Administrator Henrietta Fore delivered these remarks in Washington, DC

Administrator Fore. I am delighted to be a part of this important event that coincides with a new lunar and solar year along with the recent culmination of the annual Hajj. And I send my warmest wishes to all those who associate themselves with the annual pilgrimage.

Millions of Muslims have gathered from around the world to commemorate the stories of Abraham, Ishmael, Haggar and the building of a civilization based on the values of equality, egalitarianism, and equity. Today also marks the observance of Ashura—the remembrance of Imam Hussain's martyrdom.

And as we all look to this New Year, we are reminded of renewed commitments, responsibilities, and growth. It is in this spirit that we have gathered today—a diverse group—to learn, share, and build upon what works best.

During my own travels in Asia, Europe, Africa, and the Middle East, I have been struck by the tremendous power that is unleashed through successful partnerships between governments and the private sector.

In a world with ever increasing demands on resources, and with new and ongoing humanitarian crises, it is vital that USAID and other government donors reach out to and work with important actors in the international business and philanthropic communities.

For example in Afghanistan, USAID has created six public-private partnerships leveraging more than $7 million from private partners. One of these partnerships is with Cisco—the Cisco Networking Academies Program is training nearly 1,000 young Afghans (including more than 350 women) to install and maintain modern computer networks. This initiative will not only result in a trained IT workforce, but it will also provide Afghans with greater access to the Internet and on-line learning.

Further, active higher education partnerships are linking universities, publishing houses, on-line training providers and computer firms together to strengthen Afghan university digital libraries and online learning programs. And numerous partnerships have been established to strengthen the productive capacity of Afghan firms, and improve their access to markets varying from marble quarrying to carpet production to agriculture.

In Indonesia, USAID works closely with the private sector to provide job training and foster youth employment. Following the devastating 2004 tsunami, Chevron and USAID joined forces to help Indonesia's government rebuild the hard-hit region of Aceh. It was clear that there were two complementary needs: infra-structural reconstruction and job creation. We met those needs by training an able workforce in the skills needed to reconstruct and rehabilitate their homeland.

One young resident in Aceh, Junaidi, had construction skills limited to pouring concrete, brick-laying, and other basic building tasks. Thanks to the joint USAID-Chevron training program, Junaidi has learned welding, masonry, electrical installation, and carpentry.

To ensure that these newly trained workers can put their new skills to good use, USAID works with Indonesia's Chambers of Commerce, road construction contractors, international organizations and others to hire trainees to fulltime jobs.

Junaidi is now making door frames for new houses in Aceh, and with more and more houses being built, his hope is to eventually start his own construction company.

And in the Middle East, we have established 17 public-private partnerships, with 27 additional partnerships in the pipeline. USAID's work in leveraging private sector funds in this region dramatically expands the impact and sustainability of its programs. I see Ziad Asali sitting next to me today, so I know you have heard of our West Bank Public Private Partnerships.

And, we can do more. For example, over three decades ago, the Development Assistance Committee of the Organization for Economic Cooperation and Development (DAC in OECD) used to meet and work with the Kuwait Fund and the Arab Fund. We must reinstitute this former partnership and again collaborate with the sovereign wealth funds in the Gulf and elsewhere.

Only by working with partners such as yourselves, are we able to make a real difference and continue to promote economic prosperity and good governance around the world.

Today's gathering was the start of an important conversation in the development community. We have heard what works, and we know what the challenges are as seen by those in the field.

As you have heard today through our distinguished panelists, we must engage in a more proactive and informed manner with community leaders, members, and all stakeholders. Meaningful development is a result of creating partnerships, building upon the capacity of existing community based organizations, and giving voice to groups such as the youth who otherwise feel uninvolved or marginalized.

We have also recognized the need for more expertise in how our missions develop, design, and implement programs conducive to a cultural context. Our efforts at USAID are demonstrating that culture does matter in programming, and that relevant development does not come in a cookie cutter form.

And, there is no doubt that partnering with the private sector, as well as nongovernmental organizations, has helped to channel ideas, efforts, resources and cultural approaches. Leveraging outside resources to complement official aid has increased our impact.

For example, for decades, USAID has partnered with private faith-based groups and religious leaders, particularly in urban areas, to achieve shared development goals. The knowledge and organization of these groups expands the reach of our programs. In Egypt, a USAID grant supports increased participation of marginalized groups in civil society, working through religious leaders, as well as other local decision makers.

But challenges do still exist. We know that globally, one billion youth will be entering the labor market in the next five years and only an estimated 300 million jobs will be available for them. Nearly 70% of youth live in less developed countries where they face even greater obstacles for gaining education and employment.

We also know that the Middle East and some Asian countries continue to perform far below the norm when it comes to closing the gender gap.

Access to water is another critical issue in the Middle East and Asia—and one that must be understood and addressed in the context of the beliefs and traditions of the societies that are affected. Current estimates suggest that meeting the developing world's water sector needs will require an increase in annual investments of approximately $100 billion.

And the list goes on and on…

But I will end with one challenge for all of you here today as individuals and as institutions: What can we do next? And how do we do it? Together, we must use the lens of innovation, of creativity, and of true engagement to see that development cannot take place without understanding its environment, its context. So make a partnership with a person or around an idea you heard today.

We must create opportunities through virtual networking and dialogue. USAID has already taken steps to improve our communications with you. We are revolutionizing the way we share what we know. At Global Development Commons dot-net you can now search all USAID-funded project websites and all USG development information. That is over a thousand websites with over 1 million documents, and growing.

For example, in Jordan, we are building on an existing Arabic health website, sehetna.com, to bring the site to a broader audience and develop private sector partnerships to ensure sustainability of the project.

Before I end, I would like to thank our distinguished guests Undersecretary James Glassman, Special Envoy Sada Cumber, and Mr. Iqbal Noor Ali of the Aga Khan Foundation USA. I would like to again acknowledge the Aga Khan Foundation USA's 25th anniversary of its partnership with USAID on behalf of the Aga Khan Development Network; and offer my own congratulations to His Highness the Aga Khan on completing his 50th year as the 49th hereditary Imam of the Ismaili Muslims. USAID will continue to play a leadership role, and will work with all of you, as partners, in the effort to ensure economic prosperity where it is needed most.

Thank you.

Secretary Condoleezza Rice, Secretary Robert Gates, Administrator Henrietta Fore, and Counselor Eliot Cohen delivered these remarks in Washington, DC

Mr. Cohen. Let me welcome you all to the official signing of the United States Government Interagency Counterinsurgency Guide. My name is Eliot Cohen. I'm the Counselor at the Department.

This is going to be a very brief ceremony, but I want to thank, first and foremost, everybody who's made the effort that has yielded up the COIN guide. It took a lot of work by the many different departments of government that are represented in it, and it's a very fine piece of work.

There's a larger thanks, I think, to the many, many thousands of Americans whose practice out in the field has informed the writing of this guide, because it wasn't just an intellectual effort back here in Washington. In many ways, it's the distillation of a lot of experience.

I'm particularly grateful to the ladies and gentleman standing to my right. I want to particularly single out my boss, Secretary Rice, and Secretary Gates, who I think have, by both word and deed, signaled the importance of State, Defense, and of course, AID working together. And I don't think that there's ever been a period in our history where the two departments of government have worked so closely, and I think that's a—that's going to be an important legacy.

If I could, my last observation is really addressed to Dr. Rice and Dr. Gates. It's a little bit unprecedented, I think, to have a pair of Ph.D.s running the State Department and the Defense Department—but not just Ph.D.s., people who have been great educational leaders. And I think that the long-term significance of this guide, which had better outlive the Bush Administration, is going to be as a document that will be used in war colleges, at our own Foreign Service Institute. I can guarantee there'll be at least one civilian university that will use it. And it will do what good doctrine ought to do, which is to stimulate thought. It's not a template. I don't think it's going to be a rigid set of prescriptions. But what it will do, I think, will be to stimulate thought and to be the basis of ever-developing practice in this field.

So thank you very much. Madame Secretary.

Secretary Rice. Well, thank you very much, Eliot, Dr. Cohen, who has been a terrific Counselor and has spearheaded this very important effort. The last several years have taught us some important lessons; first of all, that the old notion of war and then peace is really not appropriate to the challenges that we face in the international system now. Whether one is talking about Iraq or Afghanistan or even places like Liberia or Haiti, you are usually talking about a continuum between war and peace where one is trying at the same time to bring security, development, and governance to the people of a war-torn or a civil war-torn or conflict-torn region.

And this counterinsurgency doctrine and this manual really is a compilation of the experiences that we have had in learning how to fight together, how to work together, and ultimately how to deliver for people defense, democracy, and development. And I could not have had a better partner than Secretary Gates, Bob Gates, my good friend of many years now, in bringing the two departments together to bring our individual and unique experiences and individual and unique talents to this fight.

I'm very proud of the effort that we've had here, and together with Henrietta Fore, I think that you're seeing that democracy, defense, and development, the three Ds, will be at the foundation for American policy going forward. And I'm very proud of this effort, and I suspect that that means that there are two American universities that may be teaching from this manual.

