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).
ROMANIA
FY 1997 FY 1998 FY 1999 Actuals Estimate Request Support for East European Democracy $32,900,000 $35,000,000 $36,000,000
Introduction
The U.S. assistance program to Romania supports U.S. economic, democracy, humanitarian, and national security interests. The United States has made its largest financial investment in the area of economic growth through efforts in privatization, private enterprise development, a restructured and more efficient energy sector, and a more sound financial system. Assistance has also facilitated other key transition goals by supporting decentralization, strengthening democratic institutions and non-governmental organizations (NGOs), increasing the delivery of child welfare and women's reproductive health services, and promoting the adoption of market-oriented environmental policies.
The Development Challenge
1997 was a key year in Romania's transition. The Government of Romania (GOR) took radical steps to implement needed economic reforms, to decentralize decision making to the local level, and to make social issues a higher priority. U.S. assistance has refocused to play a key role in supporting the government's efforts in each of these areas over the course of 1998.
While positive results from the government's economic reform effort are beginning to surface, Romania continues to face a number of challenges. Inflation is expected drop in 1998, from the 131% forecast as the year-end rate for 1997 to 30% by the end of 1998. Private investment and the GOR's efforts to cut wasteful output and loss-making enterprises may aid Romania's ability to rebound from a 2% drop in real GDP during 1997 and meet projected levels of 2-4% growth in 1998.
Privatization for 1997 is 53% above the monthly pace for 1996, but only 70% of the pace required to achieve the 1997-98 targets set by the World Bank and USAID. Foreign investment proceeds reached $3.4 billion in December 1997, reflecting an inflow of more than $1.5 billion since the new government took office in November of 1996. However, investor concerns about bureaucratic red tape and the lack of transparency continue. In addition, the banking system remains weak and privatization of banks will be delayed until 1998. Unemployment is expected to rise from 6.9% to more than 10% in 1998, and real wages have dropped significantly. The GOR's 1997 budget increased social welfare programs by about 25%.
With U.S. assistance, a Privatization Operations Center was established to conduct public auctions, special electronic stock market (RASDAQ) auctions of State Ownership Fund (SOF) shares to the public during off-trading hours, and large company sales through public offerings and sealed bids. To mitigate the economic and social effects of labor displacement as state owned enterprises (SOEs) are closed or sold, the U.S. Department of Labor is working to establish labor redeployment pilot programs in communities to provide counseling, small business incubators, and other labor/management interventions. Technical assistance to the SOF will likely continue through FY 1999, in order to help the GOR privatize approximately 3,600 firms. During 1998, USAID will develop a new $10 million Agribusiness Development Project. This reflects Romania's strong comparative advantage in agriculture. The Capital Markets Program has created a fluid share trading market for a wide variety of firms and investors, linked to the final stage of the Romanian Mass Privatization Program (MPP), during which tradeable company shares are registered to individuals. USAID will strengthen the basic banking infrastructure to build strong, competitive private financial markets. Other efforts focus on policy and regulatory assistance and direct support for business development through U.S. private voluntary organizations (PVOs). Contingent upon the government's final approval of its restructuring
plan, USAID will continue to assist the restructuring of the power sector, promotion of private participation, and the initiation and implementation of regulatory functions.
The GOR has embarked on a process of political and economic liberalization that is intended to expand participation within the framework of democratic institutions and the rule of law. USAID's support to Romania's democratic transition is focused on the improved effectiveness of the executive and legislative branches of the central government and increasing citizen participation in political and economic decision-making, primarily at the local level through non-governmental organizations (NGOs) and local governments. Two of the three basic elements of a municipal finance system, a Law on Local Taxes and Fees (adopted) and a Law on Local Public Finance (pending), were drafted with USAID assistance. Local government programs will receive increased emphasis through 1999.
Social sector restructuring programs are shifting the programmatic emphasis from direct service delivery to activities which address the systemic causes of social problems. U.S. assistance continues to target the special health and social circumstances facing children and women in Romania and continues to work for a health reform which will shift resources from expensive tertiary care to primary care. Family planning activities have facilitated an increase from 14% to 23% in the number of young people using modern methods of contraception. USAID will seek to build on this success, though activities in this sector will focus primarily on child welfare.
