Account Overview: for Assistance for Eastern Europe and the Baltic States
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Accounts | FY 2004 Actual | FY 2005 Actual | FY 2006 Current | FY 2007 Request
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Asst. for E. Europe and the Baltic States | 442,375 | 393,427 | 357,390 | 273,900
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Support for East European Democracy (SEED) Act funding has promoted important U.S. national interests and strategic goals in the former communist countries of North Central and South Central Europe since 1989. Ten SEED recipient countries in the Northern Tier have already achieved the goal of integration into Euro-Atlantic institutions through their membership in NATO, and eight of them are also members of the European Union (EU). Assistance to these eight countries has already phased out. Bulgaria, Croatia, and Romania are on a clear path to economic and democratic reform and EU membership. FY 2006 will be the last year of new SEED funding for these countries.
In FY 2007, the USAID allocation of requested SEED funding will be $165,440,000. Negotiations on the status of Kosovo will begin in earnest in early 2006; FY 2007 SEED funds will be needed to help ease the transition in Kosovo, Serbia and neighboring countries, whatever the outcome of the status talks. SEED programs support innovative models, technical assistance, and training to facilitate reform and transition. SEED funding promotes broad-based economic growth and the strengthening of institutions within and outside of government to increase adherence to democratic practices and respect for human rights. The countries of Southeast Europe have made important progress toward achieving the goals of the SEED program: building a market economy with a strong private sector, consolidating democracy, and improving the quality of life for their citizens.
SEED programs help to reduce local and regional instability that could threaten the security and well-being of the United States and its allies. SEED programs also address the human costs of conflict, contribute to the protection of human health, help to achieve a sustainable global environment, and promote U.S. exports. Southeast Europe is a growing market for U.S. goods and services, as well as a gateway to the vast potential markets in Russia and Ukraine. SEED programs also help to reduce the threat of HIV/AIDS and promote regional cooperation.
While the SEED program has built a solid record of accomplishment, much remains to be done. The countries in Southeast Europe continue to require U.S. assistance to address serious needs. SEED assistance will focus on consolidating gains and preventing backsliding.
Bosnia and Herzegovina (BiH), Kosovo, the Republic of Macedonia, and Serbia and Montenegro (SaM), whose economic and political transitions were delayed by hostilities and ethnic violence, continue to require intensive U.S. assistance and leadership to maintain security, promote inter-ethnic dialogue, strengthen democratic institutions, and develop market economies. The United States continues to exercise leadership through both its SEED-funded assistance and military presence to ensure that the Dayton Peace Accords are implemented. SEED assistance in neighboring Albania continues to focus on building democratic institutions, promoting private sector-led growth and fighting trafficking and corruption.
Objectives of the SEED program for FY 2007 include the following:
- To continue support to SaM as it accelerates progress toward Euro-Atlantic integration. Efforts in Serbia will focus on supporting economic and democratic reform to solidify democratic gains, improving the effectiveness and accountability of local government, strengthening the rule of law, fostering respect for minority rights, and helping the government develop and implement a comprehensive program for economic, political, and administrative reform. In Montenegro, continued assistance will advance the process of democratization through support for economic reform and development of the private sector. Funds will also contribute to stability in the wake of Montenegro's debate of independence from Serbia.
- To support Macedonia's ongoing efforts to implement the 2001 Ohrid Framework Agreement. Robust implementation will help restore political stability by bringing the benefits of economic and political reforms to all Macedonia's citizens and maintaining the country on the path to Euro-Atlantic integration. Work to promote economic development and social cohesion will go on at the local level to sustain Macedonia's successful efforts at Framework-mandated decentralization and diffusion of ethnic tensions.
- To assist in Kosovo's transition now that status talks are under way. Whatever the outcome, it will be necessary to help build Kosovo's capacity to adjust to the significant challenge of self-government as the international community continues to hand over nearly all aspects of governance to Kosovar institutions. Essential assistance programs will concentrate on strengthening institutions; developing the judiciary, law enforcement and civilian police; supporting local government; and, maintaining respect for minority rights and driving economic growth through policy reform and support for key industries.
- To support BiH in its efforts to gain greater autonomy from the international community. SEED assistance will help local authorities to take on greater responsibility for economic, democratic, social, and judicial reforms. SEED assistance will also continue to help develop key state- and municipal-level government institutions as well as key non-governmental institutions, such as civil society organizations and the independent media.
- To stabilize, transform, and integrate the countries of Southeast Europe into trans-Atlantic institutions through the development of greater intra-regional ties under the aegis of programs such as the Stability Pact for Southeast Europe.
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