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).
ZIMBABWE
FY 1997 FY 1998 FY 1999 Actuals Estimate Request Child Survival and Disease.......... $4,200,000 $1,950,000 $1,550,000 Development Assistance.............. $12,700,000 $9,900,000 $500,000
Introduction
The United States has a national interest in supporting Zimbabwean leadership to strengthen regional economic and political stability. Though Zimbabwe's performance under its economic reform program has been mixed, it has made impressive progress toward a market-oriented economy which will hopefully lead to greater investment, including investment from the American private sector. U.S. development assistance supports the continuation of free market reforms and enhances Zimbabwe's prospects of becoming an emerging economic success story in the southern Africa region. The U.S. is Zimbabwe's fourth leading import source (after South Africa, the United Kingdom and Japan) and trade flows are increasing. As Zimbabwe's economy grows, beneficial effects are an increasingly viable southern Africa regional market and a growing market for U.S. goods and services. The United States also values Zimbabwe's continued participation in regional peacekeeping activities.
U.S. development assistance in the 1990s has focused on bolstering Zimbabwe's economic potential, with a theme of increasing equity and participation of Zimbabweans in their economy. In helping to better balance population growth rates with economic growth rates, U.S. assistance to Zimbabwe in family planning efforts has made it one of the most successful programs in Africa (fertility rates dropped by one-third between 1984 and 1994). The United States has supported successful, sustainable natural resources management through decentralization and assistance to the private sector so that local communities, rather than the central government, are able to make decisions on natural resources on behalf of their own citizens. USAID's private sector activities have increased access to low-income home mortgages. Loans to micro, small and medium enterprises have provided successful models of how to address the difficult equity issues in Zimbabwean society. Finally, as the HIV/AIDS impacts have begun to emerge, the United States is providing key assistance to help reduce HIV transmission.
The Development Challenge
If economic reform continues, Zimbabwe stands an excellent chance of becoming more independent of donor assistance. Thus, Zimbabwe has been slated to graduate from U.S. assistance in 2003. Current assistance in each sector will be progressively and rationally phased out. At the same time, clear developmental issues remain a concern in Zimbabwe, and USAID and other U.S. government agencies are actively engaged in promoting democracy and good governance in Zimbabwe. There are several crisis points in Zimbabwean society ranging from inequitable land distribution, to continued economic mismanagement, and underlying racial and ethnic tensions that have the potential for increasing social, political and economic instability. Recent civil disturbances and riots in Zimbabwe, resulting from price increases, steep currency declines and new taxation measures coupled with a heavy-handed government response demonstrate the vulnerability of the current state of democracy. USAID continues to pursue approaches fostering a new U.S. Government - Zimbabwe partnership focused on providing Zimbabweans with increased opportunities to participate in economic and political processes.
USAID has supported in significant impressive and measurable progress in Zimbabwe's key social indicators since achieving independence in 1980. This includes increasing life expectancy and immunization coverage rates and decreasing the fertility rate and illiteracy.
A number of significant development problems remain; most turning on issues of equity, such as the
unresolved land reform problem. Many of the problems are due in part to austerity-related declines in real per capita expenditure in the social sector budget; for example, health sector gains are eroding. In addition, HIV/AIDS is an increasingly serious threat to the impressive gains made in public health over the past two decades. Despite fertility declines, population growth still outpaces economic growth. External debt, while not excessive in terms of overall gross domestic product, was approximately $4.9 billion in 1995. The investment climate has improved from the 1980s, but must be stimulated further through broadened participation and a reduced public sector role. Housing shortages remain critical, reducing living standards and dampening economic participation for most families. There is a demonstrated need for more rational use and participatory stewardship of the natural resource base. Drought remains a threat to food security and is a critical economic variable as El Niño threatens once again. Above all, a Government of Zimbabwe halt of recent reversals on macroeconomic reform is required to put the fiscal house in order so that the private sector can perform its role effectively as an engine of national and regional growth.
Other Donors
In order of decreasing magnitude of annual assistance, the leading donors (1995) are: Japan with $66 million, the European Development Fund with $60 million, the International Monetary Fund with $51 million, the United Kingdom with $46 million and Germany with $42 million. While USAID is not a lead donor in terms of overall levels, it has been a key donor in specific sectors including low-income housing, family planning and natural resource management. At the macro level, donor coordination occurs through the World Bank Consultative Group mechanism, however, a Consultative Group meeting has not been held since early 1995. Additional working-level bodies exist to ensure sectoral coordination in each strategic objective area. USAID will contribute to enhanced donor coordination in FY 1999 by working with the United Nations Development Program to improve the frequency of contact and quality of communication within the donor community.
