TESTIMONYOF DR.RAJIVSHAH ADMINISTRATOR, U.S.AGENCYFORINTERNATIONALDEVELOPMENT FY2014BUDGETREQUEST HOUSEAPPROPRIATIONSSUBCOMMITTEEONSTATEANDFOREIGNOPERATIONS WASHINGTON,DC APRIL24,2013 ThankyouChairwomanGranger,RankingMemberLowey,andmembersoftheCommittee.Iampleased tojoinyoutodiscussthePresident'sfiscalyear2014budgetrequestforUSAID. InhisStateoftheUnionaddress,PresidentObamacalleduponournationtojoinwiththeworldin endingextremepovertyinthenexttwodecades.Today,wehavenewtoolsthatenableustoachievea goalthatwassimplyunimaginableinthepast:theeradicationofextremepovertyanditsmost devastatingcorollaries,includingwidespreadhungerandpreventablechildandmaternaldeaths.

. ThePresidentsfiscalyear2014budgetrequestrespondstothiscallandthemostcriticaldevelopment challengesofourtime.Itsupportsimportantglobalpartnerships,includingtheNewAllianceforFood SecurityandNutritionandtheChildSurvivalCalltoAction,byincreasingandfocusinginvestmentsin foodsecurityandmaternalandchildhealth.Itbuildsresilienceinareasbesiegedbyrecurrentcrisisand naturaldisaster,withafocusontheHornofAfricaandSahelregions.Anditadvancesacomprehensive foodaidreformpackagethatwillenableustofeedtwotofourmillionadditionalpeopleeachyear. ThePresidentsrequestenablesUSAIDtostrategicallyadvanceournationalsecurityprioritiesby implementingcriticaleconomicgrowth,democracy,humanrights,andgovernanceprogramsinthe MiddleEastandNorthAfrica,aswellasinsupportoftheAdministrationsAsiaPacificRebalance.Italso focusesactivitiesinAfghanistan,Pakistan,andIraqatanappropriateleveltosustainthegainswehave madeinthosecountriesoverthelastdecade.Anditstrengthenseconomicprosperity,bothathome andabroad. Iwanttohighlighthowtheinvestmentswemakeinforeignassistance,whichrepresentsjustone percentofthefederalbudget,helpourcountryrespondtotheglobalchallengeswefaceandhowwe havemodernizedourAgencytodeliverresultsthatshapeasaferandmoreprosperousfuture. ANEWMODELFORDEVELOPMENT:PARTNERSHIPS,INNOVATION,ANDRESULTS TheFY2014requestforUSAIDmanagedorpartiallymanagedaccountsis$20.4billion,sixpercent belowthetotalenactedfundingforFY2012.Inthistoughbudgetenvironment,USAIDiscommittedto maximizingthevalueofeverydollar.Wehavemadetoughchoicessothatweareworkingwherewewill havegreatestimpact,andshiftingpersonnelandfundingresourcestowardsprogramsthatwillachieve

 themostmeaningfulresults.Since2010,regionalprogramareashavebeenreducedby29%,Feedthe Futureagricultureprogramshavebeenphasedoutof22countries,andUSAIDglobalhealthprogram areashavebeenphasedoutof23countries. ThePresidentsFY2014requestcontinuestobuildongainswehavemadeoverthepastyeartowork smarterandmoreeffectivelythroughasuiteofambitiousreformscalledUSAIDForward.Through USAIDForward,theAgencyhasfosterednewpartnerships,placingagreateremphasisoninnovation, andarelentlessfocusonresults.Thesereformshaveformedthefoundationofanewmodelfor developmentthatcontinuestodefinethewayweworkaroundtheworld. TheFY2014budgetprovidesfundingtomobilizeanewgenerationofinnovatorsandscientists.Through ourDevelopmentInnovationsVentures,weinviteproblemsolverseverywheretocontributeacost effectiveandcuttingedgeideathatcouldscaletoreachmillions. ItprovidesfundingforGrandChallengesforDevelopment,capitalizingonthesuccessofprevious challengestoacceleratereductionsinmaternalandchildmortality,promotechildhoodliteracy,power agriculturethroughcleanenergy,andraisethevoicesofallcitizensthroughtechnology.Wehave receivedmorethan500applicationsperchallenge,withalmost50percentofinnovationscomingfrom developingandemergingeconomies.Forexample,throughAllChildrenReading:AGrandChallengefor Development,nearlythreedozenorganizationshalfofthemlocalarepioneeringarangeofnovel approachestoeducation,fromhelpingchildreninIndialearntoreadwithsamelanguagesubtitlingon