*EPF409 05/15/2003
Text: USAID Delivers Humanitarian Relief, Rebuilds Infrastructure in Iraq
(Assistant Administrator Wendy Chamberlin's congressional testimony May 15) (4660)

A senior official in the U.S. Agency for International Development (USAID) says the U.S government is engaged with humanitarian groups and U.S. private companies to deliver humanitarian relief and reconstruction assistance to Iraq while helping the country establish a representative form of self-government.

USAID Assistant Administrator for Asia and Near East Wendy Chamberlin testified before the Committee on International Relations of the House of Representatives in Washington May 15.

She said that nearly 300,000 metric tons of U.S.-produced food have been shipped or are en route to Iraq, where all the 25.5 million people are at least partially dependent on food rations. Chamberlin said USAID has provided funds to the World Food Program to purchase commodities in the region, bringing the total of U.S. food aid to Iraq to more than 600,000 metric tons.

Other USAID initiatives:

-- transition initiatives: citizen participation in grass roots community projects bridging ethnic divisions; garbage collection; providing office supplies to looted government ministries; rehabilitating schools; organizing sports and recreational activities for youths.

-- abuse prevention units: prevent political and ethnic retribution, property confiscation and other human rights abuses; develop public information campaigns to promote tolerance, justice and respect for rule of law; investigate mass graves and human rights abuses.

-- restoration of critical infrastructure: electrical power generation; potable water systems; waste water treatment facilities; seaports; airports. The U.S. heavy construction company, Bechtel, is playing a major role in many infrastructure projects in Iraq, Chamberlin said.

-- health care: medical supplies for urgent health care are in adequate supply but medicines for chronic diseases such as diabetes and heart disease are in short supply, Chamberlin said.

"The key challenge for assistance providers is the distribution of these medicines throughout the country in light of current security concerns. USAID's objectives are to meet urgent health needs as well as to normalize health services rapidly," Chamberlin said.

-- education:

USAID is working to get as many children into school as possible by the start of the school year on October 1 and keep those children in school by improving academic quality and services.

"By August, we hope to have classroom materials for 2.1 million children distributed and a sufficient number of teachers trained. We have funded UNICEF and our American private sector partner, Creative Associates, to help us achieve these objectives," Chamberlin said.

-- expanding economic opportunities:

The U.S. Treasury is helping Iraq's Finance Ministry with budget planning, tax policy and other reforms to develop a transparent and accountable fiscal system.

USAID is helping Iraq establish a market-friendly legal system with guidance on strengthening property rights and corporate and contract law. USAID is helping Iraqi farmers, rural enterprises and the government use modern agricultural technology to attract investment and enhance profitability.

-- improving the efficiency and accountability of government:

USAID is working with a private sector partner, Research Triangle Institute, to support Iraqi-led efforts to restore local government structures and processes.

"[C]orruption is rampant at all levels. Municipal councils have been in existence in administrative subdivisions but they served more as a means by which to gain greater support for the Ba'ath Party and ensure loyalty to the regime. Furthermore, women have played very limited roles in government leadership positions," Chamberlin said.

Chamberlin said President Bush's $2.45 billion supplemental budget for Iraq provides sufficient resources to restore Iraq's infrastructure and systems until Iraq generates enough revenue from its oil industry to fund its government services.

She said the U.S. government needs cooperation with private sector companies, aid groups and the international community to succeed in the effort to rehabilitate Iraq.

Following is the text of Chamberlin's prepared testimony:

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Committee on International Relations
U.S. House of Representatives
Washington, D.C. 20515-0128

USAID Assistant Administrator for Asia and Near East
Ambassador Wendy Chamberlin

Testimony before the House International Relations Committee

U.S. Policy Toward Iraq
May 15, 2003

Mr. Chairman, thank you for the opportunity to testify today on U.S. policy toward Iraq. As has been discussed in the testimonies of Undersecretaries Feith and Larson, the United States has clear objectives in Iraq, including the elimination of weapons of mass destruction, driving out terrorists sheltered in Iraq, and securing Iraqi's oil fields and natural resources for the Iraqi people. There are two other critical objectives that shape our policy toward Iraq that USAID is suited to support: 1) delivering immediate humanitarian relief and reconstruction assistance and 2) helping the Iraqi people to create the conditions for a rapid transition to a representative self-government that does not threaten its neighbors and is committed to the territorial integrity of Iraq.

