Note: This document may not always reflect the actual appropriations determined by Congress. Final budget allocations for USAID's programs are not determined until after passage of an appropriations bill and preparation of the Operating Year Budget (OYB).
ANGOLA
FY 1998 Development Fund for Africa . . . . . . . . . . . . . . . . . $10,000,000 FY 1998 P.L. 480 Title II . . . . . . . . . . . . . . . . . $22,594,000 Introduction
Since Angola has been wracked by civil strife for over 30 years, most Angolans have never lived in a peaceful, stable environment. With the signing of the Lusaka Protocol in November 1994, armed confrontation ceased and the foundations for a peaceful civil society are slowly being established. U.S. national interests strongly support the consolidation of peace within Angola, the reform and restructuring of the national economy and integrating a stable and democratic Angola into the Southern African region. These conditions are vital to safeguard our trade and investment interests and to reduce the need for expensive humanitarian interventions.Seven percent of U.S. petroleum imports currently come from Angola. This is projected to increase to 15% by the year 2030. Angola is the United States' second-largest investment site (over $3 billion) and third-largest trading partner in sub-Saharan Africa. The country is a small, but stable, market for U.S. capital equipment and manufactured goods, especially those related to the petroleum industry. Angola is often considered the missing piece of the Southern African mosaic. With increased social and economic stability, the country will play a more significant role in the future growth of the sub-regional economy.
U.S. assistance has saved hundreds of thousands of lives through emergency food aid and medical interventions targeted largely at children and victims of war. If the peace process falters, large quantities of food assistance and/or expensive peace-keeping interventions will again be required as a humanitarian response and to prevent instability from spreading across national borders.
The Development Challenge
The prolonged civil strife in Angola devastated the country in every conceivable way. The conflict began in the late colonial period and continued in the post-independence era, first as an internal struggle which then became internationalized and entangled in cold war ideologies and partisanship. In 1991, the Bicesse Peace Accord was brokered between the Peoples' Liberation Movement of Angola (MPLA) and the National Union for the Total Independence of Angola (UNITA) which put forth a peace process that led to the holding of presidential elections in 1992. Although the U.N. declared the elections free and fair, UNITA did not accept the outcome and intense fighting broke out country-wide between UNITA and Government forces. In the three decades of conflict, over 500,000 people died, 3.5 million were internally displaced, hundreds of thousands fled to neighboring Zaire and Zambia and 70,000 Angolans suffer disabilities caused by landmines. Civil society ceased to exist, human rights abuses became the norm, rural and village infrastructure was destroyed or neglected, millions of land mines were laid in all parts of the country and the economy largely collapsed. The majority of Angolans were and remain politically disenfranchised and economically marginalized.After prolonged negotiations, the parties to the conflict reached a peace agreement that was formalized with the signing of the Lusaka Protocol in November 1994. This agreement provided for a ceasefire, disarmament of UNITA, formation of a unified army and police force, formation of a government of national unity and reconciliation and the transformation of UNITA from an armed movement into a political party. A United Nations peacekeeping operation, the United Nations Verification Mission for Angola (UNAVEM III) was launched in 1995 and was recently extended until February 1997.
The Government of the Republic of Angoal (GRA) is engaged in discussions with the International Monetary Fund (IMF) on an Extended Structural Adjustment Facility (ESAF), which, if successful, couldmean that an IMF program will be in place in CY 1997. Such a long-term IMF-funded program to support broad-based economic reform and stabilization efforts, will indicate that the country is on the path to sustained economic structural adjustment. The most important adjustment measures needed are reduction of the budget deficit, reorientation of domestic recurrent and capital expenditures and increased control over oil revenues. The U.S. has emphasized the need for macro-economic reform at every opportunity, and has offered technical assistance and training to key Angolan economic decision-makers. Additionally, USAID is providing assistance to privatize utilities management and encourage private foreign investment.
