Note: This document may not always reflect the actual appropriations determined by Congress. Final budget allocations for USAID's programs are not determined until after passage of an appropriations bill and preparation of the Operating Year Budget (OYB).
PARAGUAY
FY 1997 FY 1998 FY 1999 Actuals Estimate Request Development Assistance.............. $4,785,000 $5,625,000 $4,525,000 Economic Support Funds*............. $200,000 $500,000
* LAC Regional request for FY 1999 includes $800,000
Introduction
Paraguay, an emerging democracy of five million people, faces political, social, environmental, and economic challenges. The U.S. Government's main policy objective in Paraguay is to consolidate and strengthen democracy to help preserve political and economic stability in the region. Environmental degradation and high population growth are also of concern to U.S. regional and global interests.
The Development Challenge
Paraguay has taken important steps to reform the government and adopt basic democratic principles since it began its transition to democracy in 1989. Despite these accomplishments, the transition has been erratic and needs to be consolidated. In November 1996, 83% of eligible voters participated in well-run, transparent municipal elections. In 1998, national elections will determine if the country continues towards democratic consolidation. USAID is assisting the Electoral Tribunal to organize and prepare for this enormous task by training Tribunal staff and poll-watchers, providing technical assistance to upgrade their information and communication systems, and carrying out voter education campaigns. Challenges facing the country are attempts to modernize the state, reform the judiciary, reduce corruption, and tackle socio-economic and environmental problems.
Institutions are weak and confidence in the government remains extremely low. A strong legal and regulatory framework backed by a more professional judiciary are fundamental to Paraguay's democratic and economic development. Key legislation to strengthen judicial reform, such as a modern Penal Code, are being passed with USAID support. Local governments are providing new services to their communities as the decentralization of basic public services begins. Consolidating these decentralization initiatives will remain a significant struggle in the near future.
Paraguay has one of the highest rates of deforestation in the world which, if unabated, will result in a country with no significant remaining forests in less than 10 years. Conservation of Paraguay's unique natural resources is of regional and global importance and is critical to the country's long-term sustainable development. Models are being developed to set aside substantial protected areas to decrease the deforestation rate and rationalize land use through a national private reserve program.
The country's annual population growth rate is one of the highest in the LAC region at 2.6% and maternal mortality is one of the highest in the hemisphere. The country is now in the process of undertaking major reforms in health, education, and family planning services. A recently conducted national reproductive health survey has pinpointed primary areas in which to focus USAID-sponsored activities.
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. Paraguay is not a candidate for graduation from U.S. development assistance in the near term. The state of the country's democratic institutions such as the Electoral Tribunal, key GOP Ministries, the Judicial System and the newly formed local governments as well as NGOs and political parties indicate that substantial time and effort are still required. However, USAID's population and environmental special objectives will be achieved by FY 2000.
Other Donors
The United States is the fifth largest bilateral donor after Japan, Germany, the European Union (EU) and Spain. The Inter-American Development Bank (IDB), World Bank, and United Nations Development Program (UNDP) are major multilateral contributors. USAID/Paraguay will continue to leverage other donor resources, such as influencing the World Bank and the IDB to include decentralization components in their new loans of a combined total of $60 million for the health sector. Discussions are underway with the Japanese to develop a joint reproductive health initiative under the U.S.-Japan Common Agenda. This program is expected to begin in mid-1998.
FY 1999 Program
USAID will assist Paraguay to increase its capacity for sustainable development in a participatory democracy. The program has a strategic objective of improved responsiveness and accountability of key democratic institutions. Consolidation of this nascent democracy is the cornerstone of the USAID program, as well as Paraguay's highest priority. This responds directly to the U.S. interests of preserving regional stability and promoting U.S. economic interests. A government that responds to citizens' needs and is accountable for its actions is fundamental. Funding of $2.9 million (DA/ESF) in FY 1999 will be used to achieve: more efficient, transparent, and participatory electoral systems and to better inform citizens on their civic rights and responsibilities; support more participatory and better functioning selected sub-national governments; and improve access to strengthened judicial and legislative systems. Special, narrower program objectives include improved management of an expanded protected areas system and increased use of voluntary family planning services.
Free and fair elections are key to a functional representative democracy. USAID/Paraguay's strategy will use the results of a comprehensive evaluation of the May 1998 general elections to guide the institutional strengthening programs for the new Election Tribunal. This activity will be complemented by electoral education programs by NGOs and civic organizations which include programs that reach traditionally marginalized groups such as youth and women. In addition, activities to strengthen political parties and improve civil-military dialogue will continue. USAID will also promote the adoption of a major package of legal reforms which will completely revamp the judicial system, including the elimination of gender bias. Training of judicial sector personnel in new procedures will be supported. Furthermore, local planning exercises, in which local governments and the community are co-responsible for carrying out municipal development action plans, will be expanded. Pilot activities in health decentralization will be underway and in FY 1999 the results of these operational research activities will be incorporated into a broadened decentralization of basic health care service delivery.
