THE DEVELOPMENT CHALLENGE: With the end of the two-year border conflict with Ethiopia, Eritrea has begun plans for post-conflict reconstruction. Eritrea is among the poorest countries in the world, ranked at 148 out of 162 countries in the United Nation Development Programme's Human Development Index for 2001. Life expectancy is 51 years, while infant mortality is estimated at 66 deaths per 1,000. The HIV/AIDS epidemic is at an early stage in Eritrea, but the risk of rapid spread is already high. The past mobilization of a large number of Eritreans aged 18-40 years, and the planned demobilization may boost transmission and carry HIV to rural areas.
| Despite Eritrea's rank as one of the poorest countries in the world, it ranks 31st in healthy life expectancy due to a high commitment to health care and a low level of corruption. |
Eritrea faces a number of new development challenges, including post-conflict reconstruction, chronic drought, low skill and education levels, limited natural resources, demobilization and refugee resettlement. According to International Monetary Fund and Central Bank of Eritrea estimates, Eritrea experienced a negative GDP growth rate of minus 8.2% in 2000. However, GDP is projected to increase by a significant amount in 2001; contingent on tax and other reforms, it could reach 7%. Per capita gross domestic product (GDP) in 2000 was estimated at $200. The budget deficit was estimated at 48% of GDP, while external debt was estimated at $300 million, or 49% of GDP.
U.S. national interests in Eritrea are two-fold. First, successful implementation of the peace agreement between Eritrea and Ethiopia will lessen conflict and enhance regional stability in the Greater Horn of Africa. Second, Eritrea has been and remains a staunch U.S. ally in combating global terrorism.
THE USAID PROGRAM
|
FY 2002 Estimate: $10.338 million | FY 2003 Request: $10.427 million |
USAID has three objectives in Eritrea: increase the quality, availability and use of primary health care services; expand rural incomes and employment; and develop human potential for economic and democratic development through training and access to information through the Internet. FY 2002 funds will be used to implement ongoing programs in health, rural income expansion and human potential development, and to expand HIV/AIDS prevention efforts. New activities will support the demobilization and reintegration process and to expand information technology initiatives. The specific activities to be funded with FY 2002 and 2003 appropriations are described in more detail in the following Program Data Sheets. A new strategy is being developed, and new notifications will be provided for FY 2003 funds once the strategy is approved.
OTHER PROGRAM ELEMENTS: In FY 2001, USAID/Washington and the Department of Agriculture provided food assistance for internally displaced people, other war affected groups and drought victims. In addition, the Department of State's Office of Population, Refugees and Migration provided assistance for the repatriation of refugees from Sudan. USAID/Washington humanitarian assistance also supported water and sanitation and health services for internally displaced groups, and for seeds and tractor services for drought-affected areas. Eritrea also benefits from USAID/Washington projects in health, information technology, women in development, human capacity development, and conflict and famine early warning systems.
OTHER DONORS: Italy and the United States are Eritrea's first and second largest bilateral partners, while the World Bank (demobilization, economic recovery, health, human capacity development) and European Union (energy, roads, education, food) are first and second overall. UN agencies manage a diverse portfolio largely funded by other donors. Other major bilateral partners are the Netherlands, Denmark, Norway, Sweden, France and Germany.
Program Data Sheets
- 661-001 Increased Use of Primary Health Care Services by Eritreans
- 661-002 Increased Income of Enterprises, Primarily Rural, with Emphasis on Exports
- 661-003 Increased Capacity for Accountable Governance at Local and National Levels
|
