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FY 1997 Development Assistance: $3,600,000
Introduction.
Paraguay is South America's youngest democracy, recently emerging from a 34-year military dictatorship. The consolidation and strengthening of democracy are the United States over-riding objective in Paraguay. Serious environmental and population problems are also of concern. Strategically located in the heart of South America, Paraguay has a population of 4.6 millon people and is one of the poorer countries in the region. While an impressive beginning has been made in Paraguay's democratic transition, there are still many formidable obstacles to further progress. With its tradition of a strong central executive, the country's judicial, legislative and local government institutions are notably weak. Paraguay continues to look to the United States for advice and support. It is in the interest of the United States to assist Paraguay in its democratic transition, which will help preserve political and economic stability in the region. Strong and effective democratic institutions will guarantee human rights and social justice and will enhance U.S. investment.
Paraguay's mismanagement of natural resources, including rampant deforestation, and a high population growth rate are obstacles to creating employment and providing basic services. The rational use of natural resources and increasing use of voluntary family planning help advance U.S. regional and global objectives of protecting the environment and stabilizing population growth.
The Development Challenge.
Paraguay has had a long history of war with its neighbors followed by subsequent extensive periods of isolation and authoritarian rule. Following the 1989 coup, which toppled its corrupt dictatorship, Paraguay began to embrace democracy and democratic principles for the first time.
Over the past seven years, the country has made progress in democratic development. Important building blocks are now in place to support continuing efforts towards strengthening Paraguay's democratic institutions. For example, democratic guarantees for human rights and basic freedoms have been installed, closed newspapers and radio stations were reopened, and the press is now able to provide independent and responsive coverage. In 1992, a new constitution was ratified which was a major step in institutionalizing Paraguay's democracy from a strong presidential model toward a balance of power between branches of government. Free and fair elections also have been held. The 1991 municipal elections enabled voters to elect their mayors for the first time. In presidential and congressional elections two years later, Paraguay elected its first civilian president in half a century. In this election, opposition parties also won a combined majority in congress. To prevent potential political deadlock, the opposition-controlled congress developed a "governability pact" with the executive branch. Major effort is now being placed on the challenge of trying to modernize the state, to reduce corruption, and to tackle serious socioeconomic and environmental problems.
While progress has been made in Paraguay's democratic transition, there are still many obstacles and constraints. These include weak institutions, lack of qualified human resources, and pervasive corruption. Very little regional or international exchange was permitted during the previous dictatorship. The renovated judiciary, legislature, executive branch, local governments, the media, and local nongovernmental organizations (NGOs) all have important new roles but lack the experience or capacity to carry them out.
Paraguay's per capita income of $1,380 masks an extreme disparity of wealth. The top 10% of the population receive 42% of national income, while the poorest 50% receive less than 16%. The country's population growth rate is one of the highest in the region, and less than 32% of eligible couples have access to family planning services. The maternal mortality rate is the second highest in the hemisphere. The previous government's lack of investment in health and education and opposition to family planning left Paraguay far behind other countries in the region in providing basic quality services to its population. The country is now in the process of undertaking major reforms in health, education and family planning services.
Approximately 98% of exports are agro-based, and decades of over-dependence on cotton and livestock have taken their toll on the environment. Clearing of forest for agriculture and livestock is a major threat to the survival of these ecosystems, and Paraguay has lost over 70% of its forest cover in the last 50 years. Conservation of Paraguay's unique natural resources is of regional and global importance and is critical to the country's longterm sustainable development.
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 an early candidate for rapid graduation from development assistance. substantial time and effort are required to implement assistance to the country's democratic institutions. On the other hand, it is expected that USAID's population and environmental strategic objectives will be achieved by FY 2000.
Other Donors.
The United States is one of the largest bilateral donors after Japan, Germany, the European Economic Community and Spain. Other major contributors include the Inter-American Development Bank, the World Bank and the United Nations Development Program.
FY 1997 Program.
USAID's strategy is to assist Paraguay increase its capacity for sustainable development in a participatory democracy. The program has three strategic objectives which correspond to the Agency goals of building democracy, protecting the environment and stabilizing population growth. To build democracy is the cornerstone of the USAID program and is Paraguay's highest priority. This responds directly to the U.S. interests of preserving regional stability and promoting U.S. economic interests. A stable government which protects the rights of its citizens enhances foreign and U.S. investment. Through past USAID assistance, the judiciary, congress, local governments and the NGO community have instituted important changes, but they still remain undeveloped and ill-equipped to take on their new responsibilities.
