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	Statement of the Administrator Summary of FY 2005 Budget Request Program Highlights Management Improvements USAID Support Budget
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Summary of FY 2005 Budget Request

This chapter describes the FY 2005 budget request for proposed appropriation accounts. All USAID-managed programs, regardless of account, address our strategic framework, as represented by the following three program pillars:

Economic Growth, Agriculture and Trade (EGAT)
Global Health (GH)
Democracy, Conflict and Humanitarian Assistance (DCHA)

The chapter following this summary of the budget request, "Program Highlights," details new priorities and initiatives to address the changing international environment.

For FY 2005, the President is requesting appropriations under the Foreign Operations Subcommittee of $7,637,800,000 in discretionary funds for USAID-administered programs, including those programs jointly administered with the State Department and associated management costs. This excludes $1.45 billion the President has requested for the Global AIDS Initiative, to be coordinated by the State Department; for which agency and/or private organization allocations are yet to be determined. It also excludes the Millennium Challenge Account of $2.5 billion. Also requested is $1,185,000,000 in P.L. 480 Title II, which is appropriated through the Department of Agriculture but is managed by USAID. The total request including P.L. 480 is $8,822,800,000. Levels do not include any potential funding through USAID from the new Millennium Challenge Account.

The tables and descriptions that follow provide further details in support of the budget request. Data provided in the tables are in thousands of dollars and cover a four-year period except for Tables XV(a-c), which provide sector data for FYs 2003-2005 and are in millions of dollars.

Table I lists all the accounts managed by USAID. Where there are transfers of some of these funds to other agencies, these levels are noted. Levels for FY 2003 and FY 2004 reflect rescissions. The FY 2002, FY 2003 and FY 2004 supplementals are listed as separate line items under the accounts that received these funds.

Tables II through XIV cover the individual USAID-managed accounts.

Tables XV a, b and c, provide an estimated breakout of the FY 2003-2005 programs by the three program pillars under all USAID-managed program accounts. Programs of special interest or emphasis are also broken out under the individual pillars.

At the time of publication of this document, final allocations of the 2004 Iraq Relief and Reconstruction Fund of $18.649 billion among various agencies had not been fully determined.

Child Survival and Health Programs Fund

The FY 2005 request of $1.420 billion for USAID's Child Survival and Health Program Fund (CSH) reflects the President's continuing commitment to improved health interventions that address critical health, HIV/AIDS, nutrition and family planning needs world wide. Investing in health of the world's population contributes to global economic growth, reduction of poverty, a sustainable environment and regional security. CSH funding supports programs that expand basic health services and strengthen national health systems to significantly improve people's health, especially that of women, children, and other vulnerable populations. A major focus for the use of these funds is in sub-Saharan Africa. As HIV/AIDS and other infectious diseases continue to threaten the health of families and children in developing countries world wide, the Agency works to eliminate these threats.

HIV/AIDS programs ($600 million in the CSH account) focus on prevention, care, and treatment efforts, and the support of children affected by AIDS, and includes $100 milllion for the Global Fund for AIDS, Tuberculosis, and Malaria. USAID will play a significant role in the implementation of the President's Emergency Plan for AIDS Relief. USAID programs are integrated within the overall policy and strategic direction of the President's Emergency Plan for AIDS Relief (PEPFAR).

USAID will play a significant role in the implementation of the PEPFAR, particularly in 14 focus countries in Africa and the Caribbean.

Child survival and maternal health programs ($325 million) reduce the number of deaths in children under five and save the lives of women during childbirth. Programs address immunizations, pneumonia and diarrhea prevention and treatment, oral rehydration, polio eradication, micronutrient deficiencies, antenatal care and safe birthing, nutrition, breastfeeding, and the USG contribution to the Vaccine Fund.

Programs for vulnerable children ($10 million) will continue to support the Displaced Children and Orphans Fund (DCOF) which strengthens the capacity of families and communities to provide care, support, and protection for orphans, street children, and war-affected children.

Other infectious diseases programs ($139 million) support the prevention and control of tuberculosis and malaria, combat anti-microbial resistance, and improve disease surveillance and response capabilities.

