Complete List of USAID 2001 Strategic Objectives with NOT MET
Self-Assessments

# I. Africa Bureau

## A. Country: Eritrea

## **SO Title:** Increased income of enterprises, primarily rural, with emphasis on exports {#so-title-increased-income-of-enterprises-primarily-rural-with-emphasis-on-exports .unnumbered}

**Discussion:** The purpose of this strategic objective is to improve
incomes and expand employment in rural Eritrea. At the enterprise level,
the main beneficiaries are businesspeople who receive technical
assistance from the Rural Enterprise Unit (REU) established under the
program and credit financing from the Commercial Bank of Eritrea. On one
level, consumers benefit from a wider available range of goods and
services, and in another, the nation benefits from the generation of
hard currency from exports.

Overall, this SO did not meet expectations in 2001.

At the national level, a delay in military demobilization slowed the
national economic recovery, on which a fuller response of the rural
enterprise program depends.

The technical support that had been planned to complement the emergency
credit program was not forthcoming, principally due to the difficulties
encountered by the REU in replacing staff called up for national
service. As a result, planned business development services (BDS) and
export promotion targets were not met. Similarly, delays in securing the
return of trained loan officers to the Commercial Bank of Eritrea
further postponed improvement in the Bank\'s financial services.

**Action Taken:** To address the implementation obstacle of staff
shortages, USAID organized meetings between senior government officials
and representatives of registered private voluntary organizations
(PVOs). The objective was to open a dialogue leading to a pronouncement
by the GSE upon which the PVOs could base a more permanent, in-country
presence. The number of international PVOs in Eritrea had increased to
34 following the last round of fighting and Eritrea\'s needs were
transitioning from disaster response to reconstruction and economic
recovery. The Government of the State of Eritrea (GSE) demurred from a
public policy statement. Nonetheless, the PVOs were sufficiently assured
of the government\'s appreciation and the need for assistance that 34
are still working in country. This acceptance by the GSE of a continuing
role for PVOs is encouraging and may represent an expeditious solution
to the human resource limitations that have plagued the implementation
of the rural enterprise program.

## B. Country: Eritrea

## **SO Title:** Increased capacity for accountable governance at local and national levels {#so-title-increased-capacity-for-accountable-governance-at-local-and-national-levels .unnumbered}

**Discussion:** This strategic objective aims to develop human potential
for economic and democratic development in Eritrea through training and
access to information through the Internet. At the request of the
Government, this objective was changed in 2001 from the original
strategic objective of increasing accountable governance at the national
and local levels.

Government staff shortages caused by delays in demobilization, coupled
with university management changes, seriously hampered this SO\'s
performance under the university linkage and civil service scholarship
programs. The pool of candidates was limited and the management changes
led to delays in the selection of new participants, preventing the
achievement of planned targets. The University of Asmara\'s Program
Coordination Unit (PCU), responsible for managing scholarship
initiatives, remained understaffed, with half its professionals still in
the armed forces. The PCU was disbanded in 2001 and responsibility for
university and civil service scholarship programs was transferred to the
UoA\'s Office of Strategic Planning. Simultaneously, the administration
of existing UoA participants was transferred from a U.S. contractor to
the University of North Carolina. These management changes led to delays
in the selection of new participants, preventing the achievement of
planned targets\--only five faculty members were sent on new scholarship
programs.

USAID did participate in the World Bank-led assessment mission to
develop the Demobilization and Reintegration Program (DRP) in
January-February 2001, the only bilateral donor to do so. Support was
also provided for a private sector training needs survey of over 300
businesses. The data was incorporated into the DRP\'s Labor Market
Analysis, which will be periodically updated throughout the duration of
the project, with USAID and other donor assistance. Also due to delays
in demobilization, USAID planned assistance to support the National DRP
Commission was postponed; it is scheduled for implementation in spring
2002.

Development of the Internet led SO3 efforts in 2001. Four secondary
cities were wired for connectivity, but a lack of telephone lines and
privileged access for the Telecommuniations Services of Eritrea (TSE)
ISP customers prevented full Internet operations in those locations,
thus that target was only partially met.

Based on a recently completed KPMG assessment, the Ministry of Transport
and Communications received formal GoE approval in December 2001 to
privatize the TSE, which currently holds a voice monopoly and is the
country\'s sole Internet operator. The World Bank and USAID are planning
to support this effort. The launch of cellular phone services under a
joint venture in 2002 will further open up the telecommunications
market. In addition, following consultations with USAID and the private
sector ISPs, the MOTC rescinded telephone line surtax for Internet use,
reducing costs and encouraging expanded access. These policy reforms
will address certain competition and performance issues identified in
several USAID-commissioned assessments and reports in 2001. Other
reforms are planned, including replacement of domestic long-distance
phone charges with a lower universal Internet charge.

## C. Country: Ghana

## **SO Title:** Increased effectiveness of the primary education system {#so-title-increased-effectiveness-of-the-primary-education-system .unnumbered}

**Discussion:** USAID continues to be a major force working for primary
education reform in Ghana simultaneously at the national policy and at
the community schools level and is expected to reach all of Ghana\'s 110
districts (it is currently in 65). The Quality Improvements in the
Primary Schools (QUIPS) program is designed to bring about meaningful,
sustainable reform of this sector. The education sector in general and
the primary education sub-sector in particular have been identified by
both Ghana and its development partners as both in critical need of
reform and essential to any real and sustained poverty reduction.

Overall, the SO exceeded 2 out of 3 of its intermediate result targets
and missed one.

In the area of learning achievement (an SO level result), 13.2% of
Quality Improvements in the Primary Schools (QUIPS) program students
passed the national criterion referenced Test in English compared to
9.6% nation-wide. While this performance falls short of the targeted
13.7%, the score was significantly higher than the average score in
other public schools. One explanation for the half percentage point
shortfall is that over the past two years the QUIPS program has tended
to select schools in rural and educationally disadvantaged areas instead
of including urban schools, as was done in early years. The result is an
over-representation of weaker-performing schools. Since the achievement
was 97% of the target, it was considered to have been met.

However, the Ministry of Education (MOE) has not performed well under
Tranche III Phase 2 of the Non-Project-Assistance (NPA) Program, meeting
only 1 out of 5 benchmarks. This lackluster performance reflects the
MOE\'s limited management, planning and analysis ability.

**Action Taken:** Because of its poor performance, the MOE agreed to
convert the remaining \$4.5 million in obligated NPA funds to Project
Assistance. The Mission in turn will use these funds to support district
grants and other new initiatives that arose from recommendations of the
mid-term assessment. Meanwhile, the EU and the UK\'s DfID will provide
technical assistance to the MOE to strengthen its planning and analysis
capacity.

## D. Country: Liberia

## **SO Title:** Increased Food Security In Targeted Areas {#so-title-increased-food-security-in-targeted-areas .unnumbered}

**Discussion:** Liberia\'s food security initiative aims to increase
food production with resulting income generation and job creation
through provision of tools and high yield, improved planting materials
and the introduction of better technology.

In 2001, site visits and grantee indicators suggested good progress with
food crops. However the lack of technical advice and marketing problems
adversely affected the small ruminant and tree crop components, which
did not meet their target. Of the thirty-five community-based
organizations targeted to receive 245 small ruminants (mainly goats),
only 10 communities received 70 ruminants.

Since the Increased Cash Crop Income for Smallholder Farmers program was
begun two years ago, grantees report that 915 hectares, owned by members
of 136 community groups, have been rehabilitated or replanted compared
to a target of 1,046 hectares. Last year, 417 hectares owned and
operated by members of 69 community groups were rehabilitated compared
to a target of 560 hectares, figures which have not yet been verified by
USAID. Low prices due to a lack of formal marketing facilities severely
hampered the program. Before the war, farmers sold their produce
domestically to the Liberia Produce Marketing Corporation (LPMC), a
Liberian Government parastatal. Currently, the Corporation is inactive
due to lack of funds to rehabilitate its war-damaged infrastructure and
facilities, and other marketing mechanisms have not yet been developed.

**Action Taken:** Results in this SO are encouraging, however, and USAID
plans to put more emphasis on food crops with long-term success
dependant upon addressing conflict issues and establishing security in
rural areas. Proposed interventions may include addressing key policy
constraints limiting the growth of sustainable agriculture and private
sector growth. This program, aimed to be operational in FY 2003, is
intended to lay the groundwork for a more sustainable approach to
agriculture and rural development.