With the President's official announcement on May 1 that combat operations in Iraq had ended, the U.S. Government's reconstruction phase began. Today, the President, the Congress and U.S. taxpayer can be proud of the United States' significant contributions to improving the lives of millions of Iraqis by removing the oppressive regime of Saddam Hussein.

As you are aware, contingency planning for reconstruction began months ago. USAID participated in an interagency working group to examine appropriate responses to different disarmament scenarios in Iraq. USAID developed contingency plans for a simultaneous reconstruction and humanitarian relief effort. This is an unprecedented undertaking. We want to ensure that Iraqis' basic needs are not only met, but that they see tangible improvements in their lives and communities very quickly, given the years of oppression and neglect they have suffered. I would like to share with you actions we have taken to date and intend to soon implement.

HUMANITARIAN RELIEF

USAID's Office of Foreign Disaster Assistance (OFDA) stockpiled emergency relief supplies including water tanks, hygiene kits, health kits, plastic sheeting, and blankets. OFDA funded international agencies to coordinate their programs and preposition relief supplies. This included support to the World Food Program (WFP) for food distribution and UNICEF for water, sanitation, and health. OFDA also funded six U.S. NGOs (CARE, International Medical Corps (IMC), International Refugee Committee (IRC), Mercy Corps, Save the Children, and World Vision) to allow them to work with us on a humanitarian response. As a result of the preplanning USAID and partners are now responding rapidly and flexibly to the Iraqi people's humanitarian needs as they are identified.

The DART, staffed at more than 60 persons, the majority of whom are now deployed in Iraq, is the largest such team outside of search and rescue efforts in U.S. history. Teams based in Baghdad, Basrah, and Arbil are traveling throughout the country as security conditions permit to identify immediate humanitarian needs and mobilize urgent aid.

For example, OFDA mobilized CARE in Ar Rutbah; Save the Children in Basrah; and Mercy Corps in Arbil to address urgent repairs to water and sanitation facilities caused by war, ethnic conflict and looting. OFDA supports urgent health care aid deliveries by CARE in Baghdad; Save the Children in Mosul; IMC in Basrah, Al Nasiriyah, Maysan, and Wasit; and World Vision in Ar Rutbah. Health and hygiene kits, blankets, water containers, and plastic sheeting that OFDA pre-positioned prior to the war have been distributed to vulnerable populations in Baghdad, Basrah, Nasiriyah, Samawah, Umm Qasr, and Arbil. Through these timely humanitarian interventions, USAID is providing clean water and restocking medicines looted from hospitals.

Food

The entire Iraqi population, 25.5 million people, continues to be at least partially dependent on food rations. Of these, 16 million people rely entirely on basic food staples provided through the Public Distribution System (PDS). Before the war, the PDS was managed by the Ministry of Trade (MOT), using food procured via the U.N. Oil-for-Food (OFF) program. At the onset of the war, the WFP issued an appeal for 1.6 million metric tons of food for Iraq. Currently they are acting as the intermediary until the MOT is again able to assume its distribution and management role. WFP plans to expand its operation to include six full months of implementing the PDS food distribution with a 2.4 million metric ton requirement. The U.S. is the largest contributor to this effort.

USAID's Office of Food for Peace (FFP) is providing the WFP commodities through the Bill Emerson Humanitarian Trust and through P.L. 480 Title II emergency food assistance, to be distributed to Iraqis requiring food assistance. The total amount of U.S.-produced food already in the region or en route amounts to nearly 300,000 metric tons. USAID provided funds to WFP to purchase commodities in the region, which will put a grand total of over 600,000 metric tons of food into the pipeline. The local procurement was necessary to address Iraq's immediate food needs during the first months of distribution when the OFF pipeline was disrupted. Title II commodities coming directly from the U.S. could not have reached Iraq in time to be of immediate assistance.

