|f(i81,]iA P-7Pe~)q88,#q\o pvN7r~)i81,6!i?Z x97Xsd!S,,,KSxP7Pp}*h88,KhxP7P 6t`%O,(,SZO PE37Ptu`%Q,(,\Q_ pi7q}*i88,jC@ips7z}*h88,whxU7X "i~'K2^88Sgg888g8888gggggggggg88V{gux.]oYxckkgxxxrd888SS8Y`Y`Y<``((Y(````;S<`]]]PJSJg8ggggg8ggggggSgd({ }K-#hxP7P#ъX` hp x (#%'0*,.8135@8:has enormous potential. It possesses an educated workforce, a highly diversified economy, and an  d(#abundant natural resource base. This potential enhanced considerably in recent years through  d(#implementation of an International Monetary Fundbacked economic structural adjustment program that,  d(#zthough not without problems, has put the country on the path toward private sectorled growth. For  d(#lexample, the foreign exchange regime has now been completely unified (the value of the national  d(#currency is determined by market forces), and foreign investors are free to remit 100% of earnings  d(#\outside of the country. In the rural sector the maize market has been completely liberalized, resulting  d(#in greater availability of foodstuffs at cheaper prices. Elimination of the subsidies has greatly reduced  d(#pressure on the national budget. These reforms have substantially increased Zimbabwe's prospects  d(#^for growth and its attractiveness as a target for foreign direct investment, including American  d(#investment. In this regard, U.S. exports to Zimbabwe grew at an average annual rate of over 8%  d(#jbetween 19851994, four times the overall average for subSaharan Africa. Assuming that Zimbabwe  d(#continues to stay the course of economic reform in the years to come, the country will likely graduate  d(#]from the ranks of "developing nations" sometime in the first decade of the 21st century. The U.S.  d(#Government has a keen interest in assuring that this occurs. U.S. assistance will ensure that free  d(#.market reforms continue to build ties between Zimbabwean enterprises and foreign investors, including  d(#those in the American private sector. Thus, assisting in the development of markets for U.S. goods  d(#land services is in the national interest of the United States. As Zimbabwe's economy grows, the  d(#beneficial secondary effects will include an increasingly vibrant trading partner in southern Africa that  d(#already contributes substantially to regional stability through its economic viability and its important contributions to regional peacekeeping.  }K- The Development Challenge.  }Kp-  d(#Zimbabwe's development indicators compare favorably with those of its neighbors in subSaharan  d(#Africa. The total fertility ratethe number of children the average Zimbabwean woman will bear during  d(#her lifetimeis presently 4.3 compared to the regional average of 6.1. Life expectancy at birth is 60  d(#>years compared to a regional average of 52, though this has actually declined slightly from 62 years  d(#in 1987. Immunization coverage rates are also relatively high: the percentage of children aged 01  d(#inoculated against tuberculosis, DPT (diphtheria, pertussis, and tetanus), polio, and measles is 95, 80,  d(#80, and 74, respectively, compared with regional averages of 63, 50, 50, and 51, respectively. Finally,  d(#/illiteracy, at 33% of the population (26% for males and 40% for females), is considerably lower than the regional average of 51% (39% for males and 62% for females).  d(#However, a number of very significant development problems remain. Many are due at least in part  d(#to austerityrelated declines in real per capita expenditure in the public health budget. Infant and child  d(#mortality rates, though greatly reduced from preindependence levels, have stagnated since 1988, and  d(#the maternal mortality rate remains high at 283 deaths per 100,000 live births. In addition,  d(#immunization coverage rates have fallen significantly. The country's investment climate, while greatly  d(#yimproved from past years, needs to be stimulated further through broadened participation and a reduced  d(#Lpublic sector role. Housing shortages remain acute, reducing living standards and dampening economic  d(#opportunity for lowincome families. The HIV/AIDS pandemica serious public health menace in  d(#LZimbabwemust also be slowed and ultimately stopped. And better care must be taken to ensure more  d(#rational use and stewardship of the natural resource base. Above all, the government's fiscal house  d(#must be put in order so that the private sector can perform its role effectively as an engine of national and regional growth. "h)0*0*0*z+"Ԍ d(#>Among low income countries, Zimbabwe is considered "moderately indebted." At independence the  d(#\country's external debt was equivalent to 16% of GDP, a figure that subsequently rose to over 50%,  d(#>mostly from nonconcessional commercial sources. There has since been a substantial reduction in  d(#\commercial bank exposure. The government's domestic borrowing, however, has driven up interest  d(#zrates in recent years and sharply reduced the amount of national savings available for investment by  d(#the private sector. In 1995 public debt stood at roughly 90% of GDP, about onethird higher than in 1994.  }K@- Other Donors.  }K- d(#With an annual operating budget of about $20 million, USAID is currently the fourth largest provider  d(#of bilateral grant assistance to Zimbabwe after Japan, Germany, and Sweden. At the macro level,  d(#Mcoordination is assured through the World Bank Consultative Group mechanism. Additional working d(#zlevel bodies exist to ensure sectoral coordination in such areas as health and family planning, private  }K -sector development, lowincome shelter, and natural resources management.  }K - FY 1997 Program.  d(#USAID's strategy for helping Zimbabwe achieve sustained growth focuses on broadened ownership and  d(#investment at all levels of the economy, increased household food security for the rural poor, reduced  }K- d(#fertility, and increased use of HIV/AIDS prevention methods. This strategy supports overall U.S.  d(#interest in developing future markets for U.S. goods and services and encouraging the Government of  d(#Zimbabwe (GOZ) to continue the excellent leadership role it has played in recent years in regional  d(#peacekeeping operations such as in Angola and Liberia. The strategy supports structural adjustment,  d(#>increased economic growth that is sustainable and equitable, and the fostering of an open economy conducive to investment.  d(#kUSAID/Zimbabwe is one of the Bureau for Africa Missions that has recently been named to graduate  d(#]from USG development assistance in FY 2003. Consultations between the State Department and  d(#USAID are being finalized at the writing of this Congressional Presentation. As well, preliminary  d(#discussion on the strategic framework for the final Graduation Strategy is taking place at both the field  d(#and central levels. Because final operating expense budgets remain unclear for FY 97 and beyond, it  d(#is possible that program budgets will alter to some extent in coming months. To respond to the  d(#!downsizing exercise, the Mission is proposing a strategy that follows the narrative and program  d(#{summary contained herein but would require some flexibility. In addition to adjustments in each of  d(#?USAID/Zimbabwe's strategic objectives, the Mission is pursuing the possibility of a Foundation or  d(#Endowment instrument that would permit USAIDsponored activities in Zimbabwe at the termination of direct USAID development assistance.  d(#Three strategic objectives contribute both to the Mission's overall objectives and to overarching Agency goals as follows:  }K - Agency Goal: Protecting the Environment  }K!-  d(#USAID/Zimbabwe's first strategic objectiveincreased household food security in communal areas of  d(#Mnatural regions IV and Vhas largely been achieved through the neartotal liberalization of the maize  d(#/market and the dissemination of improved varieties of millet and sorghumtwo crops better suited to  d(#]the more arid climatic conditions in these more environmentally fragile regions. The dismantling of  d(#government controls has had the effect of lower prices and greater availability of the country's staple  d(#zgrain for the average Zimbabwean consumer. In addition, an entire new industry comprising 15,000 d(#20,000 micromillers (grain processors) has emerged, and the need for government subsidies (totaling  d(#zover $40.0 million per year) has been eliminated. Under the Regional Sorghum and Millet Improvement  d(#yProgram, the number of hectares planted to improved varieties of these two droughtresistant crops has gone from zero in 1988 to 69,000 in 1995, bringing additional food security to rural households."h)0*0*0*z+"Ԍ d(#LԙThe remaining key aspect of this strategic objective is the provision of support for the natural resources  d(#management program known as CAMPFIRECommunal Areas Management Program for Indigenous  d(#Resources. Based upon the success of a pilot activity, this program has now been extended throughout  d(#the droughtprone areas known as Natural Regions IV and V, where the majority of Zimbabwe's rural  d(#kpoor resides. The program provides a dual benefit by (1) channelling funds that would otherwise go  d(#into central government coffers into local communities and households via grassrootslevel wildlife  d(#management activities (increasing food security at the household level by increasing household  d(#^incomes), and (2) improving the actual quality of that management. Since 1989 the CAMPFIRE  d(#program has drastically reduced the number of poaching incidents and nearly $5.0 million has been  d(#Nraised by local communities (for individual household and communitylevel use) from sustainable wildlife management activities.  