DEVELOPMENT ASSISTANCE
PROGRAM OVERVIEW

NEW STRATEGY (FY 2004 - 2009)

An artisan from Ilobasco, Cabanas, works on a clay piece.  He is a beneficiary of USAID’s Artisan Development Program.  Photo by Celina Monterrosa, Aid to Artisans.

The U.S. government’s FY 2004-2009 development assistance program in El Salvador is managed by USAID under the umbrella of the Regional Strategy for Central America and Mexico.  The regional framework promotes a more democratic and prosperous Central America and Mexico, enabling these countries to share the benefits of trade-led growth broadly among their citizens, including through the implementation of the Central America-Dominican Republic Free Trade Agreement (CAFTA-DR).  This strategy concentrates USAID investment towards a limited number of results within three performance areas corresponding with the U.S. government’s Millennium Challenge Account country eligibility criteria: Ruling Justly, Economic Freedom and Investing in People.  Accordingly, USAID/El Salvador’s new strategy, carried out through program agreements with the Government of El Salvador (GOES), focuses on promoting democracy and good governance, expanding and diversifying the economy, and contributing to healthier and better educated people.

More Responsive, Transparent Governance:

• USAID is concentrating efforts on strengthened rule of law by improving the transparency, efficiency and promptness of selected parts of the judicial system as well as promoting increased use of alternative dispute resolution (ADR) mechanisms, in particular mediation. The program will expand access to ADR services, which will ease congestion in the formal judicial system.
  
  
• The program supports GOES and NGO efforts targeting youth at risk to prevent youth violence and reduce the numbers of youth joining gangs.
  
  
• The program promotes greater transparency and accountability of local and national government in the management of public resources and decision-making.
  
  
• The program supports the National Commission for Local Development (CONADEL) to promote more accountable local government, and to support municipalities in better responding to citizen needs.
  
  
• The program supports civil society organizations’ participation in projects related to transparency, accountability and advocacy.
  
  
• The program will also support some GOES institutions to increase transparency and reduce corruption.  This will include the implementation of programs on public ethics, access to information and transparency of judicial processes.

Open Diversified, Expanding Economies:

• USAID is continuing three successful export-oriented activities from the previous strategy: agricultural diversification, handicraft promotion and export promotion.  These provide a solid foundation for continuing job creation and economic stimulation under the new program.
  
  
• USAID will work with the GOES and the private sector to help increase trade, support job creation and promote economic opportunities for small and medium businesses that will lead to increased and more equitably distributed incomes, as well as successful implementation of CAFTA.
  
  
• USAID’s program will strengthen Salvadoran capacity to manage and conserve two watersheds, protect biodiversity in and around protected areas, and enhance the ability of households living in key watersheds to diversify their incomes.
  
  
• The program will help address laws and policies that promote trade and investment, such as sound fiscal policy needed to increase government revenues for investment, help the GOES and private sector take advantage of CAFTA, including addressing issues associated with agreement compliance and contract enforcement.
  
  
• At the firm level, the program will promote more competitive private enterprises in both urban and rural settings.  Trade capacity building activities will increase productivity and efficiency of small and medium enterprises, leading to increased sales, jobs and market opportunities.
  
  
• The program will improve management practices and business skills of rural and urban enterprises; increase business access to market information and requirements to help improve product design and packaging; promote innovation and access to technology; and strengthen alliances between large companies and investors and potential local suppliers.
  
  
• As access to financial services is a constraint to enterprise growth, USAID will try to increase small business access to finance by increasing financial institution understanding of small business needs and by decreasing the risk of lending to them through technical assistance and a loan guarantee program.

Healthier, Better Educated People:

• A productive economy requires healthy and well educated citizens.  There is a need to increase investments in preventive health care and basic education as well as become more accountable, transparent and efficient in managing social sector investments.
  
  
• USAID will help the Ministry of Health strengthen and expand decentralization of the health care system, enhancing the knowledge and skills in primary health care to policy makers and managers, strengthen community involvement in delivery of health services, and encourage alliances to leverage and direct scarce resources for access to safe drinking water.
  
  
• USAID will support, strengthen and improve quality, access and practices related to reproductive health, child health, and nutrition, with a focus on the primary health care level.
  
  
• The program will focus on HIV/AIDS prevention and education among high risk groups and reduce maternal and neonatal deaths related to health facility-based infections.
  
  
• USAID El Salvador and the Ministry of Education (MINED) launched the new education program designed to improve the use of investment resources for basic education, reduce repetition, improve access to and quality of basic education, specifically in language competencies.  The objectives of this program include improving educational opportunities through training on language-teaching skills, measuring learner progress and developing civic competencies among students.  The new program will focus on 580 primary rural schools located in seven departments.  At the national level the program will focus on increased investment, equitable distribution and efficient application of education resources.