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 THE NEW INDEPENDENT STATES
FY 1998 Assistance to the NIS Request . . . . . . . . . . . . . . . . . $99,500,000 FY 1998 P.L. 480 Title II . . . . . . . . . . . . . . . . . $4,838,000 Introduction
Since its inception in 1992, USAID assistance to the NIS has progressed from a regional program to a country-specific 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 country-specific 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 1998 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, market-oriented economy in which the majority of economic resources is privately owned and managed.
Privatization, Financial Sector and Fiscal Reform: Regional funds cover Washington-based technical advisors who support multiple field missions in project design and implementation, and service contracts that assist USAID with a variety of non-technical support functions. Interagency service agreements, such as that with the Securities and Exchange Commission, help in performance monitoring and assessment across the region.
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.
Enterprise Funds: The Central Asian Republics and West NIS Enterprise funds continue to foster private sector development by providing investment capital to small and medium-scale businesses in Kazakstan, Kyrgyzstan, Tajikistan, Turkmenistan, Uzbekistan and in Ukraine, Belarus and Moldova, respectively. In response to the Trans-Caucasus Enterprise Fund earmark, USAID is establishing two finance programs. The first is a private investment fund partially guaranteed by the Overseas Private Investment Corporation. The second is a small enterprise lending program, which reports directly to USAID. The Defense Enterprise Fund in the NIS will continue to receive FREEDOM Support Act funds in FY 1998.
Trade and Investment Support: As part of the Partnership for Freedom, funds will be provided to support a new Trade and Investment facility designed to promote the investment and trade links necessary to growth.
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 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 anti-crime 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. In addition to Freedom Support Act funds, some food aid is allocated on a contingency basis for potential emergencies.
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.
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 the NIS, the Partnership Program will build on the successes of past programs -- such as the Aral Sea Initiative in the Central Asian Republics -- and emphasize the institutional sustainability and role of environmental NGOs in creating a legacy of cooperation on environmental issues in the region. To maximize the impact of USAID's investment throughout the region, support will be provided to identify and apply cross-border lessons in the environment sector.
Cross-cutting and 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, such as with the Central Asian Republic Energy Initiative. 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.
NIS REGIONAL
FY 1998 PROGRAM SUMMARY*
Strategic Objectives
Economic Restructuring Democratic Transition
Social Stabilization Cross-cutting / Special Initiatives Total Privatization 610,000 -- -- -- 610,000 Fiscal Reform 600,000 -- -- -- 600,000 Private Enterprise 39,100,000 -- -- -- 39,100,000 Financial Reform 1,150,000 -- -- -- 1,150,000 Energy 886,000 -- -- -- 886,000 Citizens' Participation -- -- -- -- -- Legal Systems -- 1,550,000 -- -- 1,550,000 Local Government -- -- -- -- -- Crises -- -- -- -- 8,738,000 -- FSA -- -- 3,900,000 -- -- -- P.L. 480 Title II -- -- 4,838,000 -- -- Social Benefits -- -- 635,000 -- 635,000 Environmental Health -- -- 554,000 -- 554,000 Cross-cutting / Special Initiatives -- -- -- 50,515,000 50,515,000 TOTAL 42,346,000 1,550,000 9,927,000 50,515,000 104,338,000 * FREEDOM Support Act (FSA) funds
Director, Office of New and Independent States Affairs: Brian Kline
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