Family planning and reproductive health programs ($346 million) will help expand access to information and services regarding family planning practices. Such access will reduce unintended pregnancies, improve infant and child health, reduce their mortality rates, decrease maternal deaths associated with childbirth, and reduce abortion. These programs are integrated with programs that protect human health. Total funding for these programs remains at $425 million, with $346 million from CSH, and the balance of $79 million from accounts co-managed with the Department of State (e.g., the Economic Support Fund, Assistance to Eastern Europe and the Baltics, and the Freedom Support Act).

Included in the above are international partners, who will assist in several of the program activities. In addition to the Global Fund to Fight AIDS, Tuberculosis, and Malaria, these include Global Alliance for Vaccines and Immunizations (GAVI), Global Alliance for Improved Nutrition (GAIN), International AIDS Vaccine Initiative (IAVI), and the United Nations Joint Program on HIV/AIDS (UNAIDS).

Development Assistance

Development assistance is now recognized as playing a pivotal role in meeting U.S. national security challenges in the developing world, especially in supporting economic growth through fighting hunger and poverty, promoting education, and helping sustainable management of the world's natural resources, as well as promoting democratic governance and reducing the sources of conflict.

The Administration's request for the Development Assistance account, $1.329 billion, includes funding for two of the Agency's program pillars (Economic Growth, Agriculture and Trade; and Democracy, Conflict and Humanitarian Assistance), and limited funding for the Global Development Alliance, to encourage stronger partnerships with a full array of private and public sources.

The $1.121 billion in funds requested under the Economic Growth, Agriculture and Trade pillar will focus on building stronger economies that are soundly governed, broader based, aid integration into the global trading system. Programs also encompass environment, energy, gender, urban development and education activities. This pillar focuses on:

Agriculture programs ($268 million) that will rebuild agricultural capability in developing countries, especially sub-Saharan Africa under the Presidential Initiative to End Hunger in Africa. Programs will focus on promotion of sustainable agriculture, reducing hunger, and providing for technology transfers, including biotechnology.

Economic growth programs ($316 million) that focus on trade and investment by strengthening private markets, providing access to economic opportunity for the rural and urban poor, and supporting microenterprise lending-thereby increasing the capacity of developing countries to participate in, and benefit from, global trade and investment. Notable programs include the Presidential Initiatives of Trade for African Development (TRADE) Initiative, the Central America Free Trade Agreement (CAFTA) program, and the Digital Freedom Initiative.

Education and training programs ($262 million) that include $212 million for basic education programs to strengthen pre-primary, primary, and secondary education, and adult literacy, as well as teacher training. Efforts are focused primarily in Africa and Latin America with two Presidential initiatives-African Education and the Centers for Excellence in Teacher Training. Programs also include targeted work in South Asia and the Near East. Development Assistance will also fund programs for higher education and training ($50 million). USAID's programs strongly emphasize the need to ensure equitable access for girls, especially in Africa and the Near East. Funds will also be used for programs for higher education and workforce training ($50 million).

Environment programs ($275 million) will reduce the threat of global climate change, conserve biological diversity, promote sound management of natural resources including forests, reduce illegal logging, provide access to clean water and sanitation, improve watershed management; promote sustainable urbanization and pollution control, and increase renewable and clean energy services. The request includes funding for four Presidential environmental initiatives-Water for the Poor, Clean Energy, Congo Basin Forest Partnership, and Global Climate Change. The Initiative Against Illegal Logging is the most comprehensive strategy yet undertaken by any nation to address this critical challenge.

The request for Democracy, Conflict, and Humanitarian Assistance (DCHA) funding is $208 million.

Development Assistance will focus on conflict prevention, democracy and local governance, and human rights by strengthening the rule of law and respect for human rights, encouraging credible and competitive political processes, promoting the development of a politically active civil society, and making government institutions more transparent and accountable. USAID will continue to fund programs that strengthen democratic systems of governance by supporting elections, encouraging credible and competitive political processes, encourage vibrant and politically active civil societies, engender respect for the rule of law, promote security, and tackle anti-corruption, and foster human rights. USAID will also fund programs to help prevent trafficking of persons and assist victims of war and victims of torture. This request is based on the understanding that democratic governments are more likely to observe international laws and pursue policies that reduce poverty and terrorism.