And now to my good friend, Bob Gates. And not only are we both Ph.D.s and former high-ranking university administrators, but we both studied the Soviet Union, which, in case you don't know, no longer exists. And it means that we found useful work after that.

Bob.

Secretary Gates. Thank you, Condi. I'm honored to sign the Interagency Counterinsurgency Guide today and demonstrate my support for whole-of-government counterinsurgency process. Military efforts alone are rarely effective in counterinsurgency operations. This guide reflects strong efforts by many organizations and individuals to build the soft power capabilities and the coordinating processes within the United States Government that are so central to our counterinsurgency efforts.

So I want to thank Secretary Rice, Administrator Fore, and Counselor Cohen for providing strong leadership in building soft power capabilities within our foreign policy establishment and advancing the image of the United States among our partner nations.

Thank you.

Administrator Fore. And let me add for my two secretaries that it is very important for us in the world of development to have a guide such as this. It's a very complex and challenging area—the work of counterinsurgency. We in development will particularly focus on helping host country governments how they can deal with good governance while having an atmosphere of counterinsurgency. It is very challenging, but country ownership and legitimacy of a government, as well as continuing good governance and democratic reforms, are a very important and integral part. And we will add our highest accolade in that we will use this guide in the field. Thank you.

Ambassador John Danilovich delivered these remarks in Washington, DC

Ambassador Danilovich. I'm very happy to be here with all of you today and I'm especially happy to be here with you Steve. Steve was one of the first people I spoke with when I came to Washington from Brazil in 2005, and now you are the host of my last public appearance as CEO of MCC. So in a sense, we've come full circle. You and your colleagues at the Center for Global Development, especially Nancy Birdsall and Sheila Herrling, have been terrific partners—providing MCC with candid assessments and advice which we found enormously constructive (and at times irritating). In any case, I think you know that if the comments were from CGD, we took them seriously.

With the beginning of a new administration, Washington is abuzz with the talk of changes and challenges, and there is general agreement that an overhaul of U.S. foreign aid is necessary. In fact, criticism of development practices—internationally—is widespread and many countries are reassessing their approaches and analyzing their results—often in reference to the MCC. However, it is worth remembering that development work, writ large, has yielded some amazing achievements:

• * Small pox has been eradicated—polio is close;

• * A green revolution in agriculture has put food on more tables than ever before;

• * In the last 15 years alone, some 30 million more children all over the world have enrolled in primary school;

• * More than a billion and a half people now have access to better drinking water; and

• * On average, people are living 20 years longer across the developing world.

To borrow a current expression, there is change we need, and change we can believe in. Progress is possible.

In a week I will complete my tenure at MCC and return to the private sector. As the head of the United States' newest development agency during some of its most formative years, I have a unique perspective on what it takes to put into practice some of the most meaningful lessons we have learned in development.

MCC began as a great concept for helping developing countries to reduce poverty through sustained economic growth. But we aren't a concept anymore. We are way beyond that. We are an acknowledged reality. Starting from scratch in 2004, we have to date committed $6.7 billion to 18 compacts and 19 thresholds programs in 35 partner countries. We've had an incredible trajectory. When I say “we,” I mean my professional, talented, creative and disciplined colleagues at the MCC with whom I have had the good fortune to work over the past several years— some of whom have been there since the beginning in 2004 and the many others who now comprise the almost 300-person staff of MCC. It is they who deserve full credit for the success of this organization.

I have found it prudent to be somewhat reserved in the debate on foreign assistance reform, but today, as I'm soon not only leaving MCC, but leaving town, and in fact, leaving the country, I'd like to provide you with some candid observations about:

• * MCC's purpose;

• * How our experience could strengthen the broader US foreign assistance portfolio;

• * And what that means for the future of foreign aid reform.

MCC's Purpose

MCC was created as a unique model with a specific purpose. While objective selection criteria, country ownership, and results focused on economic growth and poverty reduction don't implicitly make MCC better, they do make us distinctive—and in the context of aid reform, there is great value in acknowledging, and making use of that fact.

Although a small agency, MCC's presence in the US assistance portfolio has amplified our country's role as an engaged and compassionate global leader—a leader that cares about long-term economic development around the world—a world with less poverty, more sustained growth, more active participants in the global economy, and greater international and national security.

How our experience could strengthen the broader US foreign assistance portfolio

So with the benefit of a clear purpose and a fresh start, MCC put in practice some of the most difficult lessons of aideffectiveness and in five years we have learned enough to identify real practices that could further strengthen the broader U.S. assistance portfolio.

First, country performance must remain at the heart of how MCC selects countries. By using objective policy performance indicators to identify country partners— and then delivering assistance to promote economic growth and poverty reduction— MCC gives credence to the assertion that when it comes to economic development, it is policies that matter, not politics.

Second, country ownership is something that should be more widely adopted across development programs. Even with intense pressure to disburse money more rapidly, we can not push aside our country partners in their efforts to assume responsibility for their own development. When a country leads the program proposal process, they determine what they need. These proposals are not only more likely to be for high-impact investments, but they are often deeply integrated into that country's efforts to meet Millennium Development Goals or to improve trade capacity. Furthermore, when an elected government takes a visible public role in economic development, their citizens are much more likely to hold them accountable. So if progress on the Millennium Development Goals, increased trade capacity, and accountable democracies are to be valued, then reform of development assistance should place greater emphasis on countries owning and leading their development.

Finally, transparent results monitoring must be adopted more broadly if the American taxpayer is to get a return on their investment. I have seen few organizations—public or private—combine rigorous results monitoring with aggressive transparency in the way MCC does. MCC not only publishes its agreements and quarterly reports, but it has also pushed the envelope on transparency by posting economic rate of return data and monitoring and evaluation plans for ongoing projects.

The risk for such transparency, of course, is that it provides plenty of opportunity for critics to play “gotcha”—and they do. MCC has been criticized for technical imperfections in analysis that no one else even makes public. I believe, however, that this will make MCC even more effective over time—being realistic about mistakes always does—but this also depends on whether continued openness is respected, rewarded, and emulated—or punished by outside stakeholders.

In practicing these principles, MCC has made a substantial contribution to the development community. However, two facts are inescapable:

One: Our ability to achieve these things is rooted in some very basic operational flexibility that must continue at MCC. Ownership requires

• * an absence of earmarks;

• * long-term investments require the full 5 years of funding at the time a compact is signed; and

• * the focus on results requires open market efficiency through competitive procurements.

Two: There are tradeoffs. Some of the principles we are most proud of are in direct tension with the traditional aid measures that Congress and other colleagues rely on: country ownership and capacity development vs. the speed of disbursements; results monitoring vs. the expectation of a 100% success rate.

Our choice has been to embrace risk, but to do so carefully, asking country partners to take charge of their own development, both strategically and tactically. We work from the perspective that enabling local, transparent, and results-oriented implementation is far more effective to sustainable development than just disbursing dollars. Anyone can spend money, few seldom do so effectively. Although there will inevitably be Compacts that fall short of our joint expectations, those that are successful will have the kind of deep domestic roots needed to be truly transformational. This is what we all want— meaningful success whenever it is possible and honesty whenever it is not.

What that means for the future of foreign aid reform

So what does all of this mean for the future of US foreign assistance?

Full consolidation is not the answer.

Yes, there is a need for greater coherence and coordination within foreign assistance—but a complete consolidation of the U.S.'s existing tools would blunt some of our sharpest instruments by unnecessarily choosing a single primary objective from our divergent national interests.

MCC greatly benefits from the fact that we were specifically created to pursue economic growth and poverty reduction— period. We have a clear strategic goal, and the operational flexibility to pursue it efficiently: that sets us apart from much of the rest of the aid architecture and is an important factor in the reform process. Other aid agencies have grappled with generations of operational directives that were motivated by good—but often contradictory—intentions.

With that in mind, the reform process must acknowledge that there are many different objectives for foreign assistance —the United States supports stronger democracies, relief for humanitarian crises, greater national security, AND global economic development. But these are fundamentally different objectives and require fundamentally different legal authorities, staff expertise, and delivery mechanisms. While humanitarian and security concerns react to immediate needs, sustainable development requires a long-term focus. Therefore, a rationalization of the U.S. foreign assistance portfolio should put development at the center and focus more clearly on the long term. If we

• * preserve MCC's use of objective (“good government”) policy criteria for selection purposes,

• * maintain its focus on country ownership and poverty reduction through growth, and

• * take steps to strengthen its operational flexibility and increase its funding, MCC could be the United States' strongest, most reliable vehicle for supporting long-term development.

This would mean increasing MCC funding, authorizing it to conclude concurrent, longer, and regional compacts, and taking actions that protect our up-front funding from other demands. To remain credible, and to retain our incentive policy reform effect, MCC would also have to continue to tell some countries, “no”—which means the U.S. would need to retain other mechanisms to provide development assistance when a country does not meet MCC's criteria.

Placing MCC at the center of the U.S. development assistance portfolio would ensure that the largest blocks of flexible development funding are allocated to countries that have demonstrated commitment to fundamental good governance principles that make development sustainable and effective.

More practically, it could also allow our existing public / private board to extend its strategic coordination function to other foreign assistance programs.