d(#With the successes of programs aimed at maize market liberalization and the dissemination of improved  d(#millet and sorghum varieties, USAID/Zimbabwe is now undertaking, in collaboration with its non d(#\governmental organization (NGO) and Zimbabwean Government partners, an indepth review of this  }K - d(#strategic objective. Initial indications are that the revised objective will give relatively greater emphasis  d(#[to sustainable natural resource management, the conservation of biological diversity, and, through local d(#level activities with CAMPFIRE communities, accelerated decentralization and empowerment of local populations.  }K- ,` Strategic Objective 1:` Increased Household Food Security in Communal Areas of Natural Regions IV and V(#  }K- Agency Goal: Encouraging Broadbased Economic Growth  d(#MUSAID/Zimbabwe's second strategic objectivebroadened ownership and investment at all levels of  d(#[Zimbabwe's economyacknowledges that access to economic resources and economic empowerment  d(#\has been disproportionately vested in the minority population (of European descent) and government  d(#=itself. By broadening access to economic assets, opportunities for increased competition and improved  d(#efficiency are created. USAID assistance has three components: increased access to lowincome  d(#shelter and its attendant economic benefits; support to the private sector through support for employee  d(#ownership schemes, business/trade association support, and mechanisms to increase access to capital for small and mediumsize enterprises; and promotion of local private sector training organizations.  d(#Success has been most evident to date in the area of lowincome shelter, where USAID has been  d(#involved in promoting Americanstyle housing development and mortgage lending techniques. In FY  d(#1995 over 7,000 lowincome households in seven towns received mortgages for houses. Several  d(#thousand more units are presently under construction. Since 1992 the number of lowincome  d(#Zimbabweans than can afford a housethat critical first step toward increased family welfare and  d(#economic participationhas tripled as a direct result of reforms negotiated through the USAID program.  d(#NIn this process, an American firmGS Holdings (California)has introduced new (for Zimbabwe)  d(#Mconstruction techniques that both reduce the overall cost of housing to the customer and reduce the  d(#amount of time required for construction. To reduce the costs of imported materials further, GS  d(#Holdings has invested in a small steel framing factory in Zimbabwe and plans to go into interior wallboard production locally as well.  }K#- ,` Strategic Objective 2:` Broadened Ownership and Investment at all Levels of Zimbabwe's Economy(#  }KH&- Agency Goal: Stabilizing World Population Growth and Protecting Human Health  }K'-  d(#.USAID/Zimbabwe's third strategic objectivereduced fertility and increased use of HIV/AIDS prevention  d(#measuresis aimed at reducing two key threats to sustainable development in Zimbabwe, rapid  d(#]population growth and the spread of HIV/AIDS. In family planning, due in large measure to USAID"h)0*0*0*z+"  d(# assistance, Zimbabwe now has the lowest recorded total fertility rate (TFR) in subSaharan Africa.  d(#lBetween 1984 and 1994, the TFRthe theoretical measure of the average number of children the  d(#kaverage woman will have in her lifetimefell from 6.5 to 4.3, a full 33% drop. During the same period  d(#the use of contraceptives increased by 55%. About 42% of married women now use modern  d(#contraceptives versus just 27% in 1984. USAID's present strategy is to promote contraceptive  d(#>diversity and, in particular, the use of longeracting contraceptive methods. USAID provides most of  d(#?the oral contraceptives currently used in Zimbabwe, particularly two pill brands (Lo Femenal and  d(#Ovrette) manufactured by Wyeth, an American company. The Government of Zimbabwe plans to  d(#assume responsibility for the procurement of pills by the end of the program and hopes to continue to buy Wyeth products thereafter.  