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Senate Committee Conducts Broad Overview of U.S. Foreign Assistance Programs

In a hearing that lasted well over eight hours on March 2, the Senate Foreign Relations Committee heard testimony from officials at the State Department and the U.S. Agency for International Development (USAID) on the FY2005 budget for foreign aid programs.

South Asia

Assistant Secretary of State for South Asian Affairs Christina Rocca highlighted a number of the State Department’s accomplishments and future programs in the region. She said that human rights programs would “combat trafficking in persons and child labor, while promoting women’s rights and religious freedom.” Bilateral economic programs would be intended to spur long-term growth and trade, but also help “ordinary” people gain access to better education, health care, and income-generating opportunities. With regard to the large Muslim population in the region, Ms. Rocca stated, “We are taking a regional Muslim women’s rights network to the next level, helping to establish ongoing collaboration across borders to gain acceptance of women’s rights under Islam, using successful models from Southeast Asia.”

Gordon West, Acting Assistant Administrator for Asia and the Near East (ANE) at USAID provided the committee with an overview of South Asia, Near East Asia, and East Asia and the Pacific. He warned that HIV/AIDS is a huge threat to the regions. “In Asia and the Near East, eight million people are HIV positive, and each year hundreds of thousands die from HIV/AIDS-related illnesses. This could increase substantially if the epidemic is allowed to spread from high-risk groups to the general populations in countries like India, China, Indonesia and Thailand,” he stated. Of particular interest to women, Mr. West noted, “Millions of girls and women in the ANE region are not allowed to pursue an education. The ANE bureau believes that education for all, regardless of gender or religion, is a key element to achieving democracy and economic prosperity, goals that contribute to stability.”

Referring to trafficking in persons as “one of today’s greatest human tragedies,” Mr. West estimated that up to a million women and children are trafficked annually. He explained that USAID and the State Department are working with a number of countries in South Asia to implement anti-trafficking programs.

Afghanistan

Ms. Rocca said that the FY2005 budget would include $1.2 billion for Afghanistan. Funding “will support women’s centers that provide health and legal services; will build hundreds of schools and clinics through Provincial Reconstruction Teams; will train teachers and provide schoolbooks; and will help farmers re-establish their livelihoods,” she stated.

Bangladesh

Mr. West noted that Bangladesh has made good progress in lowering infant and child mortality rates and increasing girls’ enrollment in schools. He said that USAID programs in FY2005 would continue to improve health, education, and economic development.

India

Ms. Rocca testified that the FY2005 request for India “will help complete successful economic reforms, support HIV/AIDS and child survival programs, and provide aid for [the] most vulnerable groups.”

Expressing the need for additional resources to combat HIV/AIDS, Mr. West pointed out that India has the second largest number of HIV-positive people in the world. He also noted that the HIV/AIDS epidemic is moving into the general populations of neighboring countries, Nepal and Indonesia.

Mr. West said that USAID programs in India would continue to advance U.S. national interests, including controlling population growth, combating infectious disease, improving development, alleviating poverty, reducing malnutrition, and improving the status of women.

Nepal

Referring to the Maoist insurgency in Nepal, Mr. West explained that USAID programs would aim to reduce the insurgency’s impact on the population, including reducing fertility and protecting the health of Nepalese families.

Pakistan

Ms. Rocca noted that Pakistan is “making good progress” and the economy has moved from crisis to stabilization. “The government continues to pursue education reforms, including for madrassahs [religious schools], aimed at preparing young Pakistanis to gain employment and compete in the global marketplace,” she stated. Ms. Rocca explained that the FY2005 budget would provide $300 million in economic assistance to Pakistan for “ongoing development programs for education, democracy and health that demonstrate our support to ordinary Pakistanis.”

Mr. West said USAID is working to improve primary education and health care services in Pakistan. “Improved and more accessible education will build the economy, counter extremism, and promote moderation among the population. USAID is also assisting the most vulnerable segments of society, including women, infants, and children, by providing access to health, including reproductive health services,” he stated. In addition, “USAID is working to reduce poverty and increase income and employment for the poor, especially women and young adults.” Mr. West explained that programs in Pakistan would assist microentrepreneurs to start and expand business by providing a source of credit in the poorest regions of the country.

Near East Asia

Morocco

“Morocco is a middle-income country with the human and social development of a low-income country,” stated Mr. West. He explained that approximately 48 percent of adults are illiterate, which places Morocco 20th among the 22 Arab League countries. He also noted, “Women are particularly affected, with a female illiteracy rate of 62%, and higher in rural areas.”

East Asia and Pacific

Testifying on behalf of the Bureau of East Asian and Pacific Affairs (EAP) at the State Department, Donald Keyser said that programs to combat human trafficking would be highlighted in FY2005. He stated, “We have requested $1 million in FY05 assistance for EAP’s Regional Women’s Account to support a regional approach to combat the scourge of trafficking in persons (TIP). As TIP is a problem that crosses and takes advantage of national borders, we must mobilize a regional effort to counter it. Funding will focus on empowering women through political participation, economic independence, and the elimination of violence against women.”

Cambodia

Referring to Cambodia’s corrupt legal and judicial system, Mr. Keyser said that U.S. assistance for judicial reform and anti-corruption would combat trafficking in persons, resolve human rights abuses, and improve international adoption procedures.