MCC's board structure enables us to fit effectively within a coherent foreign assistance framework. The presence of government members ensures strategic coordination with the goals of other U.S. government agencies without undermining the development focus of our work. We further benefit from the diverse and relevant experience of our private sector members that bring an independent perspective.

Conclusion

Over the past three years, I have visited compact countries, threshold countries, and countries aspiring to become eligible for MCC assistance. I have met with presidents and ministers, sat with villagers on dusty roadsides, and inspected irrigation works and agricultural projects. In Washington, I have reviewed countless project proposals, argued over economic rates of return, insisted on world class environmental and gender standards in our work, and met with countless members of Congress.

I can attest to you that MCC is working and has fundamentally changed the way poor countries tackle their own development challenges:

• * Land titles being distributed to the poor,

• * new roads opened in previously underserved rural areas,

• * rehabilitated gas pipelines delivering heat to homes and businesses,

• * agricultural projects increasing farmers' incomes, and

• * children being inoculated against deadly diseases or sitting down in a new primary school for the first time.

This is just a glimpse of the work on the ground that will multiply significantly in the months and years ahead. And most importantly, this is work being achieved by our country partners themselves in an efficient and transparent manner. The great concept is now a great reality, and I am honored to hand over a vibrant, robust organization to the new team.

We have put into practice some of the hardest lessons of development—that paternalism doesn't work; that good policies, country ownership, and results are key to sustainable development, that poverty reduction is best achieved through economic growth; and that it is worth risking transparent results monitoring for the benefit of people around the world.

It is in our best interest to preserve those lessons within our foreign assistance portfolio or perhaps even expand them into how the rest of U.S. foreign assistance is delivered.

I'd like to thank all of you for your time and attention today and for listening to what I have had to say. And I'd like to express my—and my colleagues—gratitude to you for your support of the Millennium Challenge Corporation. For you, too, have been a constructive part of this effort and, as we enter a new administration and a new phase of MCC's evolution, I would like to ask for your continued support for this innovative and outstanding model of American development assistance.

On Rescinding the Mexico City Policy

It is clear that the provisions of the Mexico City Policy are unnecessarily broad and unwarranted under current law, and for the past eight years, they have undermined efforts to promote safe and effective voluntary family planning in developing countries. For these reasons, it is right for us to rescind this policy and restore critical efforts to protect and empower women and promote global economic development.

For too long, international family planning assistance has been used as a political wedge issue, the subject of a back and forth debate that has served only to divide us. I have no desire to continue this stale and fruitless debate.

It is time that we end the politicization of this issue. In the coming weeks, my Administration will initiate a fresh conversation on family planning, working to find areas of common ground to best meet the needs of women and families at home and around the world.

I have directed my staff to reach out to those on all sides of this issue to achieve the goal of reducing unintended pregnancies. They will also work to promote safe motherhood, reduce maternal and infant mortality rates and increase educational and economic opportunities for women and girls.

In addition, I look forward to working with Congress to restore U.S. financial support for the U.N. Population Fund. By resuming funding to UNFPA, the U.S. will be joining 180 other donor nations working collaboratively to reduce poverty, improve the health of women and children, prevent HIV/AIDS and provide family planning assistance to women in 154 countries.

Secretary Hillary Clinton delivered these remarks in Washington, DC

Secretary Clinton. I want to thank President Rodríguez Zapatero for hosting this High Level Meeting on Food Security for All. This is a welcome occasion, and I pledge my support with you to work to address global hunger.

I am sorry that I could not attend today, but I am sending a strong team composed of senior officials from across the United States government who will report back to me after the meeting.

President Obama has made clear that alleviating hunger worldwide is a top priority of this Administration. As he said on the first day of his Presidency, “to the people of poor nations, we pledge to work alongside you to make your farms flourish and let clean waters flow; to nourish starved bodies and feed hungry minds.” The President and I intend to focus new attention on food security so that developing nations can invest in food production, affordability, accessibility, education and technology.

Food insecurity and high food prices pose a threat to the prosperity and security in many developing countries. Millions of people are at risk of being pushed back into poverty, jeopardizing the achievement of the Millennium Development Goal to cut hunger and poverty in half by 2015. And governments and nations, as you know so well, are more likely to be unstable when their populations are hungry and unfed.

We are committed to building a new partnership among donor states, developing nations, UN agencies, NGO's, the private sector and others to better coordinate policies to achieve the Millennium Development Goals agreed to in 2000.

Once again I want to commend Spain for taking the initiative to further global efforts to find a long-term solution to the problem of hunger. This is one of many issues that needs collaboration and coordination among nations, especially in light of the complex global challenges we share in this new century. I look forward to working closely with you and others to support the results of this important conference.

Press Release from the U.S. Agency for International Development, January 26, 2009Footnote ¹¹

President Barack Obama rescinded the Mexico City Policy on January 23, 2009. USAID is implementing this change immediately and issued an official notice informing its field offices worldwide. Additional specific guidance for USAID agreements officers will be issued later today. The Mexico City Policy, which was first announced by President Ronald Reagan in 1984, directed USAID to withhold family planning assistance from foreign, non-governmental organizations that use non-USAID funds to engage in a wide range of activities, including providing advice, counseling, referrals or information regarding abortion, or lobbying a foreign government to legalize or make abortion available.

In rescinding the policy, President Obama noted the importance of reducing unintended pregnancies as well as working to promote safe motherhood, reduce maternal and infant mortality rates and increase educational and economic opportunities for women and girls. USAID is strongly committed to achieving these goals. His announcement directed USAID to immediately waive the policy's conditions in any current grants; notify current grantees, as soon as possible, that these conditions have been waived; and cease imposing these conditions in any future grants.

USAID places high priority on preventing abortions through the use of family planning, saving the lives of women who suffer complications arising from unsafe abortion, and linking those women to voluntary family planning and other reproductive health services that will help prevent subsequent abortions. USAID is prohibited from providing funds to pay for the performance of abortion as a method of family planning or to motivate or coerce any person to practice abortion, as stipulated by the Helms Amendment enacted in 1973. This and all other statutory and policy requirements relating to family planning remain in effect.

With U.S. government support, international family planning programs have been successful. In fiscal year 2008, USAID programmed $457 million for family planning activities. Since the 1960s, the percentage of women and couples using contraceptives in the developing world has risen from less than 10 percent to more than 50 percent. The average number of children born to women in these countries has fallen from six to three. Repealing the Mexico City Policy will help improve the lives of mothers and children through increased access to family planning services and supplies. Global estimates indicate that by helping women space births and avoid unintended pregnancies, family planning could prevent 25 percent of maternal and child deaths in the developing world.

The policy had been in effect from 1985 until 1993, when it was rescinded by President Bill Clinton. President George W. Bush reinstated the policy in 2001, and it remained in place since that time.

Press Release from the U.S. Trade and Development Agency, January 29, 2009Footnote ¹²

Rehabilitating water infrastructure and improving water sanitation in Romania in furthering the country's implementation of European Union (EU) environmental standards are the goals of a USTDA grant awarded today to Aquaserv S.A., the regional water company in Tulcea County in Romania. The grant will be used to fund a study that will examine options to improve the functionality and efficiency of municipal water distribution and sewerage systems in the county, and to employ more cost-effective and environmentally sound water disinfection methods.

The $339,400 grant was conferred in a signing ceremony at City Hall in the municipality of Tulcea. USTDA Country Manager Jamie Merriman and Aquaserv General Manager Sorin Zaharcu signed the grant agreement on behalf of the U.S. government and Aquaserv, respectively.

Tulcea County is Romania's second largest in land area and its capital, the municipality of Tulcea, is located on the Danube River in an area of great importance to the ecological balance and productivity of the Black Sea. The water and wastewater system improvements that are the focus of the USTDA-funded study are a local and national priority, as Romania is scheduled to meet EU environmental standards within the next decade.

To further these objectives, the USTDA grant will fund an analysis of the water and wastewater infrastructure in the city of Tulcea. The study will examine options for pipeline rehabilitation, including “trenchless,” cured-in-place technology, and options to replace the use of chlorine gas as a disinfectant for potable water in Sulina. These upgrades are expected to lead to significant U.S. exports during project implementation and generate substantial savings to the Romanian government by improving the system's efficiency, reducing soil and groundwater contamination, and eliminating the risk associated with the current deliveries of chlorine gas in the Danube Delta.

Press Release from the U.S. Trade and Development Agency, February 5, 2009Footnote ¹³

Fostering the development of a nationwide information and communications technology (ICT) network in Bulgaria is the goal of a USTDA grant awarded today to the State Agency for Information and Communication Technology (SAITC). The grant will fund a study that will evaluate the economic and technical feasibility of developing a network that will ultimately connect all local and national government entities, enabling Bulgaria to comply with EU administrative standards.

The $390,180 grant was conferred in a signing ceremony at SAITC's office in Sofia. U.S. Ambassador to Bulgaria Nancy McEldowney and SAITC Chairman Plamen Vatchkov signed the grant agreement on behalf of the U.S. and Bulgarian governments, respectively. SAITC Advisor Roumen Trifonov and Senior Commercial Officer Scott Pozil, from the U.S. embassy in Sofia, signed as witnesses to the grant agreement.