USAID support for building democracy focuses on: creation of an independent and effective judiciary and legislature, developing a competent electoral system, administrative rationalization at the central and local government levels to control corruption, increased citizen participation, and encouraging a community approach to confronting urban environmental problems.
Reproductive health and family planning services are also priorities and address U.S. worldwide interests of stabilizing population growth. Support for family planning improves maternal health and will reduce population pressures on the country's limited resources which will enhance the creation of employment and economic opportunities for its citizens. After years of neglect, Paraguay recently endorsed a strong reproductive health and family planning program and has requested USAID support. USAID assistance will provide family planning services to the two-thirds of the population which currently do not have access to these services.
Focused USAID support for sustainable management of Paraguay's natural resources will assist in the conservation of the country's fragile ecosystems. It also will contribute to a better rationalization of the country's largest resource for export and employment.
Agency Goal: Building Democracy
Paraguay has made an impressive beginning in reforming the government and in adopting democratic principles since its transition to democracy in 1989. Despite important accomplishments, democratic institutions are still weak, human resources are lacking, and the continuance of civilian rule is not yet completely assured.
The legislature has only been democratically functioning since 1989 and moderate progress in modernization has taken place. However both houses still function on an ad hoc basis, and desperately need technical assistance to organize themselves to function as a legislative body. USAID support in 1995 included training legislators, mediarepresentatives, and congressional committee staff. Training has ranged from legislative bill drafting to techniques of research and investigation. Activities also included contracting advisors for key legislative committees and expert team visits from the Center for Studies and Legislative Assistance (CEAL) in Chile.
Because free and open elections are crucial to consolidate the democratic process, USAID support for election assistance is an important component of the democracy program. During the past year an assessment was carried out of the overall needs of the newly established Election Tribunal, and a donors conference was organized to solicit support for the upcoming municipal elections. The Election Tribunal needs support for organizing the municipal elections in 1996 and the general elections planned for 1998. The tribunal also needs long term assistance in human resource development, equipment and institutional support. Civic education and voter education through NGOs also are needed. This will require major support over the next 3-5 years, but especially in FY 1997 as preparations are made for general elections in early 1998.
Strengthened local governments enhance accountability and increase citizen participation in democratic decision-
making. USAID assistance provides support to improve local governments in their administration of resources and programs. Accomplishments include the establishment of local and regional health commissions which will begin to manage an increased portion of local health services in FY 1997. In 1995, the Municipality of Asuncion held its first-
ever public hearings on its budget. This was the first such public budget hearing at any government level in Paraguay.
Paraguay is dependant on its natural resource base, particularly agricultural resources, for virtually all of its export income. This sector produces more that one-quarter of the gross domestic product (GDP), employs half the work force, and generates 90% of registered exports. Unfortunately, the overall growth and development already achieved cannot be maintained over the long term because of Paraguay's failure to protect its resource base. Intensive, unsustainable exploitation of land, water and wildlife continues. Clearing of forest for agriculture and livestock is the major threat to the survival of these characteristic ecosystems.
Paraguay's biodiversity is at great risk. Only 4.4% of the country is under some form of environmental protection, and many habitats of ecological significance are not represented. USAID provides support to increase the local capacity in managing the country's natural resources and protecting the environment. USAID sponsored conferences and seminars over the past year to analyze the current state of Paraguay's natural resources and began development of a comprehensive environmental action plan. Assistance also has been provided to establish a national private reserve program which is now operational.
USAID also promotes environmental awareness and education, community action plans, and environmental legislation through grants to local NGOs, which conduct seminars, workshops and education campaigns. USAID also targets local, regional governments and citizen groups to assist in determining relevant environmental problems. Based on these evaluations, additional activities are being designed to address these problems.
During the previous dictatorship, the health sector was neglected and politicized. Maternal and child health services deteriorated, particularly family planning. Paraguay has a 3.2% population growth rate. Less than one-third of eligible women of reproductive age have access to family planning services. USAID support increases the use of voluntary family planning through expanded access to services, strengthened institutional capacity to provide services, and improved capacity for sustainability of services.