Mr. West said that the United States prime national interest in Cambodia is to reduce its vulnerability to international terrorism and international crime, such as the trafficking in persons. He explained that USAID’s health programs would “continue to increase the number of health centers that can deliver an integrated health package, ensuring links between HIV/AIDS and all other health programs. These health centers will provide services for maternal and child health, reproductive health, family planning, tuberculosis, HIV prevention, care and support, and community outreach.” Mr. West noted that the health programs also would focus on support for orphans and vulnerable children and the prevention of mother-to-child transmission of HIV.

Laos

Mr. West said that USAID programs in Laos would continue to combat the spread of HIV/AIDS. “Because Laos is surrounded by countries such as China, Thailand, and Vietnam, which have significant numbers of HIV infections, and given the level of international migration, it is very likely that the epidemic will continue to spread in Laos,” he stated.

The Philippines

Mr. West explained that the population of Mindanao lacks access to basic services, which leaves the region vulnerable to terrorism. He said that USAID has refocused its programs in the Philippines to provide more funding to the area and encourage economic development. Of particular interest to women, “Microfinance initiatives play a key role in supporting small-scale projects serving the needs of impoverished women.”

Vietnam

Noting that there are roughly one million children with disabilities in Vietnam, Mr. West said that USAID programs would “improve advocacy and policies for the disabled…and develop inclusive education models for children with disabilities to be included in the regularized school system.” He also said that USAID would implement an active HIV/AIDS program to contain the epidemic in Vietnam.

Western Hemisphere

Assistant Secretary of State for the Bureau of Western Hemisphere Affairs Roger Noriega highlighted the new Millennium Challenge Account (MCA). He stated, “The MCA will provide an important new source of financing for lower income countries that establish sound economic policies, invest in their people and demonstrate the political will to establish transparency in government and conform to the rule of law. This month the Millennium Challenge Corporation (MCC) will propose eligibility criteria for nations to participate, and in May the MCC will select a final list of countries to receive assistance.”

Adolfo Franco, Assistant Administrator for Latin America and the Caribbean (LAC) at USAID, summarized a number of threats to development in the region. “Maternal and neonatal mortality rates remain unacceptably high, and resistance to accessible medicines is on the rise. The LAC region has the second highest HIV/AIDS rate in the world, with over two million people living with HIV, including the estimated 200,000 that contracted the deadly virus in 2003…In education, nearly one-half of the children who enter primary school fail to make it to the fifth grade, and only about 30% graduate from secondary school. Access to education especially affects poor, rural, and indigenous children, particularly girls,” he stated.

Haiti

Mr. Noriega explained that Haiti is the country most affected by HIV/AIDS in the region, with a prevalence rate of 4.5 to 6 percent. He stated, “The U.S. is the largest bilateral donor for HIV/AIDS prevention and care in Haiti, using a public/private partnership to provide a comprehensive set of prevention and education activities to reduce the rate of new infections, as well as programs to provide care and support for those already infected or affected by the disease.”

Jamaica

Mr. Franco noted that complications from HIV/AIDS are the leading cause of death in men and women between 30 and 34 years of age in Jamaica.

Africa

Deputy Assistant Secretary of State for Africa Donald Yamamoto said that the HIV/AIDS crisis “affects Africa like no other region in the world today. Of the estimated 40 million people infected with HIV worldwide, more than 25 million live in Africa.” Summarizing the administration’s emergency plan for AIDS relief, he said that twelve of the fifteen focus countries are in Africa. Mr. Yamamoto also noted that the FY2005 budget would continue the Initiative to End Hunger in Africa and the Africa Education Initiative.

Europe

Assistant Secretary of State for Europe and Eurasia Beth Jones said that most countries of Southeast Europe and Eurasia remain poor. “Ten have a per capita GDP under $1,445, the World Bank cut-off for low-income countries. Unemployment remains a scourge in the Balkans, the Caucasus countries and most of Central Asia, with jobless rates (especially among youth) ranging from 20 to 30 percent, and in some cases much higher.” She also noted that HIV/AIDS is “poised to ravage” transition countries, particularly Russia, Ukraine, and the Baltic States.

Ms. Jones said that the United States has partnered with the European Bank for Reconstruction and Development to support micro and small business lending. “A U.S. government investment of $71.3 million, coupled with $600 million in capital from other donors has produced over 300,000 loans worth in excess of $2 billion for small and micro lending in 13 different countries. Repayment rates are averaging over 99 percent,” she stated.

With regard to combating trafficking in persons across Europe and Eurasia, Ms. Jones stated, “We have raised our funding levels for anti-TIP activities considerably over the past three fiscal years and we are hopeful that our assistance and diplomatic efforts in this area will help those countries of the region that face significant TIP problems to deal with them successfully.”

Kent Hill, Assistant Administrator for Europe and Eurasia at USAID, said that the underlying factors that give rise to TIP in the region include economic dislocation, a breakdown in traditional social structures, corruption, the absence or decline in personal values, the rise of international organized crime, disenfranchisement of women and ethnic minorities, regional conflicts, and the demand for legally unprotected, cheap labor in the sex trade.

Mr. Hill said that USAID is emphasizing work with small and medium enterprises “because they are the engine for economic growth and employment” in USAID-recipient countries. He noted that in Ukraine, over 11,000 women received business training, and of these, more than 3,000 started their own businesses.

Noting that the Caucasus countries and the Central Asian Republics have the highest under-five mortality rates in the region, Mr. Hill said that USAID programs would “emphasize child survival and maternal health interventions as well as family planning and reproductive health.”