moviesandTVtobringingfullystockedereaderstoruralGhana. TherequestacceleratesadvancesofUSAIDsHigherEducationSolutionsNetwork,aconstellationof sevendevelopmentinnovationlabsonuniversitycampusesthatworkwithaglobalnetworkofpartners toprovidesolutionsforkeydevelopmentchallenges,leveragingtensofmillionsofdollarsofuniversity andprivatesectorfinancing. The2014requestalsoallowsustoworkmoreeffectivelywitharangeofpartners,fromfaithbased organizationstoprivatesectorcompanies.Anewfocusonleveragingprivatesectorresourceshas enabledustodramaticallyexpandourDevelopmentCreditAuthorityunlockingarecord$524million inFY2012incommercialcapitaltoempowerentrepreneursaroundtheworld.Lastyearalone,we increasedourcontributionstopublicprivatepartnershipsbyalmost40percent,leveraginganadditional $383million. Thisfundingalsoallowsustorigorouslymeasureandevaluateourworksoweknowwhichofour developmenteffortsareeffectiveandwhichweneedtoscalebackormodify. Sincethelaunchofour evaluationpolicy,186highqualityevaluationshavebeencompletedandareavailableonourwebsiteor throughamobileappthatiseasilydownloaded.Halfoftheseevaluationshaveledtomidcourse correctionsandonethirdhasledtobudgetchanges. Anewemphasisonsupportinglocalsolutionshasenabledustoshift$745millioninfundingtolocal institutions,firms,andorganizationsinthelastyearalonehelpingreplaceaidwithselfsufficiency.

 Whenwepartnerwithdevelopingcountryinstitutions,weusesophisticatedtoolstoassesstheir financialmanagementcapacityandsafeguardU.S.resources. Aspartofournewmodel,wereinsistingourpartnersmakepolicyreformsandfightcorruptioninorder tomeettheconditionsofourassistance.Throughnewmodelsofpartnershipthatdemandmutual accountabilityincludingtheNewAllianceforFoodSecurityandNutritionandtheTokyoMutual AccountabilityFrameworkforAfghanistanwearecreatingincentivesforgovernmentstostrengthen theirowninstitutions. Acrossourwork,wearemovingfromatraditionalapproachoftopdowndevelopmenttoanewmodel thatengagestalentandinnovationeverywheretoachieveextraordinarygoals.Ineducation,acore developmentobjective,weareharnessingthisnewapproachtohelpclosethegapsinaccessand qualityofeducation.Weknowthatglobally171millionpeoplecouldbeliftedoutofpovertyifall studentsinlowincomecountriesgainedbasicliteracy.Ourstrategyforbasiceducationisfocusedon improvingreadingskillsfor100millionchildreninprimarygradesby2015andincreasingequitable accesstoeducationincrisisandconflictenvironmentsfor15millionlearnersby2015. FOODAIDREFORM Atitsfoundation,ournewmodelofdevelopmentsharesthebedrockprinciplesofeffectivenessand efficiencythatserveastheclarioncallforgovernmenttoday. Thereisperhapsnobetterexampleofthisfundamentalimperativethanthefoodaidreformpackage proposedinthisyearsbudgetrequest,whichwouldenableustofeedtwotofourmillionmorehungry men,womenandchildreneveryyearwiththesameresources,whilemaintainingthevaluable contributionofAmericanagriculturetothismission. ThroughP.L.480TitleII,orFoodforPeace,Americasagriculturalbountyandgenerosityhavefedwell overabillionpeopleinmorethan150countriessince1954.Butwhiletheworldhaschanged significantlysinceTitleIIwascreated,ourhallmarkfoodassistanceprogramhasnot.Thecurrent programlimitsourabilitytousetheappropriatetoolsforeachhumanitariansituationtoolsweknow willhelppeoplefasterandatalessercost. Buyingfoodlocallycanspeedthearrivalofaidbyasmanyas14weeksmakingupprecioustimewhen everydaycanmeanthedifferencebetweenlifeanddeath.Itcanalsocostmuchlessasmuchas50 percentlessforcerealsalone.IncomplexenvironmentssuchasSyriaandSomalia,whichare increasinglythekindofcriseswhereweneedtoprovideassistance,thesemoreflexibletoolsare invaluable. Themoreagile,flexible,andmodernapproachlaidoutinthePresidentsbudgetrequestpairsthe continuedpurchaseofthebestofAmericanagriculturewithgreaterflexibilityaroundinterventionssuch aslocalprocurement,cashtransfers,andelectronicvouchers.ThePresidentsproposalmaintainsthe majorityofouremergencyfoodaidfunds55percentin2014forthepurchaseandtransportof Americancommodities.Thatmeansweregoingtokeepworkingwithsoy,wheat,pulse,andrice