A national reproductive health survey was completed in 1995. Data are now being analyzed and will be used to measure achievements. USAID also provided technical assistance to the public sector in contraceptive logistics management and support to the private sector to develop a plan to expand and diversify family planning services. Family planning administrators were trained in other countries, and plans are underway to implement an integrated young adult and adolescent program for both public and private sectors.
Nevertheless, if there are funding constraints in FY 1997, USAID will need to redefine its role and establish greater coordination within the local donor community for their increased support.
| Encouraging Economic Growth |
Stabilizing Population Growth and Protecting Human Health |
Protecting the Environment |
Building Democracy |
Providing Humanitarian Assistance |
Total |
|
|
USAID Strategic Objectives |
||||||
|
1. Strengthened Democratic Institutions Dev. Assistance |
$1,500,000 |
$1,500,000 |
||||
|
2. Improved Management of Natural Resources Dev. Assistance |
$1,000,000 |
$1,000,000 |
||||
|
3. Increased Use of Voluntary Family Planning Services Dev. Assistance |
$1,100,000 |
$1,100,000 |
||||
|
Total Dev. Assistance |
$1,100,000 |
$1,000,000 |
$2,800,000 |
$3,600,000 |
USAID Representative: Barbara C. Kennedy
PROGRAM: PARAGUAY
TITLE AND NUMBER: Strengthened democratic institutions, systems and practices, 526-SO01
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCES: FY 1997: $ 1,500,000 DA
INITIAL OBLIGATION: FY 1995 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 and local government with decentralized services based on wide citizen participation.
Background: Since Paraguay's transition to democracy, the country has enjoyed a free press and active media. Human rights have improved. In addition to national elections, governors and mayor have been elected for the first time in history. U.S. assistance in strengthening and developing stronger governmental institutions, and citizen participation in democratic decision-
making is crucial at this early stage of democratic development.
USAID Role and Achievements to Date: USAID is moving from small-scale "pilot" activities to a longer-range program which features institutional strengthening and human resource development. Technical assistance has been provided to the newly established Election Tribunal to assist in carrying out an assessment of its needs. A donor roundtable also was organized to solicit support for the 1996 municipal elections. The Paraguayan Congress has expanded its budget oversight role, and with USAID support, is organizing itself to take on a complicated agenda of political, economic and social issues. At the local government level, through USAID sponsored seminars, the nation's first elected governors and mayors are lobbying for a change in the law which would give them increased authority and resources for local governance. Citizen groups are beginning to play a greater role in defining priorities. Through USAID support, the Municipality of Asuncion carried out its first-ever public hearing on their municipal budget.
Description: USAID will focus on: (a) election assistance to support the Election Tribunal in conducting free and fair municipal elections in 1996 and to initiate preparations for national elections in 1998; (b) judicial reform through support for establishment of a judicial training center, introduction of an alternate dispute resolution program and a civic education campaign; (c) support for local governments to better plan and manage their programs which encourage joint local government and a community approach to confronting urban environmental problems; (d) support for a pilot decentralized program for health services in selected areas; and (e) continued legislative modernization through training and technical assistance. Funding will be channeled through both local and U.S.-based NGOs 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 Inter-American Development Bank (IDB). Using USAID-initiated studies, the IDB is designing complementary projects to help modernize the judicial and legislative branches. The European Economic Community also is providing support to the legislative branch and the Organization of American States is working collaboratively with USAID in the area of election assistance.
Beneficiaries: Most segments of the population 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 for 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 U.S. private non-profit companies such as Florida International University, University Research Corporation, and the International Foundation for Electoral Systems. Local NGOs and grantees include Information Resources Center for Development, the Supreme Court, and the Office of the Attorney General.
Major Results Indicators:
Citizen confidence in legislative process 30% (1995) 70% (2000)
PROGRAM: PARAGUAY
TITLE AND NUMBER: Increased Protection of Paraguay's Natural Ecosystems, 526-SO02
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1997: $1,000,000 DA
INITIAL OBLIGATION: FY 1995 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.