FY 1999 Program
USAID is moving to phase out of several elements of its development assistance program as activities in low-income housing, private enterprise development and family planning will all end in FY 2000. During this period of final implementation the USAID strategy focusses on consolidating gains in these areas while maximizing sustainability. Assistance in the natural resources management sector will focus on replicating successes in wildlife management and extending into other natural resource areas such as fisheries, forestry, and mining. Economic growth programs will expand private sector participation in low-income housing while improving access to private sector opportunities for micro, small and medium enterprises. USAID will have ended its funding to Zimbabwean family planning programs focusing on increased private sector and GOZ participation. Efforts to increase the use of HIV/AIDS prevention methods will be reinforced by increasing private sector involvement--working with non-governmental organizations and the private sector in voluntary testing and counseling of individuals with HIV.
USAID will initiate a new activity that will focus on increasing Zimbabweans' participation in economic and political processes. Zimbabweans are increasingly disappointed with their lack of economic and political empowerment. The Zimbabwe American Development Foundation, one element of the new activity, is a private sector instrument that would work with local non-governmental development partners and remain after USAID departs Zimbabwe.
ZIMBABWE
FY 1999 PROGRAM SUMMARY
(in thousands of dollars)
USAID
Strategic and Special
ObjectivesEconomic
Growth &
Agriculture
Population
& Health
Environment
DemocracyHuman
Capacity
Development
Humanitarian
Assistance
TOTALS
S .O. 3. Reduced Fertility and Increased Use of HIV/AIDS Prevention Measures
- CSD
---
1.550
---
---
---
---
1,550
SP.O 1. Increased Opportunities for Participation in the Private Sector and Political Processes
- DA
---
---
---
500
---
---
500
Totals
- CSD
- DA
---
---
1,550
---
---
---
---
500
---
---
---
---
1,550
500
USAID Mission Director, Rose Marie Depp
ACTIVITY DATA SHEET
PROGRAM: ZIMBABWE
TITLE AND NUMBER: Reduced Fertility and Increased Use of HIV/AIDS Prevention Measures,
613-SO03
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1999: $1,550,000 CSD
INITIAL OBLIGATION: FY 1995; COMPLETION DATE: FY 2002
Purpose: To sustain reduced levels of fertility so that the population can gain from the benefits resulting from economic growth, and to help reduce the spread of HIV/AIDS in Zimbabwe.
USAID Role and Achievements to Date: As the lead donor to Zimbabwe's family planning program, USAID has contributed to its significant impact. Between 1984 and 1994, the total fertility rate--the average number of children a Zimbabwean woman will have in her lifetime--declined by a third, from 6.5 to 4.3, and the contraceptive prevalence rate increased by 55%, from 27% to 42% of married women. USAID's involvement in HIV/AIDS prevention focuses on changing high risk behavior and on increasing local non-governmental organizations' capacity to implement HIV/AID prevention and control programs on a sustainable basis. Knowledge of HIV and how it is transmitted is near universal in Zimbabwe. However misconceptions about the disease persist, and positive behavior change is not occurring as expected and further work on this important topic is necessary.
Description: The key result anticipated from USAID assistance is increased use of complementary delivery systems for family planning and HIV/AIDS services. The government health care system is completely overburdened, and USAID will assist the Government of Zimbabwe (GOZ), private sector players and non-governmental organizations (NGOs) to find more optimal solutions for providing health care to Zimbabweans on a sustainable basis. USAID support for family planning will focus on improved quality of family planning services through both government and private sector providers; ensuring the adequate supply and proper management of contraceptive logistics; and improved policies such as reduced tariffs and taxes on family planning products, and increased provision of services by nurses.
The HIV/AIDS epidemic is a more recent phenomenon which poses daunting challenges. Zimbabwe suffers from one of the highest infection rates in the world, with an estimated one in five adult Zimbabweans HIV positive. Important and promising activities aimed at reducing high risk behavior are underway with a focus on condom social marketing and the strengthening of Zimbabwean NGOs working in AIDS prevention. In addition, an activity aimed at increasing positive behavior change and sexual responsibility through voluntary testing and counseling of HIV/AIDS will enter the design phase during FY 1998. A demographic and health survey in 1999 will measure progress in both the areas of family planning and HIV/AIDS prevention.
Host Country and Other Donors: USAID is the lead donor in family planning. It works with several other donors including the World Bank Family Health Project II and the United Nations Fund for Population. The Zimbabwe National Family Planning Council coordinates support for this sector. Historically, the Government of Zimbabwe has relied on USAID for contraceptive commodities, however, in view of the impending end of USAID assistance in FY 2000, the GOZ will purchase $1.4 million worth of contraceptives in FY 1998. Numerous donors, including but not limited to the World Bank, the United Nations the Netherlands, and the British Government provide support to HIV/AIDS activities in Zimbabwe. The National AIDS Coordination Program, an organ of the Ministry of Health, coordinates the donor activities. USAID collaborates closely with the other donors, and in particular with the United Kingdom which co-finances the condom social marketing activity.
Beneficiaries: All Zimbabweans seeking to 1) plan the growth of their families, and 2) avoid contracting sexually transmitted diseases, including HIV/AIDS.
