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USAID Information:
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Guinea
The Development Challenge: Since the fall of Sekou Toure's socialist regime in 1984, Guinea has made only minimal progress in instituting the fundamental reforms needed to boost the economy, expand social services, and maintain steady inflows of donor resources. Moreover, political will to continue reforms has severely diminished in recent years, and Guinea continues to rank among the poorest countries in the world. In the United Nations Human Development Report 2003, Guinea is ranked 157 out of 175 countries, and its per capita gross domestic product is estimated at a mere $1,960. Guinea's human development index value of 0.425 is scarcely above that of Sierra Leone, rated last with an index of 0.275. Life expectancy is 48.5 years, and only 38% of the adult population is literate (15% for women). The infant mortality rate is 169 per 1,000, maternal mortality is 528 per 100,000 live births, and HIV rates as high as 7% in urban areas of the Forest Region of Guinea, help explain why the quality of life for the average Guinean is considered among the lowest in the world.
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The Government of Guinea (GOG) is currently mobilizing only about 12% of its GDP in fiscal revenues, much lower than its potential (estimated at 20%), and the national economy is still relatively undiversified and relies mainly on bauxite exports for revenue and critical foreign exchange. In early FY 2003, the GOG's lax management of budget and fiscal resources led to the abandonment of the IMF's Poverty Reduction and Growth Facility (PRGF) and the adoption of a staff-monitored program. Suspension of the PRGF may result in the postponement of payments from the heavily indebted poor countries (HIPC) debt-relief initiative and delay or hinder full implementation of Guinea's Poverty Reduction Strategy Program (PRSP). This further aggravates a bleak economic and political forecast for FY 2004 and beyond.
Guinea possesses great potential for economic growth due to an abundance of natural resources, its excellent conditions for agriculture, and its strategic location that favors trade. Unfortunately, corruption and favoritism, unstable borders, questionable political stability, and lack of control and transparency in managing budget resources continue to hamper development progress and severely discourage needed foreign and domestic investment in Guinea. These conditions also pose a potential threat to regional instability.
U.S. strategic interests in Guinea are strong and multi-faceted. Guinea is a moderate Muslim country that currently holds a non-permanent seat on the U.N. Security Council and maintains a moderate, secular orientation in its foreign policy. Guinea is bordered by six countries, of which four (Ivory Coast, Sierra Leone, Guinea-Bissau and Liberia) have had serious levels of instability or conflict over the past several years. As a result of these conflicts, Guinea is currently host to a significant refugee population. Keeping Guinea stable is important to resolving conflicts in this volatile region, and to preventing conditions that could become a security threat to the United States. A stable Guinea will also avert the need for future U.S. humanitarian assistance investments similar to those required for Sierra Leone and Liberia.
The USAID Program: USAID Guinea's four Strategic Objectives include: (1) improving natural resources management and incomes in rural areas; (2) improving family planning and the health and welfare of women and children, and preventing the transmission of HIV/AIDS; (3) providing quality basic education to a larger percentage of Guinean children, with emphasis on girls and rural children; (4) and fostering continued democratic progress through strengthening of civil society organizations and promoting good governance. FY 2004 funds will be used to implement the ongoing programs under these four objectives. FY 2005 funds will be used to fund ongoing efforts, as well as expand activities in trade capacity, anti-corruption, HIV/AIDS, and institutional strengthening of civil society organizations. The specific activities to be funded by FY 2004 and FY 2005 appropriations are described in more detail in the following Data Sheets.
Other Program Elements: In addition to the resources requested in the Data Sheets, P.L. 480 resources in Guinea aim at improving household food security by promoting sustainable agriculture in targeted areas. This is achieved mainly through the introduction of improved farming methods, post-harvest storage techniques, and high-value seed. P.L. 480 funds are also used to improve maternal and child nutrition. The USAID West Africa Regional Program (AFR/WARP) provides support to Guinea and in FY 2004 will help improve trade capacity through private sector strengthening and promoting business linkages between companies in the U.S. and Guinea. The USAID Bureau of Global Health is helping to improve child survival by supporting two Guinean NGOs to implement innovative approaches to improve maternal and child health practices. The Department of State Bureau of Population, Refugees and Migration (PRM) continues to provide support to the estimated 180,000 refugees still resident in camps in Guinea.
Other Donors: Bilateral donor assistance to Guinea covers an estimated 85% of all development projects implemented and coordination among donors remains strong. In addition to the United States, France remains among the largest bilateral donors in Guinea and focuses primarily on rural development and infrastructure, natural resources management, fisheries development and education. Japan makes contributions primarily in health and basic education. Canada and Germany also play prominent roles in Guinea, mainly in the health, education, and agriculture sectors. Multilateral donors include the United Nations agencies, the European Union, the Bretton Woods institutions, the African Development Bank, and the Islamic Development Bank. The World Bank concentrates on capacity building, urban infrastructure, education, HIV/AIDS, rural electrification, and water. Support to Guinea's macro economics program is a joint effort from the IMF, World Bank, European Union and the African Development Bank. USAID remains one of the leaders among the donor community in the fight against HIV/AIDS in Guinea. Over 40 partners, including USAID, are active members of the Global Fund for AIDS, TB and Malaria Country Coordinating Mechanism. USAID has also worked closely with UNFPA and the German Development Bank (KfW) in assuring country-wide coverage for the provision of contraceptive commodities. As one of the largest bilateral donors contributing to primary education under Guinea's "Education for All" program, USAID is the recognized leader among donors in the area of education quality and has been asked to lead coordinated efforts in this area.
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