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CBJ 2006
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Bureau for Economic Growth Agriculture and Trade (EGAT)

Budget Summary Please note: All linked documents are in PDF format

Objective SO Nunber FY 2004 FY 2005 FY 2006
Economic Growth 905-101 16,985 13,450 13,450
Energy and Information Technology 905-111 12,251 11,641 10,630
Israeli/Middle East Programs 905-112 1,523 1,500 1,500
Poverty Reduction 905-201 16,625 10,600 8,300
Education and Training 905-301 14,896 16,546 17,310
Women in Development 905-401 10,541 11,000 11,000
Program Analysis, Implementation, Communications 905-601 2,108 2,521 2,000
Environment and Science Policy 905-701 40,475 38,200 36,200
Natural Resources Management 905-801 22,557 18,727 18,400
Agriculture 905-901 34,985 32,600 31,810
Total (in thousands of dollars) 172,946 156,785 150,600


The Bureau for Economic Growth Agriculture and Trade (EGAT) is one of three pillar, or technical, bureaus within the U.S. Agency for International Development (USAID). It shares with other USAID Pillar Bureaus a mandate to provide field support and technical leadership to USAID missions and Regional Bureaus, as well as to foster interagency coordination and international collaboration. Its overall goal is to reduce poverty and promote prosperity in developing and transition countries. To achieve this goal EGAT manages a portfolio of activities aimed at providing high quality support to USAID missions and Agency technical leadership in a number of sectors including economic growth, trade and investment, microenterprise development, urban development, development credit, education, natural resource management, agriculture, environment and science policy, energy, information and communications technology, and gender issues.

In FY 2004, EGAT continued to refine its strategies, approaches, and portfolio to carry out its mandate. It 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. It took the lead in the development of new USAID strategies in the areas of agricultural development and education, and played an important role in the development of USAID's new strategic management process. With the issuance of USAID's White Paper, which categorizes USAID assistance into three country typologies -- Transformational Development Countries, Fragile States, and Strategic States -- EGAT began to re-evaluate its portfolio and to re-shape its support strategies and activities to meet the different needs of each of those country types outlined in the White Paper.

Over the past year, EGAT has also placed greater emphasis on partnerships and alliances. EGAT assumed responsibility for coordinating bilateral donors' participation in the Integrated Framework for Trade Related Technical Assistance to Least Developed Countries (IF), and has played a critical role in maintaining the momentum of the IF and providing least developed countries' with confidence that their efforts to participate effectively in the World Trade Organization will be supported by a wide range of technical assistance for trade capacity building. EGAT continued to work closely with both multi-lateral and bilateral donors on a number of critical development problems. For example, EGAT's leadership in the Organization for Economic Cooperation and Development/Development Assistance Committee's (OECD/DAC) Poverty Network (POVNET) improved guidelines for donor involvement in pro-poor growth activities. EGAT's work with the World Bank's Consultative Group to Assist the Poorest (CGAP) helped identify and disseminate lessons learned and best practices in microenterprise development to donor partners. EGAT initiated seven new Global Development Alliances designed to address a wide range of issues including the development of asset building strategies for the poor and the development of new business ventures for unemployed youth. EGAT also has successfully involved new partners in much of its work, including its efforts in education, economic analysis and urban infrastructure.

Recovery from the South Asia Tsunami is a high priority on EGAT's agenda for the remainder of FY 2005 and FY 2006. EGAT will play a significant role in Tsunami recovery and rehabilitation, supporting core Agency tsunami reconstruction themes such as immediate restoration of economic livelihoods by exploring various options for using credit under the Development Credit Authority (DCA). DCA funding and partial credit guarantees could be used to support: loans to financial institutions to alleviate liquidity and capital shortfalls; new or refinanced loans from financial institutions to businesses or individuals to sustain lending activities; and new loans or bonds to local governments for financing infrastructure, including water, sanitation, electricity and road projects. EGAT is also looking at the use of Microenterprise Development funding to help tsunami-affected households and communities re-build their livelihoods and destroyed assets and move rapidly from dependence on traditional relief to self-reliance. Other key initiatives in FY 2005 and 2006 will include: the implementation of the new Agriculture Strategy with an emphasis on strengthening agribusiness and markets; improving access to modern, affordable and efficient energy services and promoting regulatory energy policy reform; and expanding programs to provide assistance on microeconomic reforms and economic governance. With a critical World Trade Organization (WTO) Ministerial scheduled for December 2005, EGAT's Economic Growth Team will continue to coordinate closely with the Office of the U.S. Trade Representative and other agencies on assistance needs relating to the WTO agenda and U.S. bilateral free trade area initiatives, and will work closely with USAID field missions to provide timely, world class technical support for developing countries' short- and long-term trade capacity building efforts.

