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Account Overview: Assistance for the Independent States of the Former Soviet Union
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($ in thousands)
| Account | FY 2004
Actual | FY 2005
Actual | FY 2006
Current | FY 2007
Request |
| FREEDOM Support Act | 584,537 | 625,520 | 508,860 | 441,000
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The United States has a vital national interest in helping the independent states of the former Soviet Union advance along the path toward becoming stable, pluralistic, and prosperous countries. FREEDOM Support Act (FSA) assistance plays a substantial role in supporting that transition, as illustrated by the recent democratic breakthroughs in Georgia, Ukraine, and the Kyrgyz Republic. The efficacy of U.S. Assistance to the region is also demonstrated by Georgia's ability to withstand a major energy crisis. In other countries, economic reform has not advanced sufficiently to spread its benefits broadly, such as in Moldova and Tajikistan. Yet in other countries such as Belarus, Uzbekistan and Russia, the lack of progress in democratic reforms, and in some cases backsliding, demonstrate the continuing need for FSA-funded programs, which play a vital role in supporting development and transformational diplomacy.
U.S. interests in the region will be protected most effectively when the Eurasian states complete their transition to democratic governance and market-based economies. With uneven progress to date, U.S. assistance remains an invaluable tool for achieving U.S. foreign policy goals. FSA-funded programs support emerging democratic organizations and market-based reforms creating broad economic opportunities. FSA assistance has helped develop civil society in Eurasia through support for non-governmental organizations, political parties, and the independent media. Addressing key transnational threats such as Avian Influenza, HIV/AIDS, tuberculosis, and trafficking in persons are also critical to U.S. interests in the region.
In FY 2007, the USAID portion of the FSA request will be $293,286,000. FSA-funded economic reform and business development programs have supported the growth of micro, small and medium-sized private enterprises throughout the region, and helped governments improve their investment regimes. FSA funds have also been used to capitalize enterprise funds, innovative assistance mechanisms that operate much like venture capital funds. FSA programs increase the scope of economic opportunity and promote social stability through support for basic and higher education, and improved health care. Complemented by assistance from other donors, FSA programs are helping countries and societies to build effective strategies to address the threat of HIV/AIDS and other infectious diseases.
FY 2007 FREEDOM Support Act assistance has the following objectives:
- In Georgia, Ukraine and Kyrgyzstan, USAID will help consolidate democratic gains and show U.S. commitment to support those governments' efforts to promote economic and democratic reforms, fight corruption, and deepen gains. USAID programs will strengthen democracy by supporting open and transparent political processes, rule of law, and checks on executive authority, including independent and capable legislative and judicial branches, robust and effective civil society organizations, and sustainable independent media.
- USAID's priorities in Russia will be strengthening democracy, governance, and free media; economic growth; and improved health and social services. Assistance in Russia will be implemented mostly by non-governmental organizations and private sector entities. Programming to combat trafficking in persons will be an important component of USAID's work in Russia, Moldova, and in the regional sphere.
- Because of restrictions on working directly with the Government of Uzbekistan, USAID will focus on working with Uzbek non-governmental organizations to protect democracy and to strengthen trade promotion activities, with the goal of WTO accession for Uzbekistan.
- In Turkmenistan and Belarus, assistance will be aimed at continuing efforts at democracy promotion.
- USAID programs in Azerbaijan will focus on eliminating corruption and strengthening the banking sector, to ensure that the country will benefit from its oil revenues. Programming will also increase access to investment capital and strengthen the non-oil sector to develop other productive sector of the economy and avoid an over-reliance on short-term oil revenues.
- Conflict mitigation activities in Tajikistan and the north Caucasus will target vulnerable communities at risk for violent conflict die to political, social, or economic differences. Programs will work through community-based organizations, local government, business, and community leaders to identify sources of local tension and then develop positive ways to address them through job creation, youth apprenticeships, physical infrastructure projects, information dissemination, and activities aimed at strengthening social capital.
- Augmenting USAID's work in the Caucasus, Georgia has signed a five-year, $295.3 million Millennium Challenge Corporation (MCC) compact. Overall U.S. Government assistance to Armenia will increase with the pending approval of a five-year, $235.6 million compact with MCC.
- In each Eurasian country, USAID economic growth programs will strive to make economies more competitive and open them up to trade and investment. Programs will support responsible macroeconomic policies, good financial sector regulation, a consistent, non-politicized approach to commercial disputes, and broad distribution of economic growth. USAID will help broaden economic opportunities in these former Soviet nations by bolstering private enterprise, especially small business, through training and increased availability of credit.
- HIV/AIDS and TB funds will be targeted in those countries where infection rates for these diseases are highest, most notably Russia, Ukraine, and Central Asia. High abortion rates and low contraceptive rates throughout the region require continued attention to reproductive health in most E&E countries. The Bureau will continue to combat build health systems and strengthen primary health care, including family planning/reproductive health and child and maternal health.
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