Promoting Economic Growth
In Indonesia, USAID targets micro and small borrowers through the Danamon Simpan Pinjam (small loan) program. Basri (who goes by just one name) has run his auto-garage store in Banda Aceh for 12 years. He has obtained three loans under the program to increase his capital and grow his business. With the loans, he is able to open a restaurant and employ 12 more people. (Photo: Danumurthi Mahendra/USAID)
ASIA BUREAU ECONOMIC GROWTH PROGRAMS
Bangladesh, Cambodia, India, Indonesia, Kazakhstan, Kyrgyzstan, Mongolia, Nepal, Philippines, Sri Lanka, Tajikistan, Timor-Leste, Turkmenistan, Uzbekistan, and Vietnam
CONTACTS
Danielle Dukowicz
Economist (South/Central Asia)
Tel: (202) 712-1782
Email: ddukowicz@usaid.gov
Dany Khy
Economist (East Asia)
Tel: (202) 712-0733
Email: dkhy@usaid.gov Overview
In Asia, the global economic crisis depressed domestic production and international trade. Some countries weathered the recession well and have largely recovered. Other economies have struggled, weighed down by poor government policies and low rates of international trade and investment. Poverty, unemployment, and underemployment remain serious challenges in the region, and USAID implements economic growth programs in Asia to help overcome these problems. A key component of USAID's economic growth programs is working with Asian governments to institute policy reforms that promote inclusive economic growth.
Programs
Building Strong Economic Policies and Institutions
Weak governmental institutions and poor policies hamper trade and growth in the region. USAID has been working to support Vietnam’s efforts to revise or develop nearly100 laws and regulations needed to transform Vietnam into a private-sector export-oriented economy capable of sustained rapid growth. The reforms also have allowed Vietnam to successfully meet the requirements of the U.S.-Vietnam bilateral trade agreement and to join the World Trade Organization. Between 2000 and 2010, Vietnam’s exports to the United States expanded 17 fold, and its imports from the United States increased 10 fold. Similarly, foreign investment into Vietnam expanded 10 fold over the same period.
Investing in Agriculture
In Sri Lanka, USAID supports public-private partnerships that link agribusiness in prosperous western Sri Lanka with farmers in the depressed, conflict-affected regions in eastern Sri Lanka. USAID provides agricultural training to farmers and encourages agribusinesses to market the farmers' produce in western Sri Lanka or to international markets. Over 4,000 farmers have seen their agricultural output and incomes increase as a result of training and marketing provided by linked agribusinesses.
Increasing Access to Credit
Access to credit for small and micro enterprises is very limited in Asia, making it difficult to start and expand small businesses. In the Philippines, USAID is supporting the expansion of 500 bank branches to increase the number of new micro borrowers by more than 375,000, and to increase the amount of loans disbursed by more than $500 million. USAID is also focusing on providing technical assistance and support to participating banks.
Strengthening Property Rights
Secure property rights are essential for economic growth. In Timor-Leste, USAID helped to create the National Property Cadastre, which opened the way for systematic collection of land claims. More than 5,000 private land claims have been recorded.
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