Prior to FY 1996, USAID assistance was virtually all emergency and humanitarian in nature. In fact, from FY 1992-1996, emergency and humanitarian assistance efforts totalled over $335 million, and averaged approximately $75 million annually. This included food aid and disaster assistance provided by PVOs and United Nations organizations. This assistance saved thousands of lives through emergency food aid and medical interventions targeted largely at children and war victims. These emergency relief activities have evolved during the peace process and presently are supporting the resettlement of 215,000 internally displaced Angolans. Resettling Angolans, who receive food, seeds, tools, resettlement kits and some agricultural training, are re-establishing and rebuilding self-reliant communities. Title II resources reflect the movement from emergency/crisis programs to transitional activities which support reintegration and resettlement. In FY 1997, the NGO community requested approval of multi-year programs, incrementally funded to respond to the uncertain conditions that do not allow planning or programming for long-term food aid. It is hoped that by FY 1998 that these programs will become increasingly developmental, and that fully one-third will not require internal transport, shipping and handling (ITSH) support.
In 1996, the portfolio expanded to include assistance for strengthening civil society emphasizing human rights and civic education, and macroeconomic restructuring, while maintaining a significant emergency humanitarian effort. Future assistance depends on the progress of consolidating peace and stability in Angola, in particular on creating a government of national unity and on freedom of movement in the countryside. It is important to remain supportive of these key initiatives, and to work with the Angolan Government, given that such efforts are infinitely less costly than reverting to a more crisis-oriented, emergency/relief program. Delays in demilitarizing the countryside mean that resettlement and rehabilitation efforts are likewise delayed, and that many displaced people could require additional emergency assistance.
The devastation and destruction caused by the years of war have taken their toll on the Angolan people, their society and the economy. Donors can fund only a small part of the effort required to rebuild Angola; these efforts will need to be financed largely from domestic resources. While there was renewed movement at the end of 1996 to complete the peace process, both sides of the conflict must show a greater willingness to resolve conflict peacefully and invest their considerable financial resources to rebuild the country. Implementation of the Lusaka Protocol is taking longer than envisaged, and there are signs that certain areas will continue to be unstable for the foreseeable future. USAID/Angola's strategy is to initiate activities that build indigenous capacity and create self-sustaining, replicable investment opportunities which can leverage both internal and external financing.
USAID opened a Mission in Angola in 1996. The establishment of an in-country presence in Angola has facilitated better donor coordination, more informed and participatory programming, and increased results and impact monitoring. The Angola program, a transitional assistance program with a duration of five years, is scheduled to close in 2001.
Other Donors
The donor community has provided significant humanitarian assistance in support of the peace process, and to rebuild Angola. Donors have financed: (a) the largest food airlift since World War II; (b) the largest extant U.N. peace-keeping operation, costing well in excess of $1 million per day; (c) hugeyearly humanitarian donations of food, medicine, medical care, shelter and reintegration support for internally displaced and refugee populations; (d) quartering sites in all parts of Angola for 60,000 former UNITA soldiers and their 100,000 dependents and training and reintegration support for those demobilized soldiers. As the peace process is consolidated, the focus of donor investment is gradually shifting to rehabilitation and reconstruction and laying the groundwork for development investments. In September 1995, at the Brussels Roundtable, donors pledged $1.1 billion to assist in the reconstruction of Angola. About $800 million was to go toward rehabilitation and development activities and about 200 million was for humanitarian assistance activities. The top four donor entities, accounting for two-thirds of the total amount pledged, were: 1) U.S. ($190 million); 2) World Bank (IBRD) ($180 million); 3) France ($150 million) and 4) the European Commission ($145 million).The International Monetary Fund (IMF) is considering extending Angola a credit of $75 million, which if successfully concluded, would become part of a larger ESAF. The IBRD has suspended most of its loans, but has nine operations under disbursement. These cover a number of priority activities including infrastructure rehabilitation, capacity building, especially in macro-economics and several social sector activities. These activities represent an IBRD investment of about $270 million.
The U.S. plays a very critical role in Angola's transition to a peaceful, democratic society. U.S. humanitarian and development assistance make it the largest bilateral donor to Angola. Other major sources of humanitarian and development assistance include the European Community, the World Food Program, France and Portugal.
