U.S. Assistance to Belarus
U.S. Government Assistance FY 1998 Annual Report
Political and Economic Overview
In FY 1998, the Government of Belarus continued along its path toward an authoritarian government and a centrally controlled economy. Power remained heavily concentrated in President Lukashenko's hands, as it has been since the illegal constitutional referendum in November 1996, which also extended President Lukashenko's term in office and resulted in a dissolution of the legitimate parliament. Belarus's largest independent newspaper was shut down by government authorities in November 1997, and numerous other independent media were subjected to various forms of intimidation and restrictions. At least two prominent Belarusian attorneys who handled human rights-related cases were disbarred. Security services continued to use force and administrative sanctions to intimidate and threaten supporters of the opposition.
Ideologically still committed to a planned economy, the Belarusian Government remained hostile to the adoption of any significant economic reforms in FY 1998. Although massive credits to the debt-ridden state sector allowed government officials to claim economic growth, living standards declined for many segments of society as wages were eroded by high inflation. Significant and sustained depreciation in the value of the Belarusian ruble resulted in a critical shortage of foreign currency. According to a poll conducted by the Ministry of Economy in October 1998, almost half of all Belarusian households were experiencing difficulty making ends meet.
Overview of U.S. Government Assistance
U.S. Government assistance to Belarus remained modest in FY 1998, due to Belarus's poor record on economic and democratic reforms. The U.S. Government provided an estimated $17.2 million in assistance to Belarus, consisting of $7.96 million in FREEDOM Support Act funds, over $1.4 million in other U.S. Government funds, and $7.86 million in Defense Department excess and privately donated humanitarian commodities. Approximately 48 percent of this assistance was technical assistance, and 48 percent was humanitarian assistance. USIA university partnerships and USAID hospital partnerships accounted for the remaining four percent. Throughout FY 1998, the U.S. Government continued its policy of "selective engagement" adopted after the above-mentioned November 1996 referendum. Under this policy, no new bilateral assistance is channeled to the Government of Belarus. U.S. assistance priorities remained the following: (1) building respect for the rule of law and democracy, (2) strengthening NGOs and independent media, and (3) encouraging small-scale privatization. Resources were directed to those elements of Belarusian society that, despite the political regime, were trying to introduce democratic and market principles.
Democracy Programs
Democracy Fund Small Grants Program: In FY 1998, our embassy's Democracy Fund, which is administered by USIA and has been awarding grants since January 1997, remained a critical element of the overall U.S. Government strategy to help develop in Belarus a civil society based on the rule of law. Since the program's inception, a total of 64 projects in the areas of rule of law, human rights, and development of independent media have been funded. A total of 49 grants with a total value of approximately $656,000 were awarded in FY 1998 to support youth and women's groups, independent trade unions, print and broadcast media, human rights NGOs and other democratically oriented organizations. Although the grants are limited in size (they may not exceed $24,000, and most fall between $5,000 and $15,000), they have proved to be an effective vehicle for supporting pro-reform segments of Belarusian society, especially at the community level. Despite a difficult overall political environment, the delivery of assistance to grant recipients was achieved without serious problems.
American Bar Association - Central and East European Law Initiative (ABA/CEELI): The USAID-funded ABA/CEELI program has worked to develop local education programs and strengthen professional legal associations in Belarus since August 1992. Highlights of activities implemented in FY 1998 include legal seminars devoted to human rights, conducted in partnership with the Brest Lawyers' Association as part of a "street law" program to educate Belarusian citizens on the rule of law; a workshop on effective legal representation of independent trade unionists; and co-sponsorship of a commercial arbitration workshop with the Belarusian Chamber of Commerce's International Arbitration Court. ABA/CEELI's local counterparts often faced harassment and direct opposition from Belarusian Government authorities. Despite these obstacles, the program was a useful and successful mechanism through which to promote the concepts of legal training and rule of law throughout Belarus.
