Program Data Sheet
517-XXX

USAID MISSION: Dominican Republic
PROGRAM TITLE: Economic Opportunities (Pillar: Economic Growth, Agriculture and Humanitarian Assistance)
STRATEGIC OBJECTIVE AND NUMBER: Increased Sustainable Economic Opportunities for the Poor, 517-XXX
STATUS: New
PLANNED FY 2002 OBLIGATION AND FUNDING SOURCE: $2,775,000 (DA)
PRIOR YEAR UNOBLIGATED AND FUNDING SOURCE: $0
PROPOSED FY 2003 OBLIGATION AND FUNDING SOURCE: $6,000,000 (DA)
INITIAL OBLIGATION: FY 2002     ESTIMATED COMPLETION DATE: FY 2007

Summary: This new Strategic Objective will help ensure that poor Dominicans participate in and benefit from future economic growth in the Dominican Republic. USAID will achieve this objective through support for:

• key economic policy reforms, especially those that affect economic opportunities for poor Dominicans, which improve the country's ability to compete in global markets;
• public-private partnerships in strategic economic sectors such as tourism, fruits and vegetables, specialty coffee, and organic cacao that improve the Dominican Republic's international competitiveness;
• better trade policy formulation and implementation of existing trade obligations which will improve economic competitiveness;
• rural electrification for thousands of Dominicans;
• environmental policy reforms, with public and private sector participation, that help protect the environment and safeguard the economic opportunities it produces; and
• higher quality basic education through community and private sector participation.

Inputs, Outputs and Activities: FY 2002 Program: FY 2002 Program: FY 2002 funds are being notified because this is a new program. DA funds will be used to improve economic policies and strengthen public sector institutions that promote and can sustain economic growth in the Dominican Republic. Through training and technical assistance, USAID will help change public and private sector mindsets in developing and implementing more competitive trade and investment policies and strategies. In addition, USAID assistance will help establish public-private sector partnerships in the tourism, agriculture, agribusiness and rural energy sectors. Funds will also help establish public and private sector collaboration in developing environmental norms and standards that will protect the environment, as well as strengthen public sector institutions responsible for managing environmental assets.

A major constraint to sustained economic growth is the lack of quality education. Dominican education lags behind countries with similar economic conditions, and equity is a challenge, particularly for children in rural areas. USAID will help improve basic education quality through an adopt-a-school concept, by establishing partnerships led by community-based NGOs that links the support of private sector companies and parent-teacher associations to a public school, principally in non-urban areas. DA funds will also help develop and implement education quality indicators (e.g., changes in enrollment, attendance, retention), in selected areas, that can be replicated at the national level. The Global Food for Education Initiative and grants to NGOs will help link communities with schools in education improvement efforts.

Planned FY 2003 Program: FY 2003 resources will be used to increase support to the Competitiveness Strategy Center. The Center is establishing partnerships to increase competitiveness through regional and product initiatives. USAID will also help develop markets for niche agricultural exports (a sector traditionally served by small and medium businesses that employs the poor); encourage small business development; and strengthen trade institutions. Through technical assistance and training, USAID resources will also help form new partnerships in the environment sector to better manage protected areas, and continue development of environmental norms and standards. USAID will continue assistance to improve internal debt fiscal management, including increased reliance on the secondary market as a means of government financing and capital mobilization. DA resources will continue to be directed to expand and develop new energy partnerships for rural electrification. DA funds will also be utilized to help expand the number of schools and private sector organizations participating in the adopt-a-school program. ESF-funded technical assistance for trade capacity building will assist the country in preparing for FTAA negotiations.

Performance and Results: This program begins in FY 2002. Future results include: key economic policy reforms that lead to sustainable economic growth, especially in sectors that employ the Dominican poor; a better informed and proactive business community more competitively engaged in the global economy; enhanced national export capability and an increase in trade opportunities; electricity in rural areas that is affordable, reliable and community-managed which brings economic opportunities to economically disadvantaged and isolated areas; national parks that are better protected and managed with community participation; national and municipal officials that are better prepared to formulate and implement environmental policy; students in selected schools who are prepared to compete in a global economy and participate in democratic processes; and increased civil society and community participation in competitiveness, trade, environment and education reform activities. USAID anticipates that these efforts will sustain economic growth and reduce poverty by the end of the strategy.

Principal Contractors, Grantees, or Agencies: Chemonics International and the Boston Institute for Developing Economies (for economic policy initiatives), International Resources Group (for environment initiatives), National Rural Electrification Cooperative Association International (NRECA), and Creative Associates (for education initiatives). USAID will select new implementing agencies for activities related to adopt-a-school.

US Financing in Thousands of Dollars