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Bureau for Economic Growth, Agriculture, and Trade
The Bureau for Economic Growth Agriculture and Trade (EGAT) was established in FY 2002 as one of
three pillar, or technical, bureaus within the U.S. Agency for International Development (USAID). In its
initial year, EGAT articulated its overall goal – to reduce poverty and promote prosperity in developing
and transition countries; shaped a new organization capable of providing or accessing expertise and
information in the fields of economic growth, trade and investment, microenterprise development, urban
development, development credit, education, agriculture, natural resource management, science policy,
energy, information and communications technology and technology transfer; began to restructure its
portfolio with the intention of providing high-quality support to USAID missions worldwide; and both led
and supported U.S. Government (USG) participation in key international forums – the Doha Ministerial of
the World Trade Organization (WTO), the Monterrey Conference on Financing for Development, the
World Food Summit: five years later, and the World Summit on Sustainable Development (WSSD).
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In FY 2003, EGAT further refined its strategies, approaches, and portfolio to carry out its mandate of
technical leadership and field support. The Bureau embarked upon an ambitious effort to expand the
scope and quality of interactions with professional and operational networks, e.g., with U.S. universities,
the women in development community, those U.S. Government and private sector leaders in trade and
investment, and the growing network of scientists and policymakers dealing with agricultural
biotechnology. Input to strategies for trade capacity-building, trafficking in persons, agricultural
development, and education and training benefited from this external input. EGAT provided critical field
support to programs in Afghanistan and Iraq as well as to USAID missions seeking support with strategic
planning and program design, best-practices implementation, and assessments. Significant progress
was made in launching projects addressing the President’s Water for the Poor Initiative, the Digital
Freedom Initiative, and other WSSD commitments. Alliances with the private sector for potable water
expansion in West Africa and for increasing the sustainability of forest management moved from concept
to action on the ground.
EGAT’s agenda in FY 2004 includes a commitment to: developing a more focused and efficient approach
to field support, while maintaining or improving the quality of our response to field needs; nurturing new
partnerships and alliances for the achievement of mutually set goals; sustaining a highly successful
program in trade-capacity building; and finalizing and launching strategies for USAID support of
agricultural development, education and training, and women in development. The Bureau expects to
develop guidelines for the design of programs and activities targeted at the poor both bilaterally and in the
context of participation in the Organization for Economic Cooperation and Development’s Development
Assistance Committee’s (OECD/DAC) Poverty Network. EGAT will also direct increased cross-sectoral
attention to infrastructure development, drawing on the lessons of experience with energy and
telecommunications development and privatization as well as our understanding of the potential for
public-private partnerships in this sector. With other bureaus in USAID, EGAT will contribute to the
development of greater collaboration with the State Department on key issues in economic growth and
the environment.
FY 2005 will see continued progress in these programs as well as a greater integration of effort across all
of the sectors covered by the EGAT Bureau. EGAT will work with the Democracy, Conflict, and
Humanitarian Assistance (DCHA) Bureau on conflict recovery strategies, anti-corruption, human rights,
and the prevention of famine. EGAT will also work with the Global Health Bureau on HIV/AIDS and
human nutrition issues. There is already increased collaboration on developing more comprehensive
approaches to dealing with the HIV/AIDS crisis, multisectoral approaches to achievement of the
Millennium Development Goals, and strengthening of the financial sector to ensure that trade, agriculture,
business development, and overall economic growth can develop effectively.
The Development Challenge
The past 50 years have witnessed great progress in reducing poverty
and improving human well-being. Incomes have more than doubled and life expectancy has increased by
as much as twenty years for much of the developing world. Food production has increased and world
prices for staple grains continue to fall. New developments in science, especially agricultural
biotechnology, offer the promise of meeting future food needs even as populations in developing
countries continue to grow. Globalization has resulted in remarkable increases in world trade and
investment as well as a quantum leap in the transmission of information from one part of the world to
another. Economies oriented to market forces have been shown to be more efficient and more
sustainable than state-led systems. Good governance has emerged as a critical factor in determining
national prospects for growth and for the effective use of foreign assistance resources. The report
commissioned by USAID in 2002 – Foreign Aid in the National Interest – argues that good governance,
agricultural development, education, and the expansion of markets are essential to poverty reduction and
increased prosperity.