Other Donors
SEED resources leverage substantial financial contributions from other donors. USAID-funded technical assistance has paved the way for: two energy projects (each for roughly $300 million--co-financed by the World Bank, the European Bank for Reconstruction and Development (EBRD), and others); the $250 million World Bank privatization and financial reform project; the $100 million World Bank private agriculture effort; the $55 million World Bank employment services program; the World Bank's $100 million program to address industrial pollution and environmental legislation, the $150 million health rehabilitation activity, the $65 million EBRD municipal utilities project, and preparatory work for a proposed second tranche of loans for $140 million. USAID's Democracy Network activity will provide institution-building to local NGOs in support of the World Bank's $20 million Social Development Fund. The U.S. ranks behind the European Union (EU) and Germany among donors to Romania.
FY 1999 Program
USAID's priority in Romania is to help the GOR formulate and implement a reform package which puts Romania firmly on the road to economic and democratic reform and responds to International Monetary Fund (IMF) and World Bank conditions. FY 1999 funding is requested for the following strategic objectives: increased transfer of state-owned assets to the private sector; accelerated development and growth of private enterprises; a more competitive and market-responsive private financial sector; a more economically sustainable and environmentally sound energy sector; improved environmental management capacity to support sustainable economic growth; increased, better-informed citizens' participation in political and economic decision-making ; more effective, responsible, and accountable local government; and more effective and sustainable health services and benefits.
To accomplish this, USAID will continue technical assistance to advance a comprehensive and practical economic reform program, including an emphasis on private independent capital markets and legal reform, particularly in bankruptcy. Democracy-building priorities include decentralization of governing authority and fiscal control to the local level, and fostering the development of NGOs. USAID remains committed to pursuing key social service restructuring opportunities to address broader systemic problems resulting from the transition. Under cross-cutting and special initiatives, FY 1999 funds are requested for gender-related activities, training, and U.S. Department of Treasury activities.
ROMANIA
FY 1999 PROGRAM SUMMARY*
(in thousands of dollars)
Strategic ObjectivesEconomic Restructuring Democratic
TransitionSocial Stabilization Cross-cutting / Special Initiatives Total Privatization 1,000 -- -- -- 1,000 Fiscal Reform -- -- -- -- -- Private Enterprise 11,500 -- -- -- 11,500 Financial Reform 4,500 -- -- -- 4,500 Energy 3,000 -- -- -- 3,000 Environmental Management 2,000 -- -- -- 2,000 Citizens' Participation -- 2,500 -- -- 2,500 Legal Systems -- -- -- -- -- Local Government -- 3,000 -- -- 3,000 Crises -- -- -- -- -- Social Benefits -- -- 4,500 -- 4,500 Environmental Health -- -- -- -- -- Cross-cutting / Special Initiatives -- -- -- 4,000 4,000 TOTAL 22,000 5,500 4,500 4,000 36,000
*Support for East European Democracy (SEED) Act funds
USAID Representative: Peter Lapera
ACTIVITY DATA SHEET
PROGRAM: Romania
TITLE: Privatization, 110-SOO1.1
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1999 : $1,000,000
INITIAL OBLIGATION: FY 1993 ; ESTIMATED COMPLETION DATE: FY 1999
Purpose: Increased transfer of state-owned assets to the private sector.
USAID Role and Achievements to Date: USAID supported Romania's mass privatization program through the establishment of a registry for the recording of share ownership and through the development of the RASDAQ stock exchange, through which shares of all privatized companies are listed and can be traded. Through creation of a market through which privatized companies can be traded, USAID has provided the catalytic agent missing in other privatization efforts--the introduction of market discipline and transparency. In addition, the RASDAQ is being used to sell the State's shares in 600 enterprises. Assistance is also provided for the sale of approximately 1000 small and medium State enterprises through open-outcry auctions and public tenders, used for companies in which the state owns over 50%.
Description: USAID supports privatization in three ways. First, assistance is accelerating privatization through establishing and implementing more efficient auction processes, including the use of the RASDAQ securities exchanges which was established with USAID support. USAID provides: a)advisory assistance in drafting of laws and norms, developing new auction procedures (open outcry)and developing valuation procedures, b) technical assistance to prepare the RASDAQ for electronic auctions; and c)establishment of the Privatization Operations Center (POC) which provides back-office support to the SOF and day-to-day advisory assistance to the SOF and provides public education/awareness support, including a dedicated website.
Second, it provides assistance in the areas of com petition and bankruptcy law and enforcement. We are assisting the GOR create the legal and regulatory framework for the capital markets and will continue to assist with the drafting and review of most major economic laws, e.g., securities, foreign investment, competition, bankruptcy, environmental protection and banking supervision.