The current lack of interoperability between ICT systems at various government entities in Bulgaria hinders interagency cooperation, thus reducing the quality of public services and increasing costs. Under a new e-governance law, approved by the Bulgarian Parliament in June 2008, strong requirements for interoperability among administrative information systems, as well as for network and information security, have been introduced. In addition, the Government of Bulgaria has identified the creation of a national network as one of its top priorities under its e-government program.

In a preliminary move to unify government networks, the SAITC was mandated to expand its present network and to evolve it into a National State Network for communications between ministries, regional authorities, and municipalities.

The network will also provide core ICT infrastructure for broad public access to e-government services. The grant awarded today will further this effort by funding the development of a roadmap for expanding the SAITC network and unifying it with other ICT networks operated by various government agencies.

Today's grant reflects USTDA's ongoing commitment to the development of the ICT sector in Bulgaria. In the past seven years, the agency has funded four orientation visits that brought senior Bulgarian officials to the United States to learn about cutting-edge U.S. ICT equipment and services that could be applied in meeting Bulgaria's priorities for technological and procedural improvements in ICT infrastructure, emergency management and e-government services. To date, over $18 million in U.S. exports by Microsoft, Cisco, Tumbleweed, Hewlett Packard, and IBM for consulting and training services and various hardware and software products are attributable to the contacts made during these USTDA-sponsored visits.

Press Release from the U.S. Trade and Development Agency, February 6, 2009Footnote ¹⁴

Today, USTDA awarded a grant to the State Government of Minas Gerais Economic Development Secretariat to further the State's goal of expanding its aviation infrastructure. The grant, which reflects USTDA's ongoing commitment to the country's development since naming Brazil as its 2008 Country of the Year, is the third awarded by the agency in recent months in support of the State's development priorities. Today's grant will fund a study that will recommend various options available to Brazil as it invests $1.3 billion in upgrading and expanding the Tancredo Neves International Airport.

The $573,000 grant was conferred in a signing ceremony at the U.S. Embassy in Brasilia. U.S. Ambassador to Brazil Clifford M. Sobel and Minas Gerais Governor Aécio Neves signed the grant agreement on behalf of the U.S. government and State Government of Minas Gerais, respectively.

Tancredo Neves International Airport serves Belo Horizonte, the state capital, and is the seventh busiest airport for passenger traffic in Brazil. In 2007, the airport handled 4.3 million passengers and over 55,000 flights, up from approximately 10,650 in 2004. While demand at the airport has steadily increased, so has the need to expand the airport and to update its Master Plan.

The USTDA grant will provide and updated demand-capacity analysis, financial plan, and an environmental and developmental impacts analysis. Moreover, the study will analyze forecasted passenger and cargo growth, runway extension and construction options, passenger terminal upgrade and second terminal construction options, and analyze cargo facility capital improvement options. The study will also provide recommendations with respect to the options for the development of public-private partnerships at the airport.

Press Release from the U.S. Trade and Development Agency, February 11, 2009Footnote ¹⁵

Reinforcing efforts to strengthen aviation safety in meeting the increasing demand for aviation transportation services in Ghana is the goal of a grant awarded today under USTDA's African Trade Lanes Partnership. The Partnership aims to advance the development of sub-Saharan Africa's most vital trade lanes and transportation networks to facilitate local, regional, and global trade.

The $295,000 grant was conferred during a signing ceremony held at the U.S. Embassy in Accra. Chargé d'Affaires Sue K. Brown and Acting Director General Simon Allotey of the Ghana Civil Aviation Authority (GCAA) signed the grant agreement on behalf of the U.S. and Ghanaian governments, respectively.

Ghana has experienced strong increases in air passenger traffic over the past 10 years, with international passenger traffic at Kotoka International Airport, Ghana's main international airport, growing at double digit rates since 2004. In addition to this strong growth in international passenger traffic, Ghana has seen strong growth in air traffic, which has nearly doubled in the past decade. To increase the capacity of GCAA to meet current and projected demand over the next 15 years, USTDA awarded a grant to support the development of a new Air Traffic Control Center at Kotoka International Airport. The USTDA-funded study will recommend a location and the technical specifications for the new facility.

Press Release from the U.S. Agency for International Development, February 13, 2009Footnote ¹⁶

The U.S. Agency for International Development (USAID) in Colombia is launching an initiative to market high-quality, socially-responsible Colombian products for retail sale in the United States.

USAID facilitated an alliance between Tecnovo, an NGO that provides support to people affected by armed conflict, and Grower-2-Buyer, a Miami-based company which distributes fresh-cut Colombian flowers to 174 wholesalers and 11 supermarket chains in the United States and Canada.

This initiative provides legitimate business opportunities for Colombians, steering them away from cultivating illicit crops. Former enemies in the Colombian armed conflict are now working together with people who have lost their homes and the disabled to produce hand-made ceramic vases for miniature roses distributed by Grower-2-Buyer.

Grower-2-Buyer's expertise in flower distribution, along with its access to U.S. retailers, has proven to be an effective vehicle to bring USAID-supported products to the U.S. market. As a result of this alliance, 100 stores in Maryland, Virginia, Washington, D.C., and Delaware will carry the USAID-branded product “the Love-Bunch” in time for Valentine's Day. The product is also being sold online at www.love-bunch.com.

“By working together to help transform communities deeply affected by the conflict, we are more than the sum of our parts. This initiative will help inform U.S. citizens of the work that USAID is doing with companies like Grower-2-Buyer to cultivate a lasting peace in Colombia,” said Susan Reichle, USAID Mission Director in Colombia.

“Our experience with USAID has been inspiring. Our collaboration has resulted in the development of a new product— one that we are very proud of—as it has not only enabled our business to grow but allowed us to join in the effort to bring peace to Colombia,” said Daniel Sabogal, owner of Grower-2-Buyer.

Press Release from the Millennium Challenge Corporation, February 18, 2009Footnote ¹⁷

Millennium Challenge Corporation (MCC) Acting Chief Executive Officer Rodney Bent and Oxfam America Senior Vice President John Ambler hosted a public forum today on the principle of “country ownership.” The forum, held at the National Press Club, examined the impact of country ownership on foreign assistance and economic development, highlighting the critical role of country ownership in aid effectiveness.

“Country ownership is already positively affecting the delivery of economic development aid and providing powerful lessons for defining its role in foreign assistance” said Acting MCC CEO Rodney Bent. “Country-led development encourages accountability, self-reliance, and entrepreneurship, and ensures that foreign assistance dollars are used wisely and achieve the maximum results” Mr. Bent added.

Country ownership, or country-led development, is recognized by the international donor community as a vital element of long-term sustainable economic development. Today's conversation set out a framework for a better understanding of what “ownership” means within the international donor community and focused on the practical steps a development agency can take to embrace it. Because country ownership is a founding principle, MCC focuses on ways to ensure that its partner countries facilitate the prioritization process during program development, are responsible for implementation, and are accountable to their domestic stakeholders for both decision making and results.

“US development funding should be used to empower poor communities and their leaders to find their own solutions to poverty. The US, as the one of the largest aid donors in the world, has an incredible opportunity to give aid recipients control over their futures,” said John Ambler, Senior Vice President for Programs at Oxfam America. “Decades of hands-on development work have shown that this change in orientation will have a lasting impact on reducing poverty from the ground up.”

Press Release from the U.S. Agency for International Development, February 19, 2009Footnote ¹⁸

A focus on vulnerable and street children, a new curriculum to promote good governance, an emphasis on developing stronger relationships with the private sector, and a initiative to promote wireless Internet access, are part of a new, five-year basic education program launched this week by the U.S. Agency for International Development (USAID) in Senegal. The $40 million program will be implemented in 10 of 14 regions in Senegal. Working closely with the Ministry of Education, USAID will:

• * target more than 50,000 vulnerable children and street children, many of whom participate in the Koranic (Islamic) school system in Senegal and, in collaboration with local religious leaders and elected officials, ensure that they get increased educational support;

• * develop a new curriculum that includes a focus on existing needs in the job market;

• * promote issues of good governance with students and help implement them within the middle school curriculum;

• * improve management and governance of the education system in Senegal through collaboration with Parent-Teacher Associations;

• * increase WiFi access in more than 400 schools and provide training on new technologies that will support learning in the schools; and

• * implement a national campaign to raise awareness of public-private partnerships in the education sector and encourage their formation.

“The success of this program will depend on all the actors-political, technical and social,” said Kevin J. Mullally, USAID's director in Senegal. “I am convinced that by working together with all those who are interested in improving middle school education in Senegal, at the end of five years' time we will have given these excluded children a new chance to learn, to grow and to succeed.”

The project was conceived and financed by USAID, and is being implemented by the Academy for Educational Development, and its sub-grantees, RTI and Counterpart International.

Press Release from the Millennium Challenge Corporation, February 25, 2009Footnote ¹⁹

CEO Statement on Proposed FY 2009 Funding for MCC

MCC's Chief Executive Office (Acting) Rodney Bent today issued the following statement regarding House passage of the Omnibus Appropriations Act for FY 2009 that contained $875 million in funding for the agency.

