SUCCESS STORY
Unemployed Registrations Surge in
Iraq Following Ministry Push to Promote Social Safety Net
As part of the USAID-funded Economic Governance II Project to aid economic reconstruction and policy reform in Iraq, technical assistance is being provided to assist capacity building and institutional strengthening at the Ministries of Finance (MOF) and Labor and Social Affairs (MOLSA). With USAID's guidance and support, the Government of Iraq is implementing a Social Safety Net program to reduce poverty and help poor and vulnerable families throughout Iraq, who represent nearly 25 percent of the country's population. One of the main initiatives in the program is a job placement program. Participation is required in order to receive benefits.
More than 79,000 unemployed Iraqis registered by January 2006
By the end of January, more than 79,000 unemployed Iraqi Workers had registered with the employment centers operated by the MOF. Approximately 73,000 were new registrants, while the remaining 6,000 Iraqis were re-registering using a revised form.
Though Iraqis could sign up for the program in 2005, a series of public announcements about the Social Safety net program from the ministry's media unit at the beginning of the new year, brought a late surge in participants.
A ministry spokesman said that, "getting 79,000 people registered in such a short space of time is a great start to the year. We averaged less than 2,000 registrations per month in 2005. The actual figure will be even higher as we are still awaiting returns from seven Governorates. You can see that there is a real interest in the Social Safety Net, and we will continue to encourage new registrations throughout the rest of the year."
The initiative is aimed at lifting 850,000 families out of poverty by the end of 2006. The program provides a package of financial and other benefits and services to the unemployed, low-income families, and people with disabilities. Among the menu of services are vocational and entrepreneurial training, career guidance, and job interview preparation.
USAID is determined to build the capacity and institutional strength in the MOF and the MOLSA. The USAID Economic Governance II Project's Social Safety Net team is providing ongoing technical assistance and training in policy, legal strategy, public relations, and operational areas to meet this goal.
THE ECONOMIC GOVERNANCE II PROGRAM
The Economic Governance II program continues reforms in tax, fiscal, legal, institutional, and regulatory frameworks. In coordination with the Ministry of Finance, USAID helps policy makers formulate and implement policy decisions based on international best practices. Capacity building efforts at the Central Bank of Iraq (CBI) are helping expand the ability of the CBI to develop and monitor an effective monetary policy, strengthen its supervisory role, and modernize banking operations. At the same time, assistance is being provided to the electricity and communications industries, as well as other relevant government ministries. USAID technical assistance also supports the development of a reliable social safety net, ensuring assistance to displaced workers and the provision of sustainable pension benefits.
ECONOMIC GROWTH
USAID works with Iraqi institutions to establish an environment for sustainable economic growth. Assistance empowers policy makers to formulate and execute decisions based on economic data, and to implement modern best practices in economic governance. USAID projects provide a framework for private sector trade, commerce, and investment throughout Iraq.
HIGHLIGHTS THIS WEEK
USAID's Izdihar program trains 25 Iraqi Certified Public Accountants in international accounting standards. These accountants, coming from 15 governorates throughout Iraq, are part of a cascade training program that will reach hundreds of Iraqi auditors in 2006. Each of the current participants will provide training on the requirements of the International Federation of Accountants (IFAC) to their colleagues.
Once it is rolled out across the country, the training program will enhance the professional skills of the Iraqi auditors, familiarizing them with the industry's code of ethics after years of isolation from the business community.
Iraqi credit officers learn new lending methods for small and medium enterprises (SMEs). To respond to the specific credit needs of local SMEs, private Iraqi banks are faced with restructuring their credit departments and changing traditional lending methods from collateral-based to cash flow-based lending. In support of improved lending practices, USAID's Izdihar program is providing a series of training workshops for credit officers of the Iraqi banks. These workshops expose banking officials to the needs of SMEs, helping banks assess profitability and providing them with a methods of analysis.
At a recent 10-day course, 15 Iraqi credit officers from eight banks learned about financial analysis for SME loans through mock field research and case studies relevant for the local market. "This will help many people to start their own business by getting loans based on cash flow analysis, not guaranteed with a mortgage", said one of the trainees. The small- and medium-sized loans will assist many businesses in creating new jobs.