Background: Paraguay's biodiversity is at great risk and the country has the highest deforestation rate in the world, relative to its size. Over 70% of its forests have been lost in less than 50 years. Paraguay is third in the world, after Brazil and China, in absolute number of hectares of land cleared per year. This trend is having a devastating affect on the economy which depends on natural resources, primarily soil and wood, for export income. Only 4.4% of the country is under some form of environmental protection. The number of critically endangered species is 25 and continues to increase. Expansion of agriculture continues with little regard for environmentally sound practices. Unless something is done, this will have drastic long-term effects on the economy which relies on the natural resource sector for half the country's employment. Increased poverty because of irrational land use has the potential to destabilize this nascent democracy.
USAID Role and Achievements to Date: Under the 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 the last large continuous tracts of Interior Atlantic Rainforest in the tri-country region of Paraguay, Brazil, and Argentina. Through the current private reserve program over 198,000 acres have been established, which incorporate conservation and sustainable use of resources.
Description: All activities are carried out in close collaboration with the Government of Paraguay's (GOP) Directorship of National Parks and Wildlife (DNPW). Activities includes the delineation of new parks, training park guards and other park and 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 for an effective conservation compatible with sustainable income-generating activities. The program has targeted an additional 370,000 acres to be put under protection over the next several years. 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.
Host Country and Other Donors: The GOP has steadily increased funding for DNPW over the past few years and will continue to expand as the issue of environmental degradation continues to command attention nationally and internationally. Other donors include Germany, and to a lesser degree Japan. Importantly, the World Bank and Inter-American Development Bank 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.
Beneficiaries: Beneficiaries include indigenous groups living in and close to national parks and reserves, and small farmers and rural inhabitants within buffer zones of parks, which comprise 49% of Paraguay's population.
Principal Contractors, Grantees, or Agencies: USAID implements activities through U.S.-based international firms, the Center for International Environmental Law and Hagler-Bailly, Inc. Local NGOs include the Moises Bertoni Foundation and Alter Vida.
Major Results Indicators: Baseline Target
Number and area of parks protected 13 (1995) 20 (2000)
Reserves under private sustainable management 198,000 acres 568,000 acres
(1995) (2000)
PROGRAM: PARAGUAY
TITLE AND NUMBER: Increased Use of Voluntary Family Planning Services, 526-SO03
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1997: $1,100,000 DA
INITIAL OBLIGATION: FY 1995 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.
Background: At 3.2%, Paraguay has one of the highest population growth rates in the hemisphere. This population growth rate coupled with an extremely high maternal mortality rate (386 per 100,000 births), points to the need for better reproductive health services, including the provision of family planning. Both the public and private sectors provide family planning on a small scale compared to actual need. One reason for this is the pro-natalist policies of the previous government. Since the country's transition to democracy, the climate for family planning has improved. The new constitution explicitly provides for the right of couples to receive family planning services. A national population policy is currently being discussed within the congress.
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 and; to date, a national reproductive health survey has been completed. USAID focuses primarily on the private sector. A study to assist the private sector organize cost-
effective services is being carried out.
Description: USAID's support for increasing use of voluntary family planning services includes expansion of community-based distribution programs to under-served rural areas, reproductive health services for adolescents, provision of contraceptive supplies, and programs targeted to special groups such as male clinics 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.
Host Country and Other Donors: The GOP National Reproductive Health Council includes members from the public and private sectors and the 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 Inter-American Development Bank are developing a health sector loan to 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: direct beneficiaries are women of child-bearing age including approximately 1.15 million couples. Young adults and men will also be beneficiaries for information and services. USAID-supported programs are targeted toward at-risk couples not currently using family planning, which includes approximately 150,000 couples.
Principal Contractors, Grantees, or Agencies: USAID implements this program through a number of U.S.-based firms, such as the Association for Voluntary Surgical Contraception, the Centers for Disease Control, Family Health International, Management Sciences for Health, and an international organization, the International Planned Parenthood Federation. These organizations are coordinated through the USAID Global Bureau.
Major Results Indicators:
Baseline Target
Couple-years of protection (CYP)
Centro de Poblacion 50,000 CEPEP (1994) 75,000 CEPEP (2000)
Ministry of Health 70,000 MOH (1994) 100,000 MOH (2000)
Contraceptive Prevalence 35% (1990) 55% (2000)