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Europe & Eurasia
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Eurasia Regional

The Development Challenge

The challenge facing Eurasia today is to sustain and further the key democratic, economic, and social reforms now underway. While progress is being made, the remaining challenges are formidable. USAID's review of country performance, which takes into account over two dozen transition indicators, shows that the region lags far behind the "northern tier" graduate countries and increasingly behind countries in south-east Europe.

Strategic Objectives
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While early democratic reforms across the region and recent developments in Georgia are encouraging, lack of democratic reform in several countries along with set backs to democratic development in others is a major challenge. Authoritarian rule remains the norm in the majority of the Eurasian countries, with widespread corruption and incomplete reforms undermining public trust in government and the private sector.

With respect to the economic transition, Eurasian economies are still highly dependent on primary commodities and have weak trade and investment ties outside the region. While lack of reform in some countries ( e.g. Turkmenistan and Belarus) has contributed to their economic isolation, economic policy reform has been appreciable in most Eurasian countries where the focus is now on implementing "second generation" reforms and addressing problems of competitiveness and job creation. Regarding the social transition, the rapid growth of HIV/AIDS, poor health conditions, and poverty and income inequality are growing concerns, as are the depletion of human capital coupled with lack of opportunities for youth. The costly and inefficient health, education, pension, and social safety net systems based on the soviet model need major overhaul.

The USAID Program: The regional program in Eurasia supports 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 women's reproductive health and as HIV/AIDS prevention; and, 4) social capital and public/private alliance initiatives that foster irreversible reform.

  1. Under sector-specific and 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 two regional technical support and training contracts.
  2. Activities under the economic growth rubric foster exchange of experiences and innovative approaches to developing trade networks, fostering competitiveness and meeting international accounting standards. Initiatives will provide regional support to business service providers, encourage market competitiveness, accelerate financial market integration through the harmonization of financial market regulations, and promote the development of financial instruments that meet international standards. Other activities will include accounting reform, anti-corruption activities, and regional support for more efficient and reliable energy systems. Under the democracy rubric, the Bureau will continue to support activities in civil society and rule of law. Activities will focus on promoting independent media, NGO sustainability, and supporting judicial reform and training.
  3. USAID will continue to carry out a number of activities to assist in the social transition. These include efforts directed at infectious disease control, including tuberculosis control, HIV/AIDS, reproductive health and iodine deficiency. In addition, the USAID will continue to support improved health access through medical partnerships and access to the Global Fund for HIV/AIDS.
  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 Eurasia 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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Fri, 14 Jan 2005 15:25:45 -0500
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