USAID staff in Iraq and the region are working with WFP and the Ministry of Trade to re-establish the PDS system, as this is the most efficient means to ensure that the nutritional needs of the Iraq people are met.

TRANSITION INITIATIVES

USAID's Office of Transition Initiatives (OTI) has funded small grants in various communities in permissive areas of Iraq. These quick action grants are to provide flexible and immediate assistance to meet urgent community needs; to repair community confidence by encouraging local cooperation in the distribution of these small grants; to work across ethnic groups in grass roots projects; to increase citizen participation in decision-making, and to rapidly respond to small infrastructure repair. For example, at the request of legitimate local leaders in the poorest area of Baghdad, OTI funded garbage collection. OTI is supporting immediate provision of office supplies to government Ministries that were badly looted and damaged. In the south of Iraq, OTI awarded grants, based on community priorities, to establish a functional office for a town council, rehabilitate a secondary school, and increase sports and recreational activities for youth.

Abuse Prevention Units

Political and ethnic retribution, property confiscation and other human rights abuses immediately following hostilities aggravate suffering and retard reconstruction. In anticipation of such abuse, USAID established Abuse Prevention Units to identify, track, and report acts of retribution, and help coordinate the U.S. Government response to prevent or mitigate such acts. Today, USAID Protection Officers operate throughout Iraq to pass relevant information about alleged incidents and potential flashpoints to ORHA, other civilian agencies, and Coalition forces. In the regions where they operate, the Unit is the point of contact on these matters with the International Committee of the Red Cross (ICRC), United Nations agencies, and NGOs. In addition, the Abuse Prevention Unit develops public information campaigns to promote tolerance, justice, and respect for the rule of law. It trained hundreds of Civil Affairs Officers in protection principles before their deployment to the Gulf; developed and distributed a field guide on preventing and mitigating abuses; helped create a protection information network; and advised ORHA on projects to address violence in communities. The Unit has investigated mass graves, looked into property issues, and investigated human rights issues in Kirkuk, the Basrah region, Karbala and Najaf.

RECONSTRUCTION

USAID is actively delivering reconstruction assistance in four primary sectors: 1) physical infrastructure; 2) education, health, and other social services; 3) economy; and 4) local government. In order to implement this ambitious program, USAID has enlisted the extensive expertise of the American private sector through the award of eight contracts to date. We tapped the expertise of United Nation Agencies already working in Iraq through grants to UNICEF and WHO. Grants to NGOs should be announced within the next couple of weeks. While USAID is meeting immediate reconstruction requirements, we are also conducting on-the-ground determinations of needs in our primary sectors that will guide future reconstruction activities.

Restoring Economically- Critical Infrastructure

Prior to the war, USAID developed contingency plans to address on an urgent basis damage to physical infrastructure caused by war related incidents including looting and years of neglect by the Saddam regime. Early targets for immediate repair are critical electric power systems, potable water and wastewater treatment facilities. From day one of the post war period, USAID's private sector partner Bechtel, deployed experts to simultaneously develop a prioritized work plan and begin urgent work. Security remains the single biggest obstacle to rapid reconstruction. Stability is not possible if schools are not open and health care is not provided.

Seaport

A major USAID priority is the port of Umm Qasr, which is the country's primary deep-water port of entry for humanitarian relief and reconstruction assistance, including food. Our goals for August are to ensure that three berths are functional, 50,000 ton ships can unload, and ships can be unloaded in five days rather than the present 14. USAID is well on its way to meeting that goal. One of Bechtel's first jobs was to engage the Great Lakes company from Chicago to dredge the port of Umm Qasr of accumulated silt. The dredge produced mud equal to three football fields, one story deep, yesterday and is actually producing this amount everyday. Bechtel divers are also going beneath the surface to determine how to remove shipwrecks that block berths so that humanitarian ships can dock unimpeded. In addition, USAID's private sector experts are currently making immediate repairs to silos and associated equipment to permit imports of 60,000 MT bulk grain at a time. In the weeks leading up to the beginning of the reconstruction period, U.S. and British military personnel removed 200 unexploded objects from the channel. In collaboration with WFP, approximately 1,500 tons of supplies are being offloaded each day. Our private sector partner, Stevedoring Services of America (SSA), will assume full operation of the port from the British coalition forces by May 23. SSA will direct the local work force, manage the offloading of humanitarian shipments, storage and movement of supplies needed throughout the country.