## E. Country: Mali

## **SO Title:** Increased value-added of specific economic sectors to national income {#so-title-increased-value-added-of-specific-economic-sectors-to-national-income .unnumbered}

**Discussion:** This Strategic Objective, which intends to promote
sustainable economic growth (SEG) in Mali, met or exceeded only half of
its 2001 targets. For instance, as a major achievement in 2001, domestic
cereal production grew to about 2.9 million metric tons, 24 percent
higher than last year\'s harvest. Unfortunately, the value-added figures
for cereals showed a decline and related targets were not met.

However, the 2001/2002 cereal balance sheet indicates that Mali will
have an overall cereal surplus of 230,000 tons (including 54,000 tons in
rice), following a deficit in 2000/2001 of approximately 140,000 tons.
In addition, a major breakthrough was made on the marketing front during
year 2001. Through the USAID-created marketing information network, more
formal contracts are now signed between traders and more payments are
now made through the banking system.

**Action Taken:** A new agriculture credit mechanism, bank loan
guarantees provided through the Development Credit Authority, is being
implemented in response to the lack of investment financing in the
agribusiness sector. The program promotes increased access of small,
medium and large agree-businesses to bank financing through a guaranteed
fund that will cover 50% of the risk associated with lending to
enterprises in the agribusiness sector. USAID/Mali has signed agreements
with two private banks as the implementing financial intermediaries of
the program, potentially generating \$3,700,000 in guaranteed credit.
However, there is simply not enough credit for agriculture and this
remains a major challenge. The potential for expansion is enormous
(235,000 hectares) but so is the amount of capital required for
infrastructure (for irrigated land development and canal construction,
over \$1 billion is needed).

## F. Country: Mali

## **SO Title:** Improved social and economic behaviors among youth {#so-title-improved-social-and-economic-behaviors-among-youth .unnumbered}

**Discussion:** This objective for Mali is divided into health and
education. The health program works to improve health-related behaviors
among youth through better service access and quality, service use
promotion, and strengthened institutional capacity to provide services.
The education program aims to improve educated related behaviors of
youth through increased access to quality primary education and
strengthened institutional capacity to provide services.

Overall, the health program was not able to meet the majority of the
targets that were set for 2001. While contraceptive distribution and
sales have been daily management issues, recent DHS data confirmed that
little progress has been made in the health sector nationwide. USAID has
introduced major course corrections in our program, in anticipation of
\"getting back to the basics\" under the new Country Strategic Plan. For
this, and given the one-year extension of the current Country Strategic
Plan, only selected activities (family planning promotion, contraceptive
security, HIV prevention, reproductive and child health training) will
be continued. Others, specifically youth development activities, and
field activities currently being implemented by PVOs, will be terminated
at the end of the Cooperative Agreements (September, 2002). The Mission
has determined that private voluntary organization (PVO) activities, as
implemented under this program, are far too costly and too limited in
coverage to have any significant impact on a national level. We have
opted to invest in those processes and steps that are working or that
still need to be developed to address deficiencies of the past. New
elements (job aides for service providers, wide-scale malaria
prevention, nutrition best practices, community-level services, behavior
change approaches) will be introduced.

The education portion of SO1 met most targets in 2001, however community
school programs still pose major challenges. In 2001, the gross
enrollment rate for community schools was lower than the national
averages. Furthermore, the access rate in community schools appears to
be declining. Girls\' access and enrollment in community schools are
generally lower than that of public schools. To address these
shortcomings, USAID will take two actions in 2002 and 2003. First, it
will commission an independent study of USAID-sponsored community
schools to determine the reasons for overall declining enrollment and
poorer participation of girls. Second, rather than just continuing to
expand the number of community schools, based on the findings of the
evaluation USAID will work with its PVO partners to modify their
interventions with community schools for improving quality.

## G. Country: Mali

## **SO Title:** Community organizations in target communes are effective partners in democratic governance {#so-title-community-organizations-in-target-communes-are-effective-partners-in-democratic-governance .unnumbered}

**Discussion:** Mali\'s democratic governance strategic objective aims
to improve development decision-making and planning by community
organizations (COs) through grassroots empowerment and to
institutionalize the decentralization process. The objective met about
half of its targets for 2001.

Overall program results are measured by the percentage of community
organizations (COs) forming good partnerships with local government in
delivering public services. The performance data for 2001 did not meet
targets (43% compared to 60% planned), largely due to an expansion in
local government (election of communal councils in mid-1999). Another
measure is the percentage of COs pursuing specific issues through
systematic civic actions, as defined by a multi-faceted process of
strategic planning and implementation. Here, performance was below the
planned targets, with 41% achieved compared to 90% planned for target
COs.

A major challenge in the program has been the ability to quantify
achievements, as progress in capacity development is often judgmental.
Qualitative assessments are made more easily, but are difficult to
measure over time. Another major challenge for democracy at the local
level is the transfer by the government of responsibilities to
communities and local-level elected leaders who have not had the
training and experience in effective governance.

## H. Country: Mozambique

## **SO Title:** Government and civil society are effective partners in democratic governance at the national and local levels {#so-title-government-and-civil-society-are-effective-partners-in-democratic-governance-at-the-national-and-local-levels .unnumbered}

**Discussion:** Mozambique is a model democratic success in Africa, with
a young multiparty democracy. USAID\'s focus long term is on building
the basic institutions required to sustain democratic governance,
through training and institution building for the parliament, courts and
political parties and work with organizations of civil society to engage
the government in dialogue about constitutional reform, judicial reform
and legislative issues.

Progress under the Mission\'s democratic governance program continued on
target in 2001, although not all targets were met.

Citizen expectations of government remained high while satisfaction with
performance was mixed. Most citizens still defined democracy as an
improvement in their socio-economic conditions, and yet believe their
conditions have not improved, highlighting the importance of poverty
reduction in solidifying democracy in Mozambique.

Also in 2001, a group of lawyers and interested citizens sponsored and
widely disseminated the results of a USAID-financed nation-wide
corruption survey, the first of its kind. This documented not only the
pervasiveness and depth of petty corruption throughout the ranks of the
civil service, the police, and the judiciary, but also the anger and
latent violence voiced by the citizens who face this corruption daily.

Action Taken: In August 2001, leaders from Mozambique\'s legal,
academic, judicial, and social communities founded Ethics Mozambique, a
non-governmental organization whose aims include keeping the pressure on
the government to effectively tackle corruption. New indicators have
been developed, and baselines established, to measure the success of the
Mission\'s expanded efforts to help Mozambique - both the government and
civil society \-- fight corruption effectively.

## I. Country: Nigeria

## **SO Title:** Improved Management of Critical Elements of the Infrastructure and Energy Sector {#so-title-improved-management-of-critical-elements-of-the-infrastructure-and-energy-sector .unnumbered}

**Discussion:** This strategic objective supports Nigeria\'s efforts to
rehabilitate its energy, aviation, and port sectors, which have suffered
from the same mismanagement and neglect as the rest of its economy.
Despite possessing some of the world\'s largest oil reserves, just 34%
of Nigerians have any access to electricity, and gasoline and diesel are
in chronic short supply. Inefficiency and corruption at ports have led
to port costs that are among the highest in Africa. While the poor
supply of electricity and fuel significantly retard Nigeria\'s economic
growth, the state of aviation and port services seriously restrict its
ability to participate in the world economy.

The objective met its energy targets for FY 2001, but failed to meet the
targets established for the port program. USAID\'s program to reform the
port sector funded the training of 20 senior maritime officials at the
US DOT facility in Kings Port, NY. At the request of the Minister of
Transport, these officials began drafting a policy paper for the reform
of the maritime industry, including privatizing port services, revising
port rules and regulations, and improving the environmental impact of
ports

**Action Taken:** The persistence of corruption throughout the society
and government underlies many of Nigeria\'s problems. As the Mission
gains experience with the complexity of corruption, it plans to develop
additional programs to address the issue in the short term, as well as
in a new long-term development strategy.

## J. Country: Tanzania

## **SO Title:** Civil society and government are more effective partners in governance {#so-title-civil-society-and-government-are-more-effective-partners-in-governance .unnumbered}

**Discussion:** The purpose of this strategic objective is to promote
partnerships between civil society and the Tanzanian government to
foster good governance. In 2001, this objective did not meet
expectations because the launch of a flagship cooperative agreement to
implement a significant portion of the program was delayed to the end of
the year.

