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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.

Remarks of Ambassador Harriet Babbitt, USAID Deputy Administrator

at the OSDBU/SBA Small and Disadvantaged Business Seminar
March 18, 1999

Good afternoon. I want to welcome Terri Dickerson, Associate Administrator for Small Disadvantaged Business Certification of the U.S. Small Business Administration, to the U.S. Agency for International Development. I had a delightful lunch a couple of weeks ago with SBA Deputy Administrator Fred Hochberg, at which we discussed issues you will deal with at this seminar.

I am glad to have this opportunity to express the commitment of USAID and this Administration to the inclusion of all Americans in implementing our development assistance activities throughout the world.

The concept of equal opportunity for all was one of our nation’s founding principles, but that principle has only begun to be fully realized in recent decades. For that reason, we must make an extra effort to extend the opportunity for full participation to those who were long left out.

The diversity of our people is one of our nation’s great strengths. We all benefit from drawing on the full range of unique talents, skills, and experiences our people have to offer.

USAID has long been in the forefront of addressing the inclusion of these small businesses, historically black colleges and universities and minority institutions in USAID-financed sustainable development activities.

Our agency sought to expand the diversity and inclusiveness of our partners and suppliers even before the passage of legislation requiring us to do so.

For more than two decades, USAID has been increasing the diversity within the ranks of our American development partners, especially small business, small disadvantaged business -- our focus today -- and women-owned small businesses. Our efforts have been most successful with women-owned businesses.

We have also worked closely with historically black colleges and universities (HBCUs) and other minority institutions to take advantage of their valuable knowledge and experience to enhance our development programs. We are committed to continuing to expand these activities. Several laws lay the foundation for USAID’s response to the need for diversity and inclusion: Public Law 95-507, enacted in October 1978, established an Office of Small and Disadvantaged Business Utilization in every Federal agency that has substantive procurement responsibilities. Prior to its passage, USAID had recognized the need and developed a prototype for involving more U. S. minority-owned businesses in its programs. Section 133 of the International Development and Food Act of 1977 formally established the U. S. Congress' intention to involve more U. S. minority-owned businesses in USAID's foreign economic assistance programs.

Section 123 of Public Law 95-53, the International Development Cooperation Act of 1979, established a Minority Resource Center in USAID. The law specifies that the center is " . . . responsible for increasing the participation of economically and socially disadvantaged business enterprises in contract, procurement, grant, and research and development activities funded by the agency …." Section 602 of the Foreign Assistance Act of 1961, as amended, established an Office of Small Business within USAID. That provision mandates that: ". . . Insofar as practicable and to the maximum extent consistent with the accomplishment of the purposes of this Act, the President shall assist American small business to participate equitably in the furnishing of commodities . . (and) services . . . financed with funds made available under this Act. . ." In FY 1996, Congress failed to include the Disadvantaged Enterprise Program (DEP) -- commonly called the Gray Amendment. Our administrator, Brian Atwood, sent out agency-wide notices that clearly articulated agency policy to guide USAID personnel once the amendment was no longer in effect. He defined doing business with small and disadvantaged businesses as a high priority, a "moral duty" and an integral part of the Agency’s development efforts: "Small businesses are vital to the economic health of the United States and the development work of USAID. USAID has a legal and moral duty to utilize small businesses and disadvantaged businesses in development assistance activities funded through the U. S. foreign assistance program. Although we at USAID do not have the legal authority; we still have the ‘moral duty.’ He said it was crucial that the spirit of the Gray Amendment continue to be "an integral part of USAID’s development efforts," consistent with the law. He added, "(T)he responsibility for assuring the continued participation of these businesses is an agency-wide responsibility."

As Administrator Atwood indicated then, we must be sure that all our constituencies – but especially small and disadvantaged businesses – know when activities are up for bids. We help these types of businesses overseas – we should be better at doing it than anyone else in the United States.

USAID’s Office of Small and Disadvantaged Business Utilization has continued to raise awareness about the Small Disadvantaged Business Program within the agency. It has met with agency officials to establish small business program goals and to focus attention on increasing participation of U.S. small businesses in our sustainable development activities.

The Administrator and I both feel it is important that each bureau, office and mission continue to maximize the opportunities for U.S. small and disadvantaged enterprises in our procurement and assistance activities. You are the key to making this happen.

We are here today to encourage and facilitate implementation of the President’s "mend don’t end" affirmative action statement. The program for this implementation will be presented this afternoon. I commend the Office of Small and Disadvantaged Business Utilization for arranging this seminar, Terri Dickerson for coming to share her expertise with us, and all of you for your participation in this important effort.

Diversity and inclusion are fundamental principles of USAID’s work. This seminar today is part of a concerted effort to bolster the increased inclusion of small business and disadvantaged enterprises in USAID-financed sustainable development activities.

I wish you well in your deliberations today, and in your efforts to keep USAID a leader in diversity and inclusion throughout all of our activities.

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 12, 2001