In addition to this Development Assistance request, the request for the DCHA pillar also includes funding for the following accounts: $385.5 million in International Disaster and Famine Assistance (IDFA), $62.8 million in Transition Initiatives (TI), and $1.185 billion in P.L. 480 Title II .

The Global Development Alliance (GDA) ($10 million included in the above sectors) mobilizes resources from and alliances with U.S. public and private sectors in support of USAID objectives. In Brazil, for example, USAID is working with private companies and NGOs to encourage low-impact logging; while in Angola, USAID is cooperating with a U.S. oil company to promote small business development in rural communities. FY 2005 represents the forth year of existence for GDA, and its principles have become integrated into Agency strategies and practices.

INTERNATIONAL DISASTER AND FAMINE ASSISTANCE (IDFA)

SEE ADDITIONAL DETAIL IN CENTRAL PROGRAMS VOLUME

* Actual emergency program levels were higher because they also were funded from prior-year resources, including carryover. Actual relief obligations were also higher because they, too, were funded in part from prior-year resources, including deobligations.

The FY 2005 request of $385.5 million supports emergency relief, rehabilitation and reconstruction assistance in response to natural and manmade disasters that often are accompanied by displacement of large numbers of people. These include support for health interventions, agriculture and food security, nutrition, and water and sanitation. IDFA also provides funds for famine prevention and relief, helping to avert famine in places such as Ethiopia. The request includes an additional $100 million for post-peace agreement relief, rehabilitation and reconstruction in Sudan. The request also includes $50 million for famine prevention and relief. Use of these famine-related funds is subject to Presidential approval and is intended to support early intervention either to preempt famine or mitigate the impact.

Increasing emphasis is being placed on applying preparedness and mitigation lessons learned to deal with complex emergencies; countries such as Afghanistan and Sudan continue to a cause for concern. The President has designated the USAID Administrator as Special Coordinator for International Disaster Assistance. USAID works closely with the Departments of State and Defense to coordinate American relief efforts and coordinates with U.S. private voluntary organizations, non-governmental organizations, other USG agencies, and other donors.

TRANSITION INITIATIVES (TI)

SEE ADDITIONAL DETAIL IN CENTRAL PROGRAMS VOLUME, Chapter on the pillar bureau, Democracy, Conflict, and Humanitarian Assistance .

The Transition Initiatives account provides funding that advances peace and stability by conducting fast and flexible interventions in priority conflict-prone and post-conflict countries. The funds address the needs of pre- and post-transition countries experiencing significant political changes or facing critical threats to basic stability and democratic reform. TI programs are initiated in countries or situations where the nature of governance is shifting from authoritarian rule to more open societies.

These short-term, high-impact projects involve local, national, international, and non-governmental partners and are designed to increase momentum for peace, reconciliation, and reconstruction. In FY 2005, funds will support programs currently in Angola, Burundi, Democratic Republic of Congo, Iraq, Sri Lanka, Sudan, and Venezuela, and new programs in Liberia and Bolivia.

Development Credit Program

See also the Central Programs Annex for further information on this program.

The requested transfer authority ($ 21 million) for FY 2005 would apply to FY 2005 appropriations and funds transferred would remain available for use through FY 2008. In FY 2005, $ 21 million in transfer authority will be used to support activities such as bond financing, micro small and medium enterprise (MSME) development, competitive financial services, and creative municipal financing, clean energy, and clean water initiatives.

The Development Credit Program (DCP) allows USAID to use credit as a flexible development tool for a wide range of development purposes in historically under-served markets. It also increases grant assistance by mobilizing capital in developing countries for sustainable development projects, and it is often the best means to leverage private funds for development purposes. It is not intended for sovereign credit activities.

