Note: This document may not always reflect the actual appropriations determined by Congress. Final budget allocations for USAID's programs are not determined until after passage of an appropriations bill and preparation of the Operating Year Budget (OYB).
MALI
FY 1998 Development Fund for Africa . . . . . . . . . . . . . . . . . $36,000,000 Introduction
Mali is important to the U.S. interests of promoting stability within West Africa and in encouraging the region's political and economic liberalization, which is essential for increased U.S. trade and investment. USAID's work in Mali demonstrates the U.S. commitment to improving social development worldwide through improved access, quality and equity in health and educational services. Mali's success in peacefully resolving an armed ethnic conflict in the North has enhanced its credibility as a leader in West Africa. The country has made remarkable progress in liberalizing its economy and capitalizing on the 1994 currency devaluation. At the same time, it has laid the foundation for a vibrant system of democratic governance, which, though still fragile, may be applicable to other countries in Africa. The establishment of peace in 1995 and the subsequent demobilization of combatants has enabled the Malian Government to focus its attention on promoting decentralized development. For example, the country has made tremendous progress in establishing a sustainable health care system because of the Government's efforts to facilitate the creation and management of health care centers by communities. Similarly, Malian leaders have gained a consensus among political parties, teachers, unions and parents to support the creation of community-financed and managed schools, in response to a large and unmet demand for basic education in rural areas.However, as Mali's leaders further liberalize the private sector and continue to strengthen the decentralization process, they run the risk of creating a backlash from groups accustomed to preferential treatment, such as inefficient businesses and vested government interests. This factor could affect the outcome of the 1997 elections and put in jeopardy the Government's efforts to consolidate democracy and sustain development progress in the social and economic sectors. Continued U.S. assistance is an important support in meeting these challenges. Many Malian Government leaders are eager to explore the U.S. experience as a potential alternative model for improving public and private sector management, in the wake of the rejected Soviet model, abandoned in the early 1980's.
In 1996, Mali was the first African country visited by Secretary of State Warren Christopher. He said that he chose Mali because he thought the country's success in achieving political and economic liberalization was an inspiration to its neighbors. He called Mali "an oasis of freedom, a champion of good governance, and a model for Africa." Malians would like to emulate U.S. management systems and adapt them to Malian conditions. The funding level requested for FY 1998 would accomplish this purpose. This increase above the planned FY 1997 level also is key to consolidating peace in northern Mali, a precondition for development throughout the country.
The Development Challenge
A landlocked Sahelian country with a per capita income of $250 and a population of 9.5 million, Mali has a natural resource-based economy in which cotton, livestock and cereals predominate. Cotton, gold, and livestock are the most important exports. Socioeconomic indicators put the country's living standards among the worst in the world, with an infant mortality rate of 122.5 per 1000 births, a literacy rate of 19%, and a primary school enrollment rate of 42%. Mali's chief development challenges are: (a) a growing population (two-thirds of it under age 25); (b) producers still struggling to take full advantage of the 1994 devaluation of the country's currency; (c) a fragile natural resource environment; and (d) community-level organizations with inadequate skills to play effective roles as partners in the establishment of a decentralized government system.Mali has embarked upon an ambitious path of social, economic and political liberalization and development. The March 1991 youth-led overthrow of the 23-year-old, one-party state stimulated theformation and growth of civic organizations (over 500 new nongovernmental organizations have been registered), as well as 66 private radio stations and more than 25 newspapers and periodicals. Twelve parties contested Mali's 1992 presidential election, and now over 60 parties express freely and vigorously their opinions on public policy.
The World Bank classifies Mali as a severely indebted, low-income country, given that external debt was equal to 152% of its Gross Domestic Product (GDP) in 1994. Despite its difficult debt situation, Mali has had outstanding performance in economic reform, garnering high praise from the International Monetary Fund. The country has qualified regularly for debt relief from bilateral donors. For the fourth consecutive year, Mali has met or surpassed all targets set by international financial institutions. As a result, the International Monetary Fund and World Bank have supported the Government's request for a second structural adjustment program. Mali is the only country in the region to have liberalized virtually all consumer prices, including those for food and fuel. The Malian Government accords priority to the private sector as the engine of economic development and to a radically decentralized administrative structure as the basis for strengthening democratic governance.
Despite these advances, the Malian Government has had difficulty assuring that economic development gains benefit the entire Malian population equitably. Following the large devaluation of the West African currency in 1994, Mali's more efficient farmers and those producing cotton benefitted greatly. However, the cost of living increased significantly for the 20% of Malians who live in urban areas. Inflation increased by 34% that year, while wages increased by only 15% for the small percentage of Malians working in the formal sector. Urban employment increased slowly, due to the delays involved in bringing new investments on line. The price of rice, the major urban staple, has increased but has been moderated by the ability of traders to import rice freely. Preliminary findings from the 1995/1996 demographic and health survey demonstrate excessively high levels of malnutrition among children throughout the country. This phenomenon, unexplained by changes in vaccinations or the seasonal availability of food, suggests that liberalized consumer prices negatively impacted food consumption, at least in the short run.