FY 1998 Program
USAID's effectiveness in Angola is contingent on the continued successful implementation of the peace process. USAID plans to continue assisting war-affected Angolans to (a) resettle, reconstruct and rehabilitate communities; (b) increase food crop production; and (3) help build an open society and develop responsive political institutions. Where feasible, USAID will support improved agricultural extension and agricultural management capacity. USAID will help establish the foundations of a civil society through developing the capacities of indigenous NGOs, human rights organizations, media advocacy groups and political parties. The program will strengthen the responsiveness of government to civil society by working with Parliament and local government. Finally, USAID will support the process of sustained economic reform through the provision of technical assistance in planning macroeconomic policy and institutional reform. These strategic objectives are mutually reinforcing over time. With increased security and self-determination at the village level, marketable agricultural surplus will be produced, which will help recapitalize the rural areas and provide a broader foundation for economic recovery.Agency Goal: Providing Humanitarian Assistance
Catholic Relief Services (CRS), CARE, World Vision, Save the Children (US) and the World Food Program will continue to implement direct feeding and food-for-work (FFW) programs to support Angolans as they move through the resettlement and rehabilitation period. USAID anticipates that most of the internally displaced, refugees and ex-combatants will have returned to interim or permanent resettlement sites in 1997 and will be able to harvest a food crop by mid-1998. Thus, large-scale food assistance will be required through, but not after, June of 1998. Food assistance will be provided as long as needs remain for: internally displaced people without access to farmland; seed protection rations for one to two planting seasons for people resettling in interim or permanent sites; and, FFW for one or two years for people not engaged in agricultural activities. Seeds, tools and basic resettlement kits will continue to be provided to resettling internally displaced people (IDPs). The international PVOs will continue to reconstruct village infrastructure such as markets, latrines, health posts and schools and rural infrastructure projects including roads, bridges and irrigation systems.Food assistance will be required until Angolans are able to grow their own food or can afford to import what they cannot grow themselves. To do so, they need peace, stability and recapitalization. To that end, a major donor effort to supply seeds and basic farming implements has been ongoing since 1993. Massive quantities of seeds have been imported for distribution to war-affected and resettling Angolans. However, these seeds have neither been tested for nor adapted to the conditions in Angola. With USAID funding, World Vision and the International Crop Research Institute for the Semi-Arid Tropics (ICRISAT) have begun to develop, multiply and disseminate improved or adapted cassava, maize, peanut, bean, cow pea and sweet potato in Angola. The adapted or improved seed and plant stocks are more resistant to pests, have increased yields and are more palatable. The objective of the World Vision/ICRISAT "Seeds of Freedom" activity is to meet a significant proportion of 1997 imported seed requirements with improved seeds, and by 1999, all imported seed requirements will be met with improved varieties appropriate to Angola's climate and soil. After 1999, it is anticipated that all seeds imported by PVOs, the GRA itself and private companies will be improved and adapted to Angolan conditions. If program resources are reduced in 1998, USAID's ability to support this objective will be seriously jeopardized.
- Strategic Objective 1: Increased Resettlement of Displaced Angolans
Agency Goal: Building Democracy
If Angola is to abandon its 30 year legacy of civil war, it must (1) reconstruct its civil society with a culture of tolerance and respect for human rights and (2) integrate the warring factions into a transparent and accountable government. Building a democratic civil society is a tenuous process, since democracy and participatory government are relatively new concepts in Angola and institutionalization of these concepts is in a nascent stage. It requires the promotion of non-governmental organizations which have broad membership and can articulate the legitimate needs of its people in terms of furthering human rights, free access and circulation of information and national reconciliation. PACT's non-governmental organization (NGO) strengthening activity will focus on indigenous NGO organizational development (strategy formulation, management including financial, fund-raising and project implementation) as well as formation of alliances between and among NGOS, the government, the private sector and donors. World Learning's activities will strengthen media and human rights organizations.Political integration, building on the Lusaka Protocol, will be supported through several program activities. As an integrated government is formed, USAID assistance will work to help establish a representative, transparent and accountable Government of National Unity. Activities to further these objectives include the National Democratic Institute's participatory local government activity, which works at the lowest levels of government to improve the dialogue between the local government and its constituency; and the International Republican Institute's parliamentary and political party capacity-building activities to train and strengthen national level political institutions.
