(5) Section 107: Selected Countries and Organizations For the program in selected countries and organizations AID is requesting authorization and appropriation of $32 million ". . . for development programs conducted by private or international organizations." (Section 107 of the Foreign Assistance Act.) The fiscal year 1976 program totals $31.9 million. This constitutes slightly more than 3 percent of the total program proposed for the five functional accounts and compares to a fiscal year 1975 program of $38.6 million. (It should be noted that the support of three voluntary funds of the Organization of American States which in previous years was funded from this account has been shifted in fiscal year 1976 to the "International Organizations" account; the fiscal year 1975 OAS program level was $13.7 million.) The fiscal year 1976 program includes two main types of activities: -Contributions to selected regional and international organizations. Africa East Asia.--. Near East and South Asia__ Centrally funded and other_.. Total We proposed to finance the program in fiscal year 1976 as follows: New obligational authority. Plus recoveries____. Less transfer of funds to the State Department, Office of Refugee and Migration Affairs, under the authority of the Migration and Refugee Act of 1962-- Total Millions $3.8 1.2 .5 26.4 31.9 Millions $32.0 4.9 -5.0 31.9 Prior to fiscal year 1975, "assistance in support of the general economy of recipient countries" (excerpt from sec. 107 of the Foreign Assistance Act) constituted the bulk of the "Selected Countries and Organizations" account. With the shift in AID's program emphasis away from large-scale resource transfers, this is no longer the case-no program loans were made in fiscal year 1975 and none are proposed for fiscal year 1976. Instead, the major focus of this category is on strengthening American and indigenous private and voluntary organizations so that they can play an increasingly important role in the developing world. ASSISTANCE TO PRIVATE AND VOLUNTARY ORGANIZATIONS (PVO's)-$24.9 MILLION U.S. private and voluntary organizations have a long history of working cooperatively with AID and the LDC's in furthering development objectives on a people-to-people basis. In addition to their special skills and dedication, PVO's are a major source of nongovernmental foreign assistance. In 1974 those organizations registered with AID spent almost $1 billion for overseas activities, two-thirds of which was raised from private contributions. AID supports private and voluntary organizations through four interrelated programs: -Reimbursing voluntary agencies for ocean freight costs associated with overseas shipment of donated goods; $7.6 million is now proposed for this purpose in fiscal year 1976, but the requirements are under continual review. -Providing general program and budget support to established U.S. voluntar organizations. For example, in fiscal year 1976 we propose $4.5 million to support the International Executive Service Corps. Since 1965, this organization has provided the services of 3,300 volunteer executives to help commercial enterprises throughout the world improve their managerial and technical skills. We also propose $4.2 million for the Asia Foundation which fosters the work of leading individuals, community groups, and private and public agencies in 15 Asian countries. Its program supports education, development administration, rural development, and population planning projects. In addition, we plan to provide general support to the Volunteer Development Corps, the National Rural Electric Cooperative Association. the Cooperative League of the U.S.A., the International Eye Foundation, and a number of other U.S. private and voluntary organizations engaged in overseas development work. -Development program grants, a new program set up in fiscal year 1975, will help PVO's plan, implement, and evaluate their overseas development programs. The program was created in response to increased PVO interest in shifting from their traditional concentration on relief and humanitarian assistance to place more emphasis on basic development problems. In fiscal year 1975, $5 million is being made available to 24 PVO's; a comparable level is planned for fiscal year 1976. -Operational program grants also set up in fiscal year 1975 as a companion to the development program grant, will provide PVO's with funds to design and implement development programs in the areas of food production, nutrition, rural development, population planning, health, and education. This program will also test whether established and successful PVO programs and techniques can be expanded on a broad scale without sacrificing their people-to-people characteristics. Funds for this purpose are included under the particular development account related to the purpose of the individual activity. A total program level of about $15 million for these latter two activities is planned for fiscal year 1976. SELECTED REGIONAL AND INTERNATIONAL ORGANIZATIONS ($6.8 MILLION) For fiscal year 1976, we propose $6.8 million to support the development efforts of a number of regional and international organizations including: -$1.2 million to the Economic Commission for Africa to provide senior level experts to work with African planning and rural development ministries to prepare proposals for U.N. and other donor funding; -$1.8 million to the African Development Bank to assist that institution in the design and development of capital projects. For the period 1974-76, the African Development Bank plans a lending program of $110 million. However, African countries and regional organizations lack the skilled manpower to design and develop activities to qualify for Bank funding. The grant to the Bank will finance the services of skilled advisers and provide for necessary technical studies. I should point out, Mr. Chairman, that this project is part of an ongoing technical assistance program begun in 1968. It is not for the purpose of either a development loan to supply capital to the Bank or for a capital contribution to the Bank's soft window, the African Development Fund. Thus, we believe section 107 funding is the most practical and appropriate. -$1.0 million for the South East Asia Development Advisory Group to stimulate research and the exchange of ideas between Asian and U.S. scholars, businessmen and Government officials on development issues of major concern to AID programs. -$1.3 million for support to other U.S. Government agencies to cover training services for United Nations fellows in such fields as agriculture, manpower, statistics and social welfare. The fiscal year 1976 program will principally involve the Departments of Agriculture, Interior, Labor, Commerce and Transportation and will provide training for approximately 750 participants. Mr. Chairman, thank you for the opportunity to present this statement on the selected countries and organizations category. My colleagues and I would now be happy to answer whatever questions you may have on these subjects. APPENDIX 4 POLICY STATEMENTS AND CONCEPTUAL FRAMEWORK PAPERS SUPPORTING IMPLEMENTATION OF THE CONGRESSIONAL MANDATE AND STATUS May 29, 1975 1. Congressional Mandate Draft Analysis AIDTO Circular 739, November 6, 1974 (Issued). 2. Congressional Mandate: Aiding the Poor Majority and Mandate Definitions AIDTO Circular A-263, April 30, 1975 (Issued). 3. Employment and Income Distribution Objectives for AID Programs and Policies (PD-48, October 2, 1972); Policy Background Paper on same subject issued concurently (Issued). 4. Guidelines for Evaluation of Capital Projects, January 1975, Chapter on Equity and Benefit Incidence (Issued). 5. Socio-Economic Criteria of Aid Donors AID Circular 584, May 22, 1973 (Issued). 6. Source Book on Developing Country Policies on Popular Participation, June 26, 1972 (Issued). 7. Socio-Economic Changes and Political Participation Huntington-Nelson Report, September 1973 (Issued). 8. Integration of Women into National Economies PD-60, September 16, 1974; also PHA, OIT, and Regional Bureau airgrams on same subject. TAB is exploring research needs (Issued). 9. Private Sector, AIDTO Circular A-855, December 27, 1974 (Issued). 10. Action Steps to Enhance AID's Relationship With Private and Voluntary Organziations including U.S. Cooperatives in LDC Development Activities. Approved by Administrator February 5, 1974 (PD) (Issued). 11. Private and Voluntary Organizations, AIDTO Circular A-346, May 4, 1974 (Issued). 12. Guidelines Governing Funding for Private and Voluntary Organizations in Connection with Development Assistance Under FA Program. July 23, 1974 (Issued). 13. Private and Voluntary Organization Guidelines AIDTO Circular A-590, August 22, 1974 (Issued). 14. Procedural Guidance for PVO's on Operational Program Grants (AIDTO Circular A-25, January 11, 1975) (Issued). 15. Management Improvement and Development Administration (William O. Hall Work Group) AIDTO Circular A-187, March 28, 1975 (Draft report under AID/W review). 16. Revised Project Development, Review and Approval System, Social Soundness Analysis Annex AIDTO Circular A-241, April 23, 1975 (Issued). 17. Library on Employment and Income Distribution AIDTO Circular A-286, May 13, 1975 (Issued). 18. National Policies and Income Distribution Princeton-Brookings Report (In process). 19. Financial Development (Projected). 20. Participation as a Programing Criteria (Projected). 21. Discussing the Mandate with Developing Country Governments (Projected). 22. Appropriately scaled (or Intermediate) Technology (Projected). B. RURAL DEVELOPMENT 23. Rural Development Library (Issued). 24. Rural Development Policy Statement (Fiscal Year 1976, Program Budget Submission Guidance AIDTO Circular A-448, June 22, 1974) (Issued). 