IREX/Promedia Program: In mid-1997, USAID initiated support for the development of independent media in Belarus through the Promedia program implemented by the International Research and Exchanges Board (IREX). In FY 1998, the IREX/Promedia project continued to provide professional journalistic and management assistance with the goal of increasing independent media's ability to better inform Belarusians so that they more fully participate in economic and political decision-making. In December 1997, IREX/Promedia established a photo service and text archive, along with an Internet website to access the information, which are used regularly by at least eleven local newspapers. As a result of IREX/Promedia training and consulting sessions, several news organizations initiated product design and content improvements. Highlights of FY 1998 activities include IREX/Promedia-organized roundtable discussions with a former Czech dissident journalist.
International Republican Institute (IRI): In FY 1998, the IRI's USAID-funded program in Belarus remained focused on the basic elements of political party building. IRI conducted a seminar on outreach planning for political parties which was attended by representatives of the Belarusian Popular Front and the United Civic and Social Democratic parties. IRI also held seminars for members of the dissolved Thirteenth Supreme Soviet (Belarus's legitimate parliament) and political party youth leaders. While limited in nature, IRI programs in Belarus were an effective means through which to provide training in democratic processes to pro-reform political figures. (see also FY 1999 Programs section below)
Counterpart Alliance for Partnership (CAP) NGO Development Program: USAID began funding CAP's Belarus program in September 1997 as part of the effort to develop an open, civil society. Since the program's inception, CAP has awarded 18 grants to local NGOs and trained over 65 NGO representatives in different aspects of NGO management and project design. FY 1998 program highlights included support for the Belarusian Hospice Women's Educational and Consulting Center—the first such center in the country. CAP plans to support the creation of training coordination points and help increase the number of local NGO trainers in Belarus.
Economic Development Programs
International Finance Corporation (IFC) Small-Scale Privatization Program: USAID has funded the IFC's Small-Scale Privatization Program in Belarus since mid-1993. In FY 1998, IFC continued to provide a full range of consulting, technical and legal services to cities throughout Belarus. Over 630 municipally owned small businesses have been privatized through direct IFC assistance, with proceeds going to community budgets to support schools, public transportation, and health facilities. "Dutch auctions" (asset prices usually decline during the bid process) were introduced by the IFC during FY 1998 in order to speed up the privatization process. Despite the lack of progress in structural economic reforms in Belarus, the privatization of businesses has proven to be successful and has encouraged competitive practices among neighboring state-owned enterprises. Regional government officials and local entrepreneurs have been highly receptive to the IFC program.
Agricultural Cooperative Development International/Volunteers in Overseas Cooperative Assistance (ACDI/VOCA): In FY 1998, USAID-funded programs implemented by ACDI/VOCA in Belarus were focused on agricultural entrepreneurs, rural education and training, agricultural reform and privatization, and environmental improvement in rural areas. ACDI/VOCA'S highly effective small-scale programs provide assistance to private farmers and entrepreneurs in the agricultural production and processing sectors. In FY 1998, ACDI/VOCA continued to provide highly skilled U.S. volunteer consultants to work with Belarusian agriculturists. Through ACDI/VOCA's Farmer-to-Farmer Program, over 102 volunteers have completed 118 projects in Belarus since April 1993. Fifteen voluntary technical assistance programs were completed during FY 1998.
Training and Exchange Programs
U.S. Information Agency (USIA): In FY 1998, USIA-sponsored exchange programs were a key component in the U.S. Government's strategy to assist those Belarusians who are working to introduce democratic and economic reforms. USIA began recruiting in Belarus in 1997 for its Community Connections Program, which provides community-based U.S. internships for entrepreneurs and NGO leaders. A total of 73 people from five cities in Belarus traveled to the United States for short-term professional training during FY 1998. USIA also sent four groups of Belarusians to the United States for professional training and consultations on education, small business development, youth NGOs, information technology and modern libraries. USIA brought seven U.S. specialists from various disciplines to Belarus to give lectures and consult with local counterparts, including one who advised the Minsk Civic Education Center on the creation of a secondary school civics curriculum. USIA also funded the participation of Belarusians in a seminar in Poland on teaching American studies.
