Building and strengthening institutions has been at the center of our efforts in Afghanistan. We are supporting the electoral process and assisting voter registration, political party development, and civic education. We are also expanding our rule of law program to enforce a new constitution and are involved in supporting educational institutions. In almost every country where USAID works—whether we are assisting the Indonesian Attorney General’s office in its battle against money laundering or strengthening the rule of law in Colombia—building institutional capacity is central.

Terrorism also breeds in a country where a government is present but gripped by corruption. I have commissioned an USAID-wide anti-corruption strategy. We have supported Transparency International almost from its inception, and we work with a host of related non-governmental organizations in the field. By encouraging publicity and by empowering watchdog groups, we are countering the petty corruption that demoralizes the citizenry and encumbers its activities. The economic drag from such practices is literally incalculable. Weak Financial Systems

Related to weak governance is the issue of weak financial institutions and lack of financial transparency. Of specific significance to the war on terrorism are our efforts to reform banking and financial systems and install auditing practices that will track the monies that serve criminal activities and feed terrorist networks. USAID has helped pass legislation, set up financial crimes investigative groups, and trained bank examiners to identify and report suspicious transactions.

Lack of Education and Training

In the long term, education is one of our most potent weapons against terrorism. We have designed specific programs for the Muslim world that respond to the challenge posed by radical Islam. Radical schools have filled the vacuum in countries like Afghanistan and Pakistan, where the public education system is weak. One approach thus aims to improve the performance of the secular educational system. In addition, USAID shares the view of enlightened Muslims who see the participation of women as key to modernization, and our educational programs are designed accordingly.

Moreover, the very presence of USAID Embassies and Missions in a host country can be a powerful educational force. More than 4,000 Foreign Service Nationals (FSN) work for USAID. I am proud that among the legions of “graduates,” both of our educational programs and of our FSN workforce, many have gone on to ministerial posts and other positions of influence in their countries. One FSN graduate, Ana Vilma Albanez de Escobar, was elected as the first female vice president of El Salvador in what was a most promising election for her people and for inter-American relations.

President Bush has said the war on terrorism is eminently winnable but will be long and tough. He has also referred to the war as “unconventional,” requiring new thinking. He has charged my agency with new challenges and unprecedented responsibilities. I consider it my most important task to respond to this “calling.”