Intensive, unsustainable exploitation of land, water, and wildlife resources continues and poses a major threat to the survival of characteristic local and regional ecosystems. Successful models of sustainable private reserves are being developed under cooperative agreements with local NGOs. USAID will fund activities to develop management plans for these areas, build local management capacity, and develop economic alternatives to deforestation. The USAID-supported Parks in Peril program will be fully operational. This program strengthens the largest national park in the Chaco region with partial private sector park management, for the first time ever in Paraguay. These models, with an estimated $425,000 in FY 1999 funding, will enable the Government of Paraguay, private land owners, local NGOs and other donors to increase private and public protected areas.
During previous administrations, maternal and child health services and family planning deteriorated. Less than one-third of women of reproductive age have access to family planning services. USAID support of $2 million in FY 1999 will increase voluntary family planning through the introduction of quality public sector services and strengthened private sector information systems and services, including an innovative contraceptive social marketing program.
PARAGUAY FY 1999 PROGRAM SUMMARY
($000s)
USAID
Strategic and Special
ObjectivesEconomic Growth and Agriculture Population and Health Environ-ment Democracy Human Capacity Develop-ment Human-itarian Assistance
TotalS.O. 1
Improved Democratic Institutions
- DA
- ESF*
100
2,000
2,100
Sp.O. 1
Improved Management of Protected Areas
- DA
425
425
Sp.O. 2
Increased Use of Voluntary Family Plan-ning Services
- DA
2,000
2,000
Totals
- DA
2,000
525
2,000
4,525
* LAC Regional request includes $800,000 attributed to Paraguay democracy objective
USAID Mission Director: Barbara C. Kennedy
ACTIVITY DATA SHEET
PROGRAM: PARAGUAY
TITLE AND NUMBER: Improved responsiveness and accountability of key democratic institutions, 526-S001
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCES: FY 1999: $2,100,000 DA; $800,000 ESF (attributed under LAC Regional request)
INITIAL OBLIGATION: FY 1996 ESTIMATED COMPLETION DATE: FY 2000
Purpose: To support greater government responsiveness and accountability through creation of an effective judiciary and legislature, an independent functioning electoral system, citizens informed of their new civic rights and responsibilities, and local government with decentralized services based on wide citizen participation.
USAID Role and Achievements to Date: USAID is improving the responsiveness and accountability of key democratic institutions by carrying out a series of activities which feature institutional strengthening and human resource development. Technical assistance has been provided to the newly established Election Tribunal to create a new voter registry, inform voters of electoral procedures, supervise the work of new local and regional tribunals and councils, and successfully conduct the November 1996 municipal elections with an impressive 83% nationwide turnout. Preparations are underway to organize the national elections in May 1998. After the attempted coup in April 1996, President Wasmosy endorsed a USAID-sponsored program to enhance civil-military dialogue. For the first time Congress, key politicians, academics and top military officers met to discuss the roles of the military in a democracy and review new proposed defense legislation and a draft of a national defense strategy. Major support is still needed to assist the judiciary and legislature overcome their poor public images, improve access to the system, fight corruption, pass needed laws, and move toward an accusatorial and oral process system. The Supreme Court and the Office of the Attorney General are receiving technical assistance to move toward the passage of major legislation which will completely modernize the judicial system, including a new penal code which was recently enacted. Local governments are receiving training in administration, budgeting, and financial management and are part of a USAID supported policy dialogue on decentralization. After great debate, the National Health System Law was enacted. USAID supported this landmark legislation, the first ever to authorize decentralization of public services. Citizen groups are beginning to play a greater role in defining local priorities and are participating in community-wide public hearings. Technical assistance is being provided to develop models of decentralized services in key regions.
Description: USAID will focus on: a) election assistance to support the Election Tribunal in conducting free and fair national elections in 1998; b) promotion of more effective electoral education programs by local NGOs and civic organizations, including work with an NGO consortium to do a quick count of election results; c) the creations of a widely accessible elections information resource center; d) judicial and legislative reform through strengthening institutional and human capacity, especially through training of judges and court personnel in new penal code and in conducting oral proceedings; e) the adoption and execution of priority legal reforms, including the introduction of an alternate dispute resolution program and a civic education campaign; f) support for local governments to better plan and manage their programs which encourage joint local government and a community approach to solving community problems; and g) address the decentralization of basic public services to regional and local levels to increase transparency, accountability and efficiency. Funding will be channeled through both local and U.S. based NGOs or contractors working in coordination with the corresponding national or sub-national governmental agency.
