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This is an archived USAID document retained on this web site as a matter of public record.
Remarks by J. Brady Anderson,
GTN Luncheon
USAID Administrator
Chicago, Illinois
October 3, 2000
Thank you Gregg -- and thank you also to the folks at Sargent and Lundy for hosting this lunch.
Let me also thank the Mary Joyce and the U.S. Export Assistance Center as well as Joe Hannon and the Illinois Trade Office, both of whom I know have been working with USAID a long time.
It's a pleasure to be here today in Chicago.
USAID is perhaps best known for its work in humanitarian assistance and primary health. I am very proud of the pioneering work we have done to stem the spread of AIDS in Africa, to combat polio, malaria and TB, to get children immunized, to afford pregnant women and babies the health care they desperately need.
I'm also proud of USAID's response to natural disasters like Hurricane Mitch in Central America and last year's earthquake in Turkey. I'm especially pleased we were able to avert famine in Ethiopia, saving the lives of hundreds of thousands.
Just as important is the work we do around the world to help build the rule of law, promote the development of an independent media, combat poverty and improve the business climate. It is this work that affects American businesses the most.
We seek to develop strong, stable economic institutions in developing countries -- like independent central banks or securities exchange commissions. These institutions, in turn, encourage trade and investment -- creating new opportunities and markets for American firms.
By focusing on economic growth -- in partnership with organizations like the U.S. Export Assistance Center, the State Trade Office and NGOs like the International Executive Service Corps (IESC) we have helped countries graduate from being recipients of foreign aid to becoming our trading partners.
For example U.S. exports to Poland have been expanding an average of 11 percent annually since our aid program began in 1990. The demand for U.S. exports in the countries of Central Europe -- countries like Slovenia and Hungary -- have also increased by almost fivefold. Each of these countries "graduated" from USAID assistance.
In Latin America, American foreign aid from 1948 to 1995 was approximately $35 billion -- nearly 50 years. However in 1995 alone, our exports to Latin America totaled over $75 billion -- that's more than twice our investment recovered in one year.
Globalization has presented American businesses with a tremendous opportunity: today, over 40 percent of American exports go to developing countries, where 80 percent of the world population lives.
As we move into the new century, one of the challenges facing American business will be -- how can we tap into the emerging markets the new economy has created?
During the Clinton-Gore Administration, nearly 300 new trade agreements have been concluded. This export expansion has accounted for more than one-quarter of U.S. economic growth between 1992 and 1998 and has helped create jobs that, on average, pay 15 percent more than non-export related jobs.
In the last ten years the number of small firms that export products has tripled, rising from roughly 69,000 in 1987 to 209,000 in 1997.
Last year alone, Illinois exports brought in over $33.1 billion, which in turn supported nearly 600,000 jobs in this state.
USAID's Global Technology Network, in which many of you participate, focuses on the demand for U.S. goods and technology by linking, via the Internet, small- and medium-sized overseas firms with U.S businesses. USAID, through GTN, uses our detailed knowledge of developing countries and their markets -- our understanding of local needs, conditions, and financing -- to help American firms do business abroad.
We reach the business community here in America by working with other federal agencies, state trade offices, and through the volunteer network of the International Executive Service Corps.
In fact Illinois, became our newest state trade partner last May, when Governor Ryan and I signed an agreement in conjunction with the State's opening of a trade office in South Africa.
GTN works.
For example, the government of Taiwan recently proposed to implement new emissions standards. The Taiwan Cement Corporation was directly affected by these proposed regulations, and they wanted to comply with them as soon as possible.
By using GTN, Taiwan Cement was able to purchase $920,000 worth of advanced technology from Fuel Tech, located in Batavia, Illinois. (I understand Linda Lynn is here today from Fuel Tech.)
To use another example, Great Lakes Environmental, of Addison, Illinois, recently signed an agent/distributor agreement with World-Chem Marketing of Quezon City in the Philippines, which included an initial sale of $65,000 worth of water treatment and analysis technology.
In fact, GTN has already helped American firms generate over $300 million in exports.
But USAID doesn't stop with GTN: we also use partnerships like the US-Asia Environmental Partnership and the Eurasian-American Partnership for Environmentally Sustainable Economies, both of which harness the expertise and technological know-how of American firms to help fight environmental degradation in countries such as Russia and India.
There are lots of success stories, and I am confident we can do more. To date there are over 6,500 American firms registered in the GTN. I want to see even more American firms participating.
As you can see, our investment in foreign assistance is really an investment in America. Countries, which are more developed make, better trading partners. And U.S. firms need overseas markets to remain competitive in the global marketplace. It is that simple.
In the coming weeks, Congress will vote on the Foreign Operations Appropriations bill, which includes funding for USAID. Unlike you, many Americans are not aware of the benefits of spending even a very small share of our resources abroad. As a result, funding for foreign assistance (one-half of one percent of the federal budget) is in jeopardy.
I believe this is dangerous. Threats to American security no longer emanate from one place, American strength comes from global engagement, not by turning our backs on the threats that loom around us.
It is in our own interest to help economies grow overseas and address challenges before they become conflicts.
If a country's leaders are willing to fight corruption and make the hard decisions needed in order to reform their political systems by building democratic institutions and create free market economies, then I think we should help them.
In so doing we can help create a safer and more prosperous world.
As President Clinton has said: "These have been the guiding principles of American foreign policy for generations. They have served the American people well, and greatly helped to advance the cause of peace and freedom around the world."
Thank you again for having me here today.
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 |