Airports

USAID was tasked to manage the rehabilitation of Baghdad, Basrah and Mosul airports and reestablish management with Iraqi personnel. Efficient airport functioning is urgently needed to assure flow of humanitarian and reconstruction supplies and to facilitate economic prosperity. The Basrah airport, for example, had no scheduled service since 1991. To bring the country back into the community of nations, this isolation has to cease. In the past two weeks USAID's private sector partner, SkyLinkUSA, has completed its evaluation of Basrah International Airport. Findings indicate that the basic infrastructure is in good condition and appears to be well-constructed. However, technology components and the power supply are in quite poor condition and will require substantial work before the airport can return to international standards and support significant humanitarian shipments. Further work is required to develop airport air traffic control and management needs. An evaluation of Baghdad International Airport should be completed by May 30.

Infrastructure Reconstruction

USAID anticipated the critical importance of power and electricity to security needs in Iraq as well as to the proper functioning of hospitals, wastewater facilities, and other infrastructure. Quite simply, economic reactivation depends on available electricity. USAID's goal in its contingency plans was, by August, to establish a reliable supply of electricity to 40 percent of previously serviced populations in permissive security areas. This goal is being met. The power situation is both encouraging and challenging. Two weeks into the reconstruction effort, our experts report an excess power in the north and south regions. In fact, residential customers in both the north and south have more electric service today than they have had since 1991. In Basrah, Iraq's second largest city, continuous 24-hour electric service has returned for the first time in 12 years.

The bad news is that Baghdad still experiences shortages for a variety of reasons. Baghdad is unable to import excess electricity from the north or south on its trunk line, the 400 KV transmission system. USAID's private sector partner Bechtel, is developing a solution to fix this inability. At the same time we are currently funding through our contracts essential repairs to power plants and substations in the Baghdad and Basra regions. Although we are very early in the process, we can already report progress.

Another obstacle to full power generation is the dependence on crude oil for the production of fuel for the power plants. Most Iraqi power plants are run on natural gas, diesel, and bunker oil. With UN Sanctions still in place, Iraq is not able to produce enough refined oil products, such as diesel and residual oil, to provide the necessary fuel for power stations. This shortage of refined product, along with decreased production of natural gas from Iraq's gas fields, has reduced electric production by approximately 700 MW.

Another critical infrastructure project USAID and Bechtel are currently working on is the bridge near Mosul that is vital for humanitarian assistance and fuel transportation.

We recognize that significant work is still required. We continue to work intensely to restore high-voltage electrical power lines in southern Iraq that will eventually supply power to Baghdad and elsewhere; and our engineers are rapidly surveying water and waste water treatment facilities; roads and bridges; railroad infrastructure; irrigation systems; and local government buildings for potential repair.

Support Essential Education, Health, and other Social Services

USAID's second primary objective is to support essential social services, especially health and education.

Health

Since 1991, almost one-third of all children in the south and center of Iraq have suffered from malnutrition, and the child mortality rate doubled from the decade before. Diarrhea and acute respiratory infections accounted for 70 percent of childhood deaths. This was aggravated by inadequate potable water supply and sanitary services and a high incidence of low birth weight infants and low exclusive breastfeeding rates. In addition, government investment in managerial and technical expertise of staff and maintenance of health infrastructure was poor.

