STATEMENT OF MARK S. WARD
SENIOR DEPUTY ASSISTANT ADMINISTRATOR
FOR THE ASIA BUREAU
U.S. AGENCY FOR INTERNATIONAL DEVELOPMENT
BEFORE THE
HOUSE COMMITTEE ON FOREIGN AFFAIRS
SUBCOMMITTEE ON THE MIDDLE EAST AND SOUTH ASIA
US Assistance to South
Asia: Is there a strategy to go with all that money?
May 14,
2008
Chairman Ackerman, Ranking Member Pence, other distinguished
members of the committee, thank you for the invitation to participate in
today’s hearing. I appreciate the opportunity to share with the Subcommittee
the perspective of the U.S. Agency for International Development (USAID) on U.S. assistance to countries in South Asia. I am
eager to discuss our work in South Asia as I
have spent a significant portion of my Foreign Service career in the region.
USAID’s long-term strategy in South Asia
is to strengthen the governments’ abilities to provide basic human services and
economic opportunity to their booming populations. More specifically, our priorities are to: support
the stabilization, democratization and economic growth in Afghanistan and
Pakistan; promote stability in Nepal and Sri Lanka; spur rapid job creation and
deliver essential human services in India, Bangladesh and Nepal; support
disaster preparedness throughout the region; and reinforce energy, trade and
market reform.
The 2009 base and 2009 bridge supplemental requests represent
an integration of these priorities and a coordinated effort both within USAID
and with related agencies to maximize the impact of our foreign
assistance.
Addressing Regional Challenges
USAID’s Asia Bureau receives a significant amount of appropriated
funds for its programs in South Asia,
reflecting the USG’s strong commitment to the people and governments in the
region. Our funding levels reflect the USG’s foreign policy priorities;
concentrating on Afghanistan
and Pakistan—key
programs for maintaining regional stability and addressing the war on terrorism.
The funding request for South Asia is $1.4
billion in FY 2009 base funding and an additional $820 million in bridge
supplemental funding for Afghanistan
and Pakistan.
Reflecting
national security priorities, Afghanistan
remains a central focus of USAID activities, with an FY 2009 base request level of $771
million in Economic Support Funds (ESF) and Child Survival and Health (CSH), Public
Law 480 non-emergency food aid, as well as an FY 2009 bridge supplemental
request level of $750 million in ESF. USAID programs continue to focus on
priorities such as infrastructure, sub-national governance, agriculture, including
alternatives to poppy, and improving access to health and education, and the
quality of both. The most significant changes
to Afghanistan's FY 2009 base and supplemental requests include an increase in
support for nationwide elections, an increase for improving local governance
through our Provincial Reconstruction Team (PRT) program, and an increase for
higher education so we can help prepare out-of-work youth for the job market.
We face a number of challenges in Pakistan, especially
on the border region with Afghanistan. Despite significant challenges, USAID has
started implementing many new activities in the Federally Administered Tribal
Areas (FATA) in maternal and child health, education, job creation, and good
governance. Our strategy for FATA is
twofold. First, it focuses on building
the capacity of the local government structures so that they can provide better
services to the people. Second, we also
have projects to demonstrate to the residents of FATA that their lives are
getting better – depending on the priority needs identified by the people. In some communities this will mean a new
road, a well or an irrigation canal. In
all communities, this will mean people having a stake in their future
development for the first time.
The FY 2009 base request of $481 million in CSH and ESF, and
the FY 2009 Supplemental request of $70 million will allow USAID to expand
programs in areas where we have not operated in recent years, such as the Swat Valley in the North of Pakistan. The overall FY 2009 request for Pakistan includes
$150 million for the tribal areas, the third year in a five year $750 million
initiative, to complement the Pakistani contribution of $1 billion over nine
years towards the total $2 billion FATA Sustainable Development Plan.
In India, more than 50 years of U.S. assistance has helped India make tremendous gains. India has also emerged as a donor country, for Afghanistan and Sudan. USAID is working with the government, the
private sector and other donors to leverage approximately five dollars for
every dollar of U.S.
assistance. For example, QUEST has leveraged almost $3 million in cash and
in-kind contributions to link learning with livelihoods for India’s youth. Through such alliances, the United States and India
are committed to working in partnership to reach India’s development goal of halving
poverty by 2015. USAID will also focus
on the poorest and most underserved segments of the population in order to
combat poverty and the conditions that promote extremism.
The FY
2009 request of $74 million is lower than FY 2008 level. USAID is phasing out
programs in which India
has achieved significant capacity and where the private sector can contribute,
such as economic growth and education, while continuing programs meeting
serious social needs, such as maternal-child health.
Nepal is in the process of forming a new
government. However, implementation of the peace agreement and restoration of
representative government in rural areas remain significant challenges.
Sustainable peace and lasting democracy also hinge on economic and social
recovery in the countryside. Economic opportunities and local government
services need to be expanded in order to restore public faith in government.
The USG is
waiting to see how the new government forms before committing to a strategy of engagement
with it. We would like to work with
other donors to support Nepal’s
transition to peace, build a strong and representative government, establish
the rule of law, end human rights abuses and address social inequality and
poverty. The FY 2009
request of $12 million is less than the FY 2008 level. However, several
strategic shifts have occurred to best position us to support the peace
process. This will mean a relative shift
in focus from health in favor of efforts to create greater economic opportunity
for the poor, particularly youth, as well as a significant increase for
democracy and governance activities.