Third, USAID provides labor market support which includes: (i) transitional income support for displaced workers (severance pay, unemployment benefits; (ii) rapid intervention and planning assistance to enterprises (to help them engage in the labor-shedding process; (iii) labor redeployment assistance given to local public and private service providers to facilitate employment and relocation services, retraining, public service employment, small business assistance; and, (iv) local economic development planning.
Host Country and Other Donors: USAID work in these areas is closely coordinated with the EU and The World Bank. In privatization, the USAID, World Bank and the EU each support one 'channel' of privatization. In labor redeployment, USAID technical assistance directly supports the World Bank's funding.
Beneficiaries: The beneficiaries are the Romanian people as a whole, as privatization will bring about the discipline, access to capital and foreign investment necessary to Romanian companies achieving competitive parity.
Principal Contractors, Grantees, or Agencies: Carana Corporation supports the privatization program, working in cooperation with the State Ownership Fund. Carana works closely with the Intrados Group which is working with RASDAQ to support privatization auctions. Carana Corporation, in conjunction with The Recovery Group, supports the bankruptcy program. The Department of Labor directs the labor redeployment activities, working closely with the Ministry of Labor.
Major Results Indicators Baseline Target Percent State Assets Retained by SOF 100% (1993) 20% (2001) Number of Companies Privatized 1,350 (1997) 2,700 (1998)
ACTIVITY DATA SHEET PROGRAM: ROMANIA
TITLE: Private Enterprise, 180-S001.3
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1999: $11,500,000 SEED Act
INITIAL OBLIGATION: FY 1991; ESTIMATED COMPLETION DATE: FY 2002
Purpose: Accelerated development and growth of private enterprises.
USAID Role and Achievements to Date: USAID's role is to assist enterprises develop business management capability and the capacity to find new markets, import modern technology, manage resources more cost-effectively and generate new jobs. Several hundred small businesses and several thousand entrepreneurs, including women and rural citizens, have found new markets, products, financing and technology through USAID assisted programs. In fact, in 1996 alone, the sales from USAID-assisted firms increased by 30%, far above the target of 5% growth.
Description: In 1998 USAID programs will accelerate the leverage of its assistance to small business by improving the ability of small businesses to qualify for loans and repay them. USAID programs will assist state-owned enterprises in promising sectors rapidly achieve privatization and profitability which will also stimulate foreign investment. The Romanian-American Enterprise Fund has also evaluated prospective investment projects and began its lending program during 1995, with a total of $6 million through 1996 and $17 million projected in 1997.
Host Country and Other Donors: Ongoing efforts in this sector are coordinated with those of other donors including the United Nations Development Program (UNDP), IMF, World Bank and EU.
Beneficiaries: The direct beneficiaries of this assistance are the private entrepreneurs of small and medium sized businesses.
Principal Contractors, Grantees or Agencies: Washington State University, Citizens Democracy Corps, Volunteers in Overseas Cooperative Assistance (VOCA), Agricultural Cooperative Development International, Land O' Lakes, Aid to Artisans, Entrepreneurial Management and Executive Development (EMED), and Peace Corps. Romanian-American Enterprise Fund
Major Results Indicators: 1995 Baseline Target Increase in sales for USAID- Current level 5% annual growth assisted firms of firm sales Percent of annual GDP from 45% 75% in 2000 the private sector
ACTIVITY DATA SHEET PROGRAM: ROMANIA
TITLE: Financial Reform, 180-S001.4
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1999: $4,500,000 SEED Act
INITIAL OBLIGATION: FY 1993; ESTIMATED COMPLETION DATE: FY 2002
Purpose: A competitive, market-oriented private financial sector.
USAID Role and Achievements to Date: USAID undertook the development of: an electronic stock market (the RASDAQ) for the trading of newly issued MPP securities; a central securities depository for RASDAQ market; an independent shareholder registry; telecommunications linkages; broker-dealer training; self regulatory organizations for both broker-dealers and investment companies; creation of new investment companies; a securities analysts training program; and assistance to the Romanian securities commission. USAID assists the Government to improve its implementation of public finance laws. USAID-funded US Treasury assistance resulted in a draft privatization law for state banks. A USAID-funded program has assisted Romanian bankruptcy courts organize bankruptcy proceedings; US Federal Bankruptcy judges, bankruptcy attorneys and trustees volunteers assist. As a measure of success, the growth of the volume of equity trading per week in 1996 was close to 200%; well above the target of 50%.