The Development Challenge: Great progress has been made in recent years 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 substantial 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. Market-based economies have grown more efficient and more sustainable than state-led systems. Good governance has emerged as a critical factor in insuring economic growth and the effective use of foreign assistance. As progress toward a more open global trading environment continues, many developing countries must take urgent steps - within both the public and the private sectors - to improve economic efficiency and meet the challenges of international market competition.

Yet many challenges remain. Poverty, rather than prosperity, dominates in the majority of countries. Nearly half of the world's population has an average income of less than $2 a day. Many residents in the 49 least-developed countries face hunger, disease, and limited opportunities for economic advancement. More than 125 million children, mostly girls, are out of school and only 25% of the world's children complete five years of education. With low levels of education, few assets that can be parlayed into greater income streams, and little voice in national or international forums, women and men in these countries continue to strive merely to survive with the aspiration of providing a future for their children. Agriculture and its supporting industries are the focus of most economic activity in most of these countries. Productivity is highly vulnerable to climatic conditions and year-on-year variability in output can be large. In many cases, governments are unwilling or unable to put in place the necessary conditions for rapid income growth, expanding education, increasing food security, greater citizen participation in decision-making, and ensuring a secure and safe environment.

The USAID Program: EGAT's portfolio of field support, technical leadership and research activities is designed to address the multi-faceted challenge of reducing poverty and promoting prosperity. Each of the Bureau's 11 Strategic Objectives, or programs, are designed to address a specific aspect of this challenge. However, the programs collaborate frequently on cross-cutting issues to ensure more effective impact.

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 and assistance in building trade capacity, developing the private and financial sectors, reforming economic policies, and promoting good governance. In FY 2005 and 2006, EGAT/EG will analyze the workforce and other transition issues that developing countries face in rapidly liberalizing international markets, and identify options for missions to address these issues. EGAT/EG will also expand its assessments of microeconomic reforms that countries need in order to take full advantage of the benefits of trade liberalization, and will assist missions in designing and implementing effective assistance projects to address needs. EGAT/EG will develop models and approaches to assist missions in identifying and prioritizing appropriate economic growth interventions considering their level of political and economic development.

The Agriculture Program (EGAT/AG) strengthens agriculture's contribution to broad-based economic growth, better health, and improved natural resources management through three interlinked programs: (1) development and dissemination of innovative food-based technologies; (2) formulation of agricultural-led economic growth; and (3) improved competitiveness and capacity to access markets. In FY 2005 and 2006, EGAT/AG will support research and technical services aimed at: improving agricultural productivity; promoting agribusiness development and marketing; eliminating trade barriers; developing food-based solutions to disease prevention and mitigation; improving agricultural and rural policies and governance; and revitalizing long-term training in agriculture. EGAT/AG works closely with EGAT's Natural Resource Management (EGAT/NRM) program to assure effectiveness of activities that cut across these sectors such as those focused on assuring the sustainability of agricultural production systems or on improving water management.

The Natural Resources Management Program (EGAT/NRM) increases social, economic and environmental benefits through healthy ecosystems and sustainable resource management. EGAT/NRM specifically concentrates on improving natural resource management and conservation across diverse landscapes; promoting equitable natural resources governance and management of natural resource conflicts; and increasing economic opportunities through sustainable production, marketing and trade of natural resource-based products and services. In FY 2005 and 2006, EGAT/NRM will provide technical leadership and support to missions and Bureaus in key areas of biodiversity conservation, forest management, land resource preservation and use, and water and coastal resources management. EGAT/NRM will promote the in-situ, or on the ground, conservation of globally significant biodiversity in 17 sites across 18 countries through the Global Conservation Program. EGAT-supported forestry activities will continue to advance conservation, addressing the problems of illegal logging and slash and burn agriculture, as well as promoting agroforestry. Programs in environmental education, communications, sustainable agriculture, land tenure, governance, natural resources management, and geospatial information technologies for decision making will advance more productive and sustainable land management. Support will continue for integrated water and coastal resources management, in partnership with missions, the private sector, civil society, and other donors.