USAID has been an important partner of the Malian Government and people in their political and economic reform efforts; these efforts have produced tangible results. USAID helped the Malian Government organize two sets of elections since the elimination of the one-party State. Due substantially to USAID efforts, the Malian Government liberalized the cereals market, eliminated export taxes and established both commercial courts to resolve business disputes and administrative courts to resolve disputes between businesses and the Government. USAID helped increase the enrollment of girls in school from 16% to 34% over six years. It played a major role in increasing the percentage of all women employing modern methods of contraception from 1.2% to 5.0% in eight years. For men, the figure rose from 1% to 11% during the same period, reflecting a surge in the sales of condoms. The recent demographic and health survey shows that infant mortality decreased by nearly 20% during the past eight years, an important result of USAID's long-term commitment to development in Mali. USAID's support for agricultural research, extension, credit and environmental management has helped contribute to significant increases in agricultural production and export. In 1996, USAID linked Mali to the Internet via the Leland Initiative project, increasing significantly the access of Malians to information needed for decentralized, private-sector based development. USAID also contributed to the creation of an association of private radio stations, the first of its kind in West Africa. Twelve American and dozens of Malian private voluntary organizations (PVOs) implement over 30% of the USAID program, and their participation has amplified the impact and sustainability of U.S. assistance.
Mali's ability to decrease its dependence on foreign assistance hinges upon the progress it makes in two key areas of socioeconomic development: (1) economic growth, and (2) population growth.
Other Donors
In 1995, bilateral, multilateral and nongovernmental organization donors provided about $550 million in assistance to Mali. The United States, while not among the five largest donors, provided over 5% of this assistance. Other major donors (in descending order of importance) include: the European Union, France, the World Bank, Japan, Germany, the Netherlands, Canada, and Switzerland.FY 1998 Program
Despite Mali's current state of underdevelopment, USAID believes the country has enormous development potential. USAID/Mali's strategic focus, established with significant and very broad-based Malian participation, addresses the obstacles to increasing economic growth and decreasing population growth--the major factors inhibiting socioeconomic development. The long-term goal set forth in USAID's strategic plan is to help Mali eliminate its need for foreign aid. To achieve this goal, USAID is concentrating on the direct delivery of services to communities and businesses. Thus, USAID activities through 2002 aim to: (1) improve access to, demand for and quality of services to help youth under age 25 acquire the knowledge, skills and practices necessary to ensure Mali's sustainable development, (2) increase economic growth through investment in major economic subsectors, and (3) help community organizations work with government to govern the country. USAID's efforts to improve access to and facilitate the use of information will increase the impact of these activities. Having connected Mali to the Internet, USAID will help private sector firms to train Malians to exploit its information.The USAID strategy serves the U.S. national interest in three ways. First, through increasing the capacity of youth, it helps them become empowered, productive and skilled citizens, preconditions for preserving national and regional stability, economic growth and human welfare. Second, with its goal of eliminating the need for foreign aid, it will ease the burden of foreign aid, both through USAID and through International Financial Institutions, on the U.S. Government budget. Finally, through alleviating the obstacles to increasing productivity of economic subsectors, it will help translate political and economic liberalization into increased opportunities for U.S. trade and investment.
Agency Goal: Encouraging Broad-based Economic Growth
Economic growth in Mali has been inhibited by ineffective policies and inefficient management of natural, financial and human resources. USAID's sustainable economic growth program identifies and addresses the obstacles to increasing the value added by each stage of production, processing and marketing in some of the most important economic subsectors. The youth program will focus on improving young people's social and economic behaviors in the sectors of child survival, reproductive and environmental health, basic education and market-relevant skills development. Through improving nutritional status, preventing and controlling infectious diseases (including AIDS), increasing levels of reading, writing and analytical skills and expanding environmental conservation practices, the youth program will increase the potential of youth to contribute productively to the economy as they enter their adult years. The governance program seeks to help community organizations to advocate for improved policies and infrastructure. The information and communication special objective will make information available widely to Malian business people and will provide the international business community with information on investment opportunities and goods and services available in Mali. It also will provide basic development messages throughout the country on rural radio, the mass media of choice.With USAID support in 1996, the Malian Government privatized four large rice mills and allowed 7,500 hectares of irrigable land to be developed by a Malian entrepreneur, thus opening the rice sector to competitive forces and large-scale private initiative. USAID also helped the Government put into operation administrative courts, which allowed private sector firms to challenge the actions of government agencies. USAID's efforts to promote community-managed and community-financed schools contributed to increasing primary school enrollment rates from 22% in 1989 to 42% in 1995. For girls, enrollment increased from 16% to 34% during the same period. Support to Mali's livestockmarketing efforts has helped Mali to boost the value of exports by two-thirds since the 1994 devaluation. Also, USAID engineered the investment of private and other donor funds to finance non-traditional exports, such as green beans and hibiscus flowers. Due in part to these and other USAID efforts, the value of agricultural exports increased by 61% in 1995.
