Economic growth translates into overall improvements in the economic and social well-being of people in developing countries. Growth also brings increased trade flows and opens markets to U.S. exports. Agriculture development is the engine for economic growth in many countries. Widespread increases in agricultural productivity not only result in larger food supplies but in increased rural incomes.
Efforts focus on achieving five objectives.
Improved access to financial and business development services, particularly to the microenterprises of the poor. Central programs also conduct research, training, and capacity-building activities to improve the quality of programming and routinely disseminate information on the best practices for microenterprise development. The operational research program and a comprehensive impact assessment project help to move the frontiers of microenterprise development forward. In FY 2001, the Agency did not request an appropriation to MSED activities. By continuing to offer a risk sharing guarantee program, banks are encouraged in partner countries to expand their small loan portfolios, while a complementary training program provides skills development for bankers and entrepreneurs for small-scale lending.