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Diplomacy in Action

Strategic Goal 4 - Public Benefit and Summary of Performance and Resources


Bureau of Resource Management
Report
February 24, 2012

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Public Benefit

Photo showing cashew processing training in Guinea, a project funded by USAID.

Cashew processing training in Guinea. Funded by USAID, the project aims to assist in the development of a cashew processing industry by introducing improved methods and technologies and creating sustainable commercial links among small processors, commercial distributors and local equipment suppliers. Enterprise Works Worldwide

Economic growth provides citizens and governments with the resources needed to meet needs and aspirations, including improved education, health, peace and security, via an international economic system that is open, free, transparent and fair. The Department and USAID share the goal to strengthen world economic growth and protect the environment, while expanding opportunities for U.S. businesses and working to help countries spark and sustain transformative economic growth. The Department plays a lead role in implementing President Obama's National Export Initiative (NEI) by advocating on behalf of American companies with other governments for fair treatment, transparency, and maximum opportunity in competitive global markets. And under Presidential Policy Directive 6, USAID is working to empower private entrepreneurs, workers, and enterprises to take advantage of expanding opportunities in a global economy. By embracing business transparency efforts, such as patent protection and intellectual property rights, foreign countries become an attractive market for the products and services of U.S. workers and companies.

Summary of Performance and Resources

Pie chart summarizing the FY 2011 resource invested for Strategic Goal 4. Values are: State Operations: $0.751 billion. Foreign Operations: $4.836 billion. Total resources invested: $5.587 billion.
 

The Department and USAID allocated $5.587 billion toward this Strategic Goal in FY 2011, which is 12 percent of the total State-USAID budget for all strategic goals. The Department and USAID met or exceeded targets for 53 percent of performance indicators for Strategic Goal 4. Six percent of indicators were below target, and 3 percent of indicators improved, but did not meet targets. Ratings were not available for 38 percent that are new indicators or data are not yet available.

Closing the Gap

Chart summarizing the gap between the current progress of countries that have graduated from U.S. Government foreign assistance and the top 20 country beneficiaries of U.S. Government foreign assistance in the Economic Growth index. Values are as follows by sector on a 1 to 5 scale: Average Gap: 0.9. Business Environment: 1.3. Regulatory Quality: 1.3. Government Effectiveness: 1.6. Budget Balance: -0.2. Trade Liberalization: 0.5.

Experience demonstrates that liberalized trade regimes, transparent, effective and accountable governments, fair rules for business, and friendly market policies all contribute to greater economic growth. The Department and USAID programs are targeted at assisting countries to make the economic reforms necessary for sustainable growth to occur. As shown at right, except in the areas of trade liberalization and budget balance, the scores of the top 20 beneficiaries of U.S. assistance (blue) in the areas facilitating economic development rank considerably lower than a select group of countries that have graduated from U.S. Government assistance (red)1. The countries are ranked on a scale of one to five, where five represents the performance of the best country in the world in each area. Efforts to close those gaps are yielding results, as noted below.

Key Selected Achievements

  • Led the interagency Enhancing Capacity for Low Emissions Development Strategies (EC-LEDS) program. Twelve countries have committed to analyzing, designing and implementing low emission development strategies; six agreed work plans are in place; and the U.S. signed formal EC-LEDS cooperation agreements with the Governments of Costa Rica and Bangladesh, meeting a key Agency Priority Goal benchmark for FY 2011.
  • USAID's natural resource management (NRM) and conservation portfolio improved the management of more than six million hectares in biologically significant areas in FY2011. This included one large area spanning Bolivia and Peru, where conservation planning, integrated monitoring, and community-based NRM, resulted in a rate of deforestation 400 percent lower than surrounding areas.
  • In partnership with the Department of Commerce and U.S. missions abroad, the Department implemented key portions of the President's NEI by supporting and advocating for U.S. companies doing business abroad and exporting to foreign markets. Through July 2011, U.S. exports were up 15 percent; a pace sufficient to sustain the NEI's goal of doubling exports by 2014 and an increase that will support two million additional jobs in the United States.
  • The Department reached an important milestone by concluding several new "Open Skies" agreements during the fiscal year, expanding these partnerships to over 100 countries around the world. These agreements encourage vigorous price competition by airlines, and preserve our commitments to aviation safety and security.


1 For more information on the Closing the Gap chart above, see Closing the Gap Methodology. (back to text)

 




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