USAID: Testimony of Donald L. Pressley, Bureau for Europe & Eurasia, 4/12/00

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

Testimony of Donald L. Pressley,
Assistant Administrator
Bureau for Europe & Eurasia
Subcommittee on Asia and the Pacific
and
Subcommittee on International Operations and Human Rights of the
Committee on International Relations United States House of Representatives
April 12, 2000

Introduction

Mr. Chairman and members of the Committee. I welcome this opportunity to discuss USAID’s assistance efforts in democracy-building in the Central Asian Republics. Without question, promoting democratic values and practices in the five Republics of Kazakhstan, Kyrgyzstan, Uzbekistan, Tajikistan, and Turkmenistan is one of the more difficult challenges we face in providing U.S. assistance to Europe and Eurasia. Yet, this is an important objective, and I welcome your ideas and suggestions about USAID democracy programs in these countries.

The assistance environment in Central Asia, particularly for democracy programs, is very complex. Clearly, we have been disappointed by the lack of progress in some areas, particularly in the conduct of elections. On the other hand, we are heartened by the tremendous growth in citizen participation through community and nongovernmental organizations.

In explaining the problems and prospects for achieving democracy goals in this subregion, I would like to highlight several points:

The United States has important national interests in Central Asia: Independent states able to prevent conflict and the expansion of global health and environmental threats, as well as ensure fair access to petroleum and mineral resources, are central to U.S. foreign policy in the region.

Central Asia is starting from a weak base: these states are not only undergoing a transformation from the Soviet system, but are "new" nations and lack many of the basic attributes necessary to support democracy and broad economic growth.

Democracy is more than just elections: while free and fair elections are symbolic of democracy, other elements are also important, including civic education and activism, increased availability of information and independent media, and community problem-solving. In fact, these are the building blocks for eventual democratic elections.

Democracy is more than just democracy; economic restructuring and social transition are critical as well: development of economic and social institutions can support the growth of democracy while good governance encourages investment and promotes citizens’ access to the benefits of economic and social transition.

Experience tells us it is worth staying the course: experience in other parts of the region has proven that a solid grass-roots approach produces results over time even when national leaders resist reform.

USAID has an important role to play: we have worked hard to understand the difficult circumstances surrounding political reform in this part of the world and, I believe, we have crafted a sensible approach based on grassroots organization and initiative.

U.S. FOREIGN POLICY INTERESTS

Mr. Chairman, almost exactly two years ago, I had the honor to testify before this Committee regarding the then pending Silk Road Strategy legislation. At that time, we both highlighted the importance of Central Asia to U. S. foreign policy interests.

I said then, and it's just as true today, that the overarching goal of U.S. foreign policy for the five Republics is stable, democratic, market-oriented development to prevent conflict and the expansion of global threats, and to ensure Western access to the region’s substantial oil, gas and mineral resources.

Moreover, we continue to believe that as these countries become more democratic and prosperous, commercial opportunities will increase -- and we expect -- inclinations toward civil strife, and arms and drug trafficking will decrease. As the primary assistance arm of the U.S. Government with a substantial professional presence in the region, USAID plays a key role in fostering the steady development of this subregion. Widespread citizen participation in the economic, political, and social aspects of these societies is fundamental to achieving and maintaining democracy and prosperity.

A DIFFICULT ASSISTANCE ENVIRONMENT

I regret to say that there has been mixed results in achieving the laudable goals of the Silk Road Strategy.

Transition to democracy and open markets in the Asian republics of the former Soviet Union is a complex undertaking. These new nations have historically been isolated and lack any modern national experience. In contrast to many of the other transition countries in Europe and Eurasia, independence did not emerge from a popular movement for change or from a cadre of enlightened reformist politicians. Furthermore, social concerns such as high poverty rates, poor health standards, and declining education levels suggest these countries are facing a broad range of economic and social problems typically found in "developing" rather than "transition" countries.