The FY 2009 Omnibus Appropriation Act would substantially reduce MCC funding from last year's level of $1.5 billion to $875 million. This level of funding will be a disappointment to those countries that are in various stages of negotiation with MCC about potential projects to reduce poverty. These countries have more than 200 million citizens that live on less than $2 a day.

Even at this lower level of funding, MCC will continue to fulfill its mission of reducing poverty through economic growth in the world's poorest countries, as well as to fulfill President Obama's inaugural pledge: “To the people of poor nations, we pledge to work alongside you to make your farms flourish and let clean waters flow; to nourish starved bodies and feed hungry minds.”

MCC's commitment to performance-based foreign assistance is at the forefront of the current debate on America's “smart power” tools. MCC looks forward to working with both our partners in Congress and our country partners all over the world to combat poverty in a sustainable and meaningful way.

Press Release from the U.S. Agency for International Development, February 25, 2009Footnote ²⁰

The United States Agency for International Development (USAID) and Coca-Cola have formed a global alliance—the Water and Development Alliance (WADA)—to provide clean, potable water to Mozambique's sixth largest urban region, Chimoio. This alliance brings together funding commitments from all partners totaling about $1.79 million, of which $500,000 comes from USAID.

Currently, 10-15 percent of Chimoio's 250,000 residents are served by an inconsistent and inadequately treated water supply that poses serious public health risks and hampers industrial and commercial growth. WADA and its partners will supply running water to about 25,000 people, 12 schools, one provincial hospital, one secondary health facility, and local industrial and commercial users. This project will also improve the health of Chimoio residents, and increase economic activity and employment.

Coca-Cola is a long standing global USAID partner, but this is Mozambique's first partnership with the global beverage company. “We are looking forward to a long and productive relationship with the possibility of taking this partnership to other provinces where USAID and Coca Cola operate and have common goals,” said Todd Amani, USAID Mission Director in Mozambique.

Funds provided by the alliance will be used to rehabilitate the TextAfrica Water Treatment Plant, part of a dilapidated former textile factory located on the outskirts of Chimoio. The project will rehabilitate several parts of the system—including pipes and pumping stations—to improve water delivery management and develop cost-recovery polices to ensure that the plant is sustainable once the work has been completed.

Other projects will focus on 14 boreholes throughout the city. In addition, workers will extend a secondary water distribution network to Bairro 4—a neighborhood identified by the municipal and community leaders as most in need of an improved water supply system. In addition, six new small water systems will be installed in neighborhoods throughout Chimoio City to provide enough water for present and future needs.

Press Release from the U.S. Agency for International Development, February 26, 2009Footnote ²¹

William R. Brownfield, U.S. Ambassador to Colombia; Ana Noguera, Vice-Minister of Labor Affairs; Marcelo Castro Fox, Director of the International Labor Organization and Teresa Casertano, Solidarity Center's Regional Program Director for Latin America, launched Trade Union Strengthening in Colombia, a new U.S. Agency for International Development (USAID) funded labor rights and union strengthening program.

Implemented by the American Center for International Labor Solidarity (Solidarity Center) of the American Federation of Labor—Congress of Industrial Organizations, this new program will work with Colombian unions, the Colombian government, and other stakeholders to develop and promote legal reforms, to allow the inclusion of workers in unions under a wide variety of contract arrangements, and to permit unions to organize by economic sector at regional and national levels. The program will assist Colombian labor unions in developing and implementing organizing strategies to attract sub-contracted workers and members of cooperatives into unions. It will also provide training to Colombian union leaders in financial management, transparency, member services, negotiation, and collective bargaining.

Press Release from the U.S. Trade and Development Agency, February 26, 2009Footnote ²²

Reflecting the Agency's ongoing support for the objectives of Mexico's 2007-2012 National Infrastructure Program (NIP), USTDA awarded a grant today to Opción Integradora Baja Aeropuerto, S. de R.L. de C.V. (OIB Aeropuerto) to promote the development of new airport infrastructure in northwest Mexico. The grant will be used to develop a roadmap for a greenfield international passenger and cargo airport in Ensenada, Mexico. This grant represents further investment from USTDA in the development of Mexico's economic development. Last year, USTDA provided over $2 million in support of priority infrastructure projects that further the objectives of the NIP, including three other airport development grants that were awarded in February 2008 at the USTDA-sponsored U.S. and Mexico: Building Partnerships in Infrastructure conference in Mexico City. Together, these grants reflect USTDA's strategy of focusing on development projects in Mexico that will create opportunities for the export of U.S. manufactured goods and services.

The $630,000 grant was conferred in a signing ceremony at the Residence of the U.S. Consul General in Tijuana. U.S. Consul General in Tijuana Ronald J. Kramer and OIB Aeropuerto General Manager Hector Moisés Calderón Quintero signed the grant agreement on behalf of the U.S. government and OIB Aeropuerto, respectively.

Ensenada International Airport (EIA) is one of three new airports selected for development under the NIP, which outlines goals and strategies to increase the coverage, quality and competitiveness of Mexico's transportation, energy and environmental infrastructure. OIB Aeropuerto is a private company that was granted a 30-year concession by the Government of Mexico in 2007 to construct, administer, and operate the airport. The airport is intended to replace Ensenada's small general aviation airport (El Ciprés), which is surrounded by the city and cannot be expanded further, and to serve as a secondary airport for the city of Tijuana, located 80 kilometers to the north. In addition, EIA would serve as a cargo and logistics hub for northwest Mexico in support of the NIP objective of increasing the country's air cargo capacity by 50 percent. The airport would have intermodal links to seaports and surface transportation, including road and rail.

OIB has selected T.Y. Lin International of San Francisco, California, as the U.S. firm that will perform the USTDA-sup-ported study. In addition to the grant awarded today, T.Y. Lin International will contribute additional resources toward the study's completion.

Press Release from the U.S. Agency for International Development, March 5, 2009Footnote ²³

At a ceremony yesterday hosted by the U.S. Agency for International Development's Acting Administrator Alonzo Fulgham and Her Excellency Ms. Maha Khatib, the Minister of Tourism and Antiquities, USAID launched its new tourism initiative designed to support the tourism industry in Jordan and improve its competitiveness. Under the new initiative, USAID will provide support for three new projects over the next five years.

The projects, which together make up a total of $38.3 million, build on America's decade long support for Jordan's tourism sector and its successful partnership with the Jordanian government and local organizations and communities to strengthen tourism as priority growth sector in Jordan's economy. The three separate projects are:

• * The Jordan Tourism Development Project II will be coordinated closely with the Ministry of Tourism and Antiquities and other stakeholders to develop key tourism products and destinations in Jordan and strengthen the capacity of tourism institutions to lead and guide the sector.

• * The Nature-Driven Rural Development in the Southern Region Project, which will link three of Jordan's tourist attractions—Petra, Dana and the newly protected area of Jebel Masuda—to form a world-class tourism complex.

• * The project for Cultural and Environmental Tourism, in which USAID has linked the U.S. National Park Service to work with the Jordanian government and local communities to strengthen the capacity of cultural and environmental tourism sites to enhance the tourism experience while at the same time assuring that environmental, natural and cultural resources are protected.

The ceremony was also attended by His Excellency R. Stephen Beecroft, U.S Ambassador to Jordan, and USAID Jordan Mission Director Jay Knott, as well as other USAID and Jordanian government officials, in addition to members of the tourism sector and beneficiaries of the USAID projects.

Press Release from the U.S. Agency for International Development, March 6, 2009Footnote ²⁴

The U.S. Agency for International Development (USAID) and the Overseas Private Investment Corporation (OPIC) announced February 20 the launched of a new initiative that will use OPIC's Enterprise Development Network (EDN) to provide technical assistance to small-and medium-sized enterprises (SMEs) in sub-Saharan Africa.

The new effort called the African Technical Assistance initiative, or EDN/ATA, aims to spur the development of small enterprise in Africa and provide African entrepreneurs with access to the capital and technical skills needed to enhance business production and competitiveness.

Both agencies say the initiative will increase the number of sustainable jobs in the region as well as provide a variety of other economic and social benefits. Entrepreneurs will be better equipped to handle their businesses, more credit-worthy projects will be funded, and capital to back the projects will be delivered with greater efficiency.

EDN/ATA will use at least $1.5 million to provide small grants averaging $25,000 to African entrepreneurs. SMEs can use these technical assistance grants to fund business activities such as:

• * expenditures to improve financial management, including a financial audit and compilation of financial records;

• * installation of a sound accounting systems, including software;

• * business consulting and business plan drafting;

• * market and feasibility studies; and

• * evaluations designed to improve existing operations.

SMEs requesting funding will be required to match the amount provided, but may find a sponsoring debt or equity provider to assist with the matching component. By April 15, USAID and OPIC will begin accepting applications from businesses and groups interested in becoming debt or equity-based EDN investors—providing the organizations with access to the large number of enterprises expected to apply for grants under EDN/ATA.

