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Namibia

Budget Summary

Flag of Namibia

Please note: All linked documents are in PDF format

Objective SO Number FY 2004 FY 2005 FY 2006
Private Enterprise Development 673-001 400 400 0
Community Based Natural Resource Management 673-003 1,514 0 0
Basic Education Support 673-006 2,713 2,720 2,920
Community Based Natural Resource Management 673-007 1,210 2,257 2,750
Reduced prevalence of HIV/AIDS 673-008 3,965 796 0
Democracy and Governance 673-009 794 775 697
Trade and Investment 673-010 0 0 520
Total (in thousands of dollars) 10,596 6,948 6,887

Excludes P.L. 480. See Program Annex.

The Development Challenge: Namibia achieved a historic democratic milestone in November 2004 with national elections that brought the first change in presidential leadership since the country's independence from apartheid South Africa in 1990. The elections--which also resulted in significant turnover in Parliament and Regional Councils--reaffirmed Namibia's support for democratic processes. When the new administration takes office in March 2005, it will assume leadership of a country that consistently ranks high on international indices of economic competitiveness, democratic freedom, freedom of the press, and good governance, and is regarded as one of the developing world's leaders in public sector investments in education and health.

The new government faces daunting development challenges that could prevent Namibia from reaching its full potential. The impact of HIV/AIDS on Namibia is catastrophic. HIV prevalence among pregnant women was estimated at 19.8% in 2004. More than 200,000 Namibians aged 15-49, 11% of the workforce, are estimated to be living with HIV, and average life expectancy has dropped from 61 years in 1991 to 47 in 2004.

Namibia's economic growth over the past five years has not been sufficient to increase per capita income and reduce poverty. Namibia's relatively high per capita GDP of $1,730 masks an extreme income disparity that, according to the 2004 UNDP Human Development Report, is the highest in the world. An estimated 55% of national income accrues to only 10% of the population, and 35% of the population live on less than $1 per day. Namibia's population growth outpaces job creation: only 7,000 of the 20,000 annual high school graduates find jobs, and 60% of the workforce is unemployed or underemployed.

Although Namibia devotes over 20% of annual government expenditures to education, over 90% of education funding is used for personnel costs, leaving little for school buildings, materials, and equipment. Namibia has a shortage and an inequitable distribution of qualified teachers--particularly teachers with needed mathematics, science, and English skills. According to a recent regional education report, only a third of Namibian sixth grade students demonstrated the required literacy and numeracy competencies.

The Government of Namibia (GON) faces significant challenges in implementing its land redistribution and resettlement policy. Because the GON has been criticized for not acquiring sufficient land from white farmers through its policy of "willing seller, willing buyer," it is implementing legislation to acquire land by expropriation. The GON has reassured farmers that fair compensation will be paid for land acquired in this manner and, to date, no land has been expropriated. The GON also needs to build on its success in linking sustainable natural resource management with rural development. Further attention is needed to equitably distribute the benefits generated from tourism, wildlife utilization, and other natural resources so that the increased income from these activities can reach the poorest and most marginalized citizens.

Although Namibians enjoy a wide range of democratic rights, including freedom of the press, multi-party elections, and a relatively independent judiciary, the concept of checks and balances on public institutions is not well developed, and opportunities for critical and constructive interaction with elected leaders are not always well used. Consistent commitment to democratic values will be especially important over the next few years, as a new set of leaders moves into positions of political and economic power.

The United States has a significant national interest in helping Namibians fight HIV/AIDS, promote economic development, and strengthen democratic consolidation so that Namibia can continue to contribute to peace, security, and stability on the African continent.

The USAID Program: Funding for four program objectives will be used to accelerate the economic, social, and political empowerment of historically disadvantaged Namibians by supporting activities to promote private enterprise development, improve basic education in grades one through seven, strengthen democracy and governance, and increase the environmental and economic benefits of community-based natural resource management.

Other Program Elements: The USAID program in Namibia is augmented by three centrally-funded activities under the African Education Initiative (AEI). AEI provided $1.35 million in FY 2004 for strengthening pre- and in-service teacher training. This activity, which began in late FY 2004, aims to provide 500,000 textbooks to disadvantaged Namibian school children in targeted regions over a two-year period. AEI also provided $315,000 in FY04 for the Ambassadors' Girls Scholarship Program which will allow 950 disadvantaged girls to attend school.

With USAID Africa Bureau funding, the International Foundation for Education and Self Help is sponsoring the work of 11 volunteer teachers at Teacher Training Colleges to help improve teaching skills.

USAID's Regional Center for Southern Africa, based in Botswana, manages four regional initiatives that support Namibian development. The Trade Expansion for Southern Africa activity focuses on trade policy, trade facilitation, public-private dialogue, and strengthening export sectors. A rural livelihoods activity works with commercial farmers to increase exports, and helps poor farmers diversify production. An integrated river basin management activity helps strengthen regional river basin commissions and develops the capacity of communities to manage water resources in a sustainable manner. The Partnerships in Electoral Process activity strengthens democratic processes and promotes the rule of law and respect for human rights.

Namibia is a focus country under the President's Emergency Plan for AIDS Relief. FY 2005 funding will be provided from the Global HIV/AIDS Initiative under the policy direction of the U.S. Global AIDS coordinator. The FY 2006 HIV/AIDS request for this country is contained in the Global HIV/AIDS Initiative account justification. For further details please see the Department of State FY 2006 Congressional Budget Justification.

Other Donors: USAID works actively with other donors in key development areas to ensure complementarity and avoid redundancies. With the dramatic increase in HIV/AIDS funding in FY 2004 and FY 2005, the U.S. funded program more than doubled in size, making the U.S. Government the largest and one of the most visible bilateral donors in Namibia. United Nations agencies also play an important role in catalyzing a coordinated response to the HIV/AIDS epidemic, supported by the European Union (EU), Germany, Finland, Sweden, the Netherlands, and France. In November 2004, a grant from the Global Fund for HIV/AIDS, TB and Malaria was approved, which will provide significant resources for Namibia's HIV/AIDS program.

USAID coordinates with a UNDP-administered Global Environmental Facility project to link protected areas with USAID-supported conservancies. USAID's Living in a Finite Environment activity and the World Bank's Integrated Community-Based Ecosystem Management project were designed to complement each other and to leverage resources. Germany, Sweden, and Finland also are active in the environment sector. The EU has a large rural development project that includes elements of community-based natural resources management support.

The Netherlands, Sweden, Finland, and Germany are key players in the democracy and governance sector. UNDP, the United Nations Industrial Development Organization, Germany, and Luxembourg are engaged in small and medium enterprise development programs, while the EU and Germany support trade and investment development. The EU, Germany, Sweden, France, Finland, Luxembourg, Norway, the United Kingdom, Spain, and the UNDP participate in a sector assistance program in education.

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Tue, 14 Jun 2005 16:04:58 -0500
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