Although calls to eliminate USAID assistance to Egypt are growing louder in the US media and Congress, agency officials emphasise their dedication to funding a variety of long-term projects across the country. Gamal Essam El-Din reports The aftermath of last month's arrest of prominent MP Ayman Nour cast a pall of gloom over Egyptian-American relations. Since the US State Department announced last week that US Secretary of State Condoleezza Rice had cancelled a planned visit to Egypt in protest against Nour's arrest, a dozen American newspapers have been drumming up support to reduce or eliminate altogether the $1.8 billion annual US assistance to Egypt unless there is real economic and political reform. In spite of the sudden cool in relations between Washington and Cairo, USAID officials told Al-Ahram Weekly they are not part of any US media or congressional movement calling for a cut in USAID assistance to Egypt. They also emphasised that they did not receive any new instructions from Washington that USAID assistance to Egypt be eliminated or linked to progress on democratisation and political reform. According to Kenneth C Ellis, USAID/Egypt mission director, "the only fact about USAID in Egypt is that the Congress decided last year that USAID money to Egypt be decreased by five per cent ($40 million) every year until the year 2009." "This means that while USAID/Egypt will have around $575 million at its disposal in 2005, it will have $535 million in 2006 and after 2009, Congress will again be due to decide the future of USAID to Egypt," Ellis said. He indicated that this amount will be used to funding a variety of long-term projects, with an emphasis on the health and education sectors. The USAID in Egypt, however, cannot work in isolation from ongoing political debates in America, especially those related to the Bush administration's initiative on the Middle East. As 2005 represents the midpoint of its 2000/2009 strategic plan for Egypt, last year USAID started re-examining its programme for the country and updating its strategic framework. A report on USAID's strategic plan, which was made available exclusively to the Weekly, said the changing conditions in US foreign policy required that USAID money to Egypt be re-allocated to reflect the priorities established by the Bush administration. According to the 33-page report entitled USAID/ Egypt Strategic Plan Update for Fiscal Years 2000/2009, "the events of 11 September led to more active US involvement in Egypt and the region, including the administration's new Middle East Partnership Initiative (MEPI)." "This sharpening of US foreign policy for the region," the report added, "led to the strategic revision of USAID programme to Egypt in a way that will focus on such vital sectors as education, health as well as the areas of democracy and governance." Elaborating on the subject of democracy and governance, the report indicates that USAID will allocate part of its funding to secure three objectives: "creating an environment more favourable to political reform, promoting a more transparent and accountable government, and reforming the judicial system." It seems, however, that while the USAID has made some progress in the area of the reform of the judicial system, the progress in the other two areas is moving slowly, hindered by public sensitivity to foreign intervention in the system of government. The report shows that due to the above adjustments in its 2000/2009 programme for Egypt, funding for education and democracy and governance sectors will increase. Over the period from 2003 to 2009, funding for education is increased, previously non-existent, was set at $209 million or 21.6 per cent of the total USAID money, while funding for democracy/governance will be boosted from $96 million to $152 million (almost 16 per cent of total funds). USAID director Ellis told the Weekly that within the same context, the USAID also aims to give greater prominence to the health sector. The 2003/2009 funding for this sector is adjusted to grow from originally $145 million to $165 million or 17.1 per cent of the total programme funding. Ellis said that improving health services in poor areas -- primarily in Upper Egypt governorates -- is a key USAID objective. Ellis participated last week in the opening of an integrated health clinic in the village of Garfas with Fayoum Governor Mahmoud Raafat and was also present with Minya Governor Hassan Hemeida to open another clinic in the district of Deir Samalout. The clinics, initiated by the Washington- based Catalyst Organisation, provide assistance to poor villagers in the area of reproductive health. According to Taroub Harb, director of Catalyst Organisation, the model clinics provide training for physicians and clinic staff, as well as public outreach efforts to explain the benefits of family planning to poor villagers in cooperation with religious leaders, both Muslim and Christian. Harb reported that USAID-funded family planning efforts have achieved positive results in Minya. Contraceptive use in the governorate, she said, has increased from 24 per cent in 1995 to 47 per cent in 2004. It also provides services including child healthcare, prenatal and maternal health services. Harb indicated that this health clinics project, known as Tahseen (Improvement), has so far been active in renovating 53 health clinics in the three rural governorates of Beni Sweif, Fayoum and Minya. "Through USAID funding (which is estimated at $92 million)," said Harb, "the Tahseen project will be able by 2007 to extend health services to 206 villages in other governorates in Upper Egypt and also in Cairo and Alexandria." In 2005, education, health and environment sectors are set to receive $135 million. Ellis told the Weekly that the above adjustment in USAID's strategy in favour of health, education and democracy means a sharp drop in funding for infrastructure projects. "This," he said, "does not mean that the days of USAID infrastructure programmes in Egypt are over." According to Ellis, the USAID has invested almost $6 billion since 1975 in physical infrastructure projects. "This tremendous amount has played the biggest role in modernising Egypt's vital infrastructure sectors such as electricity, telecommunications and waste water and drinking water," Ellis said. He also indicated that USAID will continue implementing infrastructure programmes in Egypt until 2006. "USAID, however, decided that funding for these programmes will decrease not only because they are costly but also because sectors such education and health are now a top priority," Ellis said. According to USAID's strategy plan, the remaining level of funding for infrastructure projects until 2006 will stand at a mere $32 million, 3.4 per cent of the total funding. This amount, said Ellis, will primarily focus on funding and continuing the implementation of a series of small-scale infrastructure projects in some Upper Egypt governorates such as Minya, Beni Sweif, Aswan and Fayoum. One of the Upper Egypt governorates topping USAID's infrastructure programmes agenda is Minya. On 14 February, Minya Governor Hemeida and Anthony Vance, USAID's associate director, opened the Zohra Slow Sand Water Filtration Treatment Plan and two waste water treatment facilities in Minya villages. While the plan provides clean drinking water to more than 900,000 rural residents, the waste water facilities benefit approximately four million Minya residents. According to Governor Hemeida, over the last five years USAID has provided Minya with almost $65 million in funding to improve drinking water and waste water facilities. "This amount accounts for almost 75 per cent of water investments in Minya governorate," said Hemeida, adding that the governorate has received financing estimated at LE402 million from other foreign donors. An additional $11 million will also be granted to the governorate to help Minya's water and waste water authority transform itself from a subsidised service provider to an autonomous, profit-making enterprise, said Vance. USAID will provide assistance for institutional development such as training, the installation of billing and collection software systems, and developing a headquarters and six customer service centres. Since 1975, USAID has directed over $3 billion to water and waste water infrastructure projects in Egypt. The USAID strategic report also indicated that other than infrastructure, there is also a cut in funding for the economic growth sector over the period from 2003 to 2009, from an amount originally estimated at $481 million (53.7 per cent) to $382.50 million (39.5 per cent). The report also indicated that an amount of almost $130 million, originally allocated to the labour force sector, was eliminated altogether. This is in addition to the fact that USAID spending on the environment will also be reduced to account for 2.6 per cent of total funding. USAID officials expect that after 2006, no funding will be allocated to labour force development, infrastructure and environment activities in favour of education, health and democratisation. US President Bush's MEPI aims to encourage creating more democratic societies in the Middle East, with education systems based on religious tolerance and openness to the West.