In spite of such progress, over 1.2 billion people still live on less than one dollar a day, a measure of
extreme poverty. Close to half the world’s population (2.5 – 3 billion people) live on less than two dollars
a day, well below the poverty line in most countries. Seventy percent of the world’s poor are women and
girls. Hunger has decreased in Asia and Latin America, but continues to increase in sub-Saharan Africa.
Pressure on natural resources continues to increase, with both fertile land and water in increasingly
scarce supply.
More than 125 million children, mostly girls, are out of school; only 25% of children complete five years of
education. Most of the world’s 900 million illiterate adults (mostly women) live in developing countries.
Despite the importance of modern infrastructure to development and economic growth, two billion people
worldwide still live without access to modern energy services and one billion lack access to safe drinking
water; three billion people have never used a telephone; and only slightly more than 500 million use the
Internet.
The expansion of trade has largely bypassed the least developed countries, which have seen their share
of world trade drop over the last decade. Primary commodities (coffee, cocoa) have faced falling prices,
with consequent impacts on rural incomes and employment in many countries. Overall competition in
global markets has increased and developing country firms seeking to participate in these markets face a
steep learning curve.
While national governments and leaders are responsible for their own development--as the Monterrey
Convention of the Conference on Financing for International Development makes clear--donors such as
USAID can play a role in bringing to bear the technical knowledge and expertise needed to solve
problems. USAID can build local capacity to harness science and technology to increase productivity as
well as to preserve the environment; train future generations as well as those youth unemployed today;
and devise and shape the policies that will align individuals’ incentives with national development goals.
The USAID Program: EGAT’s portfolio of technical leadership, research and field support activities is
designed to address the multi-faceted challenge of reducing poverty and promoting prosperity. Each of
the Bureau’s Programs focuses on a specific aspect of this challenge. As already noted, however, the
programs collaborate frequently on issues that cross sectors to ensure more effective impact of their
activities.
- The Economic Growth Program (EGAT/EG) provides economic growth-related technical leadership
and field support to strengthen the policy, legal, and institutional foundations that developing or
transition countries need to achieve open and competitive economies. EGAT/EG provides leadership
to the U.S. Government’s commitment to provide trade capacity building assistance to developing
and transition countries. In FY 2003, the program developed and began to implement USAID’s Trade
Capacity Building Strategy by focusing its efforts and resources on innovative and cutting edge
programs in developing and transition countries that: 1) enhance their capacity to participate in, and
benefit from, global trade and investment; 2) improve macroeconomic stability and economic
governance in order to foster favorable business environments; and 3) enhance private sector and
financial sector capacity to respond to opportunities in the global market place. In FY 2004,
EGAT/EG will complete a Financial Sector Strategy that will be used to guide USAID missions in
efforts to strengthen financial sector development programs. It will also begin a new competitiveness
initiative that will provide USAID missions with expertise, best practices and tools to design and
initiate activities to enhance the competitiveness of the private sector in developing/transition
countries.
- The Agriculture Program (EGAT/AG) leads the Agency’s efforts to help developing countries
increase their agricultural productivity and stimulate economic growth in rural areas. It exercises its
leadership role through support of agricultural research on developing country problems and through
the provision of technical advice and training to USAID field missions that are implementing
agricultural development programs. Both the research and the technical services supported by
EGAT/AG are organized around three themes: 1) agribusiness development; 2) agriculture and rural
policy and governance; and 3) agricultural technology generation and outreach.
- The Natural Resources Management Program (EGAT/NRM) provides technical leadership and
field support for the design and implementation of activities that assure the sustainable use of natural
resources in four key areas: biodiversity, forestry, land resources management, and water.
