October 2009

From the American People…

Total U.S. Assistance to Serbia from 2001-2009: $716 Million (USAID: $545 million)

Mission Statement: USAID programs seek to support Serbia (and Montenegro) in their goals of being democratic, prosperous, and moving towards Euro-Atlantic integration.

The Strategy: Adopts an innovative approach that

integrates key democracy and economic growth components

Promotes fundamental changes in governance, institutions, human capacity and economic structures;

Based on close cooperation between USAID and national and local governments, civil society organizations, associations and private companies

Activities coordinated with partners & other donors to avoid overlap and ensure maximum impact.

Total U.S. Assistance 2009: Total U.S. Assistance 2009: $46.5m (USAID $37.9m) $46.5m (USAID $37.9m)

Programs:Programs:

Democracy & Governance Democracy & Governance Civil Society Advocacy InitiativeCivil Society Advocacy Initiative Political ProcessesPolitical Processes Media Assistance ProgramMedia Assistance Program Separation of Powers ProgramSeparation of Powers Program

Economic Growth Economic Growth Agribusiness ProjectAgribusiness Project Competitiveness ProjectCompetitiveness Project Municipal Economic Growth Activity Municipal Economic Growth Activity Bankruptcy and Enforcement Strengthening Bankruptcy and Enforcement Strengthening Serbia Economic Growth Activity Serbia Economic Growth Activity Contingency Planning and Economic Contingency Planning and Economic

Security ProgramSecurity Program

Cross Cutting InitiativesCross Cutting Initiatives

Democracy and GovernanceDemocracy and Governance

Areas of intervention Areas of intervention Supporting civil society as a true voice of the people Supporting civil society as a true voice of the people in advocating for important issues in advocating for important issues Helping independent media outlets and media Helping independent media outlets and media organizations become more self-sufficient and organizations become more self-sufficient and professionalprofessionalIncreased dialogue between citizens and their Increased dialogue between citizens and their elected representativeselected representatives

Key results:Key results:Support to over 160 civil society organizations for Support to over 160 civil society organizations for important initiatives in Corporate Social important initiatives in Corporate Social Responsibility, Freedom of Information, and Responsibility, Freedom of Information, and Environmental Awareness Environmental Awareness More independent,More independent, professional, and financially professional, and financially viable media outlets and media associations. The viable media outlets and media associations. The regulatory environment now better supports the regulatory environment now better supports the development of e-media. Over 2,000 media development of e-media. Over 2,000 media professionals received training through USAID professionals received training through USAID programs.programs.

63%

13%

9%

5%

3%

3%

2%

2%

Creating jobs

Reducing corruption

Integration into the European Union

Visa free travel in Europe for its citizens

Improving Serbia’s reputation in the region and the world

Giving citizens a greater say in decision making bynational and local governments

Other

DK-REF

Which of these do you think is the most important for the future of Serbia? Source: Strategic Marketing Survey, September 2009

31%

27%

15%

11%

7%

3%

2%

2%

0%

0%

Helping existing businesses

Helping socially vulnerable citizens

Agriculture development

Infrastructure development in industrialzones

Education

Utility services

Tourism development

Cultural development

Promotion and marketing activities

Other

What do you think is the priority in your municipality / city?

Source: Strategic Marketing Survey, September 2009

2009/2010 World Economic Forum’s, Global Competitiveness Index

5864

72 76

93 96

0

20

40

60

80

100

120

Hungary Romania Croatia Bulgaria Serbia Albania

Wo

rld

Ran

k

2009 World Rank

Global Competitiveness Report 2009-2019: SerbiaGlobal Competitiveness Report 2009-2019: Serbia(Composite ranking of 93 of 133 countries)(Composite ranking of 93 of 133 countries)

(Note that Serbia is a WEF “Stage 2” country, “efficiency-driven,” after which it will transition to a (Note that Serbia is a WEF “Stage 2” country, “efficiency-driven,” after which it will transition to a “Stage 3” country, “innovation-driven”)“Stage 3” country, “innovation-driven”)

Disadvantages:Disadvantages: Public Institutions: Government Inefficiency (118)Public Institutions: Government Inefficiency (118)

Burden of Government Regulation (129)Burden of Government Regulation (129) Efficiency of Legal System in Settling Disputes (124)Efficiency of Legal System in Settling Disputes (124)

Private Institutions: Accountability (123)Private Institutions: Accountability (123) Competition: Domestic Competition (118)Competition: Domestic Competition (118) Technological Readiness: Firm-level Technology Absorption (125)Technological Readiness: Firm-level Technology Absorption (125) Domestic Market Size: Exports as Percentage of GDP (116)Domestic Market Size: Exports as Percentage of GDP (116)

Advantages:Advantages: Health: Infant Mortality (46)Health: Infant Mortality (46) Quality of Education: Quality of Math and Science Education (43)Quality of Education: Quality of Math and Science Education (43) Competition: Total Tax Rate (37)Competition: Total Tax Rate (37) Specific Infrastructure: Telephone Lines (38)Specific Infrastructure: Telephone Lines (38)

Areas of Intervention:Areas of Intervention:A legal and policy environment that promotes economic A legal and policy environment that promotes economic growthgrowth

The capacity of key institutions to implement and enforce The capacity of key institutions to implement and enforce economic reformseconomic reforms

The capability of local authorities to stimulate local The capability of local authorities to stimulate local economic developmenteconomic development

Helping businesses identify and successfully enter new Helping businesses identify and successfully enter new marketsmarkets

The competitiveness of Serbian products and services in The competitiveness of Serbian products and services in key sectors by introducing best practices and raising key sectors by introducing best practices and raising product/service standards to internationally acceptable levels product/service standards to internationally acceptable levels

Assisting Serbian agribusinesses “from field to fork” to get Assisting Serbian agribusinesses “from field to fork” to get maximum returns from their labor and increase exportsmaximum returns from their labor and increase exports

Economic Economic GrowthGrowth

Economic Growth Economic Growth DevelopmentDevelopment

Key results:Key results: In the last 2 years, municipalities in USAID’s In the last 2 years, municipalities in USAID’s

Municipal Economic Growth Activity attracted over Municipal Economic Growth Activity attracted over 800m Euro in investments and created over 800m Euro in investments and created over 11,000 jobs by becoming more business friendly; 11,000 jobs by becoming more business friendly;

Commercial Courts were made more efficient and Commercial Courts were made more efficient and transparent by introducing a Case Management transparent by introducing a Case Management System in all Commercial Courts. Case backlogs System in all Commercial Courts. Case backlogs have been cut drastically.have been cut drastically.

Projects helped introduce: VAT; private pensions; Projects helped introduce: VAT; private pensions; investment funds; a sound insurance industry, investment funds; a sound insurance industry, bankruptcy and enforcement and modern payment bankruptcy and enforcement and modern payment systems.systems.

In 2 ½ years, the Agribusiness Project has helped In 2 ½ years, the Agribusiness Project has helped Serbian companies to 91 million in export contracts Serbian companies to 91 million in export contracts (signed or under negotiation)(signed or under negotiation)

The Competitiveness Project has helped raise the The Competitiveness Project has helped raise the profile of Serbia as a destination for film production profile of Serbia as a destination for film production (with a Ralph Fiennes directed production to begin (with a Ralph Fiennes directed production to begin filming in 2010) and helped attract $40m in filming in 2010) and helped attract $40m in investments and exportsinvestments and exports

Please see: http://serbia.usaid.gov for more information. Thank you.