Cross-Sectoral Programs
Eurasia Foundation: In FY 1998, the USAID-supported Eurasia Foundation awarded $1 million in grants to support activities in Belarus. Areas of focus included, but were not limited to, support for independent media, NGO development, business development and education. In September 1998, the Foundation substantially increased its capacity in Belarus by establishing a permanent representative office in Minsk. As a private foundation, the Eurasia Foundation has been able to successfully leverage funds from other donors, which will help to fund an independent media project implemented by the Foundation in Belarus. In November 1997, the Foundation, along with the Institute for East-West Studies and the King Badouin Foundation, co-hosted a meeting of donors and prospective funders in Brussels to discuss program opportunities in Belarus. A total of 34 representatives of 23 foundations and official aid agencies participated in the meeting and discussed how to build public awareness of democratic principles, promote private business development, improve economics and business instruction, develop the non-governmental and non-profit sector, and keep independent media alive in Belarus.
Social Sector and Humanitarian Assistance
Hospital Partnerships: In FY 1998, USAID provided $400,000 to fund the American International Health Alliance (AIHA) Hospital Partnership Program in Belarus. AIHA has partnered the Magee Women's and Children's Hospitals Of Pittsburgh and the University of Pittsburgh Schools of Medicine and Nursing with four Minsk-based medical institutions: the Minsk Medical Institute, Children's Hospital No. 4, the Radiation Medicine Institute, and Maternity Hospital No. 2. Since its formation in March 1993, the partnership has focused primarily on pediatrics, medical education reform, gastroenterology, nursing reform, women's health, and poison control. In late April, the partnership celebrated the opening at Maternity Hospital No. 2 of a women's wellness center which offers special education and outreach for adolescents. Minsk Medical Institute administrators worked with their Pittsburgh colleagues to redesign the school's curriculum and teaching methodologies, and Children's Hospital No. 4 embarked on a program to upgrade the skills of its nursing staff. AIHA helps to address a critical need in Belarus for improved health care.
Humanitarian Assistance: In FY 1998, the Coordinator's Office continued to fund the delivery of privately donated humanitarian assistance to Belarus. At a cost of approximately $300,000, the U.S. Government delivered almost $7.9 million in humanitarian assistance to Belarus, most of which was donated by U.S. citizens and private voluntary organizations (PVOs) and directed to victims of the Chornobyl accident. USAID and the Department of State also continued to fund the Counterpart Humanitarian Assistance Program (CHAP), which locates excess Defense Department commodities at U.S. military bases which are closing down and delivers them to hospitals, orphanages and social service-oriented NGOs in Belarus. There were no government-to-government humanitarian assistance programs with Belarus in FY 1998.
Security Programs
With the exception of $61,000 in International Military Education and Training (IMET) funds, the U.S. Government did not provide any security-related assistance to Belarus in FY 1998. In February 1997 and again in 1998, the President of the United States decertified Belarus under the Defense Department's Cooperative Threat Reduction (CTR) Program due to its poor record on human rights, resulting in a suspension of $40 million in unobligated CTR funds. Although project funds already obligated were permitted to continue, some of those also encountered difficulties. The most serious obstacles to implementing CTR programs in Belarus were imposed by the Belarusian Government. Beginning in 1996, the Government of Belarus denied U.S. contractors access to installations so that they could provide agreed-upon assistance for the elimination of SS-25 fixed structure foundations. The Belarusian Government also stopped funding an environmental restoration project in Postavy, as a result of which soil remediation equipment given to the Belarusian Government under the CTR Program has stood idle since July 1997. Previous CTR efforts had helped eliminate and dismantle Belarusian weapons of mass destruction, and provided emergency response equipment and training, and export control assistance.
Preview of FY 1999 Programs
No major program changes are planned for FY 1999. However, one new focus of the U.S. Government's democracy-building programs will be support for election observer training held under the auspices of the OSCE's Advisory and Monitoring Group (AMG) in Minsk prior to local elections scheduled for early 1999. An expanded independent media program that would also assist independent television stations in Belarus is under consideration.