During the year, Ministry of Finance staff expressed increasing concern
to donors on two issues: the need for greater government ownership and
participation in decision making on new activities; and, the large
number of expatriates implementing technical assistance programs. These
GOT concerns required protracted and high level discussions and meetings
with government counterparts before consensus was reached for USAID\'s
award to the implementing agency. These discussions helped to build an
understanding of the longer-term objectives of the program - increased
capacity for Tanzanian institutions - which would alleviate needs for
expatriates in the future.

At the end of the year, the cooperative agreement was awarded and as the
activity moves into full implementation over the next 12 months, the
pipeline will be reduced to comply with Agency guidelines. The SO team
has identified indicators and will undertake baseline surveys and set
targets this spring. A complete Performance Monitoring Plan will be in
place by May 31st 2002.

The political process in Zanzibar is at a historic juncture. After a
flawed election in 2000, and violent conflict in early 2001, the ruling
and major opposition parties are making concrete progress towards peace
and reconciliation. It is vitally important to the long-term economic
growth and prosperity of the country that this conflict be resolved. The
Mission has been continually assessing the situation to take advantage
of this unique opportunity to promote an environment for greater civil
society and private sector involvement in government decision-making. In
conjunction with the US Embassy, USAID/T plans to support a package of
electoral reforms and other carefully targeted DG activities with
combined Development Assistance (DA) and Economic Support Fund (ESF)
resources.

## K. Country: Regional Center for Southern Africa

## **SO Title:** A More Integrated Regional Market {#so-title-a-more-integrated-regional-market .unnumbered}

**Discussion:** The Regional Center for Southern Africa\'s (RCSA)
regional market strategic objective aims to reduce barriers to wider
participation in the market, provide a more efficient infrastructure,
and establish sustainable advocacy mechanisms for regional integration.

Overall the SO did not meet planned targets. The SO met targets for two
indicators, but these indicators reflect overall growth in sectors that
the RCSA supports rather than the direct effects of current SO
activities. RCSA support to the telecommunications sector since 1995
helped change the incentive structure to attract investments by private
cellular providers. Increases in tele-density capture the effects of
these investments but a better indicator is needed for current
telecommunications activities. The SO was unable to obtain data for
other important indicators such as transport costs along selected
transportation corridors and rail wagon turnaround time. With respect to
the latter, the installation of the Rolling Stock Information System is
significantly behind schedule.

Action Taken: As a result of an intensive portfolio review in October -
November 2001, the RCSA recognized that the SO results framework,
Performance Management Plan and portfolio of activities were out of
alignment. The SO has streamlined the portfolio and is developing more
appropriate indicators that will enable the SO to manage for results
more effectively. For example, the SO will develop an indicator to track
trade occurring under the SADC FTA rules of origin, and an indicator to
track the impact of USAID\'s AGOA (Africa Growth and Opportunity Act)
interventions.

## L. Country: Regional Center for Southern Africa

## **SO Title:** Expanded Commercial Markets for Agricultural Technologies and Commodities in the SADC Region {#so-title-expanded-commercial-markets-for-agricultural-technologies-and-commodities-in-the-sadc-region .unnumbered}

**Discussion:** This strategic objective builds on prior achievements in
technology transfer and development by USAID\'s Regional Center for
Southern Africa. It aims to expand commercial markets by removing or
relaxing non-tariff barriers that impede agricultural trade. Meeting
international standards for food safety and quality is a prerequisite
for the expansion of regional and international trade in agricultural
commodities and processed products.

Although the SO achieved a significant result during FY 2001, it did not
meet targets in some important areas. For instance, targets for
increased private sector participation in improved agricultural
technology delivery systems and developing new sustainable agricultural
technologies and practices were not met during FY 2001, although the
region continues to benefit from previous investments in agricultural
technology. Enactment of legislative targets under this strategic
objective by the end of the current strategy period is considered
unlikely.

**Action Taken:** Working with SADC and the World Bank, RCSA completed
inventories of sanitary and phytosanitary measures in eleven countries,
exceeding a target set last year. The next step is to incorporate food
safety and quality standards in the SADC Trade Protocol. This will lead
to compliance with World Trade Organization commodity standards and
increased trade on world markets.

## M. Country: RCSA

## **SO Title:** Increased Regional Cooperation in the Management of Shared Natural Resources {#so-title-increased-regional-cooperation-in-the-management-of-shared-natural-resources .unnumbered}

**Discussion:** This objective of the Regional Center for Southern
Africa (RCSA) is focused on improving the management of shared natural
resources and wildlife through the establishment of trans-boundary
natural resource management areas (\"trans-boundary areas\") where two
or more countries share the same natural resources and wildlife. When
complete, an estimated 35 million hectares is expected to be jointly
managed for the sustained economic benefit of the more than three
million residents of the targeted trans-boundary areas who depend on
subsistence agriculture, fishing and eco-based tourism for their
livelihoods.

Overall, this SO did not meet planned targets. Only four countries have
ratified the SADC (Southern African Development Community) Wildlife
Protocol, still short of the nine countries that were targeted to ratify
it. The SO met most targets related to the adoption of viable practices
for sustainable management of shared natural resources in the Great
Limpopo and Four Corners trans-boundary areas but not in the Limpopo
River Basin. In the area of SADC capacity building, the SO has met most
targets, but ecological monitoring systems for decision-making are in
early stages of being established and has not yet met its targets.

The African Wildlife Foundation (AWF), a USAID grantee, is collaborating
with the Regional Tourism Organization of Southern Africa to include
potentially viable community tourism initiatives in a regional tourism
marketing strategy. Communities in the Four Corners area are conducting
a wildlife census in preparation for the upcoming hunting season, and
the government of Namibia has officially endorsed community-level
wildlife monitoring.

Mozambique, South Africa and Zimbabwe signed a declaration of intent to
establish the Great Limpopo trans-boundary area and reached consensus on
a draft treaty. The RCSA assisted in drafting the Great Limpopo
Trans-frontier Area Management Plan, which the Heads of State of the
three countries are expected to formally adopt in April 2002.

SADC is promoting GIS technology for use in a regional environmental
monitoring program, the major component of which will be a regional
environmental database managed by SADC. The Education, Democracy and
Development Initiative supports a partnership between the University of
Botswana and seven universities in the United States. The activity is
building the capacity of the Harry Oppenheimer Okavango Research Center
to conduct wetlands research and provide data to researchers and
planners in the region. The Center is now providing GIS data on the
Okavango Delta to the Four Corners initiative.

## N. Country: Western Africa Regional Program

## **SO Title:** Early Detection and Response Mechanisms to Prevent Regional Conflicts Established and Functioning {#so-title-early-detection-and-response-mechanisms-to-prevent-regional-conflicts-established-and-functioning .unnumbered}

**Discussion:** Conflict prevention, WARP\'s newest activity, seeks to
improve West African ability to detect and respond to conflict. In FY
2001, it was the activity in which the least discernable progress was
made.

WARP had planned to be further ahead in implementing this objective by
the end of FY 2001; however a number of factors inhibited progress. The
first and key factor was the failure of the Economic Community of West
African States (ECOWAS) to appoint and bring on board a fully accredited
head of the new conflict prevention mechanism, the ECOWATCH unit, until
the third quarter of the fiscal year. Without the presence of this
individual, WARP, as well as other donors, could not develop agreements
on who would do what with ECOWATCH. The second key reason for a slow
start-up was the new conflict advisor\'s lack of familiarity with
USAID\'s complex procurement procedures and the unavailability of
in-house monitoring to provide required support. This was the principal
reason why the CSO assessment did not begin until the last quarter of
the year and why the support with financial management did not get
underway in FY 2001 as planned.

**Action Taken:** WARP believes that these issues are being addressed.
First, the conflict advisor is mastering USAID\'s systems through a
combination of training and in-house support. Secondly, WARP has
established a good working relationship with both ECOWAS and with other
donors working in the conflict prevention field (i.e., the European
Union and British Development Agency) and has made observable progress
in defining a work plan. WARP hopes to be able to report significant
progress in implementing its conflict prevention program in FY 2002.