Press Release from the U.S. Agency for International Development, March 10, 2009Footnote ²⁵

The U.S. Agency for International Development (USAID) and International Organization for Migration (IOM) in Southern Africa launched a new program to reduce HIV vulnerability of farm workers in South Africa's Limpopo and Mpumalanga Provinces.

The three-year, $5.1 million project is funded by the U.S. President's Emergency Plan for AIDS Relief (PEPFAR), and administered by USAID. A recent release study by the IOM, identified high levels of unsafe sexual behaviour among farm workers—including extremely low condom use in casual sex and high levels of multiple, concurrent sexual partners. This report guided the development of an HIV prevention outreach effort to reach the high risk farm worker population.

The project will be known as “Ripfumelo,” which means “believe” in xiTsonga. It will target 20,000 seasonal, temporary, and permanent farm workers in South Africa, including documented and undocumented migrant workers through increasing the technical capacity of its implementing partners: Agri-IQ, CHOiCE and the Hoedspruit Training Trust. This increased capacity will lead to the provision of sustainable HIV prevention and care services to farm workers.

“One prevention program doesn't fit all people's needs. Farm workers face higher risks of getting and spreading HIV than many other groups. Our prevention efforts tackle their vulnerabilities, including alcohol abuse, that arise from many factors related to poverty and the transitional lifestyle of migrant workers,” said USAID Southern Africa Director Dr. Carleene Dei.

The project will develop a network of stakeholders working specifically on HIV-related issues to reduce the high incidence and impact of AIDS on farm workers, their families and their communities. Partnerships are encouraged among local, provincial, and national government agencies, as well as between public/private entities.

Julia Hill-Mlati, IOM regional project manager, reports, “HIV prevention efforts often focus purely on medical issues and fail to consider interrelated factors that affect people's vulnerability to the AIDS virus. This reason prompts our USAID Ripfumelo project to address the contextual issues such as workplace policies, improving life skills, financial literacy and promoting healthy recreational activities.”

Ripfumelo intervention activities include:

• * Tackling discriminatory gender dynamics and prejudices through the training of male role models as gender advocates.

• * Promoting peer-led education and referrals to relevant services and support.

• * Facilitating access to health services, including prevention, counselling and testing, home-based care and treatment.

• * Integrating locally tailored Social and Behavioural Change Communication programs that are developed and disseminated by local Change Agents.

• * Developing and implementing interventions that address some of the contextual factors that impact on HIV vulnerability, such as improving life skills, financial literacy and promoting recreational activities.

• * Creating a conducive environment by strengthening workplace policies and programs.

Press Release from the Millennium Challenge Corporation, March 11, 2009Footnote ²⁶

The Millennium Challenge Corporation (MCC) Board of Directors held its quarterly meeting today, the first chaired by U.S. Secretary of State Hillary Rodham Clinton and attended by new Board member Secretary of the Treasury Timothy Geithner, to discuss MCC programs generally and review in detail MCC's current partnerships with Armenia and Nicaragua. Given ongoing concerns about governance issues in Armenia and Nicaragua, the Board decided to convene an extraordinary interim review session prior to its June meeting to assess its partnerships with these countries. The new Board will make a final determination regarding MCC's ongoing engagement in these two countries once it has had time to assess the current status.

“During this turbulent economic time, MCC remains committed to performance-based foreign assistance as an effective “smart power” tool to reduce poverty through economic growth,” said Acting MCC Chief Executive Officer Rodney Bent. “We are pleased to welcome our new Chair, Secretary Clinton, along with the other new Board members. Their vision and vigorous advocacy for development in advancing America's global engagement is energizing.”

As a result of today's meeting, MCC will continue its suspension of assistance for certain activities under the $175 million MCC compact with Nicaragua. In December 2008—in response to the government of Nicaragua's manipulation of municipal elections and a broader pattern of actions inconsistent with the MCC eligibility criteria—MCC suspended assistance for all new activities not yet under contract and the property regularization project, which was being implemented by the government of Nicaragua. MCC called on the government of Nicaragua to address credible allegations of fraud during the November 2008 municipal elections and to demonstrate a clear commitment to democratic principles by taking concrete steps to restore the legitimacy and transparency of Nicaragua's electoral process. To date, the government of Nicaragua has not taken any meaningful steps to address these policy concerns.

The continued suspension sends a strong message to the government of Nicaragua that now is the time for serious and sustainable reform, and that the responsibility for these actions lies with the government.

MCC's commitment to poverty reduction and economic growth in Nicaragua will continue through MCC assistance for a rural business development project benefiting small and medium agriculture-related enterprises, including some 30,000 people in rural areas. The Board will review the current suspension under the compact at a special session prior to the June Board meeting.

“Aid accountability and good governance are founding principles of MCC. The government of Nicaragua has failed to reaffirm its commitment to democratic principles and practices since its suspension in December,” said Bent. “MCC's primary mission is to support sustainable poverty reduction, which requires MCC to partner with country governments committed to democracy and the rule of law. The government of Nicaragua must find a Nicaraguan solution to restore citizens' faith and confidence in their system.”

As a result of the meeting, the Board reiterated its concerns about the status of democratic governance in Armenia and will not lift the hold on MCC assistance for the rehabilitation of rural roads, while allowing the government of Armenia to fund construction. MCC will continue to provide assistance for irrigation infrastructure, which is well underway and assists Armenian farmers. The Board will review the current hold on funding road activities at a special session prior to the June Board meeting.

“The Board's decision today signals to the government that it has failed over several years to address concerns raised not only by MCC and other U.S. Government agencies, but the international community as well. It's now incumbent upon the government of Armenia to restore the Board's confidence to its commitment to democracy and good governance. MCC has given the government of Armenia every opportunity to make meaningful reforms and will continue its direct communication about its expectations moving forward,” said Bent.

The Board also reviewed the progress and emerging results from MCC's partner countries implementing poverty reduction and policy reform programs worldwide. Although MCC's funding level was reduced in the FY2009 Omnibus Appropriations Act, ongoing compact and threshold programs will not be affected by these cuts. MCC also will continue to work with partner countries to develop compact proposals to reduce poverty.

The Board discussed the status of MCC's compacts in development with Moldova, Senegal, Jordan, Malawi, and the Philippines. In addition, it discussed the compact development process for Colombia, Indonesia, and Zambia, the three new countries selected by the Board in December as eligible for MCC compact assistance.

The Board also received an update on MCC's threshold programs. Liberia and Timor-Leste were selected as eligible for MCC's threshold program by the Board in December. The threshold program assists countries that have shown progress and commitment toward policy reform. These countries are considered for assistance to further improve their performance on the indicators that comprise the MCC eligibility criteria. To implement the threshold program, MCC works collaboratively with other U.S. Government agencies, primarily USAID.

“MCC has developed a strong relationship with these countries, which present real opportunities to address critical policy issues and reduce poverty in Asia, Latin America, the Middle East, Africa, and Eastern Europe,” said Bent. “These countries include some of the most populous and poorest countries in the world and contain striking pockets of poverty.” Bent added that, “MCC's ability to support countries vitally depends on substantial funding from Congress.”

Press Release from the U.S. Trade and Development Agency, March 13, 2009Footnote ²⁷

Today, USTDA awarded a grant to Gallyas S.A., a Chilean telecommunications firm, to support an expansion of the mobile communications sector in Chile. The grant will support U.S. jobs by assisting Gallyas in developing its plans to upgrade from analog to a state-of-the-art digital technology trunking platform.

The $436,000 grant was conferred in a ceremony at the U.S. Embassy in Santiago. U.S. Ambassador to Chile Paul Simons and Gallyas Director Pablo Gallyas signed the grant agreement on behalf of the U.S. government and Gallyas S.A., respectively.

The Chilean telecommunications sector is one of the most advanced in Latin America, however, the frequency spectrum used for mobile communications is crowded. One of the methods used to conserve spectrum is trunking, which involves sharing a relatively small number of communications channels among a user or groups of users. Compared to analog, digital trunking offers increased efficiency and flexibility of communication, as well as improved signal quality and privacy.

The USTDA grant awarded today will support Gallyas' efforts to migrate from an analog trunking platform to a digital platform by funding an analysis of the technical, commercial, legal, regulatory and organizational aspects of the digital migration process.

Press Release from the U.S. Agency for International Development, March 18, 2009Footnote ²⁸

A public-private partnership to prevent the spread of HIV and increase access to HIV treatment and care among street children and other vulnerable youth in St. Petersburg, Russia was announced by the United States Agency for International Development (USAID), HealthRight International and Johnson & Johnson at the signing of a Memorandum of Cooperation today.

Estimates indicate that there are up to 10,000 street children and youth in St. Petersburg, many of whom struggle with substance abuse and other risky behaviors. Studies demonstrate extremely high rates of HIV transmission (37.4%) among this group, who have limited access to clinical treatment and care.

With support from USAID's Russia program and Johnson & Johnson, HealthRight International (formerly Doctors of the World-USA) together with its local partner, Doctors to Children, will reach 500 vulnerable youth with effective HIV prevention messages and a broad continuum of services, including mobile voluntary testing for HIV and referrals to treatment and care. The project will also develop a cadre of social workers trained in HIV prevention among street youth and disseminate a package of HIV prevention best practices to government institutions and non-governmental organizations (NGOs) across St. Petersburg.

