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

GLOBAL DEVELOPMENTS

In this section:
MCC OKs Armenia, Vanuatu Compacts
Radio Station Highlighted in Imam Sahib
Contractor to Repay $1.2 Mil
Thailand Flood Victims Get Aid
Global Development Alliance Now Office
Relief Goes to Indonesia Flood Victims
Former Cashier Pleads Guilty to Stealing
Agency Lobby Gets New Look and Name
Agency Releases Democracy Strategy


MCC OKs Armenia, Vanuatu Compacts

WASHINGTON—The Millennium Challenge Corporation (MCC) has approved a five-year, $235.7 million compact with Armenia and a similar $65.7 million agreement with Vanuatu.

Armenia, MCC Chief Executive Officer John Danilovich said, has “developed an integrated, results-oriented program that will provide rural residents better access to jobs, social services, and markets and increase the productivity of farmers.”

The compact, which aims to reduce rural poverty, will invest in rebuilding rural roads and work on agriculture irrigation. The program is meant to impact 75 percent of the rural population, and is expected to increase annual incomes by $36 million in 2010 and over $113 million in 2015.

In Vanuatu, the compact includes up to 11 infrastructure projects—roads, wharfs, an airstrip, and warehouses. It also includes training and policy reform initiatives to improve the operation and maintenance of Vanuatu’s transport infrastructure network. MCC funds are expected to impact more than 65,000 rural residents and increase their average income per capita by 15 percent.

Since its establishment in 2004, MCC has signed compacts totaling more than $900 million with Madagascar, Honduras, Cape Verde, Nicaragua, and Georgia.


Radio Station Highlighted in Imam Sahib

IMAM SAHIB, Afghanistan—Officials, local elders, and students in this capital city of Kunduz province inaugurated the city’s first independent radio station in mid-December.

Radio Jaihoon began broadcasting in May 2005. USAID began helping to set up a network of community radio stations in Afghanistan in 2002. The network currently has 31 stations, each of which operates with full editorial independence.

Prior to the overthrow of the Taliban, the only radio network in the country was Radio Afghanistan.


Contractor to Repay $1.2 Mil

WASHINGTON—Development Alternatives Inc. (DAI) has agreed to repay USAID $1.2 million to settle allegations it overcharged the Agency for contracts it received in the 1990s. As part of the settlement, DAI did not admit to fraud.

The decision from the Bethesda, Md.-based company settles charges under the False Claims Act.

The settlement agreement resulted from an investigation into three contracts conducted by the USAID Office of Inspector General in conjunction with the United States Attorney’s Office for Maryland. One contract, signed in 1995, involved implementation of a program to encourage financial institutions to increase the flow of credit to micro and small businesses in developing countries. The other two contracts, signed in 1996 and 1997, involved implementation of economic assistance programs in postwar Bosnia-Herzegovina.

The investigation found that DAI overcharged the Agency just over $500,000.

In a statement after the agreement was settled, Acting Deputy Inspector General Paula F. Hayes said: “USAID and the American companies it relies upon to deliver development programs throughout the world must always be steadfast protectors of U.S. taxpayer funds. As highlighted by this settlement agreement, the Office of Inspector General will vigorously pursue the investigation and prosecution of fraudulent activities that target the U.S. foreign assistance program.”


Thailand Flood Victims Get Aid

WASHINGTON—USAID has provided $50,000 to the Thai Red Cross to assist victims of severe flooding in southern Thailand.

Unusually heavy and continuous rainfall since early December caused severe flooding in the southern Thailand provinces of Songkhla, Nakhonsithammarat, Pattani, Narathiwat, Phatthalung, Trang, Yala, and Satun. Flooding has killed 26 people, affected more than 700,000, and forced large-scale evacuations to temporary shelters, according to the Thai Department of Disaster Prevention and Mitigation.

USAID funding will be used to purchase and distribute emergency relief supplies, including blankets, food, and water.


Global Development Alliance Now Office

WASHINGTON—The Global Development Alliance Secretariat has become an independent office within USAID, under the name of Office of Global Development Alliances (GDA). It will report directly to the acting administrator.

GDA, which was created four years ago, works to promote public-private alliances that encourage global development. The office says it has generated almost 300 alliances, leveraging more than $3.7 billion in private partner contributions.


Relief Goes to Indonesia Flood Victims

WASHINGTON—USAID has provided $50,000 to the Indonesian Red Cross to help it respond in areas of the country affected by monsoon-related flooding.