The request for FY 2005 includes $8 Million for administrative costs to manage the DCP. This includes funds for contractors to conduct analyses of the financial and economic viability of DCP projects. In accordance with the Federal Credit Reform Act of 1990, the $8 million request for credit administrative expenses reflects the total cost of development, implementation, and financial management of all USAID credit programs.

Operating Expenses

See separate chapter in this volume for a more detailed Operating Expense narrative and tables.

USAID's programs and expertise play an important role in support of U.S. foreign policy and help implement the U.S. strategy for international development, peace, and stability. The Operating Expenses (OE) budget of USAID is critical since it provides funding for salaries and support costs of the staff responsible for managing these programs.

OE funds are used to fund administrative costs of USAID-managed programs totalling $8.1 billion for FY 2005. A large portion of the OE budget is either fixed or directly related to staffing levels; reductions in the requested funding would immediately impact the ability of USAID to maintain staff necessary to monitor and manage programs.

The FY 2005 request for USAID Operating Expenses is $623.4 million, excluding the Office of the Inspector General and the Capital Investment Fund, which are requested separately. These funds will provide resources needed not only to maintain current staffing levels associated with USAID's presence in key developing countries, but also, to continue its Development Diplomatic Readiness Initiative to fill critical skill gaps identified through a comprehensive workforce analysis. USAID will hire 50 staff over and above anticipated attrition to address critical overseas workforce requirements, manage existing programs, and meet new demands.

The Operating Expenses of USAID are financed not only from the new budget authority, but also other sources of non-appropriated sources, including trust funds and recoveries. These other sources (trust funds and recoveries) will continue to drop in FY 2005. This decrease makes it critical that the full request for Operating Expenses be provided to meet expected requirements, including meeting the needs to, hire additional staff, improve emergency communication systems, provide armored vehicles, and provide for increased costs of security worldwide.

This request also funds the International Cooperative Administrative Support Services (ICASS) system, which provides administrative support to all agencies with overseas presence. Funds requested will also enable foreign service national staff in countries without a viable social security system to participate in a global retirement fund.

The Agency will also fund information technology support for the collaboration between the Department of State and USAID the planning, development, deployment and support for the agencies' respective financial management systems, and the integration of procurement systems with the financial systems.

CAPITAL INVESTMENT FUND (CIF)

See separate chapter in this volume for more detail

The request for the Capital Investment Fund in FY 2005 is $64.8 million. These no year funds will provide the Agency with greater flexibility to manage investments in information technology systems and overseas facility construction that the annual appropriation for USAID Operating Expenses does not allow.

In this fund, $36.1 million is for Information Technology, which will support major systems and infrastructure improvement projects that have substantial impact on Agency operations and results, including the implementation of worldwide accounting, procurement systems modernization, full participation in E-Government initiatives, and development of a joint enterprise architecture with the Department of State.

In addition, $28.7 million is for construction overseas to build new USAID office facilities collocated on embassy compounds to locate staff in secure work environments through the Department of State's proposed new capital cost-sharing program and relocation and communication costs for these offices. The Secure Construction and Counterterrorism Act of 1999 requires that USAID co-locate on new embassy compounds.

INSPECTOR GENERAL OPERATING EXPENSES

See separate chapter in this volume for a more detailed IG Operating Expense narrative and tables.

The FY 2005 request of $35 million covers operations, including salaries, expenses, and support costs of the Office of the Inspector General associated with USAID programs and personnel operating in over 80 countries around the world. This request will enable the office to reduce the Agency's exposure to fraud and waste and increase the credibility of and confidence in USAID programs operating in highly vulnerable areas of the world.

The goal of the Office of the Inspector General is to assist USAID with implementation of its economic development strategies and provide USAID managers with information and recommendations that improve program and operation effectiveness and efficiency. The Office has statutory responsibilities to (1) conduct audits and investigations relating to the programs, operations, and personnel of USAID; (2) provide leadership and coordination and recommend policies for activities designed to promote economy, efficiency, and effectiveness and to detect waste, fraud, and abuse in the programs and operations of USAID; and, (3) provide a means for keeping the USAID Administrator and Congress informed about problems and deficiencies.