The participants expressed confidence that the loans for SMEs will contribute to bank revenue. By the end of the program, credit officers from up to 30 Iraqi banks will be trained and able to share their new skills with colleagues.
Iraq Securities Commission starts work in new headquarters. With support from the Izdihar program, the Iraq Securities Commission recently relocated to new headquarters in Baghdad. The USAID program helped provide new and updated equipment, helping the Securities Commission return to operation. Two separate procurements helped strengthen local technology infrastructure, including IT equipment and internet services. USAID funding also covered the design of the floor layout, refurbishment, and electrical wiring.
With a professional staff of over 30 people, the Securities Commission is responsible for regulating Iraq's growing securities market. A strong and transparent capital market will help Iraqi companies to obtain much needed investment capital while ensuring that the average Iraqi can participate in the private sector growth. Izdihar is providing assistance to strengthen the skills of the staff in order for it to effectively manage the institution's regulatory function.
AGRICULTURE
USAID's goals are to work in conjunction with Iraqi ministries, the private sector, and higher education institutions to revitalize agricultural production, stimulate income and employment generation, nurture rural development initiatives, and rehabilitate the natural resource base.
HIGHLIGHTS THIS WEEK
USAID programs help establish olive orchards in eight governorates. Olives, grown throughout the region, are a potentially important cash crop for Iraqi farmers. USAID's Agricultural Reconstruction and Development in Iraq (ARDI) program is working with the Ministry of Agriculture (MOA) to establish 16 demonstration orchards in eight governorates, using thousands of saplings, to help improve olive production throughout Iraq. The orchards will be planted with both high oil and table fruit olive varieties.
Construction of the nurseries and installation of necessary irrigation equipment will be completed by March 2006. Each orchard will be 2.5 hectares. ARDI is also providing each orchard with an electric pump and water reservoir for adequate irrigation through drip-kit systems. With these orchards in place, the MOA plans to launch an olive production initiative, encouraging proper cultivation techniques to improve production and increase farmers' income.
Nearly 60 pesticide dealers from 14 governorates receive training in pest management techniques. Developed by ARDI, the training covered technical information about pesticide use, handling, and the regulations governing the chemicals. All of the participants have received a "dealers' manual" with important information about pesticides and pest management.
This training is part of a larger effort to improve the pesticide industry in Iraq, an effort that is being driven by pesticide dealers. The current lack of effective regulation, and consequent expansion of fraud and misuse, has harmed farmers and the industry. Pesticide dealers interested in improving the industry through self-regulation recently established the Iraq Pesticide Dealers and Agricultural Inputs Association with ARDI support.
Workshop participants are now prepared to better assist farmers, benefiting the industry, improving agricultural production, and reducing potential harm to both the local environment and rural Iraqis.
ARDI holds a workshop on market-based agriculture, reaching 40 leaders from 11 governorates. Iraq's transition to a market-based economy after years of central government control changes the role of the government and opens new opportunities for the private sector. The workshop, bringing together MOA and private sector representatives, provided key information on the transition to a market economy and agricultural policy development in Iraq. Participants received information on economic concepts essential for participating in a market-based economy, including price determination and discovery, developing national and international export markets, and alternative agricultural policies that affect production, consumption, and trade.
ARDI staff facilitated a discussion about agriculture in Iraq and comparisons to other market-based economies, emphasizing the importance of policy consequences, costs, benefits and implications before they are implemented. ARDI plans to expand participation in this type of policy discussion with more Senior Policy Roundtables this spring.
NATIONAL GOVERNANCE
USAID continues to plan and implement a variety of programs, undertaken in partnership with Iraqi counterparts, matching the needs of the evolving Iraqi democracy. In particular, USAID provided extensive support to the Iraqi National Assembly in the lead-up to the December 2005 elections.
HIGHLIGHTS THIS WEEK
USAID partner conducts training on NGO roles in a parliament. From Jan. 21 to 24, the National Democratic Institute (NDI), a partner of USAID, conducted an intensive four-day training program for 42 members of 21 NGOs that will become the core implementers of the USAID's new program on 'Civic Outreach to Citizens on the Role of Parliament." The training-the-trainer workshop was carefully designed to introduce NGO trainers to a variety of new concepts and topics essential to the understanding of the role, responsibilities and function of a parliament and its members. Additionally, the program highlighted the rights and responsibilities of all citizens in a democracy.