EGAT/NRM provides technical oversight to research on sustainable natural resource management
and use carried out by U.S. universities and a number of international research centers. It
coordinates and supports three Presidential Initiatives: the Initiative Against Illegal Logging; the
President’s Signature Initiative on Water for the Poor; and the White Water to Blue Water Initiative. In
addition, the program works closely with several Global Development Alliances. These Alliances
include the Sustainable Forest Products Global Alliance, which promotes sustainable forest
management; the West Africa Water Initiative, which focuses on the provision of small potable water
supplies and sanitation facilities in West Africa; and the Coffee Corps, which provides U.S. private
sector expertise to coffee producer groups in support of sustainable small farmer coffee systems.
- The Environment and Science Policy Program (EGAT/ESP) manages activities in three specific
areas that involve scientific and technological innovation – biotechnology and agricultural research,
climate change, and multilateral policy. Specifically, EGAT/ESP oversees USAID’s agriculture,
natural resource management and environmental research portfolios and seeks to improve food
security, protect the environment and reduce poverty through the use of biotechnology. The Program
oversees and reports on USAID’s climate change activities and works to promote climate-friendly
economic development. Further, the Program coordinates USAID efforts to implement an
international agenda on agricultural development, natural resources management and environmental
issues.
- The Education Program (EGAT/ED) provides technical leadership, field support and donor
coordination in the education sector, focusing on: (a) improved basic education; (b) strengthened
higher education institutions to address local and national needs; and (c) improved performance
through training of public and private sector organizations. EGAT/ED places particular emphasis on
access to education and quality issues, support for Presidential Initiatives in Africa and Latin America,
expansion of the role of higher education partnerships, and improvement of the development impact
of training programs. The program manages a Global Development Alliance in teacher training,
community partnerships, and youth and workforce development. EGAT/ED also serves as the U.S.
Government lead in multilateral efforts to provide Education for All with the United Nations
Educational, Scientific, and Cultural Organization (UNESCO), World Bank, United Nations Children’s
Fund (UNICEF), and other donors.
- The Energy and Information Technology Program (EGAT/EIT) provides technical leadership and
field support to developing countries aimed at providing: 1) expanded access to, and sustainable use
of, modern, efficient, and affordable energy services; 2) expanded access to and application of
information and telecommunications services; 3) expanded access to enabling technologies for
sustainable production and trade; and 4) expanded effective use of transportation and distribution
infrastructure. EIT plays a major role in the implementation of the U.S. Government Clean Energy
Initiative announced at the World Summit on Sustainable Development and in the Global Village
Energy Partnership aimed at increasing the poor’s access to modern and affordable energy services.
EIT also provides leadership to the U.S. Government Digital Freedom Initiative, which promotes ecommerce
in the developing world through policy reform and small business training. In addition, it
promotes the effective use of transportation and distribution infrastructure in addressing
transportation barriers and trade facilitation. Finally, the program supports the Global Trade and
Technology Network (GTN) which provides developing country private enterprises with enabling
technologies for sustainable production and trade.
- The Poverty Reduction Program (EGAT/PR) works with USAID field missions to translate
economic growth into poverty reduction by advancing market-led policies and other activities that
specifically benefit the poor. The focus of these efforts is on initiatives that can help poor households
protect, develop, leverage, or acquire enduring assets, exert control over their lives and participate in
their communities in meaningful ways. EGAT/PR supports interventions that build up and protect the
assets of the poor, increase the return on these assets, and help the poor cope with external adverse
shocks. Equally important, it supports USAID efforts to increase the responsiveness of public
institutions to poor people and to strengthen the poor’s participation in local decisions that affect their
lives. Key activities include microenterprise development, property systems reform, municipal service
improvements and urban slum upgrading programs.
- The Women in Development Program (EGAT/WID) is the focal point within USAID for technical
expertise and leadership on gender issues. Specifically, it assists USAID missions and offices in
understanding the differential impacts of programs on men and women and the unique contributions
made by both men and women; addresses constraints that limit demand for girls’ education; works
with host country governments and non-governmental organizations to advance the status of
women’s legal rights and to increase opportunities for women; and takes a leadership role on
emerging issues with critical gender dimensions. EGAT/WID seeks to increase the capacities of
USAID and its partners to address these issues and coordinates with the donor community on critical
gender issues such as trafficking in persons.