ECONOMIC SUPPORT FUND

The Economic Support Fund supports the economic and political foreign policy interests of the United States. The request focuses on the top U.S. priority-the war on terrorism-providing assistance to the front-line states and building new relationships as the campaign against global terrorism widens. To the extent possible, the use of Economic Support Funds also conforms to the basic policy directions underlying development assistance and programs that support USAID's three strategic pillars.

The request for Africa is $101.3 million, of which $25 million for Liberia for reintegration of child soldiers and other combatants into society, election preparation, civil society support, judicial and rule of law programs, sustainable rainforest management, the Truth and Reconciliation Commission, budgetary reforms; $20 million to help ensure a just peace in Sudan and to support the development of political pluralism and democracy, agriculture, health and education; $21 million for the region's strategic countries - Ethiopia, Kenya, Nigeria, Djibouti, and South Africa - to support economic growth, democracy, anti-crime and anti-corruption and to counter terrorism. Also, $18.3 million is to continue programs to resolve long-running conflicts or instability, including Angola, Burundi, the Democratic Republic of Congo, Sierra Leone and Zimbabwe; $17 million for the Africa Regional Fund, Safe Skies for Africa, and regional organizations for activities to strengthen the rule of law and to support African efforts to manage renewable resources. Regional organizations include SADC and ECOWAS; regional programs will fiancé regional and global economic integration, especially program to open markets and harmonize tariff structure.

East Asia and the Pacific, $174.3 million, of which $70 million for Indonesia to support economic growth, democracy, conflict mitigation, and a major new education initiative; a total of $30.5 million for East Timor, Mongolia and Burma to support private sector led growth with trade promotion, micro credit programs in East Timor, assist nomadic communities and semi-nomadic herders in Mongolia, and democracy programs in Burma; $35 million for the Philippines will support economic reform and good governance and poverty alleviation for former combatants and families; $17 million for Cambodia for democracy, human rights and anti-trafficking; $18 million for the South Pacific Multilateral Fisheries Treaty; $3.8 million for regional projects including the ASEAN Cooperative Plan and development of multilateral groups.

South Asia, $564 million, which includes $225 for Afghanistan million to help reinforce democracy and stability; complete the Kandahar-Herat road and basic infrastructure; support the central government; create incentives for demobilization; and assist Afghan women and girls. For Pakistan, $300 million is for debt relief/budget support and targeted social sector programs, including education reform, expansion of basic health services, democracy, and expansion of economic opportunities. In addition, there is $15 million for India, $5 million for Bangladesh; $5 million for Nepal, $12 million for Sri Lanka, and $2 million for the South Asia Muslim Outreach Program.

Near East, $1.449 billion, to support Middle East stability and the search for a comprehensive peace between Israel and its neighbors. Funding includes $895 million for Israel and Egypt, $75 million for the West Bank and Gaza, and $250 million for assistance to Jordan. In addition, $20 million will support development projects in Yemen, and $32 million for Lebanon. Morocco will receive $20 million for micro-credit facilities; basic health and education; and rural-based programs. The request continues programs to strengthen regional cooperation, promote democracy and civil society, and encourage economic growth and integration through increased trade reforms through the Middle East Regional Cooperation (MERC) and Middle East Multilaterals programs ($7 million). A total of $150 million is requested for the Middle East Partnership Initiative (MEPI to support efforts to reform education systems and create greater educational opportunity; opening economies and creating jobs for people in the region. This initiative will favor countries that support democratic reforms, rule of law and women's empowerment.

Europe and Eurasia, $75.5 million, includes $50 million for balance of payments support for Turkey; $13.5 million for Cyprus to promote reconciliation between the Greek and Turkish communities; and $8.5 million for the International Fund for Ireland to help foster cross-community cooperation, economic regeneration and job opportunities in Northern Ireland and the border communities, as well as $3.5 million for the Walsh Visa program, which brings youth from disadvantaged areas to the United States to develop job skills.