Africa Food Security Initiative. In FY 1998, USAID's efforts in Mali will be bolstered by this new Initiative. Funds will be used to enhance a market information system and the famine warning system, both of which are vital components in the effort to ensure that food is available where and when it is needed throughout the country. In addition, USAID will examine the linkages between Mali's recent successes with increasing agricultural production and household level food security.
Broad-based economic growth can only occur in a supportive political and economic environment. Therefore, USAID is helping the Malian Government in its liberalization efforts as well as in its campaign to decentralize policy-making to locally elected governments.
Strategic Objective 1: Youth--Changed Social and Economic Behaviors Among YouthStrategic Objective 2: Sustainable Economic Growth--Increased Value-Added of Specific Economic Subsectors
Strategic Objective 3: Democratic Governance--Community Organizations in Target Communes are Effective Partners in Democratic Governance, Including Development Decision-Making and Planning
Special Objective 1: Information and Communication--Improved Access to, and Facilitated Use of, Information.Agency Goal: Stabilizing World Population Growth and Protecting Human Health
>USAID/Mali plans to provide $3.2 million for child survival, $2.6 million for HIV/AIDS prevention and $5.1 million for population activities. Mali's high population growth rate of 3.2% has been identified as one of the two key areas inhibiting socioeconomic development. A high rate of population growth limits the country's ability to translate economic growth into an improved standard of living. In the absence of significant reductions in population growth, sustainable development and political stability cannot be achieved.The youth program will achieve greater results than would a traditional sectoral approach because of its integrated approach focused on a demographic group. By targeting youth, the program builds on the momentum of their increasing numbers and responsibility for decision-making. Reducing the rate of population growth now and in the future requires a focus on young people even before they enter their reproductive years. Because decreasing fertility is linked strongly with decreasing infant mortality, the youth program will place a strong emphasis on child survival. Since early childbearing often results from lack of access to contraceptive services, education (especially for girls), and financial resources, the youth program will also address these concerns.
In 1996, USAID's child survival work with five private voluntary organizations (PVOs) led to a significant reduction in infant mortality, malnutrition and child morbidity in several geographic areas. Through financing national demographic and health surveys, USAID verified that its child survival activities contributed to a 20% decline in infant deaths over an eight year period. The number of children enrolled in primary school increased by 9% in 1995, in large part due to USAID efforts to create community-managed schools and train teachers. As the major donor in the family planning sector, USAID claims much of the credit for the increase in the percentage of women using modern contraceptives from 1.2% in 1987 to 5.0% in 1995/1996. The percentage of men employing modern contraceptives, mainly condoms, has been even more striking, moving from 1% in 1987 to 11% in1995/1996. Among all men aged 15-19, the impact of USAID's family planning and AIDS prevention programs has been very significant, given that over 30% of this age group was found to be using condoms. USAID-funded PVOs in several limited geographic zones helped raise the rates of modern contraceptive use to above 55%.
Despite the significant progress made, the percentage of couples practicing modern methods of contraception is still lower than is needed to reduce population growth meaningfully. Similarly, despite noteworthy improvements in infant and child health and reproductive health, levels of immunization coverage remain low, nutritional status appears to be declining, malaria remains an important cause of infant and child deaths, and increasing levels of sexually-transmitted diseases and AIDS are challenging traditional health care financing systems. The Malian Government's commitment to decentralized health care delivery needs continued support and strengthening at all levels. Mali's health sector policy places responsibility for health care delivery and management at the level of the community. Consequently, USAID is targeting a large portion of its assistance directly to communities. Its new activities will be built on innovative public-private partnerships, in order to respond to the high levels of unmet demand among youth for reproductive and child survival services. Mali's extremely low school enrollment and literacy levels are barriers to increasing access to and demand for these services. Therefore, USAID is convinced that its investment in primary education, and particularly girls' education, will increase the impact of its child survival and reproductive health activities.
The Malian Government's campaign to devolve decision-making authority to locally elected bodies in 1997 will create a more supportive environment for community initiatives in family planning, health and education. Communities will have greater liberty and greater resources to organize their own health centers and schools. USAID, working through PVOs, plans to support community organizations in FY 1998 to ensure their ability to undertake these initiatives. USAID also will improve the effectiveness of these organizations through increasing their access to relevant information.
Strategic Objective 1:
Youth--Changed Social and Economic Behaviors Among YouthAgency Goal: Building Democracy
Following the revolution of 1991, Malians installed a stable system of constitutional democratic governance. The transition government oversaw the first free, multiparty elections in Mali's history leading to the establishment of a democratically elected government. The advent of democracy inspired Malians to create thousands of citizens' groups. However, Malian institutions, both governmental and nongovernmental, remain very weak. As a result of the current decentralization campaign, new local governments will be elected in 1997. As part of a multi-donor effort to improve governance at all levels, USAID is focusing on preparing the civil society to be a full partner in governance with the soon-to-be elected local governmental bodies as well as the Central Government.