“We are very pleased to join Johnson & Johnson and HealthRight International in a partnership to reach the most vulnerable youth with critically needed HIV prevention messages and services,” said Leon Waskin, USAID's Director in Russia. “This initiative builds on a previous collaboration that has demonstrated the impact we can achieve when we combine our resources and capabilities. I also want to thank the government in St. Petersburg for their support for this effort, both in the past and going forward, which is so important for the project's success.”

“Johnson & Johnson and HealthRight International are long-time partners on HIV/AIDS prevention and support for abandoned, neglected and at-risk children and youth in St. Petersburg,” said Naira Adamian, managing director for Janssen-Cilag Russia, the pharmaceutical division of Johnson & Johnson in Russia. “Investing in children infected or affected by the disease is a key strategy within our HIV/AIDS philanthropy portfolio. We are excited to work together with USAID to advance HealthRight's mission.”

“Partnerships such as this-engaging the local community, NGOs, private support, and public support from both the Russian and U.S. governments-is exactly the formula we need to ensure that children and youth in crisis not only get assistance today, but have a real chance at a future,” said HealthRight executive director Tom Dougherty. “These projects take time and investment, but the pay off is well worth it.”

Press Release from the Millennium Challenge Corporation, March 20, 2009Footnote ²⁹

Millennium Challenge Corporation (MCC) Acting Chief Executive Officer Rodney Bent issued the following statement today regarding MCC's $110 million, five-year poverty reduction grant program with Madagascar:

In light of recent events, MCC is placing a hold on the operations of its poverty reduction grant to Madagascar.

This decision is made with deep regret. Madagascar is the first country with which MCC signed a compact after being created by Congress in 2004. In efforts to improve the lives of hundreds of thousands of Madagascar's rural poor, MCC and Madagascar have worked collaboratively over the past four years to increase land security and investments in farms and other rural businesses, and to modernize the country's financial sector. To date, over half of Madagascar's MCC grant has been disbursed and over $80 million has been committed to contracts.

MCC is an agency designed to work with countries committed to good governance, the rule of law, and democratic principles. MCC management will review the situation in Madagascar with MCC's Board of Directors.

Press Release from the U.S. Agency for International Development, March 25, 2009Footnote ³⁰

The U.S. Agency for International Development's (USAID) Office of U.S. Foreign Disaster Assistance (OFDA) is providing more than $3.7 million in assistance to lower rates of malnutrition and increase food security of families in Senegal.

Of this $3.7 million, USAID is providing $2.7 million to improve community-based nutrition efforts and agriculture production in the regions of Ziguinchor, Sedhiou and Kolda in Senegal. The program, implemented by USAID partners Catholic Relief Services and Christian Children's Fund, will provide community-based nutrition programs for malnourished children; build community awareness for the importance of good nutrition and how to prevent malnutrition; educate farmers on the benefits of improved seed varieties; organize seed fairs that will make improved seed varieties available; and provide microloans to community-based groups.

USAID is also providing $1.05 million to the United Nations Food & Agricultural Organization (FAO) to provide regional coordination of food security and agriculture efforts. With this funding, FAO will strengthen livelihoods and improve the nutritional status of the most vulnerable households affected by rising food prices.

“USAID's assistance will help thousands of families struggling to cope with the immediate impacts of the global food and financial crisis on their households,” said Regina Davis, Principal Regional Advisor of USAID/OFDA's Regional Office for West and North Africa. “These projects will provide viable alternatives to increase self-sufficiency and lower overall malnutrition rates in vulnerable households.”

Press Release from the U.S. Trade and Development Agency, March 25, 2009Footnote ³¹

Today, USTDA awarded three grants totaling more than $1.2 million that continue the agency's ongoing support for the expansion of the port sector in Colombia. The grants will be used to fund feasibility studies associated with terminal rehabilitation at the Port of Salgar, operational and security enhancement at the Port of Buenaventura and centralized security and customs operations between the Ports of Cartagena and Contecar. The grants were conferred in a signing ceremony at the Corporacion Club El Nogal in Bogota. U.S. Ambassador to Colombia William R. Brownfield signed the grant agreements on behalf of the U.S. government. Together, the grants reflect USTDA's strategy of focusing on projects in Colombia that will create export opportunities for U.S. manufactured goods and services.

The first grant, in the amount of $415,000, was awarded to Sociedad Portuaria Multimodal del Rio Magdalena S.A. (Multipuerto), the operator of the Port of Salgar. The port is located along the Magdalena River near the town of La Dorada in central Colombia. The Colombian government is implementing an initiative to revitalize the country's main waterways as an efficient mode of commercial navigation. Consistent with these objectives, Multipuerto plans to rehabilitate the Port of Salgar. The USTDA grant will be used to evaluate the existing conditions and equipment at the port and determine the feasibility of the proposed rehabilitation. Cundinamarca Governor Andrés González signed the grant agreement. Multipuerto General Manager Julian Palacio Salcedo signed as a witness to the grant agreement.

The Sociedad Portuaria Regional de Buenaventura, the operator of the Port of Buenaventura, was the recipient of a separate $400,000 grant awarded today. The Port of Buenaventura is a multipurpose facility, located on Colombia's Pacific Coast, which handles containers, bulk cargo, break bulk, vehicles and general cargo. Currently, a number of upgrades are planned to increase the port's safety, cargo handling and efficiency. The USTDA grant will be used to evaluate the current conditions at the port and determine the feasibility of the proposed improvements. Deputy General Manager Ana Mercedes Cano signed the grant agreement on behalf of the Sociedad Portuaria Regional de Buenaventura. Executive Director Ana Lucio Jaramillo, from the American Chamber of Commerce (AmCham) in Cali, signed as a witness to the grant agreement.

A $400,000 grant was awarded today to the Sociedad Portuaria Regional de Cartagena, S.A., the operator of the Ports of Cartagena and Contecar on Colombia's Caribbean Sea coast. In 2005, USTDA awarded a grant to the Sociedad Portuaria Regional de Cartagena for a chain-of-cus-tody security study. Due, in part, to the implementation of the results of this study, the Port of Cartagena received compliance certification in 2007 by U.S. Customs and Border Protection under the Container Security Initiative, and also procured over $5 million in U.S. exports for project implementation. Today's grant will be used to determine the feasibility of developing a central customs and security facility to integrate the Ports of Cartagena and Contecar, which are located about 15 kilometers apart. Mr. Juan Carlos Acosta, General Manager of the Port of Contecar, signed the USTDA grant agreement. AmCham Cartagena Director Diana Lequerica signed as a witness to the grant agreement.

Together, the three grants awarded today illustrate USTDA's ongoing commitment and partnership with Colombia. In 2007, this long-standing relationship was recognized with the selection of Colombia as USTDA's Country of the Year award. The award reflected the success of the agency's program in Colombia in advancing mutual economic benefits and U.S. policy priorities. USTDA has been particularly active over the years in key infrastructure sectors such as energy, aviation, information and communications technology and ports.

Press Release from the Millennium Challenge Corporation, March 26, 2009Footnote ³²

The Millennium Challenge Corporation (MCC) hosted a business roundtable in partnership with the Embassy of the Kingdom of Morocco and the Moroccan American Trade and Investment Center (MATIC) to discuss significant upcoming procurement opportunities in connection with the poverty reduction and economic growth program that MCC is funding in Morocco. MCC Morocco Resident Country Director Muneera Salem-Murdock, MCC Director of Fiscal Accountability Sinnammal Souppaya, and Executive Director for MATIC Jean Abinader led the discussion with a group of international business investors.

“MCC is dedicated to reform, liberalization, and modernization, which creates a good investment environment for businesses,” said Ms. Salem-Murdock. “MCC shares with Morocco a commitment to help reduce poverty for its people. Morocco is located at a geographically strategic crossroads and is becoming a natural magnet for international business and investment as a result of its partnership with MCC. I want to thank the Moroccan Embassy and MATIC for joining us and supporting a pro-business, pro-investment climate in Morocco that will yield tangible changes for the people and the region.”

As an innovative U.S. Government approach to development assistance, MCC provides poverty reduction grants to countries that are working to improve their economies for the benefit of their citizens. Because eligibility for MCC funds is tied to performance on measures of fiscal, monetary, regulatory, and trade policy, including the number of days required to start a business; MCC creates a powerful incentive for countries to foster a business climate where the private sector can flourish. MCC works to stimulate homegrown entrepreneurship, small business development, and investor opportunities for domestic and international companies.

The compact signed with MCC is part of Morocco's own national development agenda. The compact leverages and complements reforms already underway to modernize and strengthen existing sectors.

MCC also discussed the procurement processes used by the government of Morocco in connection with the compact, including bidding documents, payment process, and the bid challenge system. Compact procurements are governed by MCC's program procurement guidelines, which are fair, competitive, transparent, and open and modeled after the World Bank's guidelines. MCC requires that procurements are untied to specific contractors, demand past experience and environmental, health, safety, and labor standards, are advertised openly, apply checks and balances to guard against abusive discretion, provide professional independent oversight, and pay contractors though a common payment system.

