255. National Security Study Directive 3–861
Washington, September 19, 1986
U.S. SUPPORT FOR ECONOMIC GROWTH
IN SUB-SAHARAN AFRICA (U)
Introduction
This National Security Study Directive establishes the Terms of Reference
for a review of U.S. economic programs and policies which will serve as
the basis for implementing the President’s goal of helping to end hunger
in Sub-Saharan Africa. This goal takes into account factors such as (1)
humanitarian interest in Africa; (2) concern for Africa’s economic
problems; (3) commitment to reform by African leaders at the UNGA Special Session on the African
Economic Crisis; (4) declining levels of U.S. assistance to Africa; (5)
the need to target assistance toward growth, stabilization and debt
management; and (6) the review of overseas staffing levels for
diplomatic security reasons. (C)
Objectives
The President has established a policy goal for the U.S. to help end
hunger in Africa through economic growth and private enterprise
development. The objective of the NSSD
is to orient U.S. economic policies and programs to that end and to
support the international effort to help Africa resume economic growth
and manage its debts. (U)
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Scope
The Task Force Report will be based on existing USG, World Bank, IMF and
other available analyses. No new written material will be requested
unless gaps are identified. Working Groups will provide recommendations
to the Task Force which will serve as the basis for a report to the
President on how to implement his goal for Africa. The report will cover
actions already taken as well as recommend further action. (C)
Please provide the name of the point of contact for this NSSD from your Agency to the NSC Directorate of African Affairs
(395-3391) by COB, Thursday, September 25, 1986. (U)
FOR THE PRESIDENT:
Attachment
National Security Study Directive
Outline2
U.S. SUPPORT FOR ECONOMIC
GROWTH
IN SUB-SAHARAN AFRICA (U)
The Task Force will address the following, within the context of U.S.
political, strategic and economic goals for Africa: (C)
1. Economic Assistance. Identify African government policies needed
to promote growth through private enterprise; identify policies to
improve the impact of stabilization programs on private enterprise
and economic growth; identify options or strategies for broadening
the benefits of policy reform for the majority of the people; assess
role of government and U.S. support to the public sector; identify
policies and programs to stimulate local private sector response to
growth opportunities and rural linkages; identify optimal blend of
assistance, e.g. program/project/PVO/food aid/central programs, for different country
debt/growth situations. (U)
2. Debt Management. Develop programs and policies whereby U.S.
actions on outstanding and new debt are leveraged to reenforce
growth and private enterprise; identify programs and policies to
support African efforts to manage their debt; identify policies for
rescheduling, new lending, grant vs. loan assistance and arrears;
identify structural causes of budget deficits and policies and
programs to address these; identify
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financial management tools for alleviating the
debt burden; develop a strategy to enlist the support of other
creditors. (U)
3. Food Aid Policy. Determine how U.S. agricultural resources can be
used as incentives for economic growth; maximize food aid and
current food stocks to generate resources for Sub-Saharan Africa,
consistent with the President’s goal of regional food
self-sufficiency; consider monetization of food aid, food for work,
use of local currency generation, policy dialogue, and role of food
aid in promoting intraregional trade; determine which food aid
vehicles (Titles I, II, III, Food for Progress, Section 206) are
appropriate to specific development objectives. (U)
4. Private Sector Trade, Investment and Role in Economic Assistance.
Identify optimal contribution of U.S. private sector for growth in
Africa; identify policies to increase U.S. trade and investment with
Africa, including consideration of special trade incentives for
low-income countries; identify options for U.S. government agencies
to better support U.S. private business involvement in Africa;
identify administrative and legislative adjustments needed to
improve the contribution of the U.S. private sector to Africa’s
growth. (U)
5. Multilateral Diplomacy and Implications for U.S. Foreign Policy.
Identify a framework for enhanced donor coordination on broad policy
and program issues; assess relative priority of economic growth with
other U.S. political and strategic objectives in Africa; given that
economic pluralism is a prerequisite for political pluralism and
democracy, identify options for U.S. support to political regimes
which do not foster private sector growth policies leading to
equitable growth; identify strategy for making shift to countries
which support private enterprise and growth. (C)
6. Budget Allocation. Develop a structure of budget presentation and
implementation that will ensure that 1) budget allocations for the
region are evaluated on the basis of the President’s goal by both
the Administration and the Congress; and 2) the administrators of
this program are given the needed flexibility to implement their
tasks in accordance with the goal; identify legislative changes
needed to meet the President’s goal for the region. (C)
7. Administration: Organizing the USG. Assess administrative changes and follow-up
procedures to ensure that the President’s goal for Africa is
implemented for the remainder of this century, including orientation
of all Executive Branch economic efforts for Sub-Saharan Africa;
inter-agency coordination for implementation of growth-oriented
policies and programs; continued monitoring and evaluation of the
results of the program; policy directives for U.S. agencies and
representations; administrative changes, employee training and
hiring needed to enhance the capacity of the agencies to implement
this policy; and legislative requirements to implement the program.
(C)