# II. Asia and Near East Bureau

## A. Country: India

## **SO Title:** Reduced Fertility and Improved Reproductive Health in North India {#so-title-reduced-fertility-and-improved-reproductive-health-in-north-india .unnumbered}

**Discussion:** The purpose of the SO2 is to reduce the current high
level of fertility and improve women\'s reproductive health in north
India, which accounts for more than forty percent of India\'s population
and has a substantially higher growth rate than the rest of India.

A population-based survey conducted in January 2002 established that
progress has not been satisfactory since targets were not met on two
indicators. In the past year, the sale of condoms in rural UP and
Uttaranchal increased by 24% percent from 62 million in 2000 to nearly
77 million in 2001, while pill sales registered a decline in sales from
3.35 million cycles in 2000 to nearly 3 million cycles in 2001, due to a
decline in promotional efforts.

**Action taken:** Greater attention will be paid this year to
intensifying promotional efforts in project areas. Further, to
accelerate sales of pills and condoms, a pilot integrated marketing
approach that includes a wider basket of products is being planned in
rural U.P.

USAID and the World Bank are providing support for contraceptive
logistics in UP and Uttaranchal. The Logistics Management Information
System supported by USAID is currently being piloted in three districts
prior to statewide expansion. In FY 2002, USAID plans to expand the IFPS
activity to cover the entire state of UP, Uttaranchal and another north
Indian state, likely Jharkhand.

## B. Country: India

## **SO Title:** Reduced Transmission and Mitigated Impact of Infectious Diseases, Especially STD/HIV/AIDS in India {#so-title-reduced-transmission-and-mitigated-impact-of-infectious-diseases-especially-stdhivaids-in-india .unnumbered}

**Discussion:** India Strategic Objective 7 aims to slow the
transmission of sexually transmitted infectious diseases in India,
particularly HIV and AIDS, and reduce their impact.

Progress was made, particularly in the AIDS Prevention and Control
(APAC) project in the south Indian state of Tamil Nadu, which is one of
India\'s three recognized epicenters of HIV infection. The APAC activity
applied itself to reducing transmission in high-risk groups in two ways:
by increasing access to and use of high quality condoms and by expanding
access to and use of quality treatment for sexually transmitted diseases
(STDs). The Government of India would like to use this project as a
model for new projects in other states and has asked USAID to expand
APAC and extend it for another five years.

However, this strategic objective did not meet all its targets for the
year. In Tamil Nadu, condom use among commercial sex workers during
their last sexual encounter decreased slightly from 91.2% in 2000 to
88.25% in 2001. Condom use among attendees of sexually transmitted
diseases disease clinics also fell, from 19% in 2000 to 10.9% in 2001.
Figures from these two groups more than offset a gain in condom use
among truckers, from 70.1% in 2000 to 78.1% in 2001. The combined result
for the three groups was a reduction in condom use to 59%, compared to a
target of 62%.

Figures for individuals seeking help in treating sexually transmitted
diseases in Tamil Nadu also failed to meet targets, with an average of
62.7% for the year among male factory workers, truck drivers and
helpers. The target was 75%. A rise in the number of male factory
workers seeking help (from 44.7% to 46.8%) was more than offset by a
reduction among the two other groups (from 86% to 78.6% among truckers
and helpers.)

**Action Taken:** Reduction in the number of individuals seeking
treatment has been attributed to some media reports that implied that
AIDS can now be cured. During the next fiscal year APAC intends to make
an additional effort to promote accuracy in media reports on AIDS. It
also intends to work with local governments to find ways to legislate
against spreading misleading AIDS information.

## C. Country: Morocco

## **SO Title:** Increased Opportunities for Domestic and Foreign Investment {#so-title-increased-opportunities-for-domestic-and-foreign-investment .unnumbered}

**Discussion:** Most of the programs and activities contributing to
USAID/Morocco\'s strategic objective of increasing economic growth
through improved opportunities for investment began only in early
calendar year 2001. Nonetheless, solid progress was realized in most
program areas through the end of the reporting period, 9/30/2001, and
has continued to the present date. These areas include reengineering
administrative processes, streamlining the commercial court,
strengthening business associations and improving microcredit services.

However, one program area, commercial law reform, did not proceed as
planned. This was due primarily to the reluctance of the Ministry of
Justice to undertake a comprehensive review of commercial laws and
regulations, as had been agreed at the inception of the program. On the
positive side, the Ministry has demonstrated a serious interest in
internal administrative reforms at the national and local level.

**Action Taken:** As a partial compromise solution, USAID recently
agreed to reallocate some funds to commercial court strengthening in
Marrakech. The Mission intends to continue pursuing some legal reforms
at the national level.

## D. Country: Morocco

## **SO Title:** Increased Capability and Active Participation of Civil Society in Support of Citizen Rights {#so-title-increased-capability-and-active-participation-of-civil-society-in-support-of-citizen-rights .unnumbered}

**Discussion:** The democracy and governance objective aims to increase
the active involvement by the Government of Morocco and by its civil
society in support of citizen rights. As an initiative, it was conceived
to take advantage of a political environment in Morocco favorable to
genuine political reform, respect for human rights and the rule of law.
The objective met four of its targets in 2001 and failed to meet three.

Aspects of the legal literacy training program for women, a complex and
collaborative effort, are counted among the key achievements of
USAID/Morocco for the year although it was not completed on schedule.
The program is expected to be finished by March 2002.

Similarly, the Code of Ethics project moved more slowly than expected. A
ministerial working group, headed by the Prime Minister, developed a
draft code and circulated it among ethics experts around the globe, but
a final version was not completed because many members of the
Ministerial Working Group became more focused on their own party
politics for the upcoming elections in September 2002.

A third target, the advocacy training of trainers for NGO staff,
implemented by a Moroccan NGO, was also delayed because of a change in
the coordinator of the project.

Moroccan elections will conclude several activities supported by the DWG
and likely re-open the strategic framework discussion. A previously slow
implementation process is improving.

## E. Country: Sri Lanka

## **SO Title:** Increased Sri Lankan Competitiveness in the Global Marketplace {#so-title-increased-sri-lankan-competitiveness-in-the-global-marketplace .unnumbered}

**Discussion:** This objective aims to increase Sri Lanka\'s
competitiveness in global markets through an improvement in economic
growth, and expansion and strengthening of critical private markets.
Increasing competitiveness requires accelerated growth of value added
industries, a shift away from dependence on low cost advantages such as
cheap labor, and increased employment among Sri Lanka\'s educated youth.

USAID\'s efforts in this area focus primarily on \"industry clusters,\"
which are alliances formed between USAID and individuals and
corporations from the private sector, NGOs, and trade organizations.
These clusters develop and implement strategies that recommend
increasing the value of various products by investing in innovation and
technology to upgrade quality and productivity, as well as seeking
needed policy or regulatory reforms.

While SO4 realized a number of key achievements, it did not meet all of
its targets for FY 2001: \"Clusters benchmarked\" target was not met.
Drafts of the benchmarks were completed, but problems and concerns
remain regarding incomplete data, the quality of the data provided, and
appropriateness of the models used for comparison. This effort has
largely been abandoned, although some additional targeted benchmarking
may be done if it is determined it would be useful for certain clusters.
\"Cluster strategies developed\" target was not met. Drafts of the
strategies for the clusters have been prepared, but final strategies are
still not complete. One sector has completed a strategy, another four
are in the final stages of editing, and another three are still in early
draft form. USAID expects to receive final versions during FY 2002.

**Action Taken:** The Mission has worked with the contractor to resolve
management problems in the contractor\'s project office to facilitate
more rapid completion of deliverables and anticipates a significant
improvement during FY 2002.

# III. Europe and Eurasia Bureau

## A. Country: Georgia

## **SO Title:** A More Economically Sustainable and Environmentally Sound Energy Sector {#so-title-a-more-economically-sustainable-and-environmentally-sound-energy-sector .unnumbered}

This strategic objective aims to develop a more economically sustainable
energy sector in Georgia by (1) emphasizing a business climate that will
attract private sector participation and ownership, and (2) the
improvement of energy efficiency measured in economic terms.

Performance did not meet expectations during the past year. The energy
sector continued to be plagued by extremely low collection revenues and
poor cash-flow management. To help address the problem of poor financial
discipline, management contracts for the electricity transmission,
dispatch and wholesale market were put out for bid. Award and
implementation of these contracts is believed to be critical for further
sector reform and is the subject of conditionalty for disbursement of
additional funds by both the World Bank and the IMF.