The Environment and Science Policy Program (EGAT/ESP) supports a portfolio of biotechnology, climate change, and agricultural/environmental research activities. EGAT/ESP coordinates USAID's work on multilateral issues related to science and technology by representing USAID in multilateral environmental agreements, reviewing environmental aspects of multilateral development bank programs, and developing policy on environment and conflict resolution. In FY 2005 and 2006 the Program will continue to support international research aimed at increasing agricultural productivity and improving the management of natural resources. It will also continue to promote the transfer of agricultural technology, especially biotechnology, to developing countries. Climate change activities will focus on reducing greenhouse gas emissions, as well as increasing adaptive capacity to climate change. Efforts will continue to help countries and regions evaluate and mitigate environmental threats to stability and security.

The Education Program (EGAT/ED) focuses on (a) improving basic education, (b) involving institutions of higher learning in the development process, and (c) improving performance through training. FY 2005 and 2006 funding will support programs to alleviate deficiencies in accessing quality education, including Presidential Initiatives in Africa and Latin America. EGAT/ED will also expand the role of higher education partnerships, improve and expand workforce development programs, support the implementation of Homeland Security regulations for training participants, and improve the developmental impact of training programs. EGAT/ED will continue to serve as the U.S. Government lead in UNESCO's Education for All, a program that seeks universal primary education by the year 2015.

The Energy and Information Technology Program (EGAT/EIT) provides technical leadership and field support aimed at expanding access to, and application of, modern, efficient, and affordable energy services, and information and telecommunications services. In FY 2005 and 2006, EGAT/EIT will provide technical assistance to energy programs in critical countries, including Iraq and Afghanistan. Activities will include strengthening the policy and regulatory environment to attract private investment, enhancing participation of civil society in sector decision making, building institutional capacity, and improving the management and efficiency of energy systems. EGAT/EIT will support the Presidential Clean Energy Initiative (CEI) and the Global Village Energy Partnership, programs aimed at increasing access to modern and affordable energy in underserved areas, as well as pursue new public-private partnerships to leverage additional resources for energy programs. In the information technology (IT) sector, EGAT/EIT will continue to support IT training, policy reform, improved access to IT, and expanded application of IT through the President's Digital Freedom Initiative (DFI), the Digital Opportunity through Technology and Communication (DOT-COM) Alliance, and the Last Mile Initiative.

The Poverty Reduction Program (EGAT/PR) reduces poverty through activities focused on broadening economic opportunity and security, and promoting more accountable institutions. EGAT/PR supports Microenterprise Development interventions that help poor households accumulate productive assets in a manner that enables them to earn higher returns and to protect their interests in the face of adverse external shocks. EGAT/PR also supports activities that strengthen the participation of the poor in local decision-making processes. In FY 2005 and 2006, EGAT/PR will continue to expand the availability of business and financial services to poor entrepreneurs and their families; analyze, identify and test measures to protect the assets of poor households; and continue to support partnerships that will improve and expand public services for the poor.

The Women in Development Program (EGAT/WID) addresses gender-related issues and finds new approaches and solutions to gender-related development obstacles. In FY 2005 and 2006, EGAT/WID will address constraints that limit girls' attainment of a basic education, such as school-related violence, low quality education, and facilities inappropriate for girls. EGAT/WID also will work on critical gender-related issues such as: anti-trafficking; women and conflict prevention, mitigation and resolution; and the linkage between women's status and HIV/AIDS.

The Policy Analysis, Information, Communication and Outreach Program (EGAT/PAICO) improves EGAT's ability to finance program development costs, budget strategically, monitor field support, conduct program assessments, implement special programs and 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 that advance development objectives. DCA augments grant assistance by mobilizing private capital in developing countries for sustainable development projects, thereby improving the capacity of host countries to finance their own development. In FY 2005, DCA requested $21 million in Transfer Authority to support activities including agribusiness lending, bond financing, micro, small and medium enterprise development, and clean energy and clean water initiatives.

The Middle East Cooperation Program includes two activities that support peace processes and contribute to development across many sectors. The U.S.-Israel Cooperative Development Research (CDR) Program is a USAID-managed, peer-reviewed competitive grants program that funds collaborative research by scientists from Israel, the U.S., and their counterparts in developing countries. The Middle East Regional Cooperation (MERC) Program is a USAID-managed, competitive research grants program specifically designed to promote cooperation between Arab and Israeli scientists, students, and communities on topics relevant to the Middle East region's development.