Host Country and Other Donors: USAID has taken the lead in encouraging the donor community to support democracy, especially with the IDB. Using USAID-initiated studies, the IDB is designing
complementary projects to help modernize the judicial and legislative branches. The Organization of American States (OAS) is working collaboratively with USAID in the area of election assistance. USAID/Paraguay has successfully leveraged other donor resources to support this strategic objective, such as by influencing the World Bank and the IDB to include decentralization components in their new loans of a combined total of $60 million for the health sector. The GOP provides substantial, complementary support to USAID-sponsored initiatives.
Beneficiaries: Most segments of the population of approximately five million will directly benefit from increased participation and decision-making as a result of electoral support and the reforms in the judicial system. Local communities will have a greater say in the plans and actions of their local and regional governments and will benefit from better management of local health services. Citizen groups involved in urban environmental concerns will receive the benefits of a cleaner and safer environment.
Principal Contractors, Grantees, or Agencies: USAID implements activities through several U.S. private non-profit companies and international and local NGOs. U.S. principal contractors and grantees are the National Democratic Institute (NDI), the International Foundation for Electoral Systems (IFES), Development Alternatives Inc. (DAI) and State University of New York (SUNY). Local and international NGOs and grantees include the Information and Resources Center for Development (CIRD), the International Union of Local Authorities (IULA), the Paraguayan Center for Economic Liberty and Social Justice (CEPPRO), Alter Vida, and the Center of Electoral Assistance and Promotion (CEPAL).
Major Results Indicators: Baseline Target Population who believe that the national 39% (1996) 50% (2000) government is responsive to their needs Population that consider the elections clean 45% (1993) 65% (1998) Registered voters who vote (in national elections) 69% (1993) 87% (1998) Number of target sub-national governments 2 (1996) 17 (2000) with joint community project implemented Population who express satisfaction with 44% (1996) 60% (2000) municipal service delivery Number of key reforms enacted by Congress 0 (1996) 4 (2000) Population who believe that they receive a fair trial 40% (1996) 50% (2000)
ACTIVITY DATA SHEET
PROGRAM: PARAGUAY
TITLE AND NUMBER: Improved management of an expanded protected areas system, 526-SpO01
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1999: $425,000 DA
INITIAL OBLIGATION: FY 1996 ESTIMATED COMPLETION DATE: FY 2000
Purpose: To increase protection of Paraguay's natural resources through a strong National Parks and Private Reserve system while promoting compatible activities in the surrounding areas.
USAID Role and Achievements to Date: Under the previous Parks-in-Peril program USAID assisted a Paraguayan consortium of public and private agencies to purchase and put under long-term protection a 240 square mile reserve, one of the last large continuous tracts of Interior Atlantic Rainforest in the tri-country region of Paraguay, Brazil and Argentina. USAID's successful private reserves program, which incorporates conservation and sustainable use of resources, includes 15 reserves and 585,000 hectares under protection. The program has targeted developing effective models of public and private reserves which will be used as a basis for future environmental activities.
Description: Paraguay, with one of the highest rates of deforestation in the world, loses 10% of the its remaining forest cover every year, threatening the future of unique regional ecosystems. Environmental problems aggravate poverty, complicate the transition to democracy, and have detrimental impacts on indigenous and non-indigenous women and men. It is imperative that Paraguay develop and implement sustainable land use models and preserve the last remnants of these important ecosystems. Long term growth and sustainability cannot be sustained if the country's resource base is not protected. All USAID activities are carried out in close collaboration with the Government of Paraguay's (GOP) Directorship of National Parks and Wildlife (DNPW). Activities include the delineation of new parks, training park guards and other park/reserve personnel, development of enforcement regulations, equipment, and organizing public awareness campaigns on conservation. Through a prominent local conservation NGO, a private reserve program plan is being established which will provide an effective conservation compatible with sustainable income generating activities. Important components of this plan include health, wildlife, and forestry projects with indigenous communities within and close to the parks. This is because of their close link to the forest and great need for these local populations to use and sustain themselves with food and cash income. A new public, national park has been incorporated into USAID's Parks-in-Peril program which includes an innovative public/private system for park management.