Initial evaluations of the health sector today show that health services have been disrupted and equipment, medicines, and supplies have been looted from some health facilities and warehouses. No major outbreaks of communicable diseases have been reported so far, but the potential exists since the public health system and immunization programs have been disrupted. While there appear to be adequate donated and pre-positioned medical supplies in Iraq for urgent health requirements, medicines for some chronic diseases, e.g., diabetes and heart disease, are in short supply. The key challenge for assistance providers is the distribution of these medicines throughout the country in light of current security concerns.

USAID's objectives are to meet urgent health needs as well as to normalize health services rapidly. As a complement to the relief efforts undertaken by OFDA and State/PRM, USAID is also supporting UNICEF and WHO as well as the American private sector expertise provided by Abt Associates, in an effort to address health sector requirements. USAID funded UNICEF to purchase a 100-day supply of chlorine for treating water in southern Iraq, thus helping to prevent outbreaks of communicable diseases. UNICEF has also provided medicines that help prevent visceral leishmaniasis, and its water team is sending an average of 50 tankers per day of clean water to Iraq from Kuwait. To treat children with diarrhea, UNICEF has delivered oral re-hydration salts. An extra 200,000 packets are being rushed to the region to deal the possibility of cholera.

WHO staff in the field have set up a surveillance system to monitor cholera outbreaks. They are currently conducting a survey of diarrhea cases in other hospitals, and have established an outbreak committee that is implementing control measures using pre-positioned supplies.



We recognize that these interventions need to be maintained to ensure that a humanitarian crisis continues to be averted.

Education

The quality of education in Iraq has decreased significantly over the years, with Iraq going from one of the best educational systems in the Arab world to a much less capable one. Insufficient resources have gone into maintaining and repairing school buildings, updating and printing textbooks, purchasing and distributing school equipment and supplies, training teachers, and maintaining and upgrading the skills of school administrators. Added to these challenges has been the looting of educational facilities.

Pre-conflict statistics indicate primary enrollment was only approximately 76.3 percent and 20-33 percent for secondary school. Twice as many girls are not attending school as boys. Nearly 2 million children and adolescents have dropped out of school, and there are limited opportunities to re-integrate them into formal schooling or help them acquire life skills. Those who stay through secondary school often lack sufficient skills for the labor market. Compounding this is a shortage of buildings and teachers. Approximately 35 percent of all schools are on double or triple shifts, and many children only receive three hours of instruction per day.

Our objective is to get as many children as possible in the classroom by the start of the new school year on October 1 and keep those children in school by improving the academic quality and services in the classroom. By August, we hope to have classroom materials for 2.1 million children distributed and a sufficient number of teachers trained. We have funded UNICEF and our American private sector partner, Creative Associates, to help us achieve these objectives. Through a timely "back to school" campaign, many students returned to school on May 3. UNICEF has already delivered 1,500 kits, benefiting 120,000 students, to Baghdad during the month of May. Additional school kits are being procured by Creative Associates for one million students and 28,000 teachers. Renovation of a targeted 700 schools near Basrah has already begun.

USAID is laying a solid foundation to ensure that schools are open and classrooms are filled by the start of the new school year; however, significant additional work is still required in this sector if Iraq is able to provide education of a quality level required for economic reintegration into the world community. In addition to ensuring the necessary rehabilitation of school facilities and the delivery of appropriate equipment, material, and supplies, USAID is prepared to support Iraqi experts to help the Ministry of Education undertake necessary reforms and ensure that there are sufficient numbers of qualified teachers in the classroom.

Expanding Economic Opportunities

USAID is working closely with the U.S. Treasury, which has the lead on these issues, to help build Iraqi Ministry of Finance expertise in macro-economic policy analysis, budget planning, and inter-governmental fiscal relations. Support will also address tax policy reform and administration, including customs administration and the establishment of transparent and accountable fiscal systems. At ORHA and Treasury request, USAID will provide technical expertise to the Central Bank so it can issue and manage domestic currency, undertake bank supervision and licensing, and promote a competitive financial system through proper regulatory procedures.

