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Europe Regional

The Development Challenge

USAID's review of country performance, which takes into account over two dozen transition indicators, shows that although considerably beyond Eurasia countries with respect to key democratic, economic, and social transition measures, the Southeast European transition countries lag behind the "northern tier" European countries that have graduated from bilateral USAID assistance. While moving in the right direction they still face a number of obstacles to reach these reform targets and ensure a sustainable transition. Unresolved ethnic tensions lay below the surface and could easily re-emerge without institutional mechanisms for inter-ethnic understanding and cooperation. Weak labor markets combined with large youth populations pose special challenges, and corruption remains an issue across the region.

Please note: All documents are in pdf format 180-0120: Fiscal Reform 180-0130: Private Enterprise Development 180-0140: Strengthening the Financial Sector 180-0150: Sustainable Energy Systems 180-0160: Better Environmental Management 180-0210: Civil Society 180-0220: Rule of Law 180-0230: Local Government and Urban Development 180-0320: Health Promotion and Care 180-0340: Social Sector Reform 180-0420: Cross-Cutting Programs Program Summary Tables Complete USAID/Europe Regional Program

Many of the European transition countries aspire to membership in regional organizations such as the European Union (EU) and NATO, and while countries scheduled for EU accession will gain immediate benefits, there may be a cost to those not yet ready for membership (e.g., The Former Yugoslav Republic of Macedonia, Albania, Kosovo, Serbia and Montenegro, Bosnia and Herzegovina, and Croatia). These entities are small and poorly integrated among one another, and maintaining momentum for reform among them will be particularly challenging.

The USAID Program: The regional program in Europe includes multi-country and region-wide interventions that promote the achievement of bilateral assistance goals, but cannot be easily funded bilaterally. The regional program focuses on four distinct types of activities: 1) analytical efforts which support strategic budgeting and performance monitoring; 2) economic and democracy initiatives which promote regional integration; 3) Administration priorities and Congressionally-mandated programs, particularly in health such as women's reproductive health and HIV/AIDS prevention; and 4) social capital and public/private alliance initiatives that foster irreversible reform.

1. Under sector-specific cross-cutting program support objectives, USAID will carry out an analytical agenda to strengthen strategic budgeting and program effectiveness. Activities will include monitoring and analysis of country progress, implementing a modest regional evaluation program, carrying out various sector-specific analyses, and maintaining demand-driven regional technical support and training contracts.
2. Economic growth activities support regional infrastructure development and foster innovative approaches to enhancing competitiveness and meeting international standards. Building on the successful Regional Infrastructure Project for Southeast Europe under the Stability Pact, USAID will establish three legacy institutions: the Balkans Infrastructure Development Facility (a revolving fund to develop public infrastructure in water, transportation and energy); the Balkans Infrastructure Investment Guarantee Fund (applying Development Credit Authority support to private investment in public infrastructure); and the Sava River Basin Commission for managing navigation and flood control. Other regional initiatives will seek to accelerate financial market integration, and promote the development and use of debt and mortgage instruments. In the energy arena, USAID assistance will create a regional electricity market in Southeast Europe and will support more efficient and reliable energy systems. In democracy, USAID will support the development of independent media, will continue to engage civil society in pressing for legal reform, will promote regional networking among local NGOs, and will promote cooperation among Balkan labor union leaders.
3. USAID will continue to carry out a number of activities under the social transition rubric in response to Congressional directives. These include efforts directed at infectious disease control (including tuberculosis control), HIV/AIDS, reproductive health, and iodine deficiency. In Southeastern Europe, a cross-border HIV/AIDS initiative will link NGOs to promote safer reproductive health practices. In addition, USAID will continue to support improved access to health through partnerships.
4. USAID will also support innovative regional initiatives aimed at fostering reform through strengthening values, and enhancing public/private alliances as part of the Global Development Alliance (GDA) effort.

Other Program Elements: The Europe regional program complements bilateral assistance programs and does not contain other program elements of its own.

Other Donors: Other donors are discussed in the country overviews of the bilateral programs supported by the regional program.

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