Host Country and other Donors: The GOP has increased funding for DNPW progressively over the past several years and will continue to do so as the issue of environmental degradation continues to command attention nationally and internationally. The GOP has presented a bill to Congress to create a Ministry of the Environment which is currently under study in commission. Other key donors include Japan and Germany. Under U.S.-Japan Common Agenda USAID has initiated joint programming whereby the Japanese have agreed to fund a local NGO to augment USAID's private reserves program. This is the first of a number of proposals being discussed under the common agenda. Importantly, the World Bank and IDB emphasize environmental mitigation in their loan packages and have directly provided loans for resource management. USAID coordinates closely with these international financial institutions for maximum impact and plans to use the models developed to encourage other donors to add more funds to expand protected areas.
Beneficiaries: Indigenous groups living in and close to national parks and reserves. Small farmers and rural inhabitants within buffer zones of parks, which comprise about 49% of Paraguay's population. The general public through an improved economy which is not based on natural resource depletion.
Principal Contractors, Grantees, or Agencies: USAID implements activities through The Nature Conservancy (TNC), a U.S.-based organization and two local NGOs, the Moises Bertoni Foundation and the Desdel Chaco Foundation.
Major Results Indicators: Baseline (1996) Target (2000) Number of reserves graduating to self-sufficiency 2 6 Number of areas created 15 24 Number of reserves that are offering education 1 10 programs to people in the reserves or in areas Number of economic alternatives 4 15 implemented on reserves
ACTIVITY DATA SHEET
PROGRAM: PARAGUAY
TITLE AND NUMBER: Increased use of Voluntary Family Planning Services, 526-SpO02
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1999: $2,000,000 DA
INITIAL OBLIGATION: FY 1996 ESTIMATED COMPLETION DATE: FY 2000
Purpose: To increase current contraceptive prevalence by expanding access and use of family planning services and strengthening capacity and sustainability of family planning programs.
USAID Role and Achievements to Date: While USAID had funded population and family planning activities on a limited basis in the past, it was not until 1994 that the Government of Paraguay (GOP) made reproductive health and family planning a priority. In 1994, USAID jointly developed a population assistance program with the Ministry of Health and a local family planning NGO. This program was approved and implementation began in 1995. Currently the Ministry of Health's reproductive health plan strongly endorses family planning and for the first time includes funds for contraceptive supplies. USAID focuses jointly on the private and public sector and has completed a national reproductive health survey. Expansion of services to include special services for males and permanent methods has begun. Activities to assist the private sector organize cost-effective services are being carried out.
Description: USAID/Paraguay's strategy is to expand family planning access by offering family planning services through existing facilities which do not currently provide them, rather than establishing new facilities; to define quality of family planning services as the provision of a range of modern family planning methods by providers with adequate technical and managerial skills; and to support activities aimed at increasing efficiency and reducing the costs of family planning programs. These activities will be carried out through local NGOs and U.S. cooperating agencies. USAID's support for expanded access to family planning services includes the expansion of community-based and alternative distribution systems, including a new innovative contraception social marketing program, to reach undeserved rural and marginal urban areas as well as programs targeted to special groups such as male clinics, adolescents and permanent family planning methods. In addition, program efficiency and sustainability are addressed through training and technical assistance in contraceptive logistics management, specialized clinical training, financial and program management and closer coordination between the public and private sector. USAID is also introducing the concept of model quality service delivery in certain regions which more directly address specific community needs. This model includes a basic package of selected family planning services for the community and establishes minimum service delivery conditions which assure quality family planning.
Host Country and Other Donors: 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. The United Nations Population Fund provides public sector support and the World Bank and the IDB are initiating health sector loans which provide equipment and training to improve quality of public sector health services. The International Planned Parenthood Federation also provides support to its local affiliate.
Beneficiaries: About 1.2 million women of child-bearing age, including approximately 750,000 couples. Young adults and men will also be beneficiaries for targeted information and services. USAID-supported programs are targeted towards at-risk couples not currently using family planning, which includes nearly 330,000 couples which do not have access to family planning services.
Principal Contractors, Grantees or Agencies: USAID implements the program through a number of U.S.-based firms such as Population Services International (PSI), Management Sciences for Health (MSH), Access to Voluntary and Safe Contraception (AVSC), Family Health International (FHI), John Hopkins University and John Snow Inc.
Major Results Indicators: Baseline Target (2000) Contraceptive prevalence for women 35% (1990) 50% 15-49 using modern methods Couple years of contraceptive protection (CYP) 107,000 (1996) 156,000 Rural women within 1/2 hour of a service 15% (1990) 50% delivery point Urban women within 1/2 hour of a service 57% (1990) 80% delivery point Quality service delivery points providing 0 (1996) 15 services in priority regions
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