Description: In the capital markets area, assistance is being provided to solidify growth of the RASDAQ electronic stock market and supporting institutions, promote regulatory implementation, and support the GOR's intent to use the securities exchanges for privatization.
USAID-funded advisors work with the National Bank of Romania to strengthen capacity to supervise and promote a safe and sound banking sector, through training bank examiners in on-site inspection policies and procedures, problem banks and prudential enforcement mechanisms. USAID continues to assist Romanian bankruptcy judges improve the administration of their courts as bankruptcy cases proceed under the new market-oriented law, primarily by adding the administrative, receivership and trustee functions which are missing in Romania, but required for legal bankruptcy in a market economy. US Treasury advisors have worked extensively with the National Bank of Romania, the Ministry of Finance and the Council for Coordination, Planning and Economic Reform to develop a market-driven government debt securities program to reduce the budget deficit; to improve the national budgeting process, and, to improve the administration of tax collection, auditing, servicing, etc.
Host Country and Other Donors: Ongoing efforts in this sector are being coordinated with the World Bank, EU, the British Know How fund and Canadian technical assistance teams.
Beneficiaries: The Romanian population at large will have access to a much improved financial system.
Principal Contractors, Grantees or Agencies: Barents, INTRADOS, Carana Corporation, Financial Markets International; and the U.S. Treasury.
Major Results Indicators: 1995 Baseline Target Percent of state-owned banks 0% 100% in year privatized 2000 Numbers of licensed viable 25 100 in year 2000 private commercial banks Percent increase in volume of equity $50,000 1996: 50%; 1997: 30%; trading per week (Buch. stock mkt 1998-2000: 20% ave. and RASDAQ) Number of well-functioning 3 70 in year 2000 Mutual Funds Number of registered Broker/ 40 250 in year 2000 Dealers operating on Stock and RASDAQPROGRAM: ROMANIA
ACTIVITY DATA SHEET
TITLE AND NUMBER: Energy, 180-S001.5
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1999: $3,000,000 SEED Act
INITIAL OBLIGATION: FY 1995; ESTIMATED COMPLETION DATE: FY 2002
Purpose : A more economically sustainable and environmentally sound energy sector
USAID Role and Achievements to Date : This component of USAID's assistance program has been developed in close collaboration with the World Bank and the EBRD, to leverage their combined $600M investment program to the sector. USAID's program has helped shape and advance the Banks' reform agendas and is contributing a substantial body of analysis and action planning to make reform a reality. USAID's support has been critical to the definition of problems in the three subsectors and to helping design institutional solutions and a workable legal and regulatory framework.
Description : USAID assistance to the Power Sector has been focused on developing a restructuring plan that entails competition, private participation, and compliance with EU requirements. The GOR is in the process of reviewing this plan. Future USAID assistance will help to implement the plan. Recommendations for restructuring of the downstream (refining) sector included a restructuring strategy and a critical investment report. As a result, two refineries are slated for liquidation and there are plans to end all subsidies to refineries. Further assistance is planned pending GOR commitment to restructuring. Technical assistance and equipment will continue to the National Agency for Mineral Resources to develop and implement tariff system, elaborate, expand, and implement oil and gas sector regulations, and establish a management information system. Under the Energy Efficiency project, training and technical assistance is being provided to capitalize two energy service companies (ESCOs) able to carry out tens of millions of dollars of energy efficiency projects using Performance Contracting.
Host Country and Other Donors: The GOR participates in these projects with personnel and in-kind contribution. The World Bank, European Bank for Reconstruction and Development (EBRD), and European Investment Bank (EIB) are providing assistance, in the form of restructuring loans to the petroleum and power subsectors. These loans are being granted with the view to implement restructuring and modernization of these subsectors and promote private investment.
Beneficiaries: The primary beneficiaries of this assistance are the commercial and household consumers, through the supply of more efficient and less costly energy resources.
PrincipaL Contractors, Grantees or Agencies: The primary contractor for the policy activities is Bechtel Corporation. Electrotek Concepts implements the energy efficiency activities .
Major Results Indicators: Baseline Target External private investment $150M $800M energy Market share of independent 2% 50% power producers Electricity and heat law enacted None Yes (1998-1999) Regulatory body established None Yes(1998-1999) Savings from energy 0 $ 4M efficiency projects
ACTIVITY DATA SHEET
PROGRAM: ROMANIA
TITLE: Environmental Management, 180-S001.6
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1999: $2,000,000 SEED Act
INITIAL OBLIGATION: FY 1991; ESTIMATED COMPLETION DATE FY 2002
Purpose: To increase public and private capacity to address critical environmental constraints to sustainable economic development and growth.