Principal Contractors, Grantees, or Agencies: Key U.S. agencies involved in implementation of the program include Family Health International, the Futures Group, John Snow Inc., Macro International, PACT and Population Services International. Zimbabwean and international implementing partners include the Zimbabwe National Family Planning Council, Ministry of Health, the National AIDS Coordination Program, and the United Nations Children's Fund.
Major Results Indicators: Baseline Target Reduction in total fertility rate 4.3 (1994) 4.0 (1999) Total number of condoms 33 million (1994) 72 million (1999) sold or distributed to target population Percent of target group 47% men (1996) 59% men (2000) reporting condom use in last 49% women (1996) 62%women (2000) sexual intercourse Percent of surveyed 41% men (1996) 52% men (2000) population reporting appropriate 47% women (1996) 58%women (2000) perception of risk of HIV infection
ACTIVITY DATA SHEET
PROGRAM: ZIMBABWE
TITLE AND NUMBER: Increased Opportunities for Participation in the Private Sector and Political Processes, 613-SPO1
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1999: $500,000 DA
INITIAL OBLIGATION: FY 1998 COMPLETION DATE: 2003
Purpose: To increase participation of Zimbabweans in private sector and political processes.
USAID Role and Achievements to Date: Weak democratic systems and a lack of transparent governance are long-term concerns that threaten the stability of Zimbabwe and may have adverse regional impacts. Promoting democracy and good governance and economic growth are important U.S. foreign policy objectives. USAID assistance is intended to strengthen support for these objectives. In 1997, USAID completed a Democracy and Governance Assessment and has begun developing a strategy that focuses on increasing opportunities for greater economic and political participation in Zimbabwe. This framework will define objectives, clarify anticipated results, and the resources required for the period 1998-2003. Full program implementation will begin by FY 1999; start-up activities will complement ongoing programs that assist with parliamentary training and reform.
Description: USAID is incorporating democracy and governance into its program in Zimbabwe in recognition of the serious nature of the constraints posed by limited participation and empowerment of the Zimbabwean populace. Issues including presidential transition, the role and size of the ruling party, and the relationship between local government structures and traditional leaders are still relevant nearly 18 years after independence. Anticipated areas of initial investment under this new objective include: 1) working with civil society organizations to increase the amount and quality of information available to Zimbabweans on economic and political participation issues, such as civic education, legal assistance, and legal rights, 2) increasing the variety of mechanisms for economic and political information dissemination such as independent media, more opportunities to interact with elected officials at the local and national level, and an increase in town meetings, and 3) assisting organizations which enhance opportunities for economic and political participation, including increased respect for human rights.
A Zimbabwe American Development Fund (ZADF) is being explored as a mechanism to promote broadened participation in the economy and democratic pluralism. If this concept proves feasible, it is expected that the ZADF would establish a long-term development partnership between Zimbabwe and the United States that engenders shared economic and political principles. It would have distinctive American ties through its founding and funding by the U.S. Government, U.S. businesses, private voluntary organizations and other non-governmental organizations which will draw on U.S. values, technology and collaboration.
As a first step toward the establishment of a foundation, USAID anticipates engaging a U.S. Private Voluntary Organization (PVO) to manage the start-up tasks of the ZADF and provide it the experience, training and monitoring necessary for it to be deemed capable of managing the annual income from a U.S-based endowment. In FY 1998, the PVO will receive funds for technical assistance and start-up expenses for the ZADF as well as seed grants over an initial 2-3 year period. USAID would provide another $10 million over a period between 1999-2002 for an endowment, expected to continue in perpetuity. Together, the ZADF and other direct mission activities in democracy and governance are expected to result in greater citizen participation in policy and regulatory issues which will lead to greater pluralism in Zimbabwean society.
Host Country and Other Donors: Donors including Canada, Denmark, the European Union, the Netherlands, Norway, Sweden, the United Kingdom and the United Nations are active in democracy and
governance programs in Zimbabwe. Many donors provide substantial assistance to improve governance at the local district level. In addition, several donors including the United Kingdom, Denmark and Canada support programs to improve the administration of justice. The U.S. and the United Kingdom have taken the lead in establishing regular donor meetings to discuss on-going programs and increased collaboration in this sector. USAID recently completed the first ever study documenting donor assistance to Zimbabwe in the democracy area. To date, USAID has provided only limited assistance for democracy initiatives in Zimbabwe; however with the planned level of assistance through a foundation, USAID would become a significant donor in the area of democracy and governance.
Beneficiaries: Key beneficiary groups will include a broad range of non-governmental institutions, including civil society organizations, women's groups, human rights organizations, economic and business associations, and development groups. Non-foundation support will be provided to support parliamentary reform and judges to enhance their capability in speedy and fair trial.
Principal Contractors, Grantees or Agencies: The implementing organization for the ZADF will be determined through a competitive process. Grantees and contractors for other activities will be determined based on the requirements of specific interventions.
Major Results Indicators: Baseline data and specific results will be part of the design phase to be undertaken in FY 1998 and could include (illustratively):
More information on how to participate in economic and political processes available to Zimbabweans.
More mechanisms for communication with citizenry established.
More conducive environment for citizenry participation.
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