d(#/The HIV/AIDS pandemic continues to worsen in Zimbabwe. Although 50,000 AIDS cases have been  d(#reported, a conservative estimate is that over 10% of the population of about 11 million people are HIV  d(#positive, and that 150,000 of these cases are clinically pronounced. There are approximately 4,500  d(#deaths a year, or 375 a month. In a recent unpublished survey of urban prenatal clinics fully 40% of  d(#the 2,5003,000 women clients sampled were HIV positive. Tuberculosis cases resulting from HIV  d(#exceeded 23,000 in 1994 and are rising by about 30% per year according to Ministry of Health  d(#sources. USAID interventions are focused on supporting changes in high risk behavior in selected  d(#joccupational groups, including those in the uniformed services, commercial farmers and their employees  d(#Land families, university students, and factory and transportation workers. USAID supports Government  d(#of Zimbabwe agencies, the National AIDS Coordination Program, private sector institutions, appropriate  d(#>local businesses, United Nations Children's Fund, and nongovernmental organizations to strengthen HIVprevention activities in key populations at high risk of sexuallytransmitted HIV infection.  }K- Strategic Objective 3:` Reduced Fertility and Increased use of HIV/AIDS Prevention Measures(# `(#(#  }K- "p0*0*0*"  }K- 0gZIMBABWE  }K- .FY 1997 PROGRAM SUMMARY ă  }K-#SxP7P##hxP7P# h ddx !ddxX Z h    &&   `F#O PE37ZP#J"      _ Encouragingg Broadbased  Economic  Growth("CXStabilizing LWorld @?Population D`Growth & BbProtecting HHuman HHealth ("8 8 8 8 "Protecting the Environment("     Building Democracy("5 5 5 5 "Providing FHumanitarian Assistance 50"             `Fm TOTALS   X &&  USAID Strategic Objectives              0 &&  1. Increased Household Food Security in Communal Areas of Natural Regions IV and V Dev. Fund for Africa #*, *, *, *, *, #t #    6,108,422 #l l l l ?1,111,488 #R, #V" V" V" V" ) 7,219,910     &&  2. Broaden Ownership and Investment at all Levels of Zimbabwe Economy Dev. Fund for Africa#*, *, *,  8,876,971#t#   #l#R,#V" V" V" ) 8,876,971      &&  3. Reduced Fertility and Increased Use of HIV/AIDS Prevention Measures Dev. Fund for Africa #*, *, *, *, #t t t O8,555,491 # #l l l l #R, #V" V" V" ) 8,555,491  P   &W&   `F Totals Dev. Fund for Africa Int'l Narcotics Control P.L. 480 Title IIZW#*,  8,876,971 ( ( ZW#t O8,555,491 r r ZW# S 6,108,422   ZW#l  1,111,488 @ @ ZW#R, P R, P ZW#V" v 24,652,372 *" *" P   W `FZ  }KL-#hxP7P#`:(#USAID Mission Director: Peter Benedict  XX "0*0*0* "  XX COACTIVITY DATA SHEET  }K- PROGRAM: ZIMBABWE  }KX- d(# TITLE AND NUMBER: Increased Household Food Security in Communal Areas of Natural Regions IV and V, 613S001  }K- STATUS: Continuing  }K- PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1997: $7,219,910 DFA  }Kx- INITIAL OBLIGATION: FY 1996; COMPLETION DATE: FY 1999  }K- d(#Purpose: To develop sustainable income streams for rural households, avoid social and economic  d(#upheaval stemming from drought, and expand the private sector's role in the production and marketing  d(#of principal food grains in the rural sector; to spread adoption of more droughttolerant millet and  d(#sorghum varieties (as an alternative to the more traditional maize); and to increase nonfarm income  d(#kpossibilities in the rural sector, particularly in those areas where annual income is significantly below the national average.  }KH - d(#Background: This SO seeks to ensure that the rural poor are active participants in the national  d(#development process. The highest priority in this regard is ensuring that people living in the least wellendowed, semiarid regions have adequate access to food and both farm and nonfarm income.  }Kh- d(#USAID Role and Achievements to Date: USAID has been the principal donor supporting the  d(#Government of Zimbabwe's (GOZ) liberalization of the grain marketing sector. Reforms carried out  d(#under the Grain Marketing Reform Program have resulted in the neartotal liberalization of the maize  d(#market in Zimbabwe, yielding greater availability of grain at reduced cost, employment creation through  d(#emergence of some 15,00020,000 micromillers (grain processors), and elimination of the need for  d(#massive annual government subsidies totaling over $40 million to the maize marketing system. The  d(#Regional Sorghum and Millet Research Program has seen the number of hectares planted to improved  d(#varieties of sorghum and millet grow from zero in 1988 to over 69,000 in 1995. Since the inception  d(#1of the indigenous, sustainable management of the natural resourcesbased Communal Areas  d(#1Management Program for Indigenous Resources (CAMPFIRE) program in 1989, the number of  d(#participating households has expanded nearly elevenfold, from 9,000 to about 103,000. Moreover,  d(#zeven though average household revenues earned by program participants has remained fairly stable over time, the program's overall revenues increased dramatically. Revenues in 1995 were $2.7 million.  }KX- d(#\Description: Principal activities supporting this strategic objective include the Grain Marketing Reform  d(#Program, Grain Marketing Research, the multidonor Regional Sorghum and Millet Improvement project, and the Natural Resources Management project.  }Kx- d(#Host Country and Other Donors: Countries and development organizations carrying out complementary  d(#\activities include the World Bank, Holland, Canada, Germany, the European Union, Sweden, Norway,  d(# Great Britain, Denmark, and the Ford and Rockefeller Foundations. USAID is the largest donor in the CAMPFIRE program. Donor coordination is excellent; USAID contacts with other donors are strong.  }K`"- d(#Beneficiaries: Rural families and communities, farmers, and grain traders in Natural Regions IV and V; smallscale millers and maize consumers throughout the country.  }K$- d(#Principal Contractors, Grantees, or Agencies: Contractors: Development Associates, Price Waterhouse,  }K%- d(#Coopers and Lybrand and Purdue University. Grantees: GOZ and International Crop Research Institute  }KH&- d(#Lfor the SemiArid Tropics. Agencies: Grain Marketing Board, Small Scale Millers Association, Zimbabwe  d(#Farmers Union, Southern African Development Community, CAMPFIRE Association, and World Wildlife Federation.  }Kh)-"h)0*0*0*z+ "Ԍ  }K-XP hp x (#%'0*,.8135@8:reducing high risk behavior are underway with selected occupational groups such as the uniformed  d(#services, transport workers, and students in postsecondary institutions. In family planning the impact  d(#/has been substantial. Since 1984 the total fertility ratethe average number of children the average  d(#Zimbabwean woman will have in her lifetimehas declined by a third, from 6.5 to 4.3. During the same  d(#period, the contraceptive prevalence rate has increased by 55% , from 27% of married women in 1984 to 42% in 1994. x  }K- d(#Description: Principal activities supporting this strategic objective include the Zimbabwe Family  d(#lPlanning Project and the Zimbabwe AIDS Prevention and Control Project in addition to a number of  d(#0"buyins" to central USAID/W activities and projects such as AIDS Control and Prevention Project  d(#(AIDSCAP) and Central Contraceptive Procurement. A future activity aimed at increasing the role of local NGOs in AIDS prevention and counseling is currently in the design phase.  }K- d(#Host Country and Other Donors: USAID collaborates with the World Bank's Family Health Planning II  d(#Project and activities supported by the United Nations Fund for Population Agency. USAID is the principal donor in this sector.  }K- d(#=Beneficiaries: All Zimbabweans seeking to 1) plan the growth of their families, and 2) avoid contracting sexually transmitted diseases, including the virus that causes AIDS.  }K@- d(#Principal Contractors, Grantees, or Agencies: Contractors: John Snow Inc., Macro International, Family  d(#Health International, Johns Hopkins University, Deloitte Touche, Association for Voluntary Surgical  }K - d(#Contraception, and AIDSCAP. Agencies: Zimbabwe National Family Planning Commission, Ministry  }K!- d(#of Health, Grantees: Commercial Farmers Union, National Railways of Zimbabwe, Triangle Limited, Delta Corporation, and the University of Zimbabwe Department of Community Medicine.  }K#-Major Results Indicators:  }K$- xP P  hhCqBaselineppTarget  }K%-Reduction in total fertility ratehhCq4.3 (1994)pp4.0 (1998)  }KH&-Increase in total number of condomshhCq33 million (1994)75 million (1998) sold or distributed to target population  }K'-Increase in percent of target group hhCq29% men (1995)45% men (1997)  }K(-reporting condom use in lasthhCq22% women (1995)33% women(1997) sexual intercourse"h) 0*0*0*z+ "Ԍ }K-Increased percent of surveyedhhC33.7% men (1994)pp45.0% men (1998) men with sexually transmitted diseases seeking medical treatment