 farmersandprocessorsacrossAmericawhohelpfeedhungrychildrenfromBangladeshtotheSahel oftenintheformofspecializedhighnutritionproducts. Atatimeofurgenthumanneedandbudgetconstraints,wecansavemoreliveswithoutaskingformore money. TheproposalalsoreaffirmsourcommitmenttodevelopmentpartnerswhoreceiveTitleIIfunding, enablingthemtoprovidethesametypesofdevelopmentprogramsatalowercost.Theseprograms strengthenourabilitytoreducechronicpoverty,buildresilience,andhelppreventfuturecrises. FEEDTHEFUTURE Endinghungerandcreatingafoodsecureworldarevitalcomponentsofthefighttoendextreme poverty.Launchedin2009byPresidentObama,FeedtheFutureisunlockingagriculturalgrowth, helpingtransformdevelopingeconomiesandendingthecycleoffoodcrisesandemergencyfoodaid. Althoughtheinitiativeisstillinitsearlydays,wearebeginningtoseesignificantresults. InRwanda,wehavereached1.6millionchildrenunderfivewithnutritionprogramsthatreduced anemia,supportedcommunitygardens,andtreatedacutemalnutrition.InBangladesh,wehelpedmore than400,000ricefarmersincreaseyieldsby15percentthroughthemoreefficientuseoffertilizer, whichledtothefirsteverricesurplusinthecountryspooreststate.InFY2012,wehelpedmorethan7 millionfarmersacrosstheworldapplythesekindsofnewtechnologiesandpractices,fourtimesthe numberwereachedthepreviousyear. TheFY2014requestprovides$269millionforthePresidentsG8commitmenttotheNewAlliancefor FoodSecurityandNutrition,whichaimstolift50millionpeopleinsubSaharanAfricaoutofpovertyin thenextdecade.SinceitsinceptionatlastyearsG8Summit,wehavehelpedleveragemorethan $3.75billionincommitmentsfrommorethan70globalandlocalcompanies.InTanzania,Yara Internationalisconstructingafertilizerterminalatthenationslargestport,and,inEthiopia,DuPontis expandingseeddistributiontoreach35,000smallholdermaizefarmersandincreaseproductivityby50 percent. Atthesametime,participatingAfricangovernmentshavecommittedtoseriousmarketoriented reforms.Tanzaniahasremoveditsexportbanonstaplecommodities,Mozambiqueeliminatedpermit requirementsforinterdistricttrade,andEthiopianolongerimposesexportquotasoncommercialfarm outputsandprocessedgoods. GLOBALHEALTH Thankstostrongbipartisansupportweareontracktoprovidelifesavinghealthassistancetomore peoplethaneverbefore.TheFY2014GlobalHealthrequestsupportsourgoalsofcreatinganAIDSfree generation,endingpreventablechildandmaternaldeath,andprotectingcommunitiesfrominfectious diseases.

 Acrossourglobalhealthportfolio,wearealigningourbudgetstotheareasofgreatestneed.Now,90 percentofUSAIDbilateralmaternalandchildhealthfundingisinthe24USAIDprioritycountriesthat accountforthreequartersofmaternalandchilddeaths. TherequestsupportsthecontinuationandscaleupofhighimpactHIV/AIDSprevention,care,and treatmenttoolsinpursuitofanAIDSfreegeneration.Therequestalsoprovides$1.65billionunder PEPFARfortheU.S.contributiontotheGlobalFundtoFightAIDS,Tuberculosis,andMalaria. InJune,USAIDcohostedaCalltoActiontoaccelerateprogressandendpreventablechilddeath.A powerfulexampleofhowournewmodelofdevelopmentcanrallydiversepartnersbehindambitious butachievablegoals,theCalltoActionhasencouragedmorethan170countries,200civilsociety organizations,and220faithbasedorganizationstosignapledgetohelpreducechildmortality.This globaleffortbuildsonan8percentreductionwehaveseenfrom2008to2011inchildmortalityin countrieswheretheU.S.Governmentprovidesassistance. Wewillcontinuetofundcriticaleffortsinvoluntaryfamilyplanning,immunizations,nutrition,malaria, tuberculosis,andneglectedtropicaldiseasescosteffectiveinterventionsthatsavelives,while preventingthespreadofdisease. SUPPORTINGSTRATEGICPRIORITIESANDSTRENGTHENINGNATIONALSECURITY