USAID CP '98: Central Eastern Europe Regional

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).

REGIONAL ACTIVITIES IN CENTRAL EUROPE

FY 1998 Assistance to Central Europe Request . . . . . . . . . . . . . . . . . $83,000,000

Introduction
Since its inception in 1989, USAID assistance to Central Europe has evolved from a regional program to a country-specific one. 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 staff which has provided improved knowledge of a country's transition environment and enabled country-specific strategy development. Country-specific programs within Central Europe are described earlier in this presentation.
Described below are activities that still operate regionally, across countries, such as: the South Balkan Development Initiative; Enterprise Funds; anti-crime and corruption programs, regional energy and environmental programs, contract personnel who provide technical services to more than one country; and regional working groups and courses that benefit participants from a number of countries.
FY 1998 Program
USAID is pursuing the following strategic goals with regionally designated funds in Central Europe:
Strategic Goal: Economic Restructuring
USAID seeks to foster the emergence of a competitive, market-oriented economy in which the majority of economic resources is privately owned and managed.
Enterprise Funds: The Baltic-American Enterprise Fund budget remains regional, since it funds investments in Latvia, Estonia and Lithuania. Regional funds also are reserved for the better performing Enterprise Funds throughout the region. Once performance is determined during the fiscal year, the funds will be transferred to the appropriate country Enterprise Fund.
Energy: Given the international character of energy supply systems, USAID's program in this area facilitates regional energy cooperation and trade. Activities in FY 1998 will focus on the continued development of a regional system for managing electricity transmission among the Baltic countries, establishment of an effective regional power pool among central European countries (Poland, Czech Republic, Slovak Republic and Hungary), development of an improved system for power transmission among these countries and for integration of the power pool with the power grid in Western Europe; and strengthened business associations and non-government organizations (NGOs) in support of public policy for energy efficiency.
Privatization, financial sector and fiscal reform: Contract personnel who service the region are funded, and funds are available for Treasury and Security and Exchange Commission technical advisors who work in more than one country. Assessments in the fiscal and financial areas are performed to identify roadblocks to reform.
Private Sector: The Cross Borders activity, initiated in 1997, extends successful experiences and best practices between ENI countries in the areas of private enterprise, exports, trade and development, and/or advocacy programs. This inter-regional effort operates in both the CEE and NIS. Other efforts provide restructuring assistance to CEE firms, develop regional training opportunities and coordinate volunteer executives.

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.
Rule of Law: Funds are provided for regional training, exchanges and technical assistance programs of the American Bar Association - Central and Eastern European Legal Initiative for key legal reformers and members of the judiciary. Funds are also provided for an enhanced anti-crime and corruption program being implemented by various U.S. government law enforcement agencies, including the FBI, Treasury and the Criminal Justice Division of the Department of Justice.
Public Administration/Local Government: Regional funding supports training and regional networking in addressing basic public administration problems, such as decentralizing power, accountability, transparency and responsiveness. Other funds are used to support the creation of municipal finance systems throughout the region.
Independent Media: Exchanges and regional training will be funded to encourage regional media linkages.
Political and Social Process: Funds will be set aside for unanticipated requests for election assistance, training of labor leaders, and possible assistance in conflict resolution.
Non-Government Organization (NGO) Development: Inter-country cooperation and training of newly developed, NGO advocacy groups is encouraged under "Democracy Networks," a regional program which came out of a Presidential Initiative.
Baltic Democracy Foundation: USAID is exploring establishment of a Foundation for Local Democracy to encourage the development of public-private partnerships in target cities to achieve community-based objectives. The foundation is expected to attract private funding to continue local democracy work in the Baltic countries beyond the closeout of USAID assistance.
Strategic Goal: Social Stabilization
USAID assistance responds to humanitarian crises and strengthens the capacity to manage the human dimension of the transition to democracy.
Labor Market Transition: The Department of Labor maintains regional training programs for all countries in the region and supports World Bank social sector reform initiatives.
Environment: The ENI Environment Partnership Program will be initiated in FY 1998. It will facilitate institutional links between the region and the U.S. private sector, NGOs and universities. In Europe, the Partnership Program will build on past successes in introducing "clean" technology to industry and will emphasize trade and investment opportunities in environmental technology and services.
Cross-cutting and Special Initiatives.
South Balkan Development Initiative: This program will help Albania, FYRMacedonia and Bulgaria, front-line countries most severely affected by the conflict in the former Yugoslavia. With normal trade routes to Serbia cut off, the resultant economic setback has threatened the survival of these nascent democracies. In coordination with and with funds leveraged from other donors, the initiative will improve links among the South Balkan nations, encourage regional integration and promote cooperation.

Serbia/Montenegro/Kosovo: USAID will continue to respond to opportunities to expand support of the nascent democracy movement in Serbia/Montenegro and surrounding areas. Funds will support independent media and civil society development, with an emphasis on East-East exchanges taking place in neighboring countries such as Hungary and Romania, and including activists from Vojvodina, Kosovo, Montenegro, and Serbia proper. If conditions permit, an in-country technical assistance program will be launched focussing on election reform. If there is satisfactory reform in Serbia, permitting its readmission into the international community, modest assistance focusing on the development of a free market economy may be initiated.
Health: The health partnership program holds regional conferences and workshops for management development and nursing reform.
Training: Funds are set aside for regional participant training and the Georgetown University program. Evaluation and project development and support also are funded here.

CEE REGIONAL
FY 1998 PROGRAM SUMMARY*

Strategic Objectives
Economic Restructuring Democratic
Transition
Social Stabilization Cross-cutting / Special Initiatives Total

Privatization 50,000 -- -- -- 50,000

Fiscal Reform 900,000 -- -- -- 900,000

Private Enterprise 11,800,000 -- -- -- 11,800,000

Financial Reform 2,400,000 -- -- -- 2,400,000

Energy 950,000 -- -- -- 950,000

Citizens' Participation -- 5,700,000 -- -- 5,700,000

Legal Systems -- 6,700,000 -- -- 6,700,000

Local Government -- 700,000 -- -- 700,000

Crises -- -- 130,000 -- 130,000

Social Benefits -- -- 1,200,000 -- 1,200,000

Environmental Health -- -- 5,800,000 -- 5,800,000

Cross-cutting / Special Initiatives -- -- -- 46,670,000 46,670,000

TOTAL 16,100,000 13,100,000 7,130,000 46,670,000 83,000,000

* Support for East European Democracy (SEED) Act funds
Director, Office of European Country Affairs: David Cowles

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Strategic Objectives	Economic Restructuring	Democratic Transition	Social Stabilization	Cross-cutting / Special Initiatives	Total
Privatization	50,000	--	--	--	50,000
Fiscal Reform	900,000	--	--	--	900,000
Private Enterprise	11,800,000	--	--	--	11,800,000
Financial Reform	2,400,000	--	--	--	2,400,000
Energy	950,000	--	--	--	950,000
Citizens' Participation	--	5,700,000	--	--	5,700,000
Legal Systems	--	6,700,000	--	--	6,700,000
Local Government	--	700,000	--	--	700,000
Crises	--	--	130,000	--	130,000
Social Benefits	--	--	1,200,000	--	1,200,000
Environmental Health	--	--	5,800,000	--	5,800,000
Cross-cutting / Special Initiatives	--	--	--	46,670,000	46,670,000
TOTAL	16,100,000	13,100,000	7,130,000	46,670,000	83,000,000