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Eritrea
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CBJ 2006
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Eritrea

Budget Summary

Flag of Eritrea

Please note: All linked documents are in PDF format

Objective SO Number FY 2004 FY 2005 FY 2006
Rural Enterprise Investment Partnership 661-002 639 451 500
Health and HIV/AIDS 661-004 5,000 5,300 5,200
Developing Human and Institutional Capacity 661-006 1,100 600 281
Total (in thousands of dollars) 6,739 6,351 5,981

Excludes P.L. 480. See Program Annex.

The Development Challenge: Eritrea is suffering through the fourth straight year of drought as it struggles to revive the economy and restore infrastructure damaged during the 1998-2000 border conflict with Ethiopia. Household coping mechanisms and safety nets have been eroded as a consequence of the drought and the continued military mobilization that deprives tens of thousands of households of able-bodied family members. An estimated 66% of households live below the poverty level. Life expectancy at birth is only 53 years. Key U.S. interests in Eritrea are fostering regional stability, combating terrorism, promoting a democratic system of governance where human rights and religious freedom are respected, providing humanitarian relief, and encouraging economic development.

The USAID Program: The USAID program in Eritrea supports the joint State-USAID strategy. USAID's development strategy in Eritrea (FY 2003-FY 2007) will achieve results in three areas: 1) to improve rural livelihoods through micro-lending; 2) to improve primary health care; and 3) to increase public participation in growth and development through capacity building of grassroots organizations.

To spur rural economic growth and improve rural livelihoods, USAID provides loans, grants, and business consulting services to rural small and medium enterprises. In addition, USAID improves access to safe water, rebuilds key infrastructure in border areas, and helps small-scale farmers to improve their animal husbandry and water management practices.

USAID's health program supports the Ministry of Health in improving child health through vaccinations, and assisting in the improvement of the delivery of maternal and reproductive health services. Following the resolution of the border demarcation, the resulting large-scale demobilization and return of internally displaced persons (IDPs) will endanger progress that has already been achieved by placing additional strain on an already taxed health services sector. As a response, USAID's health program will focus on expanding the Eritreans' demand for primary health care, especially at the community level and improving the quality of primary health services. Additional priorities of the health program include improving the Ministry's capacity for the allocation and management of scarce resources. USAID will also assist the Ministry to improve the quality of HIV/AIDS prevention services and the public's demand for those services.

USAID's capacity-building program continues to enhance the Eritreans' ability to actively participate in their country's growth and development. Activities provide skill-based training to improve access to basic education, enhance access to information through the Internet, improve mobile phone services, assist with social and economic reintegration of demobilized ex-combatants and strengthen community-based organizations. Recent assistance to the University of Asmara, including a new Digital Learning Center for distance learning, includes the provision of 400 desktop computers and computer-related equipment, enabling the networking of four departments. Students now have far greater access to information.

Other Program Elements: In FY 2004, the Eritrea program received funds from USAID's Africa Bureau's Conflict and Peace Building Fund for conflict prevention activities. USAID's basic education program will support activities to improve access to basic education in underserved and minority populations.

USAID provided resources through its Offices of U.S. Foreign Disaster Assistance (OFDA) and Food For Peace (FFP) to mitigate the worst impacts of the ongoing drought. USAID funding to Eritrea has been critical for the rehabilitation and the expansion of Eritrea's rural water systems. In addition, this program has improved the livelihoods of many farm families, through the creation of rural water markets and seed fairs. Food aid contributions in FY 2004 helped to sustain approximately 1.9 million Eritreans, roughly 50% of the country's population.

USAID's Bureau for Economic Growth, Agriculture and Trade (EGAT) supports two Collaborative Research Support Programs -- The International Sorghum and Millet (INTSORMIL) Collaborative Research and Support and the Integrated Pest Management (IPM) -- which included Eritrea in their joint research programs in FY 2004. In addition, EGAT manages The John Ogonowski Farmer-to-Farmer Program which awarded Virginia State University $1.5 million to field volunteers to provide technical assistance to Eritrean farmers and cooperatives. In Eritrea, the USAID-managed FEWSNET program distributes regular food security bulletins to the Government of the State of Eritrea (GSE), bilateral and multilateral donors, NGOs, and others.

Other Donors: The World Bank and the European Union are Eritrea's largest donors, in addition to the United States. Other major bilateral donors, in order of importance are: Italy, the Netherlands, China, Germany, Japan, France, Ireland, and Cuba. The World Bank supports education, health, demobilization, road-building, and the energy sector. The European Union provides humanitarian assistance to war-affected and drought-prone areas, supporting agricultural production, energy, water and sanitation. United Nations (UN) agencies, including the United Nations Children's Emergency Fund (UNICEF), the Joint United Nations Programme on HIV/AIDS (UNAIDS), and the World Health Organization (WHO), support health/nutrition, education, water/sanitation, refugee/IDP/expellee support and resettlement, and a variety of humanitarian programs.

USAID collaborates with the World Bank and the European Commission in responding to needs in the health, education, and agriculture sectors, as well as those of a humanitarian nature. In addition, the Mission works closely with UN agencies (specifically UNICEF and UNAIDS) and WHO, to implement health/nutrition, water/sanitation, and HIV/AIDS activities.

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Tue, 14 Jun 2005 16:05:00 -0500
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