In FY 1996, USAID sponsored several activities to support democratic governance. With USAID support: three Malian women attended an Africa-wide seminar on women in politics, and they returned to Mali to initiate a lobbying group on this issue; two Malian parliamentarians and one civil society representative observed a Presidential nominating convention; 30 women parliamentarians and municipal counselors were trained in political science and tools for legislative strengthening; the Presidency and Prime Minister's Office improved their ability to manage strategically as well as to communicate with each other and with the Malian public; the Malian Decentralization Commission documented the boundaries of newly established communes using a computer-based geographical information system; a Malian non-governmental organization (NGO) organized a network of NGOs to ensure the fairness of the 1997 elections; the Parliament received guidance from the National Democratic Institute to revise the electoral code and create an independent electoral commission; and 25 Malian NGOs helped parents associations improve their ability to manage or contribute to the management of primary schools. To help the Malian Government consolidate peace with rebelliousTouaregs in the North, USAID contributed to a multidonor demobilization trust fund, resulting in the demobilization of 9,500 ex-combatants.
Mali's community organizations face numerous obstacles in playing responsible roles within a system of democratic governance. Their members are frequently illiterate and lack basic organizational skills. Poorly developed advocacy skills impair their ability to carry out development activities. Under the democratic governance program, USAID will help Malians to address all of these issues. In so doing, USAID will increase the Malian people's capacity to maintain and build on all USAID development investments. Under the information and communication special objective, community radio stations will take on a stronger role in civic education.
By 1997, new locally-elected governments are expected to be in place. For these fledgling governments to govern well, they will need to work in partnership with community organizations. USAID funding will prepare community organizations to play effective roles within these partnerships.
Strategic Objective 3:
Democratic Governance-- Community Organizations in Targeted Communes are Effective Partners in Democratic Governance, Including Development Decision-Making and PlanningAgency Goal: Protecting the Environment
Encompassing part of the Sahara Desert, Mali is a Sahelian country with a fragile environment. Unabated population growth places increasing pressure on natural resources. While the country is now able to export more food than it imports, the effort to feed increased numbers of Malians will force some farmers to use environmentally risky farming practices. USAID has addressed these issues by funding agricultural research, extension, and private voluntary organization-managed natural resource activities, and by assisting in the revision of the country's Forestry Code. The sustainable economic growth program will address environmental constraints to increasing productivity on a sustainable basis. The youth program will integrate environmental education into the primary school education curriculum. It also will train youth in income-generating activities that are natural resource-based and designed to protect the environment. The governance program will help community organizations advocate for more appropriate natural resource management policies. The information and communication special objective will help Malians learn about environmental policy, issues and practices through targeted messages and programs broadcast over private community radio stations.
USAID's investment in agricultural research and extension has resulted in considerable increases to production. USAID interventions have influenced 14,000 farmers in one geographic zone to adopt 17 environmentally appropriate technologies for increasing their production. USAID also helped animal slaughterhouses to better manage their waste products. With USAID support, the revised Forestry Code was distributed widely in 1995. Communities throughout Mali increased their income through working with USAID-funded PVOs to better manage their natural resources.
The Malian Government will delegate significant authority to the soon-to-be elected rural governments to manage the resources in their districts. USAID will help them to identify those environmental issues that have the greatest impact on sustainable economic growth. Environmental education relevant to local conditions will be integrated into primary school curriculums. If USAID determines that other environmental issues at the regional and national levels constrain economic growth, it will help to address them in partnership with the Malian Government and other donors.
Strategic Objective 2: Sustainable Economic Growth--Increased Value-Added from Specific Economic Subsectors
MALI FY 1998 PROGRAM SUMMARY
Encouraging Broad-based Economic Growth Stabilizing Population Growth and Protecting Human Health Protecting the Environment
Building Democracy
Providing Humanitarian Assistance
TOTALS USAID Strategic Objectives
1. Youth--Changed Social and Economic Behaviors Among Youth - Dev. Fund for Africa
6,700,000
10,900,000
---
---
---
17,600,000
2. Sustainable Economic Growth--Increased Value-Added from Specific Economic Subsectors - Dev. Fund for Africa
10,400,000
---
5,100,000
---
---
15,500,000
3. Democratic Governance--Community Organizations in Targeted Communes are Effective Partners in Democratic Governance, Including Development Decision-Making and Planning - Dev. Fund for Africa
1,100,000
---
---
1,000,000
---
2,100,000
SP 1: Information and Communication--Improved Access to, and Facilitated Use of, Information - Dev. Funds for Africa
800,000
---
---
---
---
800,000
Totals - Dev. Fund for Africa
19,000,000
10,900,000
5,100,000
1,000,000
---
36,000,000
USAID Mission Director: Joel Schlesinger
ACTIVITY DATA SHEET
PROGRAM: MALI
TITLE AND NUMBER: Changed Social and Economic Behaviors Among Youth, 688-S001
STATUS: Ongoing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1998: $17,600,000 DFA
INITIAL OBLIGATION: FY 1997; ESTIMATED COMPLETION DATE: FY 2002
Purpose: To change social and economic behaviors among youth under the age of 25. To give young Malians a clear stake in a stable, progressive Mali by boosting as many as possible into the middle class. This will be accomplished through improving national and community capacity in the areas of basic education, child survival, reproductive health (including sexually transmitted infections/AIDS, family planning and safe motherhood), environmental education and job skills development.