25. Conceptual Overview of Rural Development AIDTO Circular A-690, October 10, 1974 (Issued). 26. Small Farmer Credit-Guidelines on Project and Program Planning AIDTO Circular A-418, June 6, 1974 (Issued). 27. Practical Guidelines for Implementation of an Integrated Approach to Rural Development (Issued). AFR AIDTO Circular A-217, April 11, 1975. EA AIDTO Circular A-265, May 1, 1975. 28. Rural Development Policy (Projected). 29. Spatial Planning for Rural Development (Projected). 30. Market Prices Issues in Regional Planning (In process). 31. Base Level Organizations (Projected). 32. Rural Production Sector Programing and Strategy (In process). A. Agriculture (In process). B. Industry (In process). C. Marketing (Projected). 33. Rural Infrastructure and Agricultural Production (In process). 34. Irrigation Associations (Projected). 35. Farmers Association (Projected). 36. Small Producer Economics/Production vs. Equity in Agriculture (In process). 37. Agriculture Sector Assessment Guidelines (In process). 38. Savings Mobilization Policy (Projected). 39. Land Tenure/Land Improvement and Organization (Projected). 40. Risk Avoidance (Projected). 41. Issues related to removal of subsidies and imposition of taxes on labor displacing equipment (Projected). 42. Functions of the Central Government in a Decentralized System (Projected). 43. Psychology of Participation and Learning Theory (Projected). C. HEALTH 44. Planning and Evaluation of Integrated Health Delivery Program AIDTO Circular A-230, March 19, 1974 (Issued). 45. Health Program Evaluation Guidelines Kit AIDTO Circular A-58, January 23, 1975 (Issued). 46. Health Sector Strategy (In process). 47. Health Sector Assessment Guidelines (In process). 48. Low-cost Health Delivery Systems Implementation Guidelines (In process). 49. Ongoing Innovations in Low-cost Delivery Systems (In process). 50. Defining Health Status Benchmarks and Targets (In process). 51. Followup Health Sector Guidelines (Projected for next year). D. NUTRITION 52. AID Nutrition Strategy (AIDTO Circular A-996, September 1973) (Issued). 53. Defining an Adequate Diet (In process). E. EDUCATION 54. Draft Framework for Developing Program Submissions in Human Resources Development AIDTO Circular A-703, October 17, 1974 (Issued). 55. AID Education Program Strategy (AIDTO Circular A-988, September 4. 1973) (Issued). 56. Program Guidance on Implementing AID's Strategy for Education and Human Resources AIDTO Circular A-275, April 2, 1974 (Issued). 57. Defining Practical Education (In process). 58. Final Framework (DAP and Assessment) Paper (In process). 59. Precise Restatement of Agency Education Policy/Strategy (Projected). F. POPULATION 60. Policy Statement (In process). 61. Beyond Family Planning (AIDTO Circular A-1118, November 15, 1973) (Issued). VI. Conclusion Appendix A: Poor Majority Population in AID-assisted Countries. 1. Capital Transfers, Capital Intensity and Capital Projects 2. The Role of AID and "Direct Assistance" to the Poor Majority. 3. Particiption 4. Rural Development.. 5. Collabortive Style Page SUMMARY 1. The poor majority is massive by any measure; it totals over 800 million people by our definition, or around three-fourths of the total population of AIDassisted countries. More than 90 percent of some countries' population is in this group, while in other better off countries the proportion is far lower. 2. As an aid to characterizing the poor majority, we use several rough benchmarks of poverty. Falling short of any one benchmark is enough to place an individual in this vast group. In interpreting these benchmarks the need to consider the spirit of the mandate is stressed as precision will be difficult to achieve for some time. 3. The following benchmarks are described in some detail: (a) Per capita income below $150 per year (1969 prices); (b) Daily diet of less than 2,160 to 2,670 calories (depending on the country); and (c) Several health indicators: life expectancy at birth of below 55 years, infant mortality over 33 per thousand children aged 0-1, birthrates over 25 per thousand population, or access to broadly defined health services for under 40 percent of the population. These indicators are meant to apply to varying proportions of country populations, not to countries as a whole. 4. Development progress for the poor will require time-consuming systemic change. Programs most likely to succeed, and which receive highest priority emphasis under the congressional mandate and AID policy, are those involving the active and effective participation of the poor in all facets of the development process. But participation alone is not sufficient: Seeds, fertilizer, market, roads and other capital inputs; health and training programs and other goods and services; and policies promoting efficient use of all resources are needed if growth is to occur. Limiting population expansion remains critical. Moreover, the benefits of |