USAID Role and Achievements to Date: USAID programs provide assistance in drafting and implementing environmental legislation and regulations in support of sustainable economic restructuring and growth. USAID has supported GOR efforts to develop a sustainable legal and regulatory framework. It included developing the Environmental Framework Law, the Waters Law, and implementing regulations in support of the Environmental Law. As a direct result of USAID's work in the policy area, the concept of environmentally sustainable development is prominent in the new legislation. Our support was key in encouraging public participation in the debate over and the development of the Environmental Law.
Improved industrial operations and practices have been installed through replicable pilot projects:
An investment of $28,000 for installation of a new frequency converter at the Sidex Steel Mill was returned almost immediately with an estimated annual savings of $86,000 due to lower energy consumption. Additional savings in the coming years are expected due to reduced maintenance costs and emissions from the coke plant. Sidex intends to purchase at least 14 more similar frequency converters for similar applications.
In Zlatna, a demonstration project for reducing environmental risk to population was designed and implemented. The activity reduced the exposure of young children to lead; enhanced air quality monitoring and control system with local authorities; and improved occupational health and safety procedures at the plant. This pilot is being replicated in other cities.
USAID has carried out an institutional needs assessment of the entities responsible for the enforcement of the environmental laws and regulations. Based on the results, USAID will work with selected local entities providing training, TA, and limited equipment for compliance monitoring and enforcement. USAID will leverage other donor funding to equip local environmental organizations. USAID will also assist with the creation and strengthening of local environmental firms. The support will be designed to assist firms meet certification criteria and to develop model projects. USAID will select targeted polluting entities to provide TA and on-the-job training in complying with environmental regulations.
Through the Global Environmental Facility (GEF) Danube River basin Project, USAID will assist the GOR with its efforts to reduce emission of toxic compounds and pathogens to the Danube river and its tributaries. The GEF will also provide assistance to design and implement a transboundary alert monitoring system along the Danube river and its tributaries.
Host Country and Other Donors: The GOR participates in this projects with targeted cash contributions and with personnel and in-kind contributions.
The World Bank and EBRD provide assistance in the form of investment loans designed to improve locale water management system and to finance investment at polluting enterprises.
Beneficiaries: Local communities, targeted industries and the Ministry of Waters, Forests and Environmental Protection (MOWFEP)
Principal Contractors, Grantees and Agencies: Camp Dresser and McKee (EHP), Chemonics (EAPS),
World Environment Center (WEC), Harvard Institute for International Development (CE4P).
Major Results Indicators: Baseline Target Average blood lead levels in 30-45 mg/d 23-38 mg/d targeted areas in 1995 in 1998 Environmental laws, 2 in 1997 3 in 1998 and regulations developed Environmental needs None in 1996 Yes in 1998 assessment SO2 and particulate level in air (a). SO2 (1000 tons/year) 1,335 in 1996 1,274 in 1998 (b) Particulates (1000 tons/year) 772 in 1996 751 in 1998
ACTIVITY DATA SHEET
PROGRAM: ROMANIA
TITLE: Citizens' Participation, 180-S002.1
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1999: $2.500,000 SEED Act
INITIAL OBLIGATION: FY 1994; ESTIMATED COMPLETION DATE: FY 2002
Purpose: Increased, better informed citizens' participation in political and economic decision-making.
USAID Role and Achievements to Date: USAID concentrated its Democracy Network (DemNet) activities on the institutional strengthening of NGOs. Training and technical assistance were provided on proposal writing, advocacy and grassroots organizing, marketing and communication, administrative and financial management systems. Thirteen Romanian NGOs received subgrants through the DemNet program. Recipients developed 40 proposals, to be funded by other donors. Handbooks on financial management, communications and fund-raising were published and distributed to the NGO sector.
USAID continued to provide training and technical assistance to the local media, focusing on television stations and newspapers outside the capital. Training emphasized business management (including advertising, sales, and circulation) and basic journalism techniques and standards. USAID also provided training aimed at improving economic reporting.
USAID provided support to the development of Parliament through the Congressional Research Service (CRS) program. The major elements of the program included technical assistance to develop the parliament's research, analysis, and reference capacity, the provision of automated equipment and software, and the enlargement of the parliamentary library.