Against this backdrop, we have all seen that progress in democracy-building has been halting, at best. There is a lack of trust between citizens and government, and there is still general citizen passivity stemming from years of domination. Recent opinion surveys across Central Asia indicate a continuing nostalgia among many for a return to the old communist system, primarily as a result of reduced living standards.

Former communist party officials still head up four of the five governments. With no national democratic traditions, and little popular clamor for reform, the leadership of the five Central Asian Republics tends toward autocratic and authoritarian modes of governance with little citizen participation. While civil society and the nongovernmental sector are growing and information is more widespread, there remains a lack of major national-level policy reforms to guarantee freedom of speech and association as well as transparent and democratic processes.

Despite claims by governments that they are dedicated to the implementation of democratic elections, successive parliamentary and presidential elections in each country have been severely flawed. The absence of true opposition parties and candidates, intimidation of voters, and outright election fraud demonstrate that electoral institutions in the subregion have not contributed to democratic reform in a substantial way. This situation is exacerbated by widespread corruption and abrogation of human rights.

These realities have not been lost on the people of Central Asia. According to a public opinion poll taken last year, a large proportion of those interviewed (78% in Kazakhstan, 52% in Kyrgyzstan, 47% in Tajikistan, and 39% in Uzbekistan) did not believe that their participation in elections at any level could change future policy in their countries. Until the governments of this subregion can demonstrate a real commitment to democratic processes, USAID is shifting its support from election administration and political party development toward civic education and participation, NGO development, and local governance.

STRATEGY FOR PROMOTING DEMOCRACY IN CENTRAL ASIA

Although the prospects for democracy in Central Asia may not appear encouraging to the casual observer, we believe U.S. assistance programs can accomplish significant objectives. USAID has learned important lessons about the timing of assistance in the development of democracy. While free and fair elections, the rule of law, good governance, freedom of the press, and an effective civil society are all essential for a vital democratic process, individual country conditions should determine where and how we focus our activities over time.

Past experiences in Bulgaria and Romania and more recent events in Slovakia and Croatia tell us that grassroots initiatives can create a demand for reform. As you know, we faced several tough years in delivering reform assistance to those countries. During that time, we refocused our programs on the development of NGOs and small entrepreneurs, and where possible, on local government strengthening. This work paid real dividends in the eventual election of reform-minded governments and a more systematic approach to transition.

The 1998 elections in Slovakia are an excellent example. Amidst growing concern that the Slovak elections would be manipulated, eleven leaders of USAID-assisted NGOs led a comprehensive civic campaign to encourage voter participation and ensure those elections were conducted in a free and fair manner. They were highly successful, and, as we know, those elections were pivotal in voting the authoritarian government out of office and putting Slovakia on a firm path to reform.

Democratic practices are more likely to advance in countries where citizens can voluntarily assemble to pursue common interests and advocate for change than in countries where this is not feasible. Establishing such an environment on a sustainable basis requires fundamental changes in attitudes, values, and behavior among ordinary citizens. We are currently going through the final review of a revised strategy for assistance to Central Asia that focuses on promoting a democratic culture in these countries.

This strategy is less centered on technical practice, and more devoted to improving public understanding of democratic practices and to changing attitudes and values. While USAID will continue to seek national policy reform where there are opportunities to do so, democracy-related activities are focused primarily at the grassroots level and stress the fundamentals: citizen understanding of basic rights and responsibilities, good working relationships between individuals and groups, local initiative and problem-solving, and effective advocacy skills.

The most important change in our strategy for Central Asia is an increased emphasis on individuals and communities, and the institutions that nurture and serve them. Instilling democratic skills and practices in how local organizations and governments function is key. We are also putting an increased emphasis on reaching the younger generation through civic education. As our USAID Mission Director in Central Asia recently stated: "this approach is the best antidote to autocracy in Central Asia."