USAID will put in place a new initiative to develop community-based organizations in 1997, and in 1998 envisages, depending upon the constitutional revisions currently underway, providing assistance to build a foundation for elections anticipated at the local, parliamentary and presidential levels, likely to come in 1998 - 2000. The NGO strengthening and the community-based organization development activities will have to be scaled back or eliminated if resources are diminished.
- Strategic Objective 2: Strengthened Democracy and Governance Capacities
Agency Goal: Encouraging Broad-based Economic Growth
Making broad-based economic growth a reality in Angola requires moving away from the command economy that has dominated Angola since colonial times. The process of economic restructuring and liberalization will be protracted. The first step will be making the economic management improvementsthat will lead to an IMF agreement, which in turn will be supported by donors filling the financing gap, debt renegotiation and credits from the IMF and IBRD to support the economic reform process once it has begun in earnest. USAID strategy - that of leveraging resources both domestic and offshore - is to provide some of the technical assistance and models necessary for Angola to stabilize its economy and promote broad-based, productive economic growth from the private sector rather than continue its command economy dominated by the public sector and the rent-seeking economic behaviors so prevalent in the past. In 1998, USAID will provide assistance in commercial law reform - particularly legislation to open the economy to quality domestic and foreign investment - to mobilize capital and catalyze capital formation. These efforts will be implemented in conjunction with support to community revitalization and recapitalization to allow the majority of Angolans to participate in the economic development of their country. These community-based interventions are crucial to the achievement of broad-based economic growth.
- Strategic Objective 1: Increased Resettlement of Displaced Angolans
- Special Objective 3: Technical Assistance for a Negotiated Economic Structural Support Program
Agency Goal: Stabilizing World Population Growth and Protecting Human Health
Of the total funding requested for Population and Health, the entire $3,500,000 is planned for health activities. Virtually all areas of Angola face shortages of potable water, health infrastructure, medicines and medical staff, exacerbated by the problems faced by war victims (displaced children, orphans and those needing prosthetics assistance). Malnutrition is apparent throughout the country. USAID will fund activities in the following general areas: community infrastructure rehabilitation, including water systems; agricultural infrastructure rehabilitation; and provision of seeds and basic tools to assist with the resettlement of displaced families. Food production will be coupled with activities that promote improved nutrition and assistance targeted to vulnerable families. To be effective, assistance in these areas must focus on the communities and the land to which people will return (agriculture and community revitalization) and on the physical well-being of the victims of war.
- Strategic Objective 1: Increased Resettlement of Displaced Angolans
ANGOLA
FY 1998 PROGRAM SUMMARY
Encouraging
Broad-based Economic Growth
Stabilizing World Population Growth & Protecting Human Health
Protecting the Environment
Building
Democracy
Providing Humanitarian Assistance
TOTALS
USAID Strategic and Special Objectives S.O. 1. Increased Resettlement of Displaced Angolans. - Dev. Fund for Africa
- P.L. 480 Title II
-Economic Support Funds
7,100,000
---
6,000,000
3,500,000
---
---
200,000
---
---
---
---
---
---
22,594,000
---
10,800,000
22,594,000
6,000,000
S.O. 2. Strengthen Democracy and Governance. - Dev. Fund for Africa
-Economic Support Funds
---
---
---
---
---
---
2,000,000
3,000,000
---
---
2,000,000
3,000,000
Sp.O. 3. Technical Assistance for a Negotiated Economic Structural Support Program - Dev. Fund for Africa
-Economic Support Funds
---
1,000,000
---
---
---
---
---
---
---
---
---
1,000,000
Totals - Dev. Fund for Africa
- P.L. 480 Title II
-Economic Support Funds
7,100,000
---
7,000,000
3,500,000
---
---
200,000
---
---
2,000,000
---
3,000,000
---
22,594,000
---
12,800,000
22,594,000
10,000,000
USAID Representative: Nicholas Jenks (Acting)
ACTIVITY DATA SHEET
PROGRAM: ANGOLA
TITLE NUMBER: Rehabilitating Post-War Communities, 654-S001
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1998: DFA $10,800,000; ESF $6,000,000 $22,594,000 P.L. 480 Title II
I NITIAL OBLIGATION: FY 1996; ESTIMATED COMPLETION DATE: FY 1999
Purpose: Gradually reduce humanitarian food aid while concurrently engaging in quick-impact community rehabilitation projects, especially agriculture and health infrastructure rehabilitation in rural communities where the resettlement of dislocated persons, refugees and demobilized soldiers will be concentrated. Assist resettling families with the means to become food-crop self-sufficient. Produce and disseminate improved seeds and planting materials to farmers. Continue to provide assistance to war-affected children and victims of land mine accidents.
