11. Promote Broad-Based Growth in Developing and Transitional EconomiesDeveloping and transitional economies make the necessary policy changes to create environments capable of supporting sustained economic growth. Over the long term, the prosperity of America benefits as transitional and developing nations expand their economies and open their markets. Economic growth that reduces poverty and provides opportunity can further regional stability and complements the advance of democracy and rule of law. Sustainable development also ameliorates global problems such as high population growth, the spread of infectious diseases, and environmental degradation. The Department seeks this goal primarily through promoting the movement away from centrally controlled economies to market-based economies and by helping to make free markets work in developing nations. This is achieved by pursuing sound macroeconomic policies, promotion of private sector trade and investment, and financial market reforms in developing and transitional countries. The Department assists developing economies through coordination of efforts with donor nations, international financial institutions and other multilateral organizations. Strong economies contribute to regional stability and democracy, while paving the way for more open markets for U.S. exports. Working with international financial institutions and other U.S. agencies such as Treasury, EXIM, and Commerce, the Department of State promotes policy reforms that lead to open markets and pluralistic societies in developing and transition economies. This year we have put particular emphasis on sound domestic policies and good governance as key conditions for development and growth as we have planned for two important international meetings, the Financing for Development Conference and the World Summit on Sustainable Development, to be held in 2002. In response to the events triggered by the terrorist attacks of September 11, the United States took the lead to initiate a comprehensive, long-term international reconstruction effort for Afghanistan. Supported Development Banks The Department works closely with multilateral and regional development banks to promote growth in developing economies. Adequate funding for these institutions is crucial to U.S. international economic and political interests, including in Afghanistan, where they will play a key role in the international reconstruction effort. Supported Eastern Europe The Support for Eastern European Democracy (SEED) program assists countries in the region to continue their successful transition from communism to market democracies. The United States is extensively engaged in working with SEED countries to undertake the reforms necessary to qualify for graduation. Supported Africa and the Caribbean During 2001 we have worked to continue to implement the African Growth and Opportunity Act (AGOA) and enhancements to the Caribbean Basin Initiative (CBI) both of which foster sustainable development in their regions by increasing trade with the United States.
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