TRANSLATING STRATEGY INTO ACTION

In practical terms, USAID provides training, technical assistance, and grants to a wide range of local NGOs representing specific interests of their constituencies. Attention is given to helping NGOs work more effectively in local communities in order to develop their services and constituency, to help them become more representative, and to enable them to learn to advocate with local governments. Separate NGO programs target different issue areas, including the environment, rule of law, human and women's rights. Other programs have helped to develop a network of independent election observers and are working to facilitate a coalition of NGOs devoted to local government reform. In some instances, USAID supports the development of NGO associations and resource centers beyond the capitals to serve organizations in rural areas generally inaccessible to international donors.

Where possible, USAID combines NGO assistance with local government strengthening to enhance opportunities for democratic and transparent local governance. Judicial and legal reform is encouraged through extensive training for judges and lawyers and the development of associations for these professions. We also think it is important to work on democratic principles and association-building across sectors -- including health, environment, and business. Only as people experience the tangible benefits of change in their daily lives will they be willing to become more active and demand a more responsive and accountable government.

USAID has initiated innovative programs which target women and youth. Two new activities promote the full participation of women in political and civil society and increase awareness of legal rights and the ability to advocate these rights. Other new activities are emphasizing youth and civic education in the schools, including critical thinking, debates and volunteerism. This is vitally important in the Central Asia context where half the population is under 15 years of age. This younger generation represents the future voters and leaders of the subregion.

Another innovative aspect of USAID’s revised strategy in Central Asia is to focus assistance on areas that hold a high potential for conflict and crisis. USAID efforts in the Ferghana valley, one of the most densely populated areas of Central Asia – and home to some of the most traditional communities of the subregion, are an example.

With the deterioration of the former Soviet system, unemployment in the Ferghana Valley has exacerbated long-standing tensions between traditional communities and governments dominated by former communist party patrons. Straddling Kyrgyzstan, Uzbekistan, and Tajikistan, the Ferghana Valley is also a site of potential inter-governmental and ethnic discord. USAID programs are aimed at facilitating community dialogue, promoting small business associations, and developing cross-border activities to bring divided communities together. Civil society activities partner NGOs with traditional "makhallas" (neighborhood committees) on community projects and small business development, including job training and placement. Other efforts are bringing together NGOs from the three different countries of the Ferghana Valley to share their experiences and consider joint projects promoting cross-border cooperation.

DEMOCRACY ASSISTANCE AND HUMAN RIGHTS

Mr. Chairman, regrettably, the human rights records of Central Asian governments have been poor, especially in Turkmenistan and Uzbekistan. Our work with NGOs on human rights enables us to strengthen indigenous groups fighting for increased government accountability. In Turkmenistan and Uzbekistan, local groups are unable to challenge the state, and international human rights groups have been stymied in their efforts to gather information. In these countries, USAID shares information on international human rights norms in NGO civic education classes. In Uzbekistan, USAID also is educating women of all ages and classes in their legal rights.

In Kazakhstan and Kyrgyzstan, where human rights are not as severely violated, USAID has supported local human rights groups in their efforts to make their respective governments accountable to their citizens. In Tajikistan, the problem of human rights is directly related to the civil war, from which the country is still gradually emerging. Most abuses continue to be connected to tensions among the groups involved in the conflict. In this country, USAID promotes community dialogue through a variety of mechanisms and helps NGOs to work for civil peace, reconciliation and conflict resolution.

COMBATING CORRUPTION

Corruption is deeply-rooted in Central Asia's history. It has been an established way of doing business throughout the subregion and remains a major obstacle to the creation of open, transparent society and government. USAID's approach to combating corruption is primarily "bottoms up" and cuts across all sectors in which we provide assistance. Our primary thrust is to introduce the modern concepts of accountability and transparency, and global techniques of financial management and competitive procurement in government agencies, the business community, and citizens organizations. Specific programs in various countries include assistance to:

reduce, streamline and publicize necessary government regulations and licensing procedures;

establish clear and equitable customs and tax codes and administration;

promote modern ethical standards throughout local governments and small businesses;

train journalists and media managers in investigative practices and reporting;

develop indigenous NGOs and information systems to monitor government and advocate change;

build independent judiciaries through intensive training and exchanges for judges and lawyers;

support civil service reform through training and exchanges for local government officials;

insist on and facilitate public hearings, disclosure, and other information sharing with citizens;

monitor and advise on specific government procurements, such as pharmaceuticals.