Background: Three decades of civil war in Angola have left the economy devastated and the majority of the population in poverty and unable to feed itself. The war claimed over 500,000 lives and left over three million Angolans homeless. Virtually the entire non-coastal population of Angola is war-affected. Despite a wealth of natural resources, the gross domestic product declined from an average of $820 between 1996-88 to $410 in 1995. More than 70% of Angola's population is considered to be food insecure. The Ministry of Health estimates that at least 20% of infants have been malnourished every year since the mid-1980's. Infant mortality is estimated at 350/1000. Resettling Angolans need recapitalization, in the form of seeds, agricultural implements and household equipment. Infrastructure in the rural areas needs to be rehabilitated to provide the basic services to ensure survival and provide the foundation for future economic growth. The lack of freedom of movement and security in the countryside has inhibited resettlement and rehabilitation efforts. However, significant numbers of internally displaced people are leaving the provincial cities for interim resettlement areas. With the assistance of CARE, World Vision, CRS and Save the Children (SCF/US), they are building houses and cultivating food crops. USAID likewise supports significant community infrastructure reconstruction (schools, health posts, rural roads, bridges, and irrigation systems) in both Government and UNITA-controlled areas through grants to U.S. PVOs and a contract with Creative Associates. Through World Vision and ICRISAT, USAID is producing improved and adapted seeds and plant material to increase small-holder production, with a primary focus on communities to which significant numbers of internally displaced and demobilized soldiers will return.
USAID Role and Achievements to Date: USAID has been a major contributor and U.S. PVOs have been the most important implementors of emergency and humanitarian relief, resettlement, and rehabilitation activities in Angola. CARE has rehabilitated 764 kms of roads and completed 741 Food For Work infrastructure projects. Humanitarian demining organizations (Mines Advisory Group, Greenfields, and the Halo Trust) have demined or surveyed hundreds of kilometers of roads and opened up thousands of hectares of agricultural land. SCF/US has resettled 60,000 internally displaced people on safe (demined or surveyed) land, and CARE, CRS, World Vision have resettled an additional 84,000. The adapted cassava strain developed by World Vision is disease resistant, and the yield is double that of the traditional variety in Angola. Christian Children's Fund has set up a structure with the Catholic Church to reintegrate child soldiers into their home communities. Over 500 underage soldiers were demobilized by December 1996. USAID/Angola opened a bilateral Mission in May 1996, and in FY 1996 made grants to World Vision, ICRISAT, Christian Children's Fund, Vietnam Veterans of America Foundation, the International Organization for Migration and the GRA Ministry of Social Reintegration.
Description: USAID will fund activities in five general areas: community infrastructure rehabilitation; agricultural infrastructure rehabilitation; food, seeds and basic tools for resettling displaced people; improved and adapted seeds and plant material; and direct assistance to victims of war through a prosthetics factory and rehabilitation center for land mine victims in Moxico Province. To be effective, assistance in these areas needs to be focused on the communities and the land to which people will return (agricultural and community revitalization) and on the physical well-being of the war victims (prosthetics for land mine victims).
