*EPF116 03/24/2003
USAID's Chamberlin Details U.S. Assistance Programs to South Asia
(Says assistance is tied to government accountability and transparency) (1110)

By Afzal Khan
Washington File Special Correspondent

Washington -- The United States has undertaken "a radically new approach to foreign aid" in the wake of the September 11 terrorist attacks and new initiatives by the Bush Administration, says a senior official in the U.S. Agency for International Development (USAID).

USAID Assistant Administrator for the Bureau for South Asia and the Near East Wendy Chamberlin outlined U.S. development approaches to South Asia before the Subcommittee on Asia and the Pacific of the House International Relations Committee on 20 March.

Chamberlin said the Bush administration's Millennium Challenge Account (MCA) articulates "a fresh and practical policy framework for development" because it is built on the simple fact that "U.S. aid is most effective in situations where governments are democratic and accountable to their citizens."

On March 14, 2002 President Bush announced that the United States will increase its core assistance to developing countries by 50 percent over three 3 years, resulting in a $5 billion annual increase over current levels by FY 2006. This increased assistance will go to a new Millennium Challenge Account (MCA) that funds initiatives to improve the economies and standards of living in qualified developing countries. The goal of the MCA is to reward sound policy decisions that support economic growth and reduce poverty.

Chamberlin said another welcome initiative is the Middle East Partnership Initiative (MEPI), which emphasizes democracy, trade and education in the Middle East. She described the Middle East as a region that is "desperately in need of all those things."

Chamberlain said that although the countries of South Asia are not eligible for MEPI, the Asia and Near East Bureau of USAID "is dedicated to applying the principles of the MEPI and MCA to U.S. programs in South Asia."

She said the U.S. government is working with the governments and peoples of the region to enable them to eventually meet the high standards of MCA regarding good governance and economic openness.

Echoing earlier Bush administration statements that "America is now threatened less by conquering states than by failing ones," Chamberlain said that the United States must use all influences available "to strengthen just governance, encourage investment in people, and assure economic freedom" in the countries of South Asia. In that connection, she provided an overview of U.S projects in South Asia.

Pakistan

Chamberlin, who was U.S. ambassador to Pakistan 2001-02, said USAID opened a field mission in June 2002 after a 12-year interruption following the imposition of U.S. sanctions in 1990. Now there are seven USAID officials in the mission to manage the assistance programs amounting to hundreds of millions of dollars. She the FY-04 program seeks $200 million for programs related to the Economic Support Fund (ESF) and $75 million in Development Assistance (DA) that includes $25 million for Child Survival and Health.

The highest priority is being given to education and USAID programs are boosting teacher training in both public and private schools. Funds are being provided to improve curricula, support adult and youth literacy programs while encouraging community involvement in local schools, Chamberlin said.

Of particular concern is the reform of madrasas or religious schools that have espoused extremism and spawned fundamentalist movements such as the Taliban. About $100 million have been allocated to fund alternative curricula that would promote secular education in those schools. However, Chamberlin cautioned that it would take time to set up "a good public school system" with a modern curriculum to counterbalance the madrasas. The illiteracy rate in Pakistan is 53 percent and nearly 40 percent of young people between the ages of 15 and 20 are unemployed, Chamberlin said.

Sri Lanka

Chamberlin called Sri Lanka "a success story" following "a promising ceasefire and peace process" there between the government and rebels belonging to the minority Tamil ethnic group who have been fighting for decades to form an independent homeland in the northeastern tip of the island.

She said USAID's FY-04 budget request of $19.5 million for Sri Lanka targets three main areas with specific allocation percentages:

-- Enhancing the country's competitiveness in global markets (37 percent);

-- Building constituencies for peace through transition initiatives (31 percent):

-- Democracy and governance reform (23 percent);

-- Humanitarian assistance (9 percent).

Nepal

While continuing to be "a trouble spot" with active opposition to the government by Maoist rebels, the situation now in Nepal "is more hopeful" than it has been in over a year, Chamberlin said. "It is our greatest challenge to meet the immediate needs of those communities most affected by the conflict" without losing sight of the Nepalese government's needs through successive stages in the ongoing peace process with the Maoist rebels, Chamberlin said.

USAID emphasizes programs in the health sector and economic uplift projects to combat the poverty and feelings of disenfranchisement that facilitated the six-year-old insurgency, Chamberlin said.

USAID in the current fiscal year plans to $31.7 million in DA and $6 million in ESF for Nepal.

Bangladesh

Chamberlin praised Bangladesh as "one of a handful of moderate, democratic Islamic nations in the world today" which has been an ally in U.S. efforts to combat global terrorism.

Although Bangladesh exceeded USAID's targets for economic growth in FY-03, the country remains plagued by poor governance and corruption, Chamberlin said. USAID programs in Bangladesh are aimed at policy reform, promotion of democracy and combating the spread of HIV/AIDS.

Chamberlin said it was encouraging to note that Transparency International Bangladesh (TIB) with three years of USAID support has become a regional leader in coordinating the 2002 household corruption survey not only for Bangladesh but also for four other South Asian countries.

In FY-03, USAID plans to spend $57.2 million in DA, $7 million in ESF, and $45 million in food assistance funds for Bangladesh.

India

Chamberlin said India is "a vital and key ally" that is a bulwark for "stability in the region." However, that country faces severe health challenges with over 4 million people infected with HIV/AIDS, polio re-emerging in the north of the country, and continuing cases of tuberculosis. Chamberlin said USAID has ongoing programs in the health sector to address these diseases. Already, an USAID program in the southern state of Tamil Nadu has "successfully tempered" the growth of HIV/AIDS to the extent of serving as a model for other states in India, Chamberlin said.

In FY-03, USAID plans to spend $75.2 million in DA, $25 million in ESF and $91.3 million in food assistance funds for India.

(The Washington File is a product of the Office of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)

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