Within our modest means, USAID's efforts to address corruption in Central Asia are broad and multi-faceted, befitting the depth and pervasiveness of the problem. As with so many other aspects of our program, it is a long-term endeavor.

PUTTING USAID DEMOCRACY ASSISTANCE IN PERSPECTIVE

USAID’s core strategy in democracy-building includes political process, civil society, media and local governance activities. This is a significant and growing share of our portfolio. Yet, much of our democratization effort is embodied in other parts of our portfolio, such as fiscal and market reforms, enterprise development, health programs, energy sector restructuring, and environmental programs. We introduce democratic processes through such means as: support for public hearings on rate and service issues; community involvement in group medical practices; professional and self-regulating associations, including chartered accountants’ organizations and business advocacy groups; environmental awareness and management; and micro-saving and loan groups. Each of these approaches demonstrates and inculcates democratic processes. In promoting the development of small and medium enterprises, we help expand an important element of civil society.

We see USAID’s contributions in the context of U.S. Government and other donors’ initiatives. Clearly, our work is complemented by other U.S. Government programs, including Department of State Public Diplomacy, the Embassy Democracy Commissions, and Peace Corps. The Organization for Security and Cooperation in Europe (OSCE) and the Council of Europe are important partners in promoting reforms in election processes, increasing respect for human rights, and combating corruption. The OSCE is establishing a presence in the subregion. They manage field operations for election monitoring, including the pre-election campaign period and post-election follow-up. We collaborate closely with the OSCE and take their observations and reports into account as we make program decisions. The OSCE and the Council of Europe also play an important role in promoting adherence to generally agreed-upon principles of human rights and the rule of law.

MAKING A DIFFERENCE: USAID ACCOMPLISHMENTS IN DEMOCRACY

While there is clearly much more to do, we are proud of what USAID programs have been able to accomplish. Civil society is growing in magnitude and sophistication in all five countries. Citizens' organizations, non-existent in 1991, now number over 3,000. Over 100 independent TV stations have increased the professional quality and quantity of news reporting. Local governments, particularly in Kazakhstan and Kyrgyzstan, are learning how to be more responsive and accountable to their citizens. All types of groups are organizing, solving problems locally, learning about their rights and developing the skills to take appropriate action. These are the building blocks for change. Let me give you two examples.

-- In preparation for a World Bank loan to improve water distribution, the city of Atyrau, Kazakhstan, is planning to raise water and sewer rates to full cost recovery. USAID technical advisors under the local government project to Kazakhstan used this opportunity to persuade city officials to hold public hearings to inform citizens about the World Bank loan and to seek their support for increased rates. USAID contractor personnel trained city staff in the nature and conduct of public hearings, and prepared the chairperson for the critical task of conducting the hearing openly and democratically.

The hearing - which just took place last month -- was a real success in demonstrating government transparency and citizen participation. Approximately 150 citizens showed up for the meeting. Many of the speakers emotionally commented on the process, noting that this was the first time that the city had openly discussed decisions on major events and sought the public's support and opinions. The floor speakers ran the gamut from pensioners, to members of the elected city council, to members of NGOs, to representatives from the many housing condominiums. The audience was pleased and stimulated by the process and the city officials were delighted with how the meeting unfolded. Immediately afterward, officials requested further USAID advice and assistance on a series of hearings they want to hold on other pending issues.