Efforts to privatize energy sector generation and distribution assets
\-- hydropower plants in Western Georgia and the Tbilisi gas
distribution company \-- were also unsuccessful. Until revenues are
collected from customers, little investment interest can be generated in
the assets. USAID has provided the necessary advisory services and tools
to correct much of the problem, but the municipality has little
political will to enforce the recommended action.

**Action Taken:** In FY 2002, USAID will continue to support training
and operational improvements in the regulatory and oversight agencies.
Additional resources will be directed toward improving the billing,
collections, and revenues cycle. Pilot programs will be initiated in
selected communities in Georgia to link improved revenue collections
with improved service delivery.

## B. Country: Kazakhstan

## **SO Title:** More Effective, Responsive, and Accountable Local Governance {#so-title-more-effective-responsive-and-accountable-local-governance .unnumbered}

**Discussion:** Because the lack of political will makes central
government decentralization in Kazakhstan a difficult challenge, USAID
has focused energy and resources on building capacity in local
government. There were some noteworthy accomplishments over the past
year, however, targets for this SO were not met overall.

Polling data revealed a decrease from the previous year in the public\'s
confidence in local government. Local government also suffered a severe
blow when the Government of Kazakhstan fired a number of young
reformers. While the loss of these key counterparts devastated USAID\'s
local government activities, it also opened new opportunities for
discourse on topics previously avoided.

**Action Taken:** In FY 2002, this SO will merge with SO 2.11,
\"Strengthened democratic culture among citizens and targeted
institutions.\" Combining these two strategic objectives may allow a
broader application of the local government program and further
integration with the democracy objectives and programs.

## C. Country: Kyrgyzstan

## **SO Title:** Increased Soundness of Tax and Budget Policies and Administration {#so-title-increased-soundness-of-tax-and-budget-policies-and-administration .unnumbered}

**Discussion:** USAID\'s fiscal reform program in Kyrgyzstan aims to
strengthen tax and budget policies and administration in order to
improve overall economic stability and growth. By helping to increase
government revenues and the efficiency of public expenditures and by
making government more responsive to public demands, USAID\'s work in
fiscal reform helps expand economic opportunities and reduce the
potential for conflict. This work is key to Kyrgyzstan\'s meeting
requirements for International Monetary Fund loans.

Although revenues did increase significantly for the year, they have not
yet fully recovered from the financial crisis of 1998, and tax revenue
growth failed to meet original targets. A new agreement between the IMF
and the GOK has lowered the tax revenue target to 15% of GDP by 2004.

USAID has helped the Government of Kyrgyzstan develop more realistic
revenue projections for the 2002 budget and devise a set of revenue
raising proposals aimed at closing the projected fiscal gap that was
created by the introduction of major tax rate cuts earlier this summer.
USAID will participate in the meetings that will lead to the negotiation
of the next IMF loan to Kyrgyzstan.

Marked improvements in budgeting, tax policy and program budgeting
demonstrated the need to begin graduating those portions of the fiscal
reform program, thereby setting the stage for the implementation of an
exit strategy in FY 2003 and focus on fiscal reforms at local levels.

## D. Country: Moldova

## **SO Title:** Local Democratic Institutions More Effective, Responsive and Accountable {#so-title-local-democratic-institutions-more-effective-responsive-and-accountable .unnumbered}

**Discussion:** Building effective, responsive, and accountable
institutions is considered essential for Moldova\'s transition to a
democracy. This strategic objective aims for results in three areas:
local government fiscal autonomy, improved municipal services, and more
democratic governance.

Although local government autonomy was strengthened, capacity of civil
society organizations to represent and serve citizens increased together
with citizens\' confidence in and respect for the legal system,
challenges to the achievement of this objective have emerged. The
decision of Moldova\'s Communist government to return to the former
'rayon' system and adopt an anti-decentralization policy related to
local government raised serious concerns. The Council of Europe reacted
firmly against the government\'s decision, while the international
community, particularly the IMF and the World Bank, were strongly
opposed.

**Action Taken:** In light of these developments, USAID intends to
conduct a full assessment of the project, taking into account its
technical performance to date and the new political developments so that
a decision on the project\'s future prospects can be made.

## E. Country: Russia

## **SO Title:** Improved Effectiveness of Selected Social Benefits and Services {#so-title-improved-effectiveness-of-selected-social-benefits-and-services .unnumbered}

**Discussion:** This strategic objective combines local governance and
health. It includes activities aimed at strengthening delivery of
Russian social services at the local level and services intended to be
replicated nationally.

The local governance part of SO 32 did not meet half of its targets. To
be sustainable, Russian cities need to make more efficient use of their
assets and improve the delivery of services. So far, true reform in this
regard has come only to a handful of Russian communities. However, with
the Government of Russia\'s policy development efforts re-energized and
a continued physical deterioration of municipal infrastructure, this
situation is rapidly changing. There has developed a huge demand for
assistance with national and local-level reforms. USAID\'s local
governance activities are and will continue to be in the forefront in
responding to those needs.

In addition, debate had continued on the distribution of authority and
resources among different levels of government. The Russian Constitution
clearly separates local self-governance from the federal government, but
local governments are often deprived of real autonomy. In an
increasingly negative trend, federal and regional governments are
attempting to preempt many important local decisions. Another phase of
the debate was anticipated to begin in mid-2002, following
recommendations issued by the year-long Presidential Commission on
Distribution of Authority and Resources issued recommendations to the
Putin Administration. Similar challenge lies in getting the word up to
the federal level on how reforms work at local level and what reforms
are needed.

The health program, which includes efforts to combat infectious diseases
such as HIV/AIDS, sexually transmitted diseases and tuberculosis, to
promote community-based preventive health measures, and to provide
assistance to orphans, met its targets. Data are not yet available for
the key indicator on tuberculosis, but recent trends suggest this target
will be met.

Much of the poor state of Russia\'s health indicators has its foundation
in individual lifestyle choices and the low priority given to preventive
health practices. To make major gains in health, a new activity will
target the major causes of elevated mortality in Russia and pursue
approaches using the Internet and other communication strategies to
further disseminate successful models and intensify our focus on youth.

## F. Country: Russia

## **SO Title:** Strengthened Rule of Law and Respect for Human Rights {#so-title-strengthened-rule-of-law-and-respect-for-human-rights .unnumbered}

**Discussion:** USAID\'s work to advance the rule of law in Russia
includes efforts in the areas of judicial and legal reform, human rights
and anti-corruption. Despite significant advances in each area during FY
2001, of the 19 indicators of performance used to measure this strategic
objective, seven did not meet their targets.

The Putin administration made legal and judicial reform a high priority,
resulting in three important laws affecting the judiciary enacted in
late 2001, however, on the human rights front, the picture was bleaker.
Western and Russian NGOs collected large amounts of information
documenting human rights abuses and disturbing new developments
affecting broadcasts media and religious freedoms.

Future challenges to be addressed in the area of rule of law include
adjustments to the new legal system, a continuing lack of transparency,
persistent corruption, and lack of public understanding and trust.
Implementation of the most important legislative advances in the legal
system, such as the change from an inquisitorial to an adversarial
system, will require new written guidelines. They will also require
substantial training for lawyers, judges and other legal personnel,
continuing the work of USAID-assisted clinical law education programs
which are already showing results in this area.

Prospects for significant improvement in establishing the rule of law
will depend heavily on continued political will within both the
presidential administration and the judiciary. Among other challenges
are the lack of public understanding and trust in the judicial system,
failure of the public to be adequately informed about recent judicial
changes, and pervasive corruption in economic and political
institutions, including the judiciary. The code of ethics of Russian
judges, only a few years old, so far lacks consistent application. There
also remains the great challenge of informing citizens of their rights
while also motivating them to take responsibility, a task that will be
complicated by widespread apathy, particularly among youth.

## G. Country: Tajikistan

## **SO Title:** Improved Environment for the Growth of Small and Medium Enterprises {#so-title-improved-environment-for-the-growth-of-small-and-medium-enterprises .unnumbered}

**Edited Discussion:** USAID\'s small and medium enterprises (SME)
program in Tajikistan is based on the principle that a strong SME sector
will fuel economic growth and job creation, and that expanding economic
opportunities will help reduce the potential for social tension and
conflict.