MCC signed a five-year, $697.5 million compact with the Kingdom of Morocco in August 2007, to reduce poverty and increase economic growth. The program seeks to stimulate economic growth by increasing productivity and improving employment in high potential sectors including investments in fruit tree productivity, small-scale fisheries, and artisan crafts. Small business creation and growth will be supported by investments in financial services and enterprise support.

Statement by Secretary of the Treasury Geithner, March 29, 2009Footnote ³³

President Moreno, ministers, ladies and gentlemen, I am delighted to be able to join you today.

I would like to thank the Government of Colombia for hosting this important meeting in this historic city of Medellin.

We meet at a critical time, for this hemisphere, for the global economy, and for the Inter-American Development Bank.

We now face extraordinary challenges. This is a global crisis and it requires a global response.

We are moving quickly in the United States to address these challenges, and we are committed to working closely with countries around the world and with the international financial institutions.

We recognize that recovery around the world depends on recovery in the United States. And we understand how closely our fortunes are tied to those of the global economy.

This is a time for the world to come together.

In just two months, President Obama has worked with Congress to pass the largest program of support for growth in the post war period. We are moving quickly to implement that program. And we are moving aggressively to stabilize and repair our financial system and restore the credit the businesses and consumers depend on. In the United States, as in all our nations, economic recovery requires financial repair and recovery.

These actions will help lay the foundation for growth. And, alongside these efforts, we need to act to make sure that the world never again faces a crisis of this severity.

Last week, I presented the major elements of the Administration's financial reform proposals. These reforms are designed to reduce systemic risk by creating a more stable financial system that is better able to withstand recession and dampens rather than amplifies future economic cycles. This will require stronger standards for capital and liquidity for all institutions that could pose risk to financial stability. It will require bringing derivatives markets, payments systems, and hedge funds with a framework of oversight. And it will require stronger tools for the resolution and management of future financial crises.

Later this week, President Obama will join the heads of state of the Group of 20 to form a global consensus on actions for sustained economic growth, financial stability, and significant reform to the international financial system. And next month President Obama will travel to the Summit of the Americas where the importance of global cooperation in addressing our current economic challenges will be a central theme.

I want to outline the four critical elements of an effective coordinated global response to this crisis.

First, we need to make sure that we each commit to substantial and sustained macroeconomic policy support for demand, using all available tools. Substantial policy actions are already in the pipeline. These need to be sustained on a scale that is proportionate to the challenges we face in each of our economies. And they need to be complemented by continuing actions to strengthen our financial institutions so that our banks and credit markets are able to support recovery.

Second, we need to reaffirm our commitment to maintain open policies toward international trade and investment and to avoid protectionist measures that could threaten recovery. This will be a challenge for all of us, given the severity of the pressures we each face domestically. But this is critical.

Third, we need to make sure the international institutions are able to deploy substantial resources quickly to help emerging and developing countries adjust to the sharp fall in global growth and the dramatic reversal in private capital flows. We are seeing this around the world, even in this region and even in countries with strong external positions and strong records of prudent financial management.

In this context we are prepared to support a very substantial increase in the short term resources available to the IMF and the multilateral development banks, and to support targeted use of those resources in new and innovative ways.

The IMF will play a central role in this process, and we have proposed the enlargement of the New Arrangements to Borrow (NAB) by up to $500 billion along with an expansion of its membership. And we are open to other steps to expand liquidity by the IMF in this moment of exceptional global needs.

Fourth, we need to build consensus on a strong set of reforms to the international financial architecture. Our markets are global and risk does not respect national borders. So we are committed to working with countries around the world to raise financial standards and to encourage a race to the top, to the highest standards of supervision and oversight, rather than a race to the bottom.

And in this context, we need to strengthen and reform the governance of the international financial institutions. We should commit to a clear roadmap to agreement on changes that would increase the voting shares and financial roles of the dynamic emerging market economies in the international financial institutions. The United States will support substantial reforms to make these institutions more representative of the changes in the balance of economic strength in the global economy and more effective in encouraging stronger economic and financial policies across all members.

The Inter American Development Bank will have to play a critical role in this global effort to confront the crisis.

There is no simple or uniform prescription to the challenges we each face at the national or regional level. And the IDB has a unique ability to help countries implement tailored programs to restore sustainable growth. The IDB was the first multilateral development bank to create a crisis-response facility through the Liquidity Facility for Growth Sustainability. Bank management also moved swiftly to expand its trade finance facility to fill the gap created by the withdrawal of private trade finance from the region.

The damage of financial crises falls most heavily on the most vulnerable. And the IDB has a special role to play in addressing the special needs of its poorest members, those suffering from the affects of sharp reductions in exports, remittances, and foreign investment. We welcome the actions to increase assistance to Haiti, and we will strongly support additional actions to mobilize support for the poorest countries.

In this context, I would also like to welcome China as a member of the IDB and to recognize China's substantial contribution to the Fund for Special Operations, the Bank's concessional window.

We would like to see the IDB move further. To help address the region's demand for finance this year and next, we encourage the IDB to expand its existing resources, alongside the World Bank and the other regional development banks. We believe there is additional room to expand your balance sheet and deploy additional resources to help governments in the region compensate for the sharp reduction in private finance. The IDB should set to work immediately to identify prudentially sound ways to further ramp up its lending in 2009 and 2010, reviewing its capital adequacy model and existing policies on lending limits. Part of this effort must be directed at providing the poorest countries with crisis response tools.

This is the most pressing immediate priority.

In the context of these efforts, the United States is also prepared to begin a formal review of the capital needs of the Bank to assess the merit of an increase in the bank permanent capital base.

As shareholders across the IFIs consider the need for additional resources, I want to outline some broad principles that should help guide these reviews.

First, we need to reexamine the relative roles of the International Financial Institutions both in more normal economic conditions and in crisis. I believe the regional development banks have a very important role to play in an effective global response to future financial crisis, alongside the IMF and the World Bank, but we need a clearer division of labor, that reflects the relative strengths of each institution, both in the low income countries and in those countries with strong external reserves and more developed national financial systems.

Second, in examining the case for an expansion of the capital base of the institution, we will evaluate whether each institution has shown its ability to demonstrate flexibility in their balance sheets under current resource constraints, and an ability to effectively leverage both public and private finance. The IDB has been working to expand its private financing arms. This work will be even more critical in the months ahead.

Third, we expect a commitment to good governance. This includes efforts to combat fraud and corruption and to strengthen the institution's risk management capacity and procedures to ensure sound investment of resources provided by the shareholders. This Bank, along with all the IFIs, needs to demonstrate adherence to the highest standards.

Fourth, we will look at the capacity of these institutions to adapt to change in the needs of its members, to demonstrate an ability to innovate and a capacity to achieve results with any increase in permanent capital, to continue to add value to the policy challenges of its members, and to deliver an ongoing commitment to reform. Just to cite one example, a key focus of any additional resources for the IDB should be for critical infrastructure, with appropriate risk sharing and engagement with new private and sub-sovereign partners. Another focus should be to promote environmentally sound policies and projects.

Finally, for those institutions with concessional and grant windows, we want to see greater focus on the needs of the poorest countries.

We will work with you. We will listen to your proposals with an open mind. We will engage with respect and appreciation for the different challenges confronted by all your members and the different solutions that will be necessary to address those challenges.

We should all be encouraged by the strength of the global response to this crisis. We need to all act together, and we need to make sure we sustain that commitment for the duration of the crisis.

It has been an honor for the United States to serve as Chair of the Board of Governors of the Inter-American Development Bank and Inter-American Investment Corporation over the last year.

I congratulate you on 50 years of support for development.

Press Release from the Millennium Challenge Corporation, March 31, 2009Footnote ³⁴

The Millennium Challenge Corporation (MCC), in partnership with the Business Council for International Understanding (BCIU) and with sponsorship from Development Finance International and Sheladia Associates, today hosted a seminar providing detailed information on upcoming road, transportation, energy, water, irrigation and other infrastructure-related procurement opportunities in Africa on MCC-funded projects.

“The success of poverty reduction projects in all MCC partner countries depends on the private sector's creativity, experience and expertise to deliver on these procurements”, said Acting MCC CEO Rodney Bent. “This is certainly the case with MCC partner countries in Africa. MCC recognizes Africa's enormous promise; and working together with the private sector, we can help our partners achieve a more prosperous future for the people the continent,” Mr. Bent added.

The majority of MCC's poverty-reduction programs, which include MCC-funded large-scale infrastructure projects that are implemented by MCC's partner countries, are in sub-Saharan Africa. As many of these five-year grants move into the next stages of implementation, MCC forecasts the largest set of procurement opportunities in the agency's history. These procurements will be offered by the countries themselves and conducted in accordance with MCC's guidelines and requirements.

The half-day seminar presented firms with up-to-date information on the procurement process that is followed by the implementing entity in each country, including standard bidding documents, payment process and bid system. MCC sector experts offered practical guidance to help firms get started and move ahead successfully with doing business in MCC partner countries throughout Africa.