-- And, another example from Uzbekistan

Last year, a USAID-funded NGO in Chirchik, Uzbekistan, expanded its program of civic and human rights education to 44 schools. With the support of this local NGO, a group of students used the knowledge gained through these new courses to advocate their rights with local government. Using official legal channels learned about in classes, the student group lodged a formal protest against the common practice of forced student labor during annual cotton harvests, a carry-over policy from the Soviet period. The district court ruled in the students' favor, and the mayor was forced to cancel his order to send children to collective farms. While the practice of forced labor during Uzbekistan's cotton harvest has received attention from international human rights organizations, this action by a small student group -- assisted by a local NGO -- was one of the first successful attempts to challenge the practice.

We have scores of individual stories like these. A few are summarized below, by country:

In Kyrgyzstan:

The government of Kyrgyzstan is increasingly accepting civil society participation in political and economic decision-making. The number of NGO-government contacts has increased more than six-fold, from 57 in 1998 to 359 in 1999.

NGO's advocacy skills continue to advance; the USAID-supported Coalition for Democracy and Civil Society served as an active member of the NGO Law Working Group and a number of recommendations from their report on the late 1998 constitutional referendum were incorporated into the Kyrgyz election law.

Parliament passed a crucial amendment to the mass media law that closed a loophole which allowed government regulators to shut down TV and radio broadcasters at will. USAID-funded support helped write the amendment. Now, any suspension of operations longer than 10 days requires a court decision.

Of the 30 women local "kenesh" (council) candidates who participated in a USAID-supported campaign planning seminar, 14 were elected.

In Kazakhstan:

NGO representatives participate in various government-led working groups on issues such as the draft NGO law and media frequency licenses. The impact of these efforts is evident in recent progressive changes to the Tax Code of Kazakhstan, which relieves NGOs of some heavy tax burdens.

NGOs in Kazakhstan are developing a strong network, supported through 30 newsletters and seven associations, and are increasingly involved in advocacy. Over the past year, the increasing number of fervent protests (e.g., several hunger strikes held by workers and women concerning salary payment arrears) throughout the country indicate that people are becoming more vocal about their social and economic status and want to be more involved in the decision-making process.

NGOs are using more innovative ways to reach out to their constituencies and stakeholders. With a USAID grant, the Feminist League of Almaty created a website (www.women.kz) that contains information on women's issues and a list of women's NGO webpages in Kazakhstan.

A USAID-supported journalists’ rights advocacy organization, Edil Soz (True Word), is earning its place among the few media activists in the country by denouncing restrictions on press freedoms and providing guidance to media outlets. Edil Soz has also secured a place on a governmental commission controlling pornography and violence in an effort to work against unwarranted censorship of broadcasting.

USAID-supported efforts to provide commentary and suggested revisions to the new Law on Mass Media (adopted last year) opened a dialogue, albeit constrained, between journalists and the GOK. Media advocacy efforts have increased with the establishment of an active USAID-supported journalists' association and the provision of expanded legal services to non-state media outlets.

Elections continue to be problematic in Kazakhstan. Nevertheless, civil society organizations are taking a more active role as domestic monitors; approximately 1500 USAID-trained NGO representatives monitored the November 1999 parliamentary elections.

In Uzbekistan:

The Farmers’ Center, an NGO from Karakalpakistan, has used its relations with local communities and local government to gather a constituency to lobby for the proper enforcement of local tax laws.

Legal services were recently provided to a TV station in Urgench that sued the government over a frequency license issue. With a courtroom full of supporting viewers, the Urgench station lost the case, but intends to appeal the decision.

A civic education summer camp, stimulating interest in democracy and volunteerism among the youth, was completed with the participation of over one hundred school-age children.

Just a few months into implementation, a women's legal rights initiative has trained over 50 trainers to carry out legal literacy workshops and a core group of representatives from leading women organizations around the country has formed an expert group.

A local NGO worked with neighborhood committees in the city of Bukhoro to establish an artisan training program for unemployed women in the poorest parts of the city.

