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	Statement of the Administrator Summary of FY 2006 Budget Request Program Highlights Management Improvements USAID Support Budget Operating Expenses Capital Investment Fund Working Capital Fund Operating Expenses, Inspector General Foreign Service Retirement and Disability Fund International Disaster and Famine Assistance Transition Initiatives
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Central Asian Republics

The CBJ Profile Program Summary Tables Complete USAID/Central Asian Republic Program Please note: All linked documents are in PDF format Objective SO Number FY 2004 FY 2005 FY 2006 Small and Medium Sized Enterprises 176-0131 469 170 170 Energy and Water 176-0161 1,658 825 850 Democratic Culture and Institutions 176-0211 207 90 0 Conflict Prevention 176-0240 0 70 0 Health and Population 176-0320 1,600 1,775 1,645 Cross-Cutting Programs 176-0420 66 70 85 Transfers   0 0 0 Total (in thousands of dollars) 4,000 3,000 2,750

The Development Challenge: It is in the U.S. national interest to promote stability and development in Central Asia. The countries of Central Asia are critical allies in the war on terrorism and potential sources of world energy supplies. They also sit at a crossroads, bordering Russia, China, Afghanistan, and Iran. At the same time, these countries face pervasive poverty, huge income disparities, authoritarian rule, political repression, extreme corruption, significant health issues, and the potential for extremism. Although economic development in the region is progressing, particularly in Kazakhstan, true characteristics of democracy have yet to take root. Recent elections have been characterized as being not truly free and fair, media restrictions still exist, and crackdowns on civil society organizations are commonplace in Uzbekistan and Turkmenistan.

The regional nature of Central Asia's development challenges requires coordinated and integrated assistance from USAID. Several regional issues pose particular challenges. For example, all countries in the region have a vital stake in improving regional management of shared water resources, which are absolutely essential to the agriculture and energy supply sectors. The ecological problems posed by the disappearing Aral Sea also have regional consequences. Health issues are rapidly becoming regional in nature as well; the transmission of diseases across international borders occurs due to cross-border trade and migration, as evidenced by dramatic increases in the incidence of tuberculosis and HIV/AIDS in each of the Central Asian countries. Although regional trade is essential to Central Asia's overall economic development, many barriers to cross-border trade continue to exist and are particularly difficult to overcome. Risk of regional conflict also poses serious challenges due to stresses on individual communities produced by shared scarce resources, unemployment, and artificial national borders. While there is variation across the countries of Central Asia, democracy, human rights, and independent media benefit from a regionally-coordinated approach since authoritarian governance is pervasive in all countries. The regional nature of problems extends beyond just Central Asia. It also includes Afghanistan. As such, the USAID Mission in Central Asia and the USAID Mission in Afghanistan are increasingly engaging in dialogue to determine how specific programs, particularly related to economic growth, health reform, and management of natural resources, can be coordinated across borders.

The USAID Program: USAID's six objectives promote reforms that foster the growth of small and medium enterprises; promote civil society and expand access to information; improve primary health care and prevent infectious disease; encourage better use of the region's water and energy resources; mitigate sources of conflict; and address cross-cutting issues within the region through training, grants to civil society organizations, and religious outreach. Regional resources will complement country resources to allow for multi-country expansion of activities that support regional objectives. Regional funds also are used to cover program management costs that are not available within the limited country level budgets. The Water for the Poor and Clean Energy Presidential Initiatives are supported via regional programs.

Other Program Elements: Other USAID funding sources, which complement and reinforce the inputs of regional funding, are directed at country-specific programs. These activities are addressed in individual country reports.

Other Donors: Donor relations are detailed in individual country summaries. USAID works closely with bilateral and multilateral organizations to address country-specific and regional issues. The World Bank, the European Bank for Reconstruction and Development, and the Asian Development Bank are important regional partners. The European Union also has a substantial program throughout Central Asia.

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