Program and Management Challenges:

In FY 2005 and 2006, EGAT will continue to strengthen its support to USAID missions and Regional Bureaus in key development sectors. In pursuing this commitment, it foresees the following management challenges and opportunities:

Field Support: Over the past year, EGAT strengthened its field support capabilities by designing a database that enables it to better address the needs of its customers - USAID's field missions. This database allows missions and Bureaus to request TDY support, and enables Agency management to track and monitor these requests. In 2004, EGAT received more than 600 requests for TDY visits from field missions around the world and was able to directly respond to nearly 70% of these requests. While this database improved EGAT's ability to meet field support needs, the inability to meet all field requests has led it to the examination and development of new ways to provide timely short-term TDY assistance. Over the next year, EGAT will continue to strengthen and improve other field support mechanisms such as: more flexible contract and grant mechanisms; improved communications and outreach through newsletters, global e-mails, workshops and training; the development of analytical tools that help missions analyze country situations and make decisions on future programming; and the identification and dissemination of best practices.

Strategy and Policy Development: In FY 2004, EGAT led several efforts to develop policy and strategy guidance in specific sectors. In July, it launched the Agency's Agriculture Strategy, which articulates USAID's approach to addressing challenges of food, rural poverty, employment, investment and sustainable natural resources management in the coming years. This document is being translated into Spanish and French for our missions and partners. EGAT's work on a USAID Education Strategy, which will guide USAID's future education activities, is near completion. Moreover, a new Women in Development Strategy is under development. EGAT also participated in the development of USAID's new strategic management process, providing extensive technical advice on the development of standardized Program Components and indicators in support of USAID's new policy framework and on ways to improve strategic budgeting in various sectors. In FY 2005, EGAT will continue its active participation in the Agency's strategic management process, and seek to refine its strategies and policies to align with USAID's White Paper.

Staffing: To meet the increasing demand for field support and technical leadership, EGAT must attract and maintain highly qualified development professionals, both direct hires and contract employees. Key positions in the Economic Growth, Agriculture, Development Credit Authority, Energy and Information Technology and Poverty Reduction Offices have not been filled in the past two years.

In addition to the above challenges, EGAT faces a number of critical programmatic challenges and issues that are discussed in more detail in the Data Sheets that follow. Some of these challenges include:

Fragile States: As EGAT refines its technical assistance and field support to reflect the country typologies articulated in USAID's White Paper, special emphasis will be placed on analyzing and developing new strategies and initiatives for dealing with Fragile States. Because commitment to reform is often weak in these countries, EGAT will have to develop new programmatic responses to development problems that take into account sources of fragility while providing both immediate impact as well as contributing to long-term stability.

Poverty: EGAT continues to search for new and innovative ways to address the challenge of persistent poverty, especially in Africa. EGAT is placing special emphasis on analyzing the factors that constrain poor households from participating in new opportunities and in developing interventions, such as productive social safety nets, property system reforms and secure savings instruments, which allow the poor to assume more risk in their economic pursuits. EGAT is also focusing the donor community's attention on problems regarding persistent poverty and inequality through its leadership role in POVNET, the OECD/DAC's network of donors charged with developing guidance and good practice for promoting pro-poor growth. With EGAT's Assistant Administrator serving as its Chair, POVNET is developing strategies for pro-poor growth in agriculture, infrastructure and private sector development. EGAT will also continue activities to harness private sector support for community-based urban development programs.

Microeconomics: Over the next year, EGAT will develop initiatives to improve the microeconomic environment in developing countries, including efforts to enhance productivity and competitiveness of local enterprises, and to improve the business environment by reducing red tape and strengthening legal systems.

Agribusiness and Marketing: With the roll-out of the Agency's Agriculture Strategy, EGAT will put more emphasis on the development of agribusiness and markets, which are key to economic growth in rural areas of the developing world. In particular, it is developing programs that facilitate rural producers' linkages to markets: they improve the quality of produce to meet global standards; enhance marketing strategies and capabilities; and upgrade packaging and logistics.

Youth/Workforce Development: In many developing countries, 75% or more of the population are under the age of 30. In these countries youth unemployment rates are on the rise and educational systems are not equipped to provide youth with the skills they need to succeed in a fast-changing marketplace. In addition, unemployed youth are vulnerable to crime, violence and drug trafficking. EGAT is developing innovative initiatives to improve youth employability; provide job placement services; improve the sustainability of training programs; and involve the private sector in youth training and employment programs. EGAT will also work closely with the Africa Bureau to address linkages between urban youth unemployment and HIV/AIDS in four of the worst-affected countries in Africa.