Tajikistan\'s precarious political and social situation continued to
limit the scope of USAID economic reform programs in FY 2001. Because of
tight travel restrictions, only limited programs were pursued. Some
progress was made in supporting the development of the legal framework
necessary for a market economy by providing training for legislative
drafters and by increasing access to modern business information and
skills.

During FY 2001, USAID assisted reformers in the Tajik judiciary to
create a more transparent and efficient system of justice. The index
measuring improvement in the legal and regulatory environment showed
some progress, but fell just short of the planned target.

Political and social instability remained a serious obstacle to the
successful implementation of USAID reforms.

**Action Taken:** Increased U.S. military presence in Tajikistan and the
elimination of much of the threat to the south have already increased
stability there, and USAID/CAR is confident of being in a position to
deliver a more comprehensive portfolio of economic reforms in the near
future.

## H. Country: Tajikistan

## **SO Title:** Strengthened Democratic Culture Among Citizens and Target Institutions {#so-title-strengthened-democratic-culture-among-citizens-and-target-institutions .unnumbered}

**Discussion:** Strengthening democracy in Tajikistan is considered
essential to maintaining peaceful relations between former warring
parties and avoiding a return to conflict. USAID programs have
concentrated on two major political institutions, Tajikistan\'s
pluralistic parliament, which provides a peaceful means for various
viewpoints to be aired, and its coalition government, which offers
legitimate avenues for reconciling differences through peaceful
democratic processes. During a period of recovery from civil war, these
two institutions continue to provide a peaceful way of allocating scarce
resources among various factions in a climate of extreme poverty which
tends to aggravate tensions and during a period of recovery from civil
war.

Although USAID\'s overall goal was met for the year, according to
polling data, the sub-goals of creating stronger and more sustainable
civic organizations and increasing availability of information were not
met. The NGO sector showed a marked improvement in advocacy, service
provision and organizational capacity, but lower than expected numbers
were recorded in some categories.

NGOs directly benefit from USAID assistance through financial support
and through training and technical assistance which strengthens NGO
capacity and sustainability. USAID\'s region-wide program for civics
education textbooks, which is aimed at 10th and 11th grade levels for
other countries of the region, needed to be adapted for 9th graders,
because of the country\'s low literacy and school attendance rates. Next
year this program will pilot a teacher\'s manual and textbook in 10 or
more schools in four or five regions as permitted by the security
situation. It will also offer training courses for teachers on use of
the materials.

## I. Country: Turkmenistan

## **SO Title:** Improved Management of Critical Natural Resources, Including Energy {#so-title-improved-management-of-critical-natural-resources-including-energy .unnumbered}

This Objective targets improved management of Turkmenistan\'s most
important natural resources \-- its water and its large oil and gas
reserves. Equitable sharing of water resources and maintenance of
harmonious relations between downstream and upstream republics is
considered critical to the region\'s economic growth. Much of
Turkmenistan\'s water resources originate in Tajikistan. However, the
Government of Turkmenistan does not recognize a need for water
conservation and has shown little interest in trans-boundary water
cooperation or regional water treaties that could limits its access to
water. Because of resistance to change at the top level of government
there appear to be few prospects for any immediate progress.

USAID\'s performance targets for this strategic objective were modest,
but they were not fully met.

**Action Taken:** The Mission is proposing to shift the emphasis of its
program from the existing unresponsive government managers to university
students and the next generation of managers within the government
bureaucracy. A university curriculum of focussing on natural resources
management courses will be developed by the Natural Resources Management
Project. If targets of the current strategy cannot be met, the program
may still succeed in the long term, by preparing the next generation for
reform in the event of a radical change in the existing government
structure.

## J. Country: Uzbekistan

## **SO Title:** Improved Management of Critical Natural Resources, Including Energy {#so-title-improved-management-of-critical-natural-resources-including-energy-1 .unnumbered}

**Discussion:** Equitable sharing of water resources in the Central
Asian republics is important to U.S. strategic interests, critical to
future economic growth in the region and vital to the maintenance of
harmonious relationships between the upstream and downstream republics.
This is particularly true in Uzbekistan, which depends on the upstream
countries on Kyrgyzstan and Tajikistan upstream for virtually all its
water supply.

USAID\'s activities in the water sector in Uzbekistan were met with
positive responses during the year, and the Mission believes that the
highest level goal will likely exceed expectations by the end of the
strategy period. The Ministry of Agriculture and Water Resources (MAWR)
indicated its willingness to undertake needed policy reforms in water
resources management in order to increase agricultural production and to
establish water user associations for farmers. In addition, several of
USAID\'s training courses developed under the Natural Resources
Management Project (NRMP) were replicated by various government agencies
and NGOs.

However, the program in general fell short of its targets for the
period, for one reason because a reduced number of regional and
international flights into Uzbekistan, significantly delayed procurement
of equipment and the services of short-term technical specialists.

In the regional training program, four new Natural Resources Management
Project pilot demonstration models were scheduled for completion during
the year, but all were delayed, some because of shortfalls in the
Government of Uzbekistan\'s matching contribution, others because of
chronic delays with programs implemented by Israel\'s Center for
Cooperation (MASHAV) across the region. Two other models were delayed
because of insistence upon US-based training by the US National Oceanic
& Atmospheric Administration (NOAA). This component has been transferred
from NOAA to the project\'s institutional contractor and the Mission is
attempting to accelerate development of these models in order to improve
the impact of classroom training and improve future performance with
regard to meeting targets for training and public advocacy.

**Action Taken:** The mission is reviewing the situation to determine
the best approaches to overcome these hurdles.

## K. Country: Uzbekistan

## **SO Title:** Strengthened Democratic Culture Among Citizens and Target Institutions {#so-title-strengthened-democratic-culture-among-citizens-and-target-institutions-1 .unnumbered}

**Discussion:** Following the September 11 terrorist attacks, this
strategic objective has become one of the most critical in the Central
Asia region\'s portfolio, no less so in Uzbekistan. The balance between
the U.S. Government\'s new military and security relationship and
Uzbekistan\'s horrendous human rights record and lack of progress on
political reform places new importance on USAID\'s efforts in democracy.
Moreover, USAID\'s analysis of some of the triggers which can set off
conflict in Central Asia point to several of the factors being addressed
through the democracy program. Stability in Uzbekistan depends on
progress being made in opening up political space, providing avenues for
political dissent and achieving greater respect for human rights.

While achievements in Uzbekistan over the past year have been
significant, overall the program did not meet the primary target set out
for the objective. Polling data indicate that only 38% (the target was
41%), of the population exhibited civic consciousness and activism \-- a
drop from the last reporting period.

Factors which may have contributed to weak performance include the
forced closure of USAID\'s civic education program, a lack of focus by
USAID on politically active NGOs, and too few resources devoted to
media.

**Action Taken:** More positive results are expected next year because
of changes to the program such as a new media effort with bolstered
resources. Results are also expected to improve because of slightly less
tension in the political environment due to reduced threat from the
Islamic Movement of Uzbekistan (IMU) and because international pressure
is expected to focus on Uzbekistan\'s poor human rights record. The
State Department intends to increase its support of human rights NGOs in
Uzbekistan, a program managed by USAID. The Mission is also exploring
the possibility of implementing an education reform activity. Together
these efforts should help USAID meet its target for the democracy
strategic objective in Uzbekistan next year.

# IV. Latin America and Caribbean Bureau

## A. Country: Brazil

## **SO Title:** Increased Effective Programs to Prevent HIV Transmission and Control Tuberculosis {#so-title-increased-effective-programs-to-prevent-hiv-transmission-and-control-tuberculosis .unnumbered}

**Discussion:** The purpose of USAID/Brazil\'s HIV/AIDS/TB program is to
increase the number of sustainable and effective programs to prevent
sexual transmission of HIV among target groups and to control
tuberculosis in targeted geographic areas.

While the program demonstrated many successes in FY 2001, overall, the
SO did not meet all expectations. This was primarily due to a
significant change in the mission\'s HIV/AIDS portfolio. In April,
USAID/Brazil\'s cooperative agreement with two cooperating agencies was
terminated due to inadequate financial and programmatic performance. As
a result, the planned targets for the program component that focuses on
strengthening the technical capacity of USAID-targeted STI/AIDS programs
were not achieved.

**Action Taken:** The Mission has shifted resources to strengthen the
more successful activities of its HIV/AIDS prevention portfolio. This
includes expanding condom social marketing initiatives to other regions
within Brazil, strengthening the management capacity of selected
Brazilian NGOs that work in HIV/AIDS prevention, and supporting new
operations research activities in HIV/AIDS prevention, TB control and
HIV/TB co-infection.