Latin America and the Caribbean, $92 million, includes for South America $32.5 million for democratic institution building and economic growth programs in Ecuador, Bolivia, Paraguay, Peru, and Venezuela; for Central America (Guatemala, Nicaragua, Panama) and Mexico $21 million for local conflict resolution and prevention, transparency and accountability systems, support anticorruption, justice sector reform, technical assistance and training to government institutions, and higher education (in Mexico); $9 million for Cuba to help peaceful transition to democracy; $3 million for the Dominican Republic for sector reform and anti-corruption efforts; $4 million for Peru-Ecuador peace, child survival, biodiversity and economic growth. $9 million for the Third Border Initiative in the Caribbean, Regional programs will receive $13.5 million for anticorruption, Summit of the Americas Support and trade capacity building.

Global programs receive a total of $64 million to promote democracy and human rights ($27 million), promote environmental stewardship ($3 million), address unacceptable working conditions around the world ($2 million) prevent the trafficking in persons ($12 million) and more fully engage non-Arab Islamic countries ($20 million).

ASSISTANCE FOR EASTERN EUROPE AND THE BALTIC STATES

The request of $410 million will help stabilize southeast Europe and support the region's transition into the European and trans-Atlantic mainstream. Although there are no longer USAID missions in the European northern tier, legacy mechanisms are in place for grant-making funds, managed by private foundations, such as the Baltic-American Partnership Fund.

In Southeast Europe, highest priority programs promote stability, rule of law and efforts against corruption and trans-border crime, effective governance, and crucial growth in the private sector to spread the benefits of difficult reform.

The request includes $87 million for Serbia to help keep fragile political and economic reform on track. Major work remains on rule of law, privatization, job creation and economic growth, and building local democracy. An additional $15 million will fund similar efforts in Montenegro. For Kosovo, the $72 million request focuses on building a market economy, strengthening democratic institutions, and fostering rule of law. The Former Yugoslav Republic of Macedonia will receive $34 million to assist in combating trafficking and corruption, stimulating free markets, and promoting rule of law and strong multi-ethnic democratic institutions. For Bosnia-Herzegovina, $41 million will assist the government in combating terrorism, trafficking in persons, commercial and criminal justice system reforms, small business development and job creation, economic projects, and local governance. The $28 million for Albania programs focuses on combating international crime and corruption and on fostering decentralization, local government reform, economic development, as well as increasing employment and trade via private sector development and competitive markets. For Bulgaria, $27 million will fund a transition plan to secure stronger governance, rule of law and broader economic opportunity. In Romania, a program of $27 million will assist law enforcement, rule of law, anti-corruption, economic reform, and privatization, with lesser emphasis on the health sector. The Croatia program of $20 million will help assist the private sector, promote democracy and reduce destabilizing gaps between war-affected communities and more developed areas. Regional programs of $59 million will fund assessed costs for OSCE peace missions in the Balkans and Bosnia, foster cooperation to fight trafficking in persons and organized crime and to promote trade and economic growth. Significant USAID regional programs support HIV/AIDS and other health programs, energy efficiency, and infrastructure development and trade.

ASSISTANCE FOR THE INDEPENDENT STATES OF THE FORMER SOVIET UNION

See Europe and Eurasia volume for more detail

The request for the former Soviet Union totals $550 million to fund continuing programs of USAID and other agencies supporting economic and democratic transition and the war on terrorism. Funding underscores the continued U.S. commitment to the region and the vital role played by the front-line states in the coalition against terrorism, as well as supporting efforts against illicit narcotics, HIV/AIDS, and trafficking in persons.

Funds for Russia will support market reform programs in Russia and economic and poitical reforms in Georgia. An intensive counternarcotics program is aimed at stemming the flow of heroin from Afghanistan through Central Asia, and support for civil society, independent media, the rule of law, and civic education.

Central Asian countries having elections scheduled in 2005 will receive funding to support free and fair electoral processes, to train political parties, support unbiased media, election monitoring, and technical assistance to reform electoral laws.

