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Asia and the Near East
The Development Challenge
The Asia and Near East (ANE) region is at the core of U.S. national interests and foreign policy priorities. It is also a region that faces major development challenges including instability, widespread corruption, oppressive governments, HIV/AIDS, and persistent environmental degradation. Strongholds of extremism and fundamentalism prey on poverty stricken people who see little hope in the future. Regional pockets harbor terrorists and radicals who are of significant risk to those countries' governments as well as to the United States.
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The lack of transparency in economic and legal institutions and severe restrictions on human freedoms impose a sense of fear and hopelessness, robbing the people of their dignity and freedoms. Oppressive regimes impose their will while sanctioning illicit activities that destroy opportunities for equitable economic growth and human well being. These challenges hinder prospects for the millions of people in the ANE region living in abject poverty and, in many cases, terror.
The USAID missions in the ANE region carry out foreign assistance programs that meet these challenges while supporting key U.S. foreign policy interests. These interests include the fight against terrorism, regional stability, combating the spread of HIV/AIDS, sustaining economic and social progress, halting environmental degradation, increasing trade opportunities, and promoting freedom and democracy.
The war in Iraq, the ongoing Israeli-Palestinian issue, and the spread of fundamentalism make the Middle East one of the highest U.S. national priorities. USAID participated in Operation Iraqi Freedom by moving into Iraq literally on the heels of coalition forces. In nine months, ANE has achieved remarkable successes in Iraq, in spite of gunfire and direct rocket attacks. Through close coordination with the Coalition Provisional Authority and other USG agencies, USAID is rebuilding Iraq's infrastructure, aiding in the establishment of local and national governance systems, rebuilding the education and health systems and revitalizing the national economy.
Many Muslim countries in the region are threatened by growing fundamentalism. Morocco, Lebanon, Egypt and others are threatened by radicals who would use terror to establish oppressive governments. ANE is addressing these issues with programs that support our national interests of stability, democracy and economic prosperity. In addition, debt relief via cash transfers has been provided to the governments in specific countries, such as Pakistan, to increase investments in social services and generate employment.
In the ANE region, millions of girls and women are not allowed to pursue an education. ANE believes that education for all, regardless of gender or religion, is a key element in achieving the democracy and economic prosperity goals that contribute to stability. To accomplish this, however, programs must overcome strong cultural and religious biases and traditions.
HIV/AIDS is a plague that destroys communities and bankrupts social systems. In Asia and the Near East, 7.1 million people are HIV positive, and each year 457,000 people die from HIV/AIDS-related illnesses, accounting for about one-sixth of deaths worldwide. This rate is expected to increase substantially as the epidemic spreads from high risk groups to the general population in countries like India, Indonesia, and Vietnam.
Rapid industrialization, unsustainable energy policies and growing populations are straining the region's natural resources and environmental systems. Urban air pollution levels are among the highest in the world. It is estimated that the nations of South East Asia lose five to six percent of their national incomes to pollution. The consumption and destruction of natural resources is occurring at an unsustainable rate that does not allow for replenishment.
Rapid social and economic changes occurring in the region fuel mobile migrant populations and the growth of the sex and drug trades. Trafficking is one of today's greatest human tragedies. The U.S. Government estimates that up to a million women and children are trafficked annually. Some victims are tricked into leaving their homes with the promise of a better life and a well-paid job. Others are kidnapped or sold by desperate family members faced with inescapable poverty. These conditions, coupled with soaring unemployment among youth entering the work force and continued migrations to urban centers, create fertile recruitment grounds for extremists and terrorists.
The programs ANE has implemented to meet these challenges support the joint State-USAID strategic plan to align US diplomacy efforts with development assistance. Throughout the region, USAID strives to "create a more secure, democratic, and prosperous world for the benefit of the American people and the international community."