Host Country and Other Donors: The GRA contributed 33% of the total project cost for a joint demobilization support project USAID obligated in FY 1996. In addition, 50% of the local currency generated under P.L. 480 Title I programs will be programmed by USAID/Angola in support of this and other Mission strategic objectives. Other major donors to the resettlement and rehabilitation effort are the E.U., the Netherlands and the UNDP, soon to be joined by the IBRD with a $24 million Emergency Social Recovery Program. Food aid meetings called by UCAH, bi-weekly meetings of the "Technical Working Group on Demobilization" of the Joint Peace Commission, demobilization support meetings called by UNDP, and seed and tool committee meetings called by the FAO. USAID maintains close contact with the U.S. oil companies to explore collaborative programming of the oil companies' social responsibility funds.
Beneficiaries: 1.3 million resettling internally displaced people, 330,000 refugees, 40,000 demobilized soldiers and their 100,000 family members, 3,000 war-affected children and 2,500 victims of land mines.
Principal Contractors, Grantees or Agencies: Vietnam Veterans of America Foundation, World Vision, SCF/US, CRS, WFP, Christian Children's Fund, CARE, ICRISAT and others.
Major Results Indicators:
Angola Regional Rehabilitation Project Baseline TargetProsthetics fitted 0 1,070
Mobility aids produced 0 500
Wheelchairs produced 0 240
Food Aid Programs
Number of FFW infrastructure projects 171 1,500 completed
kilometers of roads maintained 764 1,500
Resettlement Activities
Emergency Relief Beneficiaries 815,000 100,000
IDPs resettled 215,000 715,000
Child soldiers assisted 97 3,000 with reintegration
Seeds for Freedom Project
Ratio of improved seed < 5% > 40% to total imported seed
PVOs participating in the 5 TBD Seeds for Freedom activity
ACTIVITY DATA SHEET
TITLE NUMBER: Strengthened Democracy and Governance Capacities, 654-SOO2
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1998: DFA $2,000,000; ESF $3,000,000
INITIAL OBLIGATION: FY 1996; ESTIMATED COMPLETION DATE: FY 2000
Purpose: To strengthen civil society and political institutions with a focus on NGOs, human rights organizations, media advocacy groups, political parties and the Parliament.
Background: The constraints to achievement of a peaceful, stable and democratic society in Angola are largely domestic, and are linked to the achievement of stability in the rural areas and macro-economic reform in the capital. Angola's civil society is among the weakest in the world. The country has been at war since before independence, broken only by eighteen months following the Bicesse Accords and the two years since the signing of the Lusaka Protocol. Civil society has never had the opportunity to fully develop. Political parties, other than the MPLA and UNITA, are marginalized; there are only two stable and well-established indigenous NGOs in the country; local administrators and provincial governors are accountable to the central government rather than to their constituents; human rights abuses are widespread; and the press is censored and self-censoring. Implementation of the Lusaka Protocol has been slow, and much remains for the non-military measures to be fully implemented. USAID's program is designed to provide a foundation for internal conflict resolution without resorting to military or totalitarian options. The development of NGOs and other aspects of civil society proved to be critical during South Africa's and Mozambique's transitions from conflicted to more open and peaceful societies.
USAID Role and Achievements to Date: The USG is a major player in the quest for a durable peace in Angola. This is demonstrated by its active involvement in the peace treaty negotiations, continued support for humanitarian relief and the UNAVEM III Peacekeeping Mission, and the continued application of diplomatic pressure on the Government of the Republic of Angola and UNITA to meet their commitments in the Lusaka Protocol. USAID is the first donor to put in place a broad-gauged democracy and governance program in Angola. Initially, USAID efforts were concentrated on the quartering, civic education and demobilizing of troops and alternative radio broadcasting. Subsequently, through grants to Search for Common Ground and the Conflict Management Group, USAID provided training at the grass-roots level in conflict management and dispute resolution. Achievements to date include a journalist training seminar implemented by USIS attended by 63 journalists, a daily Voice of America broadcast of uncensored Angolan news, and conflict management efforts. In late FY 1996, USAID put in place a number of sustainable development activities to strengthen civil society and political institutions.
Description: USAID will fund activities in six general areas: development of local NGOs, including strategic alliances between NGOs and the government and the private sector; participatory local government and constituent relations; political party and parliamentary strengthening; human rights and media organizations; development of community-based organizations; and election monitoring (depending on the timing of elections). Rather than implement new stand-alone activities in conflict management and resolution, USAID will continue to build these concerns into each of the activities discussed above.
