[lbo-talk] Georgia recieved most American funding after Israel?

Michael Pugliese debsian at pacbell.net
Mon Dec 8 08:54:57 PST 2003


Isn't Egypt #2?

http://www.google.com/search?q=foreign+aid+georgia http://www.foreignaidwatch.org/index.php?module=Encyclopedia&func=displayterm&id=83&vid=2

(GEORGIA) THE USAID PROGRAM: FY 2002 Estimate: $89.01 million FY 2003 Request: $87.0 million

Term: Egypt Related Terms: Egypt, USAID Related Links: http://www.usaid.gov/regions/ane/newpages/one_pagers/egypt01a.htm

The USAID Program USAID plans to spend $655 million in ESF in Egypt in FY 2002 and is requesting $615 million in ESF in FY 2003

Definition: Term: Georgia Related Terms: USAID Related Links: http://www.usaid.gov/country/ee/ge/ Definition: THE DEVELOPMENT CHALLENGE: The first years of Georgia's independence, gained in 1991, were marred by violence. With political stability beginning in 1995 came economic and democratic reforms. The transition to a democratic market economy has moved ahead at an uneven pace. The government is weak and suffers from the inability to invest resources into the development of its people and into social safety nets. It provides few services and its reach outside Tbilisi, the capital, is severely restricted, rendering it vulnerable to conflict and unrest. Collection of tax revenue, about 14% of GDP or only half of its potential, is the lowest in the region. Starting in 1995, Georgia made significant strides in introducing economic reforms in areas such as privatization, banking restructuring, judicial reform, health care, and regulatory policies. That progress, however, has been slowed in recent years because of weak institutional capacity and wavering commitment to implement reform policies and laws. Unbridled corruption has weakened the ability of the state to govern and has eroded public trust in government. A presidential commission to address corruption in government has had little or no impact. "Chaotic" corruption, little recourse in the judicial system, and security concerns deter foreign investors and investment in general. As government revenues decline, so have resources for social programs. Government spending for health, education, and welfare programs have dropped significantly, possibly the most dramatic of the transition economies. The energy sector remains in shambles, despite some foreign investment, reaching crisis proportion in the winter of 2001/2002. The very limited power supply, felt even more outside Tbilisi, hinders economic growth and brought hardship on most of the country's population who had to seek other sources of heat.

Approximately 53% of Georgians fall below the poverty line. Since the Russian financial crisis in 1998, Georgia's growth rate has been low, although GDP in 2001 is expected to have risen by 5% over last year. Growth in 2001 was largely fueled by an increase in agricultural production, a sector that was particularly hard-hit by the severe drought of the previous year.

Georgia's independence, sovereignty, and viability as a state are strategically important for promoting stability in the volatile Caucasus/Central Asia region bounded by Russia, Iran, and Turkey. Georgia's pivotal role in the Eurasian east-west energy and transport corridor is vital to the economic viability of that entire region and its integration with western political, economic, and security structures. The Georgian Government is supporting the U.S. Government in its fight against terrorism.

THE USAID PROGRAM: FY 2002 Estimate: $89.01 million FY 2003 Request: $87.0 million

USAID's program in Georgia seeks to foster more stable and prosperous market-oriented democracy that empowers citizens, is governed by the rule of law and promotes the basic welfare of the population. This strategy comprises six objectives: economic growth; energy independence; improved local governance; development of the rule of law; reduced human suffering; and a cross-cutting objective that supports participant training, public information and outreach, and NGO development. It also takes into account the recommendations of the Georgia Assistance Review, which underscores the importance of political commitment and donor conditionality and recommends further attention to anti-corruption, energy, agriculture and small and medium enterprise (SME) development issues. Through these objectives, USAID will continue making its programatic shift from working with Tbilisi-based institutions toward doing more to improve the lives of people in the regions, especially in those areas prone to conflict. New activities in FY 2002 include a public works program and a multi-year agribusiness program, both of which will be concentrated in the regions. FY 2002 funds also will be used to support continuing programs in business development, economic policy reform, energy sector revitalization, civil society development and local governance, rule of law, community development, health (including infectious diseases and HIV/AIDS), and humanitarian assistance. Approaches and activities are explained in the Program Data Sheets included below. FY 2003 marks the last year of USAID's current programming strategy for Georgia, though it is expected that many of the elements contained in the strategy will form part of a new strategy.

On-going Programs for Which No FY 2002 or FY 2003 Funding is Requested: USAID is not requesting new funds, but is continuing to expend funds already appropriated for the following:

Number: Title: Last Notified: Planned Completion: 114-0410 Special Initiatives FY 2001 CN FY 2002

Other Program Elements: A regional Caucasus farmer-to-farmer program funded through P.L. 480 proceeds operates in Georgia with approximately $400,000 a year in funding. The activity targets rural farmers and assists them by placing volunteer technical advisors at their farms on a short-term basis. The technical advisors develop and disseminate a set of best practices to their local clients and assist in strengthening local credit providers. Advisors have assisted farmers on issues of production, appropriate processing technology, and business management and planning. The program, in its second of four years, provided 56 short-term interventions out of a planned 112.

Donor coordination and collaboration has been exemplary in supporting the Georgian Government's Poverty Reduction and Economic Growth Program. OTHER DONORS: The five largest donors to Georgia are the World Bank, the International Monetary Fund (IMF), the United States, the European Bank for Reconstruction and Development (EBRD), and the European Union (EU). From FY 1992 through FY 2001, the United States appropriated $986 million through the FREEDOM Support Act for assistance to Georgia, placing it fourth of the twelve Eurasian countries in terms of U.S. assistance received. Overall, donor coordination could be improved; however, there are areas and issues for which coordination has been ample and successful. World Bank assistance includes structural adjustment credits, agricultural development loans, assistance to the health and power sectors, and technical assistance to strengthen the private sector. A new loan will go toward rehabilitating the major road arteries. USAID programs tie in closely with the policy objectives of the World Bank and IMF structural reform programs, especially in the areas of economic restructuring and energy sector reform. EBRD provides direct funding for the power and transportation sectors and in support of private sector development. The EU's technical assistance program has focused on the rehabilitation of transportation infrastructure, strengthening the private sector, and food security. USAID provides technical assistance to the Ministry of Finance and the Ministry of Revenue in support of the Government's new three-year program with the IMF under the IMF's poverty reduction and growth facility.

Program Data Sheets

114-0130 Accelerated Development and Growth of Private Enterprises 114-0150 A More Economically Sustainable and Environmentally Sound Energy Sector 114-0220 Legal Systems that Better Support Implementation of Democratic Processes and Market Reforms 114-0230 More Efficient and Responsive Local Governance 114-0310 Reduced Human Suffering in Targeted Communities 114- 0420 Cross-cutting Programs

-- Michael Pugliese American imperialism has been made plausible and attractive in part by the insistence that it is not imperialistic. Harold Innis, 1948 http://www.monthlyreview.org/sr2004.htm



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