In Sri Lanka,
the USG remains
committed to bilateral assistance despite the escalating conflict and
deteriorating security situation. Given these realities, USAID has reassessed
its priorities and has developed a new strategy to deliver assistance to the conflict-affected
population.
More than
before, programs will focus on regional needs while also working at a national
level on some of the most critical democracy, governance and conflict
mitigation issues. The new economic growth/workforce development and
democracy/governance programs will address economic disparities by expanding
economic and democracy-building activity in the conflict-affected East Province
as well as the poorest districts on the border with the North Province,
the current theater of military conflict.
USAID’s FY
2009 request of $4 million for Sri
Lanka is $1.2 million lower than the enacted
FY 2008 level. The decrease is due in part to the completion of several tsunami
reconstruction programs, and also signals our concern with human rights abuses
in the country.
Bangladesh’s FY 2009 budget request realigns resources to best
promote peace and security by strengthening democratic governance and tackling
the underlying social, demographic and economic factors that make Bangladesh
vulnerable to violent extremism. The request also places resources where the United States
has a comparative advantage over other donors or meets an otherwise urgent and
unfunded need, particularly with respect to democracy and governance, health,
education, disaster management, food security, and economic growth.
The
overall FY 2009 request of $100.6 million is an increase over the FY 2008 $97
million base level. A decrease in maternal
and child health needs created an opportunity to reduce CSH funds by about $7
million and increase funding for further good governance reforms that build
upon positive steps taken by Bangladesh’s 2007 caretaker government.
Doing Business Differently
In South Asia, USAID is adapting
to a new style of doing business. There
are several examples. USAID is committed to continually increasing the use of local
contractors in all of our missions, but most importantly in Afghanistan and Pakistan. During her recent visit to Afghanistan, our new Administrator
stressed the importance of more “Afghanization”. We have established incentives for
contractors financed by the United States
to increase the use of Afghans in key personnel positions, as a means of
ensuring a better understanding of the needs and reality on the ground, improving
senior management capabilities in Afghanistan and controlling costs.
USAID is also looking to buy locally. We will purchase
more at the local and regional levels, thereby targeting cost-efficient and
quality supplies, speeding up the time it takes to mobilize on-site and
increasing the capacity of local firms to deliver goods and services.
In order to help ensure that no U.S. taxpayer dollars find
their way into the hands of organizations linked to terrorists, our missions in
Afghanistan, Pakistan, India, and Sri Lanka have required anti-terrorism
certification from all our contractors and grantees.
As you know, the security paradigm in South
Asia has presented USAID with a new set of challenges in which we
are constantly learning how to adapt and do business in insecure places.
The Provincial Reconstruction Teams (PRTs) in Afghanistan have provided a platform for USAID
officers to monitor assistance outside of Kabul
and the ability to meet regularly with local leaders. Additionally, we have recognized that there
are places that even the PRTs cannot access.
To overcome this challenge, USAID has assigned officers to work with the
U.S. Special Forces in areas that are outside the PRTs’ reach -- which are
either very insecure or are areas that have recently been “cleared” (i.e., post
combat). In these situations, the
military and USAID sit together to lay out a strategic plan for clearing an
area with combat operations and then holding the area by undertaking community
development activities as soon as combat ends.
Expanding the use of public-private
partnerships is a top priority in today's USAID. Our new Administrator challenged us to triple
the resources we leverage through public-private partnerships. Today, there are 21 active
public-private alliances in South Asia,
including programs in IT curriculum, strengthening
universities and the garment industry, small business sector promotion and
coffee and tea production. And, just
this past Monday, Secretary Rice announced the International Women’s
Empowerment Fund, a new public-private partnership to empower women in the Muslim
world in entrepreneurship, political leadership, and the rule of law.
USAID’s implementation of DOD funds
transferred under section 1207 of the National Defense Authorization Act
(section 1210) will dramatically expand the development impact
and sustainability of its programs in South Asia.
These funds allow the USG to address root causes of conflict and instability in
a country to reduce the need for military intervention.
Nepal was the
first country to apply for, and successfully obtain, funding from the 1210
account under the FY 2007 appropriation.
The process for applying for these funds continues to be refined and
South Asia countries currently submitting applications include Sri Lanka and Bangladesh.
Responding to Workforce Challenges
Over the past several decades USAID’s permanent Foreign
Service Officer (FSO) workforce, has been steadily shrinking and currently
stands at about half the level it did in 1980—despite a significant increase in
USAID responsibilities. The President’s 2009 request for USAID operating
expenses includes $92.1 million for a “Development Leadership Initiative” that
will allow USAID to recruit, hire and train 300 new FSOs.
This initiative will allow USAID to strengthen its technical
assistance experts and seize the opportunities presented for development around
the world. More specifically, it is my
hope that a side effect of increasing our workforce will be that USAID is
better equipped to manage smaller, country-specific contracts and grants and we
can shift away from the large contracts that are often awarded to a small group
of U.S.-based companies. With an
increased workforce, we can work with more local contractors as well as smaller
U.S.-based firms. This will provide more
flexibility, increased competition, and more effective assistance on the
ground, where it matters.
Conclusion
In Asia, USAID recognizes
that the stakes for development and foreign assistance have never been higher.
Administrator Fore has put forward a robust vision of a stronger, more flexible
Agency—one that will be able to continue to develop innovative approaches and
that will be able to expand its successful cooperation with the Departments of
State and Defense. We look forward to working together with the Congress in the
year ahead to ensure that we maximize the impact of the generous foreign
assistance provided by the American people.
Mr. Chairman, thank you for the opportunity to appear before
you and Members of the Committee today.
I am happy to take any questions you may have.