In addition, several factors were identified that increase the risk of
HIV/AIDS transmission in six Brazilian border region, including the
concentrated movement of people and goods, drugs and arm trafficking,
child prostitution and trafficking of girls and women, and isolated
populations, especially indigenous groups without access to HIV/AIDS
information. Based on the assessment\'s final results, USAID plans to
support prevention interventions in collaboration with the Brazilian
MOH, the Pan American Health Organization (PAHO), neighboring countries
and other USAID missions.

## B. Country: Colombia

## **SO Title:** Provide economic and social alternatives to illicit crop production {#so-title-provide-economic-and-social-alternatives-to-illicit-crop-production .unnumbered}

**Discussion:** USAID\'s alternative development program in Colombia
provides alternative licit income and employment opportunities to small
producers of illicit crops. It also provides a vital social and
productive infrastructure to ensure adequate access to markets for the
licit crops.

Overall, the program did not meet its targets due to the greater than
anticipated problems with security and deficient institutional capacity
of key Government of Colombia entities. While the number of families
that benefited directly from medium-term productive and resource
management activities under the poppy reduction programs in FY 2001
exceeded expectations, the number of hectares of illicit crops
eliminated and hectares of legal alternative crops supported by the
program have fallen short of planned levels.

**Action Taken:** Several adjustments have been made to the program
implementation strategy. Hectares of poppy and coca production
eliminated will no longer be used as a measure of program success
(although they will be tracked), as there is a general recognition that
alternative development programs do not eradicate but rather help to
sustain the eradication efforts of other U.S. and Colombian agencies.
The program will limit alternative development investments in remote,
scarcely populated areas with few or no traditional communities, and
where prospects of alternative income development are very limited, and
instead concentrate its efforts in areas west of the Cordillera Oriental
(the eastern range of the Andes), where better security conditions,
increased market access, and stronger, more cohesive civil organizations
prevail.

Moreover, additional program implementers such as local and
international NGOs, foundations and private sector enterprises will be
incorporated into the program to improve implementation efficiency and
expand outreach. The program will also broaden the scope of its
activities from the community to the regional level.

It is hoped that a regional approach, rather than the current focus on
individual communities, will improve the long-term sustainability of
results. With this broadened scope, the program will have a larger
impact on both eradication and prevention, achieve better forward and
backward market linkages and product processing, and garner greater
private sector investment, thereby ensuring a more integrated program
with improved potential for success.

## C. Country: Ecuador

## **SO Title:** Increased Support for the Democratic System {#so-title-increased-support-for-the-democratic-system .unnumbered}

**Discussion:** Ecuador\'s democracy and governance program was focused
primarily on establishing a more effective and fair criminal justice
system and fighting corruption during this period, although in June 2001
the strategy was revised to include increasing citizen support for the
democratic system. The new strategy continues to include key justice and
anti-corruption components.

USAID/Ecuador did not meet expectations with respect to aspects of
implementing Ecuador\'s new code of criminal procedures (NCCP), which
was developed with significant USAID support and became law in July
2001. Expectations were also not met with regard to the Government of
Ecuador\'s sanctioning of corruption. USAID\'s efforts were constrained
by factors outside its management control, including a general lack of
political leadership for justice reform within the Supreme Court,
USAID\'s continued inability to work with the Attorney General\'s Office
(a key player in the new criminal process) due to serious allegations of
corruption, and a lack of clear political direction and
inter-institutional coordination in implementing the NCCP.

Specifically, the Mission was not successful in achieving the FY 2001
benchmark \"Judges agree with prosecutors on accusatory interpretation
of indictment procedures.\" The Mission is concerned by the confusion
among the main justice sector actors on their new roles in implementing
the code, and the way in which this is undermining anti-corruption
efforts and the criminal process more broadly. The Mission will continue
to support capacity building to ensure proper NCCP implementation. To do
so, the Mission is working closely with the Narcotics Affairs Section
(NAS) and Ecuadorian counterparts to more formally diagnose problems in
NCCP implementation, and will then use this diagnosis to tailor
appropriate, high impact capacity building interventions for the
principal justice sector actors.

The target of providing training under a formal implementation plan for
the NCCP was not met because the plan was not developed, following
charges of personal corruption against the Attorney General and USAID\'s
suspension of support. The attorney general was to have led the
commission charged with developing the formal implementation plan.
Despite the lack of a formal plan and weak institutional coordination,
the Mission successfully supported introductory NCCP training for 97% of
Ecuador\'s penal court judges, saw production of the first training
manual, and intends in the future to build upon this promising start.

**Action Taken:** The Mission\'s revised democracy and governance
strategy is broader in scope and more opportunity-based than the
previous strategy. FY 2001 achievements provide an important foundation
for the continued implementation of justice and anti-corruption efforts.
Prospects for achieving higher level justice results are improving with
the recent election of a new Supreme Court President, who appears highly
committed to justice reform and judicial independence. Support for the
President from reform elements within the Court, high-level Executive
Branch officials, and a Mission-supported, incipient civil society
reform initiative make the Mission cautiously optimistic that reforms
are achievable. In addition to its justice and anti-corruption efforts,
the Mission has begun a major democratic local governance activity as
part of the revised strategy.

Lastly, USAID has suffered staffing constraints in the DG area that have
hampered Mission efforts to get more done. The Mission will increase
staff in this (and other program) areas once FY 02 program funding is
received.

## D. Country: Guatemala

## **SO Title:** Support the Implementation of the Peace Accords {#so-title-support-the-implementation-of-the-peace-accords .unnumbered}

**Discussion:** The Peace Program in Guatemala fell short of
expectations, despite a few breakthroughs and significant progress at
Intermediate Result (IR) levels. The Peace Accords established an
ambitious set of objectives to be accomplished in a short time frame.
Demobilization of combatants, justice reform and land titling have
advanced, but progress has been less impressive in areas such as
dismantling of the Presidential Military Guard, reparations for victims
of conflict, electoral reform and decentralization, and indigenous
rights and participation.

The Government of Guatemala\'s financing of Peace Accord recommendations
continues as a major constraint to implementation. Despite the Guatemala
government\'s estimates of tax collections reaching 10.4 percent of GDP
in 2002, revenue has been slow to trickle in and receipts will fall
short of the 12 percent mandated by the Accords, leaving inadequate
resources to fund Peace commitments. Efforts to improve government tax
collections have progressed slowly given delays in passage of new tax
laws, and slower than expected progress in improved tax administration.
These factors, combined with the near weekly \"discoveries\" of
government corruption, and the ruling party\'s aversion to dialogue on
key reforms and \"steamroller\" approach to certain legal reforms, have
created a serious governance crisis.

Implementation of pending Peace Accord commitments will require
legislation and financing, and progress has stalled in the present
context. The February 2002 Consultative Group facilitated dialogue among
sectors and a renewed commitment to the Accords, but continued U.S.
Government and broader international community support and pressure will
be required if advances are to be made in 2002 and 2003.

## E. Country: Honduras

## **SO Title:** Economic reactivation meeting the needs of the poor {#so-title-economic-reactivation-meeting-the-needs-of-the-poor .unnumbered}

**Discussion:** Activities for this strategic objective for Honduras
focused on three major areas. The first includes economic policy
analysis and advocacy to support reforms to foster business development,
enhance trade and investment, and reduce poverty. The second includes
technical assistance in production, quality control, and marketing of
high value products such as specialty coffee, non-traditional
agricultural exports, and milk and milk products. The third includes
provision of technical assistance to micro-finance institutions and
chambers of commerce, and provision of business development services to
small and micro enterprises in secondary cities.

Despite some success at the activity level, several macroeconomic goals
were not met primarily because of factors beyond the control of USAID. A
primary SO1 target of increasing private real investment by 5% in 2001
was not met. According to Central Bank statistics, it actually fell by
9.1%. This reduction reflects a decrease in agricultural real GDP of
0.1%.

The agricultural sector suffered historically low world prices for
coffee (the value of coffee exports fell by 53%), bananas, palm oil and
shrimp. Diseases devastated melon crops; leaving previously profitable
agribusiness\'s bankrupt. A drought and Tropical Storm Michelle
exacerbated the agricultural crises, while farmers\' exceedingly high
debt burden and the lost orders because of the U.S. recession left many
insolvent.

