ECONOMIC GOVERNANCE: A solid macroeconomic foundation for broad-based growth consists of sound fiscal and monetary policies, capable institutions, and governments' abilities to use these tools to manage the economy. U.S. assistance works to strengthen these foundations by establishing a stable and predictable macroeconomic environment that encourages the private sector to make productivity-enhancing investments. Countries with open, competitive economies tend to experience more rapid growth without sacrificing goals relating to poverty reduction or income distribution. The U.S. provides technical assistance and training to support the design and implementation of key macroeconomic reforms in money and banking policy, fiscal policy, trade and exchange rate policy, and national income accounting, measurement, and analysis.
Analysis - Tax Administration and Compliance: Improved tax administration and compliance is linked to economic growth. When governments have more internally generated funds, they can invest in infrastructure, public services and social services that promote economic activity and productivity. Improved tax administration is most effective when it includes more complete audit and investigation coverage, modern customs enforcement and increased efficiency in tax submission and collection procedures. In those countries where USAID is working with governments to improve their tax systems, tax collections improved by 72 percent in FY 2012, far exceeding the 16 percent target.
AGRICULTURE: There are more than a billion people suffering from hunger. Agriculture is a key driver to foster economic growth, reduce poverty and global hunger, and improve health. By the World Bank's estimates, agriculture is twice as effective in reducing poverty as investments in other sectors like manufacturing or mining. To become competitive in today's global marketplace, farmers need to integrate into the production chain-from farm to the grocery's shelf. To bring about this integration, U.S. Government activities, including support provided through the President's Feed the Future Initiative, promote the adoption of productivity enhancing technologies, improvement in product and quality control standards, and access to market information and infrastructure.
Analysis - Farm Sales: In addition to working with rural households, farmers, and farm groups, U.S. agricultural assistance focuses on expanding access to markets by reducing trade barriers within and between countries. In FY 2012, USG investments increased the value of incremental farm sales from approximately $900,000 in FY 2010 to nearly $263 million in FY 2012. Activities such as the Staples Value Chain Program (NAFAKA) in Tanzania and the Family Farming Program (FFP) in Tajikistan worked with farmers and agribusinesses to improve sales through credit, technology transfer, and marketing.
ENVIRONMENT: Promote an integrated approach to natural resources management so that land and water can continue to sustain a growing world population. USG assistance helps support local efforts to protect land tenure rights, fight deforestation and plant trees, protect biodiversity, and mitigate and adapt to the effects of climate change.
USAID projects in the Maya Biosphere Reserve in Peten, Guatemala, focus on sustainable forestry management, ecotourism and the reduction of greenhouse gas emissions through reduced deforestation. USAID
Analysis - Natural Resource Management: Worldwide impoverishment of ecosystems is occurring at an alarming rate, threatening development by reducing soil productivity and water, diminishing resilience to climate change, and driving species to extinction. This decline in ecosystems annually contributes about 20 percent of global greenhouse gas emissions. Through implementation of best practice approaches, increased technical or material capacity of resource managers, and a wide range of other context specific interventions, the USG helped put nearly 100 million hectares of biological significance under improved natural resource management in 15 targeted, high-priority countries.