Development Challenge Other Donors FY2001 Program / Activity & Budget Information Summary Tables Program Summary Work Force Data Program/Sector Summary USAID Search: Paraguay Previous Years' Activities 2000, 1999, 1998, 1997 Last updated: Thursday, 21-Dec-2000 15:47:09 EST

Introduction

Paraguay is just emerging as a true, participatory democracy. The recent constitutional crisis and the bloody confrontations in March 1999 that caused the resignation and exile of the president marked a watershed for the country. The time is now appropriate to strengthen the incipient civil society movement and support major national reforms.

The USAID program is at the forefront of the U.S. Government (USG) efforts to strengthen and deepen Paraguay's young democracy. A limited USAID investment has yielded enormous results in electoral transparency and credibility, major judicial and Penal Code reforms, and a progressive civil-military dialogue. A process has been started for local governments to become more responsive to citizens' needs and more effective in public service delivery. The new Strategic Plan for FY 2001-2005 builds upon previous successes and includes new fundamental program focuses in civil society strengthening, the provision of basic services by local governments, and developing a serious national reform agenda on pressing national concerns.

The need to balance population growth and the appropriate use of the nation's natural resources are integrated into this plan. These program areas are also of high USG interest and are priority areas, along with democracy strengthening, in the U.S. Embassy's Mission's Performance Plan (MPP). USAID/Paraguay's strategy provides strong mutually re-enforcing programming across all three of these critical areas (democracy, reproductive health, and environment).

The Development Challenge

For the first time ever, civil society became fully involved in the democratic process as the events of March 1999 in effect constituted a popular revolution in favor of democratic rule and sealed the common citizen's commitment to this process in blood. The first phase of the transition to democracy, which occurred through a military coup in 1989 and was managed by an aging political elite during its first decade, has come to a close. A second generation of reforms, which will lead Paraguay into a more consolidated democracy and make it an equal partner among democratic nations of the hemisphere, has been initiated.

Democratization is the centerpiece of U.S. policy in Paraguay, from which other components of modernization are expected to follow. At a minimum, Paraguayan democracy must be able to demonstrate an ability to improve economic conditions, ensure the provision of basic services to its citizens, and provide jobs for a rapidly expanding population. If democracy does not deliver a promised better life, a real alternative is that the people will embrace the populist solutions that have been proposed in the recent past and will lose faith in this fledgling democracy.

The two major themes that link activities in the environment and reproductive health to the overall democracy program are: 1) that the decentralization of power and authority to local levels strengthens government accountability and accessibility to citizens, and 2) that a vibrant, pluralistic civil society is the basis for democratic governance. Both of these approaches are embodied in the Mission's development philosophy and highlighted in all three of the Mission's Strategic Objectives (SOs).

During the new strategy period, the Mission intends to build upon its efforts in local government (this includes departmental and municipal governments); expand considerably its efforts with civil society; become more involved in national reform activities; expand family planning activities into a more encompassing reproductive health program; and conserve biodiversity located in internationally important ecoregions. USAID/Paraguay also plans to support the efforts to combat corruption and increase good governance practices. USAID/Paraguay's comparative advantages lie in its ability to develop state-of-the-art innovations that are replicable by other donors and in its close working relationships in civil society and local government. These areas of strength help the Mission maximize its impact and influence by taking into account institutional, economic, social, and political constraints. Through judicious use of its comparative advantages, USAID/Paraguay can continue to leverage its assistance to enhance the effects of its programs by working closely with other donors and partners in complementary areas. The volume of USAID/Paraguay's resources is small in comparison to those of multilateral and bilateral donors, but its efforts and results are well respected and have been replicated by others because of good partner relationships and identification of common approaches.

Although experiencing slow economic growth, Paraguay has a relatively low level of international debt and is current on debt payments. This is not a significant issue for U.S. concern. Nevertheless, the state of the country's democratic institutions -- such as, the Electoral Tribunal, key GOP Ministries, the Judicial System, recently formed local governments, as well as NGOs and political parties -- indicates that substantial time and effort are still required to complete the transition to a fully-functioning democracy. Paraguay is therefore not a candidate for graduation from U.S. development assistance in the near term.

Other Donors

The United States is Paraguay's fifth largest bilateral donor after Japan, Germany, the European Union (EU), and Spain. USAID is the main donor working with the decentralization of power and authority to local governments and with civil society. The Inter-American Development Bank (IDB), World Bank, United Nations Development Program (UNDP), and the Pan-American Health Organization (PAHO) are major multilateral contributors.

Unlike most other donors in country, USAID assistance does not go through the central government nor is it tied to bilateral cooperation agreements. This has allowed the Mission greater flexibility in program implementation and allowed key programs to move forward when other donors were stymied by the Government of Paraguay (GOP) red tape. USAID/Paraguay has taken the lead in encouraging the donor community to support democracy and has formed a major donors group on judicial reform issues. This is part of the Mission's strategy to close-out its activities in penal reforms and pass on training and follow-up responsibilities to other donors, while at the same time maintaining a leadership role in policy issues related to judicial reform.

In the area of the environment, other donors continue to be highly involved in the conservation of natural resource activities and work in close coordination with USAID. The UNDP is involved in the protection of ecosystems of regional and global importance in Paraguay. The Japanese International Cooperation Agency (JICA) is trying to diminish the severe deforestation problem that Paraguay faces with a reforestation project. The German Technical Cooperation Agency (GTZ) is implementing an effort to elaborate a national action plan for the protection of natural resources.

The GOP National Reproductive Health Council includes members from the public and private sectors and donor community. The Council is active in organizing and coordinating all population and family planning activities. USAID/Paraguay is an active member of the Council. The Mission is also coordinating activities with the Japanese Government under the U.S.-Japan Common Agenda to carry out joint activities in reproductive health.

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