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).
SERBIA AND MONTENEGRO (FEDERAL REPUBLIC OF YUGOSLAVIA)
FY 1997 FY 1998 FY 1999 Actuals Estimate Request Support for Eastern Europe Democracy............... $3,500,000 $12,000,000 $15,000,000 Introduction
The current Serbia and Montenegro (Federal Republic of Yugoslavia) is an integral, but reluctant, partner to the peace process in the former Yugoslavia, and its cooperation and good faith commitment to the terms and principles of the Dayton Accords are essential to successful implementation. The rationale for U.S. engagement in Serbia and Montenegro is in its importance to regional stability and the realistic potential for exerting a strong positive influence in favor of systemic change. The direction Serbia and Montenegro takes over the next several years, particularly toward establishing a more open democratic society, will be a major determinant of the nature of politics and economic development in the region for many years to come. Prospects for long-term peace and stability in the region would be greatly enhanced by the successful establishment of an open, democratic society with a high standard of respect for the rule of law and protection of human and civil rights in Serbia and Montenegro.
Development Challenge.
The challenge in Serbia and Montenegro is different from other countries in Europe. The programs are regionally differentiated to address targeted activities in Serbia proper, Kosovo and Montenegro. The aim is to create public awareness and eventually public demand for reform. Activities will strengthen civil society by linking reform-minded individuals and institutions in order to cooperate and encourage government to move from debate to action. Under this scenario, accelerated momentum toward political and economic change is the targeted result. The program operates within the framework of the Lautenberg amendment. It is anticipated that by targeted assistance, the government of Serbia and Montenegro will be encouraged to commit to the terms and principles of the Dayton Accords.
In direct support of Dayton, the USAID democratic reform agenda includes: support for the growth of a viable and independent media, to allow open access and information to all citizens and candidates; political party building to encourage the development of alternative parties and effective political institutions; national and local election administration support to assist in the conduct of free and fair elections; voter and civic education to encourage citizen participation in the democratic process; and local NGO support to build a viable civil society.
Other Donors
At this time, other bilateral players in the region are only involved marginally in assistance to the Serbia and Montenegro. The humanitarian aid multilateral organizations, principally war related--United Nations High Commission for Refugees (UNHCR), World Health Organization (WHO), and UNICEF--plus the Soros Foundation, have the longest commitment but are reducing their levels of support. Similarly cautious is the European Union (EU). As a result of this, USAID, even in its short period of on-the-ground presence has become a high visibility agency within the donor community and to the public at large. International donor coordination is excellent with meetings held about every six weeks.
The most significant element of the "outer wall" sanctions prohibits not only U.S. bilateral but also International Financial Institutions assistance to the current government in Serbia and Montenegro. These sanctions have effectively blocked the large transfers of capital from the International Bank for Reconstruction and Development (IBRD) and the International Monetary Fund (IMF) with policy conditionality required to re-start the Serbian economy. Consequently, neither the World Bank nor the
IMF have had formal contacts with Serbia for more than five years, though each does track the political and economic movements.
FY 1999 Program
The U.S. assistance program for the Serbia and Montenegro is structured around achievement of two strategic objectives: increased, better-informed citizens' participation in political and economic decision-making; and special initiatives. The program will develop and strengthen public advocacy capacity of local non-governmental organizations (NGOs), women's groups and trade unions; support institutional development and improve interaction between political parties and constituents; and foster balanced reporting and access to information through independent media development. A new civil society development project will provide significant support for the indigenous non-governmental community. Continued support for the independent media will encompass print and electronic media. Political party building will be continued in preparation for the next round of elections.
USAID is also expecting several special initiatives, of which one may include social sector activities in Kosovo, which will be complementary with the Office of Foreign Disaster Assistance (OFDA) activities. A second initiative is planned for Montenegro, focussing on targeted assistance to expand economic freedom, providing a waiver to the Lautenberg Amendment is approved. These targets of opportunities are designed to respond quickly to the changing social and economic environment in Kosovo and Montenegro. Finally, participant training using USAID and United States Information Agency (USIA) training programs will support and enhance the democracy objective in Serbia and Montenegro.
SERBIA AND MONTENEGRO (FEDERAL REPUBLIC OF YUGOSLAVIA)
FY 1999 PROGRAM SUMMARY*
(in thousands of dollars)
Strategic ObjectivesEconomic Restructuring Democratic
TransitionSocial Stabilization Cross-cutting / Special Initiatives Total Privatization -- -- -- -- -- Fiscal Reform -- -- -- -- -- Private Enterprise -- -- -- -- -- Financial Reform -- -- -- -- -- Energy -- -- -- -- -- Environmental Management -- -- -- -- -- Citizens' Participation -- 15,000 -- -- 15,000 Legal Systems -- -- -- -- -- Local Government -- -- -- -- -- Crises -- -- -- -- -- Social Benefits -- -- -- -- -- Environmental Health -- -- -- -- -- Cross-cutting / Special Initiatives -- -- -- -- -- TOTAL -- 15,000 -- -- 15,000
*Support for East European Democracy (SEED) Act funds
USAID Representative: Keith Sherper
ACTIVITY DATA SHEET
PROGRAM: Serbia and Montenegro (Federal Republic of Yugoslavia)
TITLE: Citizen's Participation, 180-S002.1
STATUS Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1999: $15,000,000 SEED
INITIAL OBLIGATION: FY 1997; ESTIMATED COMPLETION DATE: 2002
Purpose: Increased, better-informed citizens' participation in political and economic decision-making.
USAID Role and Achievements to Date: Civic society is weak and fragmented and therefore, solid democratic pluralism, independent media, and nascent private voluntary organizations need to be developed and strengthened for democracy to survive, and for a market economy to flourish. While the government of Serbia and Montenegro is reluctant, at best, to assist, USAID funded activities focus on key democratic transition issues. Although USAID-funded activities are just beginning, independent media, political parties and indigenous organizations are all beginning to strengthen as a result. In addition a USAID-funded international economic conference held in Belgrade clearly illustrated that a core of reformers exists within the government, as well as many in the private sector.
Description: USAID contractors and grantees are currently working with independent media, political parties and indigenous non-government organizations to foster the growth of civil society, grassroots reform, a strong pluralistic democracy and enduring democratic institutions. These activities are expected to expand in FY 1998 and FY 1999.
Host Country and Other Donors: Although other donors participation is minimal at the present time, they are coordinating efforts with USAID. The United Nations Development Program, the European Union, Soros Foundation and USIA are the main international groups working in Serbia and Montenegro currently.
Beneficiaries: Political parties, indigenous NGOs, independent media, and more generally, the people of Serbia and Montenegro at the community level.
Principal Contractors, Grantees or Agencies: USAID implements activities through U.S. based NGOs.
Major Results Indicators: This strategic objective is still being designed. Baseline and targets will be set in mid-FY 1998 and reported on in the next Congressional Presentation. USAID expects to track the following indicators:
Citizen involvement in political parties
Rate of voter turn out
Number of NGOs and other partnerships in operation
Public opinion regarding government actions
Number of citizens who listen to, watch, read and have access to independent media
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