FSA-supported health care programs will assist inefficient health care systems, improve maternal and infant health, and enhance the ability of Eurasian countries to fight infectious diseases (particularly HIV/AIDS and tuberculosis in Russia, Ukraine, and Central Asia). Funds also will be directed toward prevention and education, pilot treatment efforts, and technical assistance to leverage assistance from the Global Fund and others sources to address the threat of HIV/AIDS and TB.

FSA funds will continue to support small- and medium-sized private businesses through training, exchanges and greater access to credit.

The OSCE will also receive funds to promote human rights, democratization, economic development and environmental protection in Eurasia. Funds will again be provided to facilitate more trade and to enhance law enforcement cooperation among Georgia, Ukraine, Uzbekistan, Azerbaijan, and Moldova.

ANDEAN COUNTERDRUG INITIATIVE

(USAID-Managed Portion Only)

The Andean Counterdrug Initiative account (ACI) supports a comprehensive strategy to reduce the flow of drugs to the United States and prevent instability in the Andean Region. This account is appropriated to the Department of State; the State Department transfers some of these funds to USAID to manage alternative development programs. The State Department FY 2005 request of $257 million for alternative development programs includes $229.3 million to be managed by USAID.

USAID uses Andean Counterdrug Initiative funds in four Andean countries - Bolivia, Colombia, Ecuador and Peru. In each country USAID seeks to change the underlying conditions that lead people to cultivate illicit narcotics.

In Bolivia, USAID provides technical assistance and infrastructure to eliminate illegal and excess coca by increasing net household income from licit sources, providing productive and social infrastructure and making local governments more effective and efficient in responding to increased citizen demands.

In Colombia, the USAID program has three objectives: stemming the flow of illegal drugs into the United States by encouraging small producers to join the legal economy through licit economic activities; promoting more responsive, participatory and accountable democracy; and relieving the plight of Colombian refugees.

In Ecuador, USAID seeks to contain the spread of a coca/cocaine economy by strengthening northern border communities through providing productive and social infrastructure, strengthening of local government capacity and citizen participation, and increasing employment and income through licit productive activities.

In Peru, USAID uses a multi-sector, integrated development approach focused on providing immediate economic and social impact via temporary income, community organization and other short-term support in communities where coca is eradicated and promoting sustainable economic and social development in and around the primary coca-growing areas via infrastructure projects, technical assistance, and training.

In all four of the countries USAID also seeks to generate political will, encourage key behavior change, and disseminate accurate information to beneficiaries through a crosscutting communications program.

The request for FY 2005 includes alternative development programs for Colombia ($122.3 million), Peru ($50 million), Bolivia ($42 million), and Ecuador ($15 million).

Title II P.L. 480 FOOD FOR PEACE PROGRAMS

FOR MORE DETAIL SEE CENTRAL PROGRAMS VOLUME AND SUMMARY TABLES

The United States uses its abundant agricultural resources and food processing capabilities to enhance food security and combat problems of malnutrition in the developing world both through emergency food aid responding to the critical food needs of targeted vulnerable groups and through development food aid focused on enhancing household nutrition or increasing incomes and agricultural production. Provided via private voluntary organizations (PVOs) and the UN's World Food Program (WFP), emergency food aid, such as in Afghanistan and Sudan, not only saves lives but also mitigates the immediate effects of conflict and contributes to the stabilization of war-torn societies. Development food aid is provided via multi-year commitments to PVOs, as well as through a portion of the biennial pledge to the WFP.

Appropriated to the U.S. Department of Agriculture, the Title II program is managed by USAID. The request for Title II for FY 2005 is $1.185 billion in USAID-managed food assistance resources that are no longer dependent on surplus commodities, and is equal to the FY 2004 level.

As the monitization program been reduced over time, the commitment with implementing partners, to address issues of agricultural productivity, food security and the environment remains strong, as evidenced by the increased DA request for these sector to offset this reduction.

There are some basic programming decisions remaining for current and future Title II funds; therefore, the allocation of these funds remains to be determined (TBD).

FY 2003-2005 Pillars and Programs of Special Interest - Table XVa-c (PDF)

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