To establish a market-friendly legal and regulatory environment, USAID will help strengthen property rights-related legislation, corporate and contract law, and the appropriate framework for competition law. We will work with the Ministries of Finance and Trade to develop policies that foster robust trade. In promoting private participation in the economy, USAID activities will extend credit to small and micro businesses through local lending institutions and a micro-credit lending facility.

USAID assistance will help farmers, rural enterprises and the government use modern agricultural technology to attract investment and enhance profitability and competitiveness. The program will support the development of policies, laws and regulations needed to establish a market-based food distribution system. USAID will also address improved management of soil and water resources.

Improving Efficiency and Accountability of Government

Iraq comprises 18 governorates in a country the size of California, with 75% of the population living in urban centers. Over the past decade, Iraq has had two radically different governance structures in place: the autonomous Kurdish government in the North and a highly centralized territory comprising the rest of the country. In the latter, all senior leadership, from governors to mayors to sub-district officers, were appointed for the purpose of maintaining security and controlling the population. The central government, in allocating resources to local governments, favored certain regions over others, resulting in uneven development across the country. In addition, corruption is rampant at all levels. Municipal councils have been in existence in administrative subdivisions but they served more as a means by which to gain greater support for the Ba'ath Party and ensure loyalty to the regime. Furthermore, women have played very limited roles in government leadership positions.

Given the past and the severe constraints on freedom of assembly and freedom of expression, Iraqi citizens lack the foundation for civic engagement. There are very few civil society organizations that effectively represent citizens' interests and are in a position to advocate or work with government to meet the needs of the populace. Nonetheless, a fairly functional bureaucracy exists that, if directed by appropriate technocrats, can contribute significantly to the reconstruction of the country.

USAID has enlisted the expertise of private sector partner, Research Triangle Institute, to facilitate and support Iraqi-led efforts to restore local administrative structures and processes. Already, USAID's local governance teams have visited 12 of the 18 governorates -- from cities in the south of Iraq, to Baghdad, and as far north as Al Hilla -- consulting and coordinating with city officials and association members on participatory governance structures, accountability of public officials, and transparency requirements in official actions. Currently, a team is actively exploring appropriate models for increasing citizen input into a Baghdad municipal council. USAID is coordinating its assistance closely with elements of coalition forces to undertake important local development projects, such as repairing a school, orphanage, maternity hospital and government facility in An Nasiriyah.

Implementation Factors

Security

It is important to emphasize that USAID can only deliver assistance effectively in areas where security is sufficient to permit assistance workers to operate. The United States is actively working to ensure that the security environment is such that aid can be delivered effectively.





Resources

The generosity of the U.S. Congress and taxpayer has allowed USAID to undertake critical assistance to date. The President's $2.45 billion supplemental budget for Iraq provides sufficient resources to bring Iraqi infrastructure and systems into working order before Iraqis' own revenue from its oil industry are available to fund government services.

Iraqi Participation

In the past two short weeks, Iraqis have been fully involved in our implementation efforts, and USAID's reconstruction objectives cannot be achieved without their full participation and leadership. It is also critical that Iraqis receive compensation for their work. Many dedicated Iraqi people are returning to their jobs and making a significant contribution to the reconstruction of their communities. We are already seeing emerging leadership.

Partnerships

The United States Government could not achieve its objectives without the efforts of the private sector, NGOs, and international community. We are actively working with other donors to identify priority needs for assistance. Other donors have generously provided support for Iraq, particularly with respect to humanitarian relief efforts. We will continue to engage other donors to meet the significant reconstruction requirements in Iraq.

In closing, I would like to join the millions of American people who are proud of the contributions and sacrifices our dedicated serviceman have made in the liberation of Iraq. I would like to also note that as we enter the reconstruction period, America is served by a second set of heroes. They are the courageous individuals from the private sector and non-governmental community who are the backbone of our "war for peace". They risk their lives daily to support USAID efforts in Iraq, Afghanistan and other insecure areas. The bombings earlier this week in Riyadh and the death of two Department of Defense contractors in Kuwait prior to the war demonstrate the inherent risks of this work and the vital importance of continuing it.

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(Distributed by the Bureau of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)

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