Trade Capacity Building: The WTO's Doha Development Agenda recognizes that capacity building must accompany trade negotiations in order for developing countries to participate effectively in WTO trade negotiations, implement current and future trade agreements, and fully take advantage of the benefits of expanding global trade. In the lead up to the WTO's Sixth Ministerial Conference, scheduled for December 2005 in Hong Kong, many developing countries are seeking help in understanding and responding to complex new aspects of the WTO agenda, such as in the areas of services liberalization and trade facilitation. Working closely with USAID's field missions, including the Africa Trade Hubs, EGAT is providing timely and cutting edge assistance to developing countries seeking to participate more effectively in these multilateral trade initiatives. In addition, EGAT is providing a wide range of support for U.S. bilateral free trade initiatives with Central America, the Andean region, the Southern Africa Customs Union, and Thailand.

Other Donors: EGAT works in partnership with other donors to maximize the impact of development resources. The multilateral development banks are key partners in many of EGAT's initiatives. In particular, EGAT works closely with the World Bank on building trade capacity. EGAT's Economic Growth (EGAT/EG) staff represent joint positions among the stakeholders on the governing board of the World Bank-managed Integrated Framework Trust Fund, designed to finance the mainstreaming of trade into the national development plans of least developed countries. In addition, EGAT/EG works closely with the World Bank Investment Team on implementing microeconomic reforms. EGAT also provides funding to the Consultative Group for International Agriculture Research (CGIAR), whose Secretariat is housed at the World Bank, to support new research and dissemination partnerships on genomics, genetic resources, natural resource management, climate change and livestock disease. EGAT's Office of Poverty Reduction (EGAT/PR) supports the World Bank's Consultative Group to Assist the Poorest and plays a leadership role with the Asian Development Bank, European Bank for Reconstruction and Development, Inter-American Development Bank, and African Development Bank regarding basic shelter, urban youth, air and water quality deterioration and transportation system improvements.

EGAT maintains dialogue with key organizations under the United Nations umbrella, particularly the Food and Agricultural Organization (FAO), International Fund for Agricultural Development, World Food Program, United Nations Development Program, and United Nations Educational, Social and Cultural Organization (UNESCO). USAID has played a leadership role in UNESCO's Education for All (EFA) initiative, which aims to achieve universal primary education by the year 2015. Since the U.S. Government's re-entry into UNESCO in October 2003, USAID has sponsored five educational specialists to serve on UNESCO's staff. EGAT's Women in Development Program works closely with the United Nations Fund for Women (UNIFEM) and the United Nations Commission on the Status of Women on gender issues.

EGAT works closely with several bilateral donors to jointly design and co-fund development activities, many of which support Presidential Initiatives. As an example, EGAT's Office of Development Credit is working with the European Union and the Japan Bank for International Cooperation on the Presidential Clean Water Initiative. EGAT's Energy and Information Technology Office (EGAT/EIT) proactively coordinates with bilateral donors to jointly design and share the cost of energy projects, soliciting their participation on advisory committees and undertaking groundwork analysis to attract and leverage subsequent funding from the World Bank and the Inter-American Development Bank. EGAT/EIT also supports and participates in a number of multi-donor efforts, such as the Global Village Energy Partnership, the Partnership for Clean Fuels and Vehicles, and the Partnership for Clean Indoor Air. EGAT/EIT is also working closely with the Italian Government on e-government activities in Macedonia and Iraq. As a member of the US Delegation to the International Tropical Timber Organization, EGAT's Natural Resource Management Office (EGAT/NRM) collaborates with key donors, principally the Swiss and Japanese Governments, to identify viable projects for U.S. Government co-financing.

Finally, EGAT works with numerous U.S. partners, including U.S. Government entities such as the U.S. Department of State, the Environmental Protection Agency and the Department of Agriculture, Non-Governmental Organizations, Private Voluntary Organizations, and private sector businesses and organizations.

FY 2006 Program: EGAT plans $150.6 million for its FY 2006 program. Key initiatives that will be supported in FY 2006 include:

  • South Asia Tsunami Relief and Rehabilitation, with possible use of the Development Credit Authority (DCA) to rebuild infrastructure and promote economic growth.
  • Continued interagency and donor coordination, technical leadership, and field support for trade capacity building, with increasing focus on institutional reforms needed to participate more effectively in the global trading system and manage related economic transitions.
  • Implementation of USAID's new Agriculture Strategy with a focus on strengthening agribusiness and markets.
  • Continued efforts to integrate the poor into mainstream economic development, with a focus on persistent poverty.
  • Increased emphasis on access to modern energy services and regulatory policy reform.

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Thu, 18 Aug 2005 15:41:37 -0500
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