Background: USAID has made significant investments and achieved important results in the sectors of child survival, reproductive health (including family planning) and basic education. While these activities are essential for Mali's development, USAID concluded that they could be more effective if they were better integrated and coordinated. Mali, like many developing countries, has a population of which over two-thirds are younger than 25. Reducing population growth and increasing economic growth cannot be accomplished without targeting those younger than 25. Many young people are now making child-bearing decisions and engaging in economic and environmental management activities that will impact Mali's future. Soon, these Malians and those even younger will constitute the country's most productive human resources. Therefore, USAID will target its child survival, reproductive health, basic education, environmental education and job skill development activities to youth. The Malian Ministries of Health and Basic Education, as well as the Presidency, understand and support this approach. They believe that in addition to improving the quality of life, a true focus on youth will lead to greater political stability. The program integrates activities in three ongoing projects--Community Health and Population Services, AIDS and Sexually Transmitted Diseases Awareness and Prevention, and Basic Education Expansion--as well as several grants under the Private Voluntary Organization Co-Financing project. To maximize impact, program services will be concentrated in those geographic areas which allow the greatest synergy with other development activities.
USAID Role and Achievements to Date: USAID is targeting children and youth from birth to the age of 25. Activities include child survival, basic education with an emphasis on girls, environmental education, job skills, reproductive health services (including family planning and HIV/AIDS prevention and control), and development of youth groups. With USAID assistance, infant mortality has decreased, in some targeted areas dropping from 108/1,000 in 1989 to 49/1000 in 1994. Out of each 1,000 girls entering primary school, the average number completing sixth grade has increased from 236 in 1990 to 388 in 1993. Between 1990 and 1995, the number of girls entering first grade increased by 83% and enrollment in grades one through six increased by 60%. As the major donor in the family planning sector, USAID claims much of the credit for the increase in the percentage of women using modern contraceptives from 1.2% in 1987 to 5.0% in 1995. In Bamako, the 1995 rate was 16.4%. In part due to USAID efforts, in 1995 83.9% of women who knew about AIDS were able to cite at least one means by which the disease is transmitted.
Description: USAID seeks two major sets of results with respect to youth: healthier young women and men making responsible decisions about child survival and reproductive health, and better educated young women and men with skills relevant to the market economy. Both sets of results focus on increasing access to and demand for social services, improving their quality, increasing demand for them and improving the capacity to provide these services in targeted geographic areas. To establish a firm basis for future planning and measuring impact, USAID will finance a national demographic and health survey, a study on the needs and potential of youth and several surveys on Malians' knowledge, attitudes and practices regarding health and education. Several major activities will contribute to achievement of the results of the youth program, including sponsoring information, education, andcommunication programs that address such issues as AIDS prevention, breastfeeding, excision, and girls education; improving the training of health staff, particularly on family planning and reproductive health for youth; institutionalizing norms and procedures for child survival and reproductive health; establishing training programs to provide youth with skills and to share information on AIDS and reproductive health; constructing community-managed schools and rehabilitating public school classrooms: helping the Malian Government improve its logistics management of essential school supplies; institutionalizing school health education programs; and improving the quality and sustainability of government supervision of service delivery, both for education and health services. Investing in youth rather than in the population at large is an effective way to focus resources and sustain the desired behavior changes, since young people, who constitute the bulk of Mali's population, will pass on the behavior to succeeding generations.
Host Country and Other Donors: USAID was the fourth largest donor in health, social development and human resources in 1993, after the World Bank, Canada, and the United Nations Children's Fund. Other major donors include Japan, the Netherlands, Germany, and Switzerland. The World Bank coordinates two multi-donor projects, one in health and family planning and one in education, which provide fora for donor coordination. Under the multi-donor education project, USAID is the second largest donor. Other major donors include France and Canada. USAID coordinates its assistance in basic education with other donors' assistance to secondary education. The Malian Government funds the human resources associated with these projects.
Beneficiaries: Youth in targeted geographic areas will be the major beneficiaries of this program. However, services will not be denied to Malians over the age of 25. Services will be integrated within targeted geographic areas to have the maximum effect on the youth in those areas.
Principal Contractors, Grantees, or Agencies: USAID will implement these activities through contracts with private firms, such as John Snow, Inc., and grants to U.S. PVOs such as Plan International, Africare, World Education and Save the Children.
Major Results Indicators (by total and by gender) Baseline TargetIncreased contraceptive rates for modern methods for 15-24 TBD 1 TBD 1
year olds
Increased percentage of children 12-23 months receiving TBD 1 TBD 1
full range of immunizations
Increased percentage of 7-12 year olds enrolled in 36.4% 2 45% 3
primary school
Increased percentage of students attaining sixth grade 41% 2 49% 3
Increased percentage of 7 year olds attending first grade 33% 2 41% 3
1 To be determined based on results of Demographic Health Survey, available in January 1997
2 Based on 1994 data
3 Targets for 1998
ACTIVITY DATA SHEET
PROGRAM: MALI
TITLE AND NUMBER: Sustainable Economic Growth, 688-S002
STATUS: Ongoing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1998: $15,500,000 DFA
INITIAL OBLIGATION: FY 1997; ESTIMATED COMPLETION DATE: FY 2002
Purpose: To increase the value-added of specific economic subsectors. This will be accomplished through increasing access to financial services and boosting Mali's competitiveness in producing and marketing cereals, livestock, and non-traditional products.