Acrosstheworld,wearestrengtheningdemocracy,humanrights,andgovernance,withaspecial emphasisonmarginalizedpopulations,includingwomenandyouth.Supportfordemocraticand economictransitionsenablestheriseofcapablenewplayerswhocanhelpsolveregionalchallengesand advanceU.S.nationalsecurity. SinceJanuary2011,theStateDepartmentandUSAIDhaveallocatedmorethan$1.8billiontosupport democratictransitionsintheMiddleEastandNorthAfricaandrespondtoemergingcrisisneedsinthe region.ThePresidentsRequestof$580millionfortheMiddleEastandNorthAfricaIncentiveFund providessupporttocitizendemandsforchange,improvesourabilitytorespondadroitlytonew challengesandopportunities,andbeginstoaddresstheimbalancebetweenoursecurityandeconomic assistanceintheregion. Thebudgetrequestsupportsourhumanitarianassistanceworkaroundtheglobeinplaceswherethe needisgreatest.ThisisparticularlytrueinSyria,whereatleast4millionpeopleareinneedof humanitarianassistanceand2millionaredisplaced.Todate,StateandUSAIDhaveprovidednearly $385millioninhumanitarianrelieftotheSyrianpeople. InIraq,AfghanistanandPakistan,USAIDcontinuestoworkcloselywithinteragencypartnersincluding theStateandDefensedepartments,tomovetowardlongtermstability,promoteeconomicgrowth, andsupportdemocraticreforms,includingtherightsofwomen.Despitethechallenges,wehaveseena numberofpositivegains.Forexample,overthepastdecadeinAfghanistan,wehaveincreasedaccessto education,resultingindramaticincreasesinprimaryschoolenrollmentfrom900,000boysin2002to8 millionstudentsin2012,37percentofwhomaregirls.InIraq,USAIDfundedlegalclinicshave

 supportedover1,700legalcasesonbehalfofvulnerableindividuals,includinginternallydisplaced personsandethnicandreligiousminorities. ThePresidentsbudgetrequestsupportstheAdministrationsAsiaPacificRebalancebyincreasing fundingfortheregiontoaddresscriticalgapsincoreprogramstorenewU.S.leadership,deepen economicties,promotedemocraticanduniversalvalues,andstrengthendiplomaticengagement.In addition,weareseizingnewopportunitiesforpartnershipinAsia,includinginBurma,anation undertakingpoliticalandeconomicreform. GLOBALCLIMATECHANGEANDBUILDINGRESILIENCE Asaresultofglobalclimatechange,naturaldisastersarebecomingmorefrequentandmoresevere. Withanewemphasisonhelpingvulnerablecommunitiesbuildresiliencetodisasters,theGlobalClimate ChangePresidentialInitiativeinvestsindevelopingcountriestoacceleratetransitionstoclimate resilient,lowemissioneconomicgrowth,whileincentivizingprivatesectorinvestmenttoscaleimpact andsustainprogress.Forexample,wearepartneringwiththeConsumerGoodsForumwhich representsabout400companiesand$3trillioninmarketvaluetoreducetropicaldeforestationfrom keycommodities,likepalmoilandtimber. DrawingonlessonslearnedduringlastyearsfoodcrisisintheHornofAfricaaswellasdecadesof experiencerespondingtodisastersUSAIDispioneeringafundamentalnewapproachtohelp communitiesstrengthentheirresilienceinthefaceofcrises.InEthiopia,forinstance,wereworking withinternationalfirmslikeSwissReandlocalbusinessestodevelopindexbasedlivestockinsurancea newproductthatusessatellitedatatoprotectpastoralistsfromdroughtrelatedlosses. CONCLUSION Whenpeoplearoundtheglobecannotfeedtheirfamilies,whenyoungadultsfindthemselveswithout educationorasourceofincome,andwhenparentswatchtheirchildrendieofpreventableillnesses,the worldisinherentlylesssecure.TheFY2014budgetrequestwillcontinueourworktocombatthese causesofinstabilityandendextremepoverty. Theseinvestmentsaren'tjustfromtheAmericanpeople;they'refortheAmericanpeople.Bypromoting sustainablegrowthinthedevelopingworld,wespurnewmarketsabroadandenergizeoureconomy hereathome.Bydrivinginnovationsinagriculture,education,andglobalhealth,westrengthenglobal stabilityandadvanceournationalsecurity.Andbydeliveringaidinthewakeofnaturaldisastersand humanitariancrises,weexpressthegenerosityandgoodwillthatuniteusasapeople. Thankyou.