Major Accomplishments and Results
ANE continually reviews programs and initiatives to ensure alignment with U.S. national interests. Events of the past year required an immediate shift of financial and personnel resources to initiate the reconstruction and humanitarian assistance needed for Iraq. To enable ANE to provide an immediate response, resources were diverted from other missions in the region, so people, finances and contractors were ready to move as soon as they were allowed into Iraq. To date, 2,241 schools have been rehabilitated, three million children under the age of five have been vaccinated, a peak generation of 4,518 MW of power was achieved on October 6, 2003, and over 19 million people in Iraq's 18 districts have engaged in local policy discourse.
At the same time, ANE recognizes the need to address issues in other Muslim countries to head off growing radicalism and anti-Americanism. Assistance programs in Morocco and Jordan have been restructured to better respond to USG priorities and joint State-USAID strategies, with emphasis on education, employment opportunities and economic growth. In addition, a new USAID mission was opened in Yemen to address U.S. foreign policy objectives in that country.
The reconstruction and development of Afghanistan continues at an accelerated pace. The most striking success to date has been the completion of the first layer of pavement on 390 kilometers of the Kabul-Kandahar highway, which links Afghanistan's two largest cities. This achievement will reduce transportation costs, improve economic growth prospects, and expand access to services for one-third of the country's population. In addition, USAID has constructed or rehabilitated 142 schools, daycare centers, and vocational schools; 72 health facilities; and over 6,100 water projects. USAID contributions in seeds and fertilizer also contributed to an 82% increase in crop production, which is expected to reduce by 4 million the number of Afghans dependent on food aid.
In Pakistan, a key ally in the Global War on Terror, U.S. foreign policy objectives place improvement of primary education first and foremost among ANE's development goals in Pakistan. Improved and more accessible education will be a tool to build the economy, counter teachings of despair and extremism, and promote moderation among the population. USAID assistance has increased public debate about national priorities and issues, including the need for women to participate more in the political process.
USAID's assistance program in Sri Lanka supports economic growth focused on enhancing that country's competitiveness through economic reform, strengthening key private sector industries, and skills development for the workforce. To capitalize on the peace efforts, USAID has strengthened the government's Peace Secretariat's abilities in management, outreach, and negotiation. Energized by a year of peace, Sri Lanka's trade-based economy grew by 4.4% in 2002 after the 1.4% contraction in 2001. The gross domestic product in 2003 is expected to increase by 5.5%.
Indonesia has successfully transitioned from a country in crisis to one that now has the foundation for economic, social and political reform. It has converted from one of the world's most centralized countries to one of the most decentralized, devolving authority and transferring administrative responsibilities to over two million civil servants, almost two-thirds of the government workforce, at the local level. Indonesia has placed its economy back on a growth path. Beginning with its FY 2004 funding, USAID will be the lead donor supporting transparent, inclusive and peaceful legislative, and first-ever direct presidential, elections in Indonesia. With these in place, USAID efforts now focus on helping establish a moderate, stable and productive Indonesia.
USAID has developed an exceptionally close working relationship with local and national figures in the long-running Muslim separatist conflict in Mindanao and the Sulu Archipelago of the Philippines. ANE's efforts to reintegrate former combatants of the Moro National Liberation Front (MNLF) into a peacetime economy have been so successful that the State Department has distributed a video presentation of the program to be used as a model for U.S. relations with the Islamic community worldwide. To date, USAID has assisted over 21,000 former combatants by providing materials and training, including 150 post-harvest facilities to MNLF communities. One hundred fifteen rural bank units now can provide loans to 107,000 microenterprises. An expanded education program in the Philippines is providing books, teacher training and computer literacy training to schools in conflict-affected communities to provide an alternative to the extremist teaching taking place in hundreds of private "madaris."
During the past year, ANE opened a new Regional Development Mission for Asia in Bangkok, Thailand to strengthen the management of programs in mainland Southeast Asia and to respond better to U.S. interests in the region. The new mission manages programs in Burma, China, Laos, Thailand, and Vietnam, as well as regional programs focused on HIV/AIDS, anti-trafficking, and environmental degradation that extend east into the Pacific and west into South Asia.
Program and Management Challenges
In the aftermath of September 11, 2001, security is the single gravest and most costly concern to the Asia and Near East Bureau. In responding to U.S. interests in the region, the professionals charged with carrying out assistance programs must be protected.