USAID provided assistance to the Offices of the President and the Prime Minister and to Ministries in public relations in connection with the reform process. In addition, USAID provided assistance to the School of Magistrates and sponsored legislative drafting seminars for Parliament and the Legislative Council.
Description: Support to address institutional development of NGOs: An important objective for the GOR is to strengthen the government's relationship to civil society, i.e. to the citizens, through national and local NGOs. The vast majority of NGOs remain poorly organized and strapped for financing. Through continued training, technical assistance and subgrants, local NGOs are helped to become self-sustaining and capable of: influencing the formulation and implementation of public policy; serving as a forum for public policy debate and advocacy; mobilizing private resources; forming partnerships and alliances with appropriate public and/or private organizations; raising funds to further the purpose of the NGOs and secure their financial and organizational sustainability.
USAID is also providing assistance to develop an effective capacity of civil society to address community needs and to leverage financial support from the World Bank's Social Development Fund and other donors.
Building on the accomplishments of its CRS activity, USAID has developed a new program to strengthen the Romanian Parliament. The program focuses on improving the work of the committees and parliamentary groups, and shortening the time needed between drafting, reviewing and adoption of legislation.
USAID will provide assistance to help GOR organize the reform process in order to be responsive to civil society and consolidate the democratic process. Many of the highest government leaders, including the President and Prime Minister, come from civil society backgrounds, as former leaders of NGOs or labor organizations. Such leaders and their key advisors, never having served in government, need help in organization and management in order carry out proposed reforms. To this effect, USAID has started its assistance to the executive branch in organization/management, and other areas related
to effectively carry out reform programs. Senior and mid-level government officials are participating in U.S. and Central Europe study tours, to meet and confer with their American and Central European counterparts.
Host Country and Other Donors: EU, EBRD, the Soros Foundation, International Republican Institute (IRI), and some individual European countries have programs which address this objective. Mission coordinates with other donors to avoid duplication of efforts. The Government of Romania does not provide matching funds or in-kind support for NGO development programs. Public Administration activities are largely supported by Romanian local government personnel and institutions. NGO recipients also provide facilities and support with their own personnel. USAID is the only donor addressing institutional development of NGOs.
Beneficiaries: The main beneficiaries are the local communities in Romania. Citizen groups and local NGOs will improve their public advocacy methods and skills, as well as their institution-building capabilities. Ultimately, NGO staff members will gain credibility and government officials will become aware of the value of dialogue, team work, and participatory training as examples of democracy at work in the effort to address needs at the community level.
The Executive Offices, the Parliament and the Legislative Council are also beneficiaries of USAID assistance. By increasing their capacity, these key institutions will become more responsive to citizens' needs and will make the reform process more sustainable.
Principal Contractors, Grantees, or Agencies: Assistance to civil society is implemented through a cooperative agreement with World Learning Inc., in collaboration with the National Democratic Institute for International Affairs (NDI) Freedom House/National Forum Foundation (FH/NFF) and International Center for Not-for-profit Law (ICNL) are also involved in the program, as regional contractors. This objective is also supported by work performed under SO 2.3, local government.
The assistance to the Parliament and the Executive Offices is implemented through a contract with Development Alternatives, Inc. Additional assistance in the legislative area is provided through the American Bar Association's Central and East European Law Initiative (ABA/CEELI).
The assistance to the local media, as well as additional assistance to the Executive Offices in public relations, are provided through cooperative agreements with FH/NFF.
Major Results Indicators: Baseline Target Number of priority community concerns 0 (1997) 14 (1999) formally targeted through collaboration between public authorities, civil society and citizens Average capacity rating for 1.3 (1996) 3.2 (2000) USAID-assisted local NGOs/PVOs (4 point scale) Number of mechanisms established 3 (1997) 70 (2000) to enable the public to observe and contribute to an open legislative process and interact with representatives
ACTIVITY DATA SHEET PROGRAM: ROMANIA
TITLE: Local Government, 180-S002.3
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1999: $3,000,000 SEED Act
INITIAL OBLIGATION: FY 1995; ESTIMATED COMPLETION DATE: FY 2002
Purpose: More Effective, Responsive, and Accountable Local Governments.