Background: Following years of poor performance, Mali's economy in 1995 showed signs of responding to the 1994 devaluation, as economic growth jumped to 6%. The long-awaited 1994 currency devaluation forced Malians to pay more for imported goods and services, but increased the country's economic opportunities. The devaluation needs to be accompanied by a variety of technical, regulatory and economic initiatives to enable both rural and urban Malians to take full advantage of these opportunities and improve their quality of life. The USAID program supports the efforts of the Malian Government and private sector to address comprehensively the structural constraints in some of the subsectors contributing most to economic growth: livestock, cereals, financial services and non-traditional products. It consolidates the ongoing Animal Productivity and Export and the Upper Niger River Development projects, and also incorporates all or part of the following projects: Food and Agricultural Policy Support, Strengthening Research Planning and Commodities Research, and Private Voluntary Organization Co-Financing. USAID's efforts to improve economic policy coordination among West African countries will contribute to the success of this program
USAID Role and Achievements to Date: USAID's assistance has focused on agricultural research and extension, resolution of marketing problems, privatization, export promotion, mobilization of savings, and microenterprise. USAID-sponsored research resulted in the adoption of two new cropping practices and eight new technologies in several geographic zones, which have increased farm productivity and income. USAID has contributed to achievement of a 59% increase in agricultural production in the Upper Niger River Valley, a major agricultural zone, between 1989 and 1995. It also helped Mali regain its role as a cereals exporter. Growth in grain production outpaced growth in population during this same period. With USAID assistance, 454 savings and loans associations have provided over $750,000 in credit to almost 18,000 Malian women and men. USAID investments in the livestock sector helped producers and traders to increase the value of exports by two-thirds following the 1994 devaluation. USAID-funded export promotion activities are responsible for half of the 10,000 tons of green beans valued at $7 million exported to Europe in 1995.
Description: For each subsector, USAID seeks an improved policy environment, better use of technology, improved skills, and greater access to financing and relevant information. For livestock, activities include improving animal production (for cattle and poultry) through feed processing units, encouraging the use of cattle byproducts, developing livestock product processing units for meat, hides and skins, and developing commercial transport of live animals and meat for local marketing and export. These activities will be complemented by efforts to increase access to private veterinary services, develop a livestock information system and encourage the governments of importing countries to remove tariff and nontariff barriers. For cereals, activities include improving land tenure policy, promoting private and community investment in irrigated rice production, improving natural resource management practices in cereals production, developing cereals-based products, and promoting cereals exports. Increasing access to credit and business training and improving the USAID-funded market information system is fundamental to these efforts. For financial services, activities include developing an appropriate regulatory framework, developing sustainable microfinance institutions, increasing bank credit to these institutions and increasing access to financial services throughout the country. For non-traditional products, activities include developing air cargo handling capacities, improving post-harvest storage and processing for fruits and vegetables, improving the access of exporters to market information and helping financial institutions to understand the needs of exporters. Together, the private sector emphasis of this program and USAID's participatory approach are expected to create the demand needed to sustain these activities after USAID funding ends.
Under the new Africa Food Security Initiative beginning in FY 1998, USAID would use the additional funding to strengthen Mali's Famine Early Warning System and Cereals Market Information System. These funds are particularly key to consolidating peace in food insecure northern Mali, a precondition for development throughout the country. In addition, USAID/Mali will analyze the linkages between agricultural growth and household level food security, to help ensure that the benefits from Mali's recent progress in agricultural production are being spread to as many people as possible. . It is essential that
Host Country and Other Donors: In 1993, USAID, the World Bank and France were the largest donors in agriculture and natural resources. Other major donors included Germany, the Netherlands, the European Union, Denmark, the African Development Bank and Japan. Several donors, along with the Malian Government, jointly manage a cereals marketing reform project; USAID is an active player in this body. In its work with another group focusing on reform of the rice sector, USAID identified the need for and supported the privatization of four large rice mills. France funds a large mixed agricultural and livestock project in southern Mali. Donor coordinating bodies in the sectors of livestock and agricultural research meet regularly. While donors finance almost all of the investment budget of the Malian Government, the Government funds the human resources associated with donor projects.
Beneficiaries: The program will have its greatest impact on the rural areas, where 80% of the population lives. It also will help increase employment and income in the urban areas, particularly through support of the microenterprise activities of women and artisans. Increased personal income will have the indirect effect of increasing both consumption of locally-produced products and government tax revenues.
