WPC 2 ZB 0Xx  @;X@Ыx  @;X@<  9`("Courier 10cpiXxp7,xA`&UniversScalable^H  @S ^@>  9`(2Courier 7pt (Land PX SC)^X~xP7XP,xA`&Univers (Scalable)XTxP7P,xA`&Univers (Scalable)xp7,xA`&UniversScalable2#|iЊ#xp7# REGIONAL ACTIVITIES IN THE NEW INDEPENDENT STATES FY 1997 Assistance to the NIS Request:p(#C$48,000,000 Introduction Since its inception in 1992, USAID assistance to the NIS has progressed from a regional program to a countryspecific one. While initially the regional approach gave the United States the flexibility to respond quickly to varying needs across countries in a rapidly transforming environment, the program has matured. USAID now has more field representation which has provided improved knowledge of a country's transition environment and enabled development of countryspecific strategies. Nevertheless, some activities are appropriately funded regionally because several countries are benefitted. Described below are activities that still operate regionally, across countries, including: regional enterprise funds; performance funds; contract personnel who provide technical services to more than one country; and regional conferences, working groups and courses that benefit participants from a number of countries. Activities of some other USG agencies which receive funds through transfers from FSA accounts are in some cases applied regionally. FY 1997 Program USAID is pursuing the following strategic goals with regionally designated funds in the NIS: Strategic Goal: Economic Restructuring USAID seeks to foster the emergence of a competitive, marketoriented economy in which the majority of economic resources is privately owned and managed. Enterprise Funds: The Central Asian Republics and West NIS Enterprise funds continue to foster private sector development by providing investment capital to small and mediumscale businesses in Kazakstan, Kyrgyzstan, Tajikistan, Turkmenistan, Uzbekistan and in Ukraine, Belarus and Moldova, respectively. A new Caucasus Enterprise Fund is expected to begin doing the same using funds appropriated for FY 1996. The demanddriven funds are most successful in entrepreneurfriendly business climes. The Defense Enterprise Fund in the NIS, previously funded by the Department of Defense, will receive FREEDOM Support Act funds in FY 1997. Private Sector: Regional funds cover Washingtonbased technical advisors who support multiple field missions in project design and implementation, and service contracts that assist USAID with a variety of nontechnical support functions. Interagency service agreements, such as that with the Securities and Exchange Commission, help in performance monitoring and assessment across the region. Strategic Goal: Democratic Transition Under this goal, USAID funds support the transition to transparent and accountable governance and the empowerment of citizens through democratic political processes. Political Process: Funds will be reserved for unanticipated requests for election assistance, including training and advisory services provided by the International Foundation for Electoral Support. Rule of Law: Funds are provided for technical assistance programs and seminars addressing topics such as Civil Code drafting which are common to multiple countries, and expanding activities of the Sakharov Center Human Rights Institute. Funds are also provided for regional anticrime and corruption programs being implemented by various U.S. government law enforcement agencies, including the FBI, Treasury and the Criminal Justice Division of the Department of Justice. Strategic Goal: Social Stabilization Humanitarian: USAID assistance responds to humanitarian crises and strengthens the capacity to manage the human dimension of the transition to democracy. Health: USAID uses regional health funds to provide technical assistance for: vaccine and pharmaceutical delivery, hospital partnerships, and women's health programs not clearly attributable to individual country programs. Strategic Goal: Crosscutting/Special Initiatives Funds for programs which cut across a number of strategic objectives or which are not directly related to the achievement of USAID objectives. Performance Funds: In a changing political environment, U.S. interests are best served by having a modest level of Performance Funds available for support of new or accelerating macroeconomic reform or superior performance in key economic sectors. Should a peace agreement emerge resolving the status of Ngorno Karabakh and ending the embargo of Armenia, performance funds would provide initial support for peace initiatives. Regional Training: USAID supports the New Independent States Training and Exchanges Project. Training programs funded under this project are directly linked to the USAID strategic objectives for each country. In order to maintain the project, there are functions which are carried out regionally because of the economies of scale inherent in combining process functions. For example, regional training funds support maintenance of health coverage, tax assistance for trainees, and data collection. In addition, regional funds are used for impact analysis, project monitoring and report preparation. Since there is a substantial amount of training that is done in the U.S., there is more U.S. based monitoring in this project than in most USAID financed activities. Other Agencies: Similarly funds are provided to the Peace Corps, the Trade and Development Agency, and the State Department for Science Centers. #^H  @S ^@# *#X~xP7XP# Ã +$NIS REGIONAL =FY 1997 PROGRAM SUMMARY *#TxP7P# ă r ddx` 88888 ddx` 88888 r &  & Strategic ObjectivesEconomic RestructuringDemocratic TransitionSocial StabilizationCrosscutting / Special InitiativesTotal&. . &Privatization 300,000 300,000&. . &Fiscal Reform &. . &Private Enterprise 9,700,000 9,700,000&. . &Financial Reform&. . &Energy 200,000 200,000&. . &Citizens' Participation 500,000 500,000&. . &Legal Systems 2,600,000 2,600,000&. . &Local Government 700,000 700,000&. . &Crises14,600,00014,600,000&. . &Social Benefits 350,000 350,000&. . &Environmental Health 800,000 800,000&. . &Crosscutting / Special Initiatives18,250,00018,250,000&~     ~     &TOTAL10,200,000 3,800,000 15,750,000 18,250,00048,000,000` `   Director, Office of New and Independent States Affairs: Brian Kline #xp7#