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This is an archived USAID document retained on this web site as a matter of public record.

DIALOGUE

In this section:
First Person
Mission of the Month: Macedonia
Notes from Schieck


First Person

Photo of Yaraslove Dzhumalo with a catalog of his company's products.

Yaroslav Dzhumalo, director of Svitlovodsk glass factory SKLO, displaying a new American furnishing company catalogue containing some SKLO products.


Development Alternatives, Inc.

“We are very grateful to BIZPRO for our successes and we think it’s a good lesson for the entire industry… With BIZPRO assistance we were able to demonstrate the quality of our products and the production capabilities of [our] factory… In April 2005 we got our first orders and we have confidence that we can now build a long-term relationship with our new American partners.”

First Person is a continuing FrontLines feature that provides views from beneficiaries of USAID programs.

Eastern Europe has long been recognized for the high level of craftsmanship of its glass and crystal. But products from countries like Ukraine have little or no exposure to global markets due mainly to a lack of contact with and knowledge of foreign markets. The USAID-funded BIZPRO project has been changing that. It has helped glass producers develop designs more appealing to Western audiences, and assisted in improving their production capacity and efficiency.

At the biannual International Home Furnishings Market, held in April 2005 in North Carolina, glass products—vases, wine glasses, and other china-type wares—from three Ukrainian producers were displayed for the first time by American companies such as Phillips Collection and Wildwood Lamps. In August, the Ukrainian glassmakers exhibited their work at Europe’s biggest home furnishings exhibition, Tendence Lifestyle, held in Frankfurt.

Sales are starting to increase.

Aside from the home furnishing industry, BIZPRO works with industries relating to furniture, textiles and apparel, tourism, processed fruits and vegetables, and information and communication technology.


Mission of the Month: Macedonia

Challenge

Photo of a Macedonian student chatting over the internet with another student using a webcam.

Macedonian students from opposite ends of the country chat using a USAID-supported computer lab and high speed wireless internet connectivity.


Teresa Albor, USAID

Macedonia, a small mountainous Balkan country of 2 million people that was once a part of Yugoslavia, began a transition toward a market economy when it gained independence in 1991. But serious setbacks to its development were presented when an ethnic conflict became the country’s main concern in the late 1990s and into the new century.

One setback to economic development was the country’s lack of access to high-speed internet. Only four years ago, internet access cost as much as $150 a month. The state telecommunications agency was the sole access provider, and less than one-fifth of Macedonians were online.

USAID faced the challenge of updating old and dated infrastructure, rebuilding telecommunication policies that make the internet more accessible, and teaching Macedonians about the value of logging on to the web.

USAID Response

In 2001, USAID/Macedonia embarked on an “e” mission. Helping Macedonia take advantage of the digital revolution is now part of almost every project. Among the mission’s efforts are that it has

• created a conducive policy environment
• set up infrastructure
• created and provided hardware and software
• trained IT technicians
• trained users

The mission has also worked on promoting industries that take advantage of digital technology, such as digital animation and entertainment. The effort also encourages existing industries to take advantage of the efficiencies of digital technology and helps fledgling industries that support new technologies get started.

“Development today is about leapfrog technology,” said Dick Goldman, USAID/Macedonia mission director. “A country like Macedonia has few legacy systems getting in the way of adoption of the latest technology. And making information available and accessible—one of the strengths of this technology—is enormously useful when one of your goals is to increase transparency.”

Results

USAID/Macedonia’s success in bringing high-speed wireless internet access to 95 percent of Macedonians was one of the main topics of discussion among delegates at the Tunis World Summit on Information Society in November 2005. During the summit, the British Broadcasting Corporation (BBC) also aired a documentary following the story of how Macedonia has become hooked to the worldwide web.

After all of USAID’s extensive efforts to make Macedonia wireless, nearly all of the country’s 2 million residents have become computer savvy.

A wireless network blankets every corner of the country—including remote locations without basic telephone service—providing the opportunity for students and entrepreneurs to connect to the outside world. With equipment contributed through a Global Development Alliance project, USAID is providing broadband wireless internet connectivity to the offices of 50 new municipal governments and 30 NGOs.

The network provides needed competition to the monopoly telecommunications provider, and has already led to lower prices for broadband connectivity and long-distance phone calls. The private company, competitively selected to build the wireless network, offers high-speed internet for $20 a month.

Web-based systems for filing taxes, applying for jobs, and government procurement will all be available in 2006. Computer labs and internet connections have been installed in all 460 schools in the country. Over 7,000 primary and secondary school teachers received training in improved teaching methods and IT applications. Companies within the growing digital entertainment and IT support industries are signing contracts with U.S. and European companies.

“Wireless internet is definitely the must-have accessory these days for U.S. cities, and now apparently whole countries,” writes Elena Malykhina of InformationWeek. “While it’s not likely to cure all the economic development, public safety, and education woes planners face, the Macedonian example will have one clear benefit for the rest of us. Given the scale of the deployment and the difficult terrain it’s trying to cover, it will be a good test of wireless mesh network technology.”


Notes from Schieck

Changes to Foreign Aid Process Will Strengthen Agency

Photo of Acting USAID Administrator Frederick Schieck.

Frederick Schieck

On Jan. 19, Secretary of State Condoleezza Rice announced major changes in U.S. foreign assistance management and implementation designed to improve the coherence and effectiveness of this nation’s foreign assistance programs. Referencing her new “transformational diplomacy strategy,” the secretary said that the changes will help better align the foreign assistance programs of USAID, the Department of State, and the rest of the U.S. government.

In this regard, she announced that the USAID administrator would be designated as the director of foreign assistance (DFA), with oversight for all USAID and Department of State foreign assistance planning and spending. The administrator/DFA will hold the rank of deputy secretary and will report directly to the secretary. These changes are being executed under the existing authority of the secretary, and dramatically increase the role and stature of the USAID administrator within the Department of State and the U.S. government.

To fill this new role, the secretary stated that the president intends to nominate Randall Tobias, currently the global AIDS coordinator at the Department of State. Ambassador Tobias came to his role as global AIDS coordinator as one of America’s most talented and respected executives. He served as vice chairman and then chairman of AT&T International, guiding the firm through immense organizational challenges. He then went on to head Eli Lilly and Company, one of our nation’s largest and most innovative pharmaceutical companies.

Former Administrator Andrew S. Natsios praised the choice when he said at his last senior staff meeting that the Agency could not be in better hands.

Contrary to rumors, Rice said that a “State takeover” of the Agency was never in the cards. She recognized the vital role that USAID plays on the frontlines of our foreign policy in responding to humanitarian crises and advancing development.

Her intentions in proposing the changes are to strengthen and streamline USAID, align it better with State to more effectively meet this nation’s foreign policy challenges, and make it a better steward of Americans’ tax dollars.

The Agency’s leadership strongly endorses these changes, and we look forward to the active engagement of USAID personnel in making them successful.

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