USAID met the target of providing financial services to 39% of all small
and micro-enterprises, however, the delinquency rate target of 7% was
missed, and actual delinquency was reported to be 8.1%.

**Action Taken:** USAID will continue implementation in the expectation
that these environmental factors will improve. The situation will be
monitored closely to determine whether a new approach is appropriate.

## F. Country: Mexico

## **SO Title:** Critical ecosystems and biological resources conserved {#so-title-critical-ecosystems-and-biological-resources-conserved .unnumbered}

**Discussion:** Improved conservation management and sustainable
resource use in targeted regions of Mexico is the focus of this
strategic objective, which aims to strengthen institutional and NGO
capacity to design and implement conservation strategies. Although the
majority of the programs supported met their expected goals and SO6
continued to play a critical role in developing NGOs\' and
institutions\' ability to support conservation management in Mexico, SO6
did not meet several of its targets.

In FY 2001, the number of communities adopting USAID-promoted
sustainable use practices dropped, primarily because USAID-supported
programs are ending and are no longer providing annual data for this
non-cumulative indicator. SO6 has refocused efforts on promoting skills
and facilities that will help local communities benefit from tourism and
micro-enterprises. These efforts should be reflected in future adoption
rates.

Finance policy continues to be a major limitation to conservation in
Mexico. In FY 2001, the Parks in Peril (PiP) site of Loreto Bay became
the first Mexican reserve permitted to collect and manage its own
entrance fee; this action may open new policy options for long-term
financing of protected areas.

SO6 is entering the last year of its strategy in FY 2003 and is
assessing progress and developing new visions for the future. SO6\'s
successful development of site conservation models will support future
work to link sites and better integrate conservation and sustainable
development models. Great potential exists to coordinate with the
Mission\'s Democracy team and the Mission\'s South-South thrust,
including Partnership for Prosperity, to work with federal, state, and
local officials on environmental issues and to build from site
management to develop the regional plans in critically threatened areas
including the Gulf of California, the Mesoamerican Reef, and the Selva
Maya.

## G. Country: Mexico

## **SO Title:** Sustainable and Effective Institutional Capacity Developed to Diagnose, Control, and Monitor Tuberculosis in Target Areas {#so-title-sustainable-and-effective-institutional-capacity-developed-to-diagnose-control-and-monitor-tuberculosis-in-target-areas .unnumbered}

**Discussion:** The tuberculosis (TB) program for Mexico is the first
ever program implemented between the Government of Mexico and USAID in
full partnership. Because of obstacles to implementation, this SO did
not meet its targets for the period. In December 2000, a new
administration took office in Mexico and requested to review
administrative and technical issues contained in the strategic objective
grant agreement (SOAG) that had been signed in August 2000, causing
significant delays during FY 2001.

Despite these setbacks The TB program made some important programmatic
accomplishments in FY 2001. Laboratory and computer equipment was
procured to strengthen Mexico\'s tuberculosis laboratory network and
information systems in the 13 priority states. To be distributed once
the new SOAG agreement is signed, this equipment will be used to improve
the quality of TB testing, to facilitate the quality assurance
certification process by the National Institute of Epidemiological
Reference for local laboratories, and to expand and improve the SSA\'s
computerized data system for TB monitoring surveillance and analysis.

## H. Country: LAC Regional

## **SO Title:** Protection of selected LAC parks and reserves important to conserve the Hemisphere\'s biological diversity {#so-title-protection-of-selected-lac-parks-and-reserves-important-to-conserve-the-hemispheres-biological-diversity .unnumbered}

**Discussion:** The largest program under this Latin America and
Caribbean strategic objective is the Parks in Peril (PiP) program, which
aims to ensure the protection of up to 37 critically-threatened LAC
national parks and reserves of global significance. This program is a
partnership among USAID, the Nature Conservancy, local non-governmental
organizations and local government agencies.

Overall this SO did not meet planned targets during the past year.
Because implementation at some PiP sites began later than expected and
some PiP implementing partners changed, the PiP program has been granted
a no-cost extension through FY 2002. End-of-SO targets are expected to
be met by September 2002. Future LAC Regional activities aimed at
conserving the regions biological resources will be reported under SO
598-022.

# V. Washington Strategic Objectives

## A. Operating Unit: Office of Agricultural and Food Security

## **SO Title:** Private sector business linkages support U.S. technology transfer in support of development objectives {#so-title-private-sector-business-linkages-support-u.s.-technology-transfer-in-support-of-development-objectives .unnumbered}

**Discussion:** The Office of Agricultural and Food Security involves
the U.S. business community in addressing the economic development
problems of USAID\'s partner countries. U.S. technology combined with an
entrepreneurial drive, competitive ability and the management acumen of
U.S. businesses has the potential to make significant contributions to
other countries\' economic development.

Despite a significant number of accomplishments and an increased number
of deals closed by the office this year compared to previous years, the
Global Technology Network (GTN) did not meet its goal of \$85 million in
deals in FY 2001.

**Action Taken:** GTN will continue to concentrate on technology
transfer, while a different trade initiative will focus on building the
capacity of firms to compete globally.

## B. Operating Unit: Office of Food for Peace (FFP)

## **SO Title:** Increased effectiveness of FFP\'s partners in carrying out Title II development activities with measurable results related to food security with a prim {#so-title-increased-effectiveness-of-ffps-partners-in-carrying-out-title-ii-development-activities-with-measurable-results-related-to-food-security-with-a-prim .unnumbered}

**Discussion:** This strategic objective of the Office of Food for Peace
aims to increase the effectiveness of Title II implementing partners in
achieving results in food security, with a focus on increasing
agricultural productivity and improving household nutrition.

During FY 2001, the Title II development programs showed a modest
increase in the percent of results achieved, from 55% in FY 2000 to 61%
in FY 2001. Results do not come close to the 90% target set by the SO2
Team at the inception of the SO, and thus the SO target was not met.

The challenge facing the Team and the Agency is to insure efficient
intra-agency coordination, and develop a performance reporting plan that
reports the contribution of the Title II development program to goals in
all three pillar bureaus, without overburdening the Team and its
partners with unrealistic reporting requirements. In addition, the FFP
Strategic Plan should address a process for establishing a more
competitive mechanism for the allocation of Title II development
resources, given the prospects for limited opportunities for growth in
the size of the program and the number of players in coming years.

**Action Taken:** The Team has recognized that the SO2 indicator of
percent of results achieved is an imperfect measure of performance, and
doesn\'t assist the Agency in telling the success stories of the Title
II development program. The Team will look at different performance
reporting strategies based on the objective of the FY 2003 - 2007
Strategic Plan.

One of the biggest difficulties the SO2 Team faced with the existing
Strategic Plan was implementing a reliable performance monitoring
system. Over the past five years, most of the performance indicators
originally identified have been dropped, either because they were not
sufficiently sensitive measures of improved effectiveness, capacity or
resource integration, or because a consistent, reliable source of
information was not available to quantify them. If the SO of the new
Strategic Plan is the same or similar to the existing SO - focusing on
improved partner capacity - the team will still face significant
challenges in implementing a performance reporting system.

## C. Operating Unit: Office of Agricultural and Food Security

## **SO Title:** Improved food availability, economic growth and conservation of natural resources through agricultural development {#so-title-improved-food-availability-economic-growth-and-conservation-of-natural-resources-through-agricultural-development .unnumbered}

**Discussion:** Under this objective, the Office of Agricultural and
Food Security pursues science- and technology-based solutions to
increased agricultural productivity, a critical element in alleviating
hunger, preserving the environment, enhancing trade and promoting
economic growth in order to reduce poverty and conflict. Agriculture
remains the backbone of economic growth in most developing countries and
provides the most employment opportunities and a chance to attain food
security.

The performance target of increases in per-capita food production for
all developing countries under this strategic objective was not met and
actually decreased slightly (0.49%) in 2001. This was due to increases
in population and a slow-down in the rate of increase in production. The
target for increased food production rose slightly (+1.04%) in 2001, but
the rate of performance was slower than in previous years.

**Action Taken:** Two varieties of \"miracle\" sorghum seed were
released in the Sahel during the period. These are resistant to striga,
one of Africa\'s biggest weed problems. Since sorghum is one of the most
widely grown cereal crops in the semi-arid zones of Africa, this advance
will favorably impact food supplies on the continent.