Iraq and Afghanistan top the list of countries with serious security concerns, but they are not alone. Jordan, Indonesia, Pakistan, Lebanon, Israel, and the Philippines, to name a few, also have security problems. Virtually every country in the ANE region bears the burden of increased risk and the attendant security procedures and costs that accompany those risks, all of which impacts the effectiveness of development programs. Meeting these costs and protecting our most important asset, the direct hire and contract staff that design and manage these important programs, requires a greater operating budget or expanded authority to use program funds to cover these costs.
In terms of program challenges, Iraq and Afghanistan will remain USAID's highest priorities in the ANE region. Rebuilding these countries will improve world stability. In Iraq, USAID efforts will allow a freed Iraqi people to govern their own country in an atmosphere of democratic freedom. In Afghanistan, ANE has made great strides with completion of the Kabul-Kandahar road and a new constitution. The Afghan people are now looking forward to a free and open election in the near future. ANE will continue to rebuild infrastructure while improving educational and economic opportunities that will allow democracy to flourish in both of these countries that have not enjoyed basic human rights for decades.
Education is the Bureau's next priority, as it recognizes that education is a key factor to stability, democracy and economic prosperity throughout the region. New or expanded initiatives will be implemented in Indonesia, Philippines, Morocco, Egypt, Pakistan, Afghanistan, Bangladesh, and Cambodia. USAID is working closely with the Department of State to administer education activities under the Middle East Partnership Initiative (MEPI), which focuses on improving education, especially for girls. In addition, ANE has allocated $5 million within the FY 2004 DA budget to support a new public-private partnership effort in education, specifically to expand investment in school-to-work training programs in Pakistan, Indonesia, Philippines, and Morocco.
Several countries in the ANE region are battling economically devastating epidemics of HIV/AIDS. Countries with lower prevalence are beginning to slow, or even turn around the rate of infection, because of the interventions being taken. Unfortunately, the epidemic continues to grow in some of the more densely populated countries. For example, India, with a prevalence of just less than one percent, has the second largest number of HIV positive people in the world. In Indonesia and Nepal, the epidemic is also showing signs of moving into the general population and will require intensive efforts to slow or stem its spread.
Finally, endemic corruption and weak governance throughout the region limit economic and social development, impede badly needed investment and rob societies of the resources necessary to provide for their people. Along with security, this is a common denominator spread across the region and must be an Agency priority.
Other Donors
The international donor community is very active throughout the Asia and Near East region. The World Bank, International Monetary Fund and various agencies of the United Nations are some of the predominant multi-lateral donors. The European Union, Japan, Germany, Britain, France, Sweden, Canada, Australia, Norway and Sweden are among the list of countries that donate development resources in the region. In addition, The Arab Fund, Islamic Development Bank and Saudi Arabia are major donors in the Middle East, while the Asian Development Bank operates throughout Asia. Coordination with these other development players is carried out by USAID representatives at the mission and regional levels to ensure complementarity and avoid duplication of programs.
FY 2005 Program
A summary of resources within the ANE region is shown below by sub-region and funding source (in $000).
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Sub-region | DA | CSH | ESF | P.L. 480 | Total |
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East Asia | 78,018 | 106,800 | 156,000 | 23,000 | 363,818 |
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South Asia | 241,211 | 146,400 | 562,000 | 90,849 | 1,040,460 |
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Middle East & N. Africa | 6,000 | 0 | 1,292,000 | 0 | 1,298,000 |
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Regional | 18,571 | 2,900 | 177,250 | 0 | 198,721 |
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Total* | $ 343,800 | $ 256,100 | $ 2,187,250 | $113, 849 | $ 2,900,999 |
The allocation of these resources by Agency pillar is shown below (in $000).
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Economic Growth, Agriculture and Trade | $ 2,140,820 |
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Global Health | $ 352,350 |
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Democracy, Conflict and Humanitarian Assistance | $ 293,980 |
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Total* | $ 2,787,150 |
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P.L. 480 | $ 113,849 |
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Grand Total | $ 2,900,999 |
*Note: The total amount does not include funding for Iraq.
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