Host Country and Other Donors: The Government of the Republic of Angola (GRA) is generally supportive of donor efforts in civil society strengthening. The UNDP has in place an activity designed to lead to the decentralization of public administration over several years. Portugal, France, Sweden and the E.U. have all expressed interest in Parliamentary strengthening and study visits. The Netherlands and the IBRD are collaborating with USAID on indigenous NGO strengthening.
Beneficiaries: All Angolans.
Principal Contractors, Grantees or Agencies: Pact, NDI, IRI, World Learning, USIS, VOA
Major Results Indicators:NGO Strengthening Project Baseline Target
NGOs strengthened 0 12
NGO advocacy campaigns begun 0 4
NGO strategic alliances 0 2 formed
Increased domestic funding TBD TBD of local NGOs
Increased number of funding TBD TBD sources for local NGOs Parliamentary and Political Party Training
Parliamentarians trained 0 120
Political parties trained 0 TBD
Improved organization of 0 TBD political parties and their increased knowledge of democratic political procedures
Other Activities
Human Rights Organizations 0 2 strengthened
Media Advocacy Groups 0 TBD strengthened
Journalists trained 63 100
ACTIVITY DATA SHEET
PROGRAM: ANGOLA
TITLE NUMBER: Support for an Economic Structural Adjustment Program, 654-SP03
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1998: ESF $1,000,000
INITIAL OBLIGATION: FY 1996; ESTIMATED COMPLETION DATE: FY 2000
Purpose: To provide technical assistance and training to the Government of the Republic of Angola (GRA) as it develops and implements an Extended Structural Adjustment Facility (ESAF) and a Structural Adjustment Program to control deficit spending, reallocate domestic expenditures in line with development priorities and improve transparency and accountability.
Background: Recent experience with economic reform programs in Angola has been characterized by starts and stops. In 1994, the GRA adopted a reform program entitled the "Economic and Social Program", which was a well-designed, relatively comprehensive set of reform measures which formed the basis for negotiations with the IMF on a monitoring program in July 1995. In September 1995, the GRA prepared and began to implement a expanded 20 point program of reform, but unilaterally suspended the reform program at the end of September. The monitoring program was suspended by the IMF in December 1995. In mid-1996 the GRA replaced its entire economic team, and directed the new team to put together another reform program. The current reform program has been successful in controlling inflation, reducing it from 3,700 percent in 1995 to what would be less than 60% annualized based on the performance over the last several months of 1996. Inflation (on a monthly basis) in September and October was 5.4 percent and 2.1 percent respectively. However, total debt increased by $800 million in 1996 to a new total of $12.5 billion. In October 1996, the Managing Director of the IMF visited Angola and an IMF/IBRD assessment team visited in November, 1996 and will return in early 1997.
USAID Role and Achievements to Date: USAID is a minor but important actor in this multi-donor effort led by the IMF and the IBRD. In late FY 1996, USAID contracted with the Harvard Institute for International Development (HIID) and Coopers and Lybrand to provide macro-economic technical assistance. The first task assigned to HIID, to begin in early 1997, is to review and suggest modifications to the 1995 Foreign Investment Code. Subsequent efforts will directly support negotiation and implementation of the ESAF.
Description: USAID will fund activities in macro-economic policy reformulation and commercial law reform. USAID's strategy for this limited duration program is to leverage both domestic and external resources. As such, USAID will concentrate on improving the enabling environment for investment.
Host Country and Other Donors: The new GRA economic team, headed by the Minister of Planning, is currently engaged in negotiations with the IMF, which, if successful will lead to policy conditionality on the expenditure and revenue sides that will go a long way to stabilizing the economy and laying a sound basis for more appropriate public sector resource allocation. The IBRD hosts periodic donor meetings on economic reform.
Beneficiaries: Domestic entrepreneurs and consumers, domestic and foreign investors.
Principal Contractors, Grantees or Agencies: Harvard Institute for International Development, and others to be identified.
Major Results Indicators: Baseline TargetForeign Investment Code Improved 0 1
Technical assistance to support the ESAF provided 0 1
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