Bureau of the Comptroller and Global Financial Services
February 15, 2013

Public Benefit

Photo showing the 12 members of the Wanawake Kwanza (Women First) growers association in Maza village, Morogoro, Tanzania, who have received Feed the Future support through USAID to boost their incomes and improve nutrition in the village.

The 12 members of the Wanawake Kwanza (Women First) growers association in Maza village, Morogoro, Tanzania, have received Feed the Future support through USAID to boost their incomes and improve nutrition in the village. USAID

Economic growth is key to transforming the developing world. It is the only way for poor countries to reduce and eventually do away with extreme poverty. Economic growth is the surest way for countries to generate the resources they need to weather global crises—from unstable markets for finance to energy and food crises—and to address their own illiteracy, poor health and other long-term development challenges. Economic growth in developing countries is also important to the security of the United States. Poor countries are more susceptible to conflict, can harbor terrorist activity, and are often sources of illegal immigration, epidemic disease, and international crimes such as the trafficking of narcotics and persons.

Through complementary diplomatic and development efforts, the Department of State and USAID work to help developing countries achieve rapid, sustained and broad-based economic growth. The State Department is leading the effort to develop and implement economic growth, energy, agricultural, oceans, environmental, and science and technology policies to promote economic prosperity and address global challenges in a transparent rule-based system. At the same time, USAID economic growth programs are working in countries to improve the environment for enterprise growth and competitiveness, strengthen economic policy and governance, create sound, well-governed financial systems, support business enabling environments, microfinance programs and business services for micro and small enterprises, and build trade capacity. Through Feed the Future, the U.S. Government's global hunger and food security initiative, the Department of State and USAID, along with the Department of Agriculture, are helping partner countries develop their agricultural exports to spur economic growth, protect the natural resource base upon which agriculture depends, and invest in nutrition for women and young children. Assisting countries to effectively protect and manage their natural resource base and mitigate the adverse impact of climate change is also fundamental to generating sustainable economic growth.

Summary of Performance and Resources

Pie chart summarizing the FY 2012 resources invested for Strategic Goal 4. Values are as follows: State Operations: $0.435 billion. Foreign Operations: $4.674 billion. Total resources invested: $5.109 billion.The Department and USAID allocated $5.109 billion toward this Strategic Goal in FY 2012, which is 10 percent of the total State-USAID budget for all strategic goals. The performance of illustrative indicators is provided in the following section.

Key Selected Achievements

  • The ability of developing country economies to compete globally is steadily improving. Through technical assistance and training to support host government led macroeconomic and regulatory reforms that encourage private sector investment, fiscal discipline, and more liberal trade and investment systems, 90 percent of USG assisted countries saw their global competitiveness index score rise.
  • Through the President's Global Hunger and Food Security Initiative, Feed the Future, more than seven million farmers in 48 USG assisted countries applied new technologies or management practices, leading to increases in agricultural productivity and household income.
  • In order to bolster USAID's efforts to mitigate the impact of global climate change, the Agency issued a new climate change and development strategy for the period 2012-2016. The strategy requires field missions to consider climate change in their programming, policy dialogues and operations in order to accelerate the transition to low emission development through investments in clean energy and sustainable landscapes, and build resilience of people, places and livelihoods through investments in adaptation.