In Tajikistan:

Through a USAID grant to the UNDP, former combatants are accessing employment opportunities and participating in multi-ethnic peace and reconciliation activities at the community level.

Private television and radio stations are being strengthened through modest equipment donations and management training. Several have introduced programs which promote the peace process, as a result of USAID-supported incentive programming.

Market-oriented commercial legislation is being promulgated and implemented with the support of USAID technical assistance and training of judges, procurators, and attorneys.

In Turkmenistan:

As a result of USAID assistance in community organizing in the northern part of the country, 18 different water user associations have been developed. These groups are taking the initiative and are in dialogue with local governments on the delivery of clean drinking water.

Over 1,450 members from 200 NGOs and initiative groups participated in USAID-sponsored training. The skills acquired have lead to the awarding of 22 grants in FY 1999, totaling $122,000.

As part of a strategy to build an NGO constituency with local and regional authorities, over 18 roundtables were held this past year at regional and district government offices.

TRACKING AND MEASURING PERFORMANCE

USAID has been documenting progress in democratic reform and institutional development through a number of instruments. For instance, our annual NGO Sustainability Index measures progress in the civil society sector throughout the region, including the Central Asian Republics. The index analyzes seven different dimensions of NGO sustainability in each country: legal environment, organizational capacity, financial viability, advocacy, public image, service provision and sectoral infrastructure. Understanding how countries are progressing along these dimensions enables us to tailor our assistance activities to local circumstances.

The attached chart compares progress in NGO sustainability across countries in Eurasia. Kazakhstan, Kyrgyzstan, and Uzbekistan demonstrate the most progress among the Central Asian Republics , and in fact, are on par with or close behind other Eurasian countries.

Some key points:

-- In both Kazakhstan and Kyrgyzstan, elements of the index indicate that with respect to organizational capacity and public image, local NGOs have made good progress relative to the rest of Eurasia. In Kyrgyzstan, new legislation was approved in 1999 that greatly improves the legal environment for NGOs by establishing a legal basis for the creation of non-profit organizations and determining their clear distinction from commercial organizations.

-- In Uzbekistan, a new law on Non-Commercial, Non-Governmental Organizations was passed in 1999 that has improved the legal framework under which NGOs operate, and is paving the way for further reforms, including potential changes to the tax code to allow for tax exemptions for non-governmental organizations.

-- In Tajikistan and Turkmenistan, though NGO organizational capacity is limited and NGOs are highly dependent upon foreign donor support, the first real signs of civil society are beginning to emerge. A number of NGOs are improving their ability to provide services and are beginning to build both clientele and constituencies. In 1999, in Turkmenistan, a coalition of seven NGOs distributed over $1,300,000 in humanitarian assistance to vulnerable groups.

CONCLUSION

Mr. Chairman, even though these examples show that USAID is making inroads into the development of civil society in Central Asia, we do not kid ourselves. This is a tough place to work, as so vividly demonstrated by all the severely flawed elections that have taken place. The poor human rights records of these five Republics underscore the autocratic nature of these governments; corruption levels suggest how little respect there is for the rule of law. Change in Central Asia is a long-term process as these countries grapple with the realities of being new nations while also addressing the basic issues related to poverty and declining health and education standards. At this point in time, we must measure progress in small incremental steps.

Still, this region is important to the United States and it is important to stay engaged. Our experience tells us it is worth the effort. The grassroots approach embodied in the USAID assistance strategy seems to be making a difference in the lives of individuals and communities. Our experience elsewhere teaches us that these elements are the building blocks for broader democratic reform in the future and that democratic change, economic restructuring, and social transition go hand-in-hand.

Thank you for your time and attention. I welcome your comments and questions.

Source: The 1999 NGO Sustainability Index, developed by the U.S. Agency for International Development, Bureau for Europe and Eurasia, Office of Democracy and Governance.

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