Principal Contractors, Grantees, or Agencies: USAID will implement these activities through contracts with Title XII universities, such as Washington State and Texas State Universities; a disadvantaged enterprise, RONCO; and grants to U.S. PVOs, such as Appropriate Technology International, World Education and CLUSA.
Major Results Indicators: Baseline 1 Target 1_________________________________Increased value of financial services and % of GDP TBD TBD
Increased value of the livestock sector and % of GDP TBD TBD
Increased value of the cereals sector and % of GDP TBD TBD
Increased value of non-traditional products and % of GDP TBD TBD
Increased share of domestic savings as a % of total savings TBD TBD
1 To be determined in January 1997
ACTIVITY DATA SHEET
PROGRAM: MALI
TITLE AND NUMBER: Democratic Governance, 688-S003
STATUS: Ongoing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1998: $2,100,000 DFA
INITIAL OBLIGATION: FY 1997; ESTIMATED COMPLETION DATE: FY 2002
Purpose: To make community organizations in targeted communes effective partners in democratic governance, including decision-making and planning for development. This will be accomplished by improving the capacity of community organizations to manage themselves democratically, federate and advocate for changes in government policies.
Background: After the March 1991 revolution, Mali committed itself to a multi-party democracy and a policy of decentralization. Malians demanded a democracy in which local populations could participate in decisions related to their daily lives. After extensive analysis of democratic governance in Mali and dialogue with a broad spectrum of Malians, USAID concluded that its program impact would be increased significantly through promoting a system of democratic governance in which community organizations, as the base of civil society, participate as equal partners in sustainable national development efforts.
USAID Role and Achievements to Date: Many of USAID's democratic governance activities have supported local nongovernmental organizations (NGOs) and community organizations (such as community school management committees, civic groups, agricultural producer associations, health committees and village associations). As a result, these community organizations have been able to build and manage their own schools and community health centers effectively and to manage their income-producing activities better. Some of them have engaged in civic action, resulting in changes in government policies. For example, the USAID-funded Child Survival Pivot group, which brings together dozens of Malian NGOs and associations, has helped shape national child survival, family planning and AIDS prevention policies. USAID activities have contributed to the participation of civil society in development decision-making and advocacy, resulting in increased primary school enrollment and basic health coverage in Mali. For example, USAID funded two private voluntary organizations to help Malians in hundreds of villages form school committees to build, manage and finance their own schools. These committees successfully lobbied the Malian Government to provide adequate school supervision. USAID also funded a World Education activity to improve the democratic self-governance of 52 student-parent associations in public schools, build a federation of these associations and improve their capacity to advocate and work for better school conditions. In the health sector, USAID has supported the efforts of community organizations to create health centers as well as the efforts of hundreds of community health centers throughout Mali to federate. In other sectors, the Cooperative League of the USA received USAID funding that helped village committees lobby successfully for the privatization of rural transportation. With support from USAID, the Near East Foundation helped community organizations to lobby for reform of the government's forest management policy, resulting in major reforms. USAID also trained leaders of ten cooperatives in financial management and cooperative legislation.
Description: USAID focuses its activities on two major areas: (1) helping target community organizations to engage in democratic governance and civic action primarily at local levels; and (2) helping put in place an enabling environment that empowers community organizations, NGOs and federations. USAID is also monitoring the Malian Government's steps toward decentralization, which is essential for USAID to achieve its intended results. To help community organizations engage in democratic governance and civic actions, USAID will provide them with training and technical assistance, fund the creation of local democratic governance information centers, and provide micro-grants for civic action. To ensure sustainability of community organizations, USAID will strengthen the capacity of local NGOs, federations and representative partner organizations, and fund local NGOs andfederations through providing them with technical and management assistance. To help put in place an empowering enabling environment, USAID will identify, analyze and address constraints in existing regulations affecting community organizations, NGOs and federations. It also will carry out civic education campaigns on decentralization and laws and policies affecting community organizations, including the translation and dissemination of relevant laws and regulations.
Host Country and Other Donors: The Malian Government is in the process of implementing an ambitious decentralization campaign. Many donors are supporting the government in these efforts, including the World Bank, the United Nations Development Program, France, Germany, the European Union, the Netherlands, Switzerland and Canada. The Government is funding the costs of personnel and management. Following the elections of the new communal governments in 1997, donors are expected to assist the local populations in establishing the relevant governing bodies, while USAID will focus its funding on civil society.
Beneficiaries: Community organizations at village and commune levels are the major beneficiaries. These institutions are regarded as the most representative of Malian civil society. Over the planned life of this program, USAID will reach approximately 750 community organizations in 20% to 25% of the country's communes, which number over 600. Other community organizations in other communes are expected to replicate spontaneously USAID's efforts.
Principal Contractors, Grantees or Agencies: USAID will implement activities through private nonprofit organizations, including U.S. PVOs such as World Education, Save the Children and CARE.
Major Results Indicators: Baseline 1 Target 1
Percent of total target community organizations that have TBD TBD
affected two or more development decisions.
Number of regional/national government decisions affected TBD TBD
by target intermediary non-governmental and community
organizations.
Percent of target community organizations that have TBD TBD
formed good partnerships with local governments in
delivering services.