The NGO members, trained by USAID last week, are lawyers; each of these members will each train an additional 12 to 18 lawyers. Training focused on how to conduct citizen forums. Participants were introduced to a variety of topics on the role of parliament and citizens in democracy, and taught how to share new knowledge with others.
One of the characteristics of the workshop was the active involvement of USAID local staff members who acted as trainers and facilitators throughout the training program. A week earlier, from Jan. 16 to 29, USAID had conducted an internal workshop to build on existing knowledge and experience, and to ensure USAID local staff was fully prepared to organize and deliver the training-of-trainers workshop on civic outreach. USAID staff also seized this opportunity to gain further pedagogical experience in preparation for its growing involvement in activities focused on NGO capacity-building.
USAID's goal is to hold an estimated 6,000 such sessions for up to 180,000 individuals nationwide over a two-month period.
USAID conducts successful training on basic parliamentary skills. From Jan. 24 to 26, the governance team for NDI conducted three-day training for 18 staff members of the Iraqi Council of Representatives. The training introduced the Iraqis to parliamentary designs and procedures, lessons in the function of parliament in society, the council's current and evolving staff structure, the function of legislative committees, parliamentary terminology, parliamentary rules of procedure, fundamentals of time management, report writing skills, and techniques for holding effective meetings.
TRANSITION INITIATIVES
USAID's Office of Transition Initiatives (OTI) supports the transition to a participatory, stable, and democratic country. OTI provides quick-dispensing, high-impact grants meeting critical needs-providing short-term employment, restoring basic government and community services, increasing access to information and communication, and encouraging protection of human rights.
HIGHLIGHTS THIS WEEK
A series of Iraq Transition Initiative (ITI) grants restored irrigation systems in 27 villages in northern Iraq. Decades of conflict and neglect have destroyed irrigation channels throughout Iraq, vital for local agriculture and livelihoods. These ITI grants employed 225 local residents and 19 skilled and professional workers, helping relieve tensions in this multi-ethnic area by providing employment to local laborers. Additionally, cleaning channels has greatly improved agricultural productivity, improving farmers' income and jumpstarting the local economy.
An ITI grant helped a central Iraqi municipality reestablish operations in the aftermath of a recent battle. The grant allowed the directorate general to resume operations, which in turn provided an incentive for Iraqi workers to return to the city. The municipal building had sustained damage requiring structural repair and maintenance for the electrical and sanitation systems. Due to the damage, local ministries responsible for the water and sewage services in the city were unable to respond to local needs.
The ITI grant provided communications assistance and supported local engineers and laborers as they rushed to restore essential services and provide order for the city's returning residents. The collaborative efforts of ITI and the Interim Government in pursuit of the municipal rehabilitation demonstrated a shared commitment to strengthened local government.
Construction has begun to install and rehabilitate soccer fields in a major city in south-central Iraq. A series of ITI grants has provided incentives and equipment for residents involved in cleaning and rehabilitating the soccer fields. The grants complement a community driven initiative to install trash bins and commence community cleanup projects throughout the city.
Several neighborhoods-each with over 2,000 residents-received ITI support in hiring 20 community members for the renovations. The grants provided the community a way to gather together and fulfill a shared need. In addition, the soccer fields have been well received by a large number of youth.
A neighborhood council in central Iraq elected to use an ITI grant on repairs to their sewage pumping station. Working with local authorities, ITI provided essential equipment and installation services. In addition, ITI funded four submersible pumps and a generator to help manage overflow, an effort that has already greatly reduced the presence of raw sewage in city streets.
This neighborhood has suffered from severe flooding and raw sewage spills, impeding progress on construction of the network and trunk lines and creating numerous problems for the residents. Lacking functioning equipment, the pump station had not been able to perform its crucial role of pumping sewage from the sewage network into the canal. The ITI grant has improved the local sewage system, benefiting nearly 5,000 residents.
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