USAID Role and Achievements to Date: USAID has provided assistance to several Romanian cities in housing and management through creation of condominium associations which no longer look to government for solutions, and in systems management for those same cities with emphasis on budget and financial management with the computerization necessary to support those systems. So far six cities have received technical assistance in budget and finance, the creation of modern program budgets, or computerization. As a result, two of these cities have been assisted in qualification for European Bank for Reconstruction and Development loans to improve their water and waste water systems. As a result of the condominium project, the new housing law passed in October 1996 will not only provide for the existence of condominium associations but will require their creation as replacements for tenant associations for privately owned apartments.
The Romania Public Administration Program began operation in October 1995. Its first public participation specialists began work in Romania at that time. As a result of their efforts, a citizen information center constructed, staffed and began operation in Slobozia, sponsored by the Lalomita County Council. In late 1996, a second information center was opened in Bucharest to service residents of the capital. The assistance was provided in cooperation with then Mayor of Bucharest Victor Ciorbea, who is now Prime Minister.
Description: By expanding the condominium activity, a local NGO capability to create and train condominium associations is being produced to cope with the national demand generated by the passage of the new condominium law. The result will be sustainable organizations nationwide capable of property management and maintenance and interface with local government agencies such as utility providers. The Romania Public Administration Program encourages decentralization of power to local authorities by increasing the capacity of local governments to perform their legal responsibilities. Among those responsibilities is economic development. The program focuses on economic assessments of each pilot city and the production of development plans for each. To combat the tendency to look to the central government for solutions, the public participation focus of the program encourages NGOs and individual citizens to participate in local authority decision-making and encourages local authorities to make effective use of citizens' input. The program initially targeted five pilot cities, and has been expanded to three more. The initial five were charged with transferring lessons learned to the second three and the eight will be the basis for spreading the benefits of the program throughout Romania.
The Public Administration Program focuses on economic development, public management, and public participation. It provides for short term advisors in each of these areas to concentrate activities on each of five pilot cities. The successful projects from each of these cities is being transferred to five additional Romanian cities. The public participation focus of the program encourages NGOs and individual citizens to participate in local government decision-making and to encourage local authorities to make effective use of citizen input. Among the few permitted activities of local government is local economic development. As citizens become more involved in government, they will become equally involved in economic decision-making as well.
The Municipal Finance and Credit Program focuses on decentralization of financial authority from the central government to local authorities. It has provided direct assistance to the Romanian Ministry of Finance in the drafting and adoption of a new Law on Local Taxes and Fees and in the drafting and parliamentary consideration of a new Law on Local Public Finance. The program will continue to
provide technical assistance to the government and to local authorities in the establishment and operation of a system of municipal credit. The ability to finance capital investment projects locally will enhance the ability of democratically elected local officials to provide services directly to their constituencies
Host Country and Other Donors: EU, European Bank for Reconstruction and Development (EBRD), International Monetary Fund (IMF), the Soros Foundation, National Democratic Institute (NDI), and some individual European countries, notably the United Kingdom and Denmark sponsor programs that directly or indirectly impact this objective. Public Administration Program pilot cities do not receive similar assistance from other donors. Individual recipient cities provide facilities and support with their own personnel.
Beneficiaries: Public Administration beneficiaries are the citizens of the targeted communities who will enjoy improved services and a have greater role in running their communities. Local authorities will also benefit from training and skill development. Ultimately the central government will benefit through being able to turn over authority for essentially local activities to local authorities.
Principal Contractors, Grantees or Agencies: This objective is supported by contracts with Chemonics Inc. for the Public Administration Program and with the Urban Institute for the Municipal Finance and Credit Programs.
Major Results Indicators: 1995 Baseline Target Revenue available from national TBD 15% increase by 1999 and local sources Number of formal mechanisms for 1 20 (1998) local governments to exchange ideas & involve citizens Percent of budgets of USAID- 0% 50% (2000) assisted local government units that are self-directed Laws establish regulatory and policy 0 2 (CY 1997) framework for decentralization 2 (CY 1998)
ACTIVITY DATA SHEET PROGRAM: ROMANIA
TITLE AND NUMBER: Social Benefits, 180-S003.2
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1999: $4,500,000 SEED Act
INITIAL OBLIGATION: FY 1990; ESTIMATED COMPLETION DATE: FY 2002
Purpose: Individuals Receive More Effective and Sustainable Health Services and Benefits
USAID Role and Achievements to Date: Modeling prevention, community-based services, primary health care, and sound management practices has been a major focus for the last five years.
Community-based approaches to care of Romania's institutionalized children have been successfully demonstrated in ten counties. Social workers and educators have been trained and are working in collaboration with staff in government institutions to demonstrate services to prevent abandonment; facilitate family reintegration, domestic adoption and foster care; or improve the social and living skills for children and young adults. Government officials are starting to implement similar programs in other counties. Romanian social workers and managers trained though these projects are now taking a leadership role in addressing child welfare issues. National and local groups have been created to advocate for children's rights and to promote improvements in child welfare legislation and administrative policies.
Family planning services have been developed and seven clinics have provided high quality services and education, which have served over 27,000 women to date. The Ministry of Health is now utilizing staff trained by the program to train government family planning providers. Family planning managers are being trained in contraceptive logistics management.
A primary health care curriculum has been developed and approved by the Ministry of Education. More than 3,700 students, residents and general practitioners will be trained each year in primary health care at the Medical school in Cluj. Concepts of primary health care will be introduced to schools of dentistry and pharmacy.
Six new-born protocols are in place in 12 maternities and will be introduced in another 40 hospitals impacting 80% of all mothers and newborns. Safe and effective hepatitis B vaccines are now being given to all newborns whom are born in maternities. Over 17,000 workers have been screened for cardiovascular risk; those at risk will receive prevention education and follow-up screening. An early childhood development program has resulted in the development of a national curriculum that has been implemented at 20 government sites.
Health management technical assistance and training has focused on introducing to health managers and providers in the health reform districts concepts of quality assurance, practice management, and methods for determining costs and performance. The program facilitated the creation of work groups of general practitioners and specialists in two reform districts that are now developing practice protocols and standards to improve quality of care and have implemented procedures to increase client access to care.
Description: The GOR has taken great strides to decentralize the decision-making and management of child welfare systems to the local, county level. USAID will help three targeted counties set up the administrative framework for a community-based, family-focused child welfare system and reduce over-dependence on institutionalization of children. It is expected that these three counties will serve as models for other judets which support the GOR's objective to replace institutions with community based models of caring for children. USAID has already begun a policy dialog with the Secretary of State for Child Protection to encourage specific steps to begin de-emphasizing institutions and to redirect resources to alternative services and to rely more on prevention, family reunification, foster care, adoption and day care centers to solve the problem of children in need of protection.
Through the United Nations Children's Fund (UNICEF), the program will continue to promote the sustainability of community based care for children by educating policy makers about the achievements of the projects.
Seven USAID funded family planning clinics will implement sustainability plans. To increase access to modern contraceptives, private pharmacists will be trained in contraceptive marketing and operations management. The program will continue activities to help create a policy environment supportive of women's and children's health.
A health management training partnership will build upon program activities initiated to date and on a World Bank management training program. The partnership will strengthen the knowledge and skills of the health management training staff and health managers in the field by assessing and improving the health management curriculum The program will facilitate linkages between health management training and practical application in the context of health reform implementation, through the development of case studies. The program will also facilitate information sharing and problem solving across reform districts and with other Central and East European countries implementing health reform.
Host Country and Other Donors: On going efforts related to women's and children's health are coordinated with those of other donors, including UNICEF, United Nations Fund for Population Activities (UNFPA), EU (Child Protection Program), and the World Bank. USAID is represented on the National Committee for the Protection of Children, which has developed a National Action Plan for child protection. The Ministry of Health is beginning to provide family planning services around the country and to provide training to about 400 general practitioners and obstetrical nurses.
Efforts related to health system reform are coordinated with the World Bank and EU. The World Bank has been the major donor in the health sector, providing loans for primary health care, family planning clinics, and a health management training institute. The Ministry of Health has initiated several laws related to health reform, has taken the initiative on developing a cost model, is implementing health reform in eight counties, and supports (through the World Bank loan) the Institute of Hygiene, Public Health and Health Services and Management (IIPSSC). The IIPSSC staff is responsible for health management training and technical assistance to the reform districts.
Beneficiaries: All Romanians will eventually be impacted by health reform efforts. Women of reproductive age and children account for 40% of the population in Romania, or about nine million people. The USAID-supported program reach about one-half of these beneficiaries.
Principal Contractors, Grantees, or Agencies: USAID implements activities through U.S. PVOs, local NGOs, U.S. firms and U.S. universities including: Feed the Children, Holt International Children's Services, Project Concern International and World Vision.
Major Results Indicators: Baseline Target US model of community and family-based 0 in 1998 3 (2002) services for child care established in Romanian counties Increased use of modern contraceptives 14% in 1993 35% (2000) Percent of private sector in contraceptive 5% in 1996 30% (2000) procurement
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