Strategic Goal 8: Economic Prosperity and Security
|STRATEGIC GOAL 8: ECONOMIC PROSPERITY AND SECURITY|
Strengthen world economic growth, development, and stability, while expanding opportunities for
I. Public Benefit
Continued economic prosperity for the United States cannot be assured in the absence of prosperity, freedom, and economic opportunity worldwide. As the war against terrorism has become central for U.S. foreign policy, we have focused on increasing U.S. economic security by supporting front-line states, tightening the noose around terrorist financing, increasing energy security, and improving the security of our transportation and information networks. We promote prosperity through market-expanding agreements, through international cooperation to promote sound financial markets, by fighting bribery and corruption, and through assisting developing countries to govern wisely and create favorable climates for trade and investment. Official development assistance can play an important role in helping countries on the road to economic prosperity and political stability. The Department works on reconstruction in post-conflict or post-disaster situations, serving the vital role of coordinating relevant agencies and donors. Our deep and comprehensive economic engagement with developing countries - through trade, investment, assistance, and debt relief - enhances the prosperity and security of those countries, and therefore our own.
II. Performance Summary
The table below shows the performance rating distribution of the FY 2005 results for the Economic Prosperity and Security strategic goal.
|Significantly Below Target||Below Target||On Target||Above Target||Significantly Above Target||Totals|
|Number of Results||0||1||9||3||0||13|
|Percent of Total||0%||8%||69%||23%||0%||100%|
III. Resources Invested
IV. Performance Analysis
Performance Trends. Much of the Department's performance in promoting economic prosperity depends on the success of its negotiations, whether in multilateral settings, in bilateral discussions with other countries, or on behalf of individual U.S. companies. Particularly noteworthy is the Department's success leading the United Nations to affirm that the promotion of economic freedom through anti-corruption efforts and improved investment climates is central to economic growth. However, in FY 2005, the Department's negotiations achieved mixed results overall. The Doha round of multilateral trade negotiations remained behind schedule due to the breakdown in talks in September 2003; in FY 2005, negotiations accelerated but remained short of an agreement.
Outcome-level Results. The Department remained actively engaged with other countries to press for fewer restrictions on private enterprise and more open markets as necessities for greater prosperity. Debt crisis countries and Millennium Challenge Account-eligible and threshold countries have continued to reform and remove barriers to entrepreneurship and economic freedom.
Results Significantly Above or Below Target. Two results were significantly above target, although below-target results within the same indicators somewhat offset the gains in both cases. The Department successfully negotiated more open-skies agreements, but it did not meet its target for other types of transport liberalization. The Department also increased its advocacy on behalf of U.S. businesses by approximately 81%, although the success rate fell from 31.5% in FY 2004 to 22.5% in FY 2005.
Resources Invested. Much of the Department's activity on behalf of economic freedom and prosperity takes place within the context of international organizations. Overall, U.S. contributions to these organizations remained steady in FY 2005, although the situations vary from organization to organization. U.S. funding for the Asia-Pacific Economic Cooperation forum increased by six percent, while the World Trade Organization received a larger increase of 19.5% (for a projected FY 2005 total of $22.2 million.)
FY 2005 Performance Report Card
The indicators below are representative of the Department's priorities and overall performance for this Strategic Goal. The FY 2005 PAR contains all indicators with detailed performance information.
|Reduce the Number of Days to Start a Business in Millenium Challenge Account (MCA) Eligible and Threshold Countries|
|Target||Lower the median number of days to start a business by 5% to 43 days.|
|Impact||A reduction in the number of days to start a business directly reflects the government's commitment to increase economic prosperity by removing obstacles to economic growth.|
|Number of Companies for whom Advocacy Services were Provided. Number of Commercial Advocacy Successes in Helping U.S. Companies Win Foreign Tenders; Enforce Contract Agreements; Gain Fair Treatment; and/or Enter New Foreign Markets|
|Impact||Advocacy support ensures transparency and fair play so that U.S. companies can compete on a level playing field.|
|Reason for Shortfall||Advocacy success stories is below target because the Department's Economic and Business Bureau (EB) Advocacy Database is not fully operational to provide count of final success stories.|
|Steps to Improve||The Department will incorporate effective "success story" count mechanism in EB Advocacy Database during FY 2006.|
|World Emergency Oil Stocks|
|Target||International Energy Agency and non-International Energy Agency emergency oil stocks are at or above FY 2004 levels.|
|Results||International Energy Agency members held stocks of 114 days of imports, prior to September 2nd emergency release of stocks to counter supply disruptions of Hurricane Katrina.|
|Impact||Healthy oil stock allowed for a robust response to oil supply disruptions caused by Hurricane Katrina, calming markets ensuring continued supplies of oil.|
|The U.S. Agency for International Development is reporting results for this goal.|
Iraq Reconstruction and Development
The Department led an international group of major donors for Iraq's reconstruction, which organized donors meetings in Tokyo in October 2004 and the Dead Sea in July 2005. At these meetings, over 60 countries and international organizations coordinated their reconstruction assistance and agreed to align and accelerate their assistance along Iraqi priorities. By the end of FY 2005, donors other than the United States had disbursed about $3 billion in reconstruction assistance to Iraq. The meetings also set in place a central role for Iraq in coordinating donor assistance. The Department led meetings of U.S. Government and Iraqi Government officials in Washington and Amman that deepened the bilateral dialogue on a broad range of issues that are critical to Iraq's economic restructuring and reintegration into the world economy. The Department's joint effort with the Department of Treasury to secure an historic Paris Club debt-reduction agreement in November 2004 was a vital step in relieving Iraq of its overwhelming debt burden.
Secretary Rice looks toward Iraq's Planning and Development Cooperation Minister Barham Salih at a press conference in Washington, May, 2005. AP/Wide World Photo