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USAID: From The American People

USAID's 50th Anniversary

This is an archived USAID document retained on this web site as a matter of public record.

Administrator J. Brian Atwood
Town Hall Meeting
Bucharest, Romania, October 28, 1997
U.S. Agency for International Development

It is a pleasure to be back in Bucharest once again. It has not been that long since my last visit, but it is remarkable how much change a short time can bring. During my last visit I had the opportunity to meet with Emil Constantinescu who was a professor at that time. I remember thinking, and hoping, that Professor Constantinescu might be able to play a major role in Romania's future. And while I am a strong supporter of education in all of its facets, I think we are all fortunate that President Constantinescu decided to lay aside the academic life to become engaged in the democratic struggle.

When people speak of Romania, they are often quick to talk of the Revolution and its impact. I don't think anyone would argue that few nations have undergone a more dramatic transformation than Romania -- moving from the bleakness of tyranny to the opportunity of democracy in less than a decade. But there is another revolution that still looms large in Romania's history. It was during the revolution of 1848 that the people of Romania first spoke for unity and independence. The ideals expressed then "Dreptate, Fratie" -- Justice, Brotherhood -- shaped the heart of this nation. Though defeated in 1848, these notions would not go quietly into the night. It was these convictions that have guided Romania through a turbulent history and helped preserve a proud culture and its traditions against both foreign occupations and the autocracy of Ceausescu.

Last November 17th marked another important date in Romania's history. The elections that brought the new government to power -- a year since Professor Constantinescu became President Constantinescu -- helped set Romania on a course to realizing its high ideals. The government deserves praise for putting forth such a serious and committed reform effort. Presenting such a comprehensive plan for economic, budget, social, and political reform took real political courage, as did the Prime Minister's "shock therapy" -- drastic stabilization and privatization measures. But I also believe that there is usually a reward for taking such bold and decisive steps.

Romania has shown the world that it can make difficult decisions and that it can best put its own house in order. Sweeping reform was in the best interests of Romania, but it could not be achieved without some high short term social and economic costs. By giving people a real stake in making major economic and social decisions, Romania has worked hard to make democracy irreversible.

As the Administrator of the United States Agency for International Development (USAID), I am proud that the United States has been able to assist Romania's remarkable transformation. We view Romania as a valuable partner in the region, whose prospects will only continue to grow.

USAID has been involved in the effort to build a democratic Romania from the earliest days of the post-Ceausecu era. Between 1990 and the present, USAID has committed $215 million to programs in Romania in an effort to support democracy, encourage a free market and help Romanians improve their quality of life. I am pleased that the United States government has been able to play a role, although the people of Romania deserve the credit for this nation's many achievements since 1990. There are many to salute for these efforts: non-governmental organizations, some of which are with us today; political parties who have expressed their opposing ideas in a peaceful fashion; every person who has worked to improve their community and a dynamic and growing group of business people. Certainly there is still much to be done on the reform front, and that is what USAID's programs in Romania are all about.

Our program in Romania is an evolving one. We hope to build on what has worked, while addressing needs that remain. Last year in Washington, for example, I had the good fortune to participate in an event celebrating the kick-off of the Romanian over-the-counter stock exchange, RASDAQ. At that time, I expressed my hope that the RASDAQ might be able to attract increasing levels of investment to Romania and help spur economic growth in this country. When the RASDAQ opened, it listed a modest six firms and four brokers. Today, more than 3,700 companies are listed and traded on the RASDAQ. On an average trading day, 3-4 million shares are traded in more than 3,000 transactions, with total trades generally valued at more than US$ 1.5 million. These trades are executed by more than 150 broker firms. I am a perennially optimistic person, but I don't think even I would have predicted such a banner first year for the RASDAQ.

Building on the success of ideas such as the RASDAQ we have also developed new initiatives to help accelerate the reform process. For example, we have responded to a request by the governor of the National Bank of Romania to help strengthen banking supervision. We are redesigning our child welfare and reproductive health activities to make them more effective. We are also providing technical assistance in drafting legislation and managing the process of decentralization.

We are also undertaking capacity building activities with local governments, in order for these entities to be able to manage their budgetary processes, raise revenues, and meet other responsibilities after decentralization.

One initiative I am particularly enthusiastic about is our two-pronged program to help the Romanian Parliament and executive offices develop their administrative, procedural and technical capacity. The assistance is divided into short and longer term activities.

Under the short term program, we will provide immediate support to both the Parliament and executive offices in areas such as economic reform, decentralization, public administration reform and anti-corruption efforts. Our longer term initiatives will focus on information gathering, policy analysis, review of legislation, the budgetary process and constituency outreach. With USAID funding, study tours in the United States are being provided to key government officials, exposing them to effective systems and practices as a means to expedite the reform process.

I worked in the United States Senate back in the 1970's and I learned that you cannot create effective laws or policies without having the information, the analysis, and the data to support your efforts. The U.S. Congress developed its own information systems in part because, without them, the executive branch -- with every type of information and analysis at its disposal -- would dominate. In Romania, each branch of government needs these systems not just to maintain its authority but to help inform public debate on the issues.

As all of you know, one of the most positive changes on the Romanian scene is the highly favorable environment which now exists for non-government organizations to participate in democratization and development initiatives in Romania.

The number of local NGOs has exploded: some 13,000 NGOs are now registered. The newer NGOs tend to focus on pressing societal issues such as women's rights, grassroots development, small business incubation and the environment. Many are working at local levels to fill the development gap created by Romania's growing needs and the state's limited ability to meet these needs. Working through DemNet, USAID's democracy network and through its democracy, environment, energy, health and economic restructuring portfolios, USAID's Romania mission is helping to strengthen NGO activities.

Currently there is an unprecedented window of opportunity to increase civil society participation in Romania by strengthening NGOs. NGOs can play a key role as intermediaries in development partnerships involving the government and civil society. Most Romanian NGOs need to further develop their institutional capacities as well as their abilities to represent grassroots interests. As you know, USAID will not remain in Romania much beyond the turn of the century. As we leave we want to be able to hand off our best activities and projects to a vital NGO sector. I am optimistic that we will be able to do so.

In closing, let me again offer both congratulations for what has been achieved and support for tackling the tasks that still lay ahead. Romanians have always believed that a brighter future could be at hand. It is this spirit that saw Romania triumph over communism, autocracy and a cult of personality. Romania has done more than just change its political system -- it has helped change the face of the world.

Political and economic decisions are now made transparently, not behind closed doors. Decentralization is the order of the day. This includes the devolution of power from government to civil society; from central government to local government; and within the central government -- from the executive branch to the legislative and judicial branches, and within the executive from the president and the prime minister to the line ministries. Your election one year ago demonstrates, yet again, that the only successful revolutions are democratic revolutions.

Let the world's remaining dictators look to Romania and know their days are numbered. Let my fellow Americans look to Romania and appreciate what a tremendous struggle you have waged. And finally, let Romanians look to the challenges of their future with the assurance born of all you have already achieved.

Thank you.

This is an archived USAID document retained on this web site as a matter of public record.

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Last Updated on: July 18, 2001