On Jan. 1, flash flooding and landslides hit three districts of Jember Regency, East Java Province. This came after three days of torrential downpours and the overflow of the Dinoyo River. The U.S. Embassy in Jakarta said the weather is to blame for 63 deaths. It also displaced 6,700 people and destroyed more than 2,500 homes.

Local media reported that on Jan. 4, additional flash floods and landsides buried approximately 100 homes in Cijeruk. An estimated 200 villagers were presumed dead.


Former Cashier Pleads Guilty to Stealing

WASHINGTON—Muftar Ali pleaded guilty Dec. 29, 2005, to stealing $200,000 from USAID’s mission in Maputo, Mozambique, and the U.S. Embassy there, USAID’s Office of Inspector General said.

Ali entered the plea in U.S. District Court in Charleston, S.C., and could face up to a $250,000 fine and 10 years in prison. Evidence from the case showed that Ali stole the money between 2003 and 2005 when he worked as a cashier in both offices.


Agency Lobby Gets New Look and Name

As one of his final acts as Administrator, Andrew S. Natsios named the 14th Street entryway of USAID’s headquarters in Washington the George C. Marshall Hall.

He unveiled the new name—and new look—for the light-filled, two-story walkway just after delivering his final town hall address to employees Jan. 9.

The entryway’s facelift included seven new display panels that highlight in vivid color images some of the work the Agency has performed in developing countries. The panels represent humanitarian assistance, global partnerships, economic growth and trade, education, agriculture and the environment, democracy and governance, and global health.

Natsios also unveiled a new portrait of Marshall, the former Secretary of State whose plans to rebuild Europe after World War II came to be known as the Marshall Plan. The document—which encouraged spending billions to help a devastated Europe recover—led to the United States’ more formal approach to foreign assistance. A succession of five organizations handled U.S. foreign assistance after that. Finally, in 1961, USAID was established to take over those duties.

The new portrait, which replaces another portrait of Marshall, is a reproduction of a 1949 painting that hangs in the State Department’s diplomatic reception room.


Agency Releases Democracy Strategy

Image of cover of USAID democracy strategy, At Freedom's Frontiers.

At Freedom’s Frontiers, USAID’s recently released publication detailing its democracy efforts in developing countries across the globe, contends that countries with healthy democracies are more apt to do well in other areas, including economic development and security.

The Agency’s democracy strategy focuses on four core “dimensions of democracy”: rule of law, institutions with democratic and accountable governance, political freedom and competition, and citizen participation and advocacy.

“As a matter of principle, part of strengthening our national security, and an essential element of international development, USAID promotes good governance and the transition to democracy through the world,” the strategy begins.

The document was unveiled Jan. 10 to nearly 300 people at the National Press Club during an event cohosted by Freedom House and featuring an address by former Administrator Andrew S. Natsios.

USAID’s democracy work reaches back several decades with efforts in countries like El Salvador and Indonesia. In some places, USAID’s efforts were shorter term. In others, democracies took years of work to come to fruition.

In the last couple of years, the Agency has also jumped in in places like Georgia and Ukraine where grassroots democracy efforts were taking shape, showing “we can move quickly, as in the case where an orange or rose or cedar revolution breaks out,” said Paul Bonicelli, a deputy assistant administrator in the Bureau for Democracy, Conflict, and Humanitarian Assistance.

The strategy also bolsters the Agency’s role as the democracy-promotion arm of the U.S. government, and shows the work encompasses far more than elections. “Here’s what we’ve been doing over the years and that has a lot of value,” said Bonicelli, who added that the strategy will be distributed to congressional staffers, journalists, State Department colleagues, and others.

In 2004, USAID spent $1.2 billion to implement democracy programs around the world, including in Afghanistan and Iraq.

The democracy strategy includes explanations about how and why USAID promotes democracy, and how the Agency’s democracy practitioners are responding to 21st century challenges, such as establishing democracies in fragile states and supporting countries during transitions from their former methods of governance.

Also included is an outline of the Agency’s “democracy promotion toolbox.” As the name suggests, the toolbox includes descriptions of the nuts and bolts efforts—for example, mobilizing get-out-the-vote drives and providing advisors who have expertise in writing constitutions—that move democracies forward.

At Freedom’s Frontiers: A Democracy and Governance Strategic Framework was released with a companion publication called Democracy Rising, which provides a narrative of some the Agency’s most recent work. Both publications are available at www.usaid.gov.

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