Percent of target communes in which new community TBD TBD
organizations have formed during the year.
Percent of target communes in which non-target community TBD TBD
organizations adopt civic action practices.
Percent of target community organizations that have TBD TBD
expanded their development services and activities.
_____________________________________
1 To be determined following a baseline survey in January 1996
ACTIVITY DATA SHEET
PROGRAM: MALI
TITLE AND NUMBER: Information and Communications, 688-SP01
STATUS: Ongoing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1998: $800,000 DFA
INITIAL OBLIGATION: FY 1997; ESTIMATED COMPLETION DATE: FY 2000
Purpose: To achieve improved access to, and facilitated use of, information. This will be accomplished through helping Malian private, public and nongovernmental associations to exploit the Internet as well as through increasing the coverage of community radio and its capacity to inform Malians.
Background: Reliable and timely information is essential to any society's social, economic and political development. In Mali, full access and capacity to utilize information are limited. Information is difficult to access and manage because telecommunication systems are underdeveloped, mass media have just begun to spread throughout the country, literacy rates are low, access to official data is limited, and national libraries do not exist. These factors, combined with Mali's present economic, political and social environments, indicate the great value of activities concerned with expansion of information and communication. Malians need development information that is useful, well-organized, and applicable to their lives to benefit both themselves and their country.
USAID Role and Achievements to Date: Through the Leland Initiative, the Internet connectivity project of USAID's Africa Bureau, USAID connected Mali to the Internet in 1996, allowing Malians to have access to all Internet services. USAID prepared a telecommunications assessment, which identified no policy constraints in the area of information access, and which paved the way to the establishment of a national Internet gateway system in which private sector Internet service providers will play a leading role. With USAID assistance, an association of private, community radio stations was created, and community radio station staff received professional, technical and management training. Moreover, several American private voluntary organizations (PVOs) have launched well-received activities to provide information access over the past few years. For example, the Near East Foundation sponsors a rural radio station in northern Mali, the Cooperative League of the U.S.A. is sponsoring a rural newsletter, and CARE and Africare sponsor newsletters on various technical topics.
Description: Activities under this program will focus on expanding the dissemination of existing information. The information and communication program consists of three sets of results: (1) enhancing the existing liberal enabling environment in the information and communication sector; (2) increasing the number of Malians who obtain and use current development information; and (3) enhancing communications. USAID has undertaken a telecommunications policy analysis, and will propose legislation similar to the U.S. Freedom of Information Act to make public information readily accessible to all Malians. Community radio staff and a federation of free radio stations will be trained in USAID program-related themes as well as in management and technical areas. USAID will provide community radio stations with spare parts and maintenance equipment to ensure the ability of the radio federation to maintain the broadcast equipment. To ensure the sustainability of community radio stations, USAID will help them to develop programming responding to the needs of donor and NGO sponsors. With USAID assistance, selected schools, nongovernmental organizations (NGOs), PVOs, the local Chambers of Commerce and Agriculture, and the private sector will gain on-site access to the Internet and develop the capacity to exploit its multiple resources. An information resources center will be established at USAID to promote and demonstrate Internet use and increase demand. In addition, several "pages" will be set up on the Internet's World Wide Web to provide business, investment, cultural, tourist, educational, and other information on Mali. Activities under this program will draw upon expertise from the Leland Initiative, as well as from central AID/Washington projects that promote information technologies as a development tool (e.g. GreenCOM, Global Communications and Learning, GLOBE, AfricaLink, etc.).
Host Country and Other Donors: The Malian Government highlighted information and communications as one of the eight themes it presented at the Donor Round Table for Mali held in 1994. In September 1996, the President of the Republic of Mali co-chaired an international conference in Geneva on new information and communication technologies in Africa, and presented Mali's plans to enter into the information revolution. Mali has established policies supporting community-owned rural radio and is working with USAID to insure its policies promote the use of the Internet and increased access to government information. The Government has created a commission to ensure that all political parties have equal access to the mass media. USAID helped organize a multidonor group to coordinate assistance to community radio. To make Internet services available to users, USAID is collaborating with the Canadian International Development Agency (CIDA). CIDA's efforts focus on financing telecommunications infrastructure (i.e., making it available nationally), while USAID is building on its experience in establishing development information and communications systems.
Beneficiaries: It is expected that all levels of Malian civil society will benefit from this program.
Principal Contractors, Grantees or Agencies: USAID will implement this program primarily through the private sector and with grants through private nonprofit organizations, including U.S. PVOs and local NGOs . These organizations have not yet been identified.
Major Results Indicators: Baseline TargetPolicies to enable improved public access to New Continually
information Constitution Favorable
Policy
Environment
Improved community radio coverage TBD 1 +10% 2
Improved access to information through increased 5 3 13 2
number of information providers
Increased number of users obtaining information 0 3 TBD 1
about Mali via an Internet WWW site
Increased number of Internet users in Mali TBD 1 +24% 2
_______________________
1 To be determined by February 1997.
2 Targets for 1998
3 Based on 1996 data
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