- The Policy Analysis, Information, Communication and Outreach Program (EGAT/PAICO)
focuses on improving EGAT’s ability to finance program development costs, conduct program
assessments, implement special programs/initiatives, conduct program evaluations, and develop
better information management tools.
- The Development Credit Program (DC) manages the Development Credit Authority (DCA), a broad,
general funding authority enacted by Congress that allows USAID to issue partial loan guarantees of
up to 50 percent for development purposes. DCA augments grant assistance by mobilizing private
capital in developing countries for sustainable development projects, thereby supporting the capacity
of host countries to finance their own development. In FY 2004, USAID plans to commit $15 Million in
transfer authority to an innovative program to support the financing of water and sanitation facilities in
developing countries under the Presidential Water Initiatives.
- The Middle East Cooperation Program funds the U.S.-Israeli Cooperative Development Research
Program which provides grants to support cooperative research efforts by U.S., Israeli and
developing country scientists. The program also supports the Middle East Regional Cooperation
program which promotes cooperative research efforts by Arab and Israeli researchers on topics
relevant to the Middle East.
Other Program Elements: USAID field missions buy in to EGAT mechanisms and services.
Program and Management Challenges: Over the past year, EGAT has taken the lead in developing a
number of USAID sectoral strategies in the areas of trade capacity building, agriculture, education and
women in development. The Trade Capacity Building Strategy was launched in February 2003 and has
provided a framework for USAID efforts to meet commitments made at the Doha World Trade
Organization (WTO) Trade Ministerial meetings in November 2001. The remaining strategies will be
approved in early 2004. In line with these new strategies and the new Joint State Department-USAID
Strategic Plan, EGAT is developing a new Bureau Strategic Plan that will reflect new strategic directions
and its new organizational structure. EGAT’s new Strategic Objectives, which have received interim
Agency approval, are presented in this document. EGAT expects the Plan to be completed and submitted
for Agency review in 2004.
One of EGAT’s key program management initiatives over the past year has been the development of field
support mechanisms that are more responsive to the needs of its customers—USAID’s field missions. In
this regard, the Bureau developed a number of new and innovative field support mechanisms to meet
Mission demand for specific services. Examples of these mechanisms include the Support for Economic
Growth and Institutional Reform (SEGIR) family of contracts that provide missions with rapid and effective
response to requests for assistance in the design and implementation of a wide array of economic growth
activities. In FY 2004, EGAT will begin an innovative new field support program—the Volunteers in
Economic Growth Assistance Program (VEGA)—that will mobilize American volunteers, primarily private
sector executives, farmers and business associations, to provide services to developing countries in
private market development, agribusiness development and improvements to municipal services. EGAT
has also developed more effective ways of informing missions of its field support services and developed
an improved system for prioritizing and responding to field requests for assistance. The responsiveness
of these field support mechanisms was recently confirmed by USAID missions responding to a USAID
management survey.
Key programmatic and management challenges for FY 2004 include:
- Teamwork and Communications: Many EGAT initiatives, such as enterprise development and
rural finance programs, can make important contributions to progress in several sectors. Issues
such as HIV/AIDS adversely impact all development efforts. Lessons learned and best practices
developed by one office on a particular development issue need to be shared with other EGAT
and USAID offices. Many times, the combined efforts of several offices and teams are required
to achieve a development goal. EGAT has begun to explore and develop ways to improve crossoffice
teamwork as well as cross-Agency teamwork and communications and will make this a
management priority over the coming year.
- Assisting Countries to Transition from Humanitarian to Development Assistance: Countries such
as Ethiopia and Sudan have received substantial amounts of humanitarian assistance over many
years due to conditions such as drought, famine and conflict. As these adverse conditions
subside, EGAT, as a pillar bureau, will need to develop innovative and effective mechanisms to
help missions design and implement activities that will wean these countries off of humanitarian
assistance and put them on the path to sustainable development.
- Assistance to Mid-Range Performers: The Millennium Challenge Account (MCA) will support
development activities in a limited number of countries with very good performance relative to
others. This will leave a large number of countries that are either very close to MCA eligibility or
mid-range performers whose performance and commitment to reform provide opportunities for
progress. The challenge over the next few years will be to support USAID missions in the
development of initiatives to meet these countries’ needs and to boost their performance to meet
MCA eligibility
- Trade Capacity Building: The White House is undertaking, through its Office of the U.S. Trade
Representative, an ambitious agenda to initiate several new Free Trade Agreements (FTAs), in
addition to fulfilling its existing obligations with the World Trade Organization (WTO). This
presents a challenge to USAID to design and implement trade capacity building (TCB) programs
that support the Administration’s negotiation of these agreements, coordinate efforts across the
fifteen U.S. agencies involved in TCB, and build technical capacity for TCB among USAID staff.
EGAT has already begun to meet this challenge by designing assistance mechanisms to support
USAID missions in countries targeted for FTAs, co-chairing regular U.S. Government interagency
meetings, and initiating a major trade assistance training program for USAID staff.
Other Donors: EGAT works closely with other donors to ensure the efficiency and maximize the impact
of development resources and to achieve the Millennium Development Goals of eradicating extreme
poverty and hunger, achieving universal education and ensuring environmental sustainability and gender
equality.
In all of the sectors under its purview, EGAT works with the multilateral development banks. In particular,
it works closely with the World Bank on trade capacity building, agricultural development, infrastructure
financing, poverty reduction, education and environmental initiatives. EGAT provides funding to the
Consultative Group for International Agricultural Research, whose Secretariat is housed at the World
Bank, for new joint research and dissemination partnerships. EGAT’s Poverty Reduction Office supports
the World Bank’s Consultative Group to Assist the Poorest (CGAP) and plays a leadership role with the
World Bank, the Asian Development Bank, European Bank for Reconstruction and Development, Inter-
American Development Bank, and African Development Bank on issues of basic shelter, urban
youth/unemployment, air and water quality deterioration and transportation system improvements.
EGAT maintains dialogue with key organizations under the United Nations umbrella including: the U.N.
Food and Agriculture Organization (FAO) and the World Food Program in the agricultural sector; the U.N.
Development Program (UNDP) on environmental and urban upgrading issues; the United Nations Fund
for Women (UNIFEM); the United Nations Commission on the Status of Women on gender issues; and
the U.N. Educational, Social and Cultural Organization (UNESCO) on education issues. With the U.S.
rejoining UNESCO this year, EGAT provided funding for three of its top policy-makers. EGAT also works
closely with several international organizations such as the World Trade Organization to address trade
issues emerging from the meetings held at Doha and Cancun and the Organization for Economic
Cooperation and Development’s Development Assistance Committee (OECD/DAC) on poverty, gender
and trade capacity building activities.
EGAT has close working relations with several bilateral donors. As an example, the Office of
Development Credit collaborates with the British Department for International Development (DFID) on its
new credit activities and with the European Union and the Japan Bank for International Cooperation on
financing for the Presidential Clean Water Initiative. EGAT/ED participates in the Group of Eight seniorlevel
Education Task Force which focuses on important issues such as access for the underserved,
education quality, and gender.
Finally, EGAT works with numerous U.S. partners, including U.S. Government entities such as the
Department of State, the U.S. Environmental Protection Agency and the Department of Energy, Non-
Governmental Organizations, Private Voluntary Organizations, and private sector businesses and
organizations.
FY 2005 Program: EGAT plans $150.7 million for its FY 2005 program. Key initiatives that will be
supported in FY 2005 include:
- Ongoing support for trade capacity building in support of World Trade Organization (WTO) and
bilateral USG policy objectives;
- Strengthening the financial sector to support agriculture and business development;
- Increased support for cross-sectoral approaches to development problems, such as the HIV/AIDS
pandemic;
- Continued efforts to integrate the poor into mainstream economic development through building
up and protecting assets.
- Continued